Macau Gaming Revenue Hits Lowest Point in 2024; Baccarat Still Dominates
Macau’s gaming industry experienced a mix of growth and challenges in September 2024.
According to the Gaming Inspection and Coordination Bureau (DICJ), the 30 casinos in the region generated a gross gaming revenue (GGR) of MOP17.3 billion (approximately US$2.16 billion). While this figure represents a year-on-year increase of 15.5%, it also marks a decline of 12.6% compared to August’s GGR, which was MOP19.8 billion (US$2.47 billion).
Despite the dip in revenue for September, the first nine months of 2024 have shown significant overall growth. During this period, Macau’s casinos reported a GGR of MOP169.3 billion, reflecting a robust increase of 31.3% compared to the same time frame last year. Analysts attribute this upward trend to a resurgence in both domestic and international tourism, contributing to the recovery from the pandemic’s lasting effects.
A closer look at the data from the first half of 2024 reveals that baccarat continues to be the cornerstone of Macau’s gaming revenue. This classic card game generated an impressive 85.2% of local casinos’ GGR from January to June. With over a dozen games of chance available in the casinos, baccarat’s dominance underscores its popularity among both local players and tourists. In contrast, gaming machines, including slots and electronic table games, accounted for only 5.6% of the total GGR during the same period.
Macau’s gaming sector is managed by six competing integrated resort (IR) operators: Sands, Galaxy, SJM, Melco, Wynn, and MGM. As part of their agreements with the government, these operators are obligated to enhance their non-gaming offerings and contribute to the preservation of Macau’s cultural heritage, as well as support the revitalization of the city’s historic districts.
The operators contribute significantly to the local economy, paying 35% of their GGR as a direct gaming tax to the government. An additional 4% levy funds various public causes, including infrastructure development and social programs. These contributions underscore the importance of the gaming sector not just as a source of entertainment, but also as a vital component of Macau’s economic stability.
However, the industry is facing challenges. September’s GGR was the lowest recorded in the first nine months of 2024, highlighting the seasonal fluctuations that affect casino revenues. Analysts suggest that September often acts as a “shoulder season,” falling between the busy summer months and the anticipated Golden Week holiday in October. This transitional period typically sees reduced visitor numbers and lower gaming activity, impacting overall revenues.
Adverse weather conditions in early September may have further exacerbated the downturn. Inclement weather can deter tourists from visiting casinos, leading to reduced foot traffic. Additionally, ongoing regulatory measures in mainland China, aimed at curbing illicit money exchange activities, have made it more difficult for some visitors to access funds for gambling. These factors combined to create a challenging environment for Macau’s gaming operators during the month.
Despite these challenges, the long-term outlook for Macau’s gaming industry remains positive. The government’s efforts to promote non-gaming attractions and support cultural heritage initiatives play a crucial role in diversifying Macau’s tourism offerings. Under the concession agreements, gaming operators are required to invest in these initiatives, which could enhance the overall appeal of Macau beyond just its casinos.
As Macau approaches the Golden Week holiday, which typically draws an influx of tourists and increased spending, industry analysts will closely monitor how these trends evolve. The upcoming weeks could provide a much-needed boost to gaming revenues, particularly for baccarat, which remains the most lucrative game in town.
Read related article: Concerns Raised Over Potential Shutdown of Satellite Casinos in Macau Amid New Gaming Law
Other Interesting Articles
Transgender Beauty Queen Lars Pacheco Admits Losing P5 million in Online GamblingOct 1, 2024