Macau’s gaming industry has kicked off 2024 with impressive momentum, as reported by the Gaming Inspection and Coordination Bureau (DICJ), showcasing a gross gaming revenue (GGR) of MOP$19.33 billion (US$2.40 billion) in January. This positive start follows a year of recovery in 2023, where Macau’s GGR reached 63% of pre-COVID levels at MOP$183.1 billion (US$22.7 billion).
January 2024 Performance:
In January 2024, Macau witnessed a 4.1% increase in gaming revenues compared to December 2023, setting the stage for a promising year. The reported GGR of MOP$19.33 billion reflects a substantial 67% growth compared to January 2023. However, despite this encouraging start, the figures still stand 34.3% below the January 2019 GGR of MOP$29.4 billion (US$3.65 billion).
Comparison with 2023:
The year 2023 marked a significant recovery for Macau’s gaming industry, reaching 63% of pre-COVID levels. Notably, only October outperformed January 2024 in terms of GGR. This resurgence sets the tone for continued growth in 2024, fueled by various factors contributing to the industry’s revival.
Projections for 2024:
Morgan Stanley’s optimistic prediction suggests a 28% year-on-year growth in Macau-wide GGR for 2024, bringing it to approximately 80% of pre-COVID levels. The forecast anticipates greater profitability, attributing it to the industry’s strategic shift from a VIP-focused model to one emphasizing mass-market gaming. This transition is expected to yield positive results throughout the year.
Shifting Focus: From VIP to Mass Gaming:
A significant revelation by the DICJ indicates a noteworthy shift in the gaming industry’s focus. Mass gaming tables accounted for 75% of the GGR in the fourth quarter of 2023, a substantial increase from the 53% reported in the same period in 2019. This shift underscores the adaptability of Macau’s gaming operators, aligning their strategies with changing market dynamics and preferences.
Macau’s gaming industry has begun 2024 on a high note, with January’s robust performance setting the stage for a promising year. The recovery from the challenges posed by the COVID-19 pandemic in 2023 and the strategic shift towards mass gaming positions Macau as a resilient and adaptive market. As the industry continues to evolve, the projected growth in 2024, coupled with increased profitability, reflects a positive outlook for one of the world’s premier gaming destinations. Investors, stakeholders, and enthusiasts alike can anticipate further developments and successes in the months ahead.