A Macau gaming industry academic has suggested Macau’s gross gaming revenue could reach as high as MOP$190 million (US$23.7 billion) in 2023 after the DICJ this week revealed yet another post-pandemic high in July.
As reported by Inside Asian Gaming, Macau GGR reached MOP16.66 billion (US$2.06 billion) in July, an increase of more than 4,000% year-on-year and 9.6% higher than June, when total gaming revenue stood at MOP15.21 billion (US$1.89 billion).
The strong result has academics predicting significantly higher FY23 results than had been modelled earlier, with revenues reaching as high as 70% of 2019 levels or MOP$190 billion. Revenues are almost certain to comfortably exceed the government’s estimates of MOP$130 billion (US$16.2 billion).
In an interview with IAG, Macao Polytechnic Institute Professor Dr Zhonglu Zeng noted that GGR for the first seven months of 2023 combined recovered to about 56% of 2019 levels, but July saw revenues reach 68%.
“The recovery of Macau’s gaming revenue is related to the number of tourists. July is a summer vacation month and there are more people, so the gaming revenue increased in July,” he explained.
“The number of tourists in June recovered to 71% of the June 2019 figure, although the recovery of gambling revenue is obviously slower than the number of tourists, so there is space for an increase in gambling revenue in the coming months.”
Dr Zhonglu stated that MOP$190 billion was now a realistic goal, even if it will take some time for gaming revenues to match the broader tourism recovery.
“I believe that the number of tourists will continue to rise, which will lead to an increase in gambling revenue in the future, but the rate of increase will not be as fast as the growth of tourists. This year is expected to see a return of about 60% to 70% of 2019’s gambling revenue,” he said. Macau’s GGR in 2019 was MOP$292.5 billion (US$36.5 billion).
While Dr Zhonglu also issued caution over the current state of the VIP gaming market, Macau junket representative U Io Hung told IAG that the situation had improved considerably as more concessionaires begin cooperating with junkets.
“Galaxy and Melco are cooperating with the junkets, which have started [returning to] casinos, and Wynn has even reorganized VIP halls, which is more conducive to attracting more people to [the segment],” he said.
“Business has doubled compared to January.”
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