Macau Likely to Achieve MOP182 Bln in Gross Gaming Revenue in 2023 – Citi

MACAU, SAR (December 4, 2023) — Macau is on course to end the year of 2023 with a gross gaming revenue of MOP182 billion (US$22.57 billion), a level that is about 62 per cent compared to 2019, recent Citygroup Investment Research analysis has suggested.

The ‘Macau News Agency‘ reported analysts George Choi and Ryan Cheung said in notes published last Friday that the November result, about MOP16.04 billion, was in line with their forecast earlier.

It implies a daily run-rate of MOP549 million for the final 11 days of the month, 13 per cent higher compared to the previous week.

Looking ahead, Citi believes that the gross gaming revenue for December could reach MOP17.5 billion, driven by “normal seasonality” and a “solid line-up of concerts”.

The forecast, if accurate, will be the second highest of the year.

Moreover, Citi has also clarified that the city’s potential for mass gaming growth has a “weak correlation” with the country’s gross domestic product, citing historical data.

Visitation, gaming spending, and time spent at casinos are more at play, it stressed.

The researcher predicts that visitation recovery will continue to plateau from the third quarter of 2023, while gaming spending per player is to remain relatively unchanged.

However, the researcher believes that the amount of time spent in Macau will slightly increase, attributed to a three-percent year-on-year rise in the total number of available hotel room nights.

Citi has echoed the government’s view that local casinos could generate a total of MOP216 billion next year, up about 19 per cent compared to the current year.

“Given [the government’s] record of underestimating GGR in its fiscal budget, we believe there is plenty of upside risk to our GGR forecast,” said the analysts.

SOURCE: Macau News Agency.