Casino sector gains momentum, hitting new high in April

The casino sector continues to gain traction in recovery in April, recording MOP14.7 billion in revenue in April, the highest monthly taking since January 2020.

The figure also represents a surge of 449.9% year-on-year, partly driven by the pent-up demand of Chinese tourists after the country’s reopening. Last month’s recovery represents a 15.6% increase compared to the prior month.

April 2022 was Macau’s worst month in terms of gaming income since September 2020, when the region was reeling from its most significant coronavirus outbreak of the entire pandemic.

With the boost in recovery, casinos have raked in MOP49.36 billion in the first four months of the year, already surpassing the total gross gaming revenue in 2022. If such results continue, the sector will achieve the government’s estimate of MOP130 billion for this year.

However, while the casinos’ recovery has been boosted by a revival in domestic tourism, growth could flatten in the second half of the year.

This will be after China adds more international flights and the pent-up travel demand will normalize, according Credit Suisse analysts including Kenneth Fong.

Analysts at CBRE Equity Research meanwhile forecast that the growth will remain through May until the end of the year.

Given the holidays in both April and May, analysts John DeCree and Max Marsh pointed out that the city’s casino sector has benefited, adding that May is starting off strong.

Mop10b in Gaming tax

The Macau government collected some MOP10.11 billion in gaming taxes in the first quarter of the year.

Data from the Financial Services Bureau shows that the quarter’s earnings were an increase of 15.8% year-on-year.

The city’s GGR in the first quarter stood at MOP34.64 billion, of which 40% goes to the government.