Macau casinos’ gross gaming revenue (GGR) increased by more than 686% in August from the previous year to MOP17.2 billion patacas ($2.17 billion), according to the latest report by the Gaming Inspection and Coordination Bureau (DICJ). August’s total was also up from the GGR posted in July, which stood at MOP16.7 billion ($2.1 billion).
Accumulated revenue stands at MOP114 billion ($14.1 billion), which accounts for about 87.7% of the government’s annual target of MOP130 billion ($16.09 billion). Due to the ongoing recovery, at a recent Legislative Assembly session, Chief Executive Ho Iat Seng told lawmakers that the goal had the potential to rise to MOP180 billion by the end of the year.
The latest figures represent about 71% of pre-pandemic levels, driven by increased tourism levels during the summer vacation period. The city reported 2.8 million visitor arrivals in July, which has returned to 78% of pre-Covid levels, according to the latest official data.
Casino operators haven’t been affected by China’s economic slowdown, as the richest 1% of the country’s residents are still traveling and spending on entertainment as usual, Morgan Stanley analysts including Praveen Choudhary wrote in a report, citing operators.
However, casino operators remain cautious about September, with gaming revenue typically falling 9% month-on-month following the summer break boost, according to Morgan Stanley.
Macau’s six casino operators bounced back strongly from last year’s Covid lows and their combined profit of $1.7 billion in the second quarter was 68% of the 2019 levels. But the second half of the year will test the industry’s resilience as China’s economic uncertainties endure, while the resumption of group tours to a raft of countries may also mean Macau faces competition in enticing visitors.
Macau has been pushing to diversify its economy away from gambling, and the casino sector is reducing its reliance on high rollers from mainland China after Beijing cracked down on capital outflows. Casino operators have committed at least $13 billion over the coming decade to develop non-gaming industries, and have been hosting more concerts and conferences this year to draw in more mass market tourists and business visitors.