Macau casino operators will take up to 6 years to return to 2019 revenue, analyst says
That’s the forecast of gaming consultant Alidad Tash.
Macau.- In a breakfast talk held by the France Macau Chamber of Commerce (FMCC) at Sofitel Macau At Ponte 16, gaming consultant Alidad Tash said it will be six to nine years before Macau casino operator’s revenue returns to 2019 levels. Combined revenue in 2019 was MOP292bn (US$36.5bn).
Tash predicted that the industry will attain between 40 and 55 per cent of 2019 levels this year. He believes operators’ profitability will return to pre-pandemic levels within two to four years.
While acknowledging that the post-reopening market situation has exceeded everyone’s expectations over the past one and a half months, he raised concerns about the premium mass and premium direct segments
According to Macau Business, he said: “What I see is great news on the mass side. What I’m worried about is that premium mass, premium direct that are more of a question.”
He cited two major questions: when high rollers will return and “how will they get the money?”. The latter is due to controls on cross-border capital flows and China’s crackdown on underground financial networks over the past three years.
In January 2023, Macau’s gross gaming revenue reached MOP11.6bn (US$1.4bn), representing 52.5 per cent of January 2020. Daily gross gaming revenue in Macau last week stood at around MOP400m (US$49.5m), according to J.P. Morgan.