Macau Revenue Rebounds But Concerns Over Crimewave

To the relief of industry officials, Macau’s robust casino industry bounced back in February, racking up a staggering 19.74 billion Macanese Patacas (US$2.47 billion) in gross gaming revenue (GGR).

Boosted by an 8% month-over-month return, the impressive revenue surge was due in part to the timely Chinese New Year holiday which was instrumental in lifting the casino sector out of a two-month slump.

Despite February’s impressive revival, there are still underlying concerns that gaming industry revenues remain far below the levels of the pre-pandemic peak, unlike China’s burgeoning Esports sector.

In fact, last month’s revenues were still only 78% of 2019 levels, with analysts warning that the noticeable loss of high-rolling VIP gamblers and Beijing’s regulatory crackdown on junket operations continues to stunt the industry’s recovery.

In an attempt to lure premium mass-market traffic, Macau’s casino operators have poured billions into adding non-gaming attractions, but to no avail.

Industry experts express skepticism as to whether family-friendly entertainment-themed events can replace the lucrative revenues lost from Macau’s once-thriving VIP sector.

In addition to Macau’s casino revenue struggles, the city is also forced to confront a growing crime wave tied to its recent tourism revival, with gambling-related offenses soaring by 31% alone in 2024.

Primary of these concerns is the daunting levels of theft, loan sharking, and illegal money exchanges. Reports suggest they have made the city’s casinos not just a mecca for gamblers, but for criminals too – a trait also mirrored in China’s growing lottery markets.

While local authorities have made a concerted effort to crack down on underground money changers, the move has inadvertently driven up crime rates as law enforcement disrupts the region’s illicit criminal networks.

Acknowledging the issue, Macau’s Secretary for Security, Wong Sio Chak, stated “With the further increase in tourists to Macau and the recovery of the tourism and gambling industries, the number of factors destabilizing social security increased in 2024.”

The consequence of this saw Macau record 14,298 crimes in 2024, a 6% year-on-year rise, with the most prominent offenders tied to fraud and cybercrime. These reported figures also indicated that while organized crime remained fairly stable, security officials still remain on high alert as a result of other gambling-related offenses continuing to climb.

Given the weaker-than-expected GGR forecast for 2025 in tandem with tightening regulations, Macau’s casino industry has an unpredictable future ahead. Whilst not impossible, the city needs to strike a balance between continuing to charm mass-market gamblers, while curbing the inevitable spike in criminal activity it attracts.