Macau’s full-year GGR increased 334% year-on-year in 2023, forcing casino companies to increase their non-gaming investments by 20%. [Image: Shutterstock.com]
A strong year
The world’s largest gambling hub has been hit hard by the COVID-19 pandemic. While casinos were not required to close for any length of time, Macau was largely cut off from other regions for three years and its borders only reopened in January 2023.
exceeded the government’s initial estimate of MOP$130 billion (US$16 billion)
Now things are looking up in the casino sector, with gross gaming revenue (GGR) up 334% year-on-year to MOP$183 billion (US$22.7 billion). This significantly exceeded the government’s initial estimate of MOP$130 billion (US$16 billion). Macau had a particularly strong end to the year, with December GGR up 433% year-on-year, setting the stage for further improvement.
Last quarter’s GGR was 105% of the same period in 2019, so momentum is picking up. There is still a long way to go to return to pre-pandemic full-year levels, with last year’s total representing 62.6% of 2019’s.
Success has its price
The six casino companies that have licenses to operate in the region will have to increase their investments in non-gaming companies due to the good results.
A provision in the new 10-year licenses signed by operators towards the end of 2022 states that they must increase this form of investment by 20% if the region’s total GGR reaches MOP$180 billion (US$22.4 billion) in one of the first years . US dollars) exceeds five years of the new license period.
strives to reduce the region’s dependence on gambling revenue
They had already planned to put a total of MOP$108.7 billion (US$13.5 billion) into non-gaming investments. Macau officials are eager to reduce the region’s reliance on gambling revenue.
The number of tourists is increasing
People are returning to Macau in droves, with about 28.2 million people visiting in 2023, about 70% of the pre-pandemic total. In particular, the number of international visitors was impressive, reaching 94.4% of December 2019 levels in the last month of 2023.
Commenting on the strong recovery, the Macau government’s tourism bureau said last year’s results show “Macau’s attractiveness as a global tourism and leisure hub.”
