Macau’s gaming revenue is expected to drop between 17 and 20 percent in October year-on-year according to data gathered from gaming operators by Lusa news agency.
Data related to gross gaming revenue collected until October 20 shows that gaming rooms are expected to gather between MOP29.200 million and MOP30.200 million. This gross revenue calculation range can reflect drops of 17 to 20 percent or if compared to revenue collected in the same month of 2013 (MOP36.476 million).
Calculations were made using data provided by Galaxy Resorts and Sands China.
A drop in gaming revenue in September saw the fourth straight month of declines.
In July, revenues dropped to 3.7 percent; in July to 3.6 percent and in August to 6.1 percent. September saw an 11.7 decrease, which ha not been recorded since 2009.
If the expected 17 to 20 percent decline is realized, revenues from the first nine months of this year will only represent a 2.5 percent increase when compared with the same period last year.
Local economist Albano Martins said that the consecutive drops in gaming revenue are related to China’s stricter controls on money transfers from mainland China. “This is happening due to greater restrictions on capital transferred from the mainland,” he said.
Mainland citizens are only allowed to transfer RMB20,000 daily, but gamblers are known to have been using scams to circumvent China’s exchange controls for gambling in the territory. This has occurred when they perform illegal transactions using UnionPay card terminals to obtain cash through fake purchases of goods in Macau. They therefore avoid China’s strict currency-export controls.
In May, Macau officials and China’s state-backed payment card network cracked down on these bogus transactions.
Albano Martins claimed that if gaming revenue sees a drop by 10 percent in November and December, Macau casinos will end 2014 with a gaming revenue growth of only 0.45 percent. However, if a drop of 20 percent is confirmed, the revenue for the whole year might decline 1.3 percent when compared to 2013. MDT/Lusa
Casinos take 1/3 of planetary total
Takings at Macau’s casinos represented almost a third of the world’s total and were worth more than USD45 billion last year, exceeding the $6.5 billion taken in by Las Vegas. According to the official figures released by the casino operators, Macau took in $45.2 billion last year, an 18.6% increase on the previous year. Las Vegas remained the second most preferred destination for gamblers, who spent $6.5 billion, slightly more than the $6.08 billion spent in Singapore. Singapore’s position of third place is particularly relevant as it has only two casinos, compared with the dozens that exist in Las Vegas.
No Comments