Date
26 May 2017
A stock market rout in mainland China and the end of the summer holiday will have an adverse impact on gaming revenue. Photo: Reuters
A stock market rout in mainland China and the end of the summer holiday will have an adverse impact on gaming revenue. Photo: Reuters

Macau July gaming bump preempts govt austerity plan

Macau gaming revenue rebounded to 18.62 billion patacas (US$2.33 billion) in July from the previous month, saving the enclave from planned austerity measures. 

However, economic and planning chief Lionel Leong Vai Tac said the government will keep a cautious budget management approach amid uncertainty in the gaming industry, the Hong Kong Economic Journal reports.

The government slashed the 2015 budget based on lower monthly revenue estimates of 20 billion patacas.     

Leong said previously that if gaming revenue was less than 18.35 billion patacas in July, the government would launch some austerity measures.

These would include cuts in cash incentives and other public expenditure. 

The July revenue is up from 17.6 billion in June but is 34.5 percent lower than during the same period last year, the 14th straight year-on-year decline.

Revenue was 40.26 billion patacas in the seven months to July, down 36.7 percent from a year ago.

Deutsche Bank estimates August revenue to come in 33 percent lower than last year’s level due to the performance in July, which normally delivers 10 percent revenue growth on average.

The bank is forecasting increased risk in the industry amid a stock market rout in mainland China and the end of the summer holiday.

Both will affect casino player numbers and related services.

[Chinese version中文版]

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