Macau authorities estimate gross gaming revenue (GGR) for the region will reach MOP130bn ($16.2bn) in 2021, despite lacklustre figures for the first half of the year.
Macau’s Secretary for Economy and Finance, Lei Wai Nong, has admitted casino GGR was 25% less than predicted in H1, reaching close to MOP49m.
The figure, however, was based on eased travel between Macau and Hong Kong, a plan which continues to face hurdles.
The Government hopes the upcoming Golden Week, starting 1 October, will provide a much-needed boost. “We have summer holidays, the National Day Golden Week, the Grand Prix in November, plus December – traditionally a time when people vacation,” said the Secretary.
Angus Chan Chi-lap, head of Hong Kong strategy, has stated that mass-market customers would likely impact casino profits the most, as even at pre-pandemic times they contributed more than 80% to EBITDA.
The expert also believes Macau would extend the current concession for at least two years, even if the Government recently stated it has no plans for extensions.
At the same time, Macau is looking to amend its gaming industry laws. The review should include a closer look at sub-concessions, registration issues for some of the properties, and even the “astronomical value of outstanding chips”, as quoted by Asia Gaming Brief.
The public consultation would likely be launched at the end of the year. Back in spring, legislators asked for the consultation to take place mid-August at the latest, to give them more time to consider possible legislative changes.
Both the public consultation and the reviewed gaming law will likely impact current and future gaming licences in Macau.