The entropy index is an indicator used in the academic community to measure economic diversity. Higher entropy index values indicate relatively less sectoral concentration in an economy, while lower values indicate relatively more concentration.
Table 3 shows a series of entropy index values of economic diversity, calculated from value added of different economic activities. As can be seen from the data series, after the liberalisation of the gaming sector, the sectoral concentration in Macao rose constantly between 2002 and 2013, and the trend began to reverse in 2014. Owing to decreases of 34.3% and 3.3% in gross gaming revenue in 2015 and 2016 respectively, the entropy index based on value added of economic activities increased, indicating a slight drop in sectoral concentration. The entropy index edged down by 0.06 and 0.04 year-on-year in 2017 and 2018 respectively, showing a higher sectoral concentration in the economy compared to 2016. In 2019, the entropy index nudged up by 0.01, implying a modest fall in sectoral concentration.
Table 3: Entropy index of economic diversity by the production approach
Value added of economic activities
2002
r2007
r2015 2016
20172018
r2019
At current producers' prices 2.15 1.93 1.87 1.92 1.86 1.82 1.83
At current basic prices 2.33 2.22 2.20 2.24 2.21 2.18 2.18
Note: r Revised figures
Source: Calculations based on data from DSEC
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3.2 Diversity of Gaming Activities
Among the various gaming activities in Macao, games of chance played the dominant role, with over 99% of the gross gaming revenue coming from games of chance. Gross revenue from games of chance reached MOP 360.75 billion and MOP 351.52 billion in the peak years of 2013 and 2014 respectively, and stabilised at MOP 302.85 billion in 2018 after a three-year adjustment period from 2015 to 2017. In 2019, gross revenue from games of chance decreased slightly to MOP 292.46 billion. Revenue from football and basketball lotteries, horse racing, Chinese lottery, instant lottery, etc. was insignificant, amounting to around MOP 0.86 billion in 2019.
Table 4: Gross gaming revenue and the relative importance by type of activity
Gross gaming
revenue Share
Gross gaming
revenue Share
Gross gaming
revenue Share
Gross gaming
revenue Share (Million MOP) (%) (Million MOP) (%) (Million MOP) (%) (Million MOP) (%) Total 224 128 100.00 266 607 100.00 303 879 100.00 293 312 100.00 Games of Chance 223 210 99.59 265 743 99.68 302 846 99.66 292 455 99.71 Others* 917 0.41 864 0.32 1 033 0.34 856 0.29
2019
2017 2018
2016
Note: *Including football and basketball lotteries, horse racing, greyhound racing, Chinese lottery, instant lottery, etc.
Source: DICJ
VIP gaming used to be the major source of gross revenue from games of chance, which occupied 69.4% of the total in 2012; however, the relative importance of VIP gaming dropped in the subsequent years, falling by 14.4 percentage points from 2012 to 55.0% in 2018. In 2019, the proportion of VIP gaming was smaller than that of mass market table gaming for the first time, at only 46.4%, representing a decline of 23.0 percentage points from 2012.
On the other hand, the shares of mass market table gaming and slot machine gaming in gross revenue from games of chance registered growth in recent years. In 2019, gross revenue from mass market table gaming amounted to MOP 141.53 billion and that from slot machine gaming totalled MOP 15.14 billion, constituting 48.4% and 5.2% of gross revenue from games of chance respectively.
Table 5: Gross revenue from games of chance and the relative importance by type of activity
Gross revenue from games of
chance Share
Gross revenue from games of
chance Share
Gross revenue from games of
chance Share
Gross revenue from games of
chance Share (Million MOP) (%) (Million MOP) (%) (Million MOP) (%) (Million MOP) (%) Total 223 210 100.00 265 743 100.00 302 846 100.00 292 455 100.00 VIP gaming 119 519 53.55 151 315 56.94 166 571 55.00 135 790 46.43 Of which: VIP Baccarat 118 960 53.30 150 673 56.70 166 097 54.85 135 228 46.24 Mass market table gaming 92 307 41.35 101 264 38.11 121 227 40.03 141 528 48.39 Slot machine gaming 11 384 5.10 13 164 4.95 15 048 4.97 15 138 5.18
2019
2017 2018
2016
Source: DICJ
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Chart 5: Gross revenue from games of chance, 2002 to 2019
0 50 000 100 000 150 000 200 000 250 000 300 000 350 000 400 000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Million MOP
Total VIP gaming Mass market table gaming Slot machine gaming
Chart 6: Changes in gross revenue from games of chance as compared to 2002
0 1 000 2 000 3 000 4 000 5 000 6 000 7 000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
%
Total VIP gaming Mass market table gaming Slot machine gaming
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3.3 Business Diversity of Gaming Concessionaires
The major indicators for measuring business diversity of the gaming concessionaires include the gaming receipts and non-gaming receipts of the concessionaires, as well as their shares in total receipts.
