Macau Revenue Decline expected through the end of 2019
Gross gaming revenue is expected to decline by 3% YOY in Macau.
Macau is home to many casinos such as the Casino MGM Macau and Casino Sands Macau. These casinos, as well as others, seem to be having a tough go of late as 2019 is turning out to be weaker than expected with a revenue decline. It is not the first time that the city has gone through a slump so It's nothing out of the ordinary as far as the city is concerned.
Decline in Gross Gaming Revenue
According to a study by Morgan Stanley, gross gaming revenue decline for 2019 is expected to be -3% on a year-on-year comparative bases. This is an adverse change from the initially projected -1%. The decline is due to lower VIP revenue which is predicted to be 17% lower than in 2018. Mass gaming revenue is expected to grow by 10% for 2019 and 7% in 2020.
The expectation is that the decline will have an impact on dividends.
Macau is administrated by the People's Republic of China and has a population of 667,400. Gambling has been legal since it was legalised by the Portuguese government in the 1850s. It has become known as the gambling capital of the world.