Macau’s gaming industry is witnessing a remarkable resurgence this May, poised to achieve a new milestone in post-pandemic recovery. Recent estimations by financial analysts at Citigroup project an impressive surge in Gross Gaming Revenue (GGR) for the month, attributing this growth to a combination of factors including heightened visitation, entertainment events, and innovative gaming offerings.
Overview of May Gaming Revenue Surge:
Citigroup’s analysts, George Choi and Ryan Cheung, have observed a substantial uptick in Macau’s daily gaming revenue over the past week. Comparing the last seven days to the preceding week, they note a significant increase in the daily run-rate, reaching MOP$686 million (US$85.4 million). This surge represents a notable 19% rise from the previous week’s run-rate of MOP$579 million (US$72.0 million). As a result, Macau’s GGR for the first 19 days of May has reached MOP$13.4 billion (US$1.67 billion), as reported by industry sources.
Factors Driving Growth:
Several key factors have contributed to this impressive week-on-week increase in gaming revenue. Primarily, the surge in visitation during the 15th May public holiday has been instrumental. Additionally, a series of highly anticipated concerts by the renowned Cantopop group, Mirror, held at the Galaxy Arena from 16th to 19th May, attracted a significant influx of visitors. Moreover, the recent introduction of the innovative “Small 6/Big 6” side bet by Sands and Galaxy has likely bolstered gaming activity, appealing to both VIP and mass market segments. Analysts note a substantial uptick in VIP volumes, estimated to have increased by 15% month-on-month, while mass volumes have seen a commendable rise of 13% to 15%.
Revised GGR Forecast:
In light of these encouraging trends, Citigroup has revised its May GGR forecast upwards. Initially pegged at MOP$20 billion (US$2.49 billion), the new estimate now stands at MOP$20.5 billion (US$2.55 billion). This optimistic projection surpasses the previous post-pandemic high of MOP$19.5 billion (US$2.43 billion) recorded in March. Looking ahead, the daily run-rate for the remainder of May is expected to average MOP$592 million (US$73.7 million). Importantly, the revised monthly estimate of MOP$20.5 billion represents a remarkable 79% recovery compared to May 2019 levels.
The resurgence of Macau’s gaming industry in May reflects a robust recovery trajectory following the challenges posed by the pandemic. With innovative offerings, strategic events, and growing visitation, the region’s gaming sector is poised for sustained growth, signaling optimism for the broader economic recovery.