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Poker has become one of the most popular casino games around in the last decade. Much of the new found fame of the game can be attributed to the World Poker Tour and the other televised poker broadcasts. Regardless, poker is the game and you and everyone else are the players.
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Profits from Macau’s casino industry is expected to show an epic collapse when first-quarter earnings are released.
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According to a Bloomberg survey of market analysts, the six operators in the world’s largest gaming market will combine for a 95 percent drop from Q1 of 2019.
The survey concluded that the operators are already posting year-over-year declines in their EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) as they are about ready to release earnings reports in the coming weeks.
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The freefall highlights the damage that the coronavirus has had on the brick-and-mortar gambling industry. Macau experienced a 60 percent drop in gaming revenue for the first quarter of 2020 and an 80 percent dip in March after it shut down its casinos for 15 days during China’s near peak of infections in February.
Even though most of the casinos were operating with 80 percent of its tables open the following month, the country’s government was strict on its travel restrictions. The issuances of travel visas were frozen and tourism in the former Portuguese colony fell 71 percent from a year ago.
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China has yet to announce a date when the freeze on tourist visas will be lifted. A government official told Bloomberg that it will be lifted at an “appropriate time.”
Many different agencies, including the International Monetary Fund, are projecting a contraction in Macau’s economy. The IMF is predicting a 29.6 percent contraction in the economy in response to the changes coronavirus has had on the gambling market.