Zona de Azar China – Macau’s Mass Table Games Dominate 4Q23 Gaming Revenue, Reaching 75%
China.- January 18th 2024 www.zonadeazar.com Macau’s mass gaming tables continue their ascent in market share, claiming 75.2% of total table revenue in the fourth quarter of 2023. This represents a notable increase from 74.4% in the previous quarter and a significant surge from 52.7% in the fourth quarter of 2019.
Figures released by the Gaming Inspection and Coordination Bureau (DICJ) unveil that mass market baccarat revenue in 4Q23 reached MOP$33.5 billion (US$4.15 billion), constituting 61.8% of Macau’s gaming operators’ total revenue of MOP$54.3 billion for the quarter. This marks an increase from its 58.9% share in the third quarter of 2023.
Conversely, VIP baccarat revenues amounted to MOP$12.7 billion (US$1.57 billion), making up just 23.4% of Macau’s overall Gross Gaming Revenue (GGR). This reflects a decrease from 24.0% in Q3 and a substantial drop from 44.7% in 4Q19.
Deutsche Bank analyst Carlo Santarelli notes in a report that total mass GGR in 4Q23, inclusive of slots, grew by 4% compared to 2019 and increased by 11.8% quarter-on-quarter, highlighting Macau’s ongoing recovery. VIP GGR also saw a 7.9% quarter-on-quarter growth but remained 60.7% lower than in 4Q19.
Santarelli points out that the number of operating tables in the market increased by 7.0% year-on-year but declined by 11.0% compared to 4Q19. Similarly, slot machine numbers rose by 11.4% year-on-year but dropped by 29.4% compared to the fourth quarter of 2019.
These shifts in Macau’s market dynamics coincide with mainland China’s crackdown on cross-border gambling and the upheaval in Macau’s junket industry following the arrests of former Suncity Group CEO Alvin Chau in November 2021 and Tak Chun Group CEO Levo Chan in January 2022.
The Macau government’s recent updates to its junket law restrict each junket to working with only one concessionaire, preventing them from operating VIP rooms within casinos and prohibiting revenue share agreements with operators. Consequently, concessionaires are increasingly focusing on the lucrative premium mass segment, offering higher margins, while VIP operations are leaning towards a direct VIP model.
Edited by: @MaiaDigital www.zonadeazar.com
