Macau’s Gaming Revenue Reaches 81% of Pre-Pandemic Levels

In a promising sign for Macau’s economic recovery, the region’s gaming revenue has surged to 81% of its pre-pandemic levels, showcasing robust growth since reopening. According to a recent investment memo from Seaport, Macau’s Gross Gaming Revenue (GGR) reached an impressive MOP19.75 billion (approximately $2.46 billion) in August. This marks a 14.7% year-on-year increase and a 6.2% rise compared to the previous month, highlighting a steady recovery trajectory.

Contributing to this upswing is a notable increase in visitor arrivals, as reported by the Macau Government Tourism Office. Early-month tourism saw a 14 percent year-on-year growth, bolstered by consistent daily earnings and a favorable calendar arrangement. The average daily GGR exceeded MOP637 million ($79.27 million), ranking as one of the top months for 2024, attributed partially to the presence of five Fridays and Saturdays and four Sundays.

However, the news isn’t without its challenges. Vitaly Umansky, a senior analyst at Seaport, notes that efforts to crack down on illicit money exchange networks in China could mildly dampen Macau’s gaming sector. This crackdown has the potential to affect money flows and visitor prosperity, although its impact on overall revenue is anticipated to be minor.

Despite these challenges, the outlook for the remaining year remains mindful. As per Morgan Stanley’s insights, while GGR for the third quarter of 2024 is expected to hover around current levels, the impending fourth quarter may present a more cautious scenario. The region prepares for significant events like President Xi Jinping’s visit and the Chief Executive election in October. These events, coupled with Macau SAR’s 25th-anniversary celebrations, may temporarily curb gaming revenue growth.

Overall, while the road to full recovery may encounter bumps, the current strides in Macau’s gaming revenue offer a glimmer of hope, reaffirming its position as a vital hub in the global gaming landscape.