March casinos revenue down 56% to lowest level in 18 months

Macau’s gaming revenue plunged 55.8% in March to the lowest level in 18 months, as a worsening Covid-19 outbreak in China battered tourism in the city.

Gross gaming revenue was MOP3.67 billion ($455 million), revealed today (Friday) the Gaming Inspection and Coordination Bureau (DICJ), the lowest result since September in 2020.

According to Bloomberg, the results were slightly worse than the median analyst estimate of a 55% year-on-year decline and sent slightly down shares of the big-six casino operators, up to -1.2%.

Mainland China Covid-19 cases “and the tightened border policy remains to be the main dragger of poor GGR,’ said analyst Vitaly Umansky, of brokerage Sanford C. Bernstein Ltd, in a Friday note cited by GGRAsia.

“Many Chinese provinces are still imposing lockdowns and travel restrictions to control Covid outbreaks, and since March 18, travelers crossing the Zhuhai land border must present Covid test certificate [issued] within 24 hours: and not likely to relax soon as Zhuhai is still reporting local cases,” Umansky said.

Last month, Macau authorities imposed a 14-day quarantine for visitors coming from high-risk areas in the mainland, including from major cities in Guangdong causing a significant drop in visitation numbers.

The March 2022 gaming revenue takes calendar-year Macau GGR to MOP17.77 billion, down 24.8% on the MOP23.64 billion achieved in the first three months of 2021.

PC