Serious deterioration of public order in Macao during the period prior to its return to the PRC is an issue deserving close attention. The public order issue not only has a significant impact on the stability and prosperity of Macao, but also puts the PRC's “one country, two systems” formula to the test. This paper will discuss the background of Macao's public order problems, related feelings of insecurity by residents, and the reasons behind the deterioration of public order. In short, in order to pursuit development, Macao has to sacrifice safety and tolerate the crime brought about by the gambling industry. Because of such a dilemma, Macao's public order problems cannot be thoroughly resolved.