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Daily Asia Gaming eBrief: Macau CE warns of potential fiscal revenue shortfall for 2025

AGBrief Editorial
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Daily Asia Gaming eBrief: Macau CE warns of potential fiscal revenue shortfall for 2025
Good morning. Tightening the belt. Macau’s Chief Executive, Sam Hou Fai, warned that the city’s 2025 fiscal revenue may be lower than expected due to a slow gaming industry, emphasizing the need for significant development projects to address economic challenges. Meanwhile, Melco International is expecting an asset impairment as high as HK$1 billion ($128.6 million) due to its Studio City integrated resort. The group is now projecting a net loss ranging from HK$1.5 billion ($192.2 million) to HK$1.7 billion ($218.1 million) for 2024.

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MACAU

Sam Hou Fai, Macau Chief Executive

Gaming industry slowdown threatens Macau’s 2025 revenue projections

Macau’s Chief Executive, Sam Hou Fai, cautioned that the city’s 2025 fiscal revenue may fall below expectations due to a slow start in the gaming industry, highlighting the need for major development projects to stimulate future growth, although specific revised revenue figures were not disclosed. Earlier projections estimated Macau’s gross gaming revenue (GGR) for 2025 at MOP240 billion ($29.7 billion), an increase of about 11 percent from the 2024 budget forecast of MOP216 billion.

Industry Updates

Corporate Spotlight

UU Wallet: Bridging traditional finance and Web3 flexibility

UU Wallet unveils comprehensive Digital Finance Solutions at ASEAN Gaming Summit 2025

With a strong focus on security and efficiency, UU Wallet stands out with its instant cryptocurrency exchange capabilities and globally accepted prepaid card, making it a preferred choice for those navigating the complexities of digital finance.

MEMBERSHIP | INTELLIGENCE | ASEAN | CAREERS

Play’n GO Music & MoneyGram Haas F1 Team drop the Ultimate Race Day Playlist

Kelsey Wilhelm
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Play’n GO Music & MoneyGram Haas F1 Team drop the Ultimate Race Day Playlist

Play’n GO Music has teamed up once again with the MoneyGram Haas F1 Team to bring fans the ultimate watch party playlist called Lights out & Listen Up! —just in time for the start of the 2025 season in Melbourne. 

Packed with high-energy tracks, this playlist is designed to fuel the adrenaline of motorsport enthusiasts as they watch the world’s best drivers battle it out on the track.   

Lights Out & Listen Up! blends rock, electronic, hip-hop, and pop, delivering an electrifying mix that mirrors the speed, intensity, and thrill of the sport. Featuring classic hits and modern anthems from Kasabian, Charli XCX, Sia, Chappell Roan, and more, the playlist captures the essence of high-octane competition and the passion of racing fans worldwide. 
“Music and motorsport share the same pulse—high energy, high stakes, and an unforgettable experience. This Playlist is all about bringing fans closer to that thrill, whether they’re at the track or watching from home,” said Erryn Gracey, Brand Expansion Lead at Play’n GO. 

ELA Games enters the Danish market through new strategic collaboration with RoyalCasino

Kelsey Wilhelm
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ELA Games enters the Danish market through new strategic collaboration with RoyalCasino

ELA Games, a supplier of innovative games in the iGaming industry, has partnered with RoyalCasino to enter the Danish market.

Royal Casino is Denmark’s only land-based and online casino with over 33 years of experience in the gambling industry. The Danish RoyalCasino Group operates the land-based casino in their top-rated Hotel Royal, offering Danish players an elevated gaming experience.

ELA Games’ collaboration with the prestigious Danish brand marks a significant milestone for the development studio, as they are entering the Danish market. As a result, ELA Games’ innovative content, such as hallmark titles like Cash of Gods, It’s Shark Time and Lucky Dwarfs, will be hosted on the RoyalCasino.dk platform.

David Fall, ELA Games’ Business Development Manager, commented on the partnership, “RoyalCasino is an illustrious figure in the Danish gaming scene, and we’re excited to partner with them to provide our content on their platform. RoyalCasino.dk, despite its pedigree, is a rapidly growing brand. With the various promotions prepared in tandem with this announcement, ELA Games looks forward to expanding in Denmark.”

New POGO raid in Pasay City nets 49 foreigners

Kelsey Wilhelm
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New POGO raid in Pasay City nets 49 foreigners

Raids on illegal Philippine Offshore Gaming Operators (POGOs) continue, with a recent enforcement action netting 49 foreign nationals at a commercial building in Pasay City.

The raid was conducted on March 14th by the Bureau of Immigration and the National Bureau of Investigation.

Authorities say that the individuals were operating an online scam hub under the guise of a legitimate digital services and online marketing company.

Those arrested were found to be working without proper visas, while two had ‘active derogatory records’.

