Escalation of Sino-US Rivalry, Macau's Gambling Industry May Become a New Battlefield
The Sino-US trade friction continues to escalate, with confrontations in tariffs, technology, and finance becoming increasingly intense. Recent news indicates that Beijing might adopt stricter countermeasures, including pressuring American casino giants to exit the Macau market in response to Washington's recent tough policies on TikTok, the Panama Canal port operations, and more.
Macau Gambling Industry: A New Focus in the Sino-US Rivalry
As China's only legal gambling hub, often referred to as the "Las Vegas of the East," Macau's total gambling revenue (GGR) in 2024 reached 226.8 billion Macau Patacas (approximately 26.4 billion Euros), a year-on-year increase of 23.9%, firmly holding its position as the world's largest gambling market. However, as Sino-US relations deteriorate, this lucrative industry may become a new battleground between the two countries.
American casino giants dominate the Macau market, including Las Vegas Sands Corp. (under Sands China), MGM Resorts, and Wynn Resorts. Among them, Sands China's revenue in 2024 reached 7.1 billion US dollars (6.6 billion Euros), accounting for over 60% of its parent company's total revenue. If China forces American enterprises to exit, these companies' global operations could suffer significant damage.
Possible Countermeasures
Industry analysts suggest that Beijing might take the following measures to force American casinos out of the Macau market:
Forced divestiture: Require American casinos to sell their shares to Chinese enterprises, or have local Macau capital take over.
Capital flow restrictions: Through foreign exchange controls or tax policies, restrict American casinos from repatriating profits to the US.
Regulatory pressure: Tighten gambling license reviews or raise compliance requirements, increasing the operational difficulties for American entities.
Ben Lee, founder of IGamix Consulting, stated: "China might adopt gradual measures rather than direct confiscation of assets. For example, by adjusting policies to make it difficult for American enterprises to maintain operations, eventually forcing them to exit."
Macau's Economy May Be Impacted, But Remains Resilient in the Long Term
If American casinos are forced to withdraw, the Macau gambling industry might face short-term turmoil. However, Liu Benli, president of the Macau Economic Association, pointed out that Macau has ample fiscal reserves and the gambling industry has shifted from relying on VIP rooms to the mass market, enhancing its risk resistance.
Furthermore, China might encourage domestic or Asian capital (such as Malaysia's Genting Group) to take over the American casino operations, to maintain the stable development of Macau's gambling industry.
Global Gambling Industry Chain Reaction
This potential policy could not only affect Macau but also reshape the global gambling landscape. With American casino giants having a high revenue share in the Macau market, their forced exit could severely impact their stock prices and global business layouts. Meanwhile, other Asian gambling markets like Singapore and the Philippines might benefit, attracting more international capital inflow.
Conclusion: The Rivalry Continues, Macau May Become a Key Chess Piece
Currently, the Chinese government has not officially introduced related policies, but the discussion itself has shown that the Sino-US confrontation is extending from traditional trade areas to a broader range of industries. As the global gambling hub, Macau's future direction is not only crucial for the local economy but will also be an important indicator in the strategic rivalry between China and the US.
