But consider that the three months ending June 30 featured the start of the 2014 FIFA World Cup tournament, the theft of over $1b in junket investor funds, uncertainty over the use of UnionPay debit cards, new limits on transit visas and the usual rumblings from the mainland about cracking down on high-rollers and junket operators. All that, and the market still grew by over $600m year-on-year. Make no mistake, this market is one resilient mofo.
According to Macau’s Gaming Inspection and Coordination Bureau (DICJ), baccarat accounted for 91% of Macau’s total Q2 gaming revenue. The VIP share of this bounty fell to 60.1% from 67.3% in Q2 2013 and the 5.8% revenue decline marks the first year-on-year quarterly VIP baccarat drop since Q3 2012. Meanwhile, mass market baccarat grew 35.3% year-on-year to MOP 28b ($3.5b). On a sequential basis, mass market tables experienced a modest 1.5% dip in revenue, while VIP baccarat fell a hefty 16% from Q1. Slots revenue rose 3.8% year-on-year but fell 8% sequentially to MOP 3.6b ($488.5m).
Seems not everyone in Macau found the World Cup a drag. Macau Slot, the special administrative region’s only official licensed sports betting provider, reported quarterly football revenue of MOP 203m ($25.4m) in Q2, a 67% gain over Q1’s figure as football handle rose 50% to MOP 1.8b ($229m). This gain was blunted by a drop in basketball betting revenue, which fell 37% to MOP 23m. For 2013 as a whole, Macau Slot reported a 27.2% gain in profit to MOP 102.9m ($12.9m). But the company’s current three-year monopoly extension expires in June 2015 and rivals like CG Technology (formerly Cantor Gaming) haven’t been shy about seeking to provide a little healthy competition.