Gambling Industry in Macau

Today, Macau’s gambling scene is at least four times the size of Las Vegas. In June 2019, Reuters reported that in just the first 5 months of the year, 33 casinos in Macau generated more than $ 3 billion - and this is seen as a relatively low number compared to previous years.

Macau, along with Hong Kong, is one of the two Special Administrative Regions in China. Gambling in Macau, made legal in the 1850s, forms a large part of the region’s economy. Revenue from gaming and gambling there exceeds 29 billion U.S. dollars. dollars. dollars in 2019. To put this in perspective, gambling revenue at one of the world’s most popular gaming centers, Las Vegas, typically reaches approximately six billion U.S. dollars. dollars. dollars annually. The majority of gambling revenue in Macau is generated from games of luck, including poker, baccarat and roulette, among others.

Macau’s gaming liberalization in 2002 was intended to make the city the world’s center for tourism, while Hong Kong became an international financial center, Lee said. That didn’t exactly happen. “Instead, Macau has become the center of China’s gambling,” Lee said. “And despite the anti -corruption campaign [in 2012] and a series of anti -gambling laws afterwards, the non -gambling revenue of casinos has never really dropped by any significant amount, remaining at almost 5% of their total income on average. "

In 2002, the Macau government ended the monopoly system and granted 3 (later 6) casino operating concessions (and subconsessions) to: Sociedade de Jogos de Macau (SJM, an 80% owned subsidiary of STDM), Wynn Resorts, Las Vegas Sands, Galaxy Entertainment Group, the partnership of MGM Mirage and Pansy Ho Chiu-king, and the partnership of Melco and PBL. On 18 May 2004, the Sands Macau casino opened near the Macau Ferry Terminal. Today, there are 16 casinos operated by STDM, and they are still important to the casino industry in Macau.

This compares with 50% in Vegas and 30% in Singapore, experts interviewed said. Macau is facing increased competition for Asian customers as the gaming industry is booming elsewhere in countries such as Japan, South Korea, and the Philippines, he said