The gaming landscape in Macau witnessed a significant surge in revenues, as the initial 25 days of May saw a remarkable increase in casino gross gaming revenues (GGR). According to insights from the renowned banking institution Citigroup, the revenue figures reached an impressive MOP17.5 billion, which equates to around US$2.17 billion. Citing information from industry sources, Citigroup highlighted these developments as occurring amid the growing momentum in Macau's gambling sector.
Factors Influencing the Revenue Spike
The data from Citigroup unveils that the daily revenue rate during the week ending May 25 soared to an average of approximately MOP686 million. This figure represents a substantial 16% improvement compared to the preceding week's daily average of MOP593 million. Citigroup noted in their analysis that the significant rise in gaming revenue can be attributed partly to increased activities in both VIP segments and mass markets. Specifically, VIP gaming volumes saw a month-on-month rise between 25% to 30%, while mass gaming revenue expanded by about 10% during the same period.
A crucial factor in this upward trend, as suggested by Citigroup's analysts George Choi and Timothy Chau, is the introduction of the new Capella at Galaxy Macau. The opulent 17-story hotel, which launched in early May, has garnered attention with its luxurious amenities, including 36 villas and 57 uniquely themed suites. This recent addition to the Galaxy Macau portfolio provides a premium gaming floor labeled "Horizon Plus," which has been in operation since early May. The debut of the Capella is seen as a significant driver behind the sudden spike in Macau's gaming revenue.
Future Projections and Industry Outlook
Looking ahead, Citigroup's latest memo predicts a moderate daily gaming revenue performance during the remaining days of May, considering only one weekend remains. They anticipate the GGR for these days to settle at around MOP625 million daily. Reflecting a cautious optimism, Citigroup has modestly revised its forecast for the overall gaming revenue in May to MOP21.25 billion, up from the previous estimate of MOP21 billion. Should these predictions materialize, they would indicate that the May 2025 gaming revenues could reach approximately 82% of what was recorded in May 2019, marking a 5% increase compared to last year's figures.
This growth reflects a gradual rebound for Macau's gaming industry despite the challenges posed by global conditions. The robust performance underscores the resilience and adaptability of Macau's gaming sector, as it continues to attract high rollers and casual gamers alike from around the world.
Source: Macau GGR nearly US$2.17bln in first 25 days of May: Citi, GGRAsia, May 27, 2025.
Posted by Wizard
May 28 2025
May 28 2025
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