Good Morning. The Great Recession beginning in 2007 squashed a widely held belief that casinos are largely immune to economic downturns. Now, just as the industry is looking towards better times as it reopens from Covid, recession is once again looming. Andrew Klebanow of C3 Gaming looks at how the 2007 recession affected casino projects across the globe and assesses what the impact might be this time around. It’s early days, with plenty of unknown variables, but data from the U.S. holds hope that we’re not looking at a repeat of the dark days of 15 years ago.
What you need to know
- The Macau government has ordered the closure of all non-essential businesses from July 11th, shuttering its casinos for the second time in three years.
- The Thai public has shown overwhelming support for a proposal for legal casinos, seemingly clearing a potential stumbling block to gambling regulation.
- S&P expects Macau Y22 gaming revenue at 20% of Y19, draws worst case scenario for 2023, as the Covid outbreak clouds recovery prospects – downgrades Melco, SC.
- Lotte Tour Development said it expects the Jeju Dream Tower property to generate $69.2 million in revenue for 3Q22, up 72% from 2Q22 as tourists return to the island.
On the radar
- Macau new Covid infections rise, but pace of growth slows.
- Grand Hyatt, Grand Lisboa Palace added to Macau quarantine hotels.
INDUSTRY VOICE: Andrew Klebanow
As countries in east Asia begin to welcome pandemic weary tourists, casinos outside of Macau have begun to resume normal operations. Cautious optimism has, nonetheless been tempered by fears of a global recession, fueled in large part by inflation, and the impact that these economic factors could have on the gaming industry’s recovery. Andrew Klebanow of C3 Gaming notes that, up until 2007, it was largely believed that casinos were immune to recessions. The Great Recession of 2007-2009 dispelled that belief.
- iGaming Group nets exclusive distribution with Play’n GO.