In Macau, the future of casino revenue is increasingly reliant on mass-market gambling, as the region adapts to changes in its gaming industry post-pandemic. The push towards revitalizing the sector is being led by a focus on increasing foot traffic from everyday players, a strategy now deemed crucial by industry leaders, including Hoffman Ma Ho Man.
Serving as the deputy chairman of Success Universe Group Ltd, Ma emphasized this point during a luncheon with Hong Kong media. He outlined that while boosting mass-market participation is critical for maintaining growth, it is improbable for Macau’s gaming revenue to replicate the heights of pre-COVID-19 times, specifically the figures benchmarked in 2019. This expectation is based on the noticeable reduction in contributions from the VIP segment, now covering a mere 20 percent of the gross gaming revenue (GGR) within the city.
Projections and Strategic Developments for Ponte 16
During his address, Ma shared a realistic outlook for the gaming landscape, anticipating modest city-wide growth in casino GGR by 2025. He projected slight year-on-year increases, predicting that the GGR for the ongoing year, marked by the Lunar New Year, may either remain steady or experience minor growth. Success Universe, with its investment interest in the Ponte 16 casino resort located in Macau's Inner Harbour district, is at the forefront of these strategic shifts.
The resort operates under the gaming license provided by Macau casino concessionaire SJM Holdings Ltd. In line with these adjustments, plans to expand non-gaming facilities at Ponte 16 are underway, a move officially endorsed by the Macau government in November via an amended land concession. The entire expansion is projected to require two years for completion, with expected costs ranging from HKD500 million to HKD600 million.
Analyzing Revenue Figures and Market Trends
Recent statistics further illustrate the evolving dynamics of Macau’s gaming revenue streams. For the year 2024, market-wide VIP baccarat revenue was recorded at MOP54.76 billion, signifying 24.1 percent of total aggregate GGR for that year. While it highlighted a 21.2 percent increase compared to the previous year, the figures were substantially lower than the 2019 baseline, covering only approximately 40.5 percent of the VIP revenue of that period.
In contrast, the mass-market baccarat segment generated just below MOP137.91 billion, accounting for 60.8 percent of the total revenue in 2024, showcasing a rise of 24.8 percent from the preceding year. This figure notably exceeded the gaming income from 2019, reaching about 114.2 percent of that year's mass-market baccarat GGR. This shift underscores the critical focus on mass market gambling as pivotal for Macau's casino industry's future prosperity.
Source: ‘Unrealistic’ to expect Macau’s casino GGR to return to pre-Covid levels says Ponte 16 boss, GGRAsia, February 6, 2025.
Posted by Wizard
Feb 06 2025
Feb 06 2025
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