People wearing protective masks walk in front of the Casino Lisboa, operated by SJM Holdings Ltd., at night in Macao, on March 3, 2020.  (BILLY HC KWOK / BLOOMBERG)

Macao, the world’s biggest gambling hub, is predicting a record drop in gaming revenue this year as casinos in the city deal with the disruption caused by the coronavirus pandemic.

The enclave’s government cut its 2020 forecast for gross gaming revenue to 130 billion patacas (US$16 billion), half the initial projection of 260 billion patacas, according to a statement dated March 19.

That represents a 56% decline from 2019, the steepest slide ever, compared with the median estimate for a 19% dip in a Bloomberg survey of analysts last month.

The revision to the outlook follows a decision by the local administration to suspend casino operations starting Feb 5 for about two weeks in a bid to contain the spread of the disease now known as COVID-19

The revision to the outlook follows a decision by the local administration to suspend casino operations starting Feb 5 for about two weeks in a bid to contain the spread of the disease now known as COVID-19. As Chinese mainland imposed measures to contain the health crisis, the gambling mecca has also seen visitors dwindling as people stayed away for their own safety.

READ MORE: Macao gaming revenue suffers record plunge from virus blow

The pandemic, which has infected over 234,000 people worldwide and killed more than 9,800, has dealt a severe blow to the Macao casinos that were already struggling to recover from a revenue decline last year. Operators including Las Vegas Sands Corp., MGM Resorts International and Wynn Resorts Ltd. rely on the enclave for a bulk of their revenue.

With the virus spreading to other countries, regulators and government officials across the US have ordered casinos to close there as well, adding to the woes of the companies. The epicenter of COVID-19 has now shifted to Europe, which has surpassed Chinese mainland in the number of infections and fatalities.

In Macao, even after the facilities reopened, gaming floors have seen little rebound as the mainland continued to halt individual and group visas to Macao in a protracted fight against the contagion. Macao has barred non-residents outside Chinese mainland from entering the city from March 18.

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US-listed operators with “mostly Macao exposure” have the strongest liquidity position and should recover faster as that region should be up and running the soonest, according to Nomura Instinet gaming analyst Harry Curtis. Chinese mainland’s new domestic cases of the coronavirus have fallen to zero after a two-month battle and the country is now trying to restart its economy.

Macao will use 39 billion patacas of reserves to fill its budget deficit caused by the anticipated reduction in gaming tax income and increased expenses, according to the statement.