Coronavirus Outbreak Drives Macau Casino Revenue Down 11.3%Casino Operators Won $2.8 Billion In January |
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January was another rough month for the Macau casino industry as gross gaming revenue for the world’s largest gambling market declined 11.3 percent.
According to numbers released by the Gaming Inspection & Coordination Bureau, casinos won $2.8 billion in January, marking the fourth straight month with a year-over-year decline and starting 2020 right where 2019 left off.
Throughout 2019, Macau casinos generated $36.47 billion in revenue, the worst year operators experienced since 2015. Revenue was stifled by threats of a trade war with the United States and escalating protests in Hong Kong. The coronavirus outbreak is the main cause of the decline so far in 2020.
Tourism was down nearly 80 percent in Macau during Lunar New Year, one of the most popular times to visit the former Portuguese colony. According to a report from Bloomberg, Lunar New Year is historically the source of a 10 percent boost to gross gaming revenue.
In response to the outbreak, the Chinese government has restricted anyone who visited Hubei province, where Wuhan City, the epicenter of the outbreak is located, from entering the casinos. A Reuters report said that Chinese authorities began implementing temperature screening machines at the entrance to all casinos.
Robin Yuen, an analyst at Singapore’s UOB Kay Hian believes that the virus will have a longer and more stark impact on the region than SARS did in 2003. Yuen noted the high contagion rates for his commonly held belief.
As of Saturday, there were seven confirmed cases of the virus in Macau. China’s health commission reported Sunday that more people have already died from Coronavirus than SARS. According to the commission’s figures, 361 people have died and 475 have recovered from the virus. SARS killed 349 people.
There are 11 cases of coronavirus in the United States. A Las Vegas man who visited Wuhan City was quarantined and tested for the virus after feeling flu-like symptoms. Tests for the virus were negative.
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