Macau’s economy remains resilient amid global headwinds: AMCM

Viviana Chan

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July 22, 2025

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Macau’s economy remains resilient amid global headwinds: AMCM

Macau’s economy is expected to remain resilient despite facing ‘softened momentum’ due to ongoing global economic uncertainty, according to the latest Monetary and Financial Stability Review published by the Monetary Authority of Macau (AMCM), the city’s financial regulator and de facto central bank.

The review, released in July, is based primarily on statistics and information available as of July 7th, 2025.

The AMCM noted that while ‘external headwinds persist’, economic expansion in mainland China—underpinned by ‘proactive fiscal measures’ and ‘moderately accommodative monetary policies’—will continue to support consumer confidence and create a more favourable environment for Macau’s service exports.

Locally, the SAR Government has implemented a series of policy measures aimed at sustaining domestic demand. These include revitalisation efforts in older districts and ‘consumption reward programs’ designed to stimulate local spending. According to the review, such initiatives are expected to ‘reinforce Macau’s recovery trajectory’ throughout the remainder of 2025, despite uncertainties in the global environment.

However, the report also identified areas of concern. Net service exports declined in the first quarter of 2025 amid slowing visitor expenditure. While service exports rose 9.2 percent in 2024—driven by a 23.8 percent increase in gross gaming revenue (GGR)—growth has since moderated. In the first quarter of 2025, GGR increased by only 0.6 percent year-on-year, with both mass-market and VIP baccarat revenues rising by just 0.6 percent and 0.5 percent, respectively.

Macau June GGR totals $2.60B, up 19% year-on-year — _{Macau GGR 2025}

As a result, service exports contracted by 3.4 percent, and after accounting for service imports, net service exports fell by 4.4 percent. This decline ‘dragged down Macau’s economic growth’ by 3.1 percentage points in the first quarter, the AMCM stated.

Inbound tourism strengthens, but spending weakens

Despite the challenges, Macau’s inbound tourism continued to gain momentum, with arrivals approaching pre-pandemic levels. Visitor numbers rose by 15.2 percent year-on-year to 16.3 million in the first five months of 2025, representing 95 percent of the 2019 level for the same period.

The increase was partly supported by policy enhancements introduced in early 2025, including the ‘one-trip-per-week’ and ‘multiple-entry’ travel permits. Since January 1st, permanent residents of Zhuhai have been able to apply for a ‘one-trip-per-week’ permit, allowing them to visit Macau once per calendar week, with a maximum stay of seven days per trip. Meanwhile, permanent residents and residence permit holders in Hengqin can apply for a ‘multiple-entry’ permit, enabling unlimited visits to Macau within a year, also with a maximum stay of seven days per trip.

These measures reflect a broader easing of the Individual Visit Scheme (IVS) mechanism and are expected to be extended to additional cities across the Greater Bay Area.

Macau visitor arrivals per country 2025 — _{Macau Visitor Arrivals 2025}

According to the AMCM report, visitor arrivals from mainland China—Macau’s largest source market—increased by 19.1 percent to 11.8 million, while IVS travellers rose by 23.8 percent.

Arrivals from Hong Kong and Taiwan also recorded year-on-year increases of 1.8 percent and 16.1 percent, respectively.

Macau ranked as the most satisfying destination for Chinese travelers in 1Q24

However, total visitor spending declined in the first quarter. Tourism service exports, as defined in GDP accounting, fell by 3.6 percent, in contrast to the sharp 36 percent increase recorded in the same period a year earlier. Spending on gaming services rose slightly by 1.6 percent, while non-gaming expenditure dropped by 11.7 percent.

Despite this setback, spending on non-gaming services remained 12.7 percent above 2019 levels. Still, the AMCM flagged a ‘downward adjustment’ in overall visitor spending, particularly in retail. Retail sales dropped by 15 percent year-on-year, with luxury segments such as leather goods (-24.2 percent), cosmetics (-22.3 percent), and watches and jewellery (-17.3 percent) showing the steepest declines. This was attributed to a shift toward ‘more conservative spending habits’ among tourists amid ongoing economic uncertainties.

Diversification and regional integration remain priorities

Looking ahead, the AMCM stressed the importance of ‘appropriate economic diversification’ and ‘deeper integration’ into national development strategies to ensure long-term sustainability.

Macau government’s Policy Address for Fiscal Year 2025 outlined four major infrastructure projects aimed at advancing the ‘1+4’ diversification strategy. Major initiatives include the expansion of Macau International Airport, which is expected to ‘extend the city’s international reach’ and create new momentum for integrated tourism.

