• Subscribe
  • Magazines
  • About
  • Contact
  • Advertise
Saturday 31 May 2025
  • zh-hant 中文
  • ja 日本語
  • en English
IAG
Advertisement
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
    • Africa
    • Australia
    • Cambodia
    • China
    • CNMI
    • Europe
    • Hong Kong
    • India
    • Japan
    • Laos
    • Latin America
    • Malaysia
    • Macau
    • Nepal
    • New Zealand
    • North America
    • North Korea
    • Philippines
    • Russia
    • Singapore
    • South Korea
    • Sri Lanka
    • Thailand
    • UAE
    • Vietnam
  • Events
  • Contributors
  • SUBSCRIBE FREE
  • 中文
No Result
View All Result
IAG
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
    • Africa
    • Australia
    • Cambodia
    • China
    • CNMI
    • Europe
    • Hong Kong
    • India
    • Japan
    • Laos
    • Latin America
    • Malaysia
    • Macau
    • Nepal
    • New Zealand
    • North America
    • North Korea
    • Philippines
    • Russia
    • Singapore
    • South Korea
    • Sri Lanka
    • Thailand
    • UAE
    • Vietnam
  • Events
  • Contributors
  • SUBSCRIBE FREE
  • 中文
No Result
View All Result
IAG
No Result
View All Result

Academic says Macau gaming industry will be indirectly impacted by US-China tariff war

Pierce Chan by Pierce Chan
Thu 10 Apr 2025 at 17:51
Macau GGR hits new post-pandemic high of MOP$20.8 billion in October
39
SHARES
966
VIEWS
Print Friendly, PDF & Email

Tariff tensions between China and the United States will likely have an indirect impact on Macau by affecting tourism from mainland China and Hong Kong, an academic has told Inside Asian Gaming.

The warning comes amid an ongoing tit-for-tat between the two economic powerhouses, with China whacking retaliatory 84% tariffs on US goods this week, only for US President Donald Trump to respond with tariffs of 125% on imports from China.

Lau Pun Lap, President of the Macau Economic Association, said, “According to trade data, Macau’s exports to the United States last year amounted to about MOP$300 million, while imports from the United States amounted to more than MOP$7 billion, so from a trade perspective the tariffs imposed by the United States do not have a significant impact on Macau’s imports and exports of goods.”

However, as Macau is a service-export orientated economy, the tariff policy would affect Macau’s major service-export markets, specifically mainland China and Hong Kong.

“The tariffs will have an impact on the export of integrated tourism services, especially under the uncertainty of the global economy which would affect the consumer confidence of travelers and investors,” Lau explained.

“Macau’s main source of tourists is mainland visitors. In 2024, 72% of tourists came from mainland China and 52% of those from Guangdong Province, which is an export-oriented place. This would have certain impacts on us.”

The Macau government forecast last year that Macau’s gross gaming revenue would reach around MOP$240 billion in 2025 although that target is already on shaky ground with revenue for the first three months of the year reaching only MOP$57.6 billion.

Lau said it was now looking increasingly unlikely that gaming revenues would achieve the budget target.

“With the current tariffs and global economic uncertainties, gross gaming revenue this year may range from MOP$228 billion to MOP$230 billion and the recovery could be slower,” he said.

In addition, the offshore Renminbi fell to a 10-year low of 7.429 to the dollar on Tuesday night before recovering slightly. Lau pointed out that a weakening RMB might affect tourism spending.

He also noted that Macau, as a micro-economy, is vulnerable to external factors and relies heavily on the mainland market. If the mainland relaxes its measures on visitor arrivals to Macau, it may help to improve the situation.

“Mainland China started to adopt a number of measures to stabilize the economy in the fourth quarter and the fundamentals remain stable and the future economic development remains positive,” Lau said.

“Although Macau would not be directly affected by the tariff policy, there would be an indirect impact. Fortunately, Macau’s fiscal reserves remain strong and can withstand a certain degree of economic impact.”

Previous trade wars between the US and China have shown some minor impact, with the 2018 example leading to a 3.4% year-on-year decline in GGR in 2019. Although there were various reasons for the fall, including restrictions on VIP gaming and demonstrations in Hong Kong, the US-China trade war was considered to be among the major factors.

Lau noted that the current situation is different from 2019 because 70% of Macau’s gaming revenues are now sourced from the mass market.

“Gross gaming revenue in the first quarter of this year grew by 0.6% year-on-year and could improve if economic uncertainties diminish in the second half of the year,” he said.

“Under existing regulations, the Macau gaming market has maintained a certain degree of normal growth but even under normal economic conditions, gambling revenue would only maintain a reasonable and steady growth and would not experience the kind of explosive growth in the past.

“Overall, although it is estimated that GGR this year may not reach the target of MOP$240 billion, it is believed that it will not be too far from the target.”

