Macau’s gross gaming revenue (GGR) is expected to fall 5 percent year on year to MOP21.0 billion ($2.60 billion) in July, although the market should continue recovering as the World Cup schedule winds down, according to Citigroup.
The brokerage estimated that GGR reached about MOP7.3 billion ($904 million) in the first 12 days of the month. Average daily revenue rose to approximately MOP621 million ($76.9 million) during the previous week, up 5 percent from about MOP590 million ($73.0 million) per day in the first five days of July.
Citigroup analysts George Choi and Timothy Chau attributed the improvement to fewer soccer matches, with eight games played during the previous week compared with 14 in the first five days of the month.
Despite the stronger run rate, industry sources indicated that VIP volume declined by between 0 and 3 percent month on month, while mass-market GGR fell by between 2 and 4 percent. VIP hold, the proportion of wagers retained by casinos, appeared higher than during the first five days of July.
With only four matches remaining in the tournament, Citigroup expects Macau GGR to continue recovering. The brokerage maintained its July forecast, which implies average daily GGR of about MOP721 million ($89.2 million) for the rest of the month.
After the tournament, Macau’s ‘star-studded event calendar’ should help gaming revenue ‘swiftly’ return to normal, the analysts said.
