The DICJ showed Macau GGR for November reached €2.58 billion, down 8.5% year-on-year.
Macau.- According to the Gaming Inspection and Coordination Bureau (DICJ), Macau gaming gross revenue (GGR) for November was down 8.5%. The figure came in at just €2.58 billion, considerably down year-on-year.
“We think VIP performance was again challenged,” Deutsche Bank stated in a note. “VIP GGR (was) down in the mid to high 20% range year over year.”
“We expect December to be challenged with visa restrictions ahead of the visit from President Xi Jinping and continued headwinds in the VIP segment. That said, we think there is potential for flat, and potentially positive, comparisons to emerge in the 1Q20, should the seasonal stability exhibited over the past two months remain firm,” they added.
Gaming in Macau produces 50% of its GDP
The Statistics and Census Bureau (DSEC) revealed casinos and junkets produced 50.5% of Macau gross domestic product (GDP). The figure involves GDP at producers’ prices, in which gaming in Macau has now a 1.5% higher share.
The report shows gross value added (GVA) at current prices in the segment jumped 10% in real terms year-on-year. In 2018, it reached €24.7 billion.
Macau’s 2020 budget
The Macau Legislative Assembly has approved the budget for 2020, and gambling will contribute with most of its revenue. The budget balance for 2020, which was approved unanimously, has been set to €2.4 billion. As reported by Macau Business, the local government wants the Integrated Ordinary Budget revenues to reach €13.6 billion by 2020. That figure would represent a 0.3% rise from the year-end forecast that the Economy and Finance Secretary Lionel Leong had reported before the 2020 budget vote.
The gambling industry is still the most important force for the local economy. The government is likely to collect €10.1 billion in Special Gambling Tax or around 74.5 % of total revenues.