China's Macau casinos reported gross gaming revenue (GGR) of 19.33 billion patacas ($2.4 billion) in January 2024, up 67% year-on-year and 4.1% higher than December.

Macau, China casino revenue

The Galaxy Macau Casino Resort is located on the Cotai Strip. Macau casinos started 2024 strong with $2.4 billion in wins. Sales surged 67% in January compared to January 2023. 
Macau's strong start to the new year marks the Chinese casino enclave's second-best month since the COVID-19 pandemic. Only one month last year (October) brought in more gaming revenue for six casino operators than January.

In January, before the coronavirus outbreak, the world's richest gaming industry continued its positive pandemic recovery. Macau casino revenue recovered to about 63% of 2019 market levels in the first year of recovery. At the end of 2022, Chinese President Xi Jinping scrapped the controversial “Zero Covid” policy.

Analysts predict the recovery will continue into 2024. Researchers at Morgan Stanley believe Macau casino revenue will return to about 80% of pre-COVID levels this year.

Today, the operating environment for casinos in Macau is completely different. Gone are the days when junkets regularly brought in VIP gamblers from the mainland. Previously, the Chinese government instructed Macau to step up scrutiny of tourism organizers.

Former Suncity Group boss Chow Cheuk Wah was sentenced to 18 years in prison after being prosecuted for gambling, fraud and money laundering offences. Most intermediary groups went out of business as a result.

Serious crime reduced

The Macau Judicial Police released its 2023 enclave crime report this week.

The total number of gaming-related crimes rose 182% last year to 2,717, documents show. With zero Covid cases, normal life in Macau and China remains at a standstill in 2022, so a spike is to be expected.

2023 is the year when China and its two special administrative regions reopen and Chinese people can move freely throughout the country, so crime will naturally make a comeback. However, Macau law enforcement said the number of violations was significantly lower compared to 2019.

Macau's gaming industry is developing healthily in the right direction, and serious crimes such as illegal gambling and money laundering through gaming operations have basically disappeared. "

Xue explained that the number of gambling crimes dropped by 50% compared to 2019. Police also intercepted approximately 11,000 monetary transactions between criminal associates. Law enforcement successfully prosecuted more than 2,000 gang members, who are no longer allowed into the enclave's casinos.

Stock returns

A fruitful January gaming revenue report delivered gains for shareholders. Shares of Las Vegas Sands, MGM Resorts, Wynn Resorts, Melco Crown Resorts, Galaxy Entertainment and SJM Resorts all rose on Thursday.

Analysts are optimistic about February GGR. The 2024 Chinese New Year arrives in February, giving most workers across China eight days of paid leave from February 10 (the actual New Year's date) to February 17.

The 2024 New Year holiday, the “Year of the Dragon,” has brought strong bookings to Macau casinos. Most of the luxury casino resorts on the Cotai Strip are fully booked or have only a few vacancies during the holiday season. The average nightly cost of a five-star casino hotel room is nearly $400.