The world’s largest gambling market is still struggling as the effects of the COVID -19 pandemic continue to wreak havoc on Macau’s casinos.
In June, Macau casinos won $ 89.7 million from gamblers, according to figures released by gaming regulators in the region. The figures represent a 97 percent year-on-year decline after the operator won just $ 3 billion from gamblers in June 2019.
The decline was also the former Portuguese colony’s ninth straight year-over-year decline in gross gaming revenue, with the June 97 percent drop being the largest in the history of the gambling industry in Macau. That beat April’s 97 percent drop by a few decimal points.
It’s also a big drop from the May figure, which was down 93 percent year-on-year, but still contributed $ 221 million in revenue.
Towards the end of 2019, the market began to decline due to the political environment around Macau, which included the threat of a trade war with the United States and increasing protests in Hong Kong.
The emergence of the COVID-19 pandemic is exacerbating those problems and causing an even sharper pullback in the market. With the government now in the midst of tackling the pandemic, more restrictions have been put in place, including stricter travel restrictions, including the mandatory 14-day quarantine of visitors who are not from mainland China, Hong Kong or Taiwan. The government has also made it more difficult to obtain visas in recent months.
According to a Bloomberg report, analysts don’t expect the market to bounce back any time soon. Analysts expect at least an 80 percent drop in the GGR for July and anywhere between 38 and 65 percent for the whole year.
The same analyst believes that whenever travel restrictions are lifted, the market will start to recover. However, the recent outbreak of coronavirus in Beijing does not bode well for it to happen soon.