A Primer on Macau - the Orient's Las Vegas

Ârecently Trump decided to sell this away as well. New
Macau's economy is based on tourism and gambling,casinos have started coming up though and it is
much like its counterparts in the US - Las Vegas andunclear at this time what the future of Atlantic City
Atlantic City. These three places, combined generatewould be.
more revenue just from gambling than the totalOverall revenue casinos dropped 2.9% compared
market cap of Bank of America and US Bankwith 2006, but the decline in slots revenue was even
combined, in fact they don't even come close.sharper at 7.2%. The smoking ban, State imposed
Here, we look at the key statistics at the "terrificadditional taxes, competition from casinos in
three" gambling hubsneighboring states and the overall economic
Âslowdown contributed to the slowdown. Despite
Las Vegasthese losses, Atlantic City generated $4.94 billion in
In Las Vegas has long been the world's gambling hub.gambling revenues in 2007, still a very strong number
High end casinos, unparalleled service and a largein the US. With new casinos coming up and the
variety of entertainment options have kept touristsclosure of the old loss-generating ones, Atlantic City
coming back to Vegas year after year. Leadingseems to be poised for a comeback. Only time will
properties include casinos run by MGM Mirage Inc.,tell.
Harrah's Entertainment Inc., Las Vegas Sands CorpMacau
and the Wynn Resorts Ltd.Gambling revenue in the enclave totaled 55.9 billion
At close to $6.5 Billion in gambling revenues in Laspatacas in 2006, which includes lottery and racing
Vegas alone and $12 billion total in the state ofrevenues although the booming bulk came from
Nevada which includes the city of Reno, a smallercasino floor.
gambling hub, it is still arguably the world's largetsThis may exceed the 6.2$billion generated by Las
gambling location, even though Macao has exceededVegas strip. Gambling revenue in the enclave totaled
Las Vegas in the last year or so as the world's55.9 billion patacas ($6.95 billion) in 2006. VIPs related
largest gambling hub.revenue was higher but the mass market was slightly
Las Vegas overall economy, which includes revenuelower.
from tourism, gambling, entertainment and a host ofAt the end of 2006, Macau had 24 casinos operating
other smaller businesses including conventions,2,762 gaming tables and 6,546 slot machines. In the
revenue has been increasing 6.5% year after yearbeginning of the year 2007, with the increase in the
and is about $110 billion now and is expected to reachgambling revenue by 22% reaching US$ 6.95 billion,
$155 billion in 2012. No other location comes evenMacau would have dethroned Las Vegas to emerge
close to that number.as the world's #1 gambling destination.
2008, however, has been slower than usual, primarilyThe success story of Macau may be due to the fact
due to the overall economic slowdown in the US duethat the visitors from the nearby areas in mainland
to the subprime mortgage crisis.China show more interest towards gambling
Atlantic Citycompared to the Americans in Las Vegas, whose
Atlantic City's has11