Upward trend to continue in Macau casinos

Macau’s gross gaming revenue (GGR) for the first 21 days of January 2024 totaled MOP13 billion ($1.6 billion). This resulted in an average daily revenue of MOP629 million, marking a 5% increase from the previous week, according to a HSBC Global Research report issued yesterday.

The rise in revenue is attributed to an increase in traffic and a higher VIP win rate, which improved from approximately 2.7-2.8% to between 2.8-3.0% in the last week, the report says. Also, the VIP gaming volume showed a 1% month-to-month increase, while mass market GGR went up by 4-5% compared to a 3% increase in the prior week.

The research group said Sands China and MGM are reportedly gaining market share in the mass gaming segment compared to December.

If the GGR maintains an average daily run-rate of MOP550-600 million for the rest of January, it is projected that the total GGR for the month could reach between MOP18.5 billion ($2.3 billion) to MOP19 billion ($2.36 billion). This forecast suggests a recovery to 74-76% of January 2019 levels, a slight improvement from the 75% recovery observed in the fourth quarter of 2023.

Previously, Citigroup has predicted that Macau’s GGR for January 2024 might reach MOP 17.5 billion (US$2.2 billion), signifying a recovery to 70% of 2019 levels. This expectation follows a performance in December 2023 that exceeded initial forecasts, with an average daily revenue of around MOP 600 million, surpassing expectations by approximately 6%.

These reports indicate a positive trend in Macau’s gaming revenue, suggesting a recovery trajectory for the industry. Staff reporter