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Macau’s January gaming revenue declines 5.6%
Neha Soni
February 4, 2025
Macau’s Gaming Inspection and Coordination Bureau (DICJ) has reported a decline in total gaming revenue for January 2025. For the month, Macau’s GGR came at MOP 18.25 billion. reflecting a 5.6 percent year-on-year decline.
This marks the second consecutive month of year-on-year losses after December’s 2 percent GGR decline.
January’s fall is despite analysts anticipating a more modest decline due to the seasonal lead-up to the Lunar New Year. The fall has raised concerns about Macau’s recovery trajectory, with factors like reduced VIP play, a shifting regulatory environment and economic conditions in China influencing market performance.
The upcoming Lunar New Year celebrations, which usher in the Year of the Snake, are expected to provide a further boost to Macau’s tourism and gaming markets.
The Chinese New Year holiday, scheduled from 28 January 2025 to 4 February 2025, marks one of the busiest periods for the region. The festivities, peaking on 29 January 2025, historically drive significant visitor numbers and gaming activity.
Despite the challenges faced by the sector in the latter half of 2024, Macau’s gaming sector achieved MOP226.8 billion (€27.2 billion) in gross gaming revenue (GGR) for 2024, reflecting a 23.9 percent year-on-year increase.
The year 2024 marked the second consecutive year of recovery following the reopening of Macau’s borders in January 2023. The figure represents 77.5 percent of pre-pandemic revenue levels in 2019, highlighting steady progress despite ongoing challenges.
However, momentum slowed in the final months of last year, with December marking the first monthly decline in GGR in two years.
What contributed to the fall?
Several factors, including the introduction of stricter gaming laws have contributed to the fall. The new legal framework governing Macau’s casinos has limited the role of junket operators. Junkets, which were previously responsible for attracting high-stakes gamblers to the region, have been significantly curtailed by new laws and restrictions. These regulatory changes have impacted revenue streams and the overall casino environment.
Casino operations have also restructured post Macau government’s prohibition on soliciting customers from mainland China. This has caused gaming companies to adjust to a reliance on mass-market and premium-mass players instead of VIP clientele.
The decline in VIP gaming marked a major shift in the gaming industry. Mass-market segments now account for over 77 percent of total gaming revenue, reflecting the changing preferences of casino customers.
The restrictions placed on junkets that prohibit them from sharing casino profits and limiting their role to commission-based operations also have a big role to play in the shift toward mass-market gaming.
Despite this, the Macau Government projects GGR in 2025 of MOP 240 billion. This would mark a 5.8 percent growth compared to 2024 levels. Analysts at S&P Global Ratings estimate Macau’s gross gaming revenue (GGR) could grow by 5 to 6 percent in 2025.
Analysts are still optimistic about Macau’s overall gaming industry and believe it remains on a stable footing. They expect a moderate long-term growth for the industry.
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