Casinos hit MOP4.5b in first week of May

Casino floors averaged a daily run-rate of some MOP640 million during the first seven days of May which coincides with the May Golden Week, when the city swarmed with nearly half a million tourists.

Investment bank JP Morgan estimated that from May 1 to May 7, the gross gaming revenue of the casino sector amounted to MOP4.5 billion, a figure higher than last month’s MOP490 million daily run-rate.

JP Morgan analysts DS Kim and Mufan Shi said in a note yesterday that the recorded GGR is also higher than the average of MOP385 million which was recorded for the first quarter for the year.

Although the week included three holiday days, as well as four slow days post-holiday, the figure is “undeniably a strong print.”

According to the analysts, the demand from the mass market had recovered to at least 90% of pre-Covid 19 levels, “if not 100%-plus” during the holiday.

The recovery is even higher than the 65% observed in the first quarter of the year, when casinos started to regain momentum following nearly three years of bleeding cash every day, due to the pandemic and economic downturn, along with strict border restrictions.

The casino sector continued to recover in April, recording MOP14.7 billion in revenue last month, the highest monthly taking since January 2020.

Last week, Morgan Stanley raised its forecast for the city’s gaming industry as the sector has been painting a rosy picture, estimating a 2023 mass GGR of USD19.9 billion (88% of 2019) and 2024 mass GGR of USD25.7 billion.

Yesterday, the city’s gaming stocks declined broadly, led by MGM China, which slid about 3%, while Sands China dived 2.97%

However, the institution has raised its estimates for the two US-based operators, which have announced their first quarter earnings.

Wynn Macau, Galaxy and SJM Holdings slid 1.77%, 1.21% and 0.53% respectively.  LV