Q3 Figures Show Mass Market Baccarat Thriving in Macau

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Nowhere in the world is baccarat as important as it is in Macau, where the game is vital to the economy. Rather than play online baccarat, fans of the game flock to the casinos renowned for their luxury.

Recently published data from the Gaming Inspection and Coordination Bureau (DICJ) revealed that baccarat remained the top contributor to Macau’s Gross Gaming Revenue (GGR) for the third quarter of this year. Mass-market baccarat alone accounted for nearly 61.3% of the MOP 55.6 billion (USD 6.9 billion) quarterly GGR, reaching a total of MOP 34.09 billion (USD 4.26 billion). Meanwhile, VIP baccarat revenue amounted to MOP 13.08 billion (USD 1.63 billion), representing 23.5% of the quarter’s GGR.

Key Trends in Baccarat Revenue in Q3 2024
There were some trends clearly evident during the quarter in the balance between VIP and mass-market baccarat.

Total GGR for Q3, 2024 of MOP 55.6 billion of Macau is with a slight fall from previous quarters, which some industry commentators have said is due to seasonal factors. However, compared to the same period in 2023, both VIP and mass-market baccarat saw year-on-year growth. Mass baccarat revenue rose by 14.5% from Q3 2023, mainly due to an increase in tourists, steady visitor numbers, and spending.

VIP version revenue, while up 11.2% from the same quarter last year, continued baccarat’s long-term decline as a proportion of Macau’s GGR. This segment made up 23.5% of the total in Q3, a huge drop from its 43.8% share in 2019. The figures are a clear demonstration of how changes to the laws and economic shifts are influencing Macau’s gaming sector.

Mass-market baccarat has become the main source of revenue growth for Macau’s casinos. With revenue reaching MOP 34.09 billion, mass version accounts for a significant share of Q3 GGR and has once again shown itself to be one of the industry’s more sustainable revenue streams. Unlike VIP baccarat, the mass-market segment has shown itself to be resilient and less vulnerable to regulatory pressures. Recent policies introduced in Macau have restricted junket operations and VIP rooms, leading operators to focus more on mass baccarat, which attracts a broader range of players and carries less regulatory risk.

Compared to pre-pandemic levels in 2019, mass baccarat revenue for Q3 2024 is up 11.5%. This growth is partly due to increased visitor spending, as tourists from mainland China return to Macau and average per capita spending rises. Bank of America has reported that mass-market baccarat has recovered to 130% to 140% of pre-COVID levels, suggesting it is to remain an important revenue source in the future.

VIP Baccarat in Q3
While there have been improvements in VIP’s revenue year-on-year, the figures from Q3 2024 are in line with the broader decline of the VIP baccarat segment as a core component of Macau’s gaming industry. VIP baccarat revenue of MOP 13.08 billion was up 11.1% from Q3 2023, but it is still 57.9% lower than in 2019 when VIP play accounted for a much larger portion of the city’s total GGR. VIP baccarat now contributes less than a quarter of Macau’s gaming revenue.

The decline of VIP baccarat in Macau is the result of several factors, including the crackdown on junket operators who used to drive much of the high-roller business. In 2024, the number of licensed junkets fell to 24, down from a high of 235 in 2013. The new regulations allow each junket to partner with just one casino concessionaire, which brought to an end previous revenue-sharing agreements and made it harder for VIP rooms to operate as they once did. As a result, high rollers have begun to move away from Macau’s casinos.

Now that mass-market baccarat has become the main source of revenue, Macau as a whole is seeing a move away from VIP gambling towards more sustainable mass-market gambling. This, combined with growing tourism, shows that Macau’s gaming industry continues to attract players from around the world and as a whole, it looks likely to continue thriving long into the future.

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