Gambling revenue in Macau has been slipping, and it went tumbling down last month.
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) – the most significant revenue drop since June 2016.
The slowdown in the Chinese economy was held responsible for decreasing revenues. Macau is the only Chinese territory where gambling is legal. As such the high-rollers from mainland China make significant contributions to the gambling revenue in Macau.
However, with the slowdown, high-roller footfall dropped in Macau casinos which in turn led to decreased revenues.
However, according to the latest coming from analysts and as reported by Bloomberg, the gambling revenue in Macau may hit positive growth figures from May. Market research firm, Sanford C. Bernstein has predicted a two to four percent increase in revenue for the current month.
The predictions are based on the positive figures for the first quarter of the Chinese economy. China’s gross domestic product increased by 6.4 percent, and industrial output shot up by 8.5 percent.
Predicting a 2 to 4 percent increase in Macau’s annual gambling revenue due to improving Chinese economy, Bernstein analyst Vitaly Umansky, said, “Improvements in the economic environment in China, if sustainable, is positive.”
Also, a new bridge connecting linking Zhuhai to Macau and Hong Kong has led to increased tourism in Macau. This could also be a factor impacting the gambling industry and leading to increased and sustained revenues for Macau.