Macau casinos’ gross gaming revenues in January dropped to their lowest level since 2011 as operators cashed in MOP23.748 billion (US$2.97 billion) for the first month of this year, data published yesterday by the Gaming Inspection and Co-ordination Bureau reveals. The last time gaming revenues hit such a low point in January was in 2011, when gaming operators generated gross revenues of MOP18.571 billion (US$2.33 billion) in the first month of the year. In relation to January last year, casino revenues shrank 17.4 per cent from MOP28.739 billion (US$3.60 billion) to MOP23.748 billion. Revenues have now been dropping for an unprecedented eight consecutive months since the market was liberalised in 2002. Also in 2014, it was the first time on calendar-year terms that gaming revenues had decreased, dropping 2.6 per cent from MOP360.7 billion (US$44 billion) in 2013 to MOP351.5 billion (US$45.2 billion). The January fall in revenues is within the expectations of gaming analysts that predicted earlier last month that revenues would decline between 16 and 18 per cent. Macau revenues have been dragged down by the corruption crackdown driven by the President of the Central Government Xi Jinping, which has ensnared VIP gamblers, and by the adoption of a stricter transit visa policy that is hurting the mass market. Another factor that has been said by industry analysts to be affecting gaming revenues was the implementation on October 6 of a stricter anti-smoking policy inside gaming venues. Concerning the coming months, the situation is not likely to change until the new resorts start to operate in May, according to respected CLSA analyst Aaron Fischer. However, the worst has yet to come in terms of gaming revenue decline. “It will be close to a 40 per cent fall for sure. February this year will represent the worst month in terms of percentage decline”, said Fischer in an interview with Business Daily early last month. In terms of market share Galaxy Entertainment Group is back on top with 22.5 per cent, according to data compiled by Business Daily. With Galaxy Phase II and Broadway at Galaxy opening on May 27 the position of the group founded by Lui Che Woo seems comfortable in this respect. SJM ranked second in terms of market share, with Sands third.
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