Macau has witnessed a notable increase in gross gaming revenue (GGR) in July 2024, signaling a robust recovery and a promising outlook for the remainder of the year. According to the Gaming Inspection and Coordination Bureau (DICJ), the GGR for July stood at MOP18.6 billion (US$2.31 billion), marking an 11.6% increase year-over-year and a 5.1% rise from June 2024.
Key Highlights of Macau’s July GGR:
- Year-on-Year Growth: The GGR for July saw an 11.6% increase compared to the same month last year, showcasing a strong recovery in the region’s gaming sector.
- Month-on-Month Improvement: July’s revenue also experienced a 5.1% increase from the previous month, emphasizing a positive trend in the market.
- Recovery to Pre-Pandemic Levels: The revenue for July represents a recovery back to 75.9% of the GGR levels of July 2019, which was MOP24.5 billion (US$3.04 billion).
Industry Insights and Future Outlook
Analysts from Seaport Research, cited by Inside Asian Gaming, have highlighted several factors that could influence Macau’s performance in the second half of 2024, including operating costs, player reinvestment, and the impact of regulatory measures on money flow. Due to seasonality, the industry expects a slight increase in GGR in the third quarter, followed by a more significant 5.5% rise in the fourth quarter.
Despite some challenges, the overall sentiment remains positive. The market’s recovery is supported by a steady influx of tourists and the easing of previous restrictions. Industry experts anticipate that the upcoming quarters may see continued growth, bolstered by events like the Golden Week in October, which typically attracts a higher number of visitors.
This recovery is crucial not only for casino operators but also for Macau’s economy, which heavily relies on gaming and tourism. The increase in GGR indicates a rebound in these sectors, providing a boost to the local economy and potentially impacting regional economic trends.
CLSA has recently revised its financial projections for Macau’s gaming sector for 2024 and 2025, predicting that Macau’s GGR will see a substantial year-on-year increase of 34% in 2024, reaching US$30.3 billion. For 2025, a further growth of 5% is expected.
Moreover, the biggest operators in this market are rumored to be looking at expanding their businesses in the region by setting their sights on Thailand. According to a recent report, Galaxy Entertainment Group Ltd, Las Vegas Sands Corp, MGM Resorts International, and Wynn Resorts Ltd, operators that are active on the Macau market, are looking to penetrate the Thailand market, which is expected to generate annual gross gaming revenues (GGR) of up to $30.8 billion.