Posted on: August 1, 2024, 08:21h.
Last updated on: August 1, 2024, 08:21h.
Macau’s six casino operators last month combined to win MOP18.6 billion (US$2.31 billion) from gamblers in the Chinese Special Administrative Region (SAR).
The city’s gaming regulator — the Gaming Inspection and Coordination Bureau — reported that July gross gaming revenue (GGR) climbed nearly 12% year-over-year. The month marked a 5% gain from June.
July was Macau’s fourth-best gaming month so far in 2024 behind May ($2.5 billion), March ($2.42 billion), and January ($2.4 billion).
While July maintained Macau’s gaming industry recovery momentum, the month’s GGR represents just 76% of the July 2019 revenue when the casino concessions collectively won more than $3 billion.
Through seven months, Macau casino revenue stands at $16.46 billion, about 37% better than where the industry stood at this time last year. Compared with pre-pandemic 2019, however, the haul remains 24% lower.
In Line With Forecasts
The consensus among analysts forecasting July GGR initially projected revenue of around MOP19 billion. Midway through the month, analysts downgraded their outlooks on slower-than-expected business, with JP Morgan issuing a forecast of MOP18.5 billion.
Macau’s many resorts continue to ramp up their mass-market advertising after VIP junket groups fled the region and took the high rollers that they had brought to the city for decades along with them. The junket exodus came after China instructed the Macau SAR Government to more closely monitor the movement of cash from the mainland to the tax haven.
While downtown Macau casinos on the peninsula have long targeted the general public, most of the glitzy five-star luxury resort properties on the Cotai Strip have not.
Casinos last month were ordered to stop giving out so many freebies to gamblers, including free drinks and snacks, after local businesses reported a downtown in sales. Unlike in Las Vegas where free drinks, including booze, are typical, Macau has traditionally only offered such perks to high rollers in private rooms.
Choppy Year
It’s been a mixed story this year in Macau, the only place under Chinese control where slot machines and table games are permitted.
After a strong start with January GGR of $2.4 billion, up 67% year-over-year, February win slowed to $2.29 billion. Gaming bounced back in March and then slowed again in April to GGR of $2.3 billion.
The industry roared back in May with its best month in 2024 before slowing in June to $2.2 billion, its lowest tally of the year to date. June is traditionally a slow month in Macau because it follows May’s Golden Week celebration when millions of mainlanders are given a week off from work and go on holiday.
Seaport Research Partners, which provides analyst coverage on Macau, is predicting a “slight increase” in GGR in the third quarter before a more significant 5.5% improvement in the fourth quarter. The realized results, the brokerage says, will be dependent on “operating costs, player reinvestment, July trends, August outlook, and impact of money flow crackdown.”
