Macau has recorded its lowest-ever gross gaming revenue during a year for 2022, with annual figures at just MOP42.19 billion ($5.26 billion), a drop of 51.4 percent yearly.
December’s figures rounded out the slow gaming year, with MOP3.48 billion ($432.74 million) in GGR registered in the month by the region’s gaming watchdog. The December figure is a 56.3 percent yearly drop, despite being a 16 percent monthly improvement.
While Macau’s December and yearly figures are poor comparisons of pre-pandemic levels, the SAR is poised to move into a new transitional period, after the government eliminated its quarantine policy and is opening up to the world, alongside mainland China’s policies to also shift away from zero-COVID.
While the policy change has been welcome news to most, the city continues to battle its wave of COVID infections, with many of the city’s venues closed due to infected staff.
Authorities say that the COVID wave has now peaked, paving the way for Macau’s gaming concessionaires to maximize their new licenses, as they aim to drive revenue to support their non-gaming spend promises under their new contracts.
Concessionaires have pledged $14.8 billion in investment over the 10 years of their contracts, with over 91 percent going to non-gaming investments.
Concessionaires will also be subject to a 20 percent increase on non-gaming spend, according to each of their individual contracts, if the city’s gross gaming revenue tops $22.38 billion during the first five years of their contract. The percentage spend falls after the fifth year.
Analysts estimate the yearly GGR figure could reach the threshold necessary to trigger the increased non-gaming spend by 2027.