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Macau October gambling revenue falls 23.2 percent
Tuesday November 4,2014 : MACAU SUSTAINS BIGGEST DROP IN REVENUES IN ITS HISTORY
October gambling revenue falls 23.2 percent.
The offshore Chinese gambling island of Macau confirmed analyst fears Tuesday, reporting revenues down 23.2 percent in the worst month yet since records were initiated in 2005.
The previous record drop was in January 2009, when revenue fell 17.1 percent in the aftermath of a global credit crisis.
The serious decline has now lasted for five months and has been attributed to China's crackdown on corruption and its slowing economy.
Official statistics released Tuesday showed that revenue fell to 28 billion patacas (US$3.51 billion) from 36.5 billion patacas a year earlier The fall is greater than the 20 percent expected by most analysts.
Macau made US$45 billion in gambling revenue last year, a figure that is unlinely to be maintained for 2014.
“The revenue will remain very weak for the next few months, we expect November and December to also be down quite a bit,” said Aaron Fischer, a Hong Kong-based analyst at CLSA Ltd.
In a JPMorgan report late last month, analysts commented:
“As the scope, magnitude and length of [the Chinese anti-corruption] campaign turns out to be wider, deeper and longer than anticipated, the scrutiny and social pressure from the austerity drive could make it increasingly difficult for one to visit Macau.”
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