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Macau’s gaming industry achieved a 24.7 percent growth in gross surplus prior to taxes in 2024, a total of MOP 143.12 billion (around US$17.87 billion). This increase, released by the latest annual Gaming Sector Survey released by the Statistics and Census Service, shows a continued recovery in the city’s prime industry amid recent market problems.
Gross surplus in this case quantifies the industry’s total receipts and inventory changes minus employee compensation, operating expenses, cost of goods purchased, commissions, and customer rebates before deducting taxes.
Revenue Growth Offset by Increased Expenses
The industry’s total receipts increased by 23.1 percent annually to MOP 231.45 billion. Nearly 99 percent of such income, at MOP 228.36 billion, came from gaming and related services alone, representing a 23.7 percent growth from 2023.
Even with this revenue recovery, combined expenditure before taxes also climbed substantially, 18 percent to MOP 94.37 billion. Increasing costs continue to challenge operators in meeting profitability, along with good quality service.
Operating Expenses and Staffing Increase
Operating costs, mainly for free goods and services like accommodation in hotels, food, and drinks provided to casino visitors, made up around 43 percent of the total expenses. These costs increased by 28 percent, totaling MOP 40.58 billion in 2024.
Some other significant cost increases were seen in purchases, commissions, and rebates given to customers, which also increased by 28 percent, totaling almost MOP 23.2 billion.
Compensation for employees increased 7 percent to MOP 21.49 billion, reflecting an increase in the number of full-time employees engaged in the gaming business. The number of employees increased by 3.1 percent to 52,426 employees in 2024.
Efficiency and Economic Impact
The gross surplus percentage ratio, an indication of the efficiency with which the sector takes receipts to surplus, marginally increased to 62.7 percent, an increase of 0.5 percentage points over last year.
Currently, the industry’s gross value added, a broader measure of its contribution to Macau’s economy, rose 22.1 percent year on year to almost MOP 164.61 billion.
Conducting Growth with Cost Pressures
While growth in gross surplus is encouraging, however, the simultaneous growth in operational expenses indicates the balancing act that the industry faces. Sustaining margins and profitability would then necessitate watchful expense management in the face of rising customer expectations and competitive market dynamics.
Macau Gaming Industry Role in Recovery
The 2024 figures place Macau’s gaming business as one of the city’s pillars of economic revival. The business’s contribution to jobs and state revenue continues to be substantial, promoting economic stability and continued tourism appeal overall.
Driving Towards Sustainable Momentum
As Macau’s casino sector continues to look ahead, operators will have to integrate innovation and cost management in order to sustain the momentum. The sustained recovery is evidence of improved resilience, but continued success will depend on refined strategies according to market sentiment and managing business expenses appropriately.
Source: GGR Asia
