Macau January GGR Falls Twenty Percent
In a concerning development for the autonomous region, Macau’s Gaming Inspection & Co-ordination Bureau have announced a 20% decline in month-on-month gross gaming revenue performance.
Numbers slid considerably from MOP 6.34b ($793m) in December, to MOP 7.96b ($997.5m) in January. The data is released amidst potential wide-scaling changes to Macau’s gaming landscape, with a landmark new bill set to be introduced around Spring this year.
This may offer some optimism against a backdrop of escalating headwinds. COVID-19 has proved a particularly challenging obstacle to navigate, with ongoing travel stipulations serving to severely undermine footfall into the region. Furthermore, the Omicron variant ripped through the crucial neighbouring province of Guangdong, whose punters usually pour over the border to visit Macau’s gaming venues.
Recent illicit financial activity has also impacted the industry, with several high-profile arrests casting a shadow on the integrity of the territories gambling enterprises. However, at least the proposed new bill offers some tangible solutions to address this undesirable trend.
The picture unfortunately worsens when comparing the month to previous years. In 2021, when the coronavirus pandemic was almost a year into its existence, Macau reported numbers that were 21% up this years’ total. Moreover, statistics collated just before the pandemic, in January 2020, demonstrate a 71% uplift in performance versus the 2022 levels announced by the DICJ on Tuesday.
The Chinese New Year may provide a considerable shot in the arm, as tourists from the mainland, from those provinces not currently subjected to any further restrictions, will hopefully enter the region en masse.
However, a difficult period for the Macau gambling industry, at least in the short-term, look set to continue.
