Since the start of the international Covid-19 coronavirus pandemic, Macau has been a shadow of its former self.
However, it gradually recovered, starting last January.
This is how it finally seems to have found a certain cruising speed. Indeed, we have just learned that the six concessionaires of the former Portuguese colony generated a cumulative gross gaming revenue of more than 10 billion dollars during the first half of 2023.
For comparison, Las Vegas casinos only recorded $7.5 billion.
As a result, Macau has once again become the true casino capital of the world.
Strict restrictions to combat Covid-19 have hurt casinos
Since Macau’s return to China, local authorities have welcomed foreign casino operators. Since then, the local casino market has exploded, surpassing that of Las Vegas by the 2010s.
However, the situation has been extremely complicated during the international Covid-19 coronavirus pandemic. Extremely strict restrictions have been put in place to combat the health crisis, which has severely impacted tourism.
However, Macau only has a population of around 670,000, which is not enough to support the local casino industry.
As the major restrictions lasted until early 2023, gross gaming revenue was very low for many months. As a result, this special administrative region logically fell behind Las Vegas.
2019 levels not expected to be reached until 2024
In the first six months of the year, Macau’s gross gaming revenue crossed the symbolic threshold of $10 billion, enabling it to once again become the true world capital of casinos.
For the time being, most analysts believe that the levels of 2019, before the health crisis, will not be reached by the end of 2023. For that to happen, we will have to wait at least until 2024.
We can therefore expect continued growth in the coming months. The gap between Macau and Las Vegas is therefore expected to continue to widen in the future.
The return of the big players to Macau
It must be said that Macau’s return to grace on the international stage is a remarkable achievement, especially considering that the VIP gaming sector, once the number one player, is now a shadow of its former self. Indeed, the lucrative junket industry has now practically disappeared.
So it is only the mainstream players who have enabled this impressive rise in Macau casinos.
However, there are signs that high rollers are slowly starting to return to the former Portuguese colony. At least, that’s what the figures for the current month of August indicate. If the VIPs finally return en masse, one thing’s for sure: Las Vegas won’t be able to catch up.
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