Macau's Casino Profits Slow as China's Crackdown Weighs on Gambling Industry

Macau's casino profits are slowing due to China's crackdown and economic issues. The gaming sector saw revenue declines in June and July, ending 16 straight months of growth. The falling revenue comes after a larger capital crackdown from Beijing, including taxing offshore trusts, cracking down on cross-border brokerages, and limiting citizens’ outbound investments, including to Hong Kong and Macau.

Macau’s rebound was driven in part by typically smaller-stakes gamblers, rather than the “whales” that many properties cater to. However, the industry experienced double-digit drops in VIP and premium gamblers in June and July.

Gaming revenue is expected to slow by 3% for the remainder of the year, with combined profit predictions pointing to a 7% decrease for the second quarter. President Xi Jinping has said the city needs to diversify its economy away from being so heavily reliant on the casino industry.