Macau is projected to conclude 2023 with gross gaming revenue (GGR) of MOP182 billion ($22.6 billion), approximately 62 percent of 2019 levels, according to Citigroup.
In Citigroup’s latest investment memo, analyst George Choi anticipates Macau’s December GGR will reach MOP17.5 billion ($2.2 billion), driven by normal seasonality and a ‘solid lineup of concerts during the month.’
This implies a daily run-rate of MOP565 million ($70.2 million) for the current month.
Citigroup’s recent Table Survey highlights live concerts in Macau as one of the most significant drivers boosting the city’s gaming revenue.
The survey indicates that the average wager per player in the premium mass segment increased by 37 percent in November compared to November 2019, reaching HK$22,251 ($2,856).
The survey also reveals that concerts positively impact retail performance. The research team observed enthusiastic shoppers queuing up at luxury brands during the concerts.
November in line with expectations
In November, Macau’s GGR reached MOP16 billion ($2 billion), marking a 17.7 percent decrease compared to October’s MOP19.5 billion ($2.42 billion). Citigroup’s analyst notes that these results are ‘in line’ with both the estimate and the consensus.
The GGR of MOP16 billion implies a daily run-rate for the final 11 days of the month at MOP549 million ($68.2 million), which is 13 percent higher than the previous week (November 13th-19th) at MOP489 million ($60.8 million).
‘We believe that the higher daily run-rate likely has to do with the low base in the prior week when some big players avoided going to Macau during the Grand Prix weekends,’ it notes.
This interpretation coincides with that voiced by gaming expert Ben Lee from IGamiX, who believes that the expansion of the event had a negative double-digit impact on GGR for the month, as congestion and accessibility concerns pushed punters away.
According to gaming regulator data, for the eleven months leading up to November 30th, Macau’s casino GGR reached MOP164.5 billion ($20.4 billion), indicating a 325 percent surge compared to the same period of the previous year.
