Macau gaming revenue drops 68% in May

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On the day Chinese authorities lifted COVID-19 restrictions in Shanghai, the Macau Gaming Inspection and Coordination Office reported another sharp decline in gross gaming revenue for the month of May.

The bureau that monitors gaming revenue for Macau’s 41 casinos – including several owned and operated by three Las Vegas-based companies – reported revenue of $413,496 in May, a 68% drop from $1.292 billion. dollars reported in May 2021.

For the first five months of 2022, revenue fell 44% to $2.945 billion from $5.258 billion a year earlier, the bureau reported.

The special administrative region continued to be affected by public health policies related to the COVID-19 pandemic. Borders with Macau have been closed intermittently for the past two years, and community closures have been reported in some communities on the Chinese mainland, including Shanghai, a major financial and technology hub of around 25 million people. inhabitants.

As of Wednesday morning, most Shanghai residents are free to leave their communities, shops and office buildings can reopen, cars are back on the streets and subways and buses resume service, the Associated Press reported. .

Analysts believe it will be some time before the reopening of communities translates into increased visits to Macau.

Macau’s gambling numbers are particularly significant for three Las Vegas companies, Las Vegas Sands Corp., the region’s market leader with six properties, Wynn Resorts Ltd., with three resorts, and MGM Resorts International, which partners with casino entrepreneur Pansy Ho on two properties. .

Las Vegas Sands reached a $6.4 billion deal on Feb. 23 that transferred ownership of the company’s Las Vegas holdings — The Venetian, Palazzo and Venetian Expo Center — to Apollo Global Management Inc. That makes Sands dependent of his Macau and Singapore properties as he explores domestic deals in Texas, New York and Florida.

Sands said revenue from its Macau operations was down 29.1% from $777 million in the first quarter of 2021 to $551 million in 2022. The totals include revenue from the six properties as well as the Hong Kong-Macau ferry operation that Sands runs.

Sands announced Tuesday that it will bring its annual Sands Shopping Carnival back to The Venetian Macau from July 21-24. The four-day carnival, sponsored by Sands China Ltd. and the Macau Chamber of Commerce, is the largest sales event in Macau and will feature 580 stalls. Since its debut in 2020, the event has attracted 210,000 visitors.

MGM in early May reported that its first-quarter casino revenue in Macau fell 12%, from $262 million in 2021 to $231 million this year.

Wynn Macau operating revenue was $135.1 million for the first quarter of 2022, a decrease of $44.6 million or 24.8% from $179.7 million for the first quarter 2021.

The property’s adjusted cash flow was -$4.7 million for the first quarter of 2022, compared to $16.6 million for the first quarter of 2021. The VIP table games gain as a percentage of revenue was 3.84%, above the property’s expected range of 3.1% to 3.4%. and above the 3.25% recorded in the first quarter of 2021. The table game win percentage in mass market operations was 17.5%, slightly lower than the 17.8% recorded in the first quarter of 2021.

The Review-Journal is owned by the Adelson family, including Dr. Miriam Adelson, majority shareholder of Las Vegas Sands Corp., and Patrick Dumont, president and chief operating officer of Las Vegas Sands.

Contact Richard N. Velotta at [email protected] or 702-477-3893. Follow @RickVelotta on Twitter.

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