Analysis from the panel data from 17 industries in Macau between 1998 and 2013 by gray correlation method shows that there is no positive backward correlation effect of the gaming industry to other industries. The forward correlation effect is weak, and the sector’s driving effect is weakening. Factors hindering the driving effect of the gaming industry include low technology, short industry chain, high labour intensity, human resource and land scarcity, etc. Based on this assessment and constraining factors, it is suggested that priority should be given to the development of industries laterally related or unrelated to gaming. Regional cooperation should be enhanced to overcome the constraints in land and human resources in order to optimise the industrial structure for moderate economic diversification.