Gaming analysts divided on significance of June GGR results in Macau
Macau’s June results have sparked debate on the sector’s recovery.
Macau.- Analysts specialising in Macau’s gaming industry are divided following the release of June’s gaming results. The Gaming Inspection and Coordination Bureau (DICJ) reported that the city’s gross gaming revenue (GGR) was down 2.3 per cent in month-on-month terms, from MOP15.57bn to MOP15.21bn (US$1.88bn), but up 513.9 per cent from June 2022.
Macau’s casino GGR for the first half of 2023 was MOP80.14bn (US$9.93bn), representing year-on-year growth of 205.1 per cent. While some experts view the results as promising, others express caution, suggesting a potential “plateau” in the mass-driven rebound.
Alidad Tash, the managing director at 2nt8 Limited, told Macau Business that the June results were encouraging, considering that this month typically experiences lower visitation and gaming activity. He said that as transportation gradually returns to pre-pandemic levels, the introduction of non-gaming initiatives like concerts and new hotel offerings are attracting higher occupancy rates, and gross gaming revenue for the second half is expected to see a gradual improvement.
Tash anticipated the industry will reach 60 per cent of its pre-pandemic 2019 levels. First-half gross gaming revenue has already accounted for 61 per cent of the government’s full-year forecast of MOP130bn.
Carlo Santarelli, an analyst at Deutsche Bank, pointed out that although GGR showed a month-to-month decline, average daily revenue rose by 1 per cent from May.
On the other hand, Ben Lee, the managing partner of IGamiX Management Consulting, noted that June marked the first month without month-on-month growth since February, leading to speculation that the sector’s mass-driven recovery may have levelled-off.
Lee attributed this to the end of the Macau Government Tourism Office’s promotions, which included free accommodation and travel incentives, as well as an unexpected return of some junket activity. Tourism authorities continue to implement various initiatives to attract visitors, including collaboration with airlines to offer flight ticket discounts. But although Macau recorded a daily average of over 70,000 tourists in June, arrivals from beyond China accounted for less than 6 per cent.
