Beyond Gambling: Macao's Shift to Entertainment

Picture an American tourist suddenly finding themselves on the Cotai Strip in Macao. The familiar sights of the Venetian hotel or the imitation Eiffel Tower could easily mislead them to think they've landed somewhere in Las Vegas.

Much like the transformation seen in Las Vegas, Macao—a unique administrative region in China—is diversifying its appeal with new entertainment options, including water parks, luxury spas, gourmet dining, and sporting events.

Recently, Macao played host to two NBA games after a six-year hiatus from China, underscoring its growing status as a center for entertainment. Patrick Dumont, president of Las Vegas Sands and associated with NBA's Dallas Mavericks, was instrumental in reviving this collaboration with the league.

"Macao is emerging as an extraordinary entertainment hub," Dumont shared with CNBC, pointing to the massive investments transforming the city into a premier destination for hospitality.

Having invested $17 billion over 21 years, Dumont emphasizes that the newfound entertainment capacity is remarkable, with the NBA games serving as a key attraction.

The Mississauga—the Venetian Arena—will see the Brooklyn Nets face off against the Phoenix Suns this weekend. This follows a hugely popular K-pop concert by the group Twice.

Events featuring such prominent figures naturally draw premium gamblers to the tables. This trend has led Citigroup analysts to upgrade their expectations for Macao's gross gaming revenue in 2025 to $33.3 billion, citing a 10% annual growth.

In contrast, Nevada reported a record of $15.6 billion in gaming revenue for 2024, as per the Nevada Gaming Control Board.

However, Macao's government aims to reshape its economic identity, moving away from being solely a gambling powerhouse.

During the 2022 concession renewal process for the six major casino operators, the government secured pledges to funnel nearly $15 billion into non-gaming experiences over a decade, allocating approximately 90% of the investment to this sector.

In an email to CNBC, CEO Craig Billings highlighted the strategic focus on entertainment, recognizing its role in increasing visitation from both gaming and non-gaming enthusiasts.

Wynn Palace, located on the Cotai Strip, offers novel experiences like posing with an F1 car collection, enjoying a gondola ride over a fountain display reminiscent of Bellagio, or dining on exquisite cuisine while watching live theatrical performances.

Executives note evolving visitor demographics, observing a mix of younger gamblers, high-spenders, and their families engaging in the diverse entertainment offerings.

Introducing New Attractions

Macau's Tria spa is a highlight, presenting guests with an innovative snow-filled room and an immersive pool designed to simulate a stormy ocean experience.

MGM China's President Kenneth Feng took pride in showcasing the lavish suites crafted for top-tier players, emphasizing exceptional design and service for the sophisticated Chinese clientele.

"These visitors are young, discerning, and frequent," Feng remarked. "We must continually revamp our offerings to keep them engaged and delighted to return."

Currently, Macao attracts families to Melco's Studio City, where children engage with Toy Story characters or enjoy unique features like the figure-8 Ferris wheel and an indoor-outdoor waterpark.

At its sister resort, City of Dreams, audiences of all ages are drawn to watch the acclaimed "House of Dancing Water" show.

Throughout these resorts, pathways linking restaurants, shops, pools, and clubs are strategically positioned away from the gambling tables to maintain distinct boundaries.

Revisiting Gambling Revenue

Visitor numbers soared by nearly 20% in the first half of 2025, reaching 19.2 million, with the Golden Week festivities alone expected to attract 1.2 million guests.

Despite the investment in entertainment, the fact remains: increased tourism in Macao also leads to more gambling activity.

A recent analysis from JPMorgan suggested that this Golden Week could be the most profitable for Macao in five years, with gaming revenue within the first five days projected at $686 million.

Photography and videography are prohibited on the casino floors to avoid provoking the mainland Chinese government, which remains staunchly against gambling promotion.

Yet, gambling remains the primary revenue and tax source, with Macao’s government collecting $5.6 billion in gaming taxes in the first half of 2025, representing a 1% increase from 2024.

Las Vegas has embarked on a similar path, pouring billions into non-gaming attractions, which now account for approximately two-thirds of its total revenue.

However, the contrast lies in profit returns. As Woinski puts it, the expenses tied to maintaining arenas, spas, and theaters mean that generating profits from non-gaming revenue remains a challenge.

Woinski also highlighted that while Las Vegas grapples with declining leisure demand, Macao's special events are actively promoting gambling.

"This month serves as a critical test," Woinski explained, noting that post-Golden Week, maintaining gaming revenue momentum is crucial.

Key factors to monitor include overall gross gaming revenue and whether the busy events calendar in October can sustain revenue close to pre-pandemic levels.