Revenue slump persists as city deals with worsening outbreak

Macau’s gaming revenues have fallen to a new low – since September 2020 – as the city faces its largest outbreak yet, after recording low numbers of Covid-19 cases for two years.

Data from the Gaming Inspection and Coordination Bureau shows that June’s gross gaming revenue (GGR) stood at MOP2.48 billion, which is a plunge of 25.9% compared to May’s MOP3.34 billion.

This figure is down 62.1% compared to June 2021, when it recorded a GGR of MOP6.55. 

The slump comes alongside a trend in loss of gaming revenue in the city, which was initially due to the outbreaks in the neighboring region.

However, the narrative is different this time: the neighboring region has put in place strict measures that discourage travelers from the mainland from entering Macau, as the city has already recorded nearly 800 cases in two weeks. These are cases that officials have been trying hard to control by semi-locking down the city.

The government is calling this an “unprecedented” Covid-19 outbreak; it has led to suspended operations of most government offices as well as temporary closures of shops and schools.

Due to the outbreak, the neighboring region has been requiring arrivals from Macau to undergo a 14-day quarantine at their own expense. However, the length of quarantine was shortened to seven days last week as China announced an easing of its quarantine requirement for people arriving from abroad.

Meanwhile, the downturn is expected to continue this month, due to the low number of tourist arrivals.

Two weeks ago, Macau’s casino stocks plunged after the government announced a new wave of Covid-19 cases, dealing a fresh blow to the crippled gaming sector.

The outbreak, which initially involved 12 cases, led to another round of mass city-wide testing.

With the current figure, three rounds of mass testing will happen this week.

This comes after eight months of the city recording zero Covid-19 cases in the local community.

Credit Suisse analysts expect the government to order a temporary suspension of casinos if the outbreak worsens.