Macau Gambling Revenue Inches Closer to 2019 Levels

Posted on: December 2, 2024, 09:38h. 

Last updated on: December 2, 2024, 09:48h.

Macau gambling revenue last month totaled 18.4 billion patacas (US$2.3 billion). The November result represents 80.4% of the $2.86 billion the six casino operators won from gamblers in prepandemic November 2019.

The world’s richest gaming market continues to inch closer to revenue levels experienced before the COVID-19 virus devastated the casino industry. November exceeded analyst expectations, as the 14.9% year-over-year surge outpaced the consensus forecast of a 13% improvement.

November followed the $2.6 billion won in October — the enclave’s best mark since January 2020 when the coronavirus onset began out of Wuhan. October is traditionally a busy month due to the annual Golden Week holiday.

November Wins

November marked an 11.5% month-to-month drop, but that was expected. The month is typically slower than October because there are fewer mainlanders on holiday.

However, with an extra weekend day in November 2024 compared with November 2023, Macau casinos managed to outpace forecasts. Year to date, Macau’s gambling revenue of $26 billion represents a 26.8% jump from 2023, and 77% of the $33.6 billion the casinos won in the 11 months of 2019.

Market observers reported strong guest traffic inside the resorts, though authorities will release the official November visitation count later this month.  

Analysts project that December will cap off a strong year, with forecasts at 86% of December 2019, or roughly $2.45 billion.

Evolving Landscape 

Macau, which before the pandemic relied on casino taxes for about 80 cents of every dollar the local government collected, has undergone great change over the past half-decade.

Sam Hou Fai will become the city’s new chief executive when he’s sworn in on December 20. Sam has said publicly he thinks it’s in Macau’s best interest to lessen its dependency on casino taxes. He plans to do so by encouraging nongaming investments to diversify the region’s economy.

Being a Special Administrative Region of China, Macau’s government looks to Beijing for policy direction. During the pandemic, Xi Jinping’s administration instructed Macau to clamp down on VIP junket groups that helped high rollers on the mainland move their money to the tax haven that is Macau to gamble.

Macau successfully prosecuted billionaire Alvin Chau, one of the junket industry’s biggest tycoons who ran the Suncity empire, and put him in prison for 18 years. Nearly all other junkets fled Macau as a result.

More recent developments, however, have been in the industry’s favor.

The immigration changes, approved by Xi’s Cabinet, are tailored to prop up South China and the Pearl River Delta economies.