Macau’s gambling industry saw a significant boost in February 2025, with gross gaming revenue (GGR) reaching MOP19.74 billion (USD 2.46 billion), exceeding analyst expectations and setting a positive tone for the year.
Chinese New Year Drives Growth
The 6.8% year-on-year increase can largely be attributed to the Chinese New Year Golden Week holiday, which ran from January 28 to February 4. This traditional peak tourism period brought a surge of mainland Chinese visitors to Macau’s casinos.
February’s performance represents an 8.1% increase compared to January 2025, marking the highest monthly GGR since October and helping to offset January’s disappointing 5.6% year-on-year decline.
Recovery Still Below Pre-Pandemic Levels
Despite the positive growth, February’s figures reached only 77.8% of pre-COVID February 2019 levels, when GGR was MOP25.37 billion. This highlights the ongoing recovery process in Macau’s gaming sector.
Galaxy Entertainment Group chairman Francis Lui expressed confidence in meeting the government’s annual target: “Although gaming revenue for January’s Lunar New Year may have been lower than expected, the performance in the second half of February has improved and exceeded expectations.”
Analyst Forecasts Exceeded
The market significantly outperformed analyst forecasts, which had predicted only a 0.8% year-on-year increase. JP Morgan analysts had accurately forecast February GGR of about MOP19 billion.
Combined Performance for Early 2025
Looking at the first two months of 2025 combined, GGR was up marginally over 2024, at just 0.5%. This modest growth reflects the mixed performance between January’s decline and February’s stronger results.
Premium Mass Segment Contribution
According to Jefferies, operators including Galaxy and Melco indicated they experienced a “long tail effect” from the Chinese New Year holiday, primarily driven by the premium mass segment of players.
Outlook for 2025
Analysts have adjusted their forecasts for Macau’s annual GGR growth to between 4% and 9% for 2025. Jefferies Equity Research noted the industry is “making up lost ground after a weak performance” in January.
To reach the government’s MOP240 billion target for 2025, the sector would need approximately 6.9% growth each month for the rest of the year.
Cautious Industry Perspectives
Some industry analysts remain cautious. CreditSights Inc pointed out that while visits from lower-GDP provinces could rise, they may not substantially accelerate the post-pandemic recovery to pre-crisis levels.
Seaport Research Partners shared a similar view, highlighting that despite February’s overall positive performance, Golden Week GGR declined compared to previous years.
Macau’s gaming sector has unveiled its 2024 revenue figures, offering a mix of impressive annual growth and an unexpected dip in December. This marks the first decline in gross gaming revenue (GGR) in two years, setting the stage for reflection on the industry’s progress and its implications for the online gambling market.
December’s Decline: A Break in Momentum
For the first time since 2022, Macau’s GGR experienced a downturn. December 2024 revenue reached MOP 18.2 billion (approximately $2.28 billion), a 2% drop compared to the same period in 2023. Analysts have linked this dip to disruptions caused by Chinese President Xi Jinping’s visit, which affected border activities and casino operations.
Despite this decline, the annual GGR for 2024 showed a strong recovery, totaling MOP 226.8 billion ($28.4 billion), a 24% increase over 2023. The early months of the year, particularly January to March, saw significant growth driven by Chinese New Year celebrations, with monthly increases exceeding 50%. Growth slowed to an average of 16% for the remainder of the year, reflecting a gradual return to pre-pandemic activity levels.
Recovery and Adaptation: Lessons from Macau
While Macau’s GGR is steadily climbing, it remains below the pre-pandemic peak of MOP 292.4 billion recorded in 2019. The closest the region has come to this benchmark was in May 2024, with revenue of MOP 20.2 billion. The industry’s transition to a mass-market focus and reduced reliance on junkets has helped stabilize growth, offering valuable insights for the gambling industry as a whole.
For online gambling operators, Macau’s experience demonstrates the importance of aligning marketing efforts with key cultural and seasonal events. The success of the Chinese New Year period underscores the potential for targeted campaigns that resonate with players, both in physical casinos and online platforms.
The Road Ahead: Growth Opportunities
Macau’s recovery trajectory is expected to continue, with projections for 2025 suggesting GGR could reach MOP 240 billion ($30.1 billion). This optimism is fueled by increasing visitor numbers, which exceeded 35 million in 2024, surpassing earlier estimates.
Online gambling platforms can leverage this momentum by aligning their offerings with the evolving preferences of players, focusing on accessibility, innovation, and user engagement. The convergence of online and offline gambling strategies represents a significant opportunity to enhance market reach and resilience.
