Macau GGR for 2022 could be “closer to 2020 than 2021”

The new outbreak of Covid-19 cases in Macau has lowered the expectations of recovery for gaming revenue in the medium term.

Macau.- As the number of new Covid-19 cases in Macau continues to rise, analysts believe that gross gaming revenue for 2022 could turn out to be even lower than forecast. Alidad Tash, a gaming expert and managing director of 2NT8, told Macau News Agency 2022 GGR 2022 is now likely to be closer to 2020 than 2021.

In 2020, the city reported a fall of 79.3 per cent in gross gaming revenue from the previous year to MOP60.4bn (US$7.5bn). In 2021, Macau reported full-year gross gambling revenue of MOP86.86bn (US$10.82bn), up 43.7 per cent when compared to the previous year.

The majority of analysts had been expecting 2022 to be a better year than 2021, with some predicting Macau could reach 40 per cent of 2019 levels. Morgan Stanley Banking Group predicted that casino GGR in 2022 and 2023 could reach 42 per cent and 70 per cent of pre-pandemic 2019 levels, respectively. 

However, the first five months of the year saw lower-than-expected revenue. In April, the city recorded its lowest level of GGR since September 2020. Macau’s GGR for the first five months of 2022 combined stands at MOP23.79bn (US$2.95bn), down 44 per cent year-on-year. This month’s gross gaming revenue may reach only 9 per cent of 2019 levels.

Casinos remain open despite the outbreak, but operators have been ordered to request a negative Covid-19 test result issued within the previous 48 hours from all visitors. Customers will also have their body temperature taken and must present a health-declaration statement.