Macau's casino earnings for August reached MOP19.8 billion (US$2.47 billion). The August draw increased by 14.8% compared to last year and by 6.2% from July. 

The gross gaming revenue (GGR) figures from the city’s Gaming and Inspection Coordination Bureau represent approximately 81.5% of the pre-pandemic levels seen in August 2019, when the six commercial casino operators collectively earned just over $3 billion. 

August marked Macau's second-best month since Chinese President Xi Jinping ended "zero-COVID" in late 2022, permitting a degree of normalcy to resume in the world's second-most populous nation and second-largest economy. Macau operates under Chinese governance via the “one country, two systems” principle, which is implemented in the People’s Republic’s two Special Administrative Regions (SAR) — Macau and Hong Kong. 

 

August Fulfills Anticipations 

Macau’s GGR for August met the forecasts set by analysts. Citigroup projected August revenue at MOP20 billion, whereas JPMorgan anticipated an August win of approximately MOP19 billion to MOP19.5 billion. 

On the surface, August appeared to indicate a recovery in gaming, as casinos shift focus from the VIP segment to the broader market. The operators didn’t desire a refocus, but they were compelled to comply when Xi’s Beijing directed the Macau SAR Government to eliminate junket groups that served mainland high rollers. 

Nevertheless, there is additional information regarding the August 2024 revenue narrative. August enjoyed 14 Fridays, Saturdays, and Sundays, while August 2023 had only 12. July 2024 included 12 weekend days as well. 

However, due to a robust August, the GGR for the first eight months of 2024 reached MOP152.1 billion (US$18.92 billion). This marks a 33% increase compared to the same timeframe in 2023 and accounts for nearly 78% of the pre-pandemic figures from January to August 2019. 

 

Market Challenges 

Macau’s gaming sector experienced significant transformation during the pandemic. In late 2022, the six concessionaires consented to invest $16.2 billion into non-gaming projects at their resorts in return for new gaming licenses valid for 10 years. 

Only a month later, the conditions turned more disadvantageous for the licensees when Suncity leader Alvin Chau was convicted of orchestrating a criminal organization and enabling unlawful gambling. Known as the “Junket King” for overseeing approximately a quarter of Macau's junket sector, Chau's 18-year prison sentence in China caused most VIP groups to migrate to more advantageous markets such as Vietnam, the Philippines, and South Korea. 

Macau’s upcoming chief executive might intensify pressure on the city’s casino sector. As Chief Executive Ho Iat Seng is not running for reelection due to health issues, former Court of Final Appeal President Sam Hou Fai is the favorite to become Macau’s highest government official. 

Sam recently shared his view that Macau should broaden its economy beyond gaming. Casinos still represent over 80% of the area's tax revenue.

"During a media briefing last week, Sam said that the casino industry “developed in a disorderly manner” and has “expanded wildly.” He opined that “having one dominant industry is not beneficial” for the city’s long-term development.

Sam thinks the casino's control has caused a narrow focus for Macau's youth, leading them to believe their only job option is in gaming.