Macau’s casino industry has been struggling immensely since early 2020. This has made things extremely difficult for all of the US casino operators in Macau. New reports have just surfaced claiming that casino revenue in Macau is expected to drop soon once again.
There is a real reason for the casino operators here to be concerned. Mainland China has been putting major pressure on Macau and seems to be targeting the territory’s gaming industry.
This is a quick look at what is exactly is taking place here.
Here’s Why US Casino Operators in Macau are Concerned Right Now
Prior to 2020, things seemed to be almost perfect for the gambling industry in Macau. This city had long been the most profitable gaming destination in Asia. Millions would flock from Mainland China and other countries around the world to visit and gamble inside the multi-million dollar properties operating here.
In early 2020, things completely changed. Officials in Macau ordered all of the city’s casinos to shut their doors. China’s government set intense travel restrictions to and from Macau and the casinos operating here immediately saw their revenue figures plummet.
Many of the US casino operators in Macau are now showing concern about their revenue figures in the near future. Casino companies in the city are expecting total Q3 profits to come out to just $62 million before interest and taxes. Analysts are also forecasting that 2021’s third quarter will be the worst in history for the casino industry here.
This quarter is historically the most successful month in history for the casino industry here. Unfortunately, travel and health regulations kept many visitors away. Many are now expecting another poor three months over 2021’s fourth quarter.
These upcoming revenue reports will likely have an impact on the share prices of casino companies in Macau. Stay tuned for updates on this situation over the next few months.
How is the US Casino Industry Faring Right Now?
The US casino industry found itself in a similar situation to Macau’s in early 2020. In March of last year, officials around the country ordered their casinos to shut down to the public. All US casinos remained closed to the public until the summer months.
2021 has proven to be completely different for this industry. Revenue figures have been surging throughout the year. In fact, casino revenue hit new monthly records on several occasions throughout 2021.
August has proven to be another solid month for casino companies around the United States. That includes the properties in Atlantic City. Gambling revenue surged here in August and new organizations are beginning to invest in various casinos around the city.
Pennsylvania is another major gambling hub to experience a revenue surge in August. The casinos here managed to bring in more than $408 million in revenue over the month. Pennsylvania is quickly developing one of the largest gaming industries in the country.
Many of the top US casino operators are now focused more on expansion. Here’s a look at some of the recent casino sales and purchases around the United States.
Expect to See More Casino Sales in 2022
There was concern that the events that unfolded in 2020 would have an irreversible effect on the world’s casino industry. It’s been incredible to see how quickly the casinos in the United States have managed to turn things around.
Many of the top casino operators in the United States are now looking more at casino sales and purchases. That includes property sales in some of the country’s top gambling hubs. Several of these purchases have already taken place in Las Vegas this year.
Las Vegas Sands is one company that has been involved in several major sales over the past two years. This gaming operator recently sold The Venetian, one of its biggest and most profitable gambling properties in Las Vegas. It has since focused on its operations in Macau, yet revenue figures in this Asian casino hub remain low.
It seems very likely that more major casino sales and purchases will be announced in 2022. Things are changing fast in this industry. It will be interesting to see which companies decide to make the move into places like Las Vegas over the next 14 months.
US casino operators in Macau are in for a tough few months. What do you think will happen with Macau’s casino industry in the future? Let us know in the comments section below.