April was a tough month for operators in Macau, judging by recently released figures by the Gaming Inspection and Coordination Bureau.
GGR in April Hits $335M, Lowest since September 2020
Last month, the gross gaming revenue (GGR) in Macau hit MOP$2.68 billion ($335 million), according to newly released data. This marked a record low value for GGR since the start of the year. Moreover, the result marks the lowest GGR for the industry since September 2020. In contrast to the MOP$2.68 billion in GGR for April, during March, GGR was MOP$3.67 billion ($454 million).
Additionally, a year-on-year comparison for April shows that GGR decreased by 68.1%. In April 2021, GGR was MOP$8.40 billion ($1.04 billion). Similarly, the result from March 2022 wasn’t good as well, considering that in March 2021, GGR hit MOP$8.30 billion. This year, GGR in March halted at MOP$3.67 billion, down 55.8% when compared to the same period in 2021.
Without any doubt, GGR in March and April hit rock bottom. In January, GGR in Macau was MOP$6.34 billion ($784 million), while in February this year it hit MOP$7.76 billion ($960 million). In January 2022, GGR was 20.9% lower when compared to January 2021, but the result from February marked a 6.1% increase when compared to February 2021.
April’s GGR doesn’t come as surprise, considering that a report released last month, predicted a drop in gambling revenues. Bernstein analysts report released late last month, pointed out that between April 11 and April 28, a 25% drop in GGR was seen. This reaffirmed that the results in April may be the worst for the gambling industry in Macau since the pandemic-impacted 2020.
The Gambling Industry Is on the Road to Difficult Recovery
Cumulatively, since the start of the year, GGR in Macau was MOP$20.4 billion ($2.52 billion). For the same period in 2021, GGR was MOP$32.0 billion ($3.96 billion). When compared to the result from 2021, GGR this year decreased by more than 36%. The latest result reaffirms that the gaming industry in Macau may face a difficult recovery. Since the start of the year, it looked like the industry had started its economic rebound. But the results from March and April confirmed the industry may need some more time to recover.
More than two years after the start of the pandemic, various restrictions continue to impact the gaming industry in Macau and China. Besides restrictions, reduced traveling also contributed negatively to the GGR result Macau has seen in April.
The recent crackdown on junket operators undoubtedly had its effect on GGR too. After Macau started the crackdown late last year, leading gambling operators severed all ties with junket operators. Junkets undoubtedly brought millions in proceeds for gambling operators before the government decided to put an end to the profitable practice.