Published on: January 1, 2025, 11:01h.
Last updated on: January 1, 2025, 11:01h.
The six casino operators in Macau garnered 226.8 million patacas, equivalent to approximately US$28.3 billion, from players in 2024. This marked a nearly 24% increase compared to the gross gaming revenue (GGR) in 2023.
Macau’s six casino concessionaires — Sands, Galaxy, SJM, MGM, Melco, and Wynn — saw a second year of gaming recovery following the lifting of Chinese President Xi Jinping’s “zero-COVID” program at the end of 2022. The GGR for 2024 exceeded the previous year by approximately $5.7 billion.
December closed with casino revenue reaching around MOP18.2 billion (US$2.27 billion). While this represented a 2% decrease compared to the previous year, it was also 1.3% lower than November. It was the only month in 2024 where year-over-year GGR was less than in the same month in 2023.
December marked the third-lowest GGR month of the year, even with Xi’s visit to Macau commemorating the appointment of Sam Hou Fai as the new chief executive of the city. Macau’s top government position is filled every five years by a committee mainly made up of Beijing loyalists.
Maintaining Momentum
Despite the setback in December, 2024 was a positive year for the gaming industry as it shifted focus towards the mass market amidst changing regulations. Macau, once favored by Asian high rollers, has transformed into a destination less focused on VIPs after Xi implemented changes during the pandemic.
Highlighting the substantial cash outflow through Macau as a national security threat, Xi directed Macau and the region’s Judiciary Police to enhance monitoring of junket groups. These groups, which had catered to mainland high rollers for over a decade with luxury travel and accommodations, then faced increased scrutiny.
The extravagant trip prices, often exceeding $100,000, offered VIPs gaming credit matching their tour costs upon arrival in Macau. In return, the six casino operators shared the related gaming revenue won in the private high roller parlors with the junkets.
Xi’s crackdown on junkets, including the prosecution of Suncity boss Alvin Chau in January 2023 resulting in an 18-year prison sentence for illegal gambling and criminal association, led to the exodus of VIP groups from the market.
Focus on the Mass Market
With fewer high rollers arriving via junkets, Macau casinos have shifted their attention to the general public and the “premium mass” gambler. They are also investing billions in non-gaming facilities and attractions to diversify the city and attract new visitors.
The $28.3 billion GGR in 2024 represented 77.5% of the 2019 GGR levels. Analysts at Morgan Stanley anticipate “modest but consistent growth” ahead, projecting 2025 GGR around $30 billion and 2026 GGR at approximately $31.2 billion.
The actual outcomes will heavily depend on the Chinese economy, which has slowed in recent years. In a December report, Vanguard analysts predicted a deceleration in China’s full-year GDP growth in 2025 due to various internal and external challenges.