Analysts Predict Macau Casino Revenues will fall significantly in April - Mangalorean.com
Tuesday 12th May 2020
The coronavirus pandemic has sent shockwaves throughout the world and brought many industries to their knees. Tourism and transportation are two of the biggest industries hit by these huge problems, but land-based gambling is also in hot waters. All over the world, casinos have shut their doors and the impact is particularly important on the biggest gambling hubs. Las Vegas and Macau casinos were directly hit and are expected to suffer significant losses in the weeks and months to come.
The Asian gambling city has been for many years a strong competitor to Las Vegas and enjoyed steady growth. In the wake of the lockdown and the sharp decrease in visitors, Macau casinos prepare for the worst month in history. Many people are looking for slots on your mobile but it is not legal to gamble online in this territory unlike western counterparts like the UK. The analysts are quite pessimistic about the short-term future and some estimate that the casino revenue might plunge next to zero in April. The numbers are indeed frightening, but they are based on solid facts, as travel restrictions have crippled the casino industry.
Macau used to be a destination for gamblers from Asia, as well as other continents in addition to Chinese. Today, only the latter can travel here and gamble, but not even the Chinese players are flocking to these casinos as they used to. Officially, the number of new cases and deaths are low, but there is still a lot of concern regarding the coronavirus. People have learned to avoid crowded spaces and the prospect of spending a lot of time in the proximity of fellow gamblers no longer looks appealing to most people.
Just like in Las Vegas, everything in Macau is centred on the gambling industry in general and the casinos in particular. The money, however, doesn't come exclusively from gambling, as casino owners have built luxurious resorts in this city. Now that the coronavirus pandemic is causing havoc worldwide, Las Vegas Sands, Melco Resorts, Wynn Resorts and MGM Resorts are dealing with the aftermath. They were compelled to close down in February, but things didn't change for the better after reopening.
The resorts usually attract millions of people every year, but in 2020, they were mostly empty. As the gross gaming revenue is plummeting every month, April is set to be the worst ever and for good reason. That's because of the restrictions imposed by China to foreign tourists, which means that casinos now have to rely exclusively on local players. Even though these represent a healthy percentage of the players, even Chinese punters are reluctant to visit these casinos.
Some fear that the revenues will fall to near zero, but even the optimistic forecasts don't paint a great picture about what's to come. The best-case scenario is for Macau casinos to report 10% GTR compared to the numbers posted last year. The longer the coronavirus pandemic lasts, the greater the impact will be on land-based gambling operators and some could even go bankrupt.