Macau gaming sector declines in economic contribution

Macau’s gaming sector faced a significant decline in its contribution to the region’s economy in 2022, with the gross value added by the sector falling by 51.6% year-on-year to MOP30.3 billion ($3.76 billion), according to the Macau Gaming Sector Survey 2022 conducted by the Macau Statistics and Census Bureau (DSEC).

The survey focused on gaming activities and collected data from nine enterprises involved in gaming operations, excluding other businesses like hotels and retail. It also revealed that the gross surplus of the gaming sector, before taxes, saw a substantial drop of 72.8% year-on-year to MOP11.5 billion ($1.4 billion) in the previous year.

Total receipts in the gaming sector plummeted by 49.2% year-on-year to MOP46.2 billion ($5.7 billion), with revenue from games of chance specifically declining by 51.5% to MOP42.1 billion ($5.2 billion).

The sector’s total expenditure decreased by 24.7% year-on-year to MOP40.3 billion ($4.9 billion), driven primarily by a significant 66.6% decrease in expenses related to goods purchases, commissions, and customer rebates.

The number of full-time workers employed in the gaming sector also saw a decline of 5% year-on-year, with 52,174 workers in 2022.

Moreover, Gross Fixed Capital Formation (GFCF) in the gaming sector totaled MOP4.36 billion ($540.4 million) in 2022, representing an 83.5% year-on-year decrease. The majority of this capital formation, about 73.6%, was allocated to buildings and other constructions.

These statistics underscore the challenges and economic impact faced by Macau’s gaming sector in 2022, likely influenced by factors such as the ongoing COVID-19 pandemic and changing consumer preferences, which have resulted in reduced gaming activity and revenue for the region.

Original story by: Asia Gaming Brief