Gambling is the biggest money-making industry in Macau but December is not looking good for the autonomous region of China. According to casino industry analyst projections, December will be a bad month for the Macau casino industry. However, the current numbers for the Macau Casino Revenue are looking even weaker than the projection.
Furthermore, JP Morgan also made a report about the Gross Gaming Revenue (GGR) for the first half of December. Thus, according to the report, the GGR for casinos in Macau came to $1.35 billion or $90 million per day. Unfortunately for the Macau casino industry, these are much lower numbers then the estimates made earlier.
A Difficult Time for the Macau Casino Industry
According to online casino analysts, the $90 million GGR per day will lead to a 16% decrease in comparison to last December. Furthermore, this is a much lower projection of the 10% decrease made by other financial institutions.
In their latest reports, JP Morgan analysts expect “December GGR to drop 14% to 16% year-on-year.” Thus, it comes to roughly $2.78 billion to $2.84 billion which is very weak in terms of “both growth and absolute terms”.
It looks like 2019 will be the end of the Macau Casino Revenue rebound since the GGR fell from $45 billion in 2013 to $27.9 billion in 2016. According to online casino forums, this came about after the Chinese crackdown on VIP junkets.
The Casino industry in Macau began a rebound in 2017 with $33.2 billion and $37.8 billion in revenue in 2018. However, it looks like the rebound is no over. Gambling Software analysts blame it on difficult economic growth in China and the U.S. This is in addition to the social unrest that is still taking place in Hong Kong.
On the other Hand, some gaming analysts believe that next year will be better. Even though it will not be a large growth they predict that it will be at least a 2% improvement.
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