Macau casinos combined had their worst month ever.
According to figures released by the local government of China’s Special Administrative Region, Macau’s casino win reached $49 million in July, the worst performance ever in one month. Macau started reporting casino gambling in 2009.
The amount of $49 million in July is down 98% compared to July 2019.
The restrictions imposed by Covid-19 are to blame for the sharp drop. Casinos reopened on July 23 after a multi-week shutdown in an effort to contain the virus.
Players mostly stayed away from the casinos in the last week of the month. Onerous restrictions remain in Macau, including the requirement to show a negative Covid-19 test.
Shares of Macau casino operators are down nearly 20% since the start of the year. It is said that the casino industry in Macau could see a combined loss of nearly $500 million over the last quarter, which could further drag down casino stock prices.
Macau, the only place in China where legal gambling is located, previously generated gambling revenues that dwarfed what was seen in Las Vegas. The gaming market in Macau recorded a high of $45 billion in 2013. Before Macau’s decline, it was expected in The Wall Street Journal The report stated that in 2017, the size of the gambling market will reach $77 billion.
This never came to fruition due to the restrictions imposed by mainland China on high cylinder activity. For comparison, Nevada sees nearly $12 billion in casino wins annually.