Xi’s anti-corruption drive brought an end to Macau’s lucrative junket industry, which enticed wealthy gamblers from China’s mainland with perks like VIP rooms and credit lines.
The city’s six casino operators managed to renew their licences in 2022 only after they pledged to invest in other sectors, with $14.9 billion earmarked for projects such as theme parks and conference venues.
Xi, who will visit Macau this week, will probably “want to see for himself what non-gaming, hard investment has eventuated”, said Ben Lee, managing partner of consultancy IGamiX.
City officials have even designated six historic areas for revitalisation — one for each concessionaire — though Lee said the operators would prefer “easy wins”, as non-gaming ventures typically bring paltry returns.
“The casinos are rational economic entities. They will only do as little as they think they can get away with.”
‘Catch the moment’
Now two years into their 10-year concessions, operators have developed a steady rhythm of concerts, conferences and sporting events, including a deal with the NBA to host pre-season games.
Aside from boosting tourism, city officials — including Macau’s next leader Sam Hou-fai — have picked a range of sectors to become new economic drivers.