Macau's Full-Year Gambling Revenues Dip For First Time

(RTTNews) - Macau, the world's largest gambling hub, recorded its first-ever drop in full-year gambling revenues in 2014, hurt largely by China's anti-graft campaign and sluggish economy.

Gambling revenues for the full year 2014 fell 2.6 percent to 351.5 billion Macau pataca ($44.1 billion). December posted a record 30.4 percent drop in revenues from last year, the seventh consecutive monthly decline in 2014.

Gaming revenues in September dropped 11.7 percent from a year ago, October slipped 23.2 percent and November recorded a 19.6 percent decline, data from Macau's Gaming Inspection and Coordination Bureau said.

Macau, once a Portuguese colony, is one of the world's richest cities and its economy heavily dependent on gambling and tourism. It is the only place in China where gambling is legal. In 2013, Macau raked in seven times the gambling revenues of the Las Vegas Strip.

Macao has witnessed spectacular growth since 2001-end after the Chinese government ended a monopoly in the industry and allowed several international gaming companies to open resorts. The government also liberalized its travel policies and allowed more of its citizens to visit Macao and other parts of the world.

However, the sector has been under pressure since Xi Jinping, Chinese President and General Secretary of the Communist Party, started an anti-graft campaign targeting ministers, party and state-owned company officials after he came to power late 2012. This campaign has also shooed off high-stake gamblers from Macau.

The Chinese government now wants Macau to diversify its economy and expand sports and tourism fields while limiting reliance on casino revenues. Revenues from Macau's casino contributed over 80 percent of the government's annual revenue last year.

Moving ahead, industry analysts expect the downward trend to continue and predict the decline to continue until mid-2015.

Shares of big-shot casino resort operators dropped, while the Hang Seng Index closed up 1.1 percent today. Wynn Macau closed down 3.7 percent on the Hong Kong stock exchange, while Galaxy Entertainment stocks slipped 1.8 percent. Sands China lost 1.2 percent, while Meco Crown closed 2.7 percent lower.