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Macau Gaming Revenue Misses Estimate Again Over Crackdown Fears

A roulette wheel at the MGS Entertainment Show in Macau, China, on Tuesday, Nov. 14, 2023. Macau’s casinos have largely stayed on a recovery path this year, with the city’s gaming revenue returning to 74% of pre-pandemic levels last month as tourists flocked to the hub during China’s Golden Week holiday. Photographer: Eduardo Leal/Bloomberg (Eduardo Leal/Bloomberg)

(Bloomberg) -- Macau’s gaming revenue growth remained sluggish in July, failing to meet analysts’ expectation in a sign that Beijing’s crackdown on illegal money exchange activities and cross-border gambling has dented sentiment among players.

Gross gaming revenue rose 12% to 18.6 billion patacas ($2.31 billion) for the month, according to data released by the Gaming Inspection and Coordination Bureau on Thursday. That compares with the median analyst estimate of a 14% year-on-year increase, and is 76% of the pre-pandemic level in 2019.

Key Insights

  • July’s slow performance came despite the popular summer holiday travel season. The underperformance could signal rising concerns among gamblers over China’s crackdown on Macau. Since June, Beijing and state-owned media have highlighted a series of arrests involving illegal money exchange and loan sharks, along with cross-border gambling.
    • The casino hub reported 2.55 million visitor arrivals in June, which was about 82% of the pre-pandemic level. The city will release data for July later this month.
  • Visitor arrivals have been slowing in Macau for months, with China’s easing of international travel restrictions and visa regulations encouraging mainland Chinese — Macau’s dominant tourist group — to travel overseas.
  • China’s economic slowdown has also weakened tourist spending, with travelers ditching luxury shopping for budget eating and drinking.

Market Performance

  • The Bloomberg Intelligence index of Macau casino operators fell 10% in July, while the benchmark Hang Seng Index fell 2%.

Read More

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  • Macau Casino Stocks Drop as Las Vegas Sands 2Q Results Miss
  • Macau June Visitor Arrivals Fall 5.2% M/m to 2.55 Million
  • Macau Casino Profit Set to Fall in Second Quarter Amid Crackdown
  • Macau Gaming Income Slows in June as Chinese Tourists Stay Away

©2024 Bloomberg L.P.