SBC News Voice of the Sports Betting Industry
Japanese trading house Nomura Holdings, has predicted that Macau’s gambling industry could suffer an 8% year on year decline in 2016. Entering Q4 2015, the province’s casino industry is witnessing a 30% slump in gross gaming revenues.
If Nomura’s prediction becomes a reality, Macau gambling would enter its third year of consecutive year-on-year revenue decline.
Asian financial analysts appear downcast on a recovery for Macau’s gambling sector, as Nomura predicts Macau to be further impacted by devaluing of the Chinese Yuan.
Issuing a statement Nomura predicts a further 5% decline to GGR of MOP18 billion [US$2.25 billion], retuning Macau’s gambling sector to 2008 global financial crisis levels.
Nomura’s downbeat forecast is in contrast to European bank Credit Suisse, who have stated that the worst may be over for Macau’s gambling sector.
In March a Macau census detailed that province has recorded a 13.5% decline to 2.4 million visitors, recording its lowest figures since September 2007.
Entering Q4 2015, Macau analysts have stated that China’s week long National Day holiday (1-7 October) will be a firm indicator of the sectors future performance. Major hotels like Galaxy, Melco Crown and Wynn Macau are reportedly all fully-booked, but it remains to be seen if these visitors will be spending time at the gaming tables.
Chinese government officials have advised Macau operators to diversify their offerings in order to make the province more appealing to the general public and to stop its reliance on gambling as the main economic driver for the region.