The legal gap has become increasingly problematic as illegal online gambling operations have grown more sophisticated. From 2021 to May 2025, police submitted 4,234 website blocking requests to the Malaysian Communications and Multimedia Commission, with a dramatic surge in 2023 when requests reached 1,922 cases — more than five times the 373 recorded in 2021.

Gambling syndicates have adapted their strategies by recruiting social media influencers to expand their reach and attract new users. Last year, the Commercial Crime Investigation Department opened 28 investigation papers involving influencers promoting gambling sites, resulting in 27 arrests. Of these cases, 18 have been charged, while 10 remain under investigation.

The proposed legal reforms would introduce the term “remote gambling” into Malaysian law and establish significantly higher penalties. Under the amendments, players would face fines of up to RM100,000 ($21,000) and mandatory six-month jail sentences, while operators could be fined up to RM1 million ($210,000) and face 12-month prison terms.

The reforms would also grant the deputy public prosecutor and the Malaysian Communications and Multimedia Commission powers to block websites and bank transactions. Additionally, the amendments would permit electronic documents as admissible evidence in court and expand Magistrates’ Courts’ jurisdiction over gambling-related cases.

Despite extensive enforcement efforts under Operasi Dadu, a nationwide crackdown that has conducted 42,937 raids and made 59,815 arrests between 2019 and May 2025, authorities continue to struggle with outdated legal frameworks. The peak enforcement year was 2022, with 8,195 raids and 11,737 arrests, though figures have declined in subsequent years.

The Commercial Crime Investigation Department emphasized that current legal terminology creates courtroom challenges. Cases are frequently contested or dismissed due to ambiguous legislation, as the term “online gambling” does not exist in current Malaysian law.

Beyond enforcement, experts warn that online gambling has evolved into a vehicle for money laundering and corruption. The Centre to Combat Corruption and Cronyism noted that digital payment systems and weak enforcement have created opportunities for syndicates to move illicit funds, particularly during the pandemic when operations shifted online.

Cybersecurity consultancy Novem CS highlighted that illegal gambling platforms — often operated from the Philippines, Cambodia, and Malta — specifically target Malaysian users by offering Bahasa Malaysia interfaces and accepting ringgit payments. These operations use artificial intelligence and big data analytics to personalize betting experiences while employing cryptocurrencies and encrypted communications to evade detection.

The psychological impact has also raised concerns, with experts observing a rise in gambling-related mental health issues, particularly among young people, gig workers, and low-income earners. These platforms exploit psychological mechanisms similar to those found in drug addiction, using variable-ratio reinforcement schedules and gamified reward systems to hook users.

Jeacocks brings more than eight years of experience in the online gaming industry, primarily in finance, regulation and compliance. He joins Altenar after working as an independent consultant for South African iGaming brands, before which he worked as Financial Manager at African operator SportPesa.

The move follows Altenar’s receipt of a National Manufacturer licence from the Western Cape Gambling and Racing Board in December 2024, which paved the way for the company to supply its sportsbook technology to licensed operators in South Africa and other African markets.

In his role, Jeacocks will drive growth for Altenar in South Africa, where it already offers its tailored premium data providers, localised sports offering and mobile app aimed at players in the mobile-first market.

John Quaye, CFO at Altenar, said: “We are delighted to welcome Brendon to the team as he builds our on-the-ground presence in South Africa. His expertise in the market will undoubtedly help us achieve strong growth in our first year as a licensed provider in the country. He is well-positioned to forge partnerships and help us tailor our product to meet the region’s growing demand for localised sports betting solutions.”

Brendon Jeacocks, Regional Director at Altenar, added: “I’m pleased to be joining Altenar at such an exciting time for the company’s ambitions in Africa. I’m currently based in Cape Town and will serve as the local point of contact for our operations here. I look forward to helping to develop Altenar’s presence in South Africa and connecting with the rest of the industry.”

The Asian themed Prosperity Peaks retains the fan-favorite Dice Wild and Wild Reels features that have defined the series, while introducing an enhanced Jackpot Bonus that delivers more frequent and rewarding win opportunities. Players will experience the thrill of hitting Jackpots more often, adding extra excitement to every spin.

Commenting on the product launch, the company stated: “The Prosperity Peaks Link game is designed uniquely for Asia, and it’s highly anticipated when we first showcased it in recent gaming shows. We deliberately bring all the elements of fun and excitement to promote better entertainment on the gaming floor altogether.”

This initial launch in Macau marks just the beginning of Prosperity Peaks’ expansion, with additional installations coming soon to more properties across Macau and extending into other key markets.

Seaport Research Partners has revised its 2025 gross gaming revenue (GGR) forecast for Macau upwards to 7 percent year-on-year growth, citing stronger-than-expected performance in the second quarter and a positive outlook for the second half of the year, where growth could reach as high as 9 percent.

