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.