Macau's January Revenue Nearly Breaks Post-Covid Record

Macau, the global gambling hub, is making headlines once again. In January 2024, the city achieved a remarkable milestone, raking in a whopping MOP19.3 billion in revenue, setting the stage for a prosperous year ahead. Only surpassed by October 2023's record of MOP19.5 billion, this impressive figure reflects a strong start to the year, coinciding with the approaching Chinese New Year celebration.

January's Gross Gaming Revenue (GGR) exhibited a significant 67% surge compared to the same month in the previous year. Moreover, it marked a 4.1% increase from December 2023. These statistics underscore Macau's resilience and recovery, given the challenging circumstances of the pandemic.

Although Macau's January GGR is remarkable, it still lags 14.4% behind the pre-pandemic MOP22.1 billion recorded in January. However, Macau's remarkable recovery trajectory since the easing of Covid-19 restrictions in January 2023 suggests that the city's gaming industry is well on its way to reclaiming its former glory.

Fitch Ratings recently upgraded its outlook on SJM Holdings, attributing the positive shift to the continuous growth in visitation and gaming revenue in Macau. Notably, SJM has made significant investments in its integrated Grand Lisboa Palace Resort, contributing to Macau's resurgence.

Macau's success has also had a profound impact on Las Vegas Sands, with its 2023 financial year revenue reaching a staggering $10.4 billion, thanks in large part to Macau's contribution of $6.6 billion – a remarkable 303.1% increase. Rob Goldstein, Sands' CEO and chairman, has high hopes for Macau's future, envisioning the market's potential to grow even further, possibly reaching $30 billion, $35 billion, or even $40 billion.

Macau's resurgence is all the more remarkable when considering the economic challenges faced by its sovereign, China. With declining lottery ticket and sports lottery sales in China, Macau's remarkable performance in the gaming sector is a testament to its resilience and unique position in the region.

While Macau's gambling industry flourishes, the same cannot be said for horse racing. The Macau Horse Racing Company has made the difficult decision to cease offering horse racing from April 1, 2024. The company, responsible for operating the Macau Jockey Club, reached an agreement with the government to terminate its exclusive concession to operate horse racing in Macau.

Lei Wai Nong, the secretary for economy and finance, signed this agreement on behalf of the government. The company cited cumulative losses of over MOP2.5 billion, attributing them to the limited growth opportunities and the adverse effects of the pandemic.