Casino revenues in Macau, the world’s largest gambling hub, grew by almost 25% last year, but at the same time remains below the levels seen before the coronavirus pandemic.
As noted by the media, the mentioned result highlights the need to diversify the economy of the specified former Portuguese colony.
Gambling revenue in Macau totaled 226.8 billion patacas ($28.35 billion) last year. The relevant information was published by the Gaming Inspection and Coordination Bureau on Wednesday, January 1. The mentioned revenue is 23.9% higher than the figure recorded in 2023.
It is worth noting that the government expected that the revenue from gambling in Macau in 2024 would be fixed at the 216 billion patacas mark. The final result exceeded this forecast. In 2019, gambling revenue in Macau was recorded at 292.5 billion patacas. Then a downward tendency began amid the coronavirus pandemic.
It is noteworthy that in December, the specified indicator fell by 2% year-on-year. This is the only month in 2024 when there was a decrease in gambling revenue.
It is worth noting that the drop in the mentioned indicator coincided with increased security measures against the background of the three-day visit of the head of the People’s Republic of China Xi Jinping on the occasion of the celebration of a quarter century of Beijing’s rule.
Macau returned to Chinese rule on December 20, 1999, and is governed on the principle of One Country, Two Systems, like neighboring Hong Kong.
During his visit, Xi Jinping called on Macau to have the courage to diversify its economy by establishing new industries and better connecting with the national development strategies of mainland China. In this case, it also implies increased economic integration with the Greater Bay Area, a region in the Pearl River delta that links cities such as Hong Kong and Guangzhou.
Xi Jinping said that to increase Macau’s global competitiveness, it should continue to promote cooperation with Portuguese-speaking countries and actively participate in Beijing’s Belt and Road initiative, an ambitious infrastructure project aimed at stimulating trade between China and other states around the world.
Macau is a special administrative region of China and the only place in the country where gambling is legal. The local economic system is heavily dependent on casinos, which account for about 80% of the total tax revenue structure.
It is worth noting that China’s long-term fight against corruption has caused a decrease in gambling revenue in the VIP sector. During the coronavirus pandemic, the decline in the corresponding indicator increased. At that time, against the background of strict travel restrictive measures, the number of tourists from mainland China visiting decreased. Macau reported 2.8 million visitor arrivals in November. This indicator is about 97% of the level seen before the coronavirus pandemic.
It is also worth noting that Macau, being one of the regions of China, has significant autonomy, characterized by its own laws, the right to participate in international organizations, and its own legal, monetary, customs, and immigration system.
As we have reported earlier, Mainland China Rolls Out New Crackdown on Macau’s Illegal Money Exchanges.
