Growth in Macau GGR Expected to Drive Investment in Nongaming Sector

In Macau, 2023 brought about a successful year for casino operators, with December in particular proving to be a standout month. The gross gaming revenue (GGR) for Macau’s casinos in December reached MOP$18.57 billion, a substantial increase of 433% compared to the same period in 2022. This surge in revenue also represented a 16% increase from November, marking a significant achievement for the industry.

Throughout the year, Macau’s casino operators experienced a steady growth trajectory, culminating in a total GGR of MOP$183.1 billion for 2023, reflecting a remarkable 334% increase from the previous year. The lifting of China’s “zero COVID” policy in 2022 and an increase in tourism had a positive impact on the performance of the casinos across Macau, reaffirming the sector’s path to recovery.

As a result of these exceptional outcomes, the six casino operators in Macau—Melco, SJM, Wynn, MGM, Sands, and Galaxy—are now compelled to allocate an additional 20% of their revenue into nongaming amenities and projects, following the new gaming concessions secured in December 2022. This provision was included in the contracts to promote diversification and reduce the industry’s reliance on casino revenue.

The substantial investment in nongaming projects, totaling MOP$108.7 billion over the next 10 years, is in alignment with Macau’s strategic goal to broaden its offerings beyond traditional casino activities. These projects may include various attractions, tourism initiatives, and sports and entertainment events to enhance the overall visitor experience in Macau.

Overall, the exceptional performance of Macau’s casinos in 2023 has undoubtedly set the stage for continued growth and diversification in the years to come, positioning the enclave as a premier destination for entertainment and leisure.