The research firm expects the reacceleration to continue into 2026 and beyond, projecting a multi-year growth trajectory for Macau that could support a compound annual EBITDA growth rate of 9 percent.

The revised projection reflects growing investor confidence in Macau’s secular recovery, even as broader concerns around China’s macroeconomic outlook and softness in the U.S. gaming market persist. In its latest gaming sector note, Seaport said that while 2025 began on a slower footing, signs of a summer pickup are now ‘bearing fruit,’ with momentum expected to carry through the rest of the year.

Vitaly Umansky, Seaport — _{Senior analyst Vitaly Umansky}

‘Q2 turned out better than expected for Macau, and investors are now shifting focus to the second half to assess the sustainability of this higher growth,’ wrote senior analyst Vitaly Umansky. He acknowledged lingering macro headwinds, including muted consumer sentiment in China and a potential slowdown in Las Vegas, but emphasized that stimulus efforts, improving visitor sentiment, and targeted marketing strategies in Macau are helping offset those pressures.

The more optimistic outlook stands in stark contrast to the Macau government’s latest estimate, which lowered its full-year GGR target to MOP228 billion ($28.2 billion)—a nearly 5 percent downward revision from its original MOP240 billion forecast. The official figure implies just 0.5 percent growth for the year, far short of earlier expectations of 5.8 percent.

Major operators show diverging trajectories

Among the major gaming operators, Seaport highlighted strong momentum for Galaxy Entertainment Group, which posted a 130-basis-point year-over-year market share gain in the second quarter. The opening of the ultra-luxury Capella hotel and the ongoing ramp-up of Galaxy Macau Phase 3 contributed to the company’s 13% increase in revenue and a 14% rise in EBITDA. Seaport expects further upside as Phase 4 is slated to open in early 2027.

Sands China was also identified as a long-term beneficiary of Macau’s growth. Although it lost an estimated 20 basis points in market share in 2Q25, the company is positioned to regain ground with the continued ramp-up of the Londoner and the reopening of the Venetian Arena. Seaport also sees Sands China benefiting from improved marketing strategies and the likely reinstatement of its dividend.

In the same investment memo, analyst notes that Melco Resorts & Entertainment delivered the strongest Macau EBITDA performance since 2019, gaining around 70 basis points of market share year-on-year, supported by operational improvements at City of Dreams and Studio City. Revenue grew 14 percent and EBITDA surged 23 percent year-on-year. Seaport continues to view Melco as undervalued, despite its recent share price gains.

Meanwhile, MGM China maintained strong momentum with over 70 basis points of quarter-on-quarter share gain—the largest among Macau operators. However, Seaport downgraded the stock to Neutral, citing limited upside after recent outperformance and growing competition targeting its elevated market share. The parent company, MGM Resorts, also received a downgrade due to softening U.S. cash flows and increasing capital expenditure in Japan and New York.

Good Morning. Better safe than sorry. A Philippine law firm has called on the country’s central bank to strengthen its proposed regulations on online gambling payments, highlighting that the current draft inadequately protects vulnerable users and primarily focuses on institutional compliance rather than addressing player-level harms. At the same time, Senator Sherwin Gatchalian warned that online lending apps are exploiting Filipinos already trapped in online gambling addiction. Meanwhile, in Macau, gaming operator Galaxy ranked top in the premium mass gaming segment, with Sands China close behind, according to Citigroup’s latest monthly table survey for July 2025.

What you need to know

A Philippine law firm has called on the country’s central bank to strengthen its proposed regulations on online gambling payments.
Galaxy tops Macau’s premium mass with 35% share, while Sands boosts its position via a new baccarat jackpot, says Citigroup’s July survey.
Digital loans are worsening online gambling addiction, says Gatchalian, urging a crackdown on abusive lenders and unlicensed apps.

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IPI casino assets transfer advances following February auction win.
Macau maintains a 50-license limit for junkets in 2026.
DigiPlus backs tighter online gaming rules amid regulatory speculation.
Lottery operator Allwyn has sold its casino assets for $122.7 million.

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This transaction generated gross proceeds of €67.7 million ($78.7 million), consisting of a €15.2 million ($17.5 million) dividend paid in June prior to the sale and €52.5 million ($61.2 million) received in July. In 2024, the German casinos generated total revenue of €126.4 million ($147.5 million).

Additionally, on July 11th, the Group accepted a bid for its casino operations in Australia, specifically the Reef Hotel Casino complex in Cairns, held through the Reef Casino Trust (RCT), in which Allwyn owns a 42 percent stake.

The expected sale proceeds from this transaction are approximately €54 million ($62.8 million). This deal is structured as an off-market cash takeover bid for RCT, with completion anticipated in the first half of 2026, pending acceptance by at least 80 percent of RCT unitholders and regulatory approvals. In 2024, Allwyn’s share of net income from RCT was €2.4 million ($2.8 million).

