Data released Friday by Macau’s casino regulator, the Gaming Inspection and Coordination Bureau (DICJ) show the gaming downturn entering its third year with a year on year gross gaming revenue (GGR) drop of 8.5 percent for June at MOP15.881 billion (US$1.99 billion) the lowest level since September 2010. At the end of the second quarter accumulated GGR for the year was down 11.4 percent from 2015 at MOP107.787 billion.
January showed the biggest decline of the year with a 21.4 percent drop year on year, and although February, with increased traffic and activity for the Chinese New Year did not create a positive number, losses were stemmed to just .10 percent followed by the second biggest constriction of the first half of 2016 at 16.3 percent for March. Q2 was fairly level clocking in monthly falls from June’s 8.5 percent to May’s 9.6 percent.
More detailed data such as mass market vs VIP revenues are expected to be released later.
The Macau economy is expected to continue contracting for the remainder of the year, when many analysts believe a bottom will be found as the city’s operators adjust to shrinking VIP revenues, increase their mass market traffic, and new venues begin to open in the Cotai section. The Economist’s Intelligence Unit published a report on June 20 predicting that real growth will return in regard to gross domestic product in 2017, offsetting the economic losses of 2016 and setting the stage for a grinding recovery.
In February the DICJ released numbers showing the growth and decline of GGR in the special administrative region from 2007 through 2015. It shows steady growth from US$10.5 billion in 2007 to the peak year of 2013 with an astounding US$45.27 billion in 2013. That year Macau outstripped Las Vegas by seven-fold. 2014 saw monthly rise and fall registering US$44.16 billion in total GGR at the close of the year. 2015 was the year the current 25 month contraction began, ending with gross gaming revenues of US$28.33 billion.