Macau casino revenue drops beyond expectations

The gambling hub’s casino revenue dropped 9.6 percent in May in comparison with a 9.5 percent fall in April.

Macau.- Macau’s gaming revenue fell beyond analysts’ estimates in May, experiencing a decline of 9.6 compared to a 9.5 percent drop in April.

According to data released by Macau’s Gaming Inspection and Coordination Bureau, gross gaming revenue dropped 9.6 percent to 18.4 billion patacas (US$2.3 billion), completing a two-year decline. April’s decreased was 9.5 percent but analysts had expected an 8 percent fall in May.

Tighter regulations introduced by Macau’s government and from mainland China are affecting the influx of gamblers, particularly from the VIP sector. Jamie Soo from Daiwa Capital Markets Hong Kong said that May’s decline was “partly due to the tightening policies on the industry, especially the recent ban on phone betting.” In early May, Macau banned phone betting, a form of proxy betting favoured by some high-stakes gamblers from China.

Hong Kong-listed casino operators reported extended losses after May’s results were released, with Bloomberg Intelligence’s index of Macau gaming stocks falling 2.4 percent, compared with the 1.2 percent drop at the mid-day break in trading. Sands China dropped 3.3 percent whilst Galaxy lost 2.5 percent.