Macau has posted its financial results from September 2022. Gross gaming revenue rose by 35% during September when compared to the previous month, however, the city's Gaming Inspection and Coordination Bureau (GICB) posted a decline of 49.6% for the month.
Macau’s total gross gaming revenue reached $366m last month, reflecting a decrease of 87% from 2019’s pre-pandemic numbers during the same time of year, according to figures released by the GICB. Continued lockdowns in China to curb nationwide outbreaks were cited as a key factor in the city’s productivity decrease.
China has launched a series of snap lockdowns in an attempt to control Covid-19 outbreaks, however this has discouraged tourists from visiting the gambling hub.
As per Macau's report, the downward trend started in March, with a steady monthly drop that falls in line with the median analyst estimate of a 50% year-on-year decline.
President Xi Jinping has decided to stick with a strict approach to stomping out Covid-19 flare-ups in the lead-up to this month's Party Congress. He is expected to win an unprecedented third term in power at this crucial session.
Analysts have projected a potential spike in tourism in October because of China’s National Day holiday, which lasts a full week. The increase in activity could lead to Macau’s October gaming revenue dropping by less than 10%.
Lockdown timeframes in China have varied, ranging from two weeks to 40 days or longer. In addition to revenue decreases, Macau’s six operators in China continue to experience delays in licensing due to pandemic precautions. Current permits to operate in specific areas of the country are due to expire at the end of this year.
