Coronavirus collapse carries on in Macau

The over 40 casinos in Macau are reportedly forecast to see their aggregated gross gaming revenues for April fall by as much as 13% month-on-month to something in the region of $395.76 million.

According to a report from Inside Asian Gaming, this prediction appeared in a Monday filing from global investments research firm Sanford C Bernstein Limited as China continues to enforce a range travel restrictions so as to help stop the local spread of coronavirus. The source detailed that this news will be disappointing as the former Portuguese enclave’s casino market saw its aggregated gross gaming revenues for March chalk up a decrease of 55.8% year-on-year to a little over $454.9 million.

Spring slump:

Sanford C Bernstein Limited analyst Vitaly Umansky reportedly explained that March had seen Macau record its lowest aggregated gross gaming revenues since September of 2020 when the finishing figure had come in at a very disappointing $273.9 million. He purportedly went on to declare that this more recent decline will more than likely continue well into May as mainland visitation falls due to China’s maintenance of coronavirus-related travel and border controls.

Limited legitimacy:

To make matters worse and Inside Asian Gaming reported that the government of Macau recently reduced the validity period of negative coronavirus tests for those entering from mainland China from 48 hours to 24 hours. Local officials purportedly disclosed on Sunday that this contraction will likely remain in place for the foreseeable future despite the fact that the city of some 682,300 people has not recorded a positive infection since March 3.

Volatile view:

However, Umansky reportedly divulged that Macau’s estimated average aggregated daily gaming revenues for the first ten days of April actually increased by roughly 3% versus the last week of March to something like $12 million, which nevertheless equated to a drop of 64% year-on-year. The expert purportedly went on to warn that this tally could swiftly stall should either China or the enclave’s government implement any further coronavirus travel restrictions.

Reportedly read a statement from Umansky…

“The economic pressure has been increasing and the experience battling against a new round of outbreaks in Hong Kong and Shanghai has been painful. We believe that these may eventually lead to the Chinese government into re-evaluating or modifying its zero-coronavirus strategy.”

Quarterly quandary:

Through the first three months of 2022 and Macau has so far reportedly chalked up aggregated gross gaming revenues of approximately $2.21 billion, which is 24.5% below the about $2.93 billion it recorded for the first quarter of last year. This first-quarter result is purportedly the city’s lowest in well over a decade and could well result in its year-end tally being far below the preceding twelve-month period’s $10.76 billion reckoning.