The world’s go-to gambling destination is emerging from the ashes like the legendary phoenix.
Macau’s gambling profit margins have increased for the third consecutive month since August. The week-long Golden Week holiday has boosted its revenues due to an influx of tourists. The Gaming Inspection and Coordination Bureau (GICB) has announced that the world’s erstwhile gambling capital is slowly making a profitable comeback.
Macau’s Quarterly Profit Margins Increase
Macau’s GICB’s statistics have presented an increase in gross gambling revenue in the 2nd consecutive month. Macau has achieved an 8.8% increase in annual ROI. It has amounted to 21.8 billion patacas or $2.72 billion. This is Macau’s highest revenue in 21 months.
The GICB has yet to release an official breakdown of the financial particulars. Industry analysts have accounts the high number of visits from VIP tourists and consistent mass-market players have bolstered its revenue during the city’s Chinese Golden Week holiday in early October.
Crown Casino Crackdown is Macau’s Gain
The world’s gambling capital has endured a difficult period. Its ROI has plummeted in the last 2 years due to China’s aggressive anti-graft campaign. Macau’s plunging economy has caused VIP gamblers to avoid the city. Macau has experienced a revenue decrease to 230.8 patacas or $28.9 billion in the previous year.
Macau is finally recovering from its previous losses. The world’s former gambling capital is slowly regaining its profit margin prowess. Arguably, industry observers say that China’s crackdown on James Packer’s Crown Casino VIP marketing operations have benefited Macau. China has detained Crown’s employees for illegal solicitation of high rollers to play overseas.
“Incidents like this one are ultimately a net benefit. As non-Macau companies shy away from VIP activities in China, albeit perhaps temporarily, this should generally accrue to Macau’s benefit,” said Union Gaming Group’s Grant Govertsen.
Will Macau Completely Regain Lost Glory?
Industry analysts have reiterated that Macau’s profit margins are likely to increase every month. The growth rate has not only been consistent but upward as well. Macau’s “Big Six” have show favourable figures in revenue data. These casino operators are Galaxy Entertainment Group Ltd. was 1.9% higher, Sands China Ltd. soared 2.5% and MGM China Holdings Ltd. increased by 3.3%, overwhelming the broader Hang Seng Index, which was up 1.2%.
Macau’s consistent bullish revenue movement is a good start for the city to gradually revive its financial standings. China’s rigid regulations are considered as a challenge that could be turned into an opportunity. Macau will definitely take flight again in the world of gambling.