Tariffs are not the only headwind impacting Macau’s gaming industry, with a recent police operation targeting local jewelry shops for engaging in illegal currency exchange having a short-term impact on the industry.

An insider told IAG that the illegal currency exchange activities were mainly carried out in two well-known resorts on the Cotai Strip and that since the police operation, the existence of money exchange gangs in the casinos of these two resorts have basically disappeared.

The same source added that suspected money exchange gangs were still operating in other casinos.

“The relationship between supply and demand has always existed and it is difficult to eliminate all money exchange gangs within a short period of time,” they said.

As reported by IAG, the police operation saw 22 Macau residents and 11 mainland residents were arrested on suspicion of transferring about HK$590 million (US$74 million) through the jewelry shops concerned.

Tags: casinosDonald TrumpGaminggross gaming revenueMacauTariffs
Share16Share3
Pierce Chan

Pierce Chan

With more than five years’ experience working as a journalist in Macau, Pierce is an experienced media operator with strong skills in news writing and editing. He previously worked with Exmoo, first as a reporter covering government, gaming and tourism-related stories, then as a Deputy Assignment Editor helping set the agenda of the day. Pierce is a graduate of the University of Macau.

Current Issue

Editorial – Foreigner-only casinos: Seize the day

Editorial – Foreigner-only casinos: Seize the day

by Ben Blaschke
Thu 29 May 2025 at 13:38

I was recently asked by someone working at a foreigner-only casino for my thoughts on the outlook for the Asian...

On the brink

On the brink

by Pierce Chan
Thu 29 May 2025 at 13:27

The transition period for Macau’s 11 satellite casinos is set to expire at the end of this year, after which...

A moral defense of gambling

A moral defense of gambling

by Andrew Russell
Wed 28 May 2025 at 18:19

Economist Andrew Russell explores the differences between community benefit and in-principle arguments for the existence of a legal gambling industry...

Face to face

Face to face

by Ben Blaschke
Wed 28 May 2025 at 18:08

Konami caught the eye at the recent G2E Asia show in Macau with its SYNK Vision Tables, which utilize facial...

Evolution Asia
Aristocrat
GLI
Mindslot
Mindslot
Solaire
Hann
Tecnet
Nustar
Jumbo

Related Posts

10 Years Ago – Reimagining Sri Lanka

Sri Lanka gazettes draft bill to establish Gambling Regulatory Authority

by Newsdesk
Sat 31 May 2025 at 06:03

A draft bill that would establish an official regulator for the Sri Lankan gaming industry, to be known as the Gambling Regulatory Authority, has taken another step forward after being gazetted. According to the Sri Lanka Mirror, the official announcement...

RGB International signs agreement to distribute KL Saberi and Atlas gaming machines

After record-breaking sales in 2024, Malaysia’s RGB sees 1Q25 profit fall to

by Newsdesk
Sat 31 May 2025 at 05:53

Malaysian gaming product distributor RGB International Bhd has reported group-wide revenue of MYR73.6 million (US$17.3 million) for the three months to 31 March 2025, down 65% year-on-year due to a lower number of products sold. The figure was also 79%...

Robert Goldstein to step aside as LVS Chairman and CEO from March 2026, replaced by Patrick Dumont

Robert Goldstein: Macau gaming market challenged by increased competition, online gambling and US-Sino trade war

by Ben Blaschke
Fri 30 May 2025 at 06:42

Las Vegas Sands (LVS) Chairman and CEO Robert Goldstein has bemoaned the lingering impact of the US-China trade war, as well as increased domestic and regional competition and the rise of online gambling across Asia for sustained flatness in the...

Industry hopes Thai Entertainment Complex Roundtable can establish “common ground” with those opposing legal casinos

Industry hopes Thai Entertainment Complex Roundtable can establish “common ground” with those opposing legal casinos

by Ben Blaschke
Fri 30 May 2025 at 05:38

Industry figures taking part in the Thai Entertainment Complex Roundtable (TECR) next Thursday 5 June hope to find common ground with those who oppose Thailand’s Entertainment Complex Bill, citing the opportunity to use an evidence-based approach to achieve outcomes that...



IAG

© 2005-2024
Inside Asian Gaming.
All rights reserved.

  • SUBSCRIBE FREE
  • NEWSFEED
  • MAG ARTICLES
  • VIDEO
  • OPINION
  • TAGS
  • REGIONAL
  • EVENTS
  • CONSULTING
  • CONTRIBUTORS
  • MAGAZINES
  • ABOUT
  • CONTACT
  • ADVERTISE
  • 中文

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • 中文
  • Subscribe
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
  • Events
  • Contributors
  • Magazines
  • Advertise
  • Contact
  • About
  • Home for G2E Asia

© 2005-2024
Inside Asian Gaming.
All rights reserved.

  • 中文
  • English