Macau’s Chief Executive, Sam Hou Fai, has ruled out any retaliatory action against American casino operators, despite the ongoing trade tensions between China and the United States. Speaking at a press conference following the visit of Xia Baolong—Beijing’s top official for Hong Kong and Macau affairs—Sam said the city’s gaming industry would not be drawn into broader geopolitical disputes. His remarks were reported by Rádio Macau.
“The six gaming operators in Macau, as long as they follow Macau’s laws and conduct their activities in an orderly and lawful manner, are protected and supported by the Government of the Macau SAR,” Sam announced.
His comments come amid growing concern that US casino operators in Macau, such as those linked to Las Vegas-based firms, could face regulatory or political pressure as tensions escalate between the two superpowers.
Analyst warns of high risk for US casinos
Analysts have repeatedly warned that American casinos may be exposed to geopolitical risks. Research firm Morningstar recently downgraded its valuation of major US casino stocks, citing rising risks from international relations.
Several experts, like Ben Lee, managing partner at IGamiX Management & Consulting, suggested that American casino operators remain in a delicate position. He believes that further strain in US-China relations could increase regulatory risks or raise questions about the long-term security of licences held by US-linked firms in Macau.
Macau remains a critical market for these US giants. However, the recent designation of Macau as a “foreign adversary” by the United States has raised further uncertainty. While the implications are still unclear, Morningstar flagged the move as a potential obstacle for American operators.
Plans to reduce dependence on casinos
Despite recent signs of improvement in China-US trade talks, Morningstar and Fitch still believes that continued tensions could prompt Beijing to reconsider its support for foreign operators, potentially favouring domestic ones instead. The firm still expects Macau’s six gaming concessions to be renewed beyond 2032, but has noted the increasing risk premium.
Sam also acknowledged the difficulties Macau faces in reducing its dependence on the gaming industry, which remains the backbone of its economy. He admitted that shifting away from this model would not be easy in the years ahead.
Nevertheless, he highlighted that both President Xi Jinping and Xia Baolong have urged Macau to pursue economic diversification. As part of this initiative, the city plans to attract more foreign investment, particularly in the technology sector, and establish a new IT park.
