According to data released by the Macau Gaming Inspection and Coordination Bureau, the once gambling heaven’s November gross gaming revenue dropped by 32.3% y-o-y to around MOP16.43 billion (around $2.06 billion). This GGR is the lowest one recorded since September 2010 and November was the 18th consecutive month of decline.
When November earnings are added to the accumulated GGR of Macau for 2015, the gambling hub’s revenue for these 11 months reaches MOP212.5 billion. In comparison to last year, the GGR slipped for 35.3%.
Macau, whose economy strongly depends on its casino industry, witnessed a sharp economy drop of 24.2% in the three months through September. The Secretary for Economy and Finance Lionel Leong said that the city’s GDP is expected to fall for 20% or more this year because of the struggling gaming market.
The situation in Macau should have been improved by several public infrastructure projects. However, many of them were postponed, thus it’s highly unlikely to see a jump of Macau gambling industry during the next year according to some analysts. For example, the bridge that will connect Hong Kong, Zhuhai and Macau across the Pearl River Delta won’t be completed in 2016, as was initially planned. The project should be wrapped up one year later that the announced “end of 2016” deadline.
Deutsche Bank Securities Inc analysts, Carlo Santarelli and Danny Valoy, pointed out 2018 as a year when Macau might get back on its feet. They noted that the city was in a state of depression, mentioning how the openings of the multibillion properties Studio City and Galaxy Macau Phase 2 were met with “an unwavering.”
Macau today gets a new director of its Gaming Bureau after Manuel Joaqum das Neves has retired; he was holding the position for almost 20 years. His successor is the former assistant public prosecutor-general Paulo Martins Chan.