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29 Aug 2026
The obstacles within
Macau Business Magazine | August 2026
Experts interviewed by Macau Business in both Macau and Nevada point to two defining future challenges: the integration of artificial intelligence and the intensifying demands of external regulation
Macau Business magazine l August 2026 | Special Report | When Macau outstripped Las Vegas
“Artificial intelligence and emerging technologies are poised to fundamentally reshape Macau’s gaming landscape, offering both unprecedented opportunities and complex challenges,” Professor of Economics at the University of Nevada (Reno campus)
Luo believes that “casino resorts are increasingly leveraging AI not merely as a backend tool, but as a front-facing attraction—deploying facial recognition for personalized guest services, using predictive algorithms to optimize floor layouts, and employing data analytics to tailor loyalty programs that maximize visitor spend.”
However, the graduate from the Chinese University of Hong Kong notes that “this digital transformation introduces significant regulatory hurdles. The rise of AI-driven platforms, coupled with the anonymity of cryptocurrencies and the borderless nature of online gaming, creates fertile ground for sophisticated financial crimes, money laundering, and regulatory violations.”
In response, the Macau SAR government “is expected to implement far stricter oversight, demanding greater transparency in transaction monitoring and algorithmic accountability,” adds Luo, a Nevada-based researcher who closely tracks Macau’s development.
The friction of regulatory frameworks
More than 11,000 kilometres away, Professor Ricardo Siu also identifies regulatory compliance as a paramount challenge: “Taking into consideration the contextual setting (especially from the social perspective) and the long-established business routines in Macau, I would argue that the regulatory dimension is, in reality, the most problematic (challenging) for the gaming industry.”
Siu, who completed his academic training in the United States before returning to China to complete his doctorate, believes that “the six world-class IR operators possess the corporate capability to cope with changes in the business environment, such as technological progress, shifts in visitor behavior among Gen Z and beyond, and increasing regional competition.”
However, the Professor of Business Economics at the University of Macau points out that “the improvement and enhancement of regulations made in the public interest to mitigate the potential negative impacts of the gaming industry on society and to strengthen industry integrity over time (particularly concerning social issues in Mainland China) lie outside the discretion of the IR operators.”
“While improving the regulatory framework for the gaming industry is a trend of avoidance, making radical and proactive changes to establish effective and recognized business practices by regulators may prove to be the most critical issue in the years to come,” states Siu, who stands as one of the most prominent academic voices on Macau’s economy and gaming industry.
‘Perhaps some adversity would be beneficial’
“Until Macau faces stronger competition, there is little incentive for it to diversify. Las Vegas learned this lesson the hard way. Perhaps some adversity would, in the long run, be beneficial,” David G. Schwartz, Professor and Gaming Historian at the University of Nevada, Las Vegas, tells Macau Business.
Qizhou Luo shares his colleague’s perspective, arguing that “perhaps the most formidable barrier to diversification is not external competition, but Macau itself.”
“The city’s historical over-reliance on gambling revenue—deeply entrenched within its economic DNA—has created structural inertia that makes pivoting away from gaming exceptionally difficult,” he explains from Reno, Nevada. “Compounding this challenge is Macau’s unique position within the ‘One Country, Two Systems’ framework, which creates a complex interplay between local autonomy and national policy objectives.”
Luo emphasizes that addressing this dependency requires more than mere technical upgrades: “Overcoming this dependency requires more than just technological upgrades; it demands a dual-pronged approach. A genuine internal drive from operators to reinvent their business models must be coupled with robust external regulation from both local and central authorities.”
“Fortunately, broader regional policies are aligning to support this shift; as Beijing continues to tighten capital outflow restrictions, illicit cross-border fund flows—a long-standing vulnerability for Macau’s high-roller segment—are becoming more difficult to execute. This macro-level financial governance, combined with local tech-regulation, promises to foster a more secure, compliant, and sustainably managed gaming ecosystem in the years ahead,” Luo forecasts.
Despite these hurdles, Ricardo Siu does not anticipate that Macau will lose its regional dominance to emerging Asian competitors: “Analyzing the industry’s scale, facility variety, and service quality, Macau clearly has a first-mover advantage over existing and emerging casino tourism destinations in Asia. In other words, although competition for gaming expenditure is increasing across the region, Macau’s industry is expected to remain competitive over the next decade.”
The challenge of structural transformation
“In a nutshell, given Macau’s contextual conditions, surpassing Las Vegas’ GGR is not surprising. As always, overcoming the limitations of its traditional business model and sustaining long-term growth and competitiveness will require fundamental improvements to that model,” notes Professor Siu. He maintains that “transforming the long-standing casino gaming business model, particularly by reducing reliance on the complex networks maintained by individual junket operators while increasing transparency and integrity from a regulatory perspective (public interest), will be highly challenging for these companies as they compete for gaming revenue in the market.”
“Given the deeply rooted social context and entangled business practices, re-establishing an effective and sustainable business model to support the long-term growth of the industry will require immediate action and continuous effort by IR operators,” Siu adds.
“In this process, making a reasonable and realistic trade-off between business profit and social responsibility within Macau’s unique socio-political environment represents a core challenge for the industry,” concludes the Professor of Business Economics.
The premium customer, the silver wave, the health revolution, and the experience economy
Zhonglu Zeng is the President of the Asia-Pacific Association for Gambling Studies. For over two decades, he has been studying the gaming industry through the lens of consumer behaviour, visitor demographic profiles, and macroeconomic trends. Recently, during G2E Asia 2026, he identified four powerful trends that are reshaping global tourism demand, offering key strategic insights that he now shares with the readers of Macau Business.
Trend 1 – Premium Customers Drive Growth
Trend 2 – The Silver Economy Rises
Trend 3 – Health Is the New Luxury
Trend 4 – Experiential Tourism Goes Mainstream
Strategy 1: Focus on high-value Guests (“Targeted Luxury Infrastructure, Proven Expertise, Enhanced Reputation and Alignment with Global Trends”)
Strategy 2: Develop Cognitive-Enhancing Games for visitors, especially seniors (“Gaming is not just play. Gaming is medicine. Games are therapeutic experiences disguised as entertainment”)
Strategy 3: Enhance Enjoyable & Memorable Experiences (“Macau’s IRs already have a hidden treasure — world-class art and architecture” but “there is no effective introduction. No interpretation. No story. No depth.”)
“The future belongs to those who understand: The premium customer. The silver wave. The health revolution. And the experience economy. Macau has the foundation. Now we need the vision,” concluded Prof Zhonglu Zeng.
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