MK soprts-Bull Market Observation | Are A-shares attracting both people and money? Macau’s gaming industry is experiencing its biggest cold snap in four years

The global gaming industry’s operating revenue is declining, with the situation in Macau being the most severe.

        According to the latest revenue report released by the Nevada State Gaming Control Board, Nevada’s gaming revenue in October this year was nearly $914 million, a decrease of nearly $41 million from the same period last year (year-on-year), a decline of 4.26%; while from July to the end of October this year, its operating revenue fell by 3.29% year-on-year. In addition, Singapore’s casinos have also experienced a shortage of guests.

        However, the situation of Macau’s gaming revenue is the most serious.

        According to the latest data released by the Macau Gaming Inspection and Coordination Bureau, from the perspective of monthly operating income, Macau’s gaming has been declining for six consecutive months since June this year compared with the same period last year. The decline from June to August was within 10%, with a decrease of 11.7% in September, a decline of 23.2% in October, and a decline of 19.6% in November. This is the largest decline in Macau since relevant statistics began in 2010.

        Sands China and Galaxy Entertainment have had dismal results this year as Macau’s gaming revenue fell for the sixth straight month, according to Bloomberg. Previously, the influx of mainland tourists made Macau the world’s largest gambling center and the two gaming stocks rose more than 500% in the past four years.

        The most obvious reason for the “disappearance” of gamblers and funds from various gambling venues seems to be that mainland gamblers are afraid of anti-corruption investigations and chasing the rise of A-shares.

        Bloomberg quoted Tai Hui, chief market strategist for Asia at JPMorgan Asset Management, as saying that customers who once lingered at the gambling tables have turned to the mainland stock market, with investors engaging in margin trading and short selling, borrowing funds from securities firms to trade stocks using funds or securities as collateral.

        “Consumers who once bet at the gaming table may now be sitting at home trading stocks, and investors are increasing leverage on margin trading, or using a knife to cut down a big tree,” he said.

        He also said that at this time, Macau is tightening the “transit visa” for mainland tourists and cracking down on illegal cash withdrawals in Macau using UnionPay terminals.

        According to a report by the Macau Daily on December 4, Li Fei, deputy secretary-general of the Standing Committee of the National People’s Congress, made a suggestion to Macau on December 3: For the benefit of the motherland, Macau must develop a diversified economy.

        Li Fei said: “The dominance of Macau’s gaming industry is not in the overall interests of Macau. Moreover, Macau’s economy, especially the gaming industry, is closely linked to the mainland. This means that when measuring Macau’s overall interests, we cannot only focus on Macau’s economic growth rate and tax revenue, but must also take into account the economic and social security, stability and development interests of the mainland and the entire country.”

        Li Fei said that the gaming industry has controlled the lifeline of Macau’s entire economy, which is definitely not conducive to the stability of Macau’s economy, society and even government operations; secondly, the market for Macau’s gaming industry mainly lies in overseas tourists, and the dominance of the gaming industry has increased the uncertainty of Macau’s economic development; thirdly, the gaming industry has squeezed the survival and development space of other industries, which is not conducive to the diversified development of Macau’s economy and society; fourthly, the inherent negative factors of the gaming economy affect the social stability and security of Macau and even the mainland.