Macau’s gambling revenues are expected to reach $16 billion in 2021

The Macau government estimates that the region’s gross gambling revenue (GGR) will reach 130 billion patacas (US$16.2 billion) in 2021. Authorities are confident that the growth will not be hindered even by the “dim” figures for the first half of the year. Regional Minister of Economy and Finance Lei Wai Nong acknowledged that the earnings of local casinos in the first six months of this year were 25% lower than previously predicted.

The preliminary figures were calculated on the assumption that the government will lift a number of severe restrictions on tourism ties between Macau and Hong Kong. But so far the loosening has only received partial approval from the government. This has hindered the growth of Macau’s gambling establishments.

Authorities in the region hope that the upcoming Chinese national holiday, Golden Week, beginning Oct. 1, can provide a much-needed boost to the gambling entertainment segment.

“We have a summer vacation, Golden Week plus December is a traditional time for people to relax,” said Macau’s government secretary.

Angus Chan Chilap, head of Hong Kong’s strategic development department, said that mass customers are likely to have more impact on casino profits than VIP visitors. Even in the days before the global pandemic, he said, they provided more than 80 percent of the local gambling sector’s total profits.

At the same time Macau plans to amend its laws governing the gambling industry. The innovations should affect the issuance of licenses, issues of registration of certain properties and even the revision of the value of chips.

Spring lawmakers asked for a consultation no later than mid-August to give them more time to consider possible changes. Experts are confident that the gambling law update will have a positive impact on Macau’s future.

Recall, Las Vegas Sands remains confident of a post-pandemic gambling recovery.