Macau’s gross gaming revenue (GGR) fell 1.2% year-on-year to MOP21.89 billion ($2.71 billion) in August, marking the third consecutive monthly decline, data from the Gaming Inspection and Coordination Bureau (DICJ) showed.
Revenue nevertheless rebounded 8.1% from July, when GGR stood at MOP20.26 billion ($2.51 billion) and was affected by the football World Cup.
For the first eight months of 2026, Macau’s GGR rose 3.7% to MOP169.05 billion ($20.9 billion), compared with MOP163.05 billion in the same period last year.
Citigroup had previously reported strong growth at the start of August, helped by improved VIP volume and hold. It attributed the improvement to pent-up demand following the World Cup and major concerts at Galaxy Arena and Venetian Arena that helped drive premium visitation.
However, Morgan Stanley said August gaming revenue came in below expectations and that, although revenue growth recovered after the World Cup ended, gaming revenue had stabilized at current levels.
The bank expects September GGR to rise by as much as 8% year-on-year in a best-case scenario, helped by a lower comparison base after gaming revenue in September last year was affected by a typhoon.
Morgan Stanley expects third-quarter gaming revenue to fall 1% year-on-year, compared with double-digit growth in the same period last year. It said the weaker performance could continue to drive negative operating leverage and lead to further cuts to earnings estimates.
Following recent weakness in Macau gaming stocks, the sector is trading at about eight times estimated 2026 enterprise value to earnings before interest, taxes, depreciation and amortization (EV/EBITDA), with a free cash flow yield of about 9%, according to Morgan Stanley.
The bank maintained Overweight ratings on Wynn Macau and MGM China, citing their attractive dividend yields and relatively lower downside risk to earnings estimates.
Shares of all six Macau casino operators closed lower, led by Galaxy Entertainment, which fell 3.16%. Gaming equipment supplier Paradise Entertainment bucked the trend, rising 3.27%.
Original article: https://www.yogonet.com/international/news/2026/09/01/126181-macau-casino-revenue-falls-12-to-271-billion-in-august-third-monthly-decline
