Macau GGR to rise 28% year-on-year in 2024, analysts say

Morgan Stanley predicts that GGR will reach 80 per cent of pre-pandemic levels.

Macau.- Morgan Stanley has predicted that Macau’s gross gaming revenue will rise 28 per cent year-on-year in 2024 and reach 80 per cent of pre-pandemic levels. Morgan Stanley predicts that Macau’s January GGR will be MOP18.8bn, about 75 per cent of the 2019 level. 

It thinks mass GGR in Q4 2023 was up 9 per cent quarter-on-quarter, reaching 103 per cent of the 2019 level. It is estimated that industry property EBITDA for the fourth quarter was up 11 per cent on a quarterly basis at MOP2.1bn (US$16.9bn), marking a recovery to 85 per cent of pre-Covid-19 levels.

For 2023 as a whole, Macau’s GGR was MOP183.06bn (US$22.75bn). That represented 62.5 per cent of the 2019 figure. December GGR was up 16 per cent month-on-month at MOP18.56bn (US$2.3bn).

Morgan Stanley expects a rise in operating and capital expenses for Macau’s gaming industry in 2024, driven by wage increases and committed investments. Analysts also expect gaming companies to implement a 2-3 per cent wage increase while maintaining the 13th-month salary bonus, following the government lead.

Operating expenses may also rise due to non-gaming investment and competition for gaming hosts/sales.