Macau has witnessed a remarkable resurgence in its gaming industry, reporting a staggering gross gaming revenue (GGR) of MOP$183.1 billion (US$22.7 billion) in 2023. This impressive 334% year-on-year increase marks a significant recovery since the reopening of borders after nearly three years of closure.
Phenomenal Year-End Performance:
The fiscal year 2023 concluded on a high note, with December recording GGR of MOP$18.57 billion (US$2.30 billion).
December’s figures exhibited a remarkable 433% year-on-year increase and a 15.7% month-on-month surge compared to November.
This robust performance in December solidified it as the second-highest revenue month of the year, following closely behind October.
Recovery to 2019 Levels:
The cumulative gaming revenues for 2023 have rebounded to 62.6% of the 2019 levels when GGR reached MOP$292.5 billion (US$36.3 billion).
This resurgence signifies a substantial recovery for Macau’s gaming sector, indicating positive momentum in the industry.
Significance for Concessionaires:
The FY23 GGR exceeding MOP$180 billion holds significance for the city’s six concessionaires.
The 10-year gaming concessions, inked by all operators in December 2022, outlined a provision for a 20% increase in non-gaming investment commitments if Macau-wide GGR surpasses MOP$180 billion in any of the initial five years of the new concession period.
This “trigger event” has been realized in the inaugural year of the new concessions, setting the stage for a substantial boost in non-gaming investments.
Concessionaires’ Commitments:
Macau’s six concessionaires had previously committed to allocating a combined MOP$108.7 billion in non-gaming investment over the 10-year period of their current concessions.
These commitments, spanning from January 1, 2023, to December 31, 2032, indicate a strategic focus on diversifying and enhancing the non-gaming aspects of Macau’s integrated resorts.
Macau’s exceptional gaming revenue performance in 2023 not only signifies a robust recovery in the industry but also triggers significant non-gaming investment commitments from concessionaires, reinforcing a comprehensive approach to the city’s integrated resort development.