Mass Market Business Helping Macau Casinos

Mass Market Business Helping Macau Casinos

The Special Administrative Region (SAR) of Macau is finally recovering from the damage done by the coronavirus. Though yearly figures are disappointing, it has started recovery since September. The aggregated fourth-quarter mass-market gross gaming revenue is helping the casinos feel optimistic as it reaches its highest level on record.

The changing fortunes of Macau

A new report from Inside Asian Gaming cites JP Morgan’s views on the Macau market. The combined gross gaming revenue for Macau in the last quarter of 2020 dropped by 70% on a year-on-year basis at just $2.73 billion. The investment firm suggests that the mass-market games have accounted for 3/4th of the final numbers. This is the highest level on record for these games, underlining a recovery in the region.

Mass Market Business Helping Macau Casinos

DS Kim and Derek Choi, two JP Morgan analysts noted that the casinos in Macau hit a daily average gross gaming revenue of $29.67 million during the fourth quarter. Its VIP receipts fell down by 80% on a year-on-year basis. The mass-market market receipts fell by 63% during the same period. However, despite the fall, the EBITDA of the sector will remain positive because of the higher mass mix. They also highlighted stronger cost-realization and non-gaming factors.

The analysts said,

“This was well-publicized from last earnings already but it’s still a comfort to see them no longer printing big losses.”

Numbers for 2020 still down

According to official information from the Gaming Inspection and Coordination Bureau, Macau’s aggregated GGR for December was $979.89 million, which decreased by 65.8% on a yearly basis. During this time, MGM China Holdings Limited had the biggest share of the market because of its premium-mass offering. A reliance on VIP players led to SJM Holdings Limited becoming the biggest loser in the region.

Some analysts point out the slow but steady recovery in the SAR since September and suggest that the casinos will be back to 80% of their pre-pandemic levels in 2021.

About sherlock

Sherlock Gomes loves to write and express his views on anything related to Gaming, Gambling, & Casino. He has been covering Gaming for more than two years now.