Macau casino revenue 2024 is the legal maximum but below pre-pandemic levels

BEIJING (Reuters) – Casino revenue in Macau, the world's biggest gambling hub, rose by nearly a quarter in 2024 but fell short of pre-pandemic levels, underscoring the need for the former Portuguese colony 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 Bureau on Wednesday.

That exceeded government estimates of 216 billion patacas, but followed 292.5 billion patacas inflows in 2019.

Notably, income fell by 2.0% in December, the only month to register a year-on-year decline in 2024.

This decline coincided with the tightening of security in connection with a three-day visit by Chinese President Xi Jinping to mark a quarter of a century of Beijing's rule.

Macau returned to Chinese rule on Dec. 20, 1999, is governed under the same “one country, two systems” system as nearby Hong Kong.

During his visit, Xi called on Macau to have the “courage” to diversify its economy by establishing new industries and better connecting with the country's mainland development strategies.

That includes increasing economic integration with the Greater Bay Area, a region in the Pearl River Delta that connects cities like Hong Kong and Guangzhou.

In order to increase its global competitiveness, Xi said Macao should promote cooperation with Portuguese-speaking countries and actively participate in Beijing's Belt and Road Initiative, an ambitious infrastructure plan aimed at promoting trade between China and the rest of the world.

Macau, a special administrative region of China, is the only place in the country where gambling is legal. Its economy relies heavily on casinos, which contribute about 80% of its tax revenue.

But China's long-running anti-corruption campaign has tapped into gambling revenues from the high-end VIP sector, which was hit hard during the pandemic years when strict travel restrictions severely curtailed tourist visits to the continent.

($1 = 7.9990 patacas)

(Reporting by Ryan Woo; Editing by Gareth Jones)