• About Us
  • The Team
  • Advertise with Us

The latest news on the gaming industry in Asia

() () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () ()
  • Home
  • Macau
  • Philippines
  • Singapore
  • Japan
  • Rest of Asia
  • World
  • Industry Talk
  • Trends & Tech
  • iGaming
  • follow
    • Facebook
    • Twitter
    • RSS Feed
    • LinkedIn

Macau GGR back to pre-crisis levels only in 2022: JP Morgan

Oct 09, 2020 Newsdesk Latest News, Macau, Top of the deck  


Macau GGR back to pre-crisis levels only in 2022: JP Morgan

“Mounting uncertainty” in Macau’s VIP gaming sector and “nuisances” related to visa arrangements for mainland tourists could see Macau’s casino gross gaming revenue (GGR) return to “normal” levels – i.e., pre-Covid-19 crisis – only in 2022, says JP Morgan Securities (Asia Pacific) Ltd.

Casino GGR might reach MOP292.1 billion (US$36.6 billion) in full-year 2022, compared to MOP291.2 billion achieved in full-year 2019, before the health crisis took hold, said the institution in a Wednesday note.

Starting from August 26 as part of travel-easing measures following the initial impact of Covid-19, eligible residents from the neighbouring mainland province of Guangdong have been allowed to apply for an exit visa for tourist trips to Macau, either as part of a tour group or under China’s Individual Visit Scheme (IVS) programme. The measure was extended to residents from other mainland regions from September 23.

JP Morgan said however that these measures had failed to “unlock pent-up demand” for travelling outside of mainland China. Demand was “surprisingly weak” in September with an 85 percent fall in visitor arrivals and GGR also declining by 90 percent year-on-year, said JP Morgan analysts DS Kim, Derek Choi and Jeremy An.

Visitor arrivals to Macau during the first seven days of the autumn Golden Week holiday period were also down by 85.7 percent from the same period in 2019, according to official data.

JP Morgan acknowledged that a “stigma” remains among mainland Chinese travelling outside that prevents them from feeling safe about traveling and gambling in Macau.

The institution added that obtaining a visa to Macau has become “much more inconvenient,” requiring up to 10 working days, multiple visits and a Covid-19 test only valid for seven days – versus the issuance of visas via self-service kiosks that were previously available.

“We were overly hopeful on the prospect of pent-up demand, which we thought would outweigh the nuisances related to travel arrangement to Macau and stricter capital control,” stated the JP Morgan team.

VIP jitters

The analysts added: “A broadening clampdown on illegal/overseas gambling in China is creating jitters among agents/players at unprecedented levels, in turn throttling any VIP/high-end demand recovery (which, by the way, was touted and supposed to lead the initial rebound).”

In the VIP sector a “broadening clampdown” on illegal and overseas gambling has seen junkets “and even some big players” questioned and investigated in the mainland, and their accounts frozen, wrote the JP Morgan team.

The brokerage also said that Macau’s VIP segment “remains very weak,” with business volumes in the past two months “showing little if any improvements” from the second quarter.

JP Morgan attributed the lacklustre performance in the sector to a number of factors, including: a large-scale clampdown on overseas/illegal gambling in mainland China; a “higher than usual” scrutiny on capital outflow; junkets tightening the grip on capital; and the travel restrictions between Hong Kong and Macau.

The Macau gaming market could see further improvements if travel restrictions between Hong Kong and Macau were eased or if the IVS processing kiosks in mainland China were back online, suggested JP Morgan.

“We think Hong Kong’s importance lies in its position as an avenue for capital flow, where a sizable portion of liquidity goes through Hong Kong into Macau,” said the analysts.

There is however limited prospect of Hong Kong visitors flocking to Macau in the short run, as a 14-day quarantine is still required for anyone arriving via the neighbouring city. People going from Macau to Hong Kong are also required to undergo a 14-day quarantine, a requirement that was extended last week by the Hong Kong government to December 31.


  • tweet
Related articles
  • Macau ops sign contract extension, eye fresh public tender
    Macau ops sign contract extension, eye...

    Jun 23, 2022  

  • Macau gaming ops contract rollover signed today: CE
    Macau gaming ops contract rollover...

    Jun 23, 2022  

More news
  • Maybe new Macau mass Covid test, community spread still
    Maybe new Macau mass Covid test,...

    Jun 24, 2022  

  • Blackstone clinches US$6.15bln takeover of Crown Resorts
    Blackstone clinches US$6.15bln takeover...

    Jun 24, 2022  


Latest News

Maybe new Macau mass Covid test, community spread still

Maybe new Macau mass Covid test, community spread still

Jun 24, 2022  

It is likely that Macau will shortly have a third round of citywide centre-based Covid-19 testing in little more than a week, after the results so far of a second mass test – that was due to finish...
Read More
Blackstone clinches US$6.15bln takeover of Crown Resorts

Blackstone clinches US$6.15bln takeover of Crown Resorts

Jun 24, 2022  

Jeju still studying online gaming for its casinos: govt

Jeju still studying online gaming for its casinos: govt

Jun 24, 2022  

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Pick of the Day


US$5.8 million

Amount that each Macau casino operator paid for the circa six-month extension of their respective contract



Most Popular

  • Maybe new Macau mass Covid test, community spread stillMaybe new Macau mass Covid test, community spread still June 24, 2022
  • Blackstone clinches US$6.15bln takeover of Crown ResortsBlackstone clinches US$6.15bln takeover of Crown Resorts June 24, 2022
  • Alvin Chau, Suncity trial set for September 2: courtAlvin Chau, Suncity trial set for September 2: court June 20, 2022
  • Macau ops sign contract extension, eye fresh public tenderMacau ops sign contract extension, eye fresh public tender June 23, 2022
  • Jeju still studying online gaming for its casinos: govtJeju still studying online gaming for its casinos: govt June 24, 2022
Copyright 2014-2022 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us