Macau’s Casino Industry Shows Signs Of A Turn Around After Chinese New Year
- Macau’s GGR has increased after CNY
- Analysts impressed as not much contribution from VIP gambling
- Final review of Gaming Bill by June 2022
It looks like the Chinese New Year (CNY) has brought good tidings for Macau’s casino industry as it registered its highest gross gaming revenue (GGR) in nine months. Industry analysts term it a positive development as the GGR peaked at circa $53 million per day from 7 to 13 February 2022.
Not Much Contribution from VIP Gambling
Analysts said that the figures improved by 29% over CNY. The current average is the highest daily rate since May 2021. The improvement is attributed to a 52% rise in tourism. The news has come as a breath of fresh air as Macau’s VIP gambling industry has been in a tough spot ever since the arrest of Suncity Group CEO Alvin Chau.
JP Morgan analysts DS Kim, Livy Lyu, and Amanda Cheng noted that it was common to see demand pick up after the CNY, it was mostly due to the VIP and high-end gambling sector. Now that VIP junket firms are not operative, the CNY tail-end demand is an impressive sign that indicates the soaring demand for mass gambling in Macau.
The mass GGR has risen despite Macau still requiring tourists to show a negative COVID-19 test obtained within 48 hours before their arrival. Bernstein’s Vitaly Umansky opined that the rise was due to the rise in premium play and tourism after the holiday season. The VIP GGR became better despite the drop in hold rate after it overperformed during the New Year.
Currently, Macau’s month-to-date GGR is around $620 million. Though the average daily rate of $48 million is 58% less than in February 2019, the year-on-year increase is still higher by 47%. Umansky estimated that the VIP GGR in February has doubled compared to January, despite the low base. The month-on-month mass GGR is up by 80%. It is speculated that the GGR in February 2022 will be 45% higher than in January 2022 and would be 64% less than in February 2019.
Final Review to Gaming Bill by June 2022
After an assembly sub-committee meeting on 14 February 2022, legislator and assembly head Chan Chak Mo said that the gaming law amendment bill might be given a final reading by June 26, 2022.
The committee is responsible for reviewing the bill and its provisions. Chan added that the meeting tried to examine the new share capital requirements and the need for a gaming concession director recommended by the government.
David is our resident 'down under' contributor, letting us know what is going on in the southern hemisphere, he is also keen blackjack player