Typhoon Mangkhut Crushes Macau Casino Revenue in September

The Macau casino market generated $2.73 billion in September, which is their lowest total of the year. And much of the blame can be attributed to Typhoon Mangkhut. This typhoon formed in Asia on September 7 and reached Macau in the middle of the month. The destructive force has killed 69 people and caused more […]

The Macau casino market generated $2.73 billion in September, which is their lowest total of the year. And much of the blame can be attributed to Typhoon Mangkhut.

This typhoon formed in Asia on September 7 and reached Macau in the middle of the month. The destructive force has killed 69 people and caused more than $1 billion in damages in China.

Mainland China and Hong Kong are currently trying to clean up the mess. Macau, on the other hand, is mostly dealing with the financial impact.

The local government called for the island’s 42 casinos to close ahead of Typhoon Mangkhut. This is the first time that the casinos have closed since Macau began issuing gambling licenses in 2002.

Little Actual Damage Caused in Macau

While the casinos can’t be happy about lost revenue, the good news is that the island mostly escaped without serious damage.

Power was knocked out in 21,000 homes and 40 people were injured. The island also lost out on an estimated $186 million in gambling revenue.

Visitors stopped coming to Macau shortly before the typhoon hit on Sept 15. Union Gaming analyst Grant Govertsen discussed the impact of this:

“With the benefit of hindsight, and in the context of the damage in Hong Kong being much more severe than in Macau.

“We believe the period of time that was needed to get casinos back to normal extended well beyond the Monday morning re-openings.”

Economic Impact Felt Across Macau Gambling Industry

Macau can be happy that nobody died in the typhoon, and the island suffered less damage than other parts of Asia. The biggest impact, though, was felt on the financial side.

The local casinos generated $3.3 billion in August, which was the highest monthly total of the year. However, this amount fell to $2.73 billion in September – marking a 17.3% drop from month to month.

Govertsen expects revenue to climb to $3.5 billion in October, which would mark a dramatic increase from what was experienced in September.

 

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