Macau Gaming Revenue Falls 2.6 Percent To $44.1BGaming Win Falls By Roughly $1 Billion Year-Over-Year |
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Macau ended the year 2014 with seven straight months of year-over-year gaming revenue decline, bringing 2014’s total win to $44.1 billion, a 2.6-percent drop compared to 2013’s record shattering year.
Macau gaming officials released the official numbers on Friday.
As a result of the recent downturn, casino operators there have seen $75 billion in their market value wiped out, according to Bloomberg.
The Chinese government has been cracking down on what it perceives as corruption in Macau, as it sees a heavy reliance on high-rollers as an unstable long-term plan for the city. Two-thirds of Macau’s gaming revenue comes from VIP gamblers, who typically deal with junket operators to get the cash they need to wager huge sums at the table games.
As a result, nearly 220 junkets are licensed in Macau.
Macau is the only place in China where casino gambling is legal.
According to a report from CNN Money, Macau’s average minimum is $270, more than 13 times that of Las Vegas. The report added that “it’s nearly impossible to find a table with a minimum bet of less than $65.” Baccarat also drives 91 percent of Macau gambling dollars.
High-raking Chinese government officials want the economy there to be more diversified.
The official numbers for Nevada and Las Vegas are not in yet, but last year the Silver State captured $11.14 billion in gaming revenue. It probably won’t be too much different in either direction for 2014, so Macau is still about four times as large as the entire state of Nevada.
Thirty five casinos are open in Macau, and more are on their way actually.
More than 250 brick-and-mortar casinos exist in Nevada.
In September, Deutsche Bank revised its estimates on Macau, saying that gaming revenue there would grow by just one percent in 2014. The bank had predicted 10-percent growth. Macau just kept on shrinking faster than most anticipated.
Even earlier this year The Wall Street Journal reported that at least one analyst predicted that Macau gambling revenue would grow by 20 percent in 2014, while another said that in 2017 it would hit $77 billion in market size.
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