The rich Chinese autonomous region of Macau is a gambling haven for Asia and is dependent on the gambling industry. However, the coronavirus has all left its mark on its livelihood. This is because the Macau April Revenues are Down by 97% in comparison to the previous year.
According to online casino reports, the Macau Gaming Inspection and Coordination Bureau said they took in $95 million last month. Thus, in comparison to last year, this is a drop in the bucket as in April of 2019, they made $3 billion in the revenue.
Macau is Ready to Survive the Coronavirus Crisis
While this is bad news for the casinos and in the gambling industry in Macau, they can survive this ordeal. This is because unlike many of its counterparts around the world, casinos in Macau do not have any sizeable debts. In fact, the largest casinos in Macau have large amounts of cash available to them from when they earlier years.
For example, Macau’s Galaxy Entertainment is currently spending $3 million per day for their casino operating cost. However, Galaxy Entertainment said they have $6.8 billion in cash reserves made from the previous year. Many casino forums believe this a large risk to keep their casinos open while they have any money coming on. Nevertheless, with such large cash reserve, they can continue operating for several months with zero revenue coming in.
Not many casinos in Macau can compare to Galaxy Entertainment in terms of their cash reserves. However, Sands China, MGM China and several other casinos are still able to operate without any revenue for 6-24 months.
Even though casinos in Macau are currently open, overall revenues are down by 80%-90%. This is because of travel restrictions and health regulations in Macau. Thus, the number of daily visitors went from 100,000 per day to 200 per day.
Some industry experts believe Macau could earn more revenue if online gambling were available to them. This is because live dealer casinos and other internet casino games are on the rise because people of social distancing.