Macau's Mass and Premium Gambling Revenue Nears Pre-COVID Levels
In more good news for Macau, revenue from mass-market gamblers is almost reaching pre-pandemic levels, while data shows that income from premium mass players is surpassing 2019 levels. August was a great month for the gaming hub, with a GGR of $2.15 billion, making it the best month since the pandemic. This month represents 71% of the pre-COVID-19 daily run rate, suggesting there's still room for growth.
According to JPMorgan analysts, mass GGR rebounded to 93% to 94% of pre-Covid-19 levels compared to the second quarter's high-80s and July's low-90s. Premium mass GGR saw a rise of 110% compared to pre-pandemic levels, whereas mass market GGR was 75% to 80% of its 2019 highs. In comparison, gaming revenue for VIPs was at 28% to 29% of 2019 levels.
The Macau recovery has been so strong that it's regained its title as the world's largest casino center by revenue, beating Las Vegas. In the first half of this year, the six concessionaires achieved a combined GGR of $10 billion, more significant than Nevada's $7.5 billion. There's a strong likelihood that Macau's GGR will overtake Las Vegas next year, as there's an expectation of returning to pre-pandemic revenue levels soon.
Macau's growth without significant contributions from VIPs is a positive sign for the operators, as it indicates there's potential for more upside in the VIP sector. However, September's GGR might underwhelm due to a temporary closure of gaming venues during Typhoon Saola.
"September GGR won't impress anyone, not only because of the usual seasonality between summer holiday and October Golden Week, but also due to Typhoon Saola," said the JPMorgan analysts.
The main reason to watch for in terms of Macau GGR is the start of Golden Week on October 1. This week-long holiday commences on China's National Day, and it's been a major driver of visits to Macau and Hong Kong in the past. Despite the uncertainty surrounding the intensity of this year's upside due to a short booking window for both travelers and gamblers, it's poised to be an exciting event. The JPMorgan analysts summed it up well, saying, "Many investors question, 'Is there a way to determine how good (or awful) the Golden Week will be?' Honestly, there's no clear answer, as Chinese travelers have a short booking timeframe, and Chinese gamblers have an even shorter window.".
Read also:
- Leverkusen claims victory in the cup, securing a double triumph.
- Alonso achieves a double victory after consuming a German brew.
- Does the SVolt factory in Saarland face stability issues?
- Furor surrounding Sylt scandal footage