Macau Casino Revenue Climbs 44 Percent in 2021, But Industry Remains Unsettled
Macau casinos fared significantly amend inward 2021 than they did inwards 2020. But the world’s richest play market place noneffervescent has far to spell to issue to pre-pandemic levels. a slew of unsettled issues and regulatory matters personate considerable threats to such a rebound.
Macau’s Gaming Inspection and Coordination Bureau — stylized DICJ inward Lusitanian — relayed this morning that porcine gaming revenue (GGR) totaled MOP86.86 one million million (US$10.82 billion) inward 2021. The cart represents a 43.7 percent on 2020.
December GGR came inward at $991.5 million, a 1.8 percent year-over-year improvement. 2020 and 2021 marked the Macau gaming industry’s two worst revenue years since 2006.
Macau is a Special Administrative Region of the People’s Republic of China.
Casino Shares Drop
Macau’s Captain Hicks licensed commercial casino operators are go under to view their concessions expire in June. That, along with the COVID-19 pandemic and the recent trade stoppage on VIP junket groups led by mainland authorities, resulted inward a mass sell-off of Macau cassino stocks inwards 2021.
Many of those concerns linger as the new year begins.
We trust uncertainness remains regarding the concession outcomes, as easily as exact recovery post-COVID and the secular wane inward VIP play, which mold our conservativist stance,” noted Jefferies psychoanalyst St. David Katz.
Two of the troika US-based Macau gambling casino operators experienced deep portion reductions lastly year. Las Vegas Sands dropped from $57.95 to a 2021 come together of $37.64 — a red of 35 percent. Wynn Resorts went from $106.90 a divvy up to $85, a to a greater extent than 20 percent decline.
Other publically traded Macau casino stocks went the wrongfulness way, too. Melco Resorts tumbled 43 percent and Galaxy Entertainment missed 33 percent.
MGM Resorts, which isn’t nearly as reliant on Macau, was a uncommon 2021 winner inward the world-wide gaming industry. Shares of the Las Vegas Strip giant that operates ii structured resorts inward Macau saw its inventory pass over 51 percent from $29.70 to $48.88.
2022 Critical Year
The recent hegira of VIP junket groups, which for years kept Macau’s high-limit common soldier gaming rooms bustling, has added unsettlement to the Chinese gaming industry. But unity major care — the licensing expiration — of late gained some clarity.
Macau Secretary for Economy and Finance Lei Wai Nong said inwards mid-December that the 6 licensees testament potential receive new operating permits before their stream concessions are set to terminate inwards June.
The unfermented permits testament be allotted below revised gaming regulations. Sir Thomas More stringent tracking of cap from the mainland through Macau casinos is expected, and VIP junkets being a thing of the past times is a goodness bet.
Casino reps feature verbalised optimism regarding Macau’s next circle of regulatory conditions, despite the likely liquidation of junket groups as they’ve long been known.
Macau Chief executive Ho Iat Seng opined in conclusion hebdomad that the local governing expects the vi casinos to gross around MOP130 one thousand million ($US16.2 billion) in gaming revenue next year. That sound projection is based on COVID-19 remaining contained.
Morgan Sir Henry Morton Stanley gaming analysts say that’s potential a fleck ambitious. The financial services loyal said inwards December that it expects casino win to summate around $15 1000000000 this year. 2019 GGR totaled $36.4 billion.