Revenue from gaming taxes in the Special Administrative Region of Macau have allegedly dropped by 13,3% in January 2020.
The government incomed €1.01 billion, which is less than in 2019, Financial Services Bureau says.
Despite the current coronavirus outbreak hitting all the Asian region, Macau could continue rocking. The total economics decrease couldn’t evade the gaming industry of Macau. Taxes paid by the gaming industry showed a significant drop in the first month of 2020.
In January, the Financial Services Bureau (DSF) reported €1.01 billion income, which means that local gaming tax revenue dropped 13.3% compared to 2019. The main reason is the coronavirus.
- Macau Casinos Shut-Down for Two Weeks due to Coronavirus
- Casinos in Macau to Begin Operating from February 20th
- Casino Revenue in Macau Decreased by 11.3% Due to Coronavirus
Gaming in Macau
Macau’s gaming industry returned running on February 20 after pausing for a quarantine. 15-day-long closing had to help to avoid spreading the coronavirus in China’s south.
Macau has 41 casinos operating. Twenty-nine of them opened at midnight at local time (GMT+8). The other twelve decided to pause before opening after quarantine. To do that, casinos have requested government permission.
After partly opening last week, casinos of Macau saw very few visitors, and gaming floors were almost empty. Rare gamblers were mostly sitting apart to keep away from other people trying to avoid the spread of coronavirus.
Twenty-nine establishments reopened again with a new list of rules for gamblers who wanted to play. Among requirements are the mandatory wearing of medical masks, checking temperature, and the submission of health reports using smartphones.
Earlier this month, Macau’s officials granted local gaming operators thirty days to get ready to start operating. Six gaming operators managed to get such permissions.
Macau government issued an order to close all the local operating casinos on February 4. After that, no new reports on coronavirus cases appeared. One of the hotel workers fell ill with Covid-19 a few weeks ago, though.
Twelve other casinos are waiting for the special governor announcements to open again. The currently closed casinos list is:
- Casino Taipa
- Galaxy’s Waldo
- Golden Dragon
- Macau Jockey Club
- Macau Palace
- Melco’s Altira
- Rio and President
- Sands Cotai Centre
- SJM’s Oceanus
Another casino, Greek Mythology, is still closed, having been temporarily shut down for years now.
Macau gaming industry will need a while to recover. As experts say. H. Curtis, an analyst of Nomura Instinet, says, a significant rise will start when the People’s republic of China reopens IVS or «individual visit scheme.»
Curtis expects another six weeks for China to allow IVS and group players to cross the border again. Until then, a minimal rise of EBITDA and GGR is expected, the expert says.
Temporarily closing of casinos was the main reason for Macau gaming taxes decreasing in 2020.
Even Grand Lisboa, the most popular Macau’s casino, currently sees no rush or queue outside the main hall.