Macau, the renowned gambling province, has reported its gaming revenue for September 2023, marking a remarkable 404% increase compared to September 2022. The region’s gaming industry has been on an upward trajectory since the Chinese Government ended its zero-Covid policy earlier in the year, leading to significant growth.
September Revenue Highlights:
In September 2023, Macau’s gaming revenue reached MOP 14.9 billion (approximately $1.84 billion), showcasing substantial growth compared to the MOP 2.96 billion recorded during the same period in the previous year. It’s worth noting that while September’s figures were impressive, they were slightly lower than the revenue generated in August.
September’s performance was also influenced by an unexpected event—a severe storm on September 1st. In response to the adverse weather conditions, the Macau Government temporarily closed six casinos. Fortunately, these establishments were able to reopen the following day.
Year-to-Date Growth:
Macau’s impressive growth throughout 2023 is evident when considering the cumulative income for the year. The region has experienced a staggering 305% increase, with a total income of MOP 128.9 billion. This figure is significantly higher than the MOP 31.8 billion recorded as of September 2022.
Despite these remarkable gains, it’s important to note that Macau has not yet reached the revenue levels seen in September 2019, when it generated MOP 22.1 billion. Nevertheless, the rapid recovery following the end of China’s zero-Covid policy demonstrates the region’s resilience.
A Deeper Look at the Recovery:
MGM China’s President & COO, Hubert Wang, emphasized that Macau’s recovery is even more promising when analyzing the details. While much of Macau’s VIP business has shifted to other destinations like Singapore and Manila, resort casinos are no longer incurring high expenses to attract VIP guests.
Wang also pointed out that Macau’s general mass market business has made a significant recovery, which is more profitable than the VIP segment. As a result, Macau doesn’t necessarily need to return to pre-pandemic revenue levels to thrive.
Macau’s gaming industry has shown remarkable resilience and growth in 2023, rebounding strongly following the end of China’s zero-Covid policy. While challenges remain, particularly in the VIP segment, the region’s focus on its mass market business signals a promising future. Macau’s ability to adapt and evolve in response to changing circumstances positions it as a key player in the global gambling market.