Shares of MGM China Holdings Ltd. surged 10% in Hong Kong, reaching their highest level since June 2021. Galaxy Entertainment Group Ltd. and Wynn Macau also experienced over 3% gains.
This news follows a report showing that Macau’s gaming revenue in January had risen by 67% year-on-year, surpassing analyst expectations. Analysts believe that Macau is attracting not only high-stakes gamblers but also casual players and leisure travelers, with growing non-gaming entertainment events, such as concerts, appealing to a younger audience.
According to brokerage firm CLSA Ltd., Macau’s casino gross gaming revenue (GGR) is expected to exceed MOP19.8 billion in February, driven by a strong performance during the Chinese New Year holiday, as cited in a GGRAsia report.
Analysts from CLSA noted that the average daily visitor count during the holiday period aligns with the Macao Government Tourism Office’s forecast of 120,000 visitors per day. The analysts also reported witnessing robust foot traffic at border crossings and the four integrated resorts they visited on Feb. 12.
Preliminary data from the city’s Public Security Police showed that Macau received over 898,000 visitors in the first five days of the Chinese New Year break, with an average of approximately 179,700 visitors per day.
The analysts attribute this increase in revenue due to the popularity of certain table games. For example, the minimum bet for baccarat tables was commonly seen at MOP1,000, and tables with higher minimum bets (MOP2,000, MOP3,000, and MOP5,000) were notably occupied in the afternoon. Sic bo, a table game with a higher house edge than baccarat, and slot machines were also popular among players.
CLSA believes higher-than-expected GGR in February is possible, potentially surpassing the MOP19.8 billion forecasted and marking the highest monthly figure since the start of the Covid-19 pandemic in 2020. During CLSA’s visit, they observed high demand for ferries and golden shuttle buses, with packed transportation services across the Hong Kong-Zhuhai-Macao Bridge. Staff Reporter
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