Macau Casinos Win $2.6B From Players in October, Best Month Since January 2020

• Gambling
• 01 November 2024

In October, Macau casinos earned more revenue than in any month since January 2020. 

On Friday, the Gaming Inspection and Coordination Bureau of Macau released the October gross gaming revenue (GGR) figures, indicating that the six casino concessionaires earned MOP20.78 (US$2.59 billion) in the previous month. October recorded a 6.6% rise compared to the previous year and a 20% jump from September. 

October gained from a robust National Day, China's week-long holiday that starts on October 1 annually to commemorate Mao Zedong's founding of the People's Republic of China on October 1, 1949. Attendance during the weeklong festival increased, with daily border crossings reaching nearly 142K. The traffic surpassed visitation levels from before the pandemic. 

Casinos gained from an increased number of visitors, resulting in October surpassing the May GGR total of $2.52 billion, which had been the highest gaming month for the resorts in 2024. October 2024 was likewise the top month since January 2020. 

As of October, casino earnings reached $23.74 billion, an increase of more than 28%, or $5.21 billion, compared to the same 10 months in the previous year. However, even with the gaming recovery in 2024, the earnings from January to October remained 23% lower than during the same timeframe in 2019. 

Investors Becoming Fatigued 

Investor sentiment towards the six publicly listed casino firms in Macau remains low nearly five years after the coronavirus outbreak. 

China’s continuation of Xi Jinping’s “zero-COVID” policy until the end of 2022 postponed a post-pandemic recovery in Macau. Beijing's instruction to Macau to address money laundering and capital outflows — both affecting Macau's junket sector — has additionally hindered a gaming recovery since the end of zero-COVID in December 2022. 

Compounding the financial strain on the six operators is their obligation to invest tens of billions of dollars into their resorts to obtain new 10-year gaming licenses valid until 2032. Sands, Galaxy, Wynn, MGM, Melco, and SJM consented to invest nearly $16.2 billion in non-gaming initiatives throughout the duration of the concessions. 

The nongaming directive aims to reduce Macau’s economic dependence on casino gambling and turn the Chinese enclave into a leading destination for leisure tourists, families, and non-gaming enterprises. 

Investors, nonetheless, continue to be cautious regarding the casinos’ future. Macau casino shares fell 11.4% in October, whereas the Hang Seng Index declined by under 4%. 

Market Challenges 

October was an essential month for Macau casinos and their shareholders. Casino stocks in Macau experienced increases during Friday trading. 

Looking forward, worries persist for the six major casino companies. A major concern is China's recent directive for Macau police to focus on unlicensed currency exchanges that have frequently functioned in the resort areas for many years. 

These exchanges enabled mainland high rollers to transfer funds to the exchanges and retrieve their cash once they entered the casino area. The unregulated exchanges, in contrast to banks and other more legitimate financial entities, had assisted mainland high rollers in evading Beijing’s stringent regulations on capital outflow. 

As unlicensed money exchanges are now illegal, high rollers and premium mass players will face increased difficulties in moving substantial sums of money to the tax haven in Macau. 

Visitors to Macau are restricted to bringing $15,000 in cash. Those possessing an amount greater than that must utilize the entry port’s “Red Channel” processing system. 

The Red Channel requires travelers to spend significantly more time finishing the customs procedure compared to the Green Channel, which is for those with no items to declare. Travelers using the Red Channel risk having their cash and/or belongings taken unless they provide a legitimate explanation for attempting to bring in the assets, or CBNIs — Currency and Bearer Negotiable Instruments.