Macau gaming revenue beats estimate on Chinese New Year boom
Gross gaming revenue reaches 20.62 billion patacas for February
Add BT as a preferred source
[MACAU] Macau’s gaming revenue rose a stronger-than-expected 4.5 per cent in February, as the world’s biggest gambling hub benefited from a Chinese New Year tourism boost.
Gross gaming revenue reached 20.62 billion patacas (S$3.2 billion) for the month, according to data released by the Gaming Inspection and Coordination Bureau on Sunday (Mar 1). The result was better than the median analyst estimate of a 1 per cent year-on-year increase, with revenue returning to 81.3 per cent of the pre-pandemic level in 2019.
Macau ramped up entertainment offerings during the nine-day Chinese New Year break in mainland China – its largest source of visitors – staging float parades, drone and firework shows, markets and concerts. That helped draw tourists and supported strong spending by premium players.
Macau casinos are facing a squeeze on profit margins due to intense competition for mass-market players that has seen operators lavishing out perks and incentives, pushing up operating costs.
The shift followed China’s crackdown on high rollers to curb capital outflow, which diminished the city’s VIP sector that used to contribute about half of its gaming income.
The VIP clients were brought in by junket agents who afforded their own marketing costs, which eased operating pressure on casino operators. Most of the junkets have ceased operation after a gaming law revision rendered their model unfeasible.
Navigate Asia in
a new global order
Get the insights delivered to your inbox.
Reining in costs while still maintaining their appeal to gamblers will be one of the key challenges for casino operators this year. Gaming revenue may also see limited room for further growth as China’s broader economy remains weighed down by a property market slump, high youth unemployment rate and global trade conflicts. BLOOMBERG
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
