Nearly full gaming recovery rides on mass market demand to come in 2024 – JP Morgan
Monday 05 de December 2022 / 13:19
2 minutos de lectura
Investment bank JP Morgan expects Macau’s gaming industry to return to 95 per cent of pre-pandemic levels in two years’ time, thanks to “pend-up demand” from an expanding mass market expected to benefit from the ceiling on gaming tables unveiled in August.
DS Kim, an analyst with JP Morgan, wrote in a recent note that investors should remain confident about the short-term future of the city’s gaming sector, which he said could usher in a market recovery as early as the first few months of next year.
He pointed to two reasons behind his positive outlook: a policy under which the government has the power to lower the tax rate by up to 5 per cent points for gaming concessionaries which manage to lure more foreign tourists, as well as a gaming table cap market-wide slated to take effect next January.
Starting from next month, the number of gaming tables will be capped at 6,000, with each of them subjected to a minimum of MOP7 million (US$880,000) in gross revenue each year.
However, Kim believes that there is still room for growth as there is “more than enough excess capacity in the market”.
“We estimate there were only about 4,000 mass tables directly operated by casinos (excluding junkets and satellites) in 2019 (peak for mass GGR), so the table cap of 6,000 presents significant headroom … theoretically, up to 50% additional capacity for mass,” he said in the note.
According to the investment bank, the first quarter of 2023 would see a gradual return to EBITDA profitability in the gaming sector as mass market demand will have rebounded to about 35 per cent of pre-Covid levels, before reaching a 50-per cent mark in the ensuing two quarters.
However, a full return to normal mass demand will not come until 2024, the analyst pointed out.
By Aries Un
Categoría:Gaming
Tags: Sin tags
País: Macao
Event
iGaming Club Conference Cancun
24 de November 2025
Levon Nikoghosyan Confirms iGaming Cancun’s Success and Future LATAM Expansion
(Cancun, SoloAzar Exclusive).- The vibrant energy of iGaming Cancun has set the tone for a new chapter in the Latin American iGaming industry. Levon Nikoghosyan, CEO and Co-Founder of AffPapa and iGaming Club, shared his enthusiasm for the event’s debut in Mexico, highlighting its impact on the regional market and the company’s ambitious plans for the future.
Thursday 04 Dec 2025 / 12:00
iGaming Club Cancún 2025 Concludes Successfully with Strong Connections in Its First LatAm Edition
(Cancun, SoloAzar Exclusive).- iGaming Club Cancún 2025 came to a close last night with a comprehensive experience of conferences, networking, and the AffPapa iGaming Awards LATAM gala, consolidating itself as a unique space for operators, affiliates, and providers in the region.
Thursday 27 Nov 2025 / 12:00
iGaming Club Cancún 2025: Affiliates, Operators, and Innovation Take Center Stage on Final Day
(Cancun, SoloAzar Exclusive).- The second and final day of iGaming Club Cancún 2025 unfolds today, bringing together operators, affiliates, and select B2B providers in a unique networking and conference environment that highlights the evolving dynamics of the Latin American iGaming market.
Wednesday 26 Nov 2025 / 12:00
SUSCRIBIRSE
Para suscribirse a nuestro newsletter, complete sus datos
Reciba todo el contenido más reciente en su correo electrónico varias veces al mes.