News from the casino industry in Macau over recent weeks has revealed that recovery from the pandemic is still proving difficult. Formerly the world’s largest gambling market, Macau now looks to be in a precarious position with many commentators concerned about the future.
Revenue Under PressureNovember 2021 revenue figures showed that only $834 million was brought into the coffers from gamblers. This was a 55% increase from October, the worst performing month of 2021, but still 70% down from November 2019 before Covid-19 hit the world.
More worryingly, pre-Covid-19 figures from 2019 already showed the worst year-on-year drop off since 2016.
While Las Vegas has pulled off a stunning turnaround over the last few months, Macau doesn’t look anywhere close to being ready to start it’s own comeback. Increased travel restrictions in the region over new variant fears are firmly keeping a lid on industry performance and new regulations concerning licenses and day-to-day running also threaten the long-term future of Macau’s casinos.
A proposal to install government staff to observe daily operations sits alongside an idea to shorten the validity of all casino licenses, portrays a bleak future for those with money invested in the gambling industry.