Macau’s casino gross gaming revenue (GGR) was estimated at about MOP9.00 billion (US$1.12 billion) in the first 14 days of June, according to investment bank Citigroup, citing industry sources.
In a Monday note, the institution said the daily run rate averaged approximately MOP586 million in the week ended June 14. That was around 20 percent below the average recorded in May, when Macau generated approximately MOP729 million per day in GGR.
It was also down 16 percent compared with the first week of June, when daily revenue averaged circa MOP700 million, per the memo.
Citi said the softer performance was “likely due” to the start of the FIFA World Cup on June 11, which was “taking away some Macau players’ betting budgets”.
This year’s World Cup runs until July 19 and features an expanded format with 48 teams and 104 matches. The investment bank said previously that this tournament’s impact on Macau’s casino GGR could be more pronounced than that of previous editions.
The institution added that VIP hold in the second week of June appeared to be “slightly lower” than in the previous week.
Despite the slower momentum, Citi maintained its June GGR forecast for Macau at MOP19.00 billion, which would represent a 10-percent year-on-year decline.
To meet that forecast, the market would need to generate an average of around MOP625 million per day for the remainder of the month, according to the institution’s calculations.
Citi suggested that a series of shows in Macau could help support the number of visitor arrivals and gaming demand in the latter part of June.
The bank noted that Galaxy Entertainment Group Ltd is hosting concerts by Hong Kong singer Keung To, while Sands China Ltd is staging performances by Taiwan singer Wakin Chau at the Londoner Arena.
“We believe these could help mitigate the potential GGR decline,” Citi stated.
