Market Overview

BofA Cuts Macau Estimates After 97% Year-Over-Year Drop In Gross Gaming Revenue

BofA Cuts Macau Estimates After 97% Year-Over-Year Drop In Gross Gaming Revenue

Macau reopened casinos to guests, but gross gaming revenue was still down 97% year-over-year in June — and down 59.4% month-over-month — to MOP716 million ($89.67 million), according to BofA Securities. 

The Macau Thesis: Macau's June GGR was lower than expected, as BofA was expecting an 80% year-over-year decline and the consensus estimate called for a 95% decline, analyst Billy Ng said in a Wednesday note. 

The month-over-month fluctuation could be due to the VIP win rate, as the gaming volume is mostly generated by a small group of players, the analyst said. 

July's GGR is likely to remain down 90% from last year assuming the border rules remain unchanged, he said. 

As it stands now, visitors from mainland China and Macau need to quarantine upon entry. Progress is being made on some agreement that would lift the quarantine for people from Guangdong province and Hong Kong, but it is proving to be more difficult than expected.

Due to limited visibility on when quarantine orders can be lifted, BofA expects full-year 2020 GGR to be down 70% year-over-year in Macau, worse than a prior estimate of a 41% drop. 

This assumption includes a first stage of reopening for business travel only in August and no full border normalization before 2021.

Related Links:

More Las Vegas Casinos Reopen, Demand 'Still Appears Low'

Majority Of Americans Believe Marijuana Use Just As Moral As Gambling


Related Articles

View Comments and Join the Discussion!

Posted-In: Billy Ng casinos Coronavirus gamblingAnalyst Color News Global Analyst Ratings Best of Benzinga

Latest Ratings

APAB of A SecuritiesMaintains23.0
COPB of A SecuritiesMaintains46.0
CXOB of A SecuritiesMaintains65.0
DVNB of A SecuritiesMaintains18.0
EOGB of A SecuritiesMaintains64.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at