Fitch: Macau’s gaming sector won’t see full recovery until beyond 2024

Analysts at Fitch Ratings Inc have predicted that Macau’s gross gaming revenue will only reach 70 per cent of 2019 levels in two years’ time.

Macau.- According to Fitch Ratings Inc, continued Covid-19 cases in China and regulatory uncertainty mean that gross gaming revenue will reach only to 70 per cent of 2019 levels in two years’ time. They warned that as well as well as China’s likely continuation of its zero-Covid policy, slower economic growth could also affect gaming in Macau.

Local gaming expert Wang Changbin has predicted that China’s zero-Covid policy is likely to continue until 2023, which means a continued drawn-out recovery for Macau’s gaming industry. A new outbreak of Covid-19 has been detected in neighbouring Guangdong. Against this backdrop, access to funding for gaming operators is likely to remain limited.

Macau’s GGR for the first nine months of 2022 combined stands at MOP31.82bn, down 53.1 per cent year-on-year. In September, gaming revenue was MOP2.96bn (US$366.3m).

Citigroup cuts predictions for Macau’s GGR in October to US$680.2m

Analysts at Citigroup have reduced their estimates for Macau’s October GGR. Citigroup had previously predicted that Macau’s GGR could reach MOP7.0bn (US$865.7m). However, analysts now forecast MOP5.5bn (US$680.2m) due to weak revenue during October Golden week.

Citigroup also stressed the daily average casino GGR in Macau during the national holiday period was lower than the MOP200m a day during the Labour Day holidays in May. Revenue was also lower than that recorded during the Chinese New Year holiday period from late January to early February.