The VIP gaming sector in Macau displayed a notable recovery in the first quarter of 2024, showing a 13.4% increase in revenue to MOP$14.4 billion (US$1.78 billion) according to the Gaming Inspection and Coordination Bureau (DICJ). This improvement brought the VIP market share up to 25.0%, a rise from 23.4% in the previous quarter (4Q23). However, this gain remains significantly below the pre-pandemic peak of 46.1% in 2019.
Trends in VIP Gaming
A significant portion of VIP revenues is now attributed to the direct VIP programs of Macau’s gaming concessionaires. Nonetheless, there is a noted discrepancy in the definition of VIP tables between the concessionaires and the DICJ, which could affect reported figures. The reduction in licensed junkets is also striking, with their number plummeting to just 18 in 2024, down from 36 the previous year and a substantial decline from the peak of 235 in 2013.
Regulatory Changes and Impact
In response to these shifts, the Macau government has updated its regulations governing junkets. Each junket is now limited to collaborating with a single concessionaire and is prohibited from operating its own VIP rooms within casinos or engaging in revenue-sharing agreements with operators. These measures aim to streamline the VIP gaming market and address regulatory concerns.
Market Share Dynamics
Despite the resurgence in VIP revenue, the mass baccarat tables experienced a slight decline in market share, dropping from 61.8% in 4Q23 to 60.2% in 1Q24. Conversely, mass market gross gaming revenue (GGR) saw a modest 3.3% increase quarter-on-quarter, amounting to MOP$34.6 billion (US$4.29 billion).
Recovery
The recovery in VIP gaming indicates a positive trajectory for Macau’s gaming industry, although challenges persist due to evolving regulatory frameworks and shifting market dynamics. The shift towards direct VIP programs by concessionaires reflects efforts to consolidate operations and adapt to changing market conditions.
The first quarter of 2024 witnessed a notable rebound in Macau’s VIP gaming sector, as indicated by a 13.4% increase in revenue. This recovery is accompanied by regulatory changes aimed at enhancing transparency and stability within the industry. While challenges remain, particularly regarding the evolving role of junkets and the redefinition of VIP gaming, the overall trend points towards a gradual stabilization and adaptation within Macau’s gaming landscape.