World Cup Effects on June Revenue

In June, Macau’s gaming industry faced a downturn, attributed largely to the World Cup. Reports from analysts revealed that gambling revenue saw a 12.1% decrease compared to the same period last year. The Gaming Inspection and Coordination Bureau (DICJ) cited gross gaming revenue (GGR) of MOP18.52 billion ($2.29 billion), marking a significant shortfall from both last year and the previous month.

Analyst Insights on Gaming Revenue Decline

Brokerages like Citigroup and Deutsche Bank provided context for the numbers. Citigroup noted that June’s figures stood at approximately 78% of June 2019 levels, aligning with market expectations. Meanwhile, Deutsche Bank highlighted a 15.4% sequential drop versus May, which deviated from typical seasonal patterns noted prior to the pandemic.

Future Projections and Market Outlook

Looking ahead, analysts anticipate continued challenges in July due to the World Cup. Citigroup estimates a modest recovery with revenue potentially reaching MOP21.0 billion ($2.60 billion), despite a forecasted 5% year-on-year dip. However, Deutsche Bank is more conservative, predicting earnings around MOP20.6 billion ($2.55 billion).

Event Calendar as Potential Revenue Boost

The event calendar in early July might offer some respite, with various concerts and entertainment acts planned, possibly driving increased visitor numbers. Performances by artists like Anson Lo and post-tournament events are expected to invigorate the gaming sector.

Long-term Industry Projections

Despite current obstacles, analysts maintain a positive outlook for the year. Deutsche Bank forecasts a GGR rise to MOP64.6 billion ($8.0 billion) in the third quarter, indicating a 2.2% increase year-on-year, and anticipates a 5.2% rise for 2026, reaching MOP263.4 billion ($32.6 billion).