Macau’s gaming industry has kicked off the second half of the year with robust growth, as July’s gross gaming revenue (GGR) surged by 11.6% year-on-year to MOP18.6 billion ($2.31 billion). This strong performance brings the year-to-date total to MOP132.35 billion, marking a significant 36.7% improvement compared to the previous year and exceeding 61% of the government’s revised annual forecast.
Macau’s Gaming Revenue Soars in July
Macau’s gaming sector has demonstrated a strong start to the second half of 2025, with July’s GGR reaching MOP18.6 billion. This figure represents an 11.6% increase from July 2024. The cumulative GGR for the year now stands at MOP132.35 billion, a substantial 36.7% rise compared to the same period last year. This performance already accounts for over 61% of the government’s updated annual GGR projection of MOP228 billion.
Revised Forecasts and Analyst Outlook
Despite the strong July figures, authorities recently adjusted their annual GGR forecast downwards by 5%, from MOP240 billion to MOP228 billion, citing economic uncertainties and evolving consumer trends. Tax revenue expectations were also trimmed from MOP84 billion to MOP79.8 billion.
Analysts have also recalibrated their projections:
- Jefferies Analysts (Anne Ling and Jingjue Pei): Slightly lowered 2025/26/27 GGR assumptions. They anticipate GGR growth of 3.5% in 2026 and 3.4% in 2027, reaching MOP254 billion. Their 2025 estimate of MOP237 billion is in line with market consensus but higher than government projections. They foresee a 5.7% GGR growth for Q3, acknowledging it’s typically a low season.
Driving Factors: New Properties and the ‘Concert Economy’
The recent surge in GGR is attributed to several key factors:
- New Inventory and Upgrades: The introduction of high-end accommodations designed to attract premium mass and VIP patrons has played a significant role. Notable developments include:
- Sands China’s billion-dollar upgrade of rooms and suites at Londoner Macao (April).
- Soft opening of Capella at Galaxy Macau, featuring 36 "sky villas" and 57 suites (May).
- MGM China’s expansion of premium gaming areas, renovation of villas at MGM Macau, and addition of 60 new suites at MGM Cotai.
- The ‘Concert Economy’: Live entertainment events have proven to be a powerful draw. A concert series by crooner Jacky Cheung was credited by JP Morgan analysts for an "unexpected seasonal surge" that boosted June GGR to MOP21.06 billion, a 19% year-on-year increase. Citi analysts believe a continued lineup of glamorous events and concerts could sustain GGR growth into the second half of the year.
Sources
- Macau enters second half ahead of GGR estimates, iGaming Business.