Those arrested include a 29-year-old Bangladeshi under a watchlist order for alleged involvement in illegal recruitment activities. A 25-year-old Pakistani that was detained was also under an alert list order due to suspected financial fraud.

All detainees will undergo deportation and blacklisting.

All POGO activities were banned in the Philippines starting from January 1st of 2025 and authorities have pledged to eradicate all illegal POGO operations in the nation by the end of the year.

Speaking of the recent raid, Commissioner Joel Anthony Viado said that the “government will not tolerate any form of exploitation or fraudulent activity that harms our people and our economy”.

PAGCOR pledges $5.2M in financial grants to Philippine National Police Academy

Kelsey Wilhelm
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PAGCOR pledges $5.2M in financial grants to Philippine National Police Academy

The Philippine Amusement and Gaming Corporation (PAGCOR) has pledged some PHP300 million ($5.23) in financial grants to the Philippine National Police Academy (PNPA) to improve facilities and provide advanced training resources to cadets.

PAGCOR Chairman and CEO Alejandro H. Tengco made the announcement on March 14th at the 45th PNPA Alumni Homecoming celebration.

The official noted that ““While PAGCOR’s primary role is to regulate the gaming industry, we also have a responsibility to support institutions like the PNPA and the national police […] The law enforcement community has always been our top priority.”

The PHP300 million grant also covers the construction of a PNPA Alumni Association building, to serve as an admin office and dormitory. It further supports the upgrade of the PNPA’s Crime Scene Place – which serves as a training ground for forensic and investigation procedures.

It also includes the purchase of firearms training simulators and software for crime mapping and predicting policing, as well as cybercrime investigations.

“Technology is now a crucial aspect of law enforcement, and our cadets must have access to modern facilities and training innovations that will allow them to combat crime more effectively,” indicated Tengco.

The PAGCOR Chairman further noted the contributions by licensed casino foundations, which have given nearly PHP700 million ($12.21 million) to PNP-related projects since 2017, highlighting nearly PHP600 million ($10.47 million) from Newport World Resorts Foundation, a PHP40 million ($700K) donation from Bloomberry Cultural Foundation, Melco Resorts Philippines Foundation’s PHP21 million ($370K) donation and the Okada Foundation’s PHP50 million ($870K) grant.

Macau’s Chief Executive warns of potential revenue shortfall amid slow gaming start in 2025

Viviana Chan
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Macau’s Chief Executive warns of potential revenue shortfall amid slow gaming start in 2025

Macau’s Chief Executive, Sam Hou Fai, has warned that the city’s fiscal revenue for 2025 may fall short of earlier expectations due to a sluggish start for the gaming industry.

Speaking at a recent briefing following China’s “Two Sessions” meetings, the official acknowledged the economic challenges facing Macau and underscored the need for significant development projects to drive future growth.

The government did not specify how much lower the revised revenue forecast might be. Earlier projections estimated Macau’s gross gaming revenue (GGR) for 2025 at MOP240 billion ($29.7 billion), an increase of about 11 percent from the 2024 budget forecast of MOP216 billion.

The 2025 projection assumed an average monthly GGR of MOP20 billion ($2.5 billion) and estimated full-year gaming tax revenue at MOP93.1 billion ($11.64 billion). However, January’s GGR of MOP18.25 billion ($2.28 billion) and February’s MOP19.74 billion ($2.47 billion) both fell short of these expectations.

As reported by AGB, investment bank UBS has forecasted that Macau’s gaming industry will experience low single-digit growth over the next few years, with total GGR projected to increase by 3 percent year-on-year through 2025 and 2026.

UBS highlights that this growth will be primarily driven by the mass market, particularly the premium mass segment, which is expected to benefit from new hotel room supply and increased tourism initiatives. The mass gaming segment is projected to grow by 3 percent annually for both 2025 and 2026.

According to forecasts from the Macao Government Tourism Office (MGTO), visitor arrivals in 2025 are expected to reach between 38 million and 39 million, approaching 2019’s pre-pandemic levels. Macau recorded 34.93 million visitor arrivals in 2024.

macau

Structural challenges

In the same briefing, Sam acknowledged that Macau continues to face internal economic challenges, including structural issues and shifting consumption patterns. He warned that the post-pandemic recovery momentum has slowed, making fiscal revenue growth less positive than initially projected. He stressed the need to carefully assess economic trends and address internal imbalances to mitigate potential risks.

During the first plenary session of the 2025 Economic Development Commission last month, Sam admitted that Macau’s heavy reliance on the gaming industry remains a significant obstacle to economic diversification. This marked the first time the Chief Executive publicly addressed this concern, emphasizing the urgency for change.

