Macau Records 24th Consecutive Month Of Falling Gaming Revenues
The world’s largest gaming hub Macau has just reported its 24th consecutive monthly decline in gambling revenues. The former Portuguese colony is the only place in China where gambling is legal and the gaming industry accounts for over 80 percent of government revenues in Macau.
The last two years have seen gambling revenues shrink by half as a result of a prolonged Chinese government crackdown on what was once the undisputed playground for corrupt official and VIP payers.
Gambling revenues for the month of May fell 9.6 percent to $2.3 billion which was worse than the analysts’ expectations of a 6-7 percent decline. While the declining gaming revenues are drastic, many believe that the market is stabilizing and that Macau has a whole is set to become more of a holiday resort destination and not solely rely on gambling revenue as it has until now.
The Chinese Government is looking to transform Macau into a Las Vegas destination that includes a heavy focus on entertainment and tourism. They have been pressuring the major casino groups towards this direction and show no signs of backing down. There are already three new mega resorts that are planned to open including a smaller version of the Eiffel tower. With the diversification away from gambling, the authorities expect Macau to become a holiday leisure destination for the Chinese who until now mainly saw Macau for its glitzy casinos.