Macau gaming sector faces rising crime and revenue shifts

Macau is experiencing a divergence between visitor numbers and economic performance in its gaming sector. While total visits grew by 4.5 percent in July and August, reaching 8.02 million, CLSA Ltd analyst Jeffrey Kiang reports that gaming revenues are contracting. This is attributed to a shift in tourist profiles; the number of overnight visitors, who typically generate higher revenue, fell by 2.5 percent compared to the previous year. Consequently, CLSA predicts a 11 percent annual decrease in industry EBITDA for the third quarter.

Simultaneously, Macau authorities have reported a 12.3 percent increase in crimes associated with gambling during the first nine months of the year, totaling 1,951 cases. This rise is primarily driven by a 21.3 percent increase in fraud and an 11.9 percent rise in illegal currency exchange offenses. These figures follow the introduction of new legislation in October 2024 specifically targeting “illegal exchange for gambling purposes.”

Despite the rise in gambling-related offenses, general crime in the territory decreased by 0.9 percent. Notable declines include a 57.1 percent drop in kidnappings and a 29.8 percent reduction in computer crimes, which officials attribute to increased public awareness regarding fraud prevention.