In the first half of 2023, Macau’s gross gambling revenue reached almost $10 billion bringing the region a lucrative title of the top gaming destination in the world at the moment! As Wall Street Journal (WSJ) reports, Macau’s casinos generated around an average of $2 billion in monthly revenues in the first half of the year and surpassed Nevada’s $7.5 billion revenue level reached over the same period.
1.9 Million Visits in July 2023:
As reported, the full post-pandemic recovery of Macau’s gambling industry is mainly attributed to the rising number of visits from mainland China. According to WSJ, the region hosted almost 1.9 million tourists from China in July 2023 to almost hit the pre-pandemic level of around two million visits in 2019. These tourists reportedly represent almost 95 % of the total number of visits to Macau.
Mass Market Drives Rapid Growth:
High rollers are less involved in these visits than before the pandemic when their bets placed in VIP junkets represented the key driving fuel for Macau’s gambling machine. WSJ reports that most Chinese tourists now typically gamble between $1,500 and $2,500 replacing high rollers to become the key factor to propel the growth of the mass market and the overall region’s revenues.
Its soaring results have reportedly now exceeded the benchmark set by the US-based Resorts for its Hong Kong-listed facilities. Macau rebounded to the leading position and surpassed Nevada again after the Chinese government lifted the pandemic-related restrictions and thus boosted the gambling recovery. As reported, Macau’s $10 billion in revenues now stands against the Nevada’s $7.5 billion to testify about the power of the region’s gaming industry reinforced by the $2 billion win recorded in July 2023.
Leading Gambling Hub in the World:
According to WSJ, US casino operators had three ”painful years” in the currently leading gambling destination in the world. At the same time, after the loss recorded in 2022, Sands China and MGM China reportedly returned to profit of $175 million and $105 million, respectively, while Wynn Macau recorded a profit of $61 million in the Q2 2023 after the loss in the first quarter of the year.
Macau’s recovery was reportedly driven by mass market rather than VIP gamblers. The surge in revenues may also be a consequence of the extended casino closures and pandemic-inducted restrictions that made people from mainland China flock to the region now to lift the Macau’s GDP by almost 39%, as reported.
Still, international visits are a major concern of Macau’s government as these now represent only 5% against 95% of visits from mainland China, Hong Kong, and Taiwan. In addition, the authorities request casinos to diversify their offerings to compete with the leading world’s gambling destinations. But it seems that the region holding the status of the top gambling hub in the world doesn’t have too much to worry.