It has been long expected that November’s gross gaming revenue figures over in Macau would be down, and possibly quite noticeably too, and with the release of those figures it has been reported that such revenues have indeed fallen during last month by some 8.5%.
The downturn in business at Macau casinos is two-fold, first there is the current and ongoing trade war between the U.S.A and China still rolling on with no end in sight, and the protests in Hong Kong are keeping high rollers away too.
Gross gaming revenue had also been down in October, but by only some 3.2%, and November’s dismal figures mark the seventh month of the year in which income had dropped when compared to the same time last year.
Many companies are going to see their annual profit margins being squeezed by those income drops, and as such companies such as MGM Resorts International, Wynn Resorts and Las Vegas Sands Corp are all expected to start looking at ways to address those reduced profit margins, possibly in their U.S market sectors.
However, there are some signs that the home grown U.S. gambling market place is going to have a very good year, which is down to the increase in sportsbooks that have been opened in many U.S. States this past year, with many casinos reporting significant improvements in the gross gaming figures thanks to them now being able to offer their customers betting facilities in their venues.
Unless the trade war between China and the U.S.A is sorted out, 2020 does look set to be another year when all gambling related companies in Macau are going to continue to feel the pinch, and that in turn will inevitably see them looking at ways that they can go about cutting costs.
