February was a dismal month for the gambling industry in the Chinese enclave of Macau. Dubbed the Vegas of the Far East, Macau has long been a favorite for high-stake gamblers and is home to several casinos owned by US gambling groups. However, the COVID-19 (Corona) virus has brought Macaue to a near standstill.
This week, it was reported that the gross revenue of games of chance and gambling in Macau’s casinos dropped nearly 88% in February, and the numbers are not expected to improve in March. According to the Gaming Inspection and Coordination Bureau of Macau, February followed an already poor month of January, which saw gross revenue drop 11.3% year on year.
Macau boasts some 40 casinos, two of which are managed by Wynn Resorts and two by MGM.
Macau has seen a massive drop in visitors since the outbreak of the pandemic in the Chinese city of Wuhan in the Hubei province. The government suspended casino operations for 15 days in the semi-automated territory in a bid to halt the spread of the Corona virus last month. Activities were also halted in all places of entertainment, including night clubs, restaurants, discos and fitness centers.
The Chinese government agreed to allow casinos to resume activities on February 20th, although all patrons and employees need to be strictly evaluated. There are mandatory body temportary checks at casino doors.
However, despite these preventative measures, there continues to be a sharp decline in the numbeer of flights and ferries to and from mainland China. Other countries have cancelled flights into China altogether.
Early last month, the New York Times said that the Chinese government’s decision to suspend casino activities was like “closing the Las Vegas Strip, six times over.”
Gambling accounts for around 4/5th of the Macau government’s revenue, which has no choice but to bear the economic losses for months to come.
