It was reported today that Macau finally recorded an increase in gambling revenue after a two-year stretch of losses
For over 26 months, the gambling hotbed of Asia, Macau, continuously lost money. It appeared to start after President Xi Jinping cracked down on Macau’s gambling laws by reducing the time mainland Chinese citizens could spend there, and limiting the number of gaming tables that casinos could run. Today, Macau gambling news broke that the city experienced its first increase in revenue.
Last year, Macau’s revenue dropped by a staggering 34%, and its economy shrank by 20%. The city attempted to draw in tourists using other means such as shows and museums, but approximately 60% of the city’s economy runs on casinos.
The fact that Macau finally earned more than they are losing is a step in the right direction, but the future of the city is still unclear. The increase was only by 1.1%, and gaming revenues for 2016 are still nearly 10% lower than they were last year.
What’s on Macau’s horizon?
Despite the lackluster results of Macau’s casinos, many investors are still holding faith that the city will begin to recover. The Wynn Palace opened in late August, and a $3 billion resort from Sheldon Adelson is set to open in September.
Unfortunately, the Wynn has not met expectations, but CLSA Ltd. Analyst Marcus Liu feels things could soon turn around. “It has largely cannibalized other properties, including their own on the peninsula. The October holiday will be the true test of whether the new property, together with The Parisian, can grow the market.” He said.
What do you think of the news that Macau finally experienced a revenue growth? Could the city regain the status it held just a few years ago? Leave your comments below, and make sure to check out GamingZion’s list of online sportsbooks in Macau to find all the best websites for betting on sports!