The gross gaming revenue forecast for Macau casino concessionaires has been cut by S&P Global Ratings as the institution cited the surge of COVID-19 cases in its report, which was published yesterday (Thursday, July 7).
Casino GGR Will Reach $1.08 Billion at Most, According to S&P Global Ratings
S&P Global Ratings stated that with the latest developments, the GGR of the casino concessionaires will be MOP87.74 billion ($1.08 billion) at most, which is 20%-30% of the GGR in the pre-pandemic era. In 2019, casino concessionaires recorded MOP292.46 billion in GGR ($3.6 billion).
The statement also shared a few details concerning the liquidity of the concessionaires. It stated that they have “18 to 20 months of liquidity” even if a zero-revenue scenario occurs.
Earlier this year, an analysis conducted by JP Morgan analysts was focused on SJM Holdings and ufa888 it concluded that the concessionaire is running low on funds.
Original insights into the market revenue for 2023 stated that the GGR of the concessionaires in Macau will be 80% of the pre-pandemic levels. However, that number has also reduced as S&P Global Ratings noted that the revenue that the casinos will reach will likely be 50-70% of the GGR of 2019.
Macau’s June GGR Was Pretty Bad
June GGR of Macau concessionaires reached MOP2.48 billion ($310 million) which is the worst number since September 2020. Compared to the May GGR, which was MOP3.34 billion ($413 million), the June GGR is down 25.9% and additionally, the GGR was 62.1% lower than June 2021.
Even though July has barely started, many are convinced that his month will be no better as the number of tourists who are staying overnight and are visiting the casinos will reduce. One of the main reasons why is that hotels at casino resorts in Macau are being used for quarantine purposes.
Lau Fong Chi, a Macau Government Tourism Office official, stated that 470 rooms at the Grand Lisboa Palace (SJM Holdings) and 300 rooms at Grand Hyatt Macau’s B1 Tower (Melco Resorts and Entertainment Ltd.) will now be now used as quarantine rooms for people that test positive for COVID-19.
Sheraton Grand Macao (Londoner Macao resort) and the Parisian Macao hotel are also used for the same purposes. Grand Lisboa will be used as a quarantined hotel until at least July 11 as it was locked down on Tuesday after 13 people at the premises tested positive for COVID-19. Back in May, Macau’s Legislative Assembly Second Standing Committee discussed the possibility to help casino concessionaires boost their GGR by giving them tax breaks if they manage to bring foreign customers to gamble on their premises.
