Entertainment Catalyst
June’s exceptional casino revenue performance defied seasonal slowdown projections. Analysts unanimously credit Cantopop icon Jacky Cheung’s concert series as the main growth driver. Financial reports revealed that premium player volumes surged 16% year-on-year on opening night alone, with average wagers rising 36%.
A June 20 survey further documented 58% higher premium mass betting volumes. JP Morgan cited Cheung, dubbed the “God of song”, for triggering an unexpected seasonal surge. Citi analysts backed these positive survey findings, stating, “We attribute all positive findings from our survey to him.” Seaport Research’s Vitaly Umansky and Bloomberg also reinforced that Cheung’s entertainment events were pivotal to Macau’s revenue growth.
Cheung’s nine-show Galaxy Arena residency, running from mid-June into July, continues to amplify visitor traffic across Cotai properties, sustaining the SAR’s upward revenue trajectory.
Market Optimism
While Macau’s positive first-half revenue is a 4.4% year-on-year uptick, it’s still 20.5% below pre-pandemic levels: in 2019, the first six months raked in MOP149.50 billion (US$18.49 billion). Nevertheless, June’s performance, reaching 88% of June 2019’s revenue, signaled accelerated recovery momentum compared to January and February’s sluggish start.
Investor response to the positive performance was almost immediate, with shares of Macau-based operators surging on Tuesday following the revenue report. Melco Resorts (MLCO) led gains with a 7% jump, trailed by Las Vegas Sands (LVS) at 3.6%, Wynn Resorts (WYNN) at 3.3%, and MGM Resorts (MGM) at 0.4%. This reflects a renewed market confidence in the region’s normalization trajectory.
Growth Amid Regulatory Changes
Macau’s gaming revenue surge coincides with impending regulatory shifts, notably the planned phase-out of third-party-operated satellite casinos by the end of 2025. These changes, potentially affecting ZAPE district areas, don’t seem to dim sector optimism. Citigroup maintains a 6% year-on-year GGR rise projection for the second half of the year, citing holiday demand, entertainment events, and normalizing tourist flows.