Macau’s story is not just one of recovery but also one of adaptation and innovation. For the online gambling sector, these lessons are invaluable in navigating a competitive and ever-changing landscape.
New York’s Milestone Achievement in Sports Betting
New York’s sports betting industry reached new heights in November 2024, setting an all-time record for gross gaming revenue (GGR). The New York State Gaming Commission reported a staggering $231.7 million in GGR, a 53.5% increase from November 2023 and a 9.5% jump from January 2024’s previous record of $211.5 million.
Despite a slight dip in the total betting handle, which came in at $2.27 billion compared to October’s $2.32 billion, the November handle still represents the second-highest in New York’s history since the launch of mobile betting in January 2022.
Unprecedented Tax Contributions
The November revenue surge significantly bolstered the state’s tax income, generating a record-breaking $118.1 million in tax revenue for the month. This brings New York’s year-to-date tax contributions from sports betting to $965 million, positioning the state to surpass $1 billion in annual tax revenue for the first time.
Performance Breakdown: Dominant Players and Emerging Contenders
FanDuel maintained its market dominance, securing 43% of the total GGR with $102.6 million in revenue from $921.2 million in bets, achieving an 11.4% hold rate. DraftKings followed with $77.1 million in revenue from $745.4 million in handle, boasting a 10.3% hold.
BetMGM jumped to third place, generating $14.4 million in revenue from $167.7 million in bets, surpassing competitors Caesars ($14.2 million) and Fanatics ($13.8 million), despite a slightly lower handle. Notably, Fanatics’ $170.2 million handle was the third-highest, yet its revenue lagged behind due to an 8.1% hold rate.
New entrants ESPN Bet and Bally Bet also made notable strides. ESPN Bet posted $3.5 million in revenue from $39 million in bets, marking its best month since launching in September. Bally Bet reported $1.2 million in revenue, achieving the highest hold rate in the state at 11.3%.
New York’s Role in the National Sports Betting Landscape
Beyond breaking records, New York’s sports betting market continues to shape the national landscape. In 2024, the state became the first to surpass $20 billion in annual sports betting handle and $5 billion in all-time operator GGR. These milestones underscore New York’s pivotal role as a hub for sports betting innovation and growth.
Fanatics Sportsbook, a rising player in the market, announced the return of its flagship Fanatics Fest event to New York in 2025. The inaugural 2024 event brought together fans, celebrities, and athletes, highlighting New York’s status as a cultural and sporting epicenter.
Conclusion
New York’s November performance solidifies its position as a trailblazer in the U.S. sports betting industry. With record-breaking revenues, robust tax contributions, and a vibrant market landscape, the Empire State continues to set the benchmark for success in the sports betting arena. As operators refine their strategies and new entrants gain traction, New York’s betting market promises further growth and excitement in the years to come.
Historic Revenue Milestones
The American Gaming Association (AGA) has unveiled that the U.S. commercial gaming sector achieved a record-setting performance with revenues soaring to $17.71 billion in the third quarter of 2024. This milestone surpasses the previous quarterly record and marks an impressive continuation of a 15-quarter streak of year-over-year growth. September 2024 notably stands out as the 43rd consecutive month showcasing a rise in commercial gaming revenues, a testament to the industry’s robustness and enduring appeal.
2024: A Year of Unprecedented Gains
In a detailed overview of the year’s performance, the first nine months of 2024 have collectively brought in an exceptional $53.24 billion in commercial gaming revenue, an 8% increase from the previous year. This consistent upward trajectory suggests that 2024 is well on its way to becoming the fourth consecutive year of record-breaking revenue figures. Notably, out of the 35 jurisdictions hosting commercial gaming operations, 29 have reported year-over-year revenue increases, underlining widespread growth across the sector.
Economic Contributions and Tax Benefits
The surge in gaming revenue has significantly benefited the local and state economies. Gaming-related taxes saw an 8.9% increase, with gaming operators contributing an impressive $3.79 billion in taxes during this quarter alone. These funds are crucial in supporting various public services and infrastructure projects, highlighting the gaming industry’s substantial contribution to economic development.
Analyzing Sector-Specific Performance
Despite a slight 0.62% decrease in land-based gaming revenue, which includes casino slots, table games, and retail sports betting, the sector generated $12.56 billion in the third quarter. Conversely, online platforms, including sports betting and iGaming, have seen a remarkable rise, collectively earning $5.14 billion and accounting for 29% of the total commercial gaming revenue.
