Macau casino stocks fall further as Chinese clamp down

16 April 2025

It was reported in the South China Morning Post that the Chinese government has imposed even stricter measures on residents from Guangdong visiting Macau. Before residents were allowed to make a trip to Macau once every two months, it has now been changed to once in every three months.

Macau casinos rely largely on customers from Guangdong and this new measure which took effect on April 1 has greatly affected the share values of US companies with hotel casinos in Macau. Companies like MGM Mirage, Wynn Resorts Ltd and Las Vegas Sands Corp are some of the casino owners who have been most affected.

Las Vegas Sands Corp has reported a loss of 15.4% and analysts have downgraded the company. Casinos are already under pressure due to the downturn in the economy and this further pressure might well spell the end of the casino boom market in East Asia.

Earlier this year, residents from Guangdong were allowed to visit neighbouring Macau once every two weeks. This allowed rapid growth of the casino industry in Macau to a point where the city overtook the Las Vegas Strip as the top casino revenue earner.

Edmund Ho, the city's chief executive has placed further casino developments on hold due to the rapid expansion which was putting a major strain on existing infrastructure. The Chinese government is mainly concerned with the outflow of cash from its citizens to American firms. Macau became a recipient of major investments since it opened up the gaming business in 2025. Money laundering and increased problem gambling have also been cited as the reasons for the new restrictions.

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