Macao casinos see their worst year

Xi, on a visit to Macao last month, said the territory should diversify away from casinos.

"Macao is now entering into a period of consolidation," said gaming expert Ben Lee of iGamiX in Macao.

"Casinos will now have to turn to real marketing and operational efficiencies to drive profitability," he said.

Lee predicted that the slowing trend will continue into the second quarter of this year until casinos open proposed expansions, which would stimulate the industry.

Casino operators have plans to expand their operations on the Cotai Strip, a former swamp that is being reclaimed and transformed into mass-market resorts.

Macao overtook Las Vegas as the world's casino capital in terms of revenue after the sector was opened to foreign competition in 2002, and it now enjoys gambling revenues multiple times that of the city in the United States.