Macau Casinos Break a Record for Revenue after the Pandemic: Prospects and Estimates
Date: 2024-04-03 Author: Robert Beloved Categories: CASINO
In March this year, Macau casinos reported record revenue levels, reaching MOP19.50 billion (£1.02 billion, €2.25 billion, US$2.42 billion), the highest since the start of the pandemic. This is a 53.1% increase in revenue compared to March last year and 5.4% compared to February this year, when MOP18.49 billion was recorded. This figure also equaled the highest level since the pandemic, which was recorded in October 2023.
Excellence before the Pandemic and Recovery after it
Despite the good news of revenue growth, Macau casinos are still far from pre-pandemic levels, when monthly revenue was around MOP20.00 billion. Before the pandemic, casinos regularly reached this mark. Since January 2020, revenue has not exceeded MOP20.00 billion, which occurred shortly before the outbreak of the pandemic and the introduction of restrictions. However, Macau's revenue for the first quarter of 2024 exceeded MOP57.33 billion, up 65.5% from the same period in 2023.
Forecasts and Expectations
Analytical forecasts indicate that the recovery of the Macau gambling industry will continue into 2024. Fitch Ratings has affirmed Macau's long-term issuer default rating at AA and forecasts a recovery to nearly 80% of pre-pandemic levels this year. They also forecast gross gaming revenue to grow 79.5% from 2019 levels by the end of 2024.
Impact on Casino Operators
The lifting of pandemic measures has been a boon for several of Macau's largest casino operators. They noted significant revenue and business growth in 2023. One such operator is Galaxy Entertainment Group, which reported revenue growth of 211.0% to HK$35.68 billion.
Overall, the post-pandemic recovery of Macau's gaming industry is showing encouraging trends. Casino operators are seeing revenue growth, and analysts are making optimistic forecasts for the near future. At the same time, discussion continues about the importance of supporting US-China relations for the prosperity of this industry.
