Macau’s casino industry demonstrated significant recovery in 2024, with gross gaming revenue (GGR) reaching MOP226.78 billion (US$28.34 billion), a 23.9% increase from the previous year. This growth reflects the city’s ongoing rebound from the COVID-19 pandemic, aided by the reopening of international borders in early 2023. Despite a strong year overall, December posted a 2% year-on-year decline, bringing in MOP18.20 billion (US$2.28 billion), down from November’s MOP18.44 billion (US$2.31 billion).
The 2024 annual GGR outpaced the Macau government’s forecast of MOP216.0 billion, as detailed in the year’s fiscal budget. This figure represents 77.5% of the 2019 pre-pandemic levels when GGR reached MOP292.45 billion (US$36.7 billion). The recovery is credited to a restructured operating environment for casino concessionaires, which has minimized dependence on junket commissions while emphasizing the mass market and premium segments.
December’s weaker performance, ranking as the third-lowest month of the year, coincided with Chinese President Xi Jinping‘s visit to Macau. His presence during the inauguration of Chief Executive Sam Hou Fai disrupted border activity and visitor flow, contributing to the subdued gaming revenue.
Future Growth and Projections
Looking ahead, the Macau government has forecasted GGR to reach MOP240 billion (US$30.1 billion) in 2025, an increase from 2024’s performance. This estimate aligns with the optimistic outlook expressed by former Chief Executive Ho Iat Seng, who described the projection as “conservative” and “achievable,” according to GGRAsia. The new administration under Chief Executive Sam Hou Fai continues to support this vision of growth.
In addition to overall GGR, Macau anticipates higher tax revenue from junket commissions in 2025, projecting a 233.3% increase to MOP100 million, compared to MOP30 million in 2024.
The continued revival of Macau’s gaming industry also highlights the second year of operation under revised gaming licenses for its six concessionaires. These changes have pushed operators to refine their strategies, moving away from junkets and focusing on diversifying gaming experiences and strengthening the premium mass market.
Visitor Arrivals Boost Revenue Recovery
Macau’s recovery extends beyond gaming, as visitor arrivals for 2024 approached 35 million, exceeding the initial forecast of 33 million, according to Asia Gaming Brief. The resurgence in tourism has played a critical role in boosting the city’s economic activity, allowing Macau to emerge from the pandemic-induced stagnation of previous years.
Investment bank Morgan Stanley predicts “slight but steady” growth for Macau’s gaming industry in 2025, fueled by the ongoing adaptation to post-pandemic operations and robust visitor numbers. The government and casino operators remain optimistic, anticipating another year of solid performance in the world’s largest gambling hub.
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Johnny K. 2025-01-02 12:10:15
