This paper first analyzes the main causes of the continuous 26-month decline of Macao’s gaming revenue from 2014 to 2016 and the two-month low growth in 2018. It then analyzes the main challenges facing Macao’s gaming industry，including competition of casinos in neighboring countries，the economic downturn of the Mainland and the total ban on smoking in casinos. Finally，the prospect of Macao’s gaming industry in 2019 is presented based on the analyses above. The core idea of the paper is that the main cause of the serious decline in Macao’s gaming industry from 2014 to 2016 was the bursting of bubble accumulated through years of excessive lending by VIP operators. Macao’s gaming industry is still in the phase of growing，and it still has some resistance to the economic recession. Due to the competitions from the casinos of neighboring countries，the smoking ban in all casino areas and the strict control of capital outflows in the Mainland，the growth of Macao’s gaming industry will remain at a low level.