Macau: analysts remain optimistic about September GGR
The reopening of borders offers some hope for a rebound in gaming revenue.
Macau.- Analysts are hopeful that the reopening of Macau’s borders will help gross gaming revenue recover this month following an initial rebound in August. Bernstein expects GGR to be down 83 per cent against pre-pandemic levels but with average daily revenue 77 per cent higher than in August provided Covid-19 outbreaks in China don’t further impact travel.
J.P Morgan stated: “To state the obvious, any meaningful recovery hinges on the travel policy easing, particularly from Guangdong, and the recent lockdown in Shenzhen and flare-ups across multiple provinces do not bode well for immediate easing, in our view. This keeps us from being too hopeful for the upcoming October Golden Week.”
As of yesterday visitors from 41 countries can enter Macau without prior authorisation. The list includes Japan, South Korea, Singapore, Malaysia, Thailand, Australia, and the United States. Previously, only people coming from Portugal and mainland China were able to visit as tourists.
The share prices of several casino operators rose on the news. The shares of Melco Resorts & Entertainment Limited jumped 3.71 per cent, while Las Vegas Sands climbed 3.17 per cent, Wynn Resorts 1.55 per cent, and MGM Resorts Entertainment 0.55 per cent.
Share prices of Galaxy Entertainment and SJM Holdings were both up about 1 per cent in Hong Kong on Thursday.
Authorities have announced the maximum number of gaming tables across casinos in Macau in 2023 will be 6,000 while the maximum number of gaming machines has been set at 12,000.
The government has set the minimum annual gaming revenue expected from each gaming table at MOP7m (US$875,000) and the minimum from each machine at MOP300,000. If concessionaires are unable to meet the minimum revenue requirements, they will have to pay the government a premium for the difference between the actual revenue and the required minimum.
The commission tasked to oversee Macau’s gaming concession retender has announced the period for submitting bids will run until 5.45pm, Macau time, on September 14.
