Macao gaming revenue slumps by 68 percent in May
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On the day Chinese authorities lifted COVID-19 restrictions in Shanghai, Macao’s Gaming Inspection and Coordination Bureau reported another steep decline in gross gaming revenue for the month of May.
The bureau that monitors gaming revenue for Macao’s 41 casinos — including several owned and operated by three Las Vegas-based companies — reported revenue of $413,496 in May, a 68 percent decline from the $1.292 billion reported in May 2021.
For the first five months of 2022, revenue is down 44 percent 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 into Macao have been closed on and off over the past two years, and community lockdowns have been reported in some communities on the Chinese mainland, including Shanghai, a major financial and technology center of about 25 million people.
As of Wednesday morning, most of Shanghai’s residents are free to leave their communities, shops and office buildings can reopen, cars are back on the streets, and subway and buses are resuming services, the Associated Press reported.
Analysts believe it’s going to be awhile before the reopening of communities translates into greater visitation to Macao.
Macao’s gaming figures are particularly important to 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 closed on 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 reliant on its Macao and Singapore properties while it explores domestic deals in Texas, New York and Florida.
Sands reported revenue from its Macao operations was down 29.1 percent 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-Macao ferry operation Sands runs.
Sands on Tuesday announced that it would bring back its annual Sands Shopping Carnival to The Venetian Macao on July 21-24. The four-day carnival, sponsored by Sands China Ltd. and the Macao Chamber of Commerce, is the largest sales event in Macao and will feature 580 booths. Since its debut in 2020, the event has attracted 210,000 visitors.
MGM, in early May, reported its first-quarter casino revenue in Macao fell 12 percent from $262 million in 2021 to $231 million this year.
Operating revenue from Wynn Macau was $135.1 million for the first quarter of 2022, a decrease of $44.6 million or 24.8 percent from $179.7 million for the first quarter of 2021.
Adjusted property cash flow was -$4.7 million for the first quarter of 2022, compared with $16.6 million for the first quarter of 2021. VIP table games win as a percentage of turnover was 3.84 percent, above the property’s expected range of 3.1 percent to 3.4 percent and above the 3.25 percent experienced in the first quarter of 2021. Table-games win percentage in mass market operations was 17.5 percent, slightly below the 17.8 percent experienced 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 Las Vegas Sands President and COO Patrick Dumont.
rvelotta@reviewjournal.com or 702-477-3893. Follow @RickVelotta on Twitter.
