Macau’s gaming industry experienced a slight contraction in profit margins during the final quarter of 2024, with industry-wide margins declining to 27.2 percent from 27.9 percent in the previous quarter and 29.8 percent in the fourth quarter of 2019.

This decline led to a 2 percent year-on-year drop in property EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), totalling $1.90 billion (€1.75 billion). The decrease was exacerbated by an 8 percent rise in non-gaming tax-related operating expenses, which outpaced a modest 4 percent increase in bet revenue during the same period.

According to analysis by Deutsche Bank, total industry gross gaming revenue (GGR) in the fourth quarter of 2024 rose by 6 percent year-on-year. This growth encompassed an 11 percent increase in VIP GGR and a 6 percent rise in mass market GGR.

Operators SJM, Galaxy gain market share 

In the mass market segment, operators such as SJM, Galaxy, and Melco gained market share compared to the fourth quarter of 2023, while Sands, Wynn, and MGM experienced declines. In the VIP segment, only SJM and Galaxy reported gains in market share.

Aggregate rolling chip volume saw a modest 1 percent year-on-year increase; however, VIP revenue experienced an 11 percent uptick, attributed to a higher hold rate of 3.00 percent, up 27 basis points from the previous year. 

The Gaming Inspection and Coordination Bureau (DICJ) reported industry-wide GGR of MOP$57.6 billion (€6.6 billion) in the fourth quarter of 2024, up from MOP$54.3 billion (€6.2 billion) in the same period of 2023.

For the entire year of 2024, Macau’s casino GGR reached MOP$226.78 billion (€26.1 billion), marking a 23.9 percent increase compared to 2023. Despite this growth, revenues remained below pre-pandemic levels, with 2019 figures reaching MOP$292.5 billion (€33.6 billion). 

Decline in gaming contribution 

One primary reason behind this phenomena is the decline in contribution of gaming industry in Macau’s Gross Domestic Product (GDP), accounting for 36 percent in 2023, down from previous years, indicating a shift towards economic diversification.

In February 2025, Macau’s gaming industry recorded MOP$19.74 billion (€2.26 billion) in GGR, reflecting a 6.8 percent year-on-year increase.

This uptick followed a 5.6 percent decline in January 2025, where revenues fell to US$2.27 billion (€2.08 billion), influenced by seasonal factors. Despite these fluctuations, Macau authorities forecast a full-year GGR of MOP$240 billion (€27.5 billion) for 2025, representing a 5.8 percent increase over 2024. 

However, analysts remain divided on the attainability of this target, considering the decline in high-roller play and the broader economic environment in China. 

The decline in Macau’s Q4 profit aligns with efforts to diversify the economy beyond its heavy reliance on the gaming sector. Chinese President Xi Jinping has also urged Macau to pursue sustainable development and economic diversification, a sentiment echoed by the newly elected Chief Executive, Sam Hou Fai, who has pledged to reduce the city’s dependency on casinos.

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