Macau GGR Increase in 2023 to Boost Nongaming Investments

Casino operators across Macau wrapped up a successful 2023 with exceptional results achieved in December and overall good performance throughout the year when compared to 2022. The outstanding results will now push the enclave’s six casino operators, Melco, SJM, Wynn, MGM, Sands and Galaxy, to invest more money into nongaming amenities and projects.

The reported gross gaming revenue (GGR) for Macau’s casinos in December hit MOP$18.57 billion ($2.3 billion). This result, compared to the corresponding period in 2022, represented an increase of a staggering 433%. Not unexpectedly, a comparison to November also shows an increase of nearly 16%.

The GGR result in December reaffirms a growth trajectory observed throughout the year and marks the best result for 2023. In contrast, for February, GGR increased by only 33% year-over-year. The exceptional performance of the gambling sector in December surpassed the initial forecasts of $2.1 billion in GGR.

Undoubtedly, the increase in tourism and the lifting of the “zero COVID” policy by China in 2022 impacted positively the performance of the casinos across Macau. The recent result confirmed that the gaming and hospitality sector is on its way to recovery. Still, results cannot be compared like for like considering the different COVID-related restrictions that were implemented and lifted over the last few years.

Casino Operators to Invest 20% in Nongaming Projects

Focusing on the bigger picture, Macau’s casino operators enjoyed an overall successful 2023 with revenue increasing more than 300% year-over-year. In total, for last year, GGR hit MOP$183.1 billion ($22.8 billion), a result that marked an increase year-over-year of nearly 334% when compared to 2022.

Back in December 2022, Macau’s six casinos secured new gaming concessions valid for the next 10 years. Within those contracts, a provision was included that would require the casinos to increase their investment in nongaming projects by 20%, subject to the sector surpassing revenues of MOP$180 billion for any year until 2027.

Considering the results from 2023, casino operators will now have to comply with the aforementioned investment requirement. Still, it is important to mention that this investment is in addition to the casinos’ commitment to invest some MOP$108.7 billion ($13.5 billion) in nongaming projects throughout the 10-year concession, as announced by IAG.

The additional funds that would be dedicated to nongaming projects complement Macau’s goals to diversify its assets and stop relying heavily on casino revenue. Investments in non-gaming projects can involve different attractions, tourism, as well as sports and entertainment events, among other activities that can boost visitation.