Macau‘s gross gaming revenue saw a 19% year-on-year increase in June, which helped boost the price of US casino operators’ stocks.
Gaming revenue in June was MOP$21.06 billion ($2.6 billion), just below May’s post-pandemic high of MOP$21.19 billion ($2.62 billion).
Wynn Resorts‘ stock price jumped from $91.94 last week to $104.7, an increase of almost 14%. Wynn’s two Macau casinos generate more than half of the company’s total revenue.
MGM Resorts, which also operates two properties in Macau, saw stock prices rise by over 12%. Las Vegas Sands, which has six locations in Macau, similarly saw a price rise of over 10%.
Macau’s revenue is driven primarily by tourists visiting the region, which have finally returned to pre-pandemic levels. Tourism reached a low in 2022 due to travel restrictions, but 2023 saw figures return to over 70% of the numbers in 2019.
Last year, there were 34.93 million visitors to the special administrative region, which is the only part of China to allow gambling. This was a 23.8% increase from pre-pandemic levels.
Numbers have continued to increase this year, with over 3 million visitors in May, an increase of 25% from May 2024.
The flood of tourism to the region has injected much-needed funds, but has also contributed to a rise in crime. The first quarter of the year saw gaming-related crime increase by over 60% from Q1 last year.
While the return of tourism and activity in the region has contributed to the rise in crime, authorities also attribute the rise to a change in legislation that criminalized illegal money exchange operations.
As well as the pandemic, revenue figures have also been affected by campaigns to reduce corruption in the region. The revenue figures reported in June and May show the area is recovering. But, Macau may never be able to get back to the record revenue seen over a decade ago.
In 2013, Macau’s gross gaming revenue was at MOP$361 billion ($44 billion). An anti-corruption campaign run by Chinese President Xi Jinping clamped down on wealthy businessmen using Macau casinos to launder money. As a result, VIP gaming revenue dropped by over 50% between 2014–2016.
A crackdown on junkets also led to the arrest of Alvin Chau, CEO of Suncity Group (Macau’s largest junket operator), in November 2021.
New gaming laws were introduced in 2023, which placed several restrictions on casinos, including shortening license terms, requiring the need for non-gaming investments, as well as stricter rules around financial flows.
Sam Hou Fai, chief executive of Macau since 2024, has emphasized the need for the region to diversify its economy. He also stressed that “The gaming industry is Macau’s primary industry, and if it does not develop healthily, it will have far-reaching consequences.”
Revenue figures in May and June suggest operators have come to terms with the new regulations. Though this year may not see figures of 2013, it signals a stability in the region.
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