Macau, the world's largest gambling city and known as Las Vegas of Asia, suffered over 24 percent drop in gross domestic product (GDP) in the third quarter.

Macau's economy is reeling under pressure owing to the slowdown in China and latest cracking down on corruption. These developments have been taking a toll on the gambling industry, which is the major source of revenue for Macau. The economy contracted in five quarters in a row.

Casinos in the former Portuguese colony contribute to about two-thirds of its economy. The Chinese gambling city is losing its revenues from casino activity for the past 17 months. Chinese government's efforts to keep tabs on corruption have been scaring high-rollers.

As per Bloomberg,  the Macau's GDP fell 24.2 percent during the third quarter ending September. The economy contracted by 26.4 percent in the second quarter, according to the latest data from the government. The gambling services dropped 37 percent and tourism sector fell 15 percent.

Macau's casino revenues fell over 30 percent during the third quarter. The gambling revenues fell 32.2 percent to Macau patacas 16.4 billion ($2.05 billion). It was against the expectation of 31 percent drop. 

BBC reports that China's President Xi Jinping's efforts to curb corruption and luxury spending are preventing officials and other rich people to gamble at casinos. The anti-corruption campaign has initiated in December 2012.

China's Communist Party bars officials from participating from gambling at casinos. Until 2012 December, Chinese officials were reportedly involved in gambling at casinos in Macau.

Casinos in Macau have reinvented themselves to attract foreign tourists rather being centers for the hard-core gambling.

Gambling sector analysts predict that the present bleak situation may continue next year as well. Macau recorded rise in visits on account of China's National Day holiday week, but these were not translated to an increase in betting volume.

The gross gambling revenues in September fell 33 percent to patacas 17.1 billion (S$3.07billion) and 35.5 percent in August, according to data from Macau's Gaming Inspection and Coordination Bureau.

Gaming analysts attribute the reason for a drop in revenues to decline in VIP visits. However, the gambling activity is sustaining by support from the mass market, they said. 

Macau, a small peninsula in mainland China, it was Portuguese overseas territory until 1999 and now a special administrative region of China. The China government has allowed casinos only in Macau city.