As high-rollers flee, Macau’s bad year is turning out to be not just another blip in the history of China’s sole legal gambling hub

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Macau’s gaming revenue will swing from 14 per cent growth in 2018 to a decline of 3 per cent in 2019, according to analysts surveyed by Bloomberg

They predict a mild improvement of 3 per cent in 2020 on easy comparisons with this year’s low levels

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A cleaner wipes down a gambling table just before the opening of the new Sands Casino in Macau on 18 May 2004. Sands is the first American operator of gambling facilities in the Chinese Special Administrative Region (SAR). Photo: AFP

Bloomberg

Published: 10:39am, 10 Dec 2019Updated: 8:28pm, 10 Dec 2019

Two decades after Macau returned to Chinese rule, a shift that catalysed its emergence as the world’s biggest gambling hub, casinos are facing serious obstacles to their future growth.

Macau casinos are poised for the first decline in annual gaming revenue since 2016, and next year may not be much better as China’s economy slows and rising Asian hotspots such as Vietnam lure high rollers. Macau, which celebrates the 20th anniversary of its handover from Portugal this month, is facing its biggest challenges since a Chinese government crackdown on corruption five years ago.

The enclave relied on by operators including Las Vegas Sands, MGM Resorts International and Wynn Resorts for the bulk of their revenue will find it difficult to return to the double-digit growth pace of the past.

“All of the juice has been squeezed out of the orange,” said David Bonnet, a contributing analyst at Bloomberg Intelligence. “Macau is starting to resemble more mature competitive markets such as Las Vegas and Atlantic City.”

Analysts surveyed by Bloomberg forecast on average that Macau’s gaming revenue will swing from 14 per cent growth in 2018 to a decline of 3 per cent in 2019. They predict a mild improvement of 3 per cent in 2020 on easy comparisons with this year’s low levels.

As high-rollers flee, Macau’s bad year is turning out to be not just another blip in the history of China’s sole legal gambling hub

Macau’s gaming revenue will swing from 14 per cent growth in 2018 to a decline of 3 per cent in 2019, according to analysts surveyed by Bloomberg They predict a mild improvement of 3 per cent in 2020 on easy comparisons with this year’s low levels

Macau’s gaming revenue will swing from 14 per cent growth in 2018 to a decline of 3 per cent in 2019, according to analysts surveyed by Bloomberg

They predict a mild improvement of 3 per cent in 2020 on easy comparisons with this year’s low levels