Gaming sector hits jackpot with 308% surge in revenue

The gaming sector experienced a turnaround in 2023, with total receipts skyrocketing by 308.1% year-on-year to MOP188.52 billion, according to the Statistics and Census Service (DSEC).

This resurgence has been largely attributed to the resumption of travel activities following COVID-19, which has driven both visitor numbers and spending.

As tourists return, particularly from mainland China, gaming activity surged.

This influx led to a significant increase in gross gaming revenue (GGR), with receipts from games of chance—the primary revenue source—jumping by 335.9% to MOP183.60 billion.

This figure is 63% of 2019 revenue, before the pandemic.

Total sector expenditure, excluding taxes, reached MOP80.06 billion, a 98.6% increase year-on-year.

The largest shares of this expenditure were attributed to operating expenses and the purchase of goods, which accounted for 39.6% and 22.6%, respectively.

Notably, compensation for employees decreased from 46.7% in 2022 to 25.2% in 2023, reflecting changes in operational dynamics.

Expenditures on complimentary goods and services provided to customers, such as hotel accommodation and food and beverages, surged 365.1% year-on-year to MOP19.51 billion.

Additionally, spending on management services, contractual services, and market research saw significant increases of 234.6% and 232.2%, respectively.

The gaming sector’s contribution to the economy, measured by Gross Value Added, escalated by 345.8% year-on-year to MOP135.37 billion.

Gross surplus before taxes soared 896.5% to MOP115.20 billion.

Despite this growth, the number of enterprises engaged in gaming activities remained stable at nine in 2023, comprising six gaming concessionaires and three enterprises involved in pari-mutuels and lotteries.

The DSEC’s Gaming Sector Survey focuses solely on gaming activities, excluding data from hotel, retail, and other businesses operated by these enterprises.

CLSA analysts issued a report last week predicting continued growth in the gaming sector, with expectations the GGR will rise further this year.

This optimism is fueled by anticipated increases in visitor numbers and expanded hotel capacities, alongside a recovering consumer confidence and spending patterns, as Macau continues to attract tourists from diverse markets. Nadia Shaw