A Jefferies Group expert forecasts that Macau’s gaming sector may not experience a financial rebound until 2023. The COVID-19 outbreak severely impacted the sector, as the Macau administration implemented stringent travel limitations and business shutdowns. The consequences were dire, driving unemployment figures to their highest point since 2009.
Further darkening the outlook, the Gaming Inspection and Coordination Bureau of Macau revealed earlier this month that gross gaming income plunged by 95% year-over-year in July, representing the most significant monthly decrease since the pandemic’s onset. This equates to a meager 3.98 billion patacas (approximately US$493 million) in revenue for July, a substantial 84% reduction compared to the preceding month.
Analyst Andrew Lee posits that visitor numbers will stay low due to apprehensions about potential new lockdowns, delaying a complete recovery for Macau until 2023. His projection is more bearish than that of Ben Lee, a managing partner at IGamiX Management & Consulting, who foresees a similarly bleak August after July’s disastrous showing.
Despite casinos resuming operations in July, they continue to function under stringent regulations, including caps on the number of employees and customers permitted inside. With travel between Macau and mainland China still curtailed, visitor figures remain severely depressed.
Macaus gambling sector faced a challenging second quarter in 2022, as earnings tumbled universally because of China’s stringent COVID-19 regulations. MGM China endured a 46% drop, while Melco Resorts & Entertainment witnessed a 48% decrease. Studio City, a Melco branch, experienced the harshest blow, concluding the quarter with a $1.9 million deficit. Projecting forward, Studio City predicts that the persistent pandemic will continue to substantially affect their activities, fiscal outcomes, and upcoming outlook for the third quarter of 2022.