Macau’s August Casino Revenue Falls By 95%

Casino earnings over in Macau have been falling for years. Things have never been quite as bad as they are right now, though. New financial reports indicate that Macau’s August casino revenue fell by an astounding 95%.

It’s a shocking statistic to see, particularly when taking into account that casinos have been open here for months. Today, we’re going to look at exactly how much revenue the gambling industry here managed to bring in last month. We’ll also look at what analysts predict for the future here.

Let’s get into it!

Macau’s Casinos Are Open, Yet Tourism Rates Remain Low

For many years, Macau was considered the biggest casino market in the world. A huge number of US-based casino companies own and operate major casino-resorts here. The city was one of the most-visited destinations in Asia for years.

Things began to decline over the past few years. The US-China trade war took a major toll on this territory. As the Chinese economy shrunk, fewer nationals here were making the trip and gambling in Macau.

Revenue earnings were down, yet most predicted things would eventually improve. In February, things took a turn for the worse. The global pandemic forced officials in Macau to close down all of the casinos for two weeks.

Macau was very quick to get its casinos operational again when compared to other parts of the world. Unfortunately, that hasn’t led to a spike in tourism. Until recently, intense travel restrictions were set in place that made it almost impossible for the tourism industry to thrive here.

It’s clear this is taking a toll on the casinos in this city. Reports are now surfacing that show how much money the casinos here are losing right now. Things are even bleaker than many analysts initially predicted.

Reports on Macau’s August Casino Revenue Are Now Out

Everyone knew that Macau was struggling. The shutdown of casinos here back in February was unprecedented, yet most felt that things would begin returning to normal within a month or two. That does not appear to be the case.

Revenue reports have just been released for the month of August. Many were surprised to see how dire the situation still is here. Macau’s August casino revenue fell by an incredible 94.5% over the month when compared to August of 2020.

It shows that casinos still have a long way to go. Interestingly, tourism rates are finally beginning to increase here once again. In July, Macau had an average daily visitation rate of 2,387. In August, however, this increased to 9,500.

Billy Ng, an analyst for Bank of America, feels things are finally about to turn around in Macau. He believes September will prove to be a much better month for casino companies here than August was.

“We forecast that Sep GGR will start to pick up but still be down 80% YoY (+232% MoM), with visa to Macau already resumed in GD and to be resumed in rest of mainland from Sep 23,” Ng said.

China is making things easier for travelers to visit Macau. It will still take time for gamblers to feel comfortable visiting this city, though. In the meantime, many companies are pushing Macau’s lawmakers to embrace online gambling.

Will Macau Ever Legalize Online Gambling?

Macau is the biggest gambling destination in Asia. For decades, gamblers based in China have flocked to this city to make their wagers. It’s an interesting situation, as all forms of gambling are completely prohibited in mainland China.

China has begun to crack down more on illegal gambling operations over the years. A few weeks ago, the government began seizing all illegal online gambling operations between China and Macau. As a result, several major gambling sites including PokerStars have decided to cease all operations in the area.

Some feel it’s time for Macau to formally legalize and regulate online casino gambling. Many are drawing parallels to Macau and Las Vegas. Both cities have seen their land-based gambling industries devastated. Las Vegas, however, has been able to earn some much-needed revenue from its online operations.

Online gambling still takes place in this city on a regular basis. It’s done through foreign gambling sites, meaning Macau earns no tax revenue from the industry. Through the regulation of different internet gaming operations, this territory could help keep its massive casino industry alive.

Based on Macau’s August casino revenue figures, it’s clear that something needs to change here. Officials seem determined to get tourism rates back to pre-pandemic levels. We’ll need to wait and see whether or not the city’s leaders decide to change their laws towards online gambling.

Are you surprised to see how much casino revenue has fallen here? Do you think things will ever return to normal here? Let us know in the comments section below!