Gross gaming revenue totalled MOP 19.75bn for the month (£1.9bn/€2.26bn/$2.5bn). Year to date, the numbers increased 33.4% to MOP152.1bn.
With four months to go, the industry has already collected 70% of the projected full-year total of MOP216bn, per the Gaming Inspection and Coordination Bureau (DICJ).
Casinos also saw a 6.2% month-on-month increase, the second best monthly performance since January 2023, when city borders reopened. The monthly hike, while positive, isn’t considered especially meaningful, as June and July are typically slower for tourism and casino traffic. August also benefitted from four extra weekend days – a total of 14, compared to 12 in July.
Near-term headwinds
According to J.P. Morgan, the August results suggest strong visitation by mainland Chinese patrons, the industry’s mainstay, especially mass players. Those factors compensated for lackluster demand in the shrinking VIP segment.
Despite the uptick, the government’s recent crackdown on illicit money exchanges could inhibit returns in the short term. Seaport analyst Vitaly Umansky said increased monitoring of financial touts may deter visitation and limit money flows into Macau.
“Certain individuals have postponed their visits to Macau,” Umansky said in a recent note. “The activity will likely continue to be somewhat of a headwind to GGR over the next few months.
“However, we expect the crackdown to soften, and liquidity in Macau to be not significantly impacted in the medium term.”
Macau: An industry in flux
The city’s dominant industry has undergone big shakeups in recent years. Increased scrutiny of financial transactions, meant to curb capital flight and money laundering, has virtually flattened the VIP business. So have the 2023 prosecution and imprisonment of two high-profile junket operators, Alvin Chau and Levo Chan.
The government is also committed to diversifying the local economy away from gaming. Casino concessionaires were recruited to join this effort as part of their 2022 licence renewals. Together, the Big 6 pledged to invest MOP108.7bn in nongaming attractions over the next decade. This year, proceeds from non-gaming are expected to contribute 15% of total revenues.
The presumptive winner of the October election Macau chief executive, Sam Hou Fai, has pledged full support for these efforts.
Original article: https://igamingbusiness.com/uncategorized/macau-casino-ggr-up-in-august-nearing-2019-levels/
