Macau casinos gross gambling revenue (GGR) in May rose 24.8% in monthly terms, according to data released by the local regulator, Gaming Inspection and Coordination Bureau.
May’s GGR was slightly above US$413 million, surpassing the amount obtained in April. After all, gross revenue in April was the lowest in nearly 20 months, close to the start of the Covid-19 pandemic.
However, the GGR last month is down 68% from the performance achieved in May 2021. The May 2022 result raises Macau’s gross revenue figure for the calendar year, but is down 44% compared to the first five months of 2021.
Investment analysts said there was some “demand pick-up after seasonality/post-holiday slowdown” in early May, referring to the GGR’s performance during a week-long Chinese holiday due to Labor Day on May 1.
Strict travel policy has reduced visits to Macau casinos
The performance in May of the GGR “should not come as a surprise given mobility restrictions and weak incentive to travel (especially for longer trips) in mainland China, as well as a stricter border policy”, as per a note from the GGR. JP Morgan on Wednesday. Securities (Asia Pacific) Ltd.
“We view these GGR impressions as non-events, until a reasonable level of traffic flow resumes with the gradual easing of China’s travel/border policy,” wrote analysts DS Kim, Amanda Cheng, and Livy Lyu.
Macau authorities announced that people wishing to travel to Macau from neighboring Guangdong province in China must have a negative test for Covid-19 within seven days. This is a relaxation of the previously required 72 hour time limit. Mainland China is the only place currently to have a largely quarantine-free travel agreement with Macau.
Brokerage Sanford C. Bernstein Ltd noted that May “recorded the second lowest monthly average daily revenue since September 2020, when China resumed Individual Visit Scheme travel with Macau, only better than April 2022”.
“Covid-19 travel impediments and potential visa controls for frequent gamers could continue to impact short-term visitation and gross gaming revenue,” Vitaly Umansky analysts Louis Li and Shirley Yang said in a press release. memo.
The institution predicts that average June revenue will increase by 47%, “but it could still be lower if travel does not increase during the month”.
