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The casino floors are seeing less action, and the VIP-player dominated market continues to see lukewarm figures. VIP players account for nearly half of Macau’s total casino-gaming revenue, yet the previous two months have seen less frequent action. Although the 2018 World Cup started in June, Macau’s slow GGR growth already started in May of this year, leading to the fact that sports betting is not the sole reason for stagnation. U.S. casino operators have steadily been shifting their shares and betting big in Asia’s largest gambling enclave due to weaknesses at home. Wynn and Las Vegas Sands both receive more than 50 percent of their revenue from Macau and MGM Resorts International has stated that nearly 21 percent of its revenue comes from the region. Just this past February, MGM Resorts International debuted a $3.4 billion property in the region, serving as competition with the Las Vegas Sands’ Parisian and Wynn Palace. Despite big investments, a recent proposal by Chinese authorities to allow for gambling on a nearby island has also left some uncertainties over Macau’s future and dominance over the gaming market. Statistically, this is not the first time that Macau’s casinos have experienced financial turmoil. A corruption probe in 2014 sent revenue down to a five-year low, from which the region’s IRs have slowly bounced back, but the investors fear that the new slump in numbers could leave a lingering impact if the trend continues. Financial analysts DS Kim and Sean Zhuang agree that Macau’s June GGR is a combined result of slow seasonality due to the summer holiday as well as the negative impact of the World Cup.
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