VIP volume in Macau shows good signs in August

The first three weeks of the month have shown that VIP volume has improved, but GGR in Macau is likely to be down in August.

Macau.- Bernstein Research has released its latest estimations, showing that VIP volume in Macau has registered better figures in the first 18 days of the month. Despite the positive estimations, gaming gross revenue (GGR) is likely to be down in August.

Bernstein said that for the month until August 18, GGR is approximately €1.6 billion. The average daily rate was €91.6 million in Macau, while ADR increased 4% for July but posted a setback of 4% from August last year.

The brokerage said that GGR was very strong last week, as it was the one before the summer holidays finish.

VIP volume rose in mid to high single digits, and mass-market revenue increase in mid-single digits. However, Bernstein said that the total GGR in August is likely to be down by two to four per cent.

July revenue results

The gambling market experienced a setback in July. As the local gambling regulator said, GGR declined 3.5% to €2.7 billion when compared to the same period last year. Last month’s results interrupted a two-month street of growth in the Chinese gambling hub.

July marked the fourth month in 2019 to register a year-on-year decline on gambling revenues. GGR for the first seven months of the year stood at €19.3 billion. This is also 0.9% down from the same period last year. Moreover, last month’s results missed the estimated 2% increase that analysts had predicted for July.

Experts say that the decline in revenues during July operations can be attributable to a decrease in VIP demand. This is due to a weaker Chinese economy, as well as the fear of a possible crackdown against junket operators.