Macau is enjoying a bump in gross gaming revenue tied to increased tourism, crowd-pleasing entertainment, improved transportation – and a rise in VIP play. New luxury hotel accommodations are doing their bit to attract and retain travellers visiting the city.
According to Bloomberg, Macau casino shares have risen 59% since April as GGR continues to outpace analyst expectations.
Casinos in the city recorded GGR of MOP$21.19 billion (US$2.62 billion) in May, up 5% year-on-year and 12.4% over April, for the best month since borders reopened in January 2023.
The trend continued in June – typically a slower month after the Golden Week holiday – with GGR of MOP$21.06 billion, a surge of 19% year-on-year.
As of mid-July, casinos had generated MOP$18.6 billion for the month, up 11.6% compared to 2024. That brought the total to MOP$132.35 billion, an improvement of 36.7% over last year. The ongoing positive direction led Seaport Research Partners to revise its annual forecast, projecting a 7% boost in GGR for the year and as much as 9% for the second half.
More tourists, tourism attractions
Data from the Macau Government Tourism Office shows that 19.22 million visitors visited the gaming mecca through June of this year, an increase of 14.9% compared to the same period in 2024. The city is making it easier for them, with relaxed visa policies and improved transportation options.
As usual, approximately 70% of tourists hail from mainland China. But international tourism is on the upswing too. Last year, more than 2.4 million visitors from outside Asia came to Macau, an increase of 66% year-on-year. The city is actively wooing them with increased non-gaming attractions like sports, entertainment and cultural events.
In a notable recent example, analysts from JP Morgan, Citi and Seaport Research all credited June’s outperformance to a spillover effect from concerts by Cantopop and K-pop stars. The standout was a Galaxy Macau residency starring Hong Kong crooner Jackie Cheung.
On Cheung’s opening night at Galaxy Macau, for instance, Citi’s table survey saw a 16% increase in premium players and a 36% increase in the average wager.
VIP play up, but mass still on top
VIP gaming revenue for the first half rose 11% year-on-year, versus just 2% for the mass market. High rollers kicked in about 26% of the half-year total. But, as Macau Business reports, mass players “still reign”, making up the balance of 74%.
The publication cited a report from CreditSights, a division of Fitch. In a Monday note, the researcher stated: “For 1H25, total GGR was up by 4% YoY to MOP118.8 billion and slightly above pace (~52%) to meet the government’s 2025 target of MOP228 billion.”
Despite all the wins, spend per visitor for the period is down. On a per-capita basis, each spent an estimated MOP6,180 in the first six months, a drop of 9% from last year. CSLA attributed the decline to “Macau’s diversification into more non-gaming offerings, such as entertainment events”, calling it a driver for more leisure visitors over gamblers.
CreditSights concurred, saying per-visitor spend could “remain constrained by visitation upside largely coming from the less affluent regions of China with lower GDP per capita”.
Since May, Macau casino revenue has outpaced analyst projections. That momentum has driven gaming shares up almost 60%, a rally that is expected to continue.