Select Page

Don't Tread On My Site

Macau’s Gaming Revenues Crash 94.5% In July As Recovery Hopes Dim 

Load WordPress Sites in as fast as 37ms!

Macau’s Gaming Revenues Crash 94.5% In July As Recovery Hopes Dim 

Tyler Durden

Mon, 08/03/2020 – 00:45

Casino stocks roared back to life in early July on prospects of easing Chinese travel restrictions for Macau would lead to booming tourism in the world’s largest casino hub. But as we found out Saturday morning, via Reuters, that’s wasn’t the case as gaming revenues crashed.

Gaming revenues for Macau collapsed 94.5% in July, on a YoY basis, despite travel restrictions to the area relaxed. Gambling in a pandemic, or mainly the fear of being around other people in a closed, indoor space was enough to deter Chinese mainlanders. 

July’s gaming revenue figure was around $163 million and in line with analysts’ expectations of a 95% drop. 

“Casinos are staring at heavy losses for the second quarter, with not much hope for a near-term recovery as a resurgence in coronavirus cases muddies the outlook for when China will reinstate travel visas,” said Reuters. 

Even with travel restrictions eased, Macau last month saw about 2,000 visitors per day, or about 98% reduction in traffic from its usually 108,000 daily average in 2019. 

Shares in MGM Resorts International soared in early July on prospects MGM Macau would see an influx of mainland Chinese as Macau started to reopen. Judging from the continued decline after the pop in optimism, along with Reuters’ Macau gaming revenues for the month, the road to recovery appears to be a bumpy one. 

Here’s our reporting on collapsing gaming revenue in the gambling hub: 

MGM Macau is heavily discounting room rates into August. 

As for Las Vegas, we noted last week, it could take three years for the gambling city in the US to recover. 

Macau’s continued plunge in gaming revenue through the summer doesn’t bode well for the global V-shaped recovery narrative.

 


This post has been republished with permission from a publicly-available RSS feed found on Zero Hedge. The views expressed by the original author(s) do not necessarily reflect the opinions or views of The Libertarian Hub, its owners or administrators. Any images included in the original article belong to and are the sole responsibility of the original author/website. The Libertarian Hub makes no claims of ownership of any imported photos/images and shall not be held liable for any unintended copyright infringement. Submit a DCMA takedown request.

-> Click Here to Read the Original Article <-

Advertise on Libertarian Hub

About The Author

Tyler Durden

Zero Hedge's mission is to widen the scope of financial, economic and political information available to the professional investing public, to skeptically examine and, where necessary, attack the flaccid institution that financial journalism has become, to liberate oppressed knowledge, to provide analysis uninhibited by political constraint and to facilitate information's unending quest for freedom. Visit https://www.zerohedge.com

Leave a reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.