Macau Experiences Largest Gaming Revenue Decline In Three YearsA 8.3 Percent Year-Over-Year Drop From Macau's April Numbers Are The Worst Since June 2016 |
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Macau casinos won the equivalent of $2.92 billion from gamblers in April, according to numbers from Macau’s Gaming Inspection and Coordination Bureau.
Despite the large number, it is an 8.3 percent drop year-over-year and the biggest decline since June 2016. It’s the second straight month of decline in year-over-year revenue for the region after March’s $3.23 billion-win was a 0.4 percent drop.
A year ago, Macau was experiencing double-digit growth in the casino industry, but Bloomberg is reporting that the main reason for the stymied growth is the slowing economy in China. Since mainland China is currently responsible for two-thirds of the visitors, it makes sense revenue would drop.
Action from high rollers hasn’t been what it used to be either, but analysts are reporting that the decline in action from those players willing to bet more than most isn’t as bad as it was originally anticipated. An increase in business from casual gamblers have helped soften the blow from the decrease of high roller action.
Despite the downtrend, stock prices of Macau casino giants have continued to climb and some are calling this the bottom of the market. After a 6.4 percent increase in GDP in the first quarter, analysts believe the turnaround in the casino industry in coming soon.
“Improvements in the economic environment in China, if sustainable, is positive,” Sanford C. Bernstein analyst Vitaly Umansky said in a report.
Umansky added that he believes May’s revenue could rise between two and four percent.
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