Macau’s November Gaming GGR Hits $2.3 Billion

Macau’s gaming sector reported a gross gaming revenue (GGR) reaching $2.3 billion for November.

November’s GGR of 18.44 billion Macanese patacas (MOP) represents a year-over-year increase of 14.9%, however, it’s important to note that this figure also represents an 11.3% decrease from the previous month’s earnings.

The average daily GGR for November stood at MOP615 million, placing it at the lower end of monthly GGR figures for the year. This positioning is not unusual, as November has historically been a weaker month for Macau’s casinos. Despite this seasonal trend, the performance still managed to outpace some analysts’ expectations, particularly given the slow start to the month.

Several key factors contributed to November’s gaming revenue performance:

1. Seasonal patterns: November is typically a slower month for Macau’s casinos.
2. Slow start, strong finish: The month began with lower-than-expected revenues but saw a significant uptick in the latter half.
3. Economic conditions: Despite soft consumer confidence and weak retail sales, gaming spend per customer remained robust.
4. Recovery trajectory: The figures indicate a continued, albeit uneven, recovery from the impacts of recent global events.

Historical Context and Comparative Analysis

To fully appreciate November’s GGR figures, it’s crucial to place them in historical context. When compared to pre-pandemic levels, specifically November 2019, this year’s results show a 19.4% decline. However, this represents an improvement from October’s year-over-year comparison, which showed a 21.4% decline relative to October 2019.

The sequential decline from October to November was 8.3%, which is actually better than historical trends. On average, between 2013 and 2019, November typically saw an 11.2% decline compared to October. This suggests that while November performance may seem modest at first glance, it actually outperformed seasonal expectations.

As of November, Macau’s total GGR for 2024 stands at 77.4% of the same period in 2019. This marks a slight improvement from the end of the third quarter, when it stood at 76.9%. This gradual closing of the gap indicates a steady, if slow, return to pre-pandemic performance levels.

A closer look at different market segments reveals varying rates of recovery and growth:

1. Mass market: Year-to-date mass revenue is approximately 112% of the same period in 2019.
2. Premium mass: This segment shows particularly strong performance, running about 48% above 2019 levels.
3. VIP segment: With junkets largely removed from Macau, year-to-date VIP revenue is at about 23.3% of 2019 levels.