Macau’s casino sector has experienced a significant upturn in fortunes, with revenue for March 2024 soaring to an impressive 53.1% increase over the same month the previous year. The March revenue stood at an imposing MOP19.50bn, which not only surpassed February’s revenue by 5.4% but also matched the post-pandemic record achieved in October 2023.
This milestone, indicative of the region’s nascent recovery, is still shadowed by the performance heights from the period preceding the global crisis. In the months before the pandemic took center stage, Macau’s Special Administrative Region would typically boast monthly revenues hovering in the MOP20.00bn mid-range. Conversely, since the turn of 2020 — right before the pandemic’s onset and the ensuing restrictions — the revenue has yet to breach the MOP20.00bn threshold.
A broader view of the year ratchets up the positive trend, as revenue for the first quarter of 2024 reached MOP57.33bn, towering 65.5% over the MOP34.64bn at the same juncture last year. Moreover, this figure also comfortably eclipses the MOP42.40bn generated throughout the entirety of 2022. The comeback narrative is further bolstered by the full-year revenue for 2023, which stood at a staggering MOP183.1bn, marking a 333.8% year-on-year augmentation.
Since China concluded its zero-Covid policy in January 2023, Macau has been relieved of pandemic-related constraints. Under this new paradigm, Fitch Ratings has affirmed Macau’s AA long-term foreign currency Issuer Default Rating (IDR) and projects that the gaming sector is on course to recover to nearly 80% of pre-pandemic levels in 2024.
This projection comes with a “stable” outlook, reflecting confidence in the sustained resurgence of Macau’s economy. Fitch anticipates that gross gaming revenue will hit roughly 79.5% of the 2019 benchmarks for the current year, amounting to a 7.6% surplus over initial budgetary estimates.
The revocation of the pandemic measures has been a boon to prominent casino operators in Macau. Among them is Galaxy Entertainment Group, which reported a massive uptick in revenues, soaring 211.0% to HKD35.68bn — a triumph closely tied to the full revitalization of the Macau marketplace. For instance, the Galaxy Macau saw figures skyrocketing by 274.3% on a year-on-year basis for 2023, attributable mostly, if not entirely, to a 312.1% increase in gaming revenue.
Wynn Resorts also credited the removal of restrictions for its prosperous 2023, with Macau operations alone bringing in a 329.7% year-on-year revenue increase to $3.10bn, resulting in a group revenue jump of 73.9% to $6.53bn. Additionally, MGM Resorts International reported a 23.7% advancement in revenue, reaching $16.20bn in 2023. Macau operations have been particularly fruitful for MGM, with an astonishing revenue rise of 368.1% to $3.15bn.
Bill Hornbuckle, CEO and president of MGM Resorts International, recently attended the China Development Forum with other leading US executives, to discuss fostering the US-China relationship. Hornbuckle, in a LinkedIn post, expressed pride in MGM’s contributions to bolstering US-China connections through travel and tourism and stressed the importance of such ties in reinforcing bilateral relations.
As Macau’s casinos reel in from a nightmarish period of stagnation and disruption caused by the pandemic, the horizon is now seemingly dotted with promising signs of revival. As these establishments continue to adapt and rejuvenate, the broader economic implications are telling of a region ready to reclaim its crown as a global gaming capital.
