Analysts warn US-China tensions could affect SAR’s gaming industry

The ongoing friction between China and the United States over issues like TikTok and the Panama Canal ports could spill over into Macau’s gaming industry, experts have warned.

According to Ben Lee, founder of gaming consultancy IGamiX Management & Consulting Ltd, if China adopts retaliatory measures similar to those it has taken in other sectors, U.S.-based casino operators in Macau could face pressure to sell their properties to Chinese investors.

As cited in a report by Lusa, Lee speculates that should Washington follow through on its threats to delist Chinese companies from U.S. stock exchanges, China could intensify its strategy, possibly forcing American casino giants to part ways with their lucrative operations in Macau.

The territory’s gaming industry, which relies heavily on international investors, could see major changes if such an escalation occurs.

Despite concerns, experts like Nicholas Chen, an executive at CreditSights, maintain that the Macau government is unlikely to take drastic actions against U.S. casino operators.

“There has been no indication from the Macau or Chinese governments that they intend to target U.S.-based gaming companies for national security reasons,” Chen noted.

However, he did express concerns over the U.S. decision to label Macau as a “foreign adversary” earlier this year, which could lead to restrictions on investments.

Vitaly Umansky, a senior analyst at Seaport Research Partners, also downplays the threat to Macau, arguing that China has much larger targets in the technology and healthcare sectors. “Macau’s gaming industry is unlikely to be a priority for China, especially compared to other industries where they’ve already taken action,” Umansky said.

The issue of foreign investment in Macau’s gaming sector has come into sharper focus with the introduction of new concessions in 2023. While operators have committed to investing billions in non-gaming initiatives, experts say the potential for trade disputes could delay or reshape these plans. Staff Reporter