Brokerage firm Citi issues report on Macau’s gambling revenue
The average daily gambling revenue in the last 7 days was negative 14 million yuan, compared with the average daily gambling revenue of 54 million yuan in the first 14 days of the same month
As China’s travel restrictions on Macau have not yet been relaxed, the gaming market continues to be bleak. Citibank issued a report stating that Macau’s gambling revenue on the first 21 days of June was only 650 million MOP. However it is believed that it is mainly dragged down by the negative factors of the VIP room win rate in recent weeks. Due to the small size of the gaming pool, the relevant gambling revenue will be more volatile, and the situation will carry on until the mainland lifts the restrictions for Macau tourism.
Citibank issued a report stating that Macau’s gambling revenue on the first 21 days of June was only 650 million MOP.
Citi stated that the reduction of gambling revenue in June to 1 billion RMB was equivalent to a year-on-year decline of 96%. And the average daily gambling revenue forecast for the remaining days of June is 39 million RMB, which means that the Macau gambling industry will not benefit from the traditional holiday long weekend in June due to the travel restriction. However, the bank still expects the decline in Macau’s gambling revenue to narrow in the third quarter of this year, as it is estimated that the authorities will have the opportunity to lift travel restrictions in the coming weeks.
Bank of America Securities also issued a report, saying that number of visitors to Macau fell by 99.5% year-on-year in May, similar to the 99.7% decline recorded in April. I believe that under the ‘closed’ measures, June will continue to be weak; it also refers to the normalization of customs clearance Has been slower than expected, and the border is only partially open to people living in Zhuhai province and working in Macau. The bank also believes that a new COVID-19 outbreak in Beijing may delay the normalization of the border between the three places.
Bank of America continued that, in response to the latest epidemic in Beijing, starting from noon on June 17, anyone arriving in Macau from Beijing will receive 14 days of medical observation; Beijing will also implement a series of ‘closed city’ measures on the 16th. Therefore, the bank believes that this may delay the progress of tourism between the Mainland, Hong Kong and Macau to a certain extent.
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