Macau’s revenue is improved despite the month’s weak start
This month, Macau is expected to bring in MOP 18.5 billion (US$2.3 billion) in gross gaming revenueDS Kim, Mufan Shi, and Selina Li from JP Morgan believe that the gaming...
Macau’s entertainment industry severely impacted from COVID-19
Covid-19 had a significant impact on Macau’s gambling income in October, comparing both month-on-month and year-on-year statistics.
Macau had a 25.7% drop from the previous month, culminating in MOP4.36 billion. When we compare October figures from last year to this year, we notice a 39.9% decrease. These Covid-19 restrictions have also had an impact on the gambling sector, reducing casino revenue by 79.3%, totaling 83.5% less than in 2019.
The limitations that have been reinforced because of the pandemic have taken a big part in this result. Anyone leaving Macau must have a negative Covid-19 test within 48 hours starting from September, in preparation for the Golden week (October 1 to October 7).
Some Macau Entertainment businesses were forced to shut down because of the increase of cases in the virus on October 5th. Many casino services, like nightclubs and bars, closed due to several new regulations. However, casino gaming floors were allowed to remain open. The ones that are closed don’t have a reopening date.
Macau’s total gross gaming income has now reached MOP72.15 billion.
In September, Macau’s government initiated a 45-day consultation time. The objective was to implement substantial reforms in the gaming industry that would last until October 29. The changes incorporate the addition of “Government Delegates” to licensees.
Three hundred fifty-nine participants attended a total of 8 sessions during the consultation gathering.
The government mentioned:
“The Macao SAR Government, as a representation of society’s state interest, has a responsibility to preserve the interests plus well-being of the whole local community. The entertainment establishments, for their part, have as their primary goal the maximization of their own earnings.”
“Because of this discrepancy, representatives should be chosen to enhance the Government of the Macao SAR’s authority of direct inspection over the concessionaires.”
Changes are possible to Law No. 16/2001 – “The Legal System for Casino Gaming Operations.” The adjustments may result in changes in criminal proceedings, including illegal activity by operators and a reduction of the number of licenses awarded.
Macau’s Gaming Inspection and Coordination Bureau (DICJ) announced appreciation for the community’s involvement in the consultation. They noted how much helpful feedback they received from the attendees.
In addition, the DICJ stated that it would provide a document to the Macao Special Administrative Region government portal and the website of the DICJ, outlining the consultation, including its probable consequences.
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