<p>Inbound tourism is a typical exporting sector of a travel destination whose customer base is mainly composed of non-local residents or even foreigners. Accordingly, most of a casino tax imposed by the destination is exported to gambling tourists. This study demonstrates that gaming taxation can be efficient for the destination if it is a monopoly place for casinos in surrounding regions and if its market structure is not competitive but oligopolistic within the locality. The resultant market power strengthens the destination’s ability to export local taxes to tourist customers via price hikes when the external demand for gambling is sufficiently strong and price-inelastic. This favorable result on the joint effects of casino tax and market power is proven theoretically by an economic model in our work. Such effects are confirmed empirically by significant evidence found from Macao as the world’s largest casino resort in terms of casino revenue.</p>