Gambling Establishments in Macau Earn a Record $28.3 Billion from Players in 2024, Denoting the Second Successful Year of Recovery
In December 2024, Chinese President Xi Jinping visited Macau to celebrate the inauguration of Sam Hou Fai as the city's new chief executive. Amidst the celebrations, the city's gaming industry was undergoing a significant transformation.
The 2024 gross gaming revenue (GGR) showed a nearly 24% year-over-year surge compared to 2023, reaching approximately $28.3 billion. However, December 2024 casino revenue was roughly MOP18.2 billion (US$2.27 billion), representing a 2% year-over-year decline and a 1.3% decrease compared to November. This decrease made December 2024 the only month in 2024 where year-over-year GGR was lower than in the same month in 2023.
The casinos in Macau have been investing tens of billions of dollars in non-gaming amenities and attractions to diversify the city and attract new visitors. This shift in focus was evident in 2024, as the industry successfully pivoted towards the general public and so-called "premium mass" gambler.
The regulatory landscape in Macau has undergone significant changes, particularly in relation to the VIP sector. The clampdown on junket groups, led by the prosecution of Suncity boss Alvin Chau, resulted in the VIP groups fleeing the market. This was in response to Chinese President Xi Jinping's instructions to Macau and the region's Judiciary Police to better monitor the activities of junket groups, labeling the massive outflow of cash a threat to China's national security.
The 2024 GGR represented 77.5% of 2019 GGR levels, a testament to the industry's resilience in the face of these changes. Looking forward, analysts at Morgan Stanley expect "slight but steady growth" in GGR, with 2025 GGR projected at around $30 billion and 2026 GGR at around $31.2 billion.
It's important to note that the actual results will depend heavily on the Chinese economy, which has slowed in recent years. In its December note, analysts at Vanguard expect China's "full-year GDP growth to decelerate in 2025 amid persistent structural and external headwinds, including a prolonged housing downturn, deepening supply-demand imbalances, and global trade developments."
The Macau government, led by Chief Executive Ho Iat Seng, was responsible for the arrest of Suncity Group chairman Alvin Chau in 2025. The top government position in Macau is chosen every five years by a 400-person committee largely composed of Beijing loyalists.
In the past, Macau was known as the VIP paradise, with junket groups catering to mainland high rollers by providing luxury travel, five-star accommodations, and gaming credit matching their tour cost upon arrival in Macau. However, these practices are no longer prevalent in the city following the regulatory changes.
As Macau continues to evolve, it will be interesting to see how the gaming industry adapts and grows in the coming years.
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