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Macau Prepares for Financial Gap in 2021, Casinos Unprofitable

3 November 2020, 16:50
Votes: 1

The financial situation in the "Asian Las Vegas" is rather unfortunate. October's 72.5% revenue downfall compared to the previous year is the "best" result since January, while other months have shown even worse cut. According to the latest news on finances, the city expects a budget deficit in 2021, which will be caused by the casinos' revenue decline as a reaction to the global pandemic and lack of tourists.

Macau Prepares for Financial Gap in 2021, Casinos Unprofitable

Being a gambling center of the whole Asia-Pacific region, Macau's financial balance sharply depends on the casinos' revenues. About 80% of the city's budget comes from land-based gambling venues, where 35% goes to Macau's treasury that guarantees economic safety. This fund is usually used to cover unpredicted occasions like natural force majeure events or economic crisis.

In 2019, Macau's casinos received about €31,1 billion in revenues, and the significant amount from this sum went to the city's budget. The governing bodies talk about the 81% downfall by October 2020, which means that Macau's treasury will be the source for about €2.8 billion to cover the recent year balance sheet.

The financial forecast for Macau in 2021

The economic prediction for the upcoming year is also pessimistic. It is expected that Macau will earn €10.2 billion, while the annual spendings are at the level of €10.3 billion. However, some experts hope that changes to the Individual Visit Scheme for citizens from mainland China can change the situation into a positive side. Nevertheless, there is no doubt that Macau's financial balance will depend on the development of the COVID-19 vaccine and its successful appliance as the key feature to opening borders for tourists.

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