Macau gaming revenues suffered their worst year-on-year drop on record in October, falling 23.7 percent against the same month last year.
The 35 casinos took in MOP28 billion (US$3.5 billion), which paled against October 2013’s $4.6 billion month, the market’s second-best month on record, even though in absolute terms this October was “broadly in line” with the range from June to August, noted Union Gaming Research Macau, and almost 10 percent higher than September, which was a low in absolute terms at MOP25.2 billion.
Revenues are down five straight months in the Chinese gambling hub, and it isn’t expected to improve in the months ahead as tougher comparisons weigh on investor sentiment.
VIP has declined in the second half of this year from the Chinese government’s aggressive crackdown on corruption and graft, while falling property prices on the mainland, coupled with slowing economic growth, has tightened the credit markets on which the sector depends.
The corruption issue is expected to loom large well into the future following the announcement that the government has created a special agency to investigate and prosecute cases.
The higher-margin mass market is slowing down as well. It fell 8 percent in October, the first negative year-on-year comparison this year.