Macau casinos had a slow start tо 2025, with January gaming revenue coming іn below expectations.
January Gaming Revenue Performance
Macau’s Gaming Inspection and Coordination Bureau reported that gross gaming revenue (GGR) for January totaled MOP18.25 billion (US$2.27 billion), marking a year-over-year decline оf nearly 6%. However, January’s GGR showed a slight 0.3% increase from December.
Factors Behind Soft Start
The dip іn January was expected, though the actual decline surpassed analyst predictions. JP Morgan had forecasted a 4% drop, while the actual loss was 5.6%. Analysts pointed out that January 2024’s strong performance, due tо high VIP baccarat volumes, made for a tough comparison this year.
Chinese New Year Boost
Despite a slow January, analysts are optimistic about a stronger February due to the Chinese New Year celebrations, which began on January 29, 2025. The Spring Festival provides a week off for most workers and brings increased visitors to Macau.
Recovery Outlook for Macau Casinos
In 2024, Macau’s six casino operators won about $28.3 billion, marking the second year of recovery post-COVID. JP Morgan expects a 3% to 5% growth in February GGR, helping Macau casinos to reach “flattish” levels compared to 2024. For 2025, they project a 5% overall GGR growth.
Challenges Ahead
To fully recover, Macau’s casinos will need to focus on increasing mass market visitation after the decline of VIP junket groups. January’s GGR indicated a strong recovery in mass play, but VIP play remained significantly below pre-COVID levels.
