Macau casinos have been battling for almost a year with declining revenue due to the ongoing US-China Trade war and plummeting VIP revenues.
While the casino Industry in Macau did manage to post positive growth figures for the Month of May and June, the gambling revenue fell more than what was predicted in July. In July the revenue from Macau casinos fell 3.5 percent year-on-year.
In June Macau casinos posted a 5.9 percent increase in revenue despite a slowdown in the Chinese economy.
However, for August, after the drop in revenue for July, analysts have revised the gaming revenue projections.
Revising the projections for Macau gambling revenue, analysts at Sanford Bernstein said: “The first four days of August (comprising a full weekend) started off poorly, with low VIP volumes (hold was around normal) and softer-than-anticipated mass. Delivering positive growth in August would need to rely on outsized VIP volumes and higher hold – something not in our forecast.”
Commenting on the recent episode with junket operator Suncity, the note from the analysts read: “The negativity surrounding Suncity continues to pressure junket VIP, as agents withdraw some funds and delay visiting Macau. Overall negativity surrounding the geopolitical and macro situation is having a negative impact on GGR.”
The analysts have lowered the projected GGR for Macau’s casino and gamblign industry for August.