Macau's casino revenues from gambling plummeted by nearly 70% in May

The world's largest gambling hub, the Chinese administrative region of Macau, is facing severe financial turmoil due to massive losses at local casinos. Unemployment in the city's gaming sector has reached its highest level since 2009, according to a report by Reuters.
Media reports indicate that the regional gambling market has recorded one of its worst monthly revenues since September 2020. In May, Macau's casino revenue from gambling plummeted by 68% compared to the same period last year.
"We are the most tourism-dependent city in the world. Of course, we haven't had other industries to rely on. It's important to remember that we haven't diversified in 20 years. This won't change overnight. There is no quick fix," said Glenn McCartney, a professor at the University of Macau.
As the only place in China where gambling is legal, Macau heavily relies on casino taxes, which account for over 80% of the government's revenue. The region's dependence on gambling became starkly apparent at the onset of the COVID-19 pandemic, when attendance at local gaming establishments dropped by 80% compared to the same period in 2019 due to travel restrictions.
China's efforts to curb capital outflows and combat the opaque junket industry have also contributed to declining gambling revenues. The reduction in spending and rising economic losses are evident throughout the small city, home to over 600,000 residents, affecting sectors such as retail and industrial and commercial services.
According to the latest government data, the unemployment rate among local residents has risen to 4.5%, up from 1.8% in 2019. Citing a challenging business environment and bleak prospects for the gaming sector, Emperor Entertainment announced it would close its casino on June 26. Reports suggest that at least seven other similar establishments are expected to cease operations by mid-year.
The Macau government has urged casinos, which employ tens of thousands of locals, not to lay off staff. Instead, some operators have opted not to renew employment contracts or have offered unpaid leave or bonuses in lieu of full salaries.
The Macau Economic Association has stated that the local business climate index is expected to remain "poor" for the next three months.
In related news, Atlantic City casinos are set to hold a large job fair.