Macau Casino Revenue Improves in August Thanks to Favorable Calendar

September 01, 2024

In August, Macau's casino took in MOP19.8 billion (US$2.47 billion). The August draw increased 6.2% from July and 14.8% from the previous year.

The city's Gaming and Inspection Coordination Bureau provided the gross gaming revenue (GGR) figures, which represent around 81.5% of pre-pandemic August 2019 levels, when the six commercial casino operators won a little over $3 billion in total.

Since Chinese President Xi Jinping abolished "zero-COVID" in late 2022 and permitted some kind of normalcy to return to the second-most populous and second-largest economy in the world, August was Macau's second-best month. Macau is governed by the People's Republic of China under the "one country, two systems" policy, which is implemented in both of the SARs, Macau and Hong Kong.

August Lives Up To The Mark 

Macau's GGR for August was consistent with what analysts had predicted. While JPMorgan predicted an August profit of between MOP19 billion to MOP19.5 billion, Citigroup estimated August revenue at MOP20 billion.

On paper, August appeared to point toward a comeback in gaming, as casinos keep moving away from the VIP market and toward the general public. The operators were obliged to refocus, even if it wasn't what they intended to do, after Xi's Beijing gave the Macau SAR Government orders to drive out junket groups that catered to high rollers on the mainland.

But the revenue narrative for August 2024 is not over yet. Having 14 Fridays, Saturdays, and Sundays in August was advantageous as there were only 12 in August 2023. There were 12 weekends in July 2024 as well.

However, the GGR for the first eight months of 2024 was MOP152.1 billion (US$18.92 billion), helped by a robust August. That is about 78% of the pre-pandemic 2019 January through August number, and it marks a 33% increase over the same period in 2023.

Headwinds in the Market

During the epidemic, there were significant changes to Macau's casino business. In late 2022, the six concessionaires reached an agreement to exchange fresh 10-year gaming licenses for an investment of $16.2 billion in nongaming projects within their resorts.

A month later, Suncity CEO Alvin Chau was found guilty of overseeing an illegal gambling ring and operating a criminal gang, which made the terms even more detrimental to the licensees. A quarter of Macau's junket business was controlled by Chau, known as the "Junket King" for Suncity. When Chau was sentenced to 18 years in a Chinese prison, most VIP groups fled to safer havens such as Vietnam, the Philippines, and South Korea.

The new chief executive of Macau may put additional pressure on the gambling sector in the city. Former President of the Court of Final Appeal Sam Hou Fai is the front-runner to take over as Macau's top government official, as Chief Executive Ho Iat Seng has decided not to run for reelection due to health issues.

Sam recently said he thought Macau should move away from gaming. Over 80% of the region's tax revenue is still generated by casinos.

"During a media briefing last week, Sam said that the casino industry “developed in a disorderly manner” and has “expanded wildly.” He opined that “having one dominant industry is not beneficial” for the city’s long-term development.

Sam thinks that the youth of Macau have developed tunnel vision, believing that the only viable career path is in gambling, as a result of the casino's domination.