The Financial Services Bureau’s latest reports confirm that the growth trajectory of the Macau gaming industry, observed in the first quarter of 2023, extended into April. According to Inside Asian Gaming, Macau government’s gaming tax revenue collection in April stood at an impressive MOP$4.95 billion (US$613 million), a whopping 237% increase compared to the same period last year.
Rapid Revenue Growth for Casino Industry
This growth in gaming tax revenue, a significant jump from the MOP$1.47 billion (US$182 million) collected in April 2022, is reportedly due to the acceleration of the Macau gaming industry across all its concessionaires and land-based operators. The sector saw gross gaming revenues escalate from MOP$12.74 billion (US$1.58 billion) in March to MOP$14.72 (US$1.82 billion) in April.
Given that the tax figures for April reflect the gross revenue for March, the Macau casino industry revenue for April could potentially contribute about 15% more tax revenue in May compared to the previous month. However, the exact figures for May remain to be released.
Strong Start for Macau Gaming Industry in 2023
Year-to-date, the Macau government’s gaming tax revenue stands at MOP$15.1 billion (US$1.87 billion), marking a 48% increase over the revenue accumulated in the first four months of 2022. This figure also signifies 29.6% of the government’s MOP$50.85 billion (US$6.30 billion) budget for the financial year 2023.
Furthermore, out of the total revenue of MOP$20.1 billion (US$2.49 billion) generated by the Macau government in April, the gaming tax contributed a hefty 75.1%.
From Pandemic Recovery to Record-Breaking Revenue
This remarkable growth in April continues the positive trend from the best first quarter experienced by the Macau casino industry in the past three years. Following severe disruptions due to the COVID-19 pandemic and subsequent restrictions, the region reopened its gaming facilities on January 8, 2023. This reopening led to an immediate industry resurgence, resulting in over 80% year-on-year growth in January itself. The easing of arrivals from mainland China, Hong Kong, and overseas further propelled this growth.
The first quarter of 2023 saw a surge in gross gaming revenue by 94.9% compared to the same period in the previous year, tallying MOP$34.6 billion (US$4.29 billion). The April revenues, amounting to US$1.82 billion, represented around 42% of the total gaming revenues generated in the first quarter of 2023, thereby contributing US$613 million in tax revenues. With revenue levels already 23% higher than March, further month-on-month growth is expected, based on the promising April revenue figures.
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