Macau’s Statistics and Census Service has revealed the city’s gaming sector gross surplus dropped to its lowest tally since 2005 last year.
Macau.- Authorities in Macau have revealed that the gaming sector’s 2020 gross surplus dropped 87.9 per cent compared to pre-pandemic levels to MOP22.13bn (US$2.76 bn).
The government also reported that 2020 “gross value added”, a standard of the sector’s contribution to the overall economy, was down 79.6 per cent when compared to the previous year, to MOP41.85 bn, as the city’s gaming and hospitality sectors were deeply affected by the Covid-19 pandemic and associated travel restrictions.
The gaming sector’s gross surplus ratio, which reflects its capability to convert receipts into gross surplus, was also down by 26.1 percentage points when compared to the previous year, to 36.1 per cent – a record low.
Total receipts from the nine companies involved in gaming activities, including non-casino firms engaged with lottery and sports wagering, amounted to MOP63.94bn in 2020, down 78.4 per cent year-on-year.
Receipts from gaming and related services decreased by 79.1 per cent to MOP61.29bn. The figure covers receipts from bets placed by customers in gaming activities, among other items.
Total expenditure from Macau’s gaming sector in 2020 reached MOP46.42bn, down 60.6 per cent from pre-pandemic levels.
2021 GGR will be down 65% from pre-covid levels
Fitch Ratings Inc has predicted that Macau’s GGR will be 65 per cent below that of 2019, when the city registered MOP292.4bn (US$36.5bn) in GGR.
According to analysts, this year Macau will reach MOP102.4bn. For the first seven months of 2021, the city reported a total of MOP61.4bn (US$7.7bn) in GGR.
In April, analysts at Fitch Ratings Inc. said Macau GGR could reach half of pre-Covid-19 levels. However, the city was affected by local cases of Covid-19 and hundreds of cancelled flights. Despite this, the government of Macau predicted GGR could reach MOP130bn for 2021, a decline of 44.5 per cent from 2019 levels.