Macau Gaming Revenue Slips as Golden Week Fails to Impress

(Bloomberg) -- Macau gaming revenue showed further weakness in October amid China’s economic slowdown, as casinos saw an underwhelming boost from the Golden Week holiday compared with a year earlier.

• Gross gaming revenue was 26.4 billion patacas ($3.3 billion), down 3.2% from a year earlier, according to data from the Gaming Inspection & Coordination Bureau. The drop was in line with analyst estimates, after revenue touched the lowest level in a year in September.

Key Insights

• October is typically a strong month because of the Golden Week holiday in China, and indeed the level for October was the highest in 2019. But the 11% gain in visitors over the holiday period this time was markedly lower than last year’s 19% rise.
• The latest numbers show the challenge facing casino operators as growth in the mass segment failed to make up for the slack in the volume of high rollers, who are staying away.
• Casino operators were hoping for a strong second half in Macau, but revenue has instead been pressured by myriad negative factors including the trade war, a weakening yuan, social unrest in Hong Kong and regulatory uncertainty over high-roller junkets.

Market Performance

• A Bloomberg Intelligence index of Macau casino operators rose 0.2% in afternoon trading in Hong Kong on Friday.
• The gauge climbed 9.9% in October, though it is still down 17% from a high at the end of April.

Get More

• Click here for analysts’ survey on Macau gaming
• Oct. 8, China Holiday Week Not So Golden for Macau Gaming: Taking Stock

To contact the reporter on this story: Jinshan Hong in Hong Kong at jhong214@bloomberg.net

To contact the editors responsible for this story: Rachel Chang at wchang98@bloomberg.net, Jeff Sutherland, Bhuma Shrivastava

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