Revenue fell to $3.41 billion last month, the Asian gambling hub's first year-over-year decline since the aftermath of the financial crisis. Bloomberg News
HONG KONG—Gambling revenue in Macau fell 3.7% in June compared with a year earlier, handing the Asian gambling hub its first year-over-year decline since the aftermath of the financial crisis.
Revenue fell to 27.22 billion patacas ($3.41 billion) last month from 28.27 billion patacas a year earlier, according to data released Tuesday by Macau's Gaming Inspection and Coordination Bureau. The previous decline in gambling revenue for the Chinese territory was in 2009.
Macau, the only place in China where casinos are legal, has come under pressure this year as slowing economic growth and a corruption crackdown on the mainland cut into business from high-end gamblers.
For weeks, analysts have warned investors to expect a disappointing June; some expected a decline of as much as 5% in revenue for the month.
The Venetian Macao resort and casino on May 6. Bloomberg News
The potential for a prolonged drop in VIP revenue has spooked investors this year and sent stocks across the sector to double-digit percentage declines. The Hong Kong-listed Macau businesses of Wynn Resorts Ltd. WYNN +0.13% and MGM Resorts International MGM -0.30% are down 14% and 19%, respectively, so far in 2014, a sharp comedown for stocks that were for years among the world's best performers. The stocks didn't trade Tuesday because of a holiday in Hong Kong.
Even the most bullish analysts have warned of serious risks to Macau's VIP gambling business, which drives two-thirds of the territory's $45 billion gambling industry.
Gaming-focused research house Union Gaming in early June downgraded the sector to hold, its first bearish call since starting coverage in early 2011. "We absolutely love Macau but it's time to move to the sidelines," the firm said in a note to clients.
Write to Mia Lamar at mia.lamar@wsj.com