Macau Gaming Tax Revenue Soars as Recovery Accelerates

Macau’s gaming sector remains in full swing as November’s government gaming tax revenue hit MOP$8.0 billion ($999 million), up 6.4% year-on-year and up 20.3% compared to October, according to the latest figures from the Macau Financial Services Bureau (DSF). These figures underline the region’s ongoing resurgence following pandemic-induced setbacks.

Key Metrics Recorded Significant Increases

Gross gaming revenue reached MOP18.4 billion ($2.3 billion), rising 14.9% in November and surpassing projections. The DSF did not release visitation figures, as the information will become available later in the month. However, analysts expect these figures to remain consistent with October’s results, which reached 98% of pre-COVID levels.

Government revenue from January to November 2024 totaled MOP$100.5 billion ($12.5 billion), with gaming taxes still holding a significant 80.6% share despite the region’s diversification efforts. Deutsche Bank analyst Carlo Santarelli recently projected Macau to retain momentum with a 3% GGR growth in December to $2.39 billion.

According to Santarelli’s projections, Q4 was tracking 10.4% higher year-on-year, with GGR reaching 79.5% of pre-pandemic levels. Analysts expect Macau to retain this momentum well into 2025 as the region benefits from relaxed travel restrictions and increased tourism. However, weaker spending from Chinese visitors due to economic uncertainty could pose challenges.

Diversification Remains a Long-Term Priority

Despite gaming’s dominant contribution to Macau’s revenue, the territory is taking steps toward diversifying its economy. In 2023, the Macau government devised a plan to diminish its dependence on gaming by shifting its economic activities to tourism, entertainment, leisure, and hospitality. The territory established an official committee to spearhead this transition, reshaping Macau’s global role.

Macau’s leading gaming and hospitality companies have already started diversification initiatives by adding non-gaming facilities such as high-end resorts, cultural activities, and family-friendly entertainment. The region also banks on its well-known culinary status to attract tourists other than the usual casino visitors, highlighted by its 2017 UNESCO “City of Gastronomy” award.

As Macau approaches pre-pandemic gaming revenue levels, its evolution into a multi-faceted tourism and leisure destination could solidify its position as a global economic hub and help it stand out among other regional competitors. Although gaming remains the backbone of its economy, the region’s diversification efforts could foster long-term development potential.