Macau’s casino revenue slips 4.4% to $2.29 billion in February 2024

Macau’s casino revenue slips 4.4% to $2.29 billion in February 2024

In the dazzling realm of Macau’s renowned casinos, February 2024 revealed a revenue tale that failed to meet the expectations set by industry analysts. Despite spirited Chinese New Year celebration that drew significant footfall to Macau’s exclusive gaming establishments, the month's gross gaming revenue (GGR) slipped 4.5 per cent month-on-month.

As per newly published data, Macau casinos’ GGR amounted to MOP18.46 billion (approx. US$2.29 billion) in February. This is considerably below anticipated GGR of MOP19 billion. It also marked a 4.4 per cent downturn from the month of January.

The six thriving casino operators, the exclusive Chinese entities permitted to host slot machines and table games, navigated a month where elevated visitor numbers didn’t translate into intensified wagers on gaming offerings.

While the month of February showcased a strong surge of 79 per cent in GGR compared to the corresponding month of 2023, when Macau was still emerging from the clutches of the Covid-19 pandemic, it marked a downturn from January this year. It also remained 27 per cent lower from the heights of February 2019 when GGR touched the mark of $3.14 billion.

In the initial two months of this year, the region’s total casino revenue reached $4.7 billion, exhibiting a commendable 73 per cent year-over-year recovery. However, the figures still lingered 29 per cent below the GGR of $6.24 billion recorded in 2019 for the same period.

JP Morgan Chase & Co., an American multinational financial institution headquartered in New York City (NYC), used a recently issued note to state that Macau’s February gaming performance said demand for the casino resorts subsided after the weeklong Lunar New Year festival faster than anticipated.

Providing details, the note added, “Beijing’s crackdown on high-rolling gamblers, who previously accounted for half of Macau’s gaming revenue, means casinos have had to rely more on mass-market tourists, who are more sensitive to economic troubles.”

The economic landscape casts shadows on the Chinese SAR’s recovery prospects. China’s uneven pandemic rebound, coupled with concerns about dwindling manufacturing and economic activities, raises questions about the sustainability of the casino industry's resurgence. A noted shift in revenue dynamics, with casinos relying more on mass-market tourists due to Beijing's clampdown on high-rolling gamblers, underscores the challenges ahead. As the future of Macau's gaming domain hangs in the balance, navigating economic uncertainties is pivotal for restoring its former glory.

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