Macau’s mass gaming tables continues to increase their market share, accounting for 75.2% of total table revenue in 4Q23 – up from 74.4% in the September 2023 quarter and from 52.7% in 4Q19.
According to figures released by the Gaming Inspection and Coordination Bureau (DICJ), the 4Q23 figure included mass market baccarat revenue of MOP$33.5 billion (US$4.15 billion), representing 61.8% of the total MOP$54.3 billion in revenues generated by Macau’s gaming operators for the quarter. This was again up from its 58.9% share in 3Q23.
Conversely, VIP baccarat revenues of MOP$12.7 billion (US$1.57 billion) accounted for just 23.4% of Macau-wide GGR, down from 24.0% in Q3 and from 44.7% in 4Q19.
In a note, Deutsche Bank analyst Carlo Santarelli observed that total mass GGR in 4Q23, inclusive of slots, grew by 4% relative to 2019 but was also 11.8% higher quarter-on-quarter as Macau’s recovery continues in earnest. VIP GGR was also up 7.9% quarter-on-quarter but down 60.7% versus 4Q19.
He also noted that the number of tables operating in the market was up 7.0% year-on-year but down 11.0% versus 4Q19, while the slot machine was up 11.4% year-on-year but down 29.4% versus 4Q19.
As reported by IAG, Macau’s shifting market dynamics come in the wake of mainland China’s war on cross-border gambling and the collapse of Macau’s junket industry following the arrests of former Suncity Group CEO Alvin Chau in November 2021 and Tak Chun Group CEO Levo Chan in January 2022.
The Macau government has also updated its junket law, with each junket now only permitted to work with one concessionaire, unable to operate their own VIP rooms within casinos and not permitted to engage in revenue share agreements with operators.
As a result, concessionaires are increasingly shifting their focus to the lucrative premium mass segment, which offers considerably higher margins than the old junket model, while VIP operations are increasingly leaning towards a direct VIP model.
