Academics in Macau are urging Beijing to legalize gambling on the Chinese mainland in order to prevent the loss of revenue to neighboring Asia-Pacific nations.

Two Macau-based academics – Macau Polytechnic Institute professor Li Sheng and Institute for Tourism Studies assistant professor Weibing Zhao – have published an article in which they argue that Macau’s gaming industry cannot hope to meet the demands of mainland Chinese gamblers.

The article, titled Strategic Destination Management in the Face of Foreign Competition, says Chinese citizens spend a total of around US $161b on gambling per year. Even before Macau’s gaming industry underwent its current revenue slump, its peak annual gaming revenue haul accounted for only about one-quarter of this total.

The academics say Macau’s inability to cope with this demand has led to the recent “mushrooming” of casinos across the Asia-Pacific region, “particularly near the Chinese border.” The article notes that many of these other jurisdictions “restrict or prohibit their citizens from entering casinos, showing an overt intention to earn money from foreigners,” with a clear preference for Chinese gamblers.