Macau’s gaming revenue fell by 9.6% year-over-year in May, totaling MOP18.4 billion (US$2.3 billion), figures from the Gaming Inspection and Coordination Bureau show. This downturn surpassed forecasts from Wells Fargo and Bernstein, which had predicted a decline of 6% to 8%. Despite the overall drop, average daily revenue for May rose to MOP593 million, a 3% increase from April’s MOP578 million, according to Bernstein.
Non-gaming sectors also faced setbacks. Retail sales of watches, clocks, and jewelry declined by 8.7% year-over-year, marking the eighth consecutive quarter of contraction since late 2014. Analysts link the broader slowdown to Macau’s transition from high-stakes VIP gambling to a broader market approach, though upcoming infrastructure projects—including new integrated resorts, are anticipated to fuel recovery beginning in 2016.
Wells Fargo expects June to see a rebound of 1% to 7%, with daily revenues projected between MOP540 million and MOP570 million. Industry analysts collectively forecast a 3.7% year-over-year gain for the month. Bernstein’s analysis emphasizes that enhanced transport connections and expanded resort capacity will support sustained growth throughout the decade.
Legislative hurdles remain for a proposed total smoking ban in casinos. The Legislative Assembly committee reviewing a revised tobacco control bill has rejected a full prohibition, prompting the government to adopt a more flexible position. Last year, authorities had proposed eliminating smoking lounges on mass gaming floors, but current discussions suggest these areas may remain, even in VIP sections. Bernstein describes enforcement risks in the medium term as limited.
Labor shortages continue to strain casino operators. Wynn Palace, scheduled to open in early August, has faced difficulties securing sufficient foreign workers, particularly for housekeeping roles. Macau’s Human Resource Office has tightened renewal policies for blue cards, temporary permits for foreign employees, especially in managerial positions. The shift prioritizes hiring locals, with over 80% of managerial roles and 77% of all casino staff now Macanese. Casino-specific positions are now 96% filled by local workers.
