Macau’s gross gaming revenue run-rate fell by about 20 percent month-on-month in the first 14 days of June, as the start of the FIFA World Cup likely diverted some player betting budgets away from casinos, Citigroup said in a June 15th note citing industry sources.
GGR for the first 14 days of June likely reached about MOP9.0 billion ($1.12 billion), implying a daily run-rate of around MOP586 million ($72.6 million). That was about 20 percent lower than the May run-rate of MOP729 million ($90.3 million) per day and about 16 percent below the first-week June run-rate of around MOP700 million ($86.7 million) per day.
Citigroup analysts George Choi and Timothy Chau said VIP volume fell about 15 percent to 18 percent month-on-month, while mass GGR declined about 10 percent to 13 percent. VIP hold rate appeared slightly lower than in the previous week.
The brokerage maintained its June GGR forecast at MOP19.0 billion ($2.35 billion), implying a 10 percent year-on-year decline and average daily GGR of around MOP625 million ($77.4 million) for the rest of the month.
In a previous forecast, Citigroup also expected Macau GGR to decline 5 percent year-on-year in July, as the World Cup runs from June 11th to July 19th. The analysts said the tournament could have a heavier impact on GGR in the coming weeks as the number of matches increases, potentially drawing more betting activity away from casinos. Even so, they expect a ‘swift GGR recovery’ after the tournament, supported by concerts and events in mid-July.
The latest note said upcoming concerts by Keung To at Galaxy Arena and Wakin Chau at The Londoner Arena could help mitigate further GGR weakness.
