Free services for customers represented 63% of operating expenses among Macau’s gaming operators in 2024, according to the Gaming Sector Survey released Wednesday by the Statistics and Census Service (DSEC).
Hotels and Dining Dominate Complimentary Services
The bulk of these perks came from hotel accommodation, which alone accounted for 34.4% of total operating expenses in this category. Food and beverage followed at 19.9%, while transportation costs, including bus, ferry, and air tickets, added another 3.3%. Other giveaways made up 5.5% in the context of Macau’s gaming industry.
These figures show how heavily concessionaires rely on non-gaming perks to attract high-value clients. The strategy has remained consistent even after the government’s junket crackdown. Previously, junkets shared part of the financial burden by covering high-roller expenses under revenue-sharing deals. However, the revised gaming law ended those arrangements, shifting the full cost of complimentary services to concessionaires. Since 2019, the share of operating expenses devoted to freebies has jumped from the mid-40% range to more than 60% in Macau.
Other Operating Costs
Beyond complimentary services, operators also spent on market research and publicity (6.6%) and management and contractual services (17.2%). Consumables, maintenance, and professional services made up smaller portions but reflected the broad base required to sustain large-scale casino operations in Macau.
Overall, operating expenses represented 43% of the sector’s total expenditures in 2024, compared to 39.6% in 2023. Meanwhile, employee compensation accounted for 22.8%, and purchases of goods, commissions, and rebates reached 24.6%. Non-operating expenses, including interest and depreciation, stood at 9.6%.
Gaming Sector Surplus Climbs Nearly 25%
Despite rising costs, Macau’s casino industry recorded strong growth in 2024. Total receipts increased 23.1% year-on-year to MOP231.45 billion ($28.7 billion), while total expenditure rose 18% to MOP94.37 billion ($11.7 billion). This left a gross surplus before taxes of MOP143.12 billion ($17.7 billion), up 24.7% from 2023.
The six licensed concessionaires posted similar results. Combined receipts rose 23.3% to MOP230.76 billion ($28.6 billion), while expenditure grew 18.3% to MOP93.87 billion ($11.6 billion). They also expanded their workforce, employing 52,426 full-time staff, a 3% increase from the previous year, reflecting the ongoing growth within Macau’s bustling casino sector.
