Macao’s leader issued a strongly worded warning against the SAR’s continued over-reliance on its gambling industry on Wednesday, bemoaning the “monotonous structure of visitor sources, the imbalance in the government’s tax revenue and the lack of innovation” that he believes casinos have led to, Inside Asian Gaming reports.
Speaking at the first plenary session of the 2025 Economic Development Commission, Chief Executive Sam Hou Fai described these as “major problems that still need to be improved and resolved.” He added that he didn’t see any quick fixes on the horizon, and expected “the structural problem of ‘one industry dominates’ will continue for some time.”
Sam also highlighted the threat of increasing regional competition in the casino industry, with Thailand set to legalise casinos in the near future. While Beijing has expressly warned its citizens – by far Macao’s biggest pool of punters – to shy away from gambling overseas, many shrug off the advice. It appears unlikely that Thai casinos will ignore the lucrative mainland market, making the kingdom a formidable competitor for Macao.
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“Competition in the tourism and gaming industry in Macao is intensifying, and the risks and challenges brought to Macao should not be overlooked,” Sam reportedly said.
The city is in the midst of a push towards economic diversification, but Sam noted that the pace of development of its four emerging industries – finance, life sciences, technology and event production – had not been “as expected by society” to date. “I hope that all sectors of the community will pool their wisdom to solve the problems brought about by the process of economic recovery,” Inside Asian Gaming quoted him as saying.
The SAR registered 226.8 billion patacas (US$28.1 billion) in gross gaming revenue (GGR) in 2024, a year-on-year jump of 23.9 percent. This year, the government expects GGR to hit 240 billion patacas (US$29.9 billion). The government currently relies on gambling for the vast majority of its tax revenue.
