Key Moments:
- The industry realized a 24.7 percent rise in gross surplus before taxes, reaching MOP 143.12 billion in 2024
- Total receipts increased 23.1 percent to MOP 231.45 billion, with nearly 99 percent sourced from gaming and related services
- Operating expenses rose sharply by 28 percent, totaling MOP 40.58 billion and making up approximately 43 percent of total expenses
Industry Revenue Growth and Expense Trends
Macau’s gaming sector posted a remarkable 24.7 percent increase in gross surplus before taxes for 2024, totaling MOP 143.12 billion (about US$17.87 billion), according to the latest annual data from the Statistics and Census Service. Despite persistent challenges in the market, these figures underscore the continued rebound of Macau’s leading economic driver.
The industry reported a 23.1 percent annual growth in total receipts, reaching MOP 231.45 billion. Notably, MOP 228.36 billion, or almost 99 percent of the total, came directly from gaming and related services, up 23.7 percent from the prior year.
Pre-tax expenditures also grew, increasing by 18 percent to MOP 94.37 billion. The sector’s ongoing struggle to maintain profitability is underscored by these higher operating costs, which come as operators strive to provide quality services in an increasingly competitive environment.
Breakdown of Cost Increases and Staffing
Operating expenses, including complimentary offerings like hotel stays, food, and drinks to casino guests, represented roughly 43 percent of total expenses. These costs surged by 28 percent to MOP 40.58 billion in 2024.
Other key expense categories, such as purchases, commissions, and rebates to patrons, also saw a 28 percent increase, accumulating to nearly MOP 23.2 billion.
Employee compensation rose by 7 percent, reaching MOP 21.49 billion. Reflecting this trend, the workforce expanded by 3.1 percent, resulting in 52,426 full-time gaming business employees in 2024.
Efficiency Metrics and Economic Influence
The gross surplus percentage ratio – a measure of how effectively receipts translate to surplus – slightly improved to 62.7 percent, marking a 0.5 percentage point gain from the previous year. Meanwhile, the industry’s gross value added, gauging its overall economic contribution, jumped 22.1 percent year over year to nearly MOP 164.61 billion.
Profitability Pressures While Navigating Growth
Although the positive movement in gross surplus provides optimism, the rapid escalation in operational costs highlights a pressing challenge: maintaining profitability in the face of rising consumer expectations and intense market competition. Effective expense management appears critical to sustaining healthy margins as the sector evolves.
Central Role in Macau’s Economic Recovery
The performance in 2024 reinforces the gaming industry’s integral status in Macau’s economic revival. Its substantial contributions to employment and government revenue have underpinned the city’s economic stability and continued its reputation as a premier tourism destination.
Ensuring Long-Term Success
Looking ahead, Macau’s casino operators are confronted with the important task of marrying innovation with disciplined cost controls. The ongoing recovery demonstrates the sector’s resilience, but its future sustainability will depend on strategic adjustments in response to changing market conditions and prudent management of operating expenses.
| Indicator | 2024 Value | Annual Change |
|---|---|---|
| Gross Surplus (pre-tax) | MOP 143.12 billion | +24.7% |
| Total Receipts | MOP 231.45 billion | +23.1% |
| Gaming & Related Receipts | MOP 228.36 billion | +23.7% |
| Total Expenditure (pre-tax) | MOP 94.37 billion | +18% |
| Operating Expenses | MOP 40.58 billion | +28% |
| Purchases, Commissions, and Rebates | ~MOP 23.2 billion | +28% |
| Employee Compensation | MOP 21.49 billion | +7% |
| Full-time Employees | 52,426 | +3.1% |
| Gross Surplus Ratio | 62.7% | +0.5 pp |
| Gross Value Added | MOP 164.61 billion | +22.1% |
- Author
Daniel Williams
