Macau casino revenue falls below pre-pandemic levels and analysts' expectations
Macau, once a gambling mecca for international travelers, is struggling to recover from the COVID-19 pandemic. The SAR has been very strict when it comes to pandemic protocols, including casino closures, travel restrictions and the introduction of quarantine. Macau continues to struggle to reach pre-pandemic revenue even as analysts expect the region to earn even more at this point, even as it sees monthly growth through gaming revenue. Casino game sales hit $3.34 billion ($415 million) . The month was up 25% , but still well below previous totals, according to a report from the Office for Game Inspection and Coordination. May is down 68% from the same month . May was the second lowest month since Macau reopened its borders to mainland Chinese citizens . The worst month was in April before that. May could see a slight increase in total due to Golden Week, but it was still only 64% figure. Analysts are changing their outlook for next year as the region continues to post lower-than-expected earnings. Deutsche Bank analysts expect to bring in $9.78 billion this year. This is lower than the $9.82 billion previously estimated. Casino operator debt expected to exceed $25 billion this year As Macau struggles to gain ground, operators' debt is expected to reach more than $25 billion by the end of the year. This increase is related to ongoing travel restrictions in SAR. Morgan Stanley analysts see operators continue to increase debt as travel policy related to coronavirus remains in place. A report by Morgan Stanley says net debt could rise if travel restrictions are not eased soon. Macau officials have been very strict on COVID-19 protocols. If the virus poses a threat to the region in the neighborhood, more restrictions will be introduced. Macau once suspended global travel to prevent sponsors from mainland China and Hong Kong from visiting for fear of spreading the virus. Macao played a big role in avoiding the virus, but it had the disadvantage of low travel and significantly reduced income for casinos. Attention is focusing on whether restrictions will be eased or whether travelers will once again visit casinos in gambling cities. Even when restrictions were eased in the past, travelers were not able to find it due to a 14-day long quarantine period, but it remains to be seen whether Macau will show a strong recovery or low profits due to regulations.