Pedestrians walk past the Galaxy Macau casino resort
Local casinos are expected to close in March with a year-on-year revenue drop of at least 35 percent, with one gaming operator even expecting a fall of over 40 percent.
However, according to gaming industry sources, March revenue will be superior to the one registered in the previous month – unlike back in 2014, when despite being the third best month ever for gaming, March didn’t beat the record month of February. Our sources predict a 20 percent drop in gaming revenue in 2015.
If a 40 percent year-on-year March gaming revenue drop is confirmed, that would mean casinos would close the month with MOP21.2 billion in revenue.
“We are in a new phase of adjustment, readapting to a reality where the VIP gamblers are not coming to Macau and are looking for new places [to gamble],” a SJM source told Lusa news agency. “Macau is a preferred place for the Chinese gamblers. The money transferences must be controlled, but we can’t scare the gamblers as if all of them were doing something illegal. We must bet in a sustainable market and growth, which should also benefit the local society.”
Macau’s economy shrank 17.2 percent in the fourth quarter of 2014, after casino revenues slumped and visitors cut spending. The gross domestic product for the full year dropped 0.4 percent, following a 10.2 percent decline in the second half of the year.
The region is heavily dependent on gaming and tourism as the casinos pay a 35% direct tax and another 4% or so in indirect taxes to the local authorities. MDT/Lusa
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