Macau's gross gaming revenue for the first quarter of 2025 did not meet the expected targets, and the government plans to strengthen industry diversification and investment guidance
The Director of Economy and Finance of Macau, Dai Jianye, stated in the Legislative Assembly meeting on Wednesday that the gross gaming revenue of Macau for the first quarter of 2025 did not meet the government's expectations and was essentially flat compared to the same period in 2024, reflecting the current lack of economic recovery momentum.
Data shows that this year's first-quarter gross gaming revenue in Macau was 57.65 billion Macau patacas, a slight increase of 0.6% year-on-year. On a monthly average, it was about 19.2 billion Macau patacas, below the government's target of 20 billion Macau patacas per month.
Dai Jianye pointed out that the lackluster growth in gaming revenue might affect the realization of the annual fiscal revenue, and there is pressure on optimistic expectations. He admitted that Macau's core industry is facing more intense international competition, and the overall economic environment is still full of uncertainties, risks, and challenges that need to be taken seriously.
Promoting diversified development, strengthening industry investment guidance
In response to the current economic dilemma, Dai Jianye emphasized that accelerating the moderate diversification of the economy remains a key direction for the government. He revealed that the government will establish an inter-departmental group led by the Economy and Finance Bureau to supervise the gaming concessionaires to fulfill their commitments related to non-gaming investments in the contracts.
In terms of investment structure, the Macau government will study and guide gaming enterprises to optimize investment directions and increase support for key industry projects in local areas and Hengqin, to promote higher quality industry integration and collaborative development.
Adjustment of positioning for six old district revitalization projects
In the field of urban renewal, Dai Jianye also mentioned that the six old district revitalization projects, managed by six gaming concessionaires, will be adjusted under the coordination of the new government.
He stated that these six projects will be led by the Economy and Finance Bureau in the future, with full support from the Social and Cultural Affairs Bureau, and the government will review the progress made over the past year with the concessionaires and re-plan the revitalization strategies.
"Our goal is to transform the six old districts into distinctive commercial circles, attracting residents and tourists for consumption and leisure, and driving regional economic development," Dai Jianye added.
Summary:
Macau's gaming revenue for the first quarter of 2025 did not meet the target, exposing the growth bottleneck brought by the dependency on a single industry. The government is accelerating the adjustment of policy directions, from urging gaming enterprises to fulfill their contracts to reshaping the development model of old districts, intending to drive the economy out of the trough through optimization of industrial structure and urban renewal. Whether diversification can truly be implemented will be key to whether Macau's economy can stabilize and rebound.
