Casino revenues hit post-pandemic high

The city’s gross gaming revenue (GGR) continued to strengthen in July, returning to about 68% of pre-pandemic levels, hitting a post-pandemic high.

Data from the Gaming Inspection and Coordination Bureau shows that revenues last month increased MOP16.7 billion, a surge of over 4,000%, albeit from a low base as casinos shut for almost two weeks in July last year.

Despite setting a post-pandemic record, July’s revenue total fell well short of the MOP24.45 billion reported in July of 2019.

However, the result topped the median analyst estimate of a 3,922% increase, and is the highest monthly taking since January 2020.

The first seven months of 2023 saw gaming operators make revenues of MOP96.80 billion, an increase of 263% year-on-year, but just 56% of the MOP173.96 billion reported across the same period in 2019 before the pandemic.

The figures suggest that the city can accumulate MOP130 billion for this year, a figure initially forecasted by the government.

Early July, the tourism bureau stated that the hotel occupancy rate reached 89%, with hotel operators making 100% of their rooms available as issues with labor shortages are resolved. 

A Bloomberg survey of estimates from six brokerages shows that gaming revenue for the full year is likely to return to 62% of the pre-Covid level.

Gambling income generated from the mass tourist market, the most important indicator of casino profits, is expected to reach almost 90% of pre-Covid levels this year, the survey indicates, as cited in a Bloomberg report.

Meanwhile, a note from JP Morgan Securities (Asia Pacific) Ltd. stated that premium mass GGR have probably recovered to “100% plus” of pre-pandemic levels.

In a note, the analysts said that the July GGR “suggests mass GGR recovered to 92 to 93% of pre-Covid levels, versus 87 to 88% in the second quarter.