Macau Casino is in recent days working hard in a bid to recover from the loss of millions of dollars the gaming resort has lost in the past couple of years. However, according to financial analysts, the resort’s efforts may not be able to hold any water at all because $146 billion, the aggregate amount that the gaming complex lost in only four years is a lot of money.
How Is The Macau Casino Working On Recovering From $146 Billion Loss?
Many observers and interested parties have a feeling that even if the resort puts in reasonable efforts, it may be hard to make real money online casino gambling sites.
They say this because history has it that any gambling club in the area, whether small or big that has lost huge sums of money has never fully recovered. Read the article Macau Casino Revenues Hit $2.4 Billion, Making November The Region’s Best Month.
Various market commentators from Barron to Bloomberg assert that from what gambling complexes report on their end-year and start-year revenue collections, there is still a challenge of revitalizing the gaming resort.
Those commentators say that many international gaming companies that have established their gambling projects in Macau recorded low revenue collections in the last 90 days of 2016 and the situation has been carried on to 2017. Gaming resorts and hospitality sectors are collecting far much less revenue compared to what financial analysts predicted.
To show the real situation on the ground, market commentators as well as financial analysts confirm that Melco Crown and MGM Resorts have fell short of the earnings the resorts had previously collected.
The two gaming centers are just examples. The bitter reality is that most gaming complexes are faced with stiff challenges with regard to very low revenue collections.
According to the Stock Exchange of New York said this week that all international companies, those from the U.S., Wynn Resorts, Las Vegas Sands, and MGM Resorts have all recorded low income in their revenue throughout the week.
For two years since 2014 to 2016, overall gambling stocks recorded a huge decrease of $146 billion; the largest amount of loss in the history of Macau’s gambling history.
Loss Linked To VIP Crackdown On Gambling In Macau
Macau’s loss of billions of dollars is linked to the government’s crackdown on VIP’s junket operators three years ago.
Then, the government commenced an operation that saw gaming companies who had invested so much in the purchase of high rollers and video games, which targeted the elite class.
Because of the crackdown, it was difficult to operate the VIP gaming that targeted those that had money thus developers like Wynn Resorts, Las Vegas Sands, MGM Resorts and others would not realize their investment.
The administration in this communist republic ensured that it controlled all the money and how it could flow with the target being VIP gambling. Because of that, Macau’s revenue collection from gambling shrunk from $45 billion, the industry recorded in 2013, to a meager $28 billion three years later in 2016.