Macau casinos were prosperous in 2019 and it looked like the strong trend was only going to gain further traction. Things took a turn for the worst in 2020, when the global pandemic led to the closure of many casinos in the Asian Las Vegas. Those who were hoping for things to change for the better at the end of the year and the early 2021 were terribly disappointed by the outcome. Not only did land-based casinos failed to bring back players, but many are struggling with significant losses and are in risk of bankruptcy.
12th consecutive months of revenue decline
January 2020 was a great month for online casino operators like PlayUK.com, although the concerns regarding the novel coronavirus were serious on mainland China. Even so, there was no shortage of players in Macau casinos and that’s why the year-to-year decline stands at a massive 63.7%. It was in line with the losses suffered by the casinos compared to December 2019 but much better than March 2020.
The fact that these percentages are expected to improve in the next couple of months doesn’t mean all that much. There’s a strong chance that the revenue in March 2021 and April will surpass the numbers posted one year ago. This is, however, the consequence of a catastrophic drop in income during those months in 2020, with April being the worst in history. The record 96.8% decline is unlikely to be matched anytime soon, but things are not going to return to the pre-pandemic status either.
Storm clouds are gathering over Macau
The Gaming Inspection and Coordination Bureau revealed these chilling numbers, which only confirm the fact that Macau casinos are in dire straits and struggling heavily to stay afloat. The problem is shared by land-based gambling operators from all over the world, but the money lost by casinos in this gambling hub is enormous. The gross gambling revenue in the city fell by nearly 80% year on year in 2020 and this led to sizable losses for the local industry.
Not only casinos, but also hotels and entertainment venues were heavily hit by the fact that visitors just stopped coming. The temporary closure of casinos and the fact that travel restrictions were in place for most of the year had a negative impact on the local economy. Since then, some casinos have reopened and traveling to the Chinese city is once again permitted, but visitors are not flocking to this destination.
In 2021, things are expected to improve gradually, as the positive impact on the new vaccine start to show. Land-based casinos depend heavily on foreign players and unless the public sentiment improves, gamblers will still be reluctant to visit these places. Crowded areas continue to scare prospective punters and many of them chose to switch to online entertainment. Those who play at Internet casinos are perfectly happy with their decision and few are anxious to return to traditional brick-and-mortar venues.
