The Gaming Inspection and Coordination Bureau of Macau have released information regarding the city's casinos financial performance in June. According to the reports, the gross gaming revenue has dropped 8.5% in June. The drop in revenue last June is the 25th consecutive month wherein there is a drop in revenue of Macau casinos. It is reported that the proceeds from gambling venues has reached its worst month yet since 2010.
Analysts were hoping for a better performance, especially since slots and mass market have performed decently with certain digits in growth. Macau has long been dependent on the gambling industry, with an estimated 80% of Macau's tax revenue coming from gaming venues. Macau is the only Chinese territory where casino gambling is legal.
The gaming revenues of Macau gambling venues has grossed MOP107.8 billion during the first six months of this year, which reflects an 11.4% drop on a year-over-year basis.
Chinese President Xi Jinping created an anti-corruption campaign in 2013 that targets high profile politicians and business personalities who have political connections. This anti-graft campaign has led high rollers from the mainland to avoid Macau and its casinos. The loss of this particular group of gamblers has had a great impact in the revenue of casinos, with the damage mostly attributed to the anti-corruption campaign.
With an outlook of a 2017 recovery being unlikely, in a bid to recover, gaming operators are now looking to mass-market players and international tourists.