Macau Chief Executive vows no retaliation against U.S. casino firms amid China–U.S. tensions

Macau Chief Executive Sam Hou Fai said on Tuesday that U.S.-owned casino operators will not face any retaliatory action from local authorities, despite ongoing trade tensions between China and the United States, offering reassurances to foreign investors in the world’s largest gambling hub.

“The six gaming operators in Macau, as long as they follow Macao’s laws and conduct their activities in an orderly and lawful manner, are protected and supported by the Government of the Macao SAR,” the executive said during a press conference.

The remarks follow a six-day inspection tour by Xia Baolong, the director of Hong Kong and Macau Affairs Office, and come a day after Beijing and Washington announced a 90-day truce in their trade dispute. Under the agreement, the U.S. will lower tariffs on Chinese goods to 30%, while China will reduce its levies on U.S. imports to 10%.

Half of Macau’s six licensed casino operators are controlled by U.S.-based companies, including Sands China Ltd, a subsidiary of Las Vegas Sands Corp; MGM China Holdings Ltd, majority-owned by MGM Resorts International; and Wynn Macau Ltd, owned by Wynn Resorts Ltd.

“Law-abiding companies – including those that have U.S.-based investors – had no reason to fear punitive action from the local authorities,” Hou Fai stated.

The chief executive also addressed Macau’s continued economic reliance on gaming, which remains the backbone of the city’s revenue. In the first quarter of 2025, Macau collected MOP22.20 billion ($2.78 billion) in gaming-related fiscal revenue, representing 88.4% of total government income. The city imposes an effective tax rate of 40% on casino gross gaming revenue.

“In the coming years, it will be very difficult to reverse this situation," he acknowledged, adding that efforts to diversify the economy would continue in line with central government directives.

“We have always sought to attract foreign investment, particularly in the technology sector. That is why I want to create a technology park in Macao,” he concluded.