Slowdown In Macau’s Casino Gambling Industry Is Just Hype, Or Is It?

Slowdown In Macau’s Casino Gambling Industry Is Just Hype, or Is It?

Macau casinos have been struggling to generate revenues because the slowdown in the Chinese economy and the Sino-US trade war is having a negative impact or the drop in VIP spend Macau casinos take a toll on overall revenue – we have been fed with several reasons as to why Macau casinos are not generating enough revenues.

While some month-over-month figures for the world’s biggest gambling hub could be concerning, it is not that Macau is facing a recession of sorts.

The latest figures released by the Macau Financial Services Bureau (FSB) reveal that the city’s casino gambling industry chipped in an impressive $9.49 billion in tax revenue between January and August 2019. The figures also represent a 1.5 percent year-on-year increase in tax contributions made by Macau casinos.

Surprisingly the surge in tax contribution comes even when the gross gaming revenue (GGR) of Macau has dropped 1.9% across the first eight months to August 31.

Moreover, Macau Casinos contributed to 89.6% of the city’s entire tax revenue picked from all sources.

However, the latest data released by the Statistics and Census Service (DSEC) show that the economy of the Chinese-controlled territory has shrunk by 1.8 percent year-on-year in the second quarter of 2019. The economy declined by a significant 3.2 percent in the first quarter.

The overall decline in Macau’s economy is estimated at 2.5 percent for the first six months of 2019.

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