Key points:
- Macau’s October 2024 gross gaming revenue (GGR) hit MOP 20.8bn, a 6.6% year-on-year increase
- The accumulated GGR for 2024 is up 28.1% compared to 2023 levels
- October revenue is still 21% below that reported in October 2019
Macau’s gaming industry saw a moderate rise in gross gaming revenue (GGR) in October 2024, with revenue reaching MOP 20.8bn ($2.6bn), according to data released by the Gaming Inspection and Coordination Bureau (DICJ).
The 6.6% increase from October 2023 represents the highest monthly total GGR for a month so far this year, slightly surpassing May’s peak of MOP 20.2bn. This gain aligns with analysts’ expectations and reflects a seasonal boost from the National Golden Week holiday in China.
The Golden Week holiday, a seven-day period celebrating China’s National Day, brought a surge in visitors to Macau. According to statistics from the Macao Government Tourism Office (MGTO), mainland visitor arrivals peaked at over 163,000 on the third day of celebrations.
This influx of visitors, therefore, may have contributed to increased spending at Macau’s casinos and supported the month’s revenue growth.
Year-to-date and month-on-month performance
Alongside the 6.6% annual increase, October’s GGR also rose by 20.4% from September 2024, which had recorded MOP 17.3bn.
For the first ten months of 2024, Macau’s cumulative GGR reached MOP 190.1bn, showing a significant 28.1% increase year-on-year.
Despite this growth, the current year-to-date figure remains approximately 23% lower than the GGR accumulated from January to October 2019, when revenues totalled MOP 246.9bn.
The GGR growth observed throughout 2024 highlights the gradual recovery of Macau’s gaming sector following the lifting of pandemic-related restrictions. However, full recovery to pre-pandemic levels may take additional time, given ongoing economic uncertainties and regulatory adjustments in the region.
Impact of regulatory changes on the gaming industry
The October revenue increase comes as Macau’s gaming sector faces a stricter regulatory environment. Earlier in October, Macau’s Legislative Assembly enacted a bill criminalising unauthorised currency exchanges within casino premises, an effort aimed at reducing illegal financial activity and bolstering anti-money laundering measures.
This regulatory shift underscores Macau’s commitment to increasing oversight of its casino sector, given its heavy reliance on visitors from mainland China and the prominence of VIP gamblers within its market.
Macau’s new Chief Executive, Sam Hou Fai, has also indicated a desire for the region to diversify its economy beyond the gaming industry.
Good to know: Hou Fai, formerly a senior judicial official, assumed office in 2024 and has previously criticised the industry’s rapid growth, suggesting that a singular reliance on gaming is unsustainable for Macau’s long-term development. Observers anticipate that his leadership could introduce further regulatory changes aimed at encouraging economic diversification.
Tourism and entertainment events boost revenue
Beyond the Golden Week influx, additional entertainment events in Macau, including Macau Oktoberfest, hosted by MGM China, helped draw visitors toward the end of October.
In September, Macau recorded approximately 2.5 million visitor arrivals, representing 91% of pre-pandemic levels, signalling a robust recovery in tourism activity that continues to benefit the gaming sector. Macau’s tourism office expects approximately 33 million visitors in 2024, marking a projected 17% increase from 2023.
Relevant past developments and market outlook
In recent months, Macau’s casino operators have responded to shifting market dynamics and regulatory pressures with various adjustments, including a push for non-gaming operations. This has seemingly had some success, with MGM China reporting Q3 revenue growth of 14.4% year-on-year this week.
As Macau’s gaming industry continues its post-pandemic recovery, analysts anticipate a complex path forward, balancing tourism growth and regulatory shifts under the new administration’s oversight.
While recent developments point to positive momentum, the industry’s long-term trajectory will likely be shaped by ongoing efforts to diversify Macau’s economy and align with regulatory standards.
