Macau Registers 97 Percent Drop in Revenue during April 2020

Macau Registers 97 Percent Drop in Revenue during April 2020

Macau has been registering impressive gains in revenue for the last few years but coronavirus pandemic has brought a screeching halt to its casino and gambling revenues. While Chinese government was developing Macau as a destination for casino players in China and other nearby regions, the setback will impact yearly revenue growth of Macau. As per reports, gross gaming revenue (GGR) for casinos in Macau dropped by 96.8 percent in April 2020 as compared to the same period last year. Compared to March 2020 revenue, GGR was down by nearly 86 percent in April.

Gaming and betting market experts are confident that revenue will pick up soon as China has lifted lockdowns. Many nearby regions have also eased or completely lifted lockdowns. With holiday season approaching, Macau casinos will be coming up with special offers to boost revenue. Additionally, hotel and tourism service operators in Macau will be offering discounts in order to attract tourists. It is yet to be seen how many people would be brave enough to book vacations for Macau. In Europe and United States, players are shifting to online platforms as lockdowns have resulted in revenue and footfall loss for physical casinos.

Compared to the same period last year, Macau casinos have registered 68.7 percent drop in revenue during 2020. Credit Suisse equity analyst Kenneth Fong said the Individual Visit Scheme could help Macau recover some of the losses caused by coronavirus pandemic. Fong added, “We estimate the pent-up demand will help the VIP business to recover to 50% once borders reopen and likely reach 100% of the pre-virus level in summer time.” He added that the revenue can reach pre-COVID levels only by the end of the year.

We are surely living in uncertain times and after Coronavirus is under control, we could see the ‘new normal’ and markets would adjust accordingly.

MGM Resorts International Chief Bill Hornbuckle said that MGM China will recover as players will start returning to floors. COVID-19 restrictions have been lifted in China and MGM Resorts International expects the levels to reach last year’s revenue by summer.