The MSAR saw a year-on-year increase of 23.7 per cent in its gross gaming revenue in May, standing at MOP22.74 billion (US$2.83 billion), the latest data released yesterday by the city’s Gaming Inspection and Co-ordination Bureau (DICJ) reveals.
In cumulative terms, the city’s gross gaming revenue reached MOP106.38 billion, posting a growth of 15.8 per cent vis-a-vis MOP91.91 billion recorded a year ago. Casino operators in the MSAR have seen their stocks soar over the past 10 months, with Galaxy Entertainment up 77 per cent, Wynn Macau up 45 per cent and Sands China up 17 per cent.
The resurgence of Macau will pose a threat to rival casino hubs as they claw for business from wealthy Chinese players who contribute the bulk of operators’ profits.
According to Reuters, Macau’s revenues are more than 6 times Singapore’s and 9 times those of the Philippines.
The monthly result has outperformed the estimate made by the analysing group Union Gaming for the fourth straight month, with the group previously predicting an increase of 16.5 per cent.
The result also surpassed the prediction of 14 per cent to 18 per cent growth made by brokerage firm Wells Fargo on Tuesday.
Led by Grant Govertsen, Union Gaming initially anticipated last month’s revenue would be slightly affected by the visit to Macau of top Chinese official Zhang Dejiang, Chairman of the National People’s Congress, in early May, as well as one less Sunday on the calendar this year.
According to Union Gaming, gross gaming revenue per day was MOP733 million last month, representing ‘a 9 per cent sequential increase relative to the seasonally slower April’.
The growth of May’s revenue, as perceived by the analysts, has brought the mass market trajectory in the first quarter, with the quarter-to-quarter increase of 15 per cent, to the second quarter of this year, with the current performance possibly ‘in the high teens’.
In terms of the VIP segment, the rate is accelerating, with the trend in the first three months seeming to have been maintained into the second quarter.
The positive trend in VIP business, in particular, can be seen most significantly in both Wynn properties, which ‘continue to outperform the market by a very wide margin’ as stated by the analyst group.
The group, meanwhile, pointed out that the growing rate in the VIP segment can be explained by the ‘low water mark of the GGR (gross gaming revenue) downturn’ during the second quarter of last year.

Outlook
With the encouraging results from May, which was slightly lower than the amount generated in February when the Chinese New Year fell, Union Gaming believed that the city’s recovery is ‘in full tilt’.
Given that last June’s revenue hit the low point, the group is expecting the growth rate for this June to remain at 20 per cent.
In terms of the quarterly estimation for the six gaming operators in Macau, analysts are anticipating 22 per cent growth in revenue for the April to June period, with VIP to increase 24 per cent and mass market to increase 20 per cent.
However, the new flow-of-money control measures imposed by the authorities may affect future months’ revenue.
Last week, Macau formed an alliance with the Mainland to tackle money laundering and terrorism financing, beefing up its anti-money laundering framework with a much wider scope and stricter compliance measures.
New security measures including facial recognition at ATM machines are also being rolled out as well as the implementation of a Macau border currency declaration system, effective in November.
Conversely, the newly opened Taipa Ferry Terminal should boost visitor numbers to the neon-lit Cotai casino strip.
Union Gaming has also expressed a cautious outlook on the upcoming visit of Xi Jinping, Secretary General of the Communist Party of China’s Central Committee and Chairman of the Central Military Commission, to Hong Kong in early July, which might dampen VIP performance more than Zhang’s recent visit.
As such, the group is forecasting market-wide gaming revenue growth to be 15 per cent in the third quarter and 7 per cent for the fourth quarter. With Reuters

This article is by Cecilia U of the Macau Business Daily,  2 June 2017