As geopolitical tensions between China and the U.S. continue, Macau’s Chief Executive Ho Iat Seng has made clear that the region will not impose retaliatory measures on American casino operators. This commitment comes amid growing investor concerns and worsening economic signals from the local gaming sector.
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Speaking earlier this week, Ho emphasized that U.S.-based companies such as Wynn Resorts, MGM, and Las Vegas Sands—which hold major concessions in Macau—will continue to receive “equal treatment” and legal protection. “As long as these operators comply with local regulations, they are welcome here,” he stated.
The statement is seen as an attempt to reassure international investors following a steeper-than-expected 44% drop in gross gaming revenue (GGR) in the week following Golden Week, as reported by UBS. The decline highlights a growing challenge: while Macau pushes to diversify its economy, gaming remains its fiscal backbone, still generating about 80% of government revenue.
According to analysts, the GGR drop suggests a slower-than-hoped recovery trajectory, falling below market expectations. Despite improved tourist arrivals during Golden Week, spending levels did not match projections, indicating cautious consumer behavior and economic fragility.
In this context, Macau’s strategic stability message to U.S. operators is more than political—it’s financial. With gaming taxes forming the bulk of public funding, any disruption in operations by top-tier foreign operators could strain local budgets.
By signaling continuity and openness, Macau’s leadership is aiming to balance diversification goals with pragmatic economic management, ensuring that shortfalls in projected revenue don’t trigger broader instability.
