Please ensure Javascript is enabled for purposes of website accessibility

Macao Casino Revenue Plunges Another 93% in May

By Rich Duprey – Jun 1, 2020 at 7:44AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Gambling revenue has fallen 80% or more for four straight months due to the COVID-19 pandemic.

Casinos operating in Macao saw revenue plunge another 93% in May as China maintained travel restrictions to the region due to the coronavirus pandemic. However, it was better than the 95% drop analysts had been expecting after seeing a 97% decline in April.

The Gaming Inspection & Coordination Bureau reported casinos generated just 1.7 billion Macanese patacas, or $221 million, in May. So far in 2020, gambling revenue of 33 billion patacas is down 74% from last year, though last year's total was down slightly from 2018.

Macao skyline at dusk

Macao remains mostly dark during the pandemic. Image source: Getty Images.

Gambling ghost towns

Wynn Resorts (WYNN -0.36%) has been the most affected by the decline in tourism in Macao, which has been virtually shut down since February. The integrated resort operator generates approximately three-quarters of its adjusted earnings before interest, taxes, depreciation, and amortization from Macau. 

Las Vegas Sands (LVS 0.15%) is also heavily exposed to the city, generating over 60% of its adjusted EBITDA from there. MGM Resorts (MGM -0.03%) still realizes most of its profits from the U.S., though Las Vegas closures have essentially caused it the same sort of problems. Most resort operators are planning to reopen at least some of the Vegas Strip casinos starting this week, but gamblers likely won't return in any appreciable numbers for some time there either.

 

Rich Duprey has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

MGM Resorts International Stock Quote
MGM Resorts International
MGM
$29.98 (-0.03%) $0.01
Wynn Resorts, Limited Stock Quote
Wynn Resorts, Limited
WYNN
$66.56 (-0.36%) $0.24
Las Vegas Sands Stock Quote
Las Vegas Sands
LVS
$39.72 (0.15%) $0.06

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
327%
 
S&P 500 Returns
105%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/28/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.