The slowdown in the Chinese economy is taking a toll on Macau’s gaming and gambling revenues. The global gambling hub and the only Chinese territory to allow legal gambling has reported its lowest revenue growth in the last three years for the month of April.
According to the figures released by the Gaming Inspection and Coordination Bureau, the year-on-year gross gaming revenue for the month of April fell by 8.3 percent to 23.5bn patacas ($2.9bn). It is by far the most significant revenue drop since June 2016.
The slipping revenue growth wasn’t unexpected. Earlier the analysts from Reuters had predicted that Macau’s gambling revenues would slip by anything in between 3 and 12 percent.
The gross gaming revenue in March, this year was 25.8 billion patacas which slipped to 23.5 billion in April.
Analysts at Bernstein had earlier pointed out that the gaming revenues in the second quarter may jump by 2 to 4 percent. However, with April’s revenues plummeting, it is unlikely that Macau’s gaming industry would recover and post positive growth.
In his statement to the Financial Times, Lawrence Ho, a popular name in Macau’s gambling industry, said: “One area of potential high-end GGR stabilization and renewed strength may come from a recovering credit cycle in China which may support VIP recovery in the second half of 2019.”
The dip in revenues is mostly attributed to the struggling Chinese economy, and that has led to lesser VIP footfalls in Macau casinos.