VIP play in Macau during the fourth quarter of last year actually saw a sequential uptick, rising by nearly 8 percent to MOP12.7 billion ($1.57 billion). The figure marked the best quarter for VIP play since the fourth quarter of 2019, before the pandemic.
The uptick comes despite the Macau government’s push to move towards a mass market model and away from junkets.
In 2019, the sector brought in some MOP135.22 billion ($16.76 billion) – according to data on VIP Baccarat play from the Gaming Inspection and Coordination Bureau (DICJ). This figure has fallen to MOP45.18 billion ($5.6 billion) in 2023. Meanwhile non-VIP Baccarat play rose to some MOP110.49 billion ($13.7 billion) in 2023, with the fourth quarter results topping even those of 4Q19, at MOP33.53 billion ($4.16 billion).
Alidad Tash, Managing Director of 2NT8 Limited, notes that “The percentage of VIP baccarat out of overall GGR continues to shrink. In the fourth quarter of 2023, it reached 23.5 percent, a far cry from 46 percent in 2019 and 66 percent in 2013.”
And given the SAR’s changing gaming dynamics, the expert notes that “the number is expected to continue decreasing over the next few years as the emphasis shifts to mass and non-gaming patrons.”
According to analysts at Deutsche Bank, mass table games accounted for some 75.2 percent of total table revenue in the fourth quarter, a slight uptick sequentially but a strong rise from the 52.7 percent they contributed in 4Q19. This comes as VIP GGR rose 7.9 percent quarterly, despite having fallen 60.7 percent when compared to 4Q19.
Mass, including slots was up 4 percent when compared to 4Q19 and rose by 11.8 percent compared to the previous quarter.
Total GGR during the year from casinos amounted to MOP183.05 billion ($22.7 billion), with the fourth quarter contributing some MOP54.11 billion ($6.71 billion).
Macau’s 10-year gaming licenses commenced on January 1st of 2023, with the SAR finally opening its borders after nearly three years of closure due to COVID.
Meanwhile, non-casino gaming – including lottery, horse racing and sports betting – rose just 1.8 percent yearly in 2023, totaling MOP6.38 billion ($790.9 million). The fourth quarter contributed the most, at MOP1.7 billion ($210.7 million), but the sector has failed to rise to the figures seen pre-pandemic. Football betting was the strongest contributor, at MOP3.85 billion ($477.2 million), while basketball betting revenue was MOP2.26 billion ($280.15 million), both slight upticks yearly but falling short of pre-pandemic values.
Horse racing brought in just MOP199 million ($24.67 million) during the year, in what is likely to be the final year of its operation. The Macau government announced that the Macau Jockey Club is forfeiting its concession and its land will return to the government by April 1st of 2024. Racing activities are supposed to end by March 31st of this year.
