After a turbulent period filled with pandemic-related problems and changes in regulatory policies for the gambling industry, Macau – known as the Las Vegas of Asia – is registering an incredible growth. This recovery comes at the right time as the special administrative region of China is under threat by other burgeoning gambling destinations across South East Asia.
The data from the Macau’s gaming regulators from the Gaming Inspection and Coordination Bureau reveals that the casino operations have rebounded to pre-pandemic level and achieved $22.7 billion in gross gaming revenue in the first three quarters of 2024. This spectacular recovery is mainly due to the easing of COVID-19 measures, and the arrival of mainland Chinese visitors, which are the main target market for Macau gamblers.
The revival of gambling industry in Macau is far from being a restoration of status quo, it lifted gambling sector to another level. The casinos in Macau have been extending aggressively in non-gaming facilities in keeping with Beijing’s encouragement of diversification of the economy. This shift is in an effort to diversify Macau from gambling entertainment city to an entertainment and tourisms destination.
However, Macau’s rebound is spun with increased rival for the lucrative betting business from other South East Asian countries. The Philippines has especially been on the forefront on growth of the casino business, with new integrated Resorts in Manila and other strategic locations. An increase in gross gaming revenue by 30% year on year for 2023 was recorded by the country’s gambling regulating agency, PAGCOR.
Vietnam is also a relatively new comer to the Southeast Asia gambling market. In recent years the country has made liberal changes to their gambling laws which enabled Vietnamese people to visit casinos for the first time only in a limited number of cases. This change of policy direction combined with investment in large integrated resorts in HO Tram, Phu Quoc and other areas that are making Vietnam a potential threat to traditional gambling centers.
Cambodia itself, despite it’s recent attempts to crack down online gambling is still very open to investments in the land based casino market throughout Sihanoukville and along Thai border. Close to the major markets and still has less restrictive policies to govern the operations it has become one of the favorite places for both the operators as well as players.
The competition in the regional area has raised the pressure on Macau to continue its push to retain and expand its reputation as Asia’s gambling hub. The Macau government has been collaborating with operators to introduce latest technologies to improve visitors’ experience. These include, facial identification for security and cashless gaming solutions for efficiency to counter check and regulation purposes.
Furthermore, Macau is capable to take its competitive advantages based on the fact that casino gambling is legal only in Macau in the whole People’s Republic of China to attract the high- rollers and vip players. This segment of consumers is presently enjoying special treatment and privileges from the region’s casinos which have sought to set up unique selling propositions and privileges for loyalty, all in a bid to outcompete their counterparts in other regions of Southeast Asia.
The recent revival of Macau gambling also have some strong impacts towards the economical aspects of the area. The employment in the sector has recovered, as shown by the thousands of casino and allied industries employees hired to meet the increased demand. It has gone a long way in easing some of the economic challenges that people living in the region go through especially during the current COVID19 crisis.
However, obstacles still exist in Macau’s gambling trade. Trade situation between China and the United States left negative impression on future visitor arrivals from mainland China. Fourth, legislative crackdown on corruption remains a concern in the high-roller segment of the market in Beijing, leading to casino’s increasing targeting on mass-market premium mass customers and non-gaming revenues.
While Macau and other operators strive for managing these challenges and extracting value from opportunities, the general trends of gambling industry in South East Asia go further. The governments of the region are putting efforts on how best to allow the gambling sector to pull in its revenue, but at the same time address the social and or regulatory issues that accompany gambling. Singapore, for instance, has put in place very rigid measures of control and social measures while others are still putting up frameworks for their gambling markets.
The next few years should prove to be equally dynamic in terms of changes in the regional gambling landscape, as countries vie for tourists as well as gambling dollar. Macau’s continued pre-eminence will thus depend on its relative capability to revitalise its offer, expand its growth drivers, assume flexibility for shifting market structures and clienteles. With the intensification of the competition in the matter, the gambling industry in the region of Southeast Asia looks only for the further growth and changing with potentially strong impact on the future development of the entire region from the financial and economic point of view, as well as for the social and cultural impacts.