Macau Q3 GGR down 26% quarter-on-quarter
Macau’s mass-market GGR in Q3 2021 was MOP12.81bn ($1.60bn), a 24% decline from Q2, but the figure made up 68% of the city’s aggregate casino GGR for the period.
Mass-market baccarat earned MOP10.56bn, 56% of all GGR. VIP baccarat accounted for 32% of casino GGR with MOP5.96bn. Revenue from slot machines for the quarter was MOP1.08bn.
In total, Macau reported MOP18.76bn in GGR in Q3, 26% down compared to the previous quarter, reported GGRAsia. Analysts noted that the VIP segment suffered the most, mainly due to the ongoing pandemic and regulatory changes.
According to a survey from Bloomberg, Macau casino operators are expected to see third-quarter profits slump to $62m in EBITDA. The survey estimates that the upcoming quarter could be the worst this year, plunging several operators into a loss and leaving Macau with a profit that is 97% lower compared to pre-pandemic levels.
Bloomberg noted that mandatory quarantine travelling to and from certain parts of the mainland, including Beijing, Hong Kong and the nearby city of Zhuhai, deterred players from visiting Macau.
“Sharp deterioration of visitor arrivals during the October Golden Week holiday is unlikely to end soon,” said Bloomberg Intelligence analysts, led by Angela Hanlee. Arrivals from mainland China fell 94% year-on-year during the holiday and the drop in numbers will likely further impact gaming revenue in Q4.
Macau’s government is also working to change the regulations regarding the casino industry, which, according to Bloomberg, triggered a record sell-off of gaming stocks and erased $18bn in combined market value. The mainland government is also pushing Macau to diversify its economy away from gambling.
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