Macau’s casino industry opened 2021 with a 63.7% revenue decline in January, but analysts quickly sounded a positive note, saying the monthly total of $1 billion was almost a 3% increase over December.
Macau is coming off its lowest overall gaming revenue total in 14 years due to the COVID-19 pandemic that decimated the market economically throughout 2020.
Las Vegas Sands, Wynn Resorts, and MGM Resorts International are U.S. companies with casino operations in Macau, which has been considered the world’s largest gaming market in terms of gaming revenue.
The Gaming Inspection and Coordination Bureau said Monday the January total was Macau’s 12th straight monthly revenue decline, but business continued to reflect a rebound despite COVID-19 testing requirements.
The pandemic first surfaced in Macau in January 2020, halting the region’s Chinese New Year celebrations, which are considered the busiest weeks for gaming and visitation annually in Macau, the only legal casino destination in China. During the year, Macau casinos collectively experienced six straight months of 90% or more gaming declines that ended in October.
In February 2020, Macau casinos were closed for 15 days. Analysts have pointed to an improved potential this month which includes Chinese New Year, although the government has asked that public celebrations be curtailed.
For all of 2020, Macau casinos collected $7.56 billion in gaming revenue, a decline of 79.3% from 2019 when casinos produced $36.6 billion in gaming revenues.
The last year that Macau casinos collected less than $10 billion in gaming revenue was 2006 – four years after the government ended the gaming monopoly in the former Portuguese colony and opened the market to U.S. based casino operators.
Macau’s record year for gaming revenue was $45 billion in 2013.
Howard Stutz is the executive editor of CDC Gaming. He can be reached at hstutz@cdcgaming.com. Follow @howardstutz on Twitter.
