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Gaming Revenue in Macau is Slowly Beginning to Increase

Macau's tiny territory has steadily become one of the world's largest destinations for gaming. Macau is a special administrative region of China in the south of the country, located on the opposite bank of the Pearl River Delta from Hong Kong.
The city is often called Asian Las Vegas because of its giant casinos and shopping centers on Kotai Strip Boulevard, which connects the islands of Taipa and Coloan.

Unfortunately, the casino industry here has been crippled by trade tensions between the US and China, and the global pandemic. New reports have just been published which suggest that gaming revenue in Macau is finally beginning to grow again.

In the last few months, casinos here have failed to draw players. Even today, these assets gain just a fraction of what they were paying in 2019. Nowadays we will be breaking down the modest rise in sales reported here over the last two months. Let s get ready to see it. 

Macau's casino income looses a 95 percent in August 

Macau has been a world-class casino destination for decades. However, this town has seen its tourist and sales rates decline dramatically over the past few years. Most refer to the U.S.-China trade war as the main explanation for the decline.

With China's economy weakening, here fewer nationals are able to make the trek to Macau. This led to a substantial drop in vips visiting this area. Revenue kept declining and many feared things would never rebound.

By 2020 conditions changed considerably. At the beginning of the year, Macau authorities directed all of the city's casinos to close down entirely. That didn't last long, but it did have a detrimental effect on the local economy.

China has also imposed extreme limits on travel within this area. Recently some of those were removed. That has also not resulted in a large influx of Chinese visitors. Gambling sales here were almost non-existent for a while. Now more money is going in and that is much cheaper than what was achieved last year.

Officials here are now doing their best to encourage tourism and draw significant VIP matches. However, as we have just reported, august has seen a dramatic fall in casino revenue. But that doesn't mean things aren't getting better.

New estimates have emerged that indicate a small rise in sales in Macau month-on-month.

That is a positive indication which may mean things are starting to turn around. Macau raised $76.8 million over the month of august, via taxes from its casino industry. That's a 52.4% leap relative to July's month. Most believe that a city already trying to pull in tourism is an remarkable rise. Macau's raised only $2.85 billion in gaming sales over the first eight months of 2020.

That's well from what economists at the beginning of the year originally expected. Based on the current trend, by the end of 2020, the region will be faced with a multi-billion dollar deficit. Fully reopening boundaries will be crucial to bringing tourism up again. Of course, there's some concern that might lead to fresh COVID-19 spikes in both Macau and mainland China.

It is a complicated problem and one which is being dealt with by other big casino destinations around the world. Revenue from gaming in Macau continues to rise. However, it would take a lot more to get the town back to where it was last year.

Big U.S. casino resorts are already failing, as well conditions in Macau definitely look gloomy. This is a city that depends almost exclusively on the income from its casino industry. It also hires a large number of local residents, many of whom have had their employment move away because casinos are experiencing poor sales estimates.

This is far from being the only big destination in the casino that is actually failing. Land-based casino income over in the us took a huge dive in 2020. That is valid in Las Vegas, the country's biggest gaming destination. In Las Vegas are some of the finest casino-resorts in the country.

Governor Steve Sisolak requested that all Nevada casinos shutter in march. It was until june that permission was granted to gambling establishments here to open again. Things here seem to be changing, but turnover numbers stay somewhat poor, just like Macau.

Atlantic City's doing marginally better. This city boasts a regulated online casino and sports betting industry. Proving to be extremely effective. In reality, new jersey has set an all-time US sales record received from the sports betting industry. Many areas of the world that depend on land based casino revenue are currently suffering. And the best experts can't predict precisely when that'll change. 

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