INDUSTRY BRIEF: Macau’s gaming revenue falls for second consecutive month
Macau’s gross gaming revenue in January fell 5.6% year-on-year to 18.25 billion patacas ($2.24 billion), the Macau Gaming Inspection and Coordination Bureau announced on Monday, as the market loses momentum after a strong post-pandemic rebound. Gross gaming revenue also fell 2% year-on-year in December to 18.2 billion patacas, according to the bureau.
Macau’s gross gaming revenue for all 2024 totaled 226.78 billion patacas, up nearly 24% year-on-year. The gains were even bigger in 2023 with the lifting of China’s pandemic restrictions, with revenue more than quadrupling that year to 183.1 billion patacas.
Macau’s casino operators have been working to adjust to the city’s new gaming law, which has hurt their VIP business. In the past, gaming companies contracted operation of their VIP rooms to agents who brought in their own customers and took a cut of profits. But now such subcontracting has been banned and agents can only charge commissions instead of sharing the profits, giving them less incentive to bring in clients.
Casino operators have also suffered due to a Chinese government prohibition on soliciting customers from the Chinese Mainland. Given such constraints, Macau’s annual gross gaming revenue is likely to reach between 220 billion and 250 billion patacas this year, well below its pre-pandemic peak of 300 billion patacas.
By Lau Chi Hang
To subscribe to Bamboo Works weekly free newsletter, click here
