Casino revenue declines for second month as World Cup weighs on demand

[Photo: Renato Marques]

As expected, July underperformed in terms of gross gaming revenue (GGR), delivering MOP20.26 billion, which was 8.4% below the same month last year.

After the June drop (12.1%), this is the second consecutive year-on-year decline in GGR, which was anticipated according to market analysts who had forecast the potential impact of the 2026 World Cup on local gaming performance.

Still, the July result surpassed the MOP20 billion mark and nearly matched February’s result (MOP20.63 billion), a traditionally stronger month.

The July result reflected a daily average GGR of MOP653.55 million, which was 5.86% higher than in June. Still, it was the second-lowest result of this year, which has so far delivered a daily average of MOP694.24 million.

[Photo: Renato Marques]

After July, accumulated GGR for the year stood at MOP147.161 billion, which was 4.4% above the first seven months of last year (MOP140.896 billion).

Despite the low results in June and July, as well as lower performance in April, the average monthly GGR remains above the MOP21 billion mark, which extrapolates to an annual GGR of around MOP252 billion, slightly above last year’s MOP247.40 billion and well above the government’s estimate of MOP236 billion.

Meanwhile, market analysts still predict a rapid recovery in GGR starting this month (August), with a stronger focus on the last quarter of the year, suggesting the final results could show growth of between 5% and 6% year on year.

World Cup and typhoons

Besides the perceived impact of the World Cup on local gaming revenues, analysts have noted other factors that contributed to July’s poor performance, including the passage of two typhoons, which had limited direct impact on Macau.

In July, the South China coast was affected by two typhoons, one at each end of the month. At the start of the month, Typhoon Maysak passed south of Macau without disruptions but made landfall near the border between Vietnam and China’s Guangxi Province.

This weather event caused major disruption in the province, with severe flooding reportedly killing 39 people and forcing the evacuation of more than 130,000 people.

More significantly, Typhoon Noul made landfall northeast of Macau in Guangdong province. Again, there was little direct impact on Macau, but the storm caused significant disruption in Guangdong province and neighboring Hong Kong, including the cancellation of many flights and the suspension of maritime and road connections between Macau and Hong Kong, which can significantly affect visitation.

The unpredictable impacts of typhoons in surrounding regions are also known to lead some travelers to reconsider visits and reschedule trips to Macau for a later time.