Macau casinos reported MOP18.438 billion (US$2.3 billion) in gross gaming revenues (GGR) for November 2024, a 14.9% year-on-year increase.
The gaming industry of Macau continues to rebound with impressive results, as the latest figures for November 2024 show a significant boost in casino revenues. The Gaming Inspection and Coordination Bureau reported that Macau’s casinos generated MOP18.438 billion (US$2.3 billion) in gross gaming revenues (GGR) in November 2024. According to a Macau Daily Times report, this figure reflects a year-on-year increase of 14.9% compared with the same month last year.
This surge in GGR comes as the city’s casino industry shows steady growth following the global pandemic. With a cumulative total of MOP208.58 billion in gaming revenues for the first eleven months of 2024, the sector is just MOP1.42 billion shy of meeting the government’s full-year forecast. The performance in November marks a 26.8% increase over the same period last year, suggesting a robust recovery and renewed confidence in Macau’s gaming sector.
Historically, November and December have been strong months for Macau’s casinos, often yielding similar levels of revenue. Last year, December posted MOP18.57 billion in GGR, making it the second-highest revenue month of 2023, following October’s record of MOP19.5 billion. With this in mind, industry experts anticipate that the revenue for December 2024 could mirror or even surpass November’s result, potentially pushing the year-end total to around MOP227 billion.
If this pattern holds, it would represent a substantial recovery for Macau’s casino sector, which struggled during the height of the COVID-19 pandemic when travel restrictions and lockdowns led to a sharp decline in tourist arrivals. The return of international visitors, particularly from mainland China, has been a key factor in the recovery, driving casino revenues back to pre-pandemic levels.
A Conservative Forecast for 2025
Despite the strong performance in 2024, the outlook for next year remains cautious. Late last month, Lei Wai Nong, Macau’s Secretary for Economy and Finance, defended the government’s 2025 gaming revenue forecast of MOP240 billion. During discussions about next year’s government budget, Lei stated that this projection is based on a projected growth percentage for the gaming industry, along with an estimated 9% increase in inbound tourism for 2025.
Lei did not go into detail about how the government arrived at these numbers, but the projection has raised some concerns among lawmakers. While some viewed the figure as “very conservative,” others questioned whether it accurately accounts for regional competition and other external factors that could impact Macau’s gaming revenues.
Several lawmakers expressed doubts about whether Macau’s casinos could sustain the current growth rates, given the competition from other gambling hubs like Singapore and the potential impact of external challenges such as economic fluctuations or political tensions.
Analyst Opinions on Government Estimates
While government projections remain cautious, outside analysts are slightly more optimistic. Citigroup analysts, for instance, suggested that the government’s estimate of MOP240 billion for next year could be too low. In a recent report, the analysts predicted that the gaming sector might generate closer to MOP243 billion in 2025, reflecting the ongoing recovery in the tourism sector and stronger-than-expected demand for gaming.
Citigroup’s analysts pointed out that the government has historically applied conservative estimates when forecasting GGR, often erring on the side of caution. However, they noted that the growth seen in 2024 and the projected increase in visitors could provide a stronger-than-expected push for the industry in the coming year.
Key Drivers of Growth
One of the primary drivers of growth in Macau’s gaming industry has been the resurgence of Chinese visitors. Since China eased its COVID-19 restrictions earlier this year, an increasing number of mainland tourists have flocked to Macau, lured by its casinos, luxury hotels, and entertainment options. The return of these tourists has helped fill casino floors and boost overall revenue.
Additionally, the expansion of non-gaming offerings in Macau has also played a role in diversifying the city’s appeal to tourists. With a focus on luxury retail, high-end restaurants, and live entertainment, Macau is positioning itself not only as a gambling hub but as a broader entertainment destination. This shift is particularly appealing to younger tourists and those who may not be as interested in traditional gaming.
Long-Term Industry Trends
Looking ahead, analysts are divided on whether Macau’s casino industry will be able to maintain its current momentum. While the growth in GGR is encouraging, there are concerns that the market could face saturation in the coming years as competition in the region intensifies.
Singapore, for example, has emerged as a strong competitor, with its integrated resorts attracting both tourists and investors. Other countries in the Asia-Pacific region, such as Japan, are also considering the legalization of casinos, which could further challenge Macau’s dominance.
Moreover, the broader global economic climate could also impact the casino industry. If there are slowdowns in major markets such as China or economic disruptions that affect disposable income and consumer spending, it could hurt tourism and gaming revenues in Macau.
Despite these uncertainties, the near-term outlook for Macau’s casinos remains positive. As long as the tourism recovery continues and the government adapts to regional competition, the city’s gaming sector could continue to see strong revenues in the coming months and years.
Macau’s gaming industry has demonstrated a remarkable recovery in 2024, with strong monthly results driving the sector toward record-breaking revenues. As the year draws to a close, all eyes will be on December’s performance to see if it can match or exceed November’s results. However, questions remain about the sustainability of this growth, with some analysts and lawmakers expressing concerns about external factors and regional competition.
The government’s conservative forecast for 2025 suggests a cautious outlook, but with international tourism on the rise and the continued appeal of Macau’s entertainment options, the gaming industry could see further gains in the coming year.
Read related article: Macau Forecasts $29.7 Billion in Gaming Revenue for 2025
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