(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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