Macau’s gaming revenue slowed in June, impacted by fewer long holidays and cautious spending by Chinese tourists.
Gross gaming revenue (GGR) grew 16.4% year-on-year to 17.7 billion patacas ($2.2 billion), according to the Gaming Inspection and Coordination Bureau. However, this growth fell short of the median analyst estimate of a 17.5% increase and represented a 12.4% decline from May’s figures. The revenue was also 25.7% lower than pre-pandemic levels in 2019.
June is traditionally a slower period for Macau’s casinos, with a dip in visitors following May’s Golden Week holiday. In 2019, June’s gaming revenue was 8% lower than in May. The decline in spending by Chinese tourists, who make up the largest visitor group to Macau, further contributed to the revenue slowdown. Economic uncertainty has led to more cautious spending among these visitors.
Macau saw 2.7 million visitor arrivals in May, about 20% below pre-pandemic levels. June visitor data is expected later this month.
In an effort to attract tourists, casinos have offered incentives such as free snacks, hotel rooms, and transport tickets. However, Macau authorities have recently advised operators to scale back these promotions following complaints from small local businesses.
Consequently, many casinos have limited free snacks to players, which may have impacted footfall but is unlikely to significantly affect gaming revenue, according to Morgan Stanley analysts Praveen Choudhary and Gareth Leung, Bloomberg reported.
Regulatory risks remain a concern for Macau’s gaming sector. In June, China’s Ministry of Public Security pledged to crack down on illegal money exchanges and loan sharks to prevent capital flight. Although the extent of gamblers using these illicit services is unclear, individual money exchangers are commonly seen around Macau’s casinos, indicating ongoing demand.
The Bloomberg Intelligence index of Macau casino operators dropped 9.3% in June, while the Hang Seng Index fell 2%. For the first half of 2024, Macau’s casino GGR reached MOP113.8 billion ($14.2 billion), up 41.9% from the previous year but still 23.9% lower than the same period in 2019.
May’s GGR was the highest monthly total since Macau’s borders reopened in January 2023. June’s slowdown, attributed to limited public holidays like the Dragon Boat Festival on June 10 and seasonal factors including the Euro 2024 football matches, marked the lowest GGR since the beginning of the year.