Macau’s foreigner-only gaming zones continue to make only a marginal contribution to overall casino revenue despite signs of early progress, an analyst and industry observer told AGB.
The segment generated about HK$3 billion ($385 million) in gross gaming revenue in 2024 and triggered HK$150 million ($19.2 million) in levy relief for operators.
Foreign player gaming accounted for roughly 0.17 percent of total casino revenue for the year, according to a government budget execution review.
The review was discussed last month at the Legislative Assembly of Macau, marking the first time authorities have publicly disclosed detailed data on gaming revenue generated by foreign players under the current incentive framework.
Under Macau’s revised gaming law, operators may receive up to a 5 percent reduction in special contributions linked to gaming revenue generated by international visitors, provided the activity takes place in designated gaming zones within casino properties. These zones were established as part of a broader strategy to encourage operators to develop facilities and services aimed at non-mainland Chinese customers.
Committee chairman and lawmaker Ip Sio Kai said the relief mechanism is intended to support efforts to diversify Macau’s visitor base and reduce reliance on a single source market. The policy forms part of the government’s wider push to reposition the city as an international tourism and leisure destination.
Limited impact
An analyst at an international investment bank, who preferred not to be identified, told Asia Gaming Brief that the financial impact remains limited.
“I think these are positive developments, but they are too small to matter, as foreigners contributed roughly 1 percent of total GGR in 2025,” the analyst said, adding that such levels are insufficient to materially influence operators’ earnings or investment decisions.
Speaking to AGB, Billy Song, president of the Macau Responsible Gaming Association, said the foreigner-only zones require more tailored approaches to become effective. He noted that such areas need to better reflect the cultural backgrounds and preferences of target markets.
“Because these are dedicated zones for foreign visitors, there should be more cultural elements linked to their source markets,” Song said. “For example, having staff who speak Thai or Japanese and providing services that match their preferences could make the experience more attractive.”
Song added that the current scale of foreign play is broadly in line with earlier expectations, given Macau’s tourism structure, in which visitors from mainland China continue to account for the majority of arrivals.
He also noted that many international tourists may still choose to gamble in mass-market areas rather than in designated zones, limiting the policy’s effectiveness.
“In practice, some foreign visitors may prefer the atmosphere of the main gaming floor…As a result, not all international play is captured within the designated areas that qualify for the levy relief.”
Billy Song
Under Macau’s gaming regime, operators are subject to an effective tax rate of 40 percent on gross gaming revenue, including a 35 percent direct gaming tax and 5 percent in special contributions. The levy relief applies only to the latter and does not affect core tax revenue, according to government officials.
The government introduced the incentive framework in 2023 as part of the new gaming law, aiming to encourage operators to strengthen overseas marketing, improve international air connectivity, and develop more diversified tourism products.
Officials have repeatedly stressed that the policy is a long-term measure and that its impact will take time to materialize.
