Casinos for youJanuary gaming revenue reports show a 67% revenue increase for the Macau gaming industry. Macau brings in MOP$19.3 billion, starting the year off strong. We take a look at industry expectations for 2024.
For the gaming industry, every month matters in terms of growth, retention of players and expansion. 2024 is quickly looking like it will be a year to remember for the Macau gaming industry.
The gambling industry in Macau is starting 2024 with an impressive year-on-year revenue increase of 67% for January.
Macau recently released its gaming revenue for January, showing a 67% increase to US$2.4 billion.
The massive spike in revenue can also be attributed to the increased levels of tourism Macau reported throughout 2023. While there haven’t been any tourism stats released for 2024, December last year saw the highest number of visitors since January 2020.
The increase in tourism has been happening quite steadily over the past year. In the last month of 2023, there was a total number of 2,943,930 visitors. With the average spending per visitor totalling around MOPS$2,366.
One thing that will be interesting to see is if the stats follow the same line of progression as 2023. Macau saw a dip in gross monthly income during February but quickly got it rising again through the rest of the year.
The growth in visitors and revenue continues in the new year, with the MOP$19.3 billion from January already being a 4% increase from the December figures.
While the figures are currently very impressive, there are several things Macau will need to keep in mind if it wishes to continue seeing industry growth. The regulations in the region are always changing, which is a challenge to businesses here and might impact tourism and the gaming industry.
Macau Gaming 2024 Expectations
According to Citigroup’s February forecast, the GGR will increase from MOP$18.5 billion to MOP$19.5 billion. According to these predictions, the February GGR will reach 77% of 2019’s level.
Analysts from Morgan Stanley expect the February GGR to go up 4% month-over-month at MOP$20 billion. Which would mean raking in MOP$691 million per day.
There are a lot of factors that could help bring in more revenue through February. This includes CNY holidays and concerts. If we look at previous years (2016 to 2019), CNY sees February having an average of 5% month-over-month growth over January. There are concerns that February 2024 could experience the same revenue dip as 2023.
There is a clear expectation for the industry to continue its impressive increase in revenue. For now, we can only wait for the February stats to see if revenue dips or increases.
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