Anticipated Developments in Macau's Gaming Sector for the Year of the Serpent
Macau's Chinese New Year has arrived, marking the end of the Year of the Dragon and ushering in the Year of the Snake. As the festivities unfold, let's take a peek into Macau's future with five predictions for the Special Administrative Region (SAR) in 2025.
Online Gambling Crackdown on the Horizon?
Back in 2021, Macau authorities began cracking down on junkets, companies that promote casinos and often provide transport and credit to gamblers. In response, they arrested the heads of Macau's two largest junkets. Some experts, like Steve Vickers, suggest that the authorities might soon shift their attention to online gambling. With reports indicating that former junket operators are shifting toward online gambling, this could be a likely development in the Year of the Snake.
NBA Collaboration Intensifies
The NBA's last game in China was back in October 2019, but this may change when Sand's China hosts two pre-season NBA games in 2025. The NBA is eager to strengthen its bond with China and make up for the estimated $400m loss from the Morey incident in 2019. Therefore, expect even more collaboration between the NBA and China in 2025.
Non-Gaming Expansion on the Agenda
Macau appointed its first-ever chief executive born on mainland China, Sam Hou Fai, in 2024. During his campaign, Fai was critical of the gambling sector's expansion, calling it barbaric. However, he later toned down his stance and vowed not to aim for a shrinkage or shutdown of the industry. Instead, he appears committed to carrying on the work of his predecessor in focusing on Macau's non-gaming expansion as part of a broader strategy to diversify revenue streams.
Revenue Growth to Continue
Macau's gross gaming revenue (GGR) surged in 2024, with casino GGR exceeding expectations and reaching MOP226.78bn ($28.78bn) for the full year. The Year of the Snake could see another impressive year for Macau casinos as they aim to exceed the MOP240bn ($29.95bn) target set by the government.
International Tourism Boost
Macau is actively working to attract more international visitors to combat its over-reliance on Chinese visitors. The government hopes that hosting the National Games event in November 2025 will contribute to this effort, as will Macau's role as the Culture City of East Asia in 2025. With the help of social media promotion and international media cooperation, Macau is hoping to see a significant influx of international tourists in 2025.
In the Year of the Snake, the crackdown on online gambling might be the next step for Macau authorities, following the arrests of junket heads in 2021.
The NBA is anticipated to intensify its collaboration with China in 2025, with Sand's China hosting two pre-season NBA games, as the league aims to make up for the losses from the Morey incident in 2019.
