Macau gaming industry grows 3.3% to collect MOP$17.21 billion in August 2023

Macau gaming industry grows 3.3% to collect MOP$17.21 billion in August 2023

Sustaining its growth, Macau’s casino industry pocketed MOP$17.21 billion (approximately US$2.1 billion) in gross gaming profits in the month of August 2023, up 3.3 per cent month-on-month. Compared with the casino gaming industry’s gross gaming profits of MOP$16.66 billion in July, last month’s result is quite encouraging as July’s results was the best monthly performance since January 2020. When the COVID-19 pandemic officially started in January 2020, the industry’s gross gaming profits were reported at MOP22.13 billion.

The Gaming Inspection & Coordination Bureau (DICJ) also revealed that the industry made an encouraging growth in the last month year as the GGR figure is a whopping 686 per cent higher from August 2022.

In its latest report, the DICJ underlined, “The August figure was 686% higher-year-on-year and also 3.3% higher than July’s figure of MOP$16.66 billion (US$2.06 billion), making it yet another post-COVID record for Macau’s gaming operators.”

The data shared by the DICJ also helped in calculating gross gaming income for the first eight months of current year, which amounted to MOP$114 billion (approx. roughly US$14.1 billion). The figure represents an increase of 295 per cent year-over-year. It also means that the gross gaming income of the industry has returned to 57.5 per cent of the profit for the corresponding time in 2019, which was MOP$198.22 billion or approx. US$24.5 billion.

The aforementioned growth in profits for the said month follows an event where all six concessionaires, viz. MGM Grand Paradise, Galaxy Casino, Venetian Macau, Melco Resorts (Macau), Wynn Resorts (Macau) and SJM Resorts, reported robust volumes in the premium gaming segments during their second quarter (Q2) earnings calls.

Commenting on the data, City analyst George Choi said that return of the increasing number of gaming enthusiasts in the resent weeks was the reason for the last month’s profit growth. More than 100,000 tourists paid visits to Macau casinos during the first half of last month per day, which pleasantly surprised even the government. Morgan Stanley analysts are of the view that most of the Macau concessionaires will swing back to 80 per cent of pre-COVID levels of EBITDA by the end of third quarter (Q3). MGM China is expected to surge to 120 per cent on the back of its additional gaming table games.

Foreseeing an influx of tourists to Macau, especially during the October Golden Week (Sept. 29 to Oct. 6), analysts are optimistic that the former Portuguese colony’s gaming industry will continue to growth in the coming quarters as well.

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