Tariff Tensions Test Macau, But Gamblers Keep Playing

Despite global tariff tensions, Macau’s casinos remain stable, showing resilience in the face of international trade disputes and economic uncertainty.

The trade conflict between the U.S. and China is heating up again, and Macau’s gaming sector is feeling the ripple effects—at least on paper. A spike in bond market volatility followed the U.S. raising tariffs on Chinese goods to 145% earlier this month. Still, the actual impact on casino floors has been limited so far.

CreditSights, a financial research firm, reported a sharp jump in Macau gaming bond spreads. Sands China, for instance, saw spreads rise by as much as 137 basis points after the tariff news. But when it comes to real-world play, things are holding up. Citigroup’s research shows that betting activity in April stayed flat compared to last year. Even high-end players, often called “whales,” increased their average wagers by 2%.

Despite ongoing tariff tensions, most gamblers in Macau are not changing their habits. The region continues to attract about 73% of its visitors from mainland China, keeping the gaming sector largely insulated from direct U.S. influence. Additionally, planned upgrades—such as Sands China’s Londoner renovations and MGM’s revamped gaming areas—are expected to maintain steady foot traffic, reinforcing Macau’s resilience amid global economic challenges.

Still, some risks remain. Higher operating costs are pushing down profit margins across many casinos. While gross revenues are stable, EBITDA is under pressure. For example, Sands China’s Q1 EBITDA may fall 13% year-on-year, according to Citigroup.

For now, Macau's gaming sector looks resilient. But if political tensions grow, investors and operators may have to brace for more uncertainty—especially in the debt markets.

Read related article: President of China Refers to Macau as "Jewel of the Motherland"