Macau casinos report their worst April on record as gross gambling revenue fell more than expected amid coronavirus pandemic
- Gross gaming revenue plummeted by an unprecedented 97 per cent to 754 million patacas (US$95 million) in April
- The plunge last month was 3 percentage points worse than analysts’ expectation
Macau casinos suffered their worst month ever as travel restrictions during the coronavirus pandemic left the world’s biggest gambling hub struggling with few players and a heavy daily burn of cash.
Gross gaming revenue plummeted 97 per cent to 754 million patacas (US$95 million) in April from a year earlier, according to data from the Gaming Inspection & Coordination Bureau. That’s the biggest drop on record, surpassing an 88 per cent plunge in February. Analysts were looking for a decline of 94 per cent.
The situation for casino operators in Macau has continued to deteriorate even after they reopened their doors following a 15-day shutdown in February aimed at curbing the contagion. While operations have restarted, baccarat and roulette tables remain nearly empty, and casinos are each losing more than US$1 million a day.
The outbreak has been largely contained in Macau as well as in neighbouring Hong Kong and mainland China, but restrictions on travel make it almost impossible for tourists and high rollers to show up to place their bets.
Melco Resorts & Entertainment this week highlighted the unprecedented damage the coronavirus is having on the US$36 billion industry, culling its senior ranks while other executives take a pay cut. Chairman Lawrence Ho, who will forgo his salary for the remainder of this year, wrote in an internal memo that the number of customers since reopening has been “virtually zero.”
