Macao's Gross Gaming Revenue Is About to Reach $1.4 Billion in February

Macao's Profit Growth: Figures

According to the analytical report released by Morgan Stanley, the gross revenue from wagering in Macao is expected to reach almost $1.4 billion.

The same analysis states that the demand for games of chance remains very high, reflected in:

• the enlarged casino traffic;
• the rising min bets.

All this is despite the typical Asian tendency of regaining tranquillity after the holidays.

Morgan Stanley’s analysts noted how air capacity from China to Macau has increased, currently at a level of about 70% compared to the pre-Covid-19 volume. This is a very hopeful sign for the gambling market in Macau, as the vast majority of solvent and elite customers travel by air.

Data from the hotel industry is also reassuring. Visiting rates are being raised: 9 out of 25 establishments surveyed had no free rooms for February from 18 to 24. Clients seem willing to pay more for holidays and play at gaming venues now.

Daily Earnings from Gambling

The profits obtained from the sector in the first week of February were very high. The figures on daily results show:

• an increase in revenues to about $47 million;
• a 36% expansion in sales from February 2022;
• a 31% enlargement compared to January metrics.

Tourist flows of bigger volume will lead to major earnings for the gambling sector. However, the total turnover is still far from the pre-Covid period as it is predicted to reach about 44% of the February 2019 revenues.

If Morgan Stanley's analysis turns out to be correct, the market experts may reconsider their financial estimates for the gambling industry in 2024.

In January, gross profits from games of chance rose by 82.5% compared to the figures shown in the same month of 2022. The result is higher than previously promised estimates made by Bloomberg (36.5%). Also, January 2023 is the first financially successful period after 10 months of declining profits caused by Covid-related policies.