Gambling revenues rise by 10 per cent in Macau in July

Macau has registered a 10.3 per cent increase in gambling revenue in July compared to that of the same period last year. The heightened activity of Chinese betters in the country’s only legal casino hub could be the main factor behind the rise. Gambling revenues in the territory has been rising constantly for the last two years, after a period of losses and corruption charges prior to that. According to the data released by Macau’s Gaming Inspection and Coordination bureau, revenues were up from the month of June, reaching 25.3 billion patacas ($3.14 billion) versus analyst expectations of 5–13 per cent growth.

Growth in the high-roller VIP segment for casino operators has moderated over the past two months, in part due to heavy betting on the World Cup which ran from June 14 to July 15, said analysts.

Macro factors including tighter Chinese credit and softening economic growth may also crimp demand from VIP players going forward.

While Macau’s VIP punters generate around 50 per cent of overall revenues, the mass market is steadily growing and outpaced VIP growth in the second quarter for the first time since the start of 2017.

Casino operators are pushing to expand their offerings for mass market players, particularly in the premium mass segment where customers bet thousands of dollars per bet and come directly to the casino. VIP players are brought in by commission earning junket operators who act as middlemen.

Source: Reuters / Farah Master / Vyas Mohan