Gaming | June GGR disappoints, attributed to World Cup

Gross gaming revenue in Macau grew 12.5 percent year-on-year in June to a total of MOP22.49 billion, according to the latest data from the Gaming Inspection and Coordination Bureau, making the month the 23rd consecutive to post gains.

However, June gross gaming revenue came in far below analysts’ predictions of between 17 and 21 percent year-on-year growth, partly attributed to the effect of the football World Cup.

The moderate rise was in line with the year-on-year growth seen in the previous month, but the actual revenue was about 12 percent less than the MOP25.5 billion recorded in May. The last two monthly postings represent a deceleration from the 20 percent plus growth seen in both March and April.

The latest data means that gross gaming revenue for the first six months of 2018 stands at just over MOP150 billion, up 18.9 percent over the MOP126 billion recorded in the same period in 2017. This year’s posting is the strongest start to the year since 2014, when the first six months recorded MOP193 billion in gains.

Analysts expressed their concern last month that the football World Cup might dampen June gross gaming revenue. On past occasions of the tournament, gamblers have turned their attention away from Macau’s baccarat tables and onto World Cup wagering.

JP Morgan Securities (Asia Pacific) wrote last week that June revenues were “quite decent/resilient in our view,” especially given the “negative impact from the World Cup.”

Other analysts have maintained the view that there is little evidence to support the link between the World Cup and Macau gross gaming revenues.

During the UEFA Euro 2016, which fell between June 10 and July 10, Macau revenues hit their lowest point of the recession, recording just MOP15.88 billion in June 2016. DB