Macau’s GGR Drops by 12.7% in September, Despite Being Up 15.5% Year-on-Year

September 2024 was a complex month for Macau’s gross gaming revenue as it presented a month-on-month decrease but a year-on-year increase. Reports by the local Gaming Inspection and Coordination Bureau (DICJ) indicated a September GGR of MOP 17.25 billion (about US$2.15 billion), a 12.7% fall from August’s MOP 19.8 billion (around US$2.47 billion). The GGR also dropped by 1% quarter-on-quarter to MOP 55.6 billion (around US$6.94 billion) in Q324. The September GGR is the lowest recorded in 2024 so far.

Macau’s GGR Complexities

While Macau recorded a monthly GGR downturn in September, its annual data paints a positive picture. The gambling capital recorded a 15.5% year-on-year GGR increase from September 2023 (MOP 14.94 billion). The benchmark for revenue performance is September 2019, when GGR was an impressive MOP 22.1 billion (US$2.76 billion). In 2024, the industry has achieved 78.3% of these revenue levels.

The recorded GGR from January to September 2024 of MOP 169.36 billion (US$21.1 billion) shows a 31.1% increase from the same period in 2023. These figures highlight the impressive post-pandemic recovery of Macau’s gambling sector despite short-term drops like in September.

Citigroup also underscored a growing trend in Macau gaming floors that supports the industry’s remarkable recovery trajectory. In a detailed survey, the group noticed an uptake in high rollers spending over HKD 100,000. These betting ‘whales’ have already spent more than the figures recorded in 2023.

Shoulder Season and Other Reasons

Analysts attribute several factors to the fall in Q324 and September’s GGR. According to investment bank JP Morgan, the drop was mostly expected due to the weak Q3 start in July and several headwinds in early September. The bank’s analysts Selina Li, DS Kim, and Mufan Shi said the decline was not as bad as anticipated, especially considering the “slew of poor data points in the China consumer/luxury/leisure spaces in recent months.”

Analysts also noted that September falls between the summer holidays and the busy October Golden Week, meaning people aren’t enthusiastic about spending money on gambling floors. Other revenue-impacting factors include adverse weather conditions and fewer weekends compared to August.

October Golden Week

Macau welcomes October with National Day Golden Week, which kicked off September 29^th. The Macau Government Tourism Office hopes Golden Week will draw in an average of 100,000 visitors daily. The event is expected to set a positive tone for this month’s GGR by drawing in large crowds. The gaming and hotel sector is optimistic that Q4 will achieve a new benchmark and recover to pre-pandemic levels.