Gambling revenue in the Macau market rocketed by 435.0% year-on-year to MOP$16.04bn (£1.56bn/€1.83bn/US$2.00bn) in November, the fourth highest monthly total so far in 2023.
The figure was some way ahead of MOP$3.00bn in November of last year but 17.7% behind $19.50bn in October 2023. However, October’s total was the highest monthly amount in Macau since before the pandemic.
Constant year-on-year growth in Macau is the result of removing all restrictions related to Covid-19. Last year, casinos in Macau faced temporary closure, while travel to and from the region was restricted.
These measures, however, were removed following major protects against the ‘zero-Covid’ policy in China. Visitors from outside China no longer have to quarantine and flights into the country are now uncapped.
Macau success for Melco and StudioCity in Q3
Melco Resorts & Entertainment, one of the leading casino operators in Macau, reported a major upturn in revenue as a result of restrictions being eased in the region.
In Q3, revenue hiked 320.6% to US$1.02bn. Casino was the catalyst for this growth, with revenue jumping 346.2% to $812.1m.
Focusing on property performance, City of Dreams in Macau led the way with revenue of $506.2m. Also in Macau, revenue from Studio City reached $277.7m and Altira Macau $24.2m. Mocha and other operations in the region generated a further $30.1m in revenue.
Group net loss attributable to Melco in Q3 hit $16.3m, much lower than $243.8m last year.
In addition, Melco posted $280.6m in positive adjusted EBITDA for the quarter. This was compared to a loss of $34.9m in the same period in 2022.
Southeast Asia, not Macau, to keep fuelling regional gaming growth
While Macau continues to pull in visitors and generate billions in revenue, it may not be the main driver of growth in the region.
Last month, iGB looked at how Southeast Asia represents the greatest opportunity in the region’s gaming galaxy. It is also billed as the greatest competitive danger to established casino destinations, most notably Macau.
Industry veteran Daniel Cheng went as far as saying the ASEAN bloc will overtake Japan within this decade. He added that to will become smaller in economic power than only the US, China and the European Union.