(Bloomberg) — Macau’s gaming revenue fell 2% in December, missing analysts’ expectations as scrutiny over gambling activities tightened during Chinese President Xi Jinping’s visit to the world’s biggest casino hub.
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Gross gaming revenue reached 18.2 billion patacas ($2.3 billion) for the month, according to data released by the Gaming Inspection and Coordination Bureau on Wednesday. That compared with the median analyst estimate of a 2% year-on-year increase, and is still 20% lower than the pre-pandemic level in 2019.
The December figures bring the city’s total gaming revenue for 2024 to 226.8 billion patacas, up 24% from the year before and returning to 78% of the 2019 level.
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Xi’s three-day visit to Macau — his first since 2019 — that ended Dec. 20 means security checks tightened significantly during the time, denting sentiment among frequent gamblers and big spenders from China, which is the biggest source of the city’s tourism spending.
In a speech during his visit, Xi urged Macau to continue its economic diversification, boosting policy support and investment to cultivate new industries with international competitiveness. He spoke after swearing in Sam Hou Fai as the chief executive of the former Portuguese colony on the 25th anniversary of its return to Chinese rule. Previously president of Macau’s top court, Sam has warned against the outsize influence of the gambling business and called for reducing the city’s reliance on the industry, echoing Beijing’s long-held request.
China’s crackdown on high rollers to curb capital outflow has accelerated the decline of Macau’s VIP gambling sector, which before Covid contributed about half of the city’s gaming income. As a result, casinos are rolling out more conferences and entertainment events to attract mass-market tourists to make up for the loss.
Analysts expect gaming revenue to return to 82% of the pre-pandemic level next year, with income from the mass-market sector growing to 118% of the 2019 level, while the VIP sector may still be down 60%.
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