Macau casino gaming revenue sees 52% drop to $1B, closure of five casinos in Q2

According to data published by the Gaming Inspection and Coordination Bureau (DICJ), overall casino gaming in Macau reported a 52% quarter-to-quarter drop in Q2 to MOP 8.4 billion ($1.03 billion). The majority was represented by mass baccarat, about MOP 5 billion ($618,6 million), almost half of the previous quarter. The negative results come as the government shut down all casinos last week for the first time in two years, due to a coronavirus outbreak, a move expected to further hit the city's gaming industry.

Results from mass casino table games dropped by half to MOP 6.5 billion ($803.9 million) in the second quarter of this year from the previous three-month period. Meanwhile, VIP results – represented by VIP baccarat – dropped by 59% to some MOP 1.9 billion ($235,074). Results from gaming slot machines were also cut by 32%, amounting to MOP 745 million ($92.17 million) between April and June.

Results from horse races managed by the Macau Jockey Club saw a 20% quarter-to-quarter hike to MOP 12 million ($1.4 million), while football and basketball bets managed by Macau Slot dropped by 6.8% to MOP 137 million ($16.9 million), as reported by Macau Business.

The gaming hub had 42 casinos in operation. However, according to the latest data released by the DICJ, five casinos closed in Q2, bringing the total of casinos operating in the city to 37. The casino closures mainly involved third-party-run casinos shuttered due to changes enforced in a newly approved gaming law amendment.

The decrease in revenue was expected due to the latest coronavirus restrictions. Earlier this month, analysts predicted that casinos had close to zero revenue since mid-June, when the city’s COVID outbreak began, adding that they were expected to have little to no income in the coming months. Even prior to their closure, analysts estimated the casinos were burning through some $600 million each month because of COVID restrictions. 

At the time, casinos in the gaming hub remain closed. Earlier this week the government announced that the casinos' lockdown, which was supposed to end on July 18, has been extended until July 23. With the latest measure, analysts predict that any recovery in gaming revenue would most likely not happen until the end of the third quarter or during the fourth quarter. 

Since mid-June, Macau has reported 1,700 cases. The city adheres to China's "zero-COVID" policy that aims to curb all outbreaks.