If June’s revenue numbers are any indication, Macau’s casino industry is continuing to struggle. Recently released statistics show that Macau’s total casino revenue is down more than 35% from this time last year. These dwindling revenue numbers come as a surprise, mainly because Macau has received plenty of stimulus cash from European investors.
James Packer, a Dutch billionaire who built his vast fortune through movies and gambling, believes that Macau’s casino industry will begin posting bigger profits in coming quarters. His confidence in Macau’s world-class casinos is not supported by the Deutsche Bank.
The Deutsche Bank is currently predicting that Packer and his company, Crown Resorts, will not earn as much during the second half of 2015. This is because Crown Resorts has funneled so much money into various gambling complexes in Macau.
Dutch Banking Analysts Discuss Macau Further
One of the reasons why Dutch banking analysts believe Macau-based casinos will continue to struggle is that fewer well-heeled gamblers are visiting Macau on vacations and business trips. Dutch bankers told reporters that high-stakes gambling has been reduced by more than 50% during the past 6 months.
Gambling analysts speculate that fewer rich gamblers are visiting Macau because the Chinese government eliminated much of the corruption that permeated the island’s casino industry previously. This corruption supported the richest gamblers.
Reasons for Optimism in Macau
Despite the rather grim revenue forecast, James Packer believes that there is reason for optimism in Macau. China has relaxed their visa requirements for wealthy gamblers who plan to vacation in Macau. This revamped policy suggests that politicians in Beijing are committed to helping Macau repair its tarnished image.