BEIJING (Reuters) – casino (EPA:) Revenues in Macau, the world's largest gambling hub, rose by about a quarter in 2024 but remain below pre-pandemic levels, underscoring the former Portuguese colony's need to diversify its economy.
Gaming revenue last year reached 226.8 billion patacas ($28.35 billion), up 23.9% from 2023, according to data published by the Gaming Inspection and Coordination Office on Wednesday.
This exceeded the government's estimate of 216 billion patacas, but came after the 292.5 billion patacas recorded in 2019.
Notably, revenues declined 2.0% in December, the only month to record a year-over-year decline in 2024.
This decrease coincided with the tightening of security measures surrounding Chinese President Xi Jinping's three-day visit marking a quarter century of Beijing's rule.
Macau returned to Chinese rule on December 20, 1999, and was ruled under the same “one country, two systems” system as neighboring Hong Kong.
During his trip, Xi urged Macao to have “courage” to diversify its economy by creating new industries and better communicating the mainland's national development strategies.
This includes increasing economic integration with the Greater Bay Area, an area in the Pearl River Delta that links cities such as Hong Kong and Guangzhou.
In order to enhance its global competitiveness, Xi said Macau should further strengthen cooperation with Portuguese-speaking countries and actively participate in Beijing's Belt and Road Initiative, an ambitious infrastructure plan aimed at boosting trade between China and the rest of the world.
Macau, a special administrative region in China, is the only place in the country where gambling is legal. Its economy relies heavily on casinos, which contribute about 80% of tax revenue.
But China's long-running anti-corruption campaign has curbed gambling revenues from the VIP sector, which further stagnated during the pandemic years when strict travel restrictions sharply curtailed visits by mainland tourists.
($1 = 7.9990 potatoes)
