China’s unwavering stance on banning its citizens from participating in overseas gambling continued to shape the casino landscape across Asia in 2024. This year marked the 25th anniversary of Macau’s return to Chinese administration, coinciding with a visit from President Xi Jinping, who reiterated Beijing’s commitment to Macau’s legal gambling monopoly. Meanwhile, China’s crackdown on cross-border gambling tightened, influencing casino markets beyond its borders.
President Xi’s Macau Visit Highlights the City’s Unique Status
President Xi’s visit to Macau underscored the city’s significance as China’s sole legal gambling destination. The visit was timed with the 25th anniversary of Macau’s handover from Portuguese rule, symbolising the halfway mark of its 50-year transitional autonomy under the “one country, two systems” principle.
While praising Macau’s casino industry for its “orderly and healthy” development, Xi’s remarks reminded the world of China’s strict legal framework for gambling. Macau’s position as the exclusive casino hub within China stands in stark contrast to the country’s ban on gambling in any other context, both domestically and abroad. The message was clear: Beijing values Macau’s controlled growth as a casino haven but remains resolute against any form of gambling outside its borders.
Crackdown on Cross-Border Gambling Continues
China’s campaign against overseas gambling showed no signs of slowing down. The amended criminal code that criminalises facilitating cross-border gambling, in place since 2021, continued to be enforced rigorously. Chinese diplomatic missions across Asia-Pacific issued regular warnings to citizens, urging them to steer clear of gambling activities in neighbouring countries.
Casinos in jurisdictions like Cambodia and the Philippines reported declines in VIP traffic from China. Although operators stopped short of directly linking the dip to Beijing’s policies, analysts widely attributed the trend to the combined effects of China’s crackdown and broader geopolitical uncertainties.
Regional Developments and Challenges for Asia’s Casino Markets
As China tightened its grip, casino operators in neighbouring countries sought ways to adapt to a shifting landscape.
- Thailand’s Casino Plans: Discussions on legalising casino operations in Thailand gained momentum in 2024. While some analysts predicted the industry could attract significant Chinese clientele, others warned against over-reliance on a market restricted by Beijing’s policies.
- Singapore’s Casino Initiatives: Singapore strengthened its appeal to Chinese visitors by introducing visa-free travel for mainland tourists. Resorts World Sentosa and Marina Bay Sands, the city-state’s two major casino resorts, both pursued large-scale expansions, betting on sustained interest from affluent Chinese tourists.
Macau’s Changing Casino Dynamics
Macau’s gambling industry continued to evolve in 2024. The junket sector, once a dominant force, saw its registered agents dwindle to just 18 – a dramatic fall from its heyday. Despite this, operators like Studio City found new ways to thrive in a post-junket era, focusing on mass-market gaming and diversified entertainment offerings.
The introduction of “smart tables” further transformed the gaming experience. By integrating advanced surveillance and data collection, these tables aim to boost efficiency and security. The rise of such technology demonstrates Macau’s efforts to modernise while staying within Beijing’s regulatory framework.
Global Uncertainty Impacts High-Roller Confidence
The year’s global challenges, including trade tensions and the ongoing war in Ukraine, further complicated the casino sector’s recovery. These factors, combined with China’s restrictions, likely contributed to a dip in high-roller confidence.
Nonetheless, Macau recorded a surge in visitor numbers during Lunar New Year, with nearly 900,000 tourists, predominantly from mainland China and Hong Kong, flocking to the city. This influx highlighted the enduring appeal of Macau’s gaming scene despite external pressures.
Future Prospects for the Asian Casino Market
Several major projects and developments across Asia signalled optimism for the future:
- South Korea: The Mohegan Inspire Entertainment Resort opened its doors in February, marking the Mohegan Tribal Gaming Authority’s first venture outside North America.
- The Philippines: Solaire Resort North launched in May, introducing a $1 billion casino complex in Quezon City, showcasing the Philippines’ commitment to expanding its gaming industry.
- Macau’s Expansions: Galaxy Entertainment announced plans for a new ultra-luxury hotel, while Las Vegas Sands continued its $8 billion expansion of Marina Bay Sands, targeting a 2029 completion date.
While these developments indicate growth, the shadow of China’s policies looms large. The effectiveness of new ventures will likely depend on their ability to adapt to the evolving regulatory landscape and geopolitical climate.