The World Cup is one of the most profitable occasions for betting shops across Australia – but, some gambling operators will experience a lull in activity. According to the Sydney Morning Herald, James Packer’s Melco Crown could experience a drop in revenue over the course of the next month due to punters spending more time away from the gaming floor and more time in pubs watching World Cup matches.
Of the six major casino operators in Macau, Melco Crown saw the largest decline on the stock market over the course of the past few weeks. From the end of May to June 10, the casino operator’s share price dropped to by 13%. SJM Holdings and MGM China saw similar declines, worth 12.5% and 11.% respectively.
Analysts believe that that drop is due to grow concern from investors over the fact that punters will be too busy watching World Cup matches to play pokies and other casino games. Players will also likely choose to spend more of their gambling funds wagering on football matches over playing baccarat or roulette.
Last year, casino revenue in Macau dropped by 5% to 10%, as casino regulars were spending more time at pubs cheering on their favourite football team. Another major concern from investors is the recent crackdown on UnionPay at Macau casinos. The removal of these debit machines will certainly restrict the amount of money that players at these casinos will be able to gamble with.
The smoking ban that will come into effect in October may also cause a decline in growth for local casinos. Still, Macau remains the most profitable and fastest-growing casino capital in the world. While the World Cup, UnionPay crackdown and smoking ban will certainly have a negative effect on growth, Macau will certainly continue to thrive in the worldwide land-based gambling market.