In the second quarter of 2024, Macau’s gaming industry faced varied dynamics in its revenue streams, influenced significantly by the performance of VIP and mass market segments.
Overview of Quarterly Revenue
According to the DICJ’s latest report, Macau’s gaming industry generated MOP$56.6 billion (US$7.03 billion) in the three months ending 30 June 2024. This figure represents a slight decline from the MOP$57.5 billion (US$7.15 billion) reported in the previous quarter. The decline is primarily attributed to a further downturn in VIP baccarat revenues, while mass market baccarat revenues showed modest growth.
VIP Baccarat Performance
VIP baccarat revenues totaled MOP$13.3 billion (US$1.65 billion) in Q2 2024, marking a 7.4% decrease from the previous quarter. This segment’s market share also fell from 25.0% to 23.5%, reflecting a continuing trend of decline. In comparison, VIP baccarat held a dominant 46.1% market share in 2019, before regulatory changes impacted the Macau junket industry.
The reduction in VIP baccarat revenues can be linked to ongoing regulatory reforms. The number of licensed junkets in Macau has been halved to 18 in 2024, down from 36 the previous year and a significant drop from 235 in 2013. Furthermore, recent updates to Macau’s junket laws restrict each junket to partnering with only one concessionaire, prohibiting them from operating their own VIP rooms within casinos and disallowing revenue-sharing agreements with operators.
Mass Market Baccarat Growth
In contrast to VIP baccarat, mass market baccarat revenues saw a slight increase to MOP$34.6 billion (US$4.30 billion) in Q2 2024. This segment’s market share also improved from 60.2% to 61.2% sequentially, underscoring its resilience amid broader industry challenges.
Half-Year Performance Overview
For the first six months of 2024, Macau’s gaming industry accumulated total revenues of MOP$114.1 billion (US$14.2 billion). Mass baccarat contributed MOP$69.2 billion (US$8.60 billion) to this total, while VIP baccarat accounted for MOP$27.7 billion (US$3.44 billion).
Despite the challenges posed by regulatory changes and shifting market dynamics, Macau’s gaming industry continues to navigate through evolving conditions. The second quarter of 2024 reflects a nuanced picture of resilience in the mass market segment and ongoing adjustments in the VIP sector. As regulatory frameworks stabilize and market conditions adjust, stakeholders will closely monitor these developments for insights into future industry trends.