(Bloomberg) -- Macau’s gaming revenue rose 14.8% in August, exceeding forecasts as demand for entertainment rose during China’s summer vacation, providing growth momentum for the world’s largest casino hub.
Gross gaming revenue reached 19.8 billion patacas ($2.5 billion) for the month, according to data released by the Gaming Inspection and Coordination Bureau on Sunday. The median analyst’s estimate was for a 13.2% year-on-year increase. The result was 6.2% higher than July, and showed revenue returning to about 80% of pre-pandemic levels.
Key Insights
- Macau’s gaming revenue picked up in August, benefiting from higher travel demand during summer vacation among mainland Chinese, who make up for the bulk of the city’s visitors
- The casino hub reported 3 million visitor arrivals in July, which was 86% of the pre-pandemic level. The city will release data for August later this month
- Tourists’ bigger appetite for entertainment amid an uncertain outlook for China’s economy has partly offset weaker sentiment among big-spending gamblers. The city is facing a new round of crackdowns, targeting the city’s ubiquitous money exchangers, as Beijing seeks to curb capital outflows and money laundering
- Macau officials are planning to add a provision to a bill on gaming crimes, allowing for up to five years imprisonment of those who exchange or lend money to gamblers without authorization
- The plan follows a series of Chinese government meetings and state media coverage in recent months, highlighting major arrests involving illegal money-exchanging activities and cross-border gambling
- Macau’s former top judge Sam Hou Fai, widely expected to take over as the city’s new leader in October, also made a strongly worded statement last week against the economic dominance of the territory’s casino industry. At a press briefing, Sam warned of the “wild” expansion of the gaming sector and said the city needs to diversify
Market Performance
- The Bloomberg Intelligence index of Macau casino operators fell 7% in August, while the benchmark Hang Seng Index rose 3.7%.
Read More
- Macau Candidate Warns of ‘Wild’ Expansion of Gambling Industry
- Macau Casino Stocks Slump on Renewed Money-Exchange Crackdown
- Taiwan Says Macau’s ‘One China’ Demand Blocks Envoy’s Visa
- Macau Gaming Revenue Misses Estimate Again Over Crackdown Fears
--With assistance from Rebecca Choong Wilkins.
©2024 Bloomberg L.P.
