In a significant rebound for the gaming industry, Macau’s casinos have reported an impressive increase in gross gaming revenues (GGR) for August. The Gaming Inspection and Coordination Bureau (DICJ) provided figures showing that revenues reached MOP$19.8 billion (US$2.47 billion), marking a year-on-year increase of 14.8% and a 6.2% rise compared to July’s figures.
Nearing pre-pandemic levels:
This recent surge in gaming revenue is drawing Macau closer to the financial performance observed before the pandemic struck. The revenues achieved 81.5% of the GGR recorded in August 2019, which stood at MOP$24.3 billion (US$3.03 billion). According to Asia Gaming Brief, this resurgence is a beacon of positive momentum for an industry that faced unprecedented challenges during the global health crisis.
The growth in August is not only a sign of recovery but also reflects seasonal advantages. The month benefited from a calendar packed with five Fridays, five Saturdays, and four Sundays, providing more “weekend” days compared to July’s twelve. This increase in weekend days traditionally correlates with higher visitor turnout and gaming activity.
However, the path to recovery is being met with new challenges. Recent crackdowns by both mainland and Macau authorities on illicit money exchange operations have introduced a degree of uncertainty. These regulatory measures aim to curb illegal activities but have had a ripple effect on the market dynamics.
As Inside Asian Gaming reports, Vitaly Umansky, an analyst at Seaport Research Partners, commented on the situation, stating, “We believe this crackdown round is having some negative impact on money flows into Macau and certain individuals have postponed their visits to Macau.”
He anticipates that these challenges will continue to affect GGR in the short term, but also expressed optimism that the market would stabilize, noting, “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 broader timeframe, Macau’s GGR from January through August 2024 accumulated to MOP$152.1 billion (US$18.9 billion), which is a substantial 33.4% increase compared to the same period last year. However, this figure still trails the pre-pandemic levels by 23.3% from 2019, indicating that while the recovery is robust, it has yet to fully return to pre-COVID norms.
Analysts from Morgan Stanley were reportedly somewhat conservative in their August projections, foreseeing a modest month-over-month increase. The actual results surpassed these expectations by 5.23 percentage points, demonstrating a stronger-than-anticipated market performance. “Year-on-year, the August results also performed better, with a difference of 5.76 percentage points compared to the 9% predicted by the investment banking company,” the analysts noted.