Allwyn operates lottery brands across Europe in Austria, Czech Republic, Greece and Cyprus, Italy, the United Kingdom, and the United States (Illinois).

Acquisition of Remaining Minority Interest in Stoiximan

On July 18th, Allwyn’s subsidiary OPAP S.A., which operates in Greece and Cyprus, announced the acquisition of the remaining 15.51 percent stake in Stoiximan from its founder-shareholders for €191.6 million ($224.5 million), on a cash-free, debt-free basis, with adjustments for net cash at closing. OPAP initially acquired an interest in Stoiximan in 2018 and subsequently increased its stake to 84.49 percent through two prior acquisitions. Stoiximan has shown strong top-line growth, achieving a 27 percent increase in gross gaming revenue (GGR) in 2024.

With this transaction, OPAP will fully own Stoiximan, aligning with Allwyn’s strategy to increase its holdings in existing operations. This acquisition enhances Allwyn’s exposure to the rapidly growing online sports betting and iGaming sectors, which complement the Group’s stable lottery operations.

The acquisition will be financed using OPAP’s cash resources and liquidity facilities, with completion expected in the third quarter of 2025, subject to approval from the Cypriot regulatory authorities.

DigiPlus backs tighter online gaming rules, addresses stock movement amid regulatory speculation

Philippines

Frank Schuengel

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July 22, 2025

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DigiPlus backs tighter online gaming rules, addresses stock movement amid regulatory speculation

Philippine-listed online gaming firm DigiPlus Interactive Corp. has expressed strong support for tighter regulations in the country’s iGaming industry, while attributing recent volatility in its share price to market speculation over pending legislation in Congress.

In a statement, DigiPlus affirmed that it welcomes “smart and balanced” rules that enhance player protection, ensure operator accountability, and preserve the economic contributions of the legal online gaming sector. The company operates several prominent platforms, including BingoPlus, ArenaPlus, and GameZone.

“We believe regulation is the path to player protection. It’s the only way to safeguard players, preserve jobs, and close the door on illegal, underground platforms that operate without any oversight,” said DigiPlus chairman Eusebio Tanco.

The company voiced support for updated legislation targeting illegal operators with harsher penalties and establishing clearer standards for advertising and promotions. DigiPlus emphasized that many of the safeguards being proposed by lawmakers and advocacy groups are already embedded in its operations.

Since November 2024, DigiPlus has implemented responsible gaming measures across its platforms, including government ID verification, age gating, deposit limits, self-exclusion options, and cooling-off periods. The company also complies with existing advertising restrictions and is adjusting its marketing practices in line with emerging government guidance.

“These measures are not reactions to regulatory pressure,” DigiPlus stated. “They are part of a multi-year strategy to build a responsible gaming ecosystem.”

Tanco said the Philippines has the opportunity to become a regional model for safe, transparent online gaming. “We are ready to work hand-in-hand with regulators, legislators, and community groups to make that vision real,” he added.

In a disclosure dated July 18th, 2025, DigiPlus responded to a letter from the Capital Markets Integrity Corporation (CMIC) regarding an unusual movement in its share price. The company attributed the fluctuation to investor speculation following the recent filing of the Online Gambling Regulatory bill and an opposing Online Gambling Prohibition bill in both chambers of Congress. These proposals, submitted since June 30th, 2025, remain in the early stages of the legislative process and have not yet been enacted into law.

“The Company remains fully operational and committed to delivering value to our customers and shareholders,” DigiPlus said in its reply. “We continue to conduct business as usual and remain confident in the long-term growth potential of the Company.”

The firm also warned policymakers about the risks of a total ban on online gaming. “The experience of other countries has shown that banning licensed platforms does not eliminate demand,” it stated. “Instead, users are pushed into unregulated black markets with no protections, no taxes, and no accountability.”

In contrast, a regulated environment can generate billions in government revenue and support over 40,000 jobs across technology, entertainment, compliance, and other fields, the company noted.

“As a homegrown company listed on the Philippine Stock Exchange and now expanding into global markets, DigiPlus stands ready to be part of the solution: protecting consumers, upholding public trust, and sustaining responsible innovation,” the company said.

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Lottery operator Allwyn International AG has announced the sale of its casino operations in Germany and agreed to the sale of its Australian operations, which are under its subsidiary, Casinos Austria International, with €105 million ($122.7 million) in gross proceeds.

Philippine-listed online gaming firm DigiPlus Interactive Corp. has expressed strong support for tighter regulations in the country’s iGaming industry, while attributing recent volatility in its share price to market speculation over pending legislation in Congress.

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