In 2019, total receipts of the six gaming concessionaires amounted to MOP 325.17 billion, of which 89.6% came from gaming activities (MOP 291.44 billion) and 10.4% from non-gaming activities (MOP 33.74 billion). Compared to 2018, gaming receipts dropped by 3.5% in 2019, whereas non-gaming receipts rose by 0.9%. The proportion of non-gaming receipts in total receipts edged up by 0.4 percentage points to 10.4%.
Table 6: Gaming and non-gaming receipts of gaming concessionaires and the relative importance
Amount Share Amount Share Amount Share Amount Share Amount Share
(Million
MOP) (%)
(Million
MOP) (%)
(Million
MOP) (%)
(Million
MOP) (%)
(Million
MOP) (%)
249 814 100.00 296 112 100.00 294 929 100.00 335 338 100.00 325 171 100.00 223 130 89.32 265 438 89.64 265 438 90.00 301 912 90.03 291 435 89.63 26 684 10.68 30 674 10.36 29 491 10.00 33 426 9.97 33 736 10.37 Total receipts
Gaming receipts(3) Non-gaming receipts(4)
Receipts after adjustment(1) Receipts recognised under IFRS 15(2)
2016 2017 2017 2018 2019
Notes: (1) "Receipts after adjustment” refer to the non-gaming receipts adjusted by DSEC to reflect the retail value of the services, such as accommodation and catering etc. provided free of charge or at discounted prices by gaming concessionaires.
(2) “International Financial Reporting Standard 15 - Revenue from Contracts with Customers” (IFRS 15) took effect from 1 January 2018 onwards.
(3) The gaming receipts figures are quoted from the annual operating accounts of the gaming enterprises published in the Official Bulletin of the Macao SAR Government. Slight discrepancies may occur when comparing with the data published by DICJ.
(4) The non-gaming receipts include Macao subsidiaries and associates wholly owned by the gaming concessionaires as disclosed in the annual financial reports of the holding companies listed in Hong Kong and the United States.
Sources: Annual financial reports of the holding companies listed in Hong Kong and the United States that owned the six gaming concessionaires.
Analysed by type of gaming activity, receipts from accommodation constituted the largest share of the total non-gaming receipts of non-gaming concessionaires, at 43.3% in 2019; receipts from catering rose constantly year-on-year to make up the second largest share, at 24.9%, exceeding the share of retail activities & rental of spaces (24.7%) for the first time.
Table 7: Non-gaming receipts of gaming concessionaires and the relative importance
Amount Share Amount Share Amount Share Amount Share Amount Share
(Million
MOP) (%)
(Million
MOP) (%)
(Million
MOP) (%)
(Million
MOP) (%)
(Million
MOP) (%)
26 684 100.00 30 674 100.00 29 491 100.00 33 426 100.00 33 736 100.00 10 886 40.80 12 465 40.64 11 888 40.31 14 037 42.00 14 603 43.29 6 256 23.45 7 327 23.89 7 041 23.88 8 072 24.15 8 394 24.88 6 303 23.62 7 668 25.00 7 825 26.53 8 229 24.62 8 315 24.65
1 137 4.26 918 2.99 810 2.75 877 2.62 841 2.49 2 102 7.88 2 297 7.49 1 926 6.53 2 212 6.62 1 583 4.69 Others
Non-gaming receipts
Accommodation
Catering Retail activities &
rental of spaces Entertainment
Receipts after adjustment(1) Receipts recognised under IFRS 15(2)
2016 2017 2017 2018 2019
Notes: (1) “Receipts after adjustment” refer to the non-gaming receipts adjusted by DSEC to reflect the retail value of the services, such as accommodation and catering etc. provided free of charge or at discounted prices by gaming concessionaires.
(2) “International Financial Reporting Standard 15 - Revenue from Contracts with Customers” (IFRS 15) took effect from 1 January 2018 onwards.
Sources: Annual financial reports of the holding companies listed in Hong Kong and the United States that owned the six gaming concessionaires.
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Chart 7: Distribution of non-gaming receipts of gaming concessionaires (2019)
Accommodation 43.3%
Catering 24.9%
Retail activities &
rental of space 24.7%
Entertainment 2.5%
Others 4.7%