Online gambling South Korea news outlets reported a consistent increase in Macau casino stocks in the past couple of weeks. It is proof that Macau’s gaming industry is on its path to recovery.
Stocks of Galaxy Entertainment, MGM China, and Sands China have seen significant growth in recent weeks. Also, the Bloomberg Index, which monitors the six biggest casino operators in the city, saw an increase of four percent. It was the highest gain in five weeks.
In January, Macau casino gross gaming revenue increased by 82.5 percent, resulting in a surge in Macau casino stocks. According to sports betting sites, the GGR went up to $1.4 billion. Also, it was the first time Macau’s GGR reached the $1.2 billion mark since May 2021.
Macau Casino Stocks Surged
As a result of encouraging signals of visitor arrivals over the recent Lunar New Year vacation, analysts are hopeful about the future of the business. However, the current GGR is just 46% of the pre-pandemic level recorded in January 2019.
The continuation of the January rebound, boosted by the holiday season, into February and March is eagerly watched by investors.
Brokerage company Jefferies forecasts that casino gross gaming revenue (GGR) might hit MOP 390 million ($48.2 million) every day this year, which is 49% more than it was before the outbreak. Next year, there is an anticipated increase to MOP 508 million ($62.7 million), or 64%.
Although operators posted losses in the fourth quarter of 2022, JPMorgan Chase said investors could disregard those numbers since they were predictable. For example, MGM stated a loss of $55 million, while Wynn Macau noted a loss of $59 million.
According to gambling industry news reports, the government of Macau has renewed the contracts of six firms for a total of ten years, all to boost the city’s lucrative casino trade. In return, they have promised to invest $13.5 billion in non-core areas of the local economy to broaden their base. It has caused experts to maintain their optimism about the industry, with JPMorgan’s DS Kim being one such analyst.