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Macau casino GGR could reach $29.2 billion in 2024

January 9, 2024 Macau Casino & Hotel Industry Updates

According to Jeffrey Kiang, a CLSA analyst, Macau’s casino gross gaming revenue (GGR) might increase dramatically and reach HKD 228.1 billion (US$29.2 billion) by 2024.

According to this projection, the 2019 GGR will increase by almost 30% and account for 82% of the total. According to CLSA, Macau’s casino GGR is predicted to return to “89 percent” of its pre-epidemic levels by 2025.

When the different sectors are broken down, Kiang predicts that in 2024, the overall mass GGR—which includes premium mass but does not include slot machines—may rise by 31% yearly to reach US$23.2 billion (or HKD 181.2 billion), an 18% increase from 2019.

A 28.4% improvement over the US$22.75 billion result for the entire year 2023 is represented by the GGR total of US$29.2 billion for 2024. According to Kiang, the first half of 2024 will likely see the largest annual increase, and after COVID-19, mainland Chinese visitor numbers will gradually return to their pre-pandemic levels. He points out that in the first half of 2023, Macau’s GGR had a shaky base due to a number of challenges, including a shortage of manpower and limited transportation capacity.

According to CLSA, there will be strong holiday GGR performance in the first half of 2024 (May Golden Week and Chinese New Year) and the second half (summer vacation and October Golden Week).

CLSA projects that Sands China Ltd., Galaxy Entertainment Group Ltd., and MGM China Holdings Ltd. will hold the majority of GGR by 2023. GGR is predicted to be HKD 47.62 billion (about US$6.1 billion) for Sands China, HKD 32.38 billion for Galaxy Entertainment, and HKD 25.89 billion for MGM China. CLSA projects that in 2024, Sands China and Galaxy Entertainment will hold the highest GGR shares, with Sands China valued at HKD 60.47 billion and Galaxy Entertainment at roughly HKD 44.36 billion. It is projected that in 2024, the adjusted EBITDA for the whole gaming business will be US$8.5 billion, or 92% of what it was in 2019.

Original story by: GGRAsia