Macau gaming revenue beats estimate on premium player enthusiasm
The mainland’s recurrent crackdowns on capital outflow could continue to pose regulatory risks on Macau casinos
[MACAU] Macau’s gaming revenue rose 14.4 per cent in November, exceeding analysts’ expectation as the world’s biggest gambling hub continues to draw big bettors with perks and events.
Gross gaming revenue reached 21.088 billion patacas (S$3.4 billion) for the month, according to data released by the Gaming Inspection and Coordination Bureau on Monday (Dec 1).
The result was better than the median analyst estimate of a 10.5 per cent year-on-year increase, and has returned to 92 per cent of the pre-pandemic level in 2019.
While November is typically one of the slowest months for Macau casino operators, premium gamblers still showed signs of strong spending sentiment, according to a Citigroup survey conducted mid-month.
The number of big bettors grew 5 per cent from the same period last year, with their combined betting surging 19 per cent, analyst George Choi wrote in the note.
Macau reported 3.5 million visitor arrivals in October, up 10.8 per cent from the year before. The city will release data for November later this month.
After China cracked down on VIP gamblers, Macau casino operators have resorted to giving out more freebies and organising major events to attract mass-market customers and encourage them to spend. These efforts have contributed to months of gaming boom this year.
“The star-studded event and concert lineup over the past three years has been a major driver to propel visitation and gross gaming revenue recovery in Macau, successfully transforming Macau into a city of entertainment,” Choi said. “Concerts and events will remain an important booster.”
Still, China’s broader economy and retail sales remain weak, which could add uncertainty to the sustainability of the gaming recovery.
The mainland’s recurrent crackdowns on capital outflow could also continue to pose regulatory risks on Macau casinos.
The Bloomberg Intelligence index of Macau casino operators rose 4 per cent in November, while the benchmark Hang Seng Index fell 0.4 per cent. BLOOMBERG
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