Due to the cooling Chinese economy and the country’s conflict with the United States the investors in the gaming market Macau have been cautioned. The reason they are cautioned is the diminishing of gaming revenue by single digits.
A report was given on Monday from GGRAsia that this contraction in the Macau casinos is the state expected by Morningstar Asia Limited investment services firm. They foresaw the accumulated gross gaming revenues from the markets thirty casinos. They said that the revenues will get larger returns in 2021. The examination given by Morningstar on Friday told a different story.
They predict that the gaming revenues of Macau will become low by single digits in 2019 and the low single digits will grow in 2020. In the 2021 mid-single digits will go through the same phase until the Chinese economy becomes normal again. There will be no excessive case of a downturn like which happened in 2015 because there is no evidence of any gaming bubble this time as seen in that year.
The Chinese economy’s annual figure hit its bottom in twenty-eight years at the figure of 6.6%. The gaming revenues from the VIP customers have also decreased in the ‘high single digits’. On the other hand, besides this downturn, the analysis is expecting a good future for the country. The six of the incumbent operators of the casino are going to have the license extended. There is an optimistic report waiting for the Macau casinos in the coming years.