(Bloomberg) -- Macau gaming revenue plunged again in May as casino operators await the opening of borders to spark a recovery after an unprecedented shutdown of the world's largest gambling hub.
- Gross gaming revenue was 1.76 billion patacas ($221 million) in May, down 93.2% from a year earlier, according to data from the Gaming Inspection & Coordination Bureau. It was slightly better than the median analyst estimate of a 95% fall, and follows a record 97% decline in April.
Key Insights
- The results for May represent the eighth straight month of declining revenue, coming after Macau had already been battered by a two-year-long trade war and months of Hong Kong protests. The slump underscores the difficult task of recovering from a 15-day shutdown in February aimed at containing the coronavirus outbreak.
- While the pandemic has been curbed in mainland China, Macau and Hong Kong, casinos are still left with empty gaming tables because of border and visa restrictions, resulting in losses of more than $1 million a day each. Analysts are hoping controls will be eased starting this month, followed by a summer recovery.
- Even with the loosening of restrictions, there will still be “a clear set of risks,” Sanford C. Bernstein analyst Vitaly Umansky wrote in a note last month. Health experts are concerned about a second wave of infections, protests are flaring up again in Hong Kong, and the Chinese economy's recovery has been slow as relations with the U.S. deteriorate.
Market Performance
- The Bloomberg Intelligence index of Macau casino operators declined 0.7% in May and rose 2.4% on Monday after the decline in gaming revenue turned out to be a tad less than forecast. Benchmark Hang Sang Index fell 6.8% in May and gained 3.4% on Monday.
Get More
- Click here for analysts' survey on Macau gaming
- May 28, Death of China's King of Gambling Gives Empire Reins to Daughter
- May 12, Macau Gaming Regulator Head Resigns as Casinos Face Crisis
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