Analysts Predict Macau Casino Revenues will fall significantly in April
The global coronavirus epidemic has severely damaged several businesses and sent shockwaves across the globe. Though land-based gaming is also in hot water, tourism and transportation are two of the major industries impacted by these enormous issues. Casinos have closed all around the world, and the largest gaming centers have been especially affected. The casinos in Macau and Las Vegas took a direct hit and will likely sustain large losses in the upcoming weeks and months.
The Worst Month In Macau Casino History
For an extended period, the Asian gaming city has been a formidable rival to Las Vegas and has experienced consistent expansion. Following the shutdown and the dramatic drop in tourists, Macau’s casinos are getting ready for the worst month ever. While many individuals are searching for slots on their mobile devices, unlike their western counterparts in the UK, online gambling is illegal in this region. The short-term outlook for the analysts is very bleak; some predict that in April, casino income may nearly completely disappear. Although the figures are unsettling, they are supported by facts because travel restrictions have severely damaged the gambling sector.
In the past, in addition to Chinese gamblers, Macau also attracted gamblers from other continents. Only the latter are allowed to come here and gamble these days, and even the Chinese players aren’t coming in droves as they used to. Although the number of new cases and deaths from the coronavirus is officially low, there is still a great deal of concern. The majority of people no longer find it appealing to spend a lot of time in close proximity to other gamblers, since people have learnt to avoid crowded areas.
A Damning Hit To Resort Owners
Similar to Las Vegas, Macau’s entire economy revolves around the gaming sector, specifically the casinos. But the wealth isn’t solely derived from gaming; in this city, casino owners have constructed opulent resorts. Following the global disruption caused by the coronavirus epidemic, Las Vegas Sands, Melco Resorts, Wynn Resorts, and MGM Resorts are addressing the fallout. They were forced to close in February, but even once they reopened, nothing improved.
Millions of tourists visit the resorts annually, but in 2020, most of them were deserted. With the monthly gross gaming income falling, it makes sense that April will be the worst ever. This is a result of China’s limitations on foreign visitors, which forces casinos to rely solely on domestic patrons. Even Chinese gamblers are hesitant to visit these casinos, despite the fact that they make up a sizable portion of the player base.
Some people worry that revenues will almost completely disappear, but even the most optimistic projections don’t provide us a positive image of what’s to come. In the best-case scenario, Macau casinos might announce GTRs that are 10% higher than those from the previous year. The impact on land-based gaming operators will increase with the duration of the coronavirus epidemic; some may even experience bankruptcy.
