Hong Kong and Macau are major destinations for Chinese gamblers. Both have unique laws and rules, meaning diversified gambling income streams.
Gambling in mainland China is prohibited, which means its special administrative regions have been a go-to wagering hub for some time. Macau is known as the Vegas of Asia for this reason, and receives around 34.9 million arrivals each year. Yet could it be losing steam, and could the Jockey Club-owned Hong Kong be giving it a run for first place?
Hong Kong Gambling Laws
Gambling activities in Hong Kong are overseen by the Hong Kong Jockey Club. This prestigious and closed-door society is extremely protective of the sector and runs a tight ship. They organise the racing and betting at Sha Tin Racecourse and the Happy Valley Racecourse from September to July.
In addition to this, they also operate the Mark Six Lottery, which many residents take part in. There are multiple draws each week, and it’s very much like any other national lottery. Football betting is allowed through their outlets, and there is currently legislation being discussed to allow basketball betting.
This brings a very limited selection to the table. Hong Kong does have several casino ships which take people out to international waters to gamble. These cost people around $500 a night, with food, drink and karaoke entertainment onboard.
When it comes to online casinos, many of their patrons also look internationally. There are many third-party review sites which can help find the best casino welcome bonus in Hong Kong. This allows people a way to place casino bets and play games from the convenience of a mobile device. Luckily, this is one alternative to the casino boats, which are seldom recommended.
The Gambling Sector in Macau
There are now 41 casinos in Macau, and it is, in fact, the only place in China where they exist. This makes it a haven for those in the country who want to gamble, and as the country’s economy has grown rapidly over the last 20 years, so has Macau. For a long time, its gambling was run by SJM. However, major names such as Galaxy, Sands, Melco Resorts, MGM and Wynn now have stakes in the country.
Financial Worries Abound for Macau
As recently as April 2025, Macau was sounding alarm bells about the danger of falling gambling revenue. Chief Executive Sam Hou Fai informed local legislators that should the area’s gambling revenue drop below $1.88 billion, it would risk falling into a budget deficit. This was after revenue fell short of government targets in the first quarter.
Around 80% of tax revenues come from gambling in Macau, and a shift away from this would be devastating. It is believed this fall came from an economic slowdown in China. Added to this has been the impact of tariffs from the United States. China’s biggest export city, Guangdong, is close by and has slowed down, and the yuan is weaker. This has been predicted to bring about a 10% fall in gambling revenue.
Despite this quite doleful forecast, the sector did grow. It moved from 0.6% year on year. This failure to hit the government’s prediction was followed by a recommendation from the Chinese government that the major casino companies in Macau should begin to diversify away from gambling. This may see a change in entertainment in the region, much like Las Vegas is repurposing itself as an entertainment hub.
Comparing Gambling Revenues
Despite having little choice in the way of gambling, Hong Kong seems to be raking in the profit. Its last financial year saw a turnover of $41.08 billion, signalling a 5% year-on-year rise. The amount wagered by locals also increased by 4.6%, shielding it somewhat from economic problems elsewhere.
Breaking this down, $13.45 billion was bet on horse racing by locals, up by 1% though the total bet overall on horse racing dropped a little. Football betting hit new highs, bringing in $22.17 billion and a rise of 7.83%.
Even with its lower-than-predicted forecasts, Macau is also doing extremely well. In the first half of 2025, it collected $5.6 billion in gambling taxes. Non-gaming spending per capita dropped by around 13%.
When it comes to visitors, Macau reigns supreme with 34.9 million visitor arrivals each year, rising by 24%. Not all of these will have come for Macau’s gambling, but with very little else other than business, it will have played a key part. The latest comparison of visitors for this was in 2023, when visitors to Macau for tourism outstripped Hong Kong by almost double.
The Winners and Losers
Comparing the two jurisdictions is tough as there are so many variable factors. Hong Kong has fewer choices but seems to rake in more profit. Yet the choice is at a price: Visitors must risk unlicensed offshore casino boats, operating in literal murky grey waters. Yet it is also more diversified, with more than just gambling bringing in money as a global financial hub.
Macau is a gambling mecca, providing more than anyone could ever want in a regulated environment. Yet it is beholden to the prosperity of mainland China and must diversify its economy. It has tried this: bringing in NBA games and pop concerts. How successful this will be remains to be seen, and if the troubles of Las Vegas are anything to go by, it may signal lean times ahead.
