Macau’s gaming revenue boom roars on with another estimate beat
[MACAU] Macau’s gaming revenue rose 19 per cent in July, exceeding analyst expectations for the fourth consecutive month as big bettors’ growing appetite for spending injects new momentum into the recovery of the world’s biggest gambling hub.
Gross gaming revenue reached 22.1 billion patacas (S$3.6 billion) for the month, according to data released by the Gaming Inspection and Coordination Bureau on Friday (Aug 1). The result surpassed the median analyst estimate of a 13 per cent year-on-year increase and has returned to 90 per cent of the pre-pandemic level in 2019 – the strongest post-Covid recovery so far.
The cyclonic storm that swept through during a mid-month weekend did not appear to affect gamblers’ appetite for betting, Citigroup analyst George Choi wrote in a note. A survey conducted by Citi near the typhoon weekend found that premium bettors spent 32 per cent more at gaming tables than during the same period last year.
Macau’s pace of gaming revenue recovery has picked up in recent months, with casino operators rolling out a series of concerts and entertainment shows to attract more visitors from the mass tourism market.
Meanwhile, sentiment among premium players has also been improving amid a bullish stock market in Hong Kong and mainland China.
Macau reported about 2.9 million visitor arrivals in June, returning to 93 per cent of the pre-pandemic level in 2019. The city will release July’s figures later this month.
Casino operators including Sands China, Galaxy Entertainment Group, and MGM China Holdings have introduced more luxury hotel rooms, adding attractiveness for the city.
Macau’s performance in the coming months will test the strength of its gaming recovery, as uncertainties over China’s broader economic slowdown and global trade tensions loom. Many big bettors are in the real estate and trade industries, which have been hit by these headwinds.
The Bloomberg Intelligence index of Macau casino operators rose 21 per cent in July, while the benchmark Hang Seng Index gained about 3 per cent. BLOOMBERG
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