Macau’s gaming industry is headed for stricter supervision and a strategic shift toward non-gaming development, Secretary for Economy and Finance Tai Kin Ip said on Wednesday, as he outlined the government’s economic priorities for 2025.
In his policy address to the Legislative Assembly, Tai warned that although Macau’s economy remained generally stable, the gaming sector faced mounting challenges from international competition and shifting consumption patterns.
Gross gaming revenue was “practically unchanged year-on-year” in the first quarter of 2025, he said, adding that financial revenues may fall short of earlier expectations.
“We must carefully assess the economic situation and respond prudently,” Tai said. “The challenges and risks should not be overlooked.”
The International Monetary Fund (IMF) has decided to halve its gross domestic product (GDP) growth forecast for the Macau SAR in 2025, revising it from 7.3 per cent projected in October last year to 3.6 per cent in its latest World Economic Outlook report released on Tuesday.
In the first quarter of 2025, Macau’s total gaming revenue rose just 0.6 per cent year-on-year to MOP57.66 billion ($7.21 billion), or MOP19.2 billion ($2.40 billion) per month—falling slightly short of the government’s full-year forecast of MOP240 billion ($30 billion), or MOP20 billion ($2.50 billion) per month.
A major pillar of Tai’s plan is the creation of an interdepartmental working group, led by the Economy and Finance team, tasked with overseeing gaming concessionaires’ commitments. The group will also guide operators to rebalance their investment portfolios, steering more resources into strategic industries in Macau and neighboring Hengqin.
“We will continue to strictly supervise the healthy and orderly development of the gaming sector according to the law, enhancing the smart management of the sector,” Tai said. “At the same time, we will actively develop non-gaming elements to strengthen Macau’s global competitiveness.”
Diverting investment
The government expects concessionaires to channel greater investments into key areas including culture, sports, exhibitions, and leisure tourism. The aim, Tai said, is to bolster Macau’s resilience to external shocks and to further its transformation into a World Center of Tourism and Leisure.
“Our mission is to promote the adequate diversification of the economy,” Tai said, emphasizing that gaming companies must align with the broader “1+4” diversification strategy — which includes emerging sectors such as modern finance, high technology, traditional Chinese medicine, and conventions and exhibitions.
Macau’s efforts to broaden its economic base come as the global environment remains volatile, Tai noted. “The intensification of unilateralism and protectionism has impacted economic development and the stability of global supply chains,” he said. As a small, open economy, Macau is particularly sensitive to such shifts.
Nevertheless, Tai struck a confident tone about the city’s future, crediting the strong backing from Beijing. “Having the strong support of the Motherland and being closely connected to the world has always been Macau’s greatest advantage,” he said.
Beyond gaming, the government will also step up efforts to attract international tourists, focusing on younger Generation Z travelers and emerging visitor markets in Southeast Asia, South Asia, and South America. New overseas offices for economic, trade, tourism, and cultural affairs are expected to drive these initiatives.
But the centerpiece of Tai’s remarks remained the gaming industry — still the engine of Macau’s economy — and its path ahead.
By tightening oversight and demanding greater contributions to Macau’s diversified growth, authorities hope to ensure that the sector continues to play a sustainable role in the city’s evolving economic landscape.
“We are full of confidence and determination for the future,” Tai said.
