Casino Revenues in Macau Show Growth but Need for Diversification

BEIJING (Reuters) – Casino revenues in Macau, the world’s largest gambling hub, surged by nearly a quarter in 2024 but still remained below pre-pandemic levels, emphasizing the necessity for the former Portuguese colony to diversify its economy.

According to data published by the Gaming Inspection and Coordination Bureau on Wednesday, gaming revenue reached 226.8 billion patacas ($28.35 billion) last year, reflecting a 23.9% increase from 2023. This figure exceeded the government’s estimate of 216 billion patacas yet fell short of the 292.5 billion patacas recorded in 2019.

Notably, revenue experienced a 2.0% decline in December, marking the only month with a year-on-year decrease in 2024. This drop coincided with heightened security measures during a three-day visit by Chinese President Xi Jinping, commemorating a quarter-century of Beijing’s governance.

Macau returned to Chinese sovereignty on December 20, 1999, and operates under the “one country, two systems” framework similar to Hong Kong. During this visit, Xi urged Macau to possess the “courage” to diversify its economy by exploring new industries and enhancing connections with mainland China’s national development strategies.

This includes fostering greater economic integration with the Greater Bay Area, a region in the Pearl River Delta that links cities like Hong Kong and Guangzhou. To enhance its global competitiveness, Xi emphasized that Macau should strengthen cooperation with Portuguese-speaking countries and actively engage in Beijing’s Belt and Road Initiative, a far-reaching infrastructure project aimed at boosting trade between China and other regions.

As a special administrative region of China, Macau is the only locale in the country where gambling is legal. The economy relies heavily on casinos, which account for approximately 80% of tax revenues. However, China’s long-term anti-corruption campaign has limited gambling revenues from high-roller VIP customers, a trend worsened by the pandemic years that saw strict travel restrictions limiting tourist arrivals from the mainland.

($1 = 7.9990 patacas)