The decline in average gross monthly casino revenue to less than 20 billion patacas (US$2.5 billion) last August led to the Macau government’s decision to immediately apply measures to control public spending, indicates an official statement.
Economy and Finance Secretary Lionel Leong announced on Tuesday the first austerity measures, whereby all public services must freeze 5 percent of budgeted expenditures for goods and services, besides cutting subsidies to autonomous bodies with budget surpluses.
With these measures the Macau government hopes to obtain savings of 1.4 billion patacas (US$175 million).
In August the gross revenue of Macau’s casinos fell for the 15th straight month, amounting to 18.623 billion patacas (US$2.327 billion), 35.5 percent less than the August 2014 figure of 28.876 billion patacas.
From January through August gross revenue was 148.882 billion patacas, down 36.5 percent from the 250.377 billion patacas recorded in the same period of 2014.
In accumulated terms and except for January, when year-on-year revenue variation was -17.4 percent, all other months recorded declines ranging between 30 and 40 percent.
In 2014 the gross revenue of Macau’s casinos fell by 2.6 percent to 351.521 billion patacas (US$43.940 billion), the first negative annual variation since the sector was opened to more than one concessionaire.
At the end of the first six months of 2015 Macau counted 35 casinos run by 6 concessionaires: Sociedade de Jogos de Macau (20), Galaxy Casino (6), Venetian Macau (4), Melco Crown Jogos – Macau (3), Wynn Resorts – Macau (1) and MGM Grand Paradise (1), altogether containing 5,814 gaming tables and 14,192 slot machines. (Macauhub/MO)