Macau’s Business Continues Declining

The offshore Asian online casino, Macau is unfortunately still experiencing rough times. The website’s revenues fell again for the third month in a row, which means that their year to date revenue is down 5.8 percent from last years numbers. The total revenue is still high, at 7.65 billion patacas but the steady decline in business has executives and investors alike very concerned for the future of their online casinos. Beijing’s new restrictions on mainland visits and the credit crunch from the past seven months may be to blame for the decline in business for the online casino. High rollers were getting money lent to them from VIP junket agencies in hopes of bringing the revenues of the Macau online casino back up to where it needs to be.

Not all online casinos have been affected by the declining global economy. It seems that Macau’s business was once the highes earning online casino in its region. The average monthly loss for the online casino was 7.8 billion patacas and that was just for the last four months of 2008. The company is now down 20 percent from the high revenues of January through August which totaled 9.7 billion per month. Even though their monthly numbers are down dramatically, their yearly revenues for 2008 are up to 108.76 billion patacas which is a 31 percent increase from the previous year. The 2007 total yearly revenue was 83.02 billion patacas, which is significantly less than the revenue the online casino achieved in 2008.

The heads of the online casino have many reasons for the decline. One reason that they released as a possibility is that the month of December had one less Saturday in it than it did last year, which would affect the revenue gained slightly. The online casino hopes to take the new year and turn things around