Macau's GGR is on the rise as the city prepares to change its gambling laws
If Macau's casino scene is any indication, the global gaming industry is on track to recover from the COVID-19 pandemic. 2021 started slowly, but things have continued to improve since then, with May showing higher Gross Gaming Profits (GGR) as the Asian casino hub recovers. As Macao officials and legislators stand ready to address the issue of new gambling laws next week, the continual improvement should give them more confidence in making major reforms. % in May Unfolds
April was a good month for Macau casinos as they reported $ 1 in total. 05 billion in revenues, or over 1,000% a year earlier, when COVID-19 took over the city. May continues to show a bigger rebound, backed by the Golden Week holiday that kicked off the month and the GGR for the first nine days of May was 92% higher than the last week of April. There is improvement as visitor numbers remain low due to travel restrictions and individual concerns.
The average daily rate (ADR) in the first nine days of this month was 62.45 million, almost double the 32.47 million reported in the last days of April. Golden Week, which ran from May 1 to 5, brought an ADR of $ 78.68 million, which is the GGR or 60% of what was in the same period in 2019. As expected, the ADR fell after Golden Week to $ 42 46 million, but still going higher and going in the right direction.
What amplifies the impact of these results is the fact that they appear as visits that still don't go back to pre-COVID - 19 levels. This year's Golden Week holiday season saw only 25% of traffic reported during the 2019 holiday season; however, the massive GGR was the 70% of what it was that year. With that in mind, analysts believe May's GGR could be as high as $ 1.374 billion, or the 40% of May 2019. June could bring GGR, or a whopping 50% of June 2019.
The time has come for legislative reviews
With the game enhancements to come, Macau is ready to seriously delve into the revised gaming laws. It was known that the new regulations would enter into force later this year, most likely in September; however, the COVID-19 defeat did not give city officials long to develop a plan for the attack. This is changing, however, and real progress will be made with Macau's new gaming structure.
Adriano Marques has just received a two-year extension to his contract as head of Macao's gambling regulator, Gaming Control and Coordination Office, and this will help ensure continuity with a meeting of legislators and government officials next Monday to discuss the new gaming laws. A meeting has been convened to discuss proposed changes to the Macao Rules of Games, but details of these changes have not been made public.
Time is running out for the formal introduction of new gaming laws. All six casino concessionaires in Macau have their current licenses only until next June and need to know what is waiting for them so they can start preparing for a completely different gaming experience in the city.