In June 2024, Citibank analysts conducted a detailed survey of Macau’s gaming industry, offering valuable insights into the market dynamics during what is traditionally the slowest month of the year. Despite facing adverse weather conditions and the onset of China’s nationwide university entrance exams, the survey revealed notable trends that shed light on the resilience of Macau’s gaming sector.
Key Survey Findings
Citibank analysts George Choi and Ryan Cheung highlighted several key findings from their June 2024 survey:
Growth in Premium Mass Segment
One of the standout observations was the robust growth in the premium mass segment. Total wagers in premium mass rooms increased by 10% year-on-year, accompanied by a significant 31% rise in the player count compared to the previous year. This uptick suggests a healthy level of engagement within this segment despite external challenges.
Wager per Players
Despite the overall growth in total wagers, the average wager per player decreased by 16% year-on-year to HK$18,478. Analysts attributed this decline to the high base established in June 2023, a period marked by Sands China’s hosting of Jacky Cheung’s concerts, which attracted a large number of high-spending players.
Influence of Previous Year’s Events
The absence of comparable large-scale entertainment events during the survey period in June 2024 had a noticeable impact on the comparison metrics. June 2023’s events, particularly Sands China’s concerts, set a high benchmark for premium mass activity, making it challenging for June 2024 to match those figures.
Whale Activity
Despite quieter overall conditions, the survey identified 16 whales—players who wager HK$100,000 or more per hand. Notably, one player placed a HK$1 million bet on a single hand, underscoring sustained high-stakes activity within the market.
Choi and Cheung provided nuanced insights into the implications of their findings:
They described the observed volumes during their survey as “respectable,” indicating a level of stability and resilience within Macau’s gaming sector despite the external challenges.
The higher player count and total wagers compared to the previous year suggest underlying strength and potential for recovery as seasonal factors normalize.
Investors are advised to interpret June 2024’s gaming revenue as potentially the baseline for the year, with expectations of improvement in subsequent months as conditions stabilize.
Citibank’s analysis of Macau’s June 2024 gaming revenue offers a balanced perspective on the industry’s current state. While facing typical seasonal slowdowns and external factors, the market has shown resilience and signs of growth in key segments. Understanding these dynamics is crucial for stakeholders navigating the nuances of Macau’s dynamic gaming landscape.