Macau GRR fell 3.4 pct in 2019

Macau GRR fell 3.4 pct in 2019

According to the Gaming Inspection and Coordination Bureau, Macau GGR dropped 3.4% during 2019 as it reached €32.7 billion.

Macau.- It seems 2019 wasn’t the best year for the largest Asian gaming hub. According to the Gaming Inspection and Coordination Bureau (DICJ), Macau GGR dropped 3.4% last year.

The body showed the full-year GGR in the territory reached €32.7 billion, less than 2018’s figures. The result follows a major 13.7% year-on-year drop last December, which was attributed to Chinese President Xi Jinping’s visit. 

Fitch Ratings’ assessment

Fitch Ratings has changed its rating for Macau and downgraded it from “Stable” to “Negative”. The agency said that the downgrade is due an increased exposure to mainland China.

“The agency’s ‘AA’ rating on Macao is currently two notches above that of mainland China (A+/Stable). It rests on the assumption that the territory’s governance, rule of law, economic policy framework, and business and regulatory environments remain distinct from that of the mainland,” said Fitch Ratings.

The agency also talked about the gaming industry and explained that Macau operations of US casino operators are not likely to be enveloped in ongoing US-China trade tensions, “given the potential ramifications this could have on local employment and the territory’s social stability.”

Fitch said that Macau’s growth outlook could be indirectly affected by further escalations in the US-China trade tensions. “The gaming industry represents 51% of aggregate activity and 22% of the employed population, despite efforts to diversify into other sectors. This elevated concentration to a single industry exposes the economy to shocks. It has also contributed to Macao’s historically high level of GDP volatility,” said Fitch.

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