Things continue to get more difficult for the casino operators in Macau. New reports have just surfaced showing that casino revenue in Macau dipped again over the month of January. It’s tough news for the US casino companies that are still struggling in this territory.
Analysts remain torn on how Macau will fare over 2022. Now is a great time to talk about some of the different possible scenarios.
Let’s get into it.
Reports Show Casino Revenue in Macau Dropped Again in January
Macau was once the most profitable gambling hub in the world. It drew in millions of tourists from around Asia every month. Many of the world’s biggest casino companies worked to break into this territory, as well.
The past couple of years have proven to be extremely difficult for the companies with casinos here. The pandemic has led to low tourism rates and intense regulations from Mainland China. The Chinese government has also led various crackdowns against gambling operators that they believe violate their laws.
New reports on casino revenue in Macau over the month of January have just surfaced. It’s been confirmed that the casinos in this city saw an overall revenue decline of 20.9%. About $785 million was brought in by these casinos over the month.
Many experts point toward the continued crackdown on junket operators as a reason for these revenue declines. These experts also expect another poor month in February. David Katz, a notable gambling analyst with knowledge of Macau’s casino industry, spoke about the projections to the media this week.
“We believe uncertainty remains regarding the concession outcomes, as well as demand recovery post-COVID and the secular decline in VIP play, which shape our conservative stance,” Katz said.
US casino companies with properties in Macau have some tough decisions to make. Here’s a look at how the recent events have affected these companies.
US Casino Stock Prices Drop With Macau Developments
Gaming analysts around the US have been torn on the future of Macau as a casino hub. Some felt this city would have already begun to turn around by this time. That has not necessarily been the case and Mainland China continues cracking down on various companies here.
Not long ago, casino companies were finally given information on how to renew their gaming licenses in Macau. This immediately resulted in the share prices of these companies increasing. The good times did not last and recent government crackdowns have led to another drop in these share prices.
Government officials in Macau recently arrested Chan Weng Lin, the CEO of Macau Legend. This move sent shockwaves through the gambling industry in this territory. Lin was considered one of the most powerful individuals within the casino industry in Macau. His arrest comes as a part of the aforementioned junket crackdowns.
US casino companies may soon decide whether or not to sell their casinos in Macau. Wynn Resorts currently owns three properties in this territory. Not long, officials within Wynn Resorts revealed the company is opening a new casino in the UAE in the future.
Casino revenue in Macau may continue to decrease throughout the year. If this is the case, the casinos here may ultimately be forced to shut down. Stay tuned for updates as the year goes on!
US Casino Revenue is Expected to Surge This Year
The United States’ casino industry is in a far different position than the one in Macau. In fact, casinos around the US have thrived over the past year. Many of the country’s top gambling hubs reported record-breaking revenue figures throughout the year.
Most analysts expect an even better year for the US casino industry in 2022. Exciting new casinos are opening around the country. Tourism into casino hubs is already increasing and will likely ramp up leading into the summer.
Las Vegas remains the most profitable gambling destination in the US. Station Casinos is currently working to open several new casinos here. Various companies are also breaking into this city, including Hard Rock International, which is taking control over The Mirage.
Atlantic City thrived in 2021 and will likely find more success in 2022. Many of the casinos here are undergoing major renovations right now. Competition in the East Coast gambling industry is increasing, yet New Jersey remains the most successful casino destination in this region.
Casino revenue in Macau dropped again last month. Do you expect things to improve in Macau later this year? Let us know in the comments section below!