Macau’s gross gaming revenue (GGR) for June dropped to MOP17.7 billion (€2 billion), marking a 12.4 percent decline from May’s MOP20.19 billion (€2.34 billion), according to the Gaming Inspection and Coordination Bureau (DICJ). This represents the lowest monthly total since November 2023.
Year-on-year comparison??
Despite the month-on-month decrease, June’s GGR reflected a 16.4 percent increase from the same period last year. However, it is still significantly lower than pre-pandemic levels, showing a 25.7 percent decrease from the MOP23.8 billion (€2.76 billion) reported in June 2019.
In the first half of 2024, Macau’s casino GGR reached MOP113.8 billion (€13.20 billion), a 41.9 percent increase compared to the previous year. However, this figure remains 23.9 percent below the MOP149.50 billion (€17.35 billion) recorded during the same period in 2019.
Factors influencing the decline???
Analysts attribute the decline in June’s GGR to several factors, including the seasonal post- “May Day” holiday slowdown and the impact of the UEFA Euro 2024 football tournament. Additionally, a low VIP win rate in Macau’s casinos contributed to the lower revenue.
Meanwhile, in June, brokerage firm CLSA revised its GGR forecast for Macau to MOP239.9 billion (€27.8 billion) in 2024.
Public holiday and market conditions??
June only had the Dragon Boat Festival on June 10th as a public holiday, insufficient to sustain higher gaming revenues. Investment banks have also pointed out that the ongoing Euro 2024 matches influenced the decrease in gaming activities.
Last week, Macau’s tourism authorities set a goal to attract 33 million visitors in 2024, marking a nearly 17 percent increase from 2023. Helena de Senna Fernandes, Head of the Macao Government Tourism Office (MGTO), said this optimistic projection is driven by China’s expansion of the Individual Visit Scheme (IVS), which now includes 10 additional Chinese cities.
While Macau’s GGR shows signs of recovery from the COVID-19 pandemic, the monthly fluctuations highlight ongoing challenges. The significant year-on-year increase is a positive indicator, but the revenue is still below pre-pandemic levels, underscoring the need for continued monitoring of market conditions and external factors.?
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