China likely to force US casino giants to exit Macau
Tensions between the United States and China seem to be escalating, with reports suggesting Beijing may force American casino giants to exit Macau—a move that could shake the global gaming industry.
The idea is reportedly being floated in response to a wave of aggressive trade policies from Washington, including the proposed forced sale of TikTok and tighter U.S. control over Panama Canal port operations, Diario as reported. Beijing has already hit back with an 84 percent retaliatory tariff after US President Donald Trump announced 125 percent duties on Chinese imports.
Macau, often referred to as the “Las Vegas of Asia,” remains the only region in China where casino gambling is legal. In 2024, the city’s gross gaming revenue (GGR) reached MOP226.8 billion (€26.4 billion), marking a 23.9 percent increase from the previous year. This growth underscores Macau’s continued dominance as the world’s largest gambling market.
Possibilities of casino showdown
Industry experts say that if Beijing were to retaliate by forcing the U.S. to divest its casino interests, the impact would be significant. Ben Lee, founder of the IGamix consultancy, warns that China may seek either a total sell-off to Chinese buyers or impose regulations restricting cash flow. So, these subsidiaries find it hard to transfer revenues back to their American parent companies. These measures would transform the operational dynamics of these firms in Macau.
However, no official steps have been taken yet. Nicholas Cheng, managing director at CreditSights, stressed that while these measures are on the table, they remain only possibilities for now.
The fact that the idea is even being discussed marks an escalation. What began as a tariff war now risks spilling into sectors not traditionally caught in geopolitical crossfire — and for Macau’s casinos, it could trigger a total meltdown.
Strong US casino presence
Three major US casino operators, Las Vegas Sands, MGM Resorts, and Wynn Resorts, maintain a significant presence in Macau, China’s sole legal gambling hub. In 2024, Macau’s gross gaming revenue (GGR) reached MOP 226.8 billion (€26.4 billion), marking a 23.9 percent increase from the previous year.
Las Vegas Sands, through its subsidiary, Sands China, generated $7.1 billion (€6.6 billion) in Macau, accounting for over 60 percent of its total revenue. Collectively, these American firms derive a substantial portion of their earnings from Macau. If China goes ahead with this move, it could mark a big blow to American companies.
