Macau’s Gaming Sector To Grow By 15 Percent In 2022 Says IMF
- IMF projects a growth rate of 15 percent in 2022
- Issuance of new gaming licenses will boost growth
- New gaming bill gets past first round of approval
Macau’s gambling industry has faced a tough couple of years as COVID-19 and policy changes have significantly impacted the overall gross gaming revenues (GGR) in the peninsula. Just as things were getting back to normal in late 2021, the omicron variant showed up and has once again slowed down Macau’s gaming industry.
However things are expected to get better slowly but surely based on the recent predictions from the International Monetary Fund (IMF). The IMF has told government officials in Macau that they expect GGR’s to increase by 15 percent in 2022.
Estimate Is Based On Certain Predictions
The IMF pointed out that its estimate of a 15 percent growth in 2022 was based on several factors. Two of the most important factors that will contribute towards this projected 15 percent growth is the return of foreign tourists and how quickly domestic demand recovers.
While a 15 percent prediction does not seem bad in the light of how things currently are in Macau, those numbers are not impressive. Macau is currently dealing with the decline of its VIP gambling sector after junket operators took a hit in late 2021 when Alvin Chau, head of Suncity Corp was arrested for promoting cross-border gambling which is banned in China.
Macau’s VIP sector will take time to recover and this is one of the main reasons why the growth aspect and recovery of Macau’s casinos is expected to slow down this year as Macau has depended heavily on its VIP gambling clientele and junket operators in the past.
New Gaming Bill Gets Past First Round
Macau legislators have also tabled a new bill that looks to make significant changes to existing gambling regulations. The draft bill was reviewed on 24 Jan and after a two hour debate got approval from the Legislative Assembly with a 30-1 vote.
The new bill will allow current license holders to renew their gaming licenses for a period of 10 years and also hold them account to a new set of corporate social responsibilities. Now that the bill has past the first reading, it will be examined by a working committee who will then recommend whether the bill needs to be amended and finally issue a report.
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