Macau forecasts robust casino business growth, projects $27 billion revenue in 2024
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Macau's Secretary for Economy and Finance, Lei Wai Nong, has conveyed an optimistic outlook for the gaming sector, expressing confidence in achieving the target of MOP216 billion ($26.8 billion) in gaming revenue for fiscal year 2024 2024.
Addressing lawmakers' concerns post his presentation of the 2024 action plan, Lei noted that the government's initial estimate suggested casino revenue reaching MOP202.4 billion ($25.23 billion) in 2024,Macau Business reported. This estimate factored in variables such as tourist volume and consumption ratio between the mass-market segment and VIPs for the first three quarters of 2023.
"The ratio of mass to VIPs has shifted from four to six or half and half previously to three to one," Lei was quoted as saying. He characterized the ongoing transition as a "different ball game" compared to the past. "Currently, 75 percent of it comes from the mass market, while high rollers’ bets account for 25 percent," he added.
Lei explained that there would be intensified promotion and increased investment by casino operators to expand the international market, potentially leading to a rise in tourist numbers.
In the first 10 months of 2023, authorities generated revenue of nearly MOP51.55 billion ($6.42 billion) from casinos, representing a growth rate of over 215 percent compared to the previous year. The figures, sourced from the Financial Services Bureau’s central account, indicate an execution rate of 101.4 percent for this category, the report said.
Macau’s casino industry saw gross gaming revenue hit MOP19.5 billion ($2.42 billion) in October, setting anew post-Covid record as it reached over 73% of the revenue levels seen in 2019. According to the Gaming Inspection and Coordination Bureau,the October results have had a positive impact on the overall gaming revenue for the year 2023, bringing it to approximatelyMOP148.45 billion ($18.43 billion), or about 60% compared to 2019.
Macau Special Administrative Region Chief Executive Ho Iat Seng had set an ambitious estimate for the gambling hub in August, stating that Macau had the potential to achieve between MOP170 billion and MOP180 billion ($21.1- $22.35 billion) in gaming revenue by the year's end. The October figures mark a significant step toward this goal.
It is worth noting that the October record surpasses the previous post-pandemic high set in August, which stood at MOP17.2 billion ($2.13 billion).
The Macau Special Administrative Region (SAR) government anticipates a resurgence in the local casino sector, projecting it togenerate a total of MOP216 billion (approximately $27 billion) in gross gaming revenue for the year 2024. This revival is expected to bolster Macau SAR's financial position, allowing it to once again record a surplus.
