Casinos with results above gov’t expectations despite December’s ‘poor’ results

Macau casinos closed the year with an accumulated gross gaming revenue (GGR) of MOP226.78 billion. The final figures released by the Gaming Inspection and Coordination Bureau (DICJ) show the result to be some 5% higher than initially forecasted.

The figure obtained in 2024 also represents an increase of 23.9% compared year-on-year with 2023, when the GGR was MOP183.06 billion.

Despite the final results of the year proving to be almost 5% higher than forecasted, December was eventually the month with the poorest results of the year when compared year-on-year with the equivalent month of 2023, registering a drop of 2% from December 2023 and being the only month of the whole year in the red.

Still, the monthly result, reaching MOP18.2 billion, was just the third-lowest monthly result of 2024 behind September (MOP17.25 billion) and June (MOP17.69 billion).

On average, in 2024, the local casinos earned revenues of MOP18.90 billion.

Analysts from several entities, including JP Morgan and Citigroup, have pointed out that the three-day visit from President Xi Jinping to Macau from Dec. 18 to 20 was the main factor contributing to the result of December, noting a significant slowdown around this period.

According to the current government forecast for 2025, the sector is expected to be worth some MOP240 billion, or an average of MOP20 billion per month, which is 5.83% higher than in 2024.

A month ago, when the 2025 forecast was presented, it elicited mixed feelings from lawmakers, with some considering the amount “very conservative,” while others expressed fears that the government could be overestimating receipts while underestimating threats to the sector, such as regional competition and other external factors.

Although the industry has been experiencing a rapid recovery post-Covid, the results of Macau’s gaming industry remain very far from those reached back in 2013, when the GGR was MOP370.75 billion, which was almost 63.5% higher than the 2024 result.

One-month salary bonus to be distributed by all gaming concessionaires

All six gaming concessionaires have announced plans to distribute discretionary financial bonuses to their workers. The bonuses, worth one month’s salary, will be paid later this month before the Lunar New Year, they announced in separate press statements.

Additionally, Sands China Limited (SCL) has announced a salary increase for 99% of its employees, effective from March this year.

SCL pay adjustments vary by income level, with lower-salaried staff (below MOP16,000/month) receiving a higher percentage increase, while those earning wages above MOP16,000 will see their salaries increase at a fixed percentage of 2.5%.

For the time being, no other gaming concessionaire has announced salary increases for 2025, but as this practice becomes the norm after such an announcement by one of the competitors, others usually follow suit.