In July 2024, the Macau Special Administrative Region (SAR) government recorded a decrease in gaming tax revenue to MOP$6.83 billion (US$851 million). This marks a 12.2% decline compared to June’s revenue of MOP$7.78 billion (US$967 million). However, July’s figure reflects a substantial 16.2% increase from the same month last year.
Monthly Performance and Yearly Trends
The July revenue figure is indicative of Macau’s gross gaming revenue (GGR) from June. According to the Gaming Inspection and Coordination Bureau, June’s GGR was MOP$17.7 billion (US$2.20 billion). This indicates a slowdown in the gaming sector’s revenue generation compared to the previous month.
Despite this monthly decline, the year-on-year performance remains robust. For the first seven months of 2024, the total gaming tax revenue has reached MOP$51.6 billion (US$6.43 billion). This represents an impressive 58.0% increase compared to the same period in 2023. The strong growth in revenue underscores a positive trend for Macau’s gaming industry on an annual basis.
Government Revenue and Budget Execution
The Macau SAR government has projected that the gaming tax revenue for the entire fiscal year 2024 will be approximately MOP$83.6 billion (US$10.4 billion). As of July, the budget execution rate stands at 61.7%, reflecting a solid pace towards meeting the annual revenue target.
Overall, the government’s total revenue for the first seven months of 2024 has amounted to MOP$61.2 billion (US$7.62 billion). This figure represents a significant 49.7% increase year-on-year. Notably, special gaming taxes from concessionaires have contributed 84.4% of the total government revenue, highlighting the crucial role of the gaming sector in Macau’s fiscal health.
Implications and Future Outlook
The decrease in gaming tax revenue from June to July might raise concerns about short-term fluctuations in revenue, but the overall year-on-year growth suggests a strong and recovering market. The substantial increase in gaming tax revenue over the past seven months reflects continued resilience and growth in Macau’s gaming sector.
Moving forward, it will be essential to monitor monthly revenue trends to gauge the sustainability of this growth. Additionally, the government’s ability to maintain or exceed the projected revenue target will be crucial for balancing the fiscal budget and supporting overall economic stability.
While July’s revenue dip signals a temporary setback, the overall trajectory of Macau’s gaming tax revenue remains positive. The impressive year-to-date growth underscores the sector’s ongoing recovery and its vital role in the region’s economy.