Casino shares rally following strong GGR

Macau casino shares have risen by 59% since April as gross gaming revenues (GGR) continue to outpace analyst expectations, according to Bloomberg.

The casinos have experienced a significant upturn, fueled by rising tourism, enhanced entertainment options, improved transport infrastructure, and a notable increase in VIP play.

In May, Macau casinos reported GGR of MOP21.19 billion, marking a 5% year-on-year rise and a 12.4% increase from April, the highest monthly figure since the city reopened its borders in January 2023.

This momentum persisted into June, with GGR reaching MOP21.06 billion, representing a 19% surge year-on-year.

Through mid-July, casinos generated MOP18.6 billion, representing an 11.6% increase over the same period in 2024, bringing the year-to-date total to MOP132.35 billion, up 36.7% from last year.

Following this trajectory, Seaport Research Partners revised its full-year GGR forecast upward by 7%, with expectations of a 9% gain in the latter half of 2025.

Tourist arrivals reached 19.22 million through June, a 14.9% increase year-on-year, largely driven by visitors from mainland China. International tourism is also expanding, supported by the city’s efforts to diversify attractions with sports, cultural, and entertainment events.

High-profile concerts, specifically Jacky Cheung’s concerts at the Galaxy Arena, were credited by JP Morgan, Citi, and Seaport Research for June’s revenue boost. NS