Macau's gambling revenue forecast for 2023 adjusted by 5%

Macau’s gambling industry will make much less profit in 2023 than previously expected. Analysts at Morgan Stanley have revised their forecast for earnings before interest, depreciation, taxes and amortization for the gaming industry. The six casino operators’ combined revenue in 2023 is expected to reach nearly $6.55 billion. This is 5% less than the $6.9 billion announced in the previous forecast.

The decline in EBITDA estimates comes as Macau’s gaming market is recovering much more slowly than previously expected. Analysts note that the costs of casino operators are growing along with business volumes.

Morgan Stanley estimates net proceeds could be $24.05 billion. Net profit could reach $2.2 billion, which is 16% lower than previously forecast.

Morgan Stanley analysts also estimated the EBITDA of the Macau gaming industry for 2024. Profit is projected to be $9.48 billion. Cumulative net income could reach nearly $5.21 billion.