Macau’s gross gaming revenue (GGR) hit a significant milestone in early 2024, reaching US$2.4 billion. This strong result represents an impressive comeback, accounting for 77% of the GGR that was reported in January 2019, prior to the pandemic upsetting world economies.
The local authority for Macau, the Gaming Inspection and Coordination Office (DICJ), released data for January 2024 that showed a significant increase in GGR. Comparing the reported total to January 2023, there has been a noteworthy 67% increase. Notably, this accomplishment not only represents a rebound from pandemic-related setbacks but also exceeds the GGR realized in 2023.
Consistent Growth Compared to Previous Months
January saw a 4% rise over December 2023, when GGR was recorded at US$2.3 billion. Remarkably, only October 2023 repeated January 2024’s stellar performance, indicating Macau’s gaming industry’s constancy.
After dealing with difficulties and limitations brought on by the epidemic for over three years, Macau had a dramatic recovery in 2023. It was a significant year since it was the first time that the six concessionaires in the area received fresh gaming licenses.
In 2023, Macau’s casinos made a calculated shift to a mass-market strategy in response to a shifting environment. This change was made in an effort to draw in more customers, with an emphasis on luring in overseas gamblers. Macau’s comeback as a popular gaming destination may be attributed in part to the model’s flexibility and creative ideas.
Morgan Stanley offers an optimistic outlook, predicting that Macau’s mass-market gross gaming revenue will exceed 120% of pre-pandemic levels by the end of 2024. This projection underlines the resilience and adaptability of Macau’s gaming industry.
Macau’s operators will have a responsibility starting in 2023 with the issuance of new casino licenses. The six concessionaires are required to raise non-gaming expenses by a maximum of 20% if the yearly GGR exceeds or equals US$22.4 billion.
The Macau authorities have been cautious when establishing growth criteria and have not revealed specific obligations for businesses after the specified financial milestone. This circumspect approach shows a dedication to striking a balance between expansion and regulatory concerns.
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