VIP revenues continue to decline in Macau

State of Macau casinos in 2019Far ahead of Las Vegas, Macau has established itself as the true gambling capital of the world. This status is largely due to VIP players who don’t hesitate to bet a fortune on their favorite tables, particularly Baccarat. However, for several years now, VIP revenues at Macau casinos have been declining, and this decline was confirmed once again during the last three months of 2019.

Fortunately for the local gambling industry, this decline is offset by an increase in consumer revenues, which was also confirmed in the last quarter.

 

The consumer sector is on the rise

On Thursday, January 16, 2020, the Gaming Inspection and Coordination Bureau (DICJ) released figures for the Macau casino industry for the fourth quarter of 2019. It was revealed that, during this period, total gaming revenue amounted to 72.3 billion patacas (8.14 billion euros).

VIP player revenues accounted for 44.8% of total revenues, reaching 32.3 billion patacas (€3.6 billion). This represents a 23.1% decrease compared to the same period in 2018, but a slight increase compared to the 31.1 billion patacas earned in the third quarter of 2019.

Representing a 55.2% share of total revenue, the general public’s income reached 39.84 billion patacas (4.4 billion euros), which represents an increase of 8.3% compared to the last quarter of 2018.

>>> Also read:  » Macau’s casino sector still down in November « 

A decrease observed throughout 2019

Overall, Macau’s gambling establishments recorded a 3.4% decline in annual revenue in 2019. This is the first time they have experienced negative growth after positive years in 2017 and 2018. Although revenue was generally negative throughout 2019, the poor results can also be explained by temporary visa restrictions encountered during December. It was during this last month of 2019 that revenues recorded the most significant drop, reaching 13.7%.

While revenues declined last year, gaming offerings increased, with the number of gaming tables up 151 compared to 2018, reaching 6,739 available in Macau casinos. The same goes for the number of slot machines, which increased by 1,000 to 17,009.

 

The true gambling capital of the world

Despite a 2019 marked by a decline in Macau’s casino revenues, the local gambling industry remains the most lucrative internationally. The region boomed in 2002, when foreign companies were allowed to launch huge casino-oriented entertainment complexes comparable to those in Las Vegas.

From then on, the colossal projects multiplied. Today, Macau has around thirty gambling establishments. Among the most famous are the Venetian Macau, the City of Dreams, and the Galaxy Cotai, for example.