China Built the World’s Largest Gambling City. Can It Keep Growing?
Uncertainty over Macau’s gaming licenses will stall near-term investment.
Casinos and hotels on the Cotai strip in Macau.
Photographer: Anthony Kwan/Bloomberg
Since Macau opened its doors to Las Vegas operators 16 years ago, annual revenue at the Chinese territory’s casinos has surged tenfold, to $33 billion, making it the world’s largest gaming locale. But the luck of casino operators in the former Portuguese colony—the only place where gambling is legal in China—may be running out.
The profits are still climbing and are forecast to hit a record next year, but the rate of growth is expected to slow in 2019 as well-heeled gamblers pull back amid an economic slowdown in China. New Asian hot spots such as Japan are poised to become more formidable rivals. And there’s uncertainty about how the Trump trade war will affect license reapprovals for American operators Las Vegas Sands Corp., MGM Resorts International, and Wynn Resorts Ltd., whose current Macau licenses start expiring from 2020 to 2022.