Macau has now suffered a full year of declines in monthly gaming revenue, which is bad news for the multiple Las Vegas casino companies with major operations there.
Figures released Monday by Macau’s Gaming Inspection and Coordination Bureau show that, compared with one year earlier, gross gaming revenue in the Chinese gambling hub dropped 37.1 percent to about $2.5 billion in May. That marks the twelfth straight month of year-over-year declines in monthly gaming revenue.
Macau has been hit hard by a government-led crackdown on corruption, which analysts say has kept away a lot of high rollers responsible for much of the region’s financial success. Las Vegas Sands, Wynn Resorts and MGM Resorts International operate resorts in Macau, so they’re particularly affected by the downturn.
A report from Union Gaming Group noted that May was the fourth straight month of “broadly similar” gaming revenue figures. The report cited this as evidence that a “baseline has clearly been established.”
“However, we acknowledge that trends could still be choppy for some number of months to come before we see any breakout to the upside,” the report said.
The yearlong slide hasn’t halted the expansion plans for Sands, Wynn or MGM Resorts. All three companies are constructing new resorts in Macau that should open next year.
For more about Macau's connection to Las Vegas companies, click here.