In the face of regulatory changes and stringent COVID-19 restrictions, can Macau‘s gambling industry recover or not?
It’s been a chaotic few years for Macau. The region has seen many ups and downs recently, with Covid-19 restrictions and regulatory changes each having a significant impact on the efficiency and effectiveness of casinos.
As of this writing, the latest stats from Macau’s Gaming Inspection and Coordination Board (DICJ) are less readable for stakeholders (see chart on page 43). Revenue in September 2022 increased by 50 degrees from the same period last year.
This follows his 398 million MOP tally in July. This is the lowest monthly tally on record (since 2003, the record currently published by city officials).
His GGR for the first nine months of 2022 is now MOP31.81 billion, up 53.0% from the first nine months of 2021.
February’s MOP7.75 billion figure is the highest for 2022 so far and the only month in which GGR grew year-on-year. January’s MOP of $6.34 billion is his second, followed by March’s MOP of $3.67 billion and May’s MOP of $3.34 billion.
Unsurprisingly, tax revenue collected by the Macau government has also dropped sharply, with the Macau Financial Services Authority reporting his MOP244.4 million in August 2022. Aggregate is down 81% from July 2021 and 93% from August.
According to the Statistics and Census Bureau (DSEC), August visitor numbers to Macau fell 19% year-on-year to 331,397, with visitor numbers to Macau continuing to underscore the battle. However, while overnight visitors increased by 18% year-on-year to 177,640, day visitors fell again, down 40% to 153,757.
Comparing all these numbers to pre-COVID-19 is understandably even more alarming. Pre-pandemic Macau’s monthly GGR was consistently above $20 billion, and Macau’s casino game revenue for the full year of 2019 was above $29 billion. This number far exceeds the $6.6 billion in revenues of its closest global competitor, Las Vegas.
However, it wasn’t until May 2021 that Macau exceeded MOP 10 billion. This is an all-time low in the region and major carriers are certainly feeling the effects, with MGM China and SJM Holdings reporting revenue declines of 46% and 25% respectively in the first half of 2022. doing.
The latest figures from Global Betting & Gaming Consultants (GBGC) show investment interest as Macau casino gross gaming revenue (GGY) fell to just MOP8 billion from MOP77 billion in the first quarter of 2018. further terrifying all groups with Q2 2022 Q4 2019 to Q2 2020 GGR fell 1 point to 96% during this period, during which the pandemic cost him 69 billion MOP$ from operators. was broken.
The initial lockdown in Macau in February 2020 was the main reason for such a sharp decline, with earnings starting to recover in the quarters that followed, but after the lockdown in July 2022, numbers were down. decreased again. But as the latest market cap shows, it’s not all doom and gloom. At least that’s true for big companies, with Las Vegas Sands (LVS) topping the list of the top 10 gaming companies in the world by market capitalization as of his mid-September.
With a market capitalization of $29.53 billion, it surpasses the likes of Flutter Entertainment and Evolution Gaming. The company’s fortunes are undoubtedly tied to Macau’s, and although LVS believes the region will indeed recover shortly (more on that below), it remains to be seen whether investors will share the good news. I do not understand. Not developed or displayed.
Another group with a strong interest in Macau is MGM Resorts, which has a market capitalization of $13.11 billion. We aim to recover…strengthen our reputation in the industry.
Wynn Resorts also made the top 10 with $7.44 billion. But like MGM Resorts, the group found themselves in a potentially dangerous situation amid growing concerns in Macau.
Meanwhile, SJM Holdings, which owns, operates, and develops casinos and integrated entertainment resorts in Macau, has a market capitalization of HK$21.87 billion (US$2.79 billion), demonstrating the size of the market. Its market cap is $29.53 billion, surpassing the likes of Flutter Entertainment and Evolution Gaming. The company’s fortunes are undoubtedly tied to Macau’s, and although LVS believes the region will indeed recover shortly (more on that below), it remains to be seen whether investors will share the good news. I do not understand. Not developed or displayed.
Another group with a strong interest in Macau is MGM Resorts, which has a market capitalization of $13.11 billion. We aim to recover…strengthen our reputation in the industry. Wynn Resorts also entered the top 10 with $7.44 billion, but like MGM Resorts, the group is in a potentially dangerous situation amid mounting concerns in Macau.
SJM Holdings, which owns, operates, and develops casinos and integrated entertainment resorts in Macau, has a market capitalization of HK$21.87 billion (US$2.79 billion), demonstrating how huge the market is.
Despite these positive signs, it is clear that for the majority of people with business interests in Macau, the landscape of Macau remains bleak and a problem that will take a long time to recover.
Changbin Wang, his professor at Macau University of Technology, told Gambling Insider that cities can recover from the pandemic, but only if border controls aren’t too strict.
“However, with crackdowns on his VIP operators in both mainland China and Macau, a return to the levels of the last two decades is unlikely.”
Meanwhile, Alidad Tash, managing director of 2NT8 Limited, provided a two-part answer, noting that the recovery is time-dependent.
“What about game earnings over the next three years? By the end of number ten? It is possible,” he said. “In terms of EBITDA, very likely within the next three years. By the end of the decade? Definitive.”
When asked about Macau’s future, Tash said:
“Macau will eventually recover, but many of its colorful expats and outlaw junkets will be missing. Unfortunately, his wild days are a thing of the past.”