Since taking office in December, Sam has been meeting with major associations in Macau to gather public opinions ahead of his first policy address next month. Discussions are ongoing regarding potential measures to support the city’s uneven economic recovery.

Macau gaming

Economic diversification 

To counter the potential negative impacts of economic restructuring, the top official pledged to adopt a more innovative mindset and implement stronger, practical measures to accelerate diversification. Efforts will focus on improving the business environment, fostering emerging industries, and enhancing community economic vitality.

Support for small and medium-sized enterprises (SMEs) will also be prioritized to strengthen their role in the local economy. Looking ahead, Sam emphasized the need for collaboration with various sectors to identify and develop landmark projects with significant economic impact, aiming to inject fresh momentum into Macau’s long-term growth.

Macau lawmaker calls for increased non-gaming investment amidst uneven recovery

Viviana Chan
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Macau lawmaker calls for increased non-gaming investment amidst uneven recovery

As Macau approaches the end of the three-year transition period for satellite casinos under its new gaming law, lawmaker Ngan Iek Hang is urging gaming operators to increase their investment in non-gaming projects.

macau
Macau lawmaker Ngan Iek Hang

This call comes amidst concerns about an uneven economic recovery, with non-gaming sectors lagging behind gaming revenue, and the need to evaluate the “performance” of these operators in diversifying Macau’s economy.

Ngan’s inquiry to the government concerns labor market data. According to the Statistics and Census Service, the fourth quarter of 2024 saw only 253 job vacancies within the gaming industry. Coupled with widespread shop closures and a cautious hiring atmosphere favoring versatile talent, the overall job market remains constrained.

While Macau strives for a “1+4” diversified industrial structure (referring to one dominant industry, tourism, and four emerging industries), the gaming sector remains the cornerstone, employing 18.9 percent of the workforce and significantly impacting related sectors like hospitality, catering, and entertainment.

Recognizing this, Ngan stresses the imperative for integrated tourism and leisure enterprises to bolster their non-gaming initiatives. This would drive broader industrial development, create diverse job opportunities, facilitate re-employment, and revitalize local business districts, fostering a more vibrant and diversified economy.

In alignment with the government’s push for moderate economic diversification, Ngan, a pro-government ally, requests a thorough assessment of gaming operators’ contributions. He emphasizes the need to address the limited range and quantity of new job vacancies. Specifically, he advocates for the creation of more skill-oriented, non-gaming positions, coupled with training programs to support local residents in career transitions.

Macau, Old Districts

Furthermore, Ngan inquires about the government’s plans, beyond current district revitalization projects, to incentivize gaming operators to increase local procurement and support the stability of local businesses through strategic partnerships. He seeks clarity on how the government intends to leverage these large companies to bolster the broader local economy.

Currently, Macau’s six gaming operators have been designated to revitalize six historic districts in the city as part of their non-gaming commitments under the new 10-year gaming concessions.

The districts include Lai Chi Vun Shipyard, Rua da Felicidade, the A-Ma area, Inner Harbor Piers 23 and 25, Avenida do Almeida Ribeiro, and Rua de Cinco de Outubro.

As reported previously, the revitalization efforts have shown some results, with over 1.7 million visits recorded during various performances and events from the initiative’s start in 2023 through December 2024. 

More than 750 arts and cultural events have been held, supporting over 200 cultural and creative enterprises and creating jobs for over 200 service providers.

Melco International announces possible $128.6M asset impairment due to Studio City

Nelson Moura
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Melco International announces possible $128.6M asset impairment due to Studio City

Melco International Development Limited has revealed that it anticipates recording an asset impairment of approximately HK$838 million ($107.8 million) to HK$1 billion ($128.6 million), primarily related to its Studio City integrated resort in Cotai, Macau.

The Board of Directors reported that this expected impairment will lead to an increase in the net loss for the year of approximately HK$774 million ($99.4 million) to HK$956 million ($122.5 million).

Consequently, Melco International projects a net loss ranging from HK$1.5 billion ($192.2 million) to HK$1.7 billion ($218.1 million) for 2024, compared to a net loss of HK$3.4 billion ($436.5 million) reported for 2023.

‘It is important to note that the anticipated impairment is classified as a non-cash item, meaning it will not affect the Group’s cash flow, operations, or overall liquidity’, the group underlined in its dispatch.

The impairment testing is carried out regularly in accordance with Hong Kong Financial Reporting Standards (HKFRS), with the primary reason for the impairment linked to the longer-than-expected ramp-up of operations following the opening of Studio City Phase 2.

Interestingly, under United States Generally Accepted Accounting Principles, no impairment has been recorded for Melco Resorts & Entertainment Limited, a listed subsidiary, as its impairment testing is based on long-term undiscounted cash flows.

“At this early stage, Melco International’s audited consolidated financial statements for the year ended December 31st, 2024, are still in preparation,” the Group noted.

Final figures, including the actual impairment amount, will be included in the Group’s annual results announcement, which will be published ‘in due course’.

Melco International Development Ltd is the parent company of Macau’s Melco Resorts & Entertainment, which operates City of Dreams Manila in the Philippines and City of Dreams Mediterranean in Cyprus, and is a partner in City of Dreams Sri Lanka.

Chinese man arrested for viral rumor linking singer Jay Chou to massive gambling debts

Nelson Moura
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Chinese man arrested for viral rumor linking singer Jay Chou to massive gambling debts

Chinese authorities have arrested a man under charges of using an AI-powered content generation tool to spread rumors stating that Taiwan superstar Jay Chou owed some $150 million in gambling debts to a Macau gaming operator.

Last week rumors started emerging on mainland Chinese social media platforms suggesting that a “top-tier male star” had gambled heavily in Macau for an extended period.

Speculation escalated after mainland China’s rumor mill claimed that the unidentified star had gambled heavily for seven consecutive days, incurring substantial losses totaling approximately $150 million.

It was suggested that the star had to mortgage his properties and private jets in Beijing and Shanghai to settle the debts.

Netizens began to speculate about the identity of the star, with names like Jay Chou and fellow musician Wang Feng being mentioned. However, Chou’s fans quickly dismissed the claims, citing that the artist has been in Australia for the past month, focusing on his new album and spending time with family.

On March 11th, Chou’s record label, JVR Music, issued a statement addressing the rumors. The company stated, “There was a trending search on Weibo about ‘a top-tier male star gambling heavily in Macau’ and other related news.

“Some netizens insinuated that the male star was our artiste, Jay Chou. The company hereby declares that all the content of the rumor has nothing to do with Jay Chou. Please do not spread false information.”

On the same day, the 46-year-old singer took to Instagram Stories to share photos of himself working on music and enjoying time with friends, including fellow Taiwanese musicians Alan Kuo and Gary Yang, in Australia.

He captioned the photos, “Work hard, play hard,” and previously made a special guest appearance during Taiwanese rock band Mayday’s concert in Sydney on February 22th.

Amid these developments, actor Huang Xiaoming also addressed speculation he was the alleged indebted celebrity on March 12th by posting photos of a sunset on Weibo and commenting on his location in Fujian province, where he is filming a TV series with actress Zhao Liying.

When asked in the comments if he had lost over $150 million recently, Huang responded with a quip, “Is it Happy Beans?” referencing a virtual currency used in an online game.

However, on March 14th China’s Ministry of Public Security announced that the rumor was entirely false, created by a 36-year-old man named Xu Mouqiang using an AI-powered content generation tool. 

Xu was said to have input sensational keywords into the software, resulting in a story that quickly gained traction on social media platforms, sparking heated discussions. For his actions, Xu has been sentenced to eight days of administrative detention for causing significant disruption to public order.

The false rumor also referenced a report from Global Financial Watch, which claimed irregular cross-border transactions related to the alleged gambling activities.

These details included 17 wire transfers amounting to RMB860 million ($118.8 million) directed to a casino account via offshore entities and flagged by the Macau Monetary Authority.

Daily Asia Gaming eBrief: International operators await details on Thai casino law

AGBrief Editorial
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Daily Asia Gaming eBrief: International operators await details on Thai casino law
Good morning. International operators have their sights set on Thailand, but as the legislative process drags on, even more questions are arising. The criteria for the selection of companies to operate the country’s first ‘entertainment complexes’ is still very much being formulated. But that’s not stopping teams on the ground. Meanwhile, four locations have been chosen as the nation’s potential first cities for casino development, with some being more attractive than others. And in the Philippines, the nation is working hard to maintain its non-grey list status with the FATF, pushing for better AML and compliance.

What you need to know

ASEAN Gaming Summit 2025

On the radar

AGB Intelligence

THAILAND

Thailand, International Operators waiting on final version of casino law

International operators waiting on final version of casino law

Thailand has been taking steady steps to move forward with legislation for the first legal casinos in the country. But international operators are getting a bit antsy, eager to capitalize on the new market and the opportunities it brings. A top legal expert questions what criteria will be used in selecting the bidding companies, while noting that some locations will be much more attractive than others. 

Industry Updates

Corporate Spotlight

UU Wallet: Bridging traditional finance and Web3 flexibility

UU Wallet unveils comprehensive Digital Finance Solutions at ASEAN Gaming Summit 2025

With a strong focus on security and efficiency, UU Wallet stands out with its instant cryptocurrency exchange capabilities and globally accepted prepaid card, making it a preferred choice for those navigating the complexities of digital finance.

MEMBERSHIP | INTELLIGENCE | ASEAN | CAREERS

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