Macao’s casinos are facing their sharpest setback since reopening from COVID-19, with steeper-than-expected revenue declines in June and July rattling investors and raising fears of a prolonged slowdown in the world’s biggest gambling hub.
The slump ends 16 straight months of growth and comes as Beijing steps up efforts to stem capital outflow — taxing offshore trusts, cracking down on cross-border brokerages, and restricting outbound investments including to Hong Kong and Macao by individual residents. Those moves have dampened sentiment among high-rollers, who are particularly sensitive to financial-market volatility.
At the same time, China’s capital markets — an important barometer for big-spending gamblers — have turned sour. The MSCI China Index is down about 7% this year, making it one of the worst performers globally. As liquidity dries up and portfolios shrink, the wealth effect that typically feeds through to Macao’s premium gaming segment has weakened noticeably, igniting fears of a longer downturn.
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