June casino revenue drops despite year-over-year increase

Macau’s casinos generated MOP17.69 billion in gross gaming revenue in June, up 16.4% from a year ago but down 12.4% from the previous month, according to figures released yesterday.

The MOP17.69 billion revenue figure for June marked the lowest monthly haul so far this year, according to data from the Gaming Inspection and Coordination Bureau (DICJ). It was still an increase over the MOP15.2 billion brought in during June 2023 but represented a significant drop from the MOP20.2 billion recorded in May.

May 2024 had been Macau’s best month since the beginning of the Covid-19 pandemic in January 2020, with MOP20.2 billion in revenue. Analysts had warned June’s numbers would be impacted by seasonal factors after holidays in May.

For the first six months of 2024, Macau’s casinos generated MOP113.8 billion in total gross gaming revenue, a 41.9% jump from the same period last year. However, that six-month figure remained 23.9% below where Macau was at the same point in 2019 before the pandemic hit.

The monthly and year-to-date totals indicate Macau is continuing its steady recovery from the devastating effects of Covid-19, which decimated casino revenue for over two years. However, a number of headwinds including an ongoing soccer tournament have contributed to June’s downturn.

Analysts say seasonality played a role after holiday periods, while the UEFA Euro 2024 matches currently being held in Germany likely distracted some high-spending gamblers. A low “win rate” for casinos against VIP players in Macau has also impacted the June performance.

Looking ahead, notes from Fitch Ratings estimate Macau’s full-year 2024 gross gaming revenue will reach around 88% of pre-pandemic levels in 2019. The Macau government has forecast revenue will hit MOP216 billion for the year.

While June saw a revenue dip, industry observers remain optimistic about Macau’s economic recovery long-term. Macau is heavily dependent on the gaming sector for its GDP, so consistent growth in casino earnings bodes well for the region’s overall fiscal health. Victoria Chan