Macau’s gaming industry has experienced a notable resurgence in the mass market segment, reaching 95% of pre-COVID levels in the third quarter of 2023, as reported by Deutsche Bank analyst Carlo Santarelli. The recovery of the mass market has driven total Gross Gaming Revenue (GGR) for the quarter to 69% of Q3 2019 levels, demonstrating a remarkable 771% increase compared to the same period last year.
Mass Market Gaming Revenues Surge:
Macau’s mass market gaming revenues achieved an impressive recovery, reaching 95% of pre-COVID levels in Q3 2023. This substantial increase of 771% over the same period last year highlights the resilience and revival of the mass gaming segment.
Total GGR Recovery and VIP Segment Challenges:
The recovery in the mass market segment has driven the total GGR for the quarter to 69% of Q3 2019 levels. However, the VIP segment lags behind, sitting at just 23%, contributing to the overall challenges faced by this high-roller segment.
Industry-Wide Property EBITDA Performance:
Industry-wide Property EBITDA rebounded to 80% of pre-COVID levels for the quarter, totaling US$1.80 billion. Margins improved to 29.3%, compared to 29.0% in Q3 2019, showcasing effective cost management and operational efficiency.
Market Share Dynamics in Mass and VIP Segments:
Notably, five concessionaires—Galaxy, Melco, MGM, Sands, and Wynn—gained market share in the mass gaming segment. This shift in market share was at the expense of SJM Holdings. On the VIP side, GGR share was gained by SJM, Galaxy, Wynn, and MGM, with Melco and Sands experiencing a decline.
VIP Rolling Chip Volume Analysis:
Examining VIP rolling chip volume, Galaxy, Melco, and SJM gained share, while Sands, MGM, and Wynn witnessed a decrease. This dynamic highlights the shifting landscape of VIP gaming in Macau during Q3 2023.
Mass Baccarat Tables Dominate Gaming Revenue:
According to figures released by the DICJ in October, mass baccarat tables accounted for 60.8% of all gaming revenue in Q3. This signifies the significance of the mass market in contributing to Macau’s overall gaming revenue.
Macau’s gaming industry, driven by a robust recovery in the mass market segment, has made significant strides towards pre-pandemic levels. The resilience showcased in the mass market, coupled with strategic efforts by key concessionaires, has contributed to the overall revival of the industry. As Macau continues to navigate challenges and opportunities, the focus on both mass and VIP segments will be crucial for sustained growth and prosperity in the gaming hub.