With everything being lockdown due to the emergence of COVID-19, the world is facing tough times and this has caused problems to gambling world. The world’s largest gambling market Macao which saw a drop of 79.7% in revenue is looking for small signs of hope and so it seems it is here. In most of the US states where there is almost complete drop in revenue, it was still less than 100% for Macao and the revenue generated was $664 million. However, in recent times, the situation are improving even if it is in relative terms, visitors are gradually returning to the resorts in Asia, hence, this may be the better place to look for an industry recovery.
And for the companies operating in Asia, Macao could be the trailer of what can we expect in the U.S market, thereby, becoming the constant and steady force for casino stocks.
How Macao return to the market will be closely examined
In March, the gambling revenue in Macao dropped to 79.7%, whereas in February the fall in revenue was 87.8%, which was also due to a 15- day shutdown of resorts. And now as the situation is getting better, at least on a relative basis, we can hope that Macao casinos won’t be in complete loss from March to till everything get sorted. This will also help the industry to get back on the tracks.
During difficult times, when the companies go into survival mode, whatever cash they are going to generate will be crucial for them. Companies like Las Vegas and Wynn Resorts are expected to pay $2.42 billion and $1.36 to pay all the expenses respectively.
Now Macao will play a great part by generating revenue for these companies, and it is able to do so then it could be building a small bridge to the future and show that as a sign of recovery in the United States gambling industry.