Experts predict that by 2026, Macau's gambling sector will have recovered to its pre-Covid levels. The mass market gaming industry is anticipating a boost this year from improved traffic and a stronger economy.
Those who are keeping tabs on Macau's post-Covid recovery say the city will have a good new year and an even better 2026.
The gross gaming revenue (GGR) of the world's leading gaming hub's casinos fell 2% to MOP18.2 billion (£1.813 billion/€2.184 billion/$2.27 billion) last month. Nevertheless, this was the sole monthly drop since the city's reopening in January 2023.
The three-day visit of Chinese president Xi Jinping was widely believed to be the cause of the decline. To commemorate the 25th anniversary of the former Portuguese colony's return to Chinese authority, Xi was in town from 18-20 December.
Along with Ho Iat-Seng, he oversaw the installation of Sam Hou Fai as chief executive of Macau. December 20 was the date of the inauguration. Sam continues an effort to wean the SAR's economy off of its reliance on gaming as head of the sixth government.
Macau's recent success is anticipated to persist
Despite an announced goal of MOP216 billion, GGR in Macau increased by 23.9% to MOP226.78 billion last year. It's close to 78% of the MOP292.5 billion that was accomplished this year. David Katz, an analyst at Jeffries, predicts that the industry may achieve similar heights next year.
According to Seeking Alpha, a financial website, Katz said that "monetary policy initiatives focused on improving the health of the overall consumer" in Macau will help the SAR.
A rise in the mass gaming market and an uptick in tourism are two more encouraging signs.
In 2025, Macau anticipates 35 million tourists, a rise of over 25% from the previous year. As is typical, with the help of more lenient visa policies that permit longer stays, over 70% will be from mainland China. But there has been a rise in tourists from other countries as well. Overseas visitors to Macau increased by 66% year-on-year, reaching over 2.4 million last year. The city is making an effort to entice them by showcasing more non-gaming activities, such as cultural and athletic events, during conferences like ITB Berlin, the biggest tourism trade expo in the world, which is taking place from March 4th to the 6th.
Macau Business stated last year that Fitch Ratings expected Macau's GGR to rise by 8% in 2025. "This will be supported by the ongoing revival in the gaming tourism sector, expanded handling capacity and favourable policy initiatives," stated analysts George Xu and Jeremy Zook.
Is Macau on track to surpass GGR target?
According to the Macau Gaming Inspection and Coordination Bureau (DICJ), this year's official GGR objective is MOP240 billion. However, analysts from Citigroup noted in a study from 2024 that the DICJ has a tendency to understate the totals.
George Choi and Timothy Chau of Citi predicted a 7% year-over-year gain in GGR, adding up to MOP244 billion, as reported by the Macau Daily Times. For 2025, they project a 13% increase in EBITDA, or earnings before interest, taxes, depreciation, and amortisation.
In its analysis, the team concluded that Citi's GGR estimate might see significant upside potential if previous patterns persist. "As a result of collecting more precise data on players' gaming behaviours, more smart tables will also let casinos know how valuable their players really are."