Macau has been battling with declining gaming revenue for past one year. The decline in the revenue has been attributed to the Sino-US trade war and the slowdown in the Chinese economy.
Earlier in May, the figures released by the Gaming Inspection and Coordination Bureau revealed that the year-on-year gross gaming revenue fell by 8.3 percent to 23.5bn patacas ($2.9bn). It was by far the most significant revenue drop since June 2016.
But then, after April, the gaming revenue in Macau recovered for the two consecutive months. Casino revenue in Macau went up by 5.9 percent year-on-year in June despite the slowdown in the Chinese economy.
However, according to analytics firm Sanford C. Bernstein, gambling revenue growth at Macau casinos may decline in July due to a lower VIP turnout.
“VIP volume is estimated to be down mid-single digits with the hold rate towards the lower end of the normalized range,” the firm said. “Mass GGR is estimated to be up mid-single digits.”
The analytics firm has lowered the GGR growth rate for July and has predicted that the growth rate would be around two percent which was earlier predicted to be six to eight percent.
“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 2H,” it said.
Earlier last week, the Financial Intelligence Office revealed that suspicious casino transactions in Macau are down 14.4 percent in the first six months of 2019.