Macau’s gross gaming revenue rose 24% year-on-year in January to MOP 22.6bn ($2.8bn), according to data published by the Gaming Inspection and Coordination Bureau.
The result exceeded analyst forecasts and marked the strongest monthly performance since October, extending a recovery trend that saw industry revenue grow 9.1% in 2025.
January represented the eighth time in the past nine months that Macau’s monthly gaming revenue surpassed MOP 20bn, reinforcing expectations of continued normalization in visitation and spending.
Market observers attributed the stronger outcome to favorable currency dynamics, improved VIP play, and sustained mass-market demand from mainland China visitors.
The better-than-expected start to the year came as operators prepare to release quarterly results. Sands China, controlled by Las Vegas Sands, provided an early read on market conditions after its parent company reported Asian results late last week.
Revenue at Sands’ Macau properties rose 16% in the final quarter of 2025 to $2.1bn, broadly in line with industry GGR growth of around 15%. However, EBITDA increased by a more modest 6% to $608m, reflecting higher operating and player reinvestment costs.
Following the disclosure, Sands China shares declined modestly, weighing on the broader sector.
Due to its scale, the operator is often viewed as a bellwether, prompting concerns that peers could also report margin pressure.
Analysts expect Galaxy Entertainment and MGM China to show improved market share on a year-on-year basis, partly supported by the closure of satellite casinos and increased promotional spending.
Alongside earnings, investor attention is turning to capital allocation. Analysts note that dividend policy and cash flow visibility are gaining importance amid fewer regional expansion opportunities.
Expectations of higher payout ratios have grown, particularly for operators with strong balance sheets and peaking capital expenditure cycles.
Earlier in January, Macau’s major concessionaires, including Wynn Macau, Galaxy Entertainment, and Sands China, announced salary increases and bonuses for the majority of their workforces in 2026, reflecting improving operating conditions and sustained competition for labor across the market.
Mainland Chinese visitors account for more than 70% of arrivals to Macau. Industry analysts project full-year gaming revenue to rise about 5% in 2026 to approximately MOP 260bn, following total GGR of more than MOP 247bn in 2025, the market’s strongest result since 2019