Facelift for Macau
03 September 2015
The gambling revenue in Macau, China continues to fall. Now the casino capital is supposed to go through a complete facelift and in Asia a new Las Vegas is planned to be built. For years, China’s leaders have urged Macau to transform itself into a diversified entertainment center like the Las Vegas Strip, where gambling accounts for just over one-third of casino resort revenue. Macau generated a $ 44 billion revenue in gambling last year, or seven times the revenue of the Las Vegas Strip, but since mid 2014, when China started its fight against corruption and money laundering, the revenue has been decreasing steadily.
There is no other Vegas in the world, except for the one in Asia. At the same time, the local government strictly controls the supply of gaming tables and therefore the casino operators have no other choice but to increase their non-gambling deals. On Tuesday we received the news that Macau’s gambling revenue has been decreased by 36% year on year to 18.62 billion patacas, or about 2.1billion. € in August. In the first eight months of 2015, sales were on average 37% below the previous year, including a record of a 49% decline in February. Macau’s economy shrank by 26% in the second quarter, and the government decided on Tuesday to introduce additional austerity measures to save over $ 175 million in public spending. In recent weeks, some analysts have again given their projections for the gambling revenue and it is now expected that it will fall to US $ 30 billion this year. Since more than 80% of the revenue of the Government of Macao originates from gambling taxes, this is a big problem. Another problem is that many leaders of the Casino of Macau and analysts see no change in the foreseeable future. Ben Lee, managing partner based in Macau consulting IGamiX said that Las Vegas is unique, even the US and Macau will never develop a model as the one in Vegas, because there is no other Vegas in the world, not to mention Asia.
The sales decline in numbers
2013 2014 2015 Vgl. 14/15
Jan 26.864 28.739 23.748 -17,37% Feb 27.084 38.007 19.542 -48,58% Mar 31.336 35.453 21.487 -39,39% Apr 28.305 31.318 19.167 -38,80% May 29.589 32.354 20.346 -37,11% Jun 28.269 27.215 17.355 -36,23% Jul 29.485 28.415 18.615 -34,49% Aug 30.737 28.876 18.623 -35,51%
TOTAL 231.669 250.377 158.883 -36,54%