Macau casino revenue plunges 68% to new 18-month low in April amid tourism drought

May 4, 2022 Macau Earnings & Filings Industry Updates

Macau casino revenue has plunged to an 18-month low amid the ongoing impact of the pandemic on the gaming destination. Revenue for April fell 68% from a year earlier as the world’s biggest gambling hub suffers from a tourist drought related to China’s Covid lockdown measures.

According to official data from the Gaming Inspection and Coordination Bureau, gross gaming revenue dropped to nearly 2.68 billion patacas ($331 million), a figure slightly lower than the median analyst estimate of a 66.5% year-on-year decline, says Bloomberg Quint. The new plunge follows March’s 56% drop in gaming revenue.

Additionally, April’s revenue is 27% down when compared to the previous month, and about 89% down from pre-pandemic levels in 2019. China’s strict Covid restrictions -which are in place in Shanghai, Beijing and other key jurisdictions- are seen as the major factor behind a lack of tourism in Macau, which will likely miss gambling revenue from the upcoming five-day Labor Day break at the start of May, traditionally a peak season for the gaming destination.

Macau’s poor performance comes as China struggles with the worst Covid outbreak since the pandemic first started in Wuhan, in late 2019. Although Macau has actually eased some border control restrictions, now requiring quarantine only for visitors from about 30 Chinese cities -down from 80 in March- this has still failed to reactivate travel to the gaming hub.