Securing Global Capital: The Real Priority for Macau’s Gambling and Financial Industries

Executive Summary

While the upcoming FATF Mutual Evaluation is important for Macau's reputation, the real priority for business leaders in Macau's gambling and financial industries is gaining access to global capital markets. Compliance with international regulatory standards - including those tied to anti-money laundering and financial crime - is crucial not only for regulatory reasons but also for building trust with jurisdictions, like the U.S., that can provide the capital needed to drive Macau's economic diversification and growth. Thus, investments in compliance measures, such as sanctions screening and KYC, should be seen not as expenses but as strategic investments to secure capital and align with global financial agendas.

A longer version

As Macau prepares for its upcoming FATF Mutual Evaluation, there is heightened attention from the international community. A positive outcome from this evaluation will enhance Macau's reputation for having a well-regulated financial system that aligns with global standards on combating money laundering, terrorist financing, and proliferation financing. While such regulatory progress is important, industry leaders in Macau’s gambling and financial sectors are primarily focused on how these developments affect their ability to access global capital markets.

With the recent regulatory crackdown on junket operators, Macau's gambling industry has shifted towards a mass market model. Previously, casinos relied heavily on high-stakes players, whose wealth was typically sourced through junkets. At its peak, there were 235 licensed junkets, which collectively contributed to over 60% of Macau’s gambling revenues. However, as of 2025, Macau's government has authorized its six licensed casinos to work with no more than 24 junkets each. This shift has significant implications for the industry, pushing it to adopt a broader market focus and comply more closely with regulatory standards.

In the short term, the industry must adapt to the mass market model, targeting a wider range of clients rather than focusing on high-net-worth individuals brought in by junkets. Additionally, there will be an increased need for businesses to align with Macau’s regulatory agenda to secure access to capital, which will be critical to the city's broader economic goals. Over the long term, Macau’s government aims to diversify its economy beyond gambling, positioning the city as a regional hub for finance, healthcare, commerce, and technology - a strategy referred to as the "1+4 diversification strategy." This economic transformation will require substantial capital investment, with casinos expected to play a key role in driving growth.

To attract the necessary capital, particularly from international markets such as the United States, compliance with global regulatory standards is essential. A recent visit by a senior foreign intelligence officer from the U.S. Consulate in Hong Kong underscored the significance of the USD 20 billion investment that Macau has received over the past decade. To access similar levels of capital in the future, Macau’s political and business leadership must demonstrate clear efforts to comply with the U.S.-led regulatory agenda.

This includes actions such as improving collaboration between the Macau Financial Intelligence Unit and FinCEN, adopting risk-based approaches for client due diligence, and enhancing the monitoring of suspicious transactions. By implementing these measures, businesses in both the gambling and financial sectors will signal their alignment with international standards, which can facilitate greater access to capital.

In this context, investments in compliance -such as sanctions screening, KYC solutions and risk management systems - should be viewed as strategic investments that enhance trust with potential capital providers. Ultimately, alignment with international regulatory frameworks will be critical to Macau’s ability to secure the capital necessary to support its ongoing economic transformation and growth.

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Alexey