Macau Casino Gaming Revenue Rises 12%Misses Estimates After Money Exchange Crackdown |
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After seeing gaming revenue dip in June, Macau’s casino industry bounced back in July – rising 12% compared to July 2023 to $2.3 billion, according to the Macau Gaming Inspection and Coordination Bureau.
However, that total missed revenue projections for the second straight month. Many analysts predicted an increase of 14%, according to reports, and July’s revenue is still only 76% of the pre-pandemic level in 2019.
“The Macau GGR shortfall can be attributed in part to the midsummer slump,” iGB.com notes. “Travel from the mainland typically surges during the May Golden Week holiday, then tapers off in June and July. In addition, there were only 12 weekend days last month, versus 15 during the same period in 2023. Weekends generally boost revenue by about 20% over weekdays.”
Money Exchange Crackdown
Beyond those reasons, some in the industry also point to the Chinese government’s crackdown on illegal money exchanges. In the past, so-called “money exchange gangs” would provide cash for high-stakes gamblers from the mainland as high-interest loans.
The practice has fueled fraud, theft, and smuggling, according to Chinese authorities. That led to additional cooperation between Macau officials and China’s Ministry of Public Security in curtailing the illegal money exchange businesses.
The ministry noted that it was leading “a fierce offensive against crimes such as illicit money-exchange activities.” These efforts also curtailed casino expenditures in the island’s gaming sector.
“This is a complex topic because of the disadvantages that the absence of money changers entails, especially for the six large integrated tourism and leisure companies,” MacauBusiness.com reported.
Despite not meeting estimates, the island’s gaming sector continues seeing an overall recovery trend since the pandemic. The industry is now up 36.7% compared to the same period in 2023 as China has relaxed travel requirements, bringing more gamblers to the island.
Poker tournaments also began returning to Macau this year as well, although the World Poker Tour was forced to cancel an event in May.
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