It is a well-known fact that Macau’s economy is closely intertwined with the state of the gambling industry. In recent months Macau’s economy continues to be negatively influenced by the decreasing revenue stream coming from gambling taxes.
Data made public on Monday shows Macau’s gambling revenue to have plummeted by 26.4% in the last quarter of the year, as compared the last year. The Financial Times asserts that the economy of Macau is actually 50% based on income streaming from the gambling industry.
This fact leads to the assumption that, if the winds don’t change soon, Macau will be looking at a big capital problem. Also according to the Financial Times, the situation in Macau is not novel, with the last 5 quarters seeing decreasing earnings from the said industry.
One reason for this drop can be due to China’s incessant squelching of corruption, including illegal gambling, as well as the overall slowing economy of the country.