Macao becomes more than a gambling destination. Casinos win anyway
MACAO — If you blindfold an American tourist and throw them on the Cotai Strip in Macao, they might take one look at the Venetian hotel and the replica Eiffel Tower and think they’re in Las Vegas.
Like Las Vegas, Macau, a special administrative region of China, is transforming itself with new attractions, water parks, spas, fine dining and sports.
this week Las Vegas Sands Macao is hosting two NBA games as a return to the basketball league after a six-year absence from China. Patrick Dumont, the company’s president and chief operating officer, owns the NBA’s Dallas Mavericks and played a key role in planning the league’s return.
“I think this is great for Macau because it highlights what an amazing entertainment city Macao really is,” Dumont said in an interview with CNBC. He emphasized that tens of billions of dollars have been invested to create a world-class destination for hospitality.
“We’ve been operating here for 21 years and invested $17 billion, so the entertainment capacity here is truly tremendous,” Dumont said. “For us, the NBA just emphasizes that.”
NBA matches between Brooklyn Nets and Phoenix Suns on Friday and Sunday will be played at the Venetian Arena in Macao. Fans packed the same arena for Twice’s riveting K-pop concert last month.
Big-name events are the biggest spenders at the gaming tables, according to analysts at Citigroup, which last month raised its forecast for 2025 gross gaming revenue in Macao to $33.3 billion. These estimates represent 10% year-over-year growth and an acceleration in gaming revenue growth.
By comparison, the state of Nevada generated a record gaming revenue of $15.6 billion in 2024. American Gaming AssociationReferring to the Nevada Gaming Control Board.
But Macau’s government is determined to diversify its economy and move beyond its reputation as the gambling capital of the world.
When the six main concessionaires operating licensed casino facilities in Macao applied for the renewal of these concessions in 2022, the government received a commitment from them to invest approximately $15 billion over 10 years, with approximately 90% of them allocated to non-gaming amenities.
Wynn Resorts CEO Craig Billings said in an email to CNBC that the company’s franchise-related investments “are focused on entertainment, and as we’ve seen in many markets, including Macau, entertainment is a clear driver of visitation, and that visitation comes from both gaming customers and non-gaming customers.”
View of Macao, Macao.
Contessa Beer Machine | CNBC
At Wynn Palace in Cotai, patrons can take selfies in front of an incredible collection of F1 race cars, ride a gondola in a Bellagio-like fountain show, or dine at SW Steakhouse while watching a different theater show every 30 minutes. Wynn’s investment in food court-style dining contrasts with the famous cuisines represented from China and around the world.
Gaming executives at many companies say the demographics of visitors have changed since borders reopened after the pandemic. Young gamblers, high rollers and their spouses or children are enjoying increasingly creative and diverse entertainment.
new possibilities
MGM The result of a $7 million investment, Tria spa in Macau surprises guests with a room dedicated to real snowfall. The immersive experience pool places the guest in the middle of a virtual ocean as a violent storm approaches, and massive rain shower heads keep the water cascading downwards.
MGM China President Kenneth Feng proudly showed off the high-end suites built to reward the best and most valuable actors. He told CNBC that his entire team is committed to providing modern, refreshing design and superior service to the evolving Chinese visitor.
“These people are young and knowledgeable, and many of them come to Macau very often,” Feng said. “We need to innovate our offerings so that they are excited about coming to Macao and happy to visit our properties.”
This week, families with kids (and grandparents and “helpers,” as nannies are often called here) made their way through Melco’s Studio City, climbing atop Toy Story characters, racing to the indoor/outdoor water park, and riding the world’s only figure-8 Ferris wheel.
At City of Dreams, Melco’s sister resort down the strip, patrons young and old packed the theater for the destination show “House of Dancing Water.”
View of Macau.
Contessa Beer Machine | CNBC
At each facility, restaurants, shops, pools and clubs are connected by corridors outside the casino floors, carefully placed behind screens to block views of the gaming tables and slot machines.
Return to gambling income
The number of visitors increased by approximately 20 percent in the first half of 2025, reaching 19.2 million people. official government statistics. Golden Week, the eight-day holiday period ending on October 8, was expected to bring just 1.2 million visitors.
Despite improvements in overall entertainment, more visitors to Macao still means more gambling.
A JPMorgan analyst note published earlier this week said this year’s Golden Week will likely be Macao’s best week in five years, with casinos expected to bring in $686 million in gaming revenue in just the first five days of the holiday.
CNBC was not allowed to photograph or record the casino floor because it is prohibited by law in Macao. The special administrative region goes to great lengths to avoid provoking the Chinese government, which is strongly opposed to the promotion of gambling on the mainland.
View of Macau.
Contessa Beer Machine | CNBC
But gambling is what fuels profits and tax revenue. The Macao government collected $5.6 billion in gaming taxes in the first half of 2025; This represents a growth of approximately 1% compared to 2024. data It is seen that non-gaming expenditure per capita will decrease by approximately 13% from the first half of 2025.
Las Vegas has also invested billions of dollars in entertainment, fine dining, spas, shopping and sports. Nearly two-thirds of revenue now comes from non-gaming sources, according to the Nevada Gaming Control Board.
Of course, this is income; not profit. All those arenas, spas, pools, and lavish theaters have huge construction and maintenance costs. And it takes a lot of high-priced concert tickets to recoup the investment.
Alan Woinski, publisher of The Gaming Industry Daily Report, attributed the crash in Las Vegas to a decline in tourist demand.
“It’s pretty easy to understand that leisure is where LV Strip’s business is falling off. Can we reclaim the billions wasted on non-gaming amenities to attract non-gambling entertainment customers?” Woinski wrote on Wednesday.
Woinski says Macao is a different story: Here, special events trigger gambling.
“This month will be a good test because after Golden Week, the rest of the month is generally weak,” Woinski told CNBC.
He said the key metrics to watch are gross gaming revenue and whether the packed special events calendar for the rest of October helps deliver gaming revenue finally returning to pre-pandemic levels.
A senior casino executive, who asked not to be named for fear of retribution, said there was “no way” Macao generates the majority of non-gaming revenue. Then the possibilities can be the icing on the Baccarat cake.
— CNBC’s Jessica Golden contributed to this report.
