Macau Casinos in Trouble After Worst Monthly Revenue in History

August 25, 2022 Macau Earnings & Filings Industry Updates

The casino industry in Macau is under immense pressure after posting its worst results in history. A pathetic $49 million flowed into the coffers in July marking the lowest figures seen since public records began in 2009.

Zero-Covid No Help
China’s zero-Covid policy is the reason for this downturn, with casinos only allowed to open on July 23 following a few weeks of total shutdown. It is now possible for tourists to return to the city but the heavy restrictions make it an unpalatable journey for the majority leaving only the most ardent gamblers willing to travel.

Last month’s report was 98% down on the July, 2019 figure and the year-to-date income is 20% down.

Galaxy Entertainment, which operates the sprawling Galaxy Macau casino resort, had already lost $108 million during the first two quarters of 2022, similar to the amount of profit from the same period in 2021.
Bleak Future
Even without the restrictive zero-Covid policy, Macau is under the cosh when looking at the future. Crackdowns on lucrative VIP gamblers from Mainland China have forced casinos to pivot towards the mass-market and foreigners.

Macau was once the world’s leading gambling destination bringing in an incredible $45bn in revenue in 2013 with predictions for the future reaching $77bn. Compare that with the approximate figure of $12bn in Nevada. Now, who knows where the bottom is in all of this mess.