Macau's Casino Revenue Surges in Early March

In the initial 23 days of March, the gross gaming revenue (GGR) from casinos in Macau was estimated to be MOP14.6 billion, which translates to US$1.82 billion. This figure was revealed in a memo from the banking institution Citigroup on Monday. The memo detailed the performance of the gaming sector in the region during this period.

Analysts George Choi and Timothy Chau from Citigroup provided the estimate, stating, "Based on industry sources, Macau GGR for the first 23 days of March likely reached circa MOP14.6 billion." This statement highlights the significant revenue generated by the gaming industry in Macau during the first three weeks of March.

The daily run rate during this period was calculated to be MOP635 million. This number gives an insight into the consistent performance of the gaming sector over these days.

Weekly Performance and Segment Analysis

The memo further broke down the performance of the gaming sector by week. According to the analysts, "This would imply a daily run rate of about MOP643 million during the week of March 17 to 23, 3-percent higher than that of the previous week, at MOP621 million a day." This indicates a slight increase in the daily gaming revenue towards the end of the first 23 days of March.

Regarding different segments of the gaming industry, the Citi analysts noted specific trends. They reported, "VIP volumes 'fell circa 8 to 10 percent month-on-month and mass GGR fell circa 7 to 9 percent month-on-month'." This suggests a decline in both VIP and mass gaming revenues when compared to the previous month.

However, there was a positive note regarding the VIP segment. The analysts stated, "VIP hold rate appears to be higher than that of the previous week." This indicates an improvement in the VIP hold rate, which could be a favorable sign for the gaming operators focusing on this segment.

Year-on-Year Comparison and Future Projections

When comparing the daily GGR run rate of the first 23 days of March to the full month of March 2024, Citigroup found that the figures were largely consistent. They noted, "According to the institution, the daily GGR run rate in the first 23 days of March, at MOP635 million, 'is largely flat year-on-year versus the full month of March 2024, at MOP629 million'." This comparison shows that the gaming revenue in early March of the current year is holding steady compared to the same period in the previous year.

Looking ahead, Citigroup maintained its forecast for March 2025. They stated, "Citi said it kept its March 2025 GGR forecast 'unchanged' at MOP19.5 billion, 'conservatively implying GGR to average MOP613 million a day for the rest of the month'." This forecast suggests that Citigroup anticipates a stable performance in the gaming sector in the coming year, with a slight decrease in the daily average GGR for the remainder of March in the current year.

The detailed analysis provided by Citigroup gives a comprehensive overview of the current state of the gaming industry in Macau and offers insights into future expectations. The stability in the daily GGR run rate and the slight fluctuations in different segments of the gaming market are critical factors for stakeholders in the industry to consider as they plan for the future.

Posted by Wizard
Mar 24 2025