The Gaming Inspection and Coordination Bureau of Macau has released the gaming revenue figures for October 2023, marking a significant milestone in the region’s post-Covid recovery. With a monthly gross income of MOP$19.5 billion ($1.99 billion), October showcased a remarkable 30% increase from the previous month and stands as the highest monthly gross income of the year.
The Road to Recovery:
To comprehend Macau’s gaming revenue trajectory, a five-year overview is necessary. In 2019, October’s revenue reached MOP$26.4 billion, reflecting the region’s pre-Covid-19 financial health. However, during the pandemic, strict sanctions were imposed, significantly impacting Macau’s gambling earnings.
Notable Yearly Changes:
While October 2023 marked a substantial recovery, it wasn’t the most impressive year-over-year change. That distinction goes to July, with a staggering 4000% increase in monthly gross income from July 2022 to July 2023.
Steady Growth:
Macau has exhibited steady growth in its monthly gross income, climbing from MOP$11.58 billion in January to MOP$15.2 billion in June, culminating in the impressive MOP$19.5 billion for October. This consistent growth raises questions about the region’s potential to return to its pre-Covid status.
A Path to Pre-Pandemic Levels:
While there is still ground to cover in terms of recovery, Macau’s October 2023 revenue would need to increase by over 35% to match the levels of October 2019. However, considering the substantial 400% increase in gaming revenue compared to the previous year, achieving this additional growth to reach the 2019 benchmark appears relatively attainable.
Insights from MGM China President & COO:
MGM China’s President & COO, Hubert Wang, highlighted the increased profitability of the mass market. This profitability has reduced the necessity to match past revenue totals precisely, suggesting that the industry’s focus may be shifting towards optimizing profitability rather than replicating pre-pandemic figures.
Macau’s gaming revenue trends paint an encouraging picture of recovery after the challenges posed by the Covid-19 pandemic. The industry’s resilience and consistent growth are evident, with the potential to approach pre-pandemic levels becoming increasingly realistic. While there are still hurdles to overcome, the road to recovery seems well on its way, offering hope for a revitalized and robust gaming market in Macau.