Macau casino gaming revenue fell by a record 30.4% in December, the largest rate of decline in the now seven-month streak of falling revenue. The world’s top gambling hub also recorded its first annual decline since Macau began releasing financial figures in 2002.
Revenue fell to MOP 23.3b (US $2.9b) in December, the lowest monthly tally this year, despite tourist arrivals rising 8% during the Christmas holidays. The VIP gamblers who have been giving Macau a wide berth due to Beijing’s crackdown on corruption found extra incentive to stay away thanks to a mid-December visit to Macau by China’s President Xi Jinping.
Macau’s December to dismember was sufficiently sucky to push 2014’s annual numbers down 2.6% to MOP 351.5b ($44.1b). It’s the first annual decline since Macau ended Stanley Ho’s casino monopoly and international firms were allowed to open their own shops. In addition to Beijing’s interference, the year suffered from comparison with 2013’s record $45.2b haul, which was up 18.6% over 2012.
Macau’s struggles erased around $73b from the market value of casino operators this year, $58b of which has disappeared over the past six months. The decline helped erode nearly $11b from the personal fortune of Las Vegas Sands boss Sheldon Adelson. Macau’s woes are expected to continue well into 2015 and potentially beyond, as Beijing is reportedly taking an even closer eye on financial dealings and pressing Macau to more strictly enforce oversight of casino junket operators.