Key Growth Drivers:
- Traditional Gaming: Brick-and-mortar casinos, despite a modest decline, still form the industry’s backbone with revenues of $12.38 billion.
- Legal Sports Betting: Experiencing a 42.4% jump from the previous year, this sector’s revenue was notably bolstered by market expansions in states like Kentucky and North Carolina.
- iGaming: Online gaming continues its rapid expansion, with revenues reaching $2.08 billion for the quarter, up by 30.3% from the previous year.
David Forman, AGA Vice President of Research, commented on the industry’s performance, stating, “The third quarter of 2024 continued to build on the strong momentum seen in the first half of the year, driven largely by online casino and sports betting. Meanwhile, new brick-and-mortar casino openings have fortified the traditional gaming sector, which remains a major contributor to overall industry revenue.”
The Pennsylvania Gaming Control Board (PGCB) recently announced that gaming revenue for September 2024 reached an impressive $505.9 million, marking a year-over-year growth of 6.17%. This increase was largely driven by significant gains in online gaming and sports betting. Let’s delve into the key details, highlighting which sectors performed the best and how brick-and-mortar casinos compared to online platforms.
Steady Growth in Online Gaming and Sports Betting
One of the biggest contributors to Pennsylvania’s gaming revenue growth came from the internet casino sector, with iGaming revenue reaching $176.7 million in September—a notable 10.79% increase compared to the same month in 2023. Despite this, there was a slight dip from the $183.7 million seen in August 2024, representing a 3.8% decrease.
Sports betting also saw significant growth, with revenue climbing by 46.13% to $53.5 million. This rise is attributed to the beginning of the football season, which always boosts betting activity. The total betting handle for sports wagering reached $811.3 million, an 11.71% increase over the previous year.
Record-Breaking Bonuses and Credits
The gaming sector also saw record-setting bonuses and credits, totaling $43 million. This contributed to adjusted gross revenue (AGR) of $53.5 million from a gross revenue of $95.8 million—a 46.1% increase year-over-year, making it the fifth-highest total on record.
The Impact of iGaming and Sportsbooks
Online casinos, led by Hollywood Casino, Valley Forge, and BetRivers, contributed significantly to the state’s revenue. Hollywood Casino, which operates DraftKings, BetMGM, and its internal app, reported $66.9 million in iGaming revenue, up 3.2% year-over-year. Meanwhile, Valley Forge Casino Resort, with its FanDuel sportsbook, saw a 33.03% year-over-year revenue increase, bringing in $47.1 million. BetRivers came in third, surpassing $30 million for the sixth time in seven months with $31.5 million in revenue.
Betting Handle and Sportsbook Performance
Valley Forge also led in sports betting revenue, generating $27.4 million from a betting handle of $320.4 million. Hollywood Casino at the Meadows followed with $13.1 million from $237.2 million in wagers. The Hollywood Casino Morgantown and Hollywood Casino at Penn National also posted solid sports betting numbers, with revenue of $2.5 million and $2.46 million, respectively.
Brick-and-Mortar Casinos: Mixed Results
While online gaming and sports betting saw impressive growth, Pennsylvania’s brick-and-mortar casinos had a more mixed performance. Parx Casino remained the top performer with $30.2 million in slot machine revenue, despite a 4.25% decrease year-over-year. Wind Creek Bethlehem, in contrast, posted a 2.1% increase, generating $24.2 million in slot revenue. Rivers Casino Pittsburgh saw a slight decline in slot revenue, down 2.36% to $20.7 million.
Table Games Dip Slightly
Table games across the state brought in $73.4 million in revenue, a 2.33% drop from the previous year. Despite this, the overall impact on the state’s total revenue was minor, thanks to the growth in iGaming and sports betting.
Pennsylvania’s Total Tax Revenue
In total, the state collected $211.2 million in taxes from its various gaming platforms in September 2024. Of this, $51.1 million came directly from internet casino gaming. Pennsylvania’s $6.21 billion wagered through iGaming casinos was the second-highest in the state’s history.
Top-Performing Casinos
- Valley Forge Casino Resort: Valley Forge led the pack in overall revenue, with a massive 29.5% year-over-year increase, bringing in $85.6 million.
- Hollywood Casino at Penn National: This casino saw a 7.10% rise in revenue, generating $82.5 million.
- Parx Casino: Despite leading in slot revenue, Parx experienced a 6.52% decrease in total revenue, reporting $52.2 million.
- Rivers Casino Philadelphia: The casino recorded a 7.84% increase in revenue, reaching $51.1 million.
