Macau to review casino operators’ investment pledges as city pushes for economic diversification

Macau will review the progress made by its six casino concessionaires on investment commitments covering 2023 to 2025, Chief Executive Sam Hou Fai said on Tuesday, as the city accelerates efforts to diversify its tourism and reduce dependence on gaming.

The review will assess operators’ spending, fulfilment of social responsibilities, and compliance with contractual and legal obligations. Authorities will also press companies to deliver on major non-gaming and tourism-related projects promised during concession renewals.

Concessionaires pledged a combined MOP118.8 billion ($14.8 billion) in investment for their new 10-year licences beginning in 2023, including MOP108.7 billion for non-gaming development and overseas market expansion. Total investment obligations rose by 20% after Macau’s 2023 gross gaming revenue (GGR) exceeded MOP180 billion.

Sam said the government expects operators to “develop varied tourism projects and products” to strengthen Macau’s position as a multi-faceted destination. He declined to issue an official GGR forecast for 2026, noting the Secretary for Economy and Finance would address the matter. The government recently cut its 2025 GGR forecast by 5% to MOP228 billion ($28.43 billion) after softer-than-expected performance late last year and early this year.

Macau has collected MOP88.56 billion ($11.04 billion) in gaming tax revenue so far in 2025. Market-wide GGR for the first 10 months reached MOP205.43 billion ($25.61 billion), up 8% from a year earlier as visitor arrivals rebounded and external economic conditions stabilised.

Non-gaming investment through 2032 is expected to total $16 billion. Under Macau’s “1+4” development strategy, the city aims to build competitive sectors in medicine, technology, finance and events sectors, targeting 60% of GDP from non-gaming by 2028, up from just 16% in 2019. Sam said Macau must act swiftly, “cultivating internationally competitive new industries [and] effectively implementing the ‘1+4’ objectives.”

Tourism authorities are working to expand Macau’s appeal abroad. Maria Helena de Senna Fernandes, head of the Macao Government Tourism Office, has been promoting the city in long-haul markets across India, the Middle East, Europe and Northeast Asia. Nearly 30 million visitors arrived through September, including around 1.19 million international tourists. Macau offers “more than 400 years of East-meets-West historical heritage, side by side with state-of-the-art integrated resorts,” she said.

But industry experts say the city’s diversification targets may be too ambitious. Speaking to iGaming Business, Steve Gallaway of GMA Consulting called the 60% non-gaming GDP target “unrealistic,” adding that “gaming will still receive the majority of customer spend.” He said concessionaires should invest in “enhanced transport infrastructure, airport upgrades, monorail extensions, roads”, and expand family-friendly entertainment to broaden Macau’s appeal.