Macau’s Gaming Revenue Falls Short as Xi’s Trip Cool Offs Casino Buzz

(Bloomberg) — Macau’s gaming earnings declined by 2% in December, falling short of analysts’ forecasts as scrutiny over gambling practices intensified during Chinese President Xi Jinping’s trip to the world’s largest casino center.

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Total gaming revenue amounted to 18.2 billion patacas ($2.3 billion) for the month, based on data provided by the Gaming Inspection and Coordination Bureau on Wednesday. This is in contrast to the median analyst forecast of a 2% year-on-year growth, and remains 20% lower than the pre-pandemic figures recorded in 2019.

The December statistics bring the city’s overall gaming revenue for 2024 to 226.8 billion patacas, representing a 24% increase from the previous year and returning to 78% of the 2019 figures.

Key Takeaways

• Xi’s three-day tour of Macau — his first visit since 2019 — which concluded on December 20, led to notably increased security measures during this period, affecting sentiment among regular gamblers and high rollers from China, the primary source of the city’s tourism expenditure.

• During a speech throughout his stay, Xi encouraged Macau to persist with its economic diversification, enhancing policy support and investment to nurture new industries with global competitiveness. He made these remarks after swearing in Sam Hou Fai as the chief executive of the former Portuguese territory on the 25th anniversary of its return to Chinese governance. Formerly the president of Macau’s highest court, Sam has cautioned against the significant influence of the gambling sector and advocated for a reduced reliance on this industry, reflecting Beijing’s longstanding desire.

• China’s crackdown on high-stakes gamblers to limit capital flight has hastened the downturn of Macau’s VIP gambling sector, which prior to Covid accounted for about half of the city’s gaming revenue. Consequently, casinos are hosting more conferences and entertainment events to lure mass-market visitors to compensate for these losses.

• Experts anticipate that gaming revenue will rebound to 82% of the pre-pandemic levels next year, with mass-market income projected to grow to 118% of the 2019 figures, while the VIP sector may still see a 60% decline.

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