Post CNY gaming revenue surge driven by strong visitation

Macau’s gross gambling revenue (GGR) post Lunar New Year has hit the highest daily revenue figure since the Golden Week holiday in May 2021, according to analysts. 

Brokerage firm Bernstein suggested that the GGR surged 29% week-on-week, recording an average revenue of MOP428 million, which was previously seen in May last year.

The firm said the rise in “mass GGR [was] driven by strong visitation and premium play post-holiday. VIP also improved despite the hold rate dropping back to normal.” 

For JP Morgan analyst DS Kim, the high revenue is an “impressive and a very encouraging sign to suggest robust pent-up demand for mass gambling, in our view.”

Tourist arrivals in the city have also grown following the week-long holiday.

According to the government, the number of visitors continues to rise following the Chinese New Year holidays, with 28,000 arrivals on Saturday.

JP Morgan analysts suggested that it has often been the case that “tail-end demand (a week after Lunar New Year) is stronger than LNY demand itself – but remember, a big chunk of this tail-end came from high-end and VIP [markets] in the past.”

“Thus, this strong tail-end – without junkets – is impressive and a very encouraging sign to suggest robust pent-up demand for mass gambling, in our view,” the analysts suggested. 

Due to the stability of case numbers, Bernstein Research is expecting slightly higher gaming revenue for February following the increase in visitor numbers to the region during the Lunar New Year.

Channel checks from analysts shows that month to date GGR is estimated at MOP5 billion, with an average of MOP384 million daily.

Although this figure represents a downturn of 58% compared to pre-pandemic levels, it is already about 47% higher compared to the same period last year, representing an improvement.