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Macau’s foreigner-only gaming zones are beginning to show signs of movement, but their real impact on the city’s casino earnings remains very small. Experts note that these dedicated areas, created to attract international visitors, are still a minor piece of the industry’s overall income despite new data showing early gains. A recent government budget execution review revealed for the first time how much gross gaming revenue these zones generated in 2024 under the current incentive scheme.
Incentives for International Play
As made clear in the figures, the gross gaming yield in foreigner-only zones reached approximately HKD3 billion last year, resulting in about HKD150 million in levy relief for gaming operators. However, despite this, foreign gaming still only contributed about 0.17 percent of the total casino revenue in 2024, clearly indicating the extent to which Macau remains reliant on its existing clientele. These figures were made public during a Legislative Assembly meeting in January, representing the first time that the performance of foreign gaming has been made public since the introduction of the new incentives.
Under the revised gaming law, operators are allowed to receive up to a 5 percent cut in special contributions if the revenue comes from international visitors playing inside designated gaming zones. The purpose of these zones was to encourage gaming operators to make more investments in those areas of service that would appeal to foreign visitors. According to committee chairman and lawmaker Ip Sio Kai, the relief scheme is intended to help Macau reduce its reliance on a single market source, which is consistent with the overall strategy of the government to establish Macau as an international tourist and entertainment center.
Analysts See Limited Financial Weight
Despite the new data and incentives, some in the financial sector remain cautious about the real weight of these zones. An analyst from an international investment bank, who chose not to be named, told Asia Gaming Brief that the developments are moving in a positive direction but are still too small to reshape the earnings picture. The analyst pointed out that foreign players made up roughly 1 percent of total gross gaming revenue in 2025, a level that, in their view, does not significantly affect operators’ profits or drive major investment choices.
The reading suggests that while the structure is in place, the foreigner-only segment has yet to reach the kind of scale that would influence how casinos plan their long-term strategies. For now, the zones function more as a policy experiment than a central pillar of the industry’s financial health.
Call for Stronger Cultural Fit
For responsible gaming advocate Billy Song, president of the Macau Responsible Gaming Association, the challenge is not only about numbers but also about how these zones are shaped. He said that areas intended for foreigners require a more acute and focused design in order to better appeal to the people they target. Song highlighted that since these areas are for foreign visitors, they should be designed according to the cultures and preferences of the markets they target.
Song cited specific examples, such as hiring staff who speak languages like Thai or Japanese, and providing services that appeal to what these foreigners like, as ways to enhance the appeal of these areas. Song also said that the current amount of foreign gaming is about on par with previous expectations, given the current makeup of Macau’s tourism industry, which is still dominated by mainland Chinese. He also observed that many overseas tourists may still opt to gamble on the main mass-market floor instead of entering the designated zones, which limits the share of international play that qualifies for tax relief.
Tax Structure and Long-Term Goals
Macau’s gaming tax regime adds another layer to how these incentives work. Operators face an effective tax rate of 40 percent on gross gaming revenue, made up of a 35 percent direct gaming tax and 5 percent in special contributions. The levy relief tied to foreigner-only zones applies only to the special contributions portion and does not alter the core gaming tax take, as government officials have clarified.
The incentive scheme introduced in 2023, as part of the revised gaming law, was designed to encourage operators to promote their marketing activities abroad, improve international connectivity, and add variety to the tourism sector. It has been reiterated time and again by officials that this strategy is a long-term process, and it will take time for a tangible change in the tourist composition and earnings of Macau to be observed. Currently, the foreigner-only areas are being used as a first step in this long process, which is small in scale but under intense scrutiny as Macau readies its identity beyond relying on a single key market.
Source: Asia Gaming Brief (AGB)
