The gambling industry is increasing all over the world. Macau is one of the capitals of the gambling industry and has one of the highest revenues in the country. Though the industry is swiftly changing and is not easily predictable. Even with Macau being one of the biggest contributors to the industry it is hard to constantly maintain the same rhythm and the growth in the revenue.
The Big Fall
There has been a certain forecast made regarding the revenue shift for Macau casinos. The statistics show that the gaming revenue fell in the month of November for 8.5%. Despite the drastic fall the analysts that have been working on the final stats, have forecasted even higher numbers, though the reality seems to be slightly better than expected.
There have been rates and the results released by Macau’s Gaming Inspector and Coordination Bureau (DICJ). The release showed that the special administrative region’s casino operators generated gaming revenue of MOP25b (US$2.84b) in November. This indicator is not only low for the current years overall statistics, but while comparing to the ones exactly at the same moment last year it has declined for 8.5%. While as for this year compared to the previous October’s month for 13.5%.
There is a match between the decalin of the November month and the seventh month of this year on Year-on-Year decline bases. This index of .5% comes as the second one after the 8.6% fall the Macau market has suffered un August of 2019. This year has been quite tough for Macau as it seems as the November revenue is the second-lowest revenue after August and above only September’s MOP 22.1 Billion.
The Hot Shot
Macau’s present misfortunes have to a great extent been laid at the entryways of the gambling clubs’ VIP rooms, which have battled as hotshots give Macau a wide billet. The VIP edginess has been credited to various variables, including fixed liquidity for some assembling executives as the US-China trade war delays and Chinese businessmen as well as authorities reestablished enthusiasm and interest for the further activities of certain junket administrators and operators.
The situation that is the currency in Macau could have been a lot more terrible and warning, unless there have been big shots made during the first half of the year. The strong growth of the industry’s segment was declared in the mass gaming market. The VIP Baccarat revenue was overtaken in the first quarter of 2019 and has been going strong and sustainable ever since.
There have been already two years that Macau has ever-growing revenue very sustainably. This seems to be coming to the end. For the year to date, gaming revenue is now down 2.4% to MOP 269.7 million, which is $33.4 billion. So for now, it is almost undoubtfully certain that the two-year streak will come to the end. Macau’s officials posted annual rises in both 2017 and 2018, which was a drastic rise after the three years of significant decline that started in 2014.
There is a probability that Macau’s gaming revenue decline will be extended within the following month as well. This is supposed to happen due to the presidents, Xi Jinping’s, scheduled visit to Macau, which is scheduled for mid-month. The visit is due to the celebration purpose of the 20th anniversary of Macau’s handover from Portugal. There are some temporary restrictions, ahead of the president’s visit to the city. The restrictions are temporarily imposed on exit visas for Macau bound travelers. The restrictions were implemented on the 22nd of November and will be active until December 20th.
Hopefully, the forecast regarding the decline will be slightly overrated and the city’s revenue will not experience another drastic fall again and the overall picture will be better than predicted.