The Macau SAR Government has released the findings of its 2022 Gaming Survey, highlighting a substantial decline in the gaming industry’s performance.
Sharp Decline in Total Receipts
The survey reports that the total receipts of Macau’s gaming industry fell by 49.2% year-on-year to MOP$46.2 billion (US$5.72 billion) in 2022.
Decrease in Expenditure
Expenditure also saw a notable decrease, falling by 24.7% to MOP$40.31 billion (US$4.99 billion).
Contributors to Receipts and Expenditure
Out of the MOP$46.20 billion in receipts, MOP$42.12 billion (US$5.22 billion) came from games of fortune. Expenditure included operating expenses, such as those for hotel rooms and complimentary food and beverages (MOP$4.20 billion or US$520 million), management and third-party services (MOP$1.61 billion or US$199 million), and purchases, commissions, and customer rebates (MOP$3.73 billion or US$462 million).
Staff Costs
Staff costs amounted to MOP$18.81 billion (US$2.33 billion), representing a 7.2% year-on-year decrease.
Impact on Gross Value Added and Profits
The gross value added (GVA) of the gaming industry decreased by 51.6% year-on-year to MOP$30.37 billion (US$3.76 billion). Profit before taxation, including special tax on gaming, fell by 72.8% to MOP$11.56 billion (US$1.43 billion), resulting in a profitability ratio of 26.6% and a profit-to-expenditure ratio of 36.2%. These ratios recorded significant declines of 21.5 and 56.4 percentage points, respectively.
The survey reflects the challenges faced by Macau’s gaming sector in 2022, with a sharp decline in total receipts and profits. The COVID-19 pandemic and other factors have significantly impacted the industry’s performance.