New | Macau February casino revenue halves on lacklustre Lunar New Year

February casino revenue in Macau halved from a year ago, the biggest drop on record and the ninth straight month of decline, despite the Lunar New Year holiday, a peak period in which mainland gamblers usually show up in spades.

Gross gaming revenue sank 48.6 per cent to 19.54 billion patacas, the largest drop in the five years the city’s Gaming Inspection and Coordination Bureau has collected data.

It is the longest slump for the world’s largest gambling enclave as the anti-corruption drive and visa changes keep away high rollers while smoking restrictions on mass floors deter casual bettors.

The unprecedented decline of Macau’s gambling revenue paralleled a fall in Hong Kong’s retail sector. Both depend heavily on mainland Chinese tourists. Hong Kong retail sales slumped 14.6 per cent in January over a year ago, the worst since the Sars outbreak in April 2003.

Last week, analysts slashed their forecasts from about a 40 per cent decline in gaming revenue down to 50 per cent year on year after initial holiday data showed business was weak.

“Such abysmal peak-season performance points to large-scale junket closures post-Lunar New Year which will result in further sequential deterioration,” Daiwa Capital Markets gaming analyst Jamie Soo said.

Junket operators, who act as middlemen to lure VIPs to casinos’ high-stakes rooms, have been forced to consolidate, as VIPs shun the former Portuguese colony.