In an impressive turnaround for the gambling sector, Macau’s casinos have seen a significant rise in gross gaming revenues (GGR) for August. The Gaming Inspection and Coordination Bureau (DICJ) revealed that revenues hit MOP$19.8 billion (US$2.47 billion), representing a 14.8% year-on-year increase and a 6.2% jump from July’s figures.
Approaching pre-pandemic levels:
This recent surge in gaming revenue is bringing Macau closer to the financial performance seen before the pandemic. The revenues reached 81.5% of the GGR recorded in August 2019, which was MOP$24.3 billion (US$3.03 billion). According to Asia Gaming Brief, this recovery is a positive sign for an industry that faced unprecedented challenges during the global health crisis.
The growth in August not only signals recovery but also reflects seasonal advantages. The month benefited from a calendar filled with five Fridays, five Saturdays, and four Sundays, offering more “weekend” days compared to July. This increase in weekend days typically leads to higher visitor turnout and gaming activity.
However, the road to recovery is not without its obstacles. Recent crackdowns by mainland and Macau authorities on illicit money exchange operations have introduced a level of uncertainty. While these regulatory measures aim to combat illegal activities, they have had an impact on market dynamics.
Vitaly Umansky, an analyst at Seaport Research Partners, believes that these challenges will continue to affect GGR in the short term. However, he remains optimistic about the market stabilizing, stating, “However, we expect the crackdown to soften and liquidity in Macau to be not significantly impacted in the medium term.”
Comprehensive yearly growth:
Looking at the bigger picture, Macau’s GGR from January to August 2024 totaled MOP$152.1 billion (US$18.9 billion), marking a substantial 33.4% increase from the same period last year. Despite this impressive growth, the figure still falls short of pre-pandemic levels from 2019 by 23.3%, indicating that while the recovery is robust, it has not fully returned to pre-COVID norms.
Analysts from Morgan Stanley were reportedly conservative in their August projections, anticipating a modest month-over-month increase. The actual results exceeded these expectations by 5.23 percentage points, showcasing a stronger-than-anticipated market performance. “Year-on-year, the August results also outperformed, with a difference of 5.76 percentage points compared to the 9% predicted by the investment bank,” the analysts noted.
