Free services provided to customers accounted for 63 percent of operating expenses among Macau’s gaming operators in 2024. The figures were released on Wednesday by the Statistics and Census Service (DSEC) in its 2024 Gaming Sector Survey.
The survey categorizes these outlays under ‘Complimentary Goods & Services Provided to Customers’, a practice long regarded as one of the main strategies for attracting and retaining premium clients. These free services include a broad range of perks designed to build customer loyalty and reinforce Macau’s appeal as a gaming destination.
Hotels and dining dominate free services
Hotel accommodation was the largest component of complimentary services, accounting for 34.4 percent of total operating expenses in this category. Food and beverage offerings followed at 19.9 percent, while transportation costs such as bus, ferry, and air tickets contributed 3.3 percent. Other complimentary goods and services made up 5.5 percent.
Together, these expenditures highlight the heavy reliance of concessionaires on non-gaming perks to attract high-value customers. The approach has remained consistent, despite some structural adjustments.
Before COVID-19 and the government’s crackdown on junket operators, part of the cost burden was shouldered by junkets, which could share gaming revenues and were responsible for certain high-value client expenses. However, under the revised gaming law, which ended revenue-sharing arrangements, the responsibility for providing complimentary services shifted fully to concessionaires. Since 2019, the share of operating expenses devoted to free services has risen from the mid-40 percent range to more than 60 percent today.
Beyond complimentary services, other categories of operating expenses also played a role. Market research and publicity accounted for 6.6 percent, while management and contractual services made up 17.2 percent. Spending on consumables, maintenance, and professional services, though smaller, reflected the broad operational base required to sustain large-scale casino operations.
Overall, operating expenses accounted for 43 percent of the sector’s total expenditures in 2024, up from 39.6 percent in 2023. Compensation of employees accounted for 22.8 percent, while purchases of goods, commissions, and customer rebates reached 24.6 percent. Non-operating expenses, including interest and depreciation, stood at 9.6 percent.
Gaming sector surplus climbs nearly 25% in 2024
The survey also reported strong financial performance across the sector. Total receipts climbed 23.1 percent year-on-year to MOP231.45 billion ($28.7 billion), while total expenditure increased by 18 percent to MOP94.37 billion ($11.7 billion). This resulted in a gross surplus before taxes of MOP143.12 billion ($17.7 billion), up 24.7 percent compared to 2023.
Macau’s six licensed gaming concessionaires showed similar growth trends. Their combined receipts rose 23.3 percent to MOP230.76 billion ($28.6 billion), while expenditure increased 18.3 percent to MOP93.87 billion ($11.6 billion). The operators collectively employed 52,426 full-time staff, representing a 3 percent increase from the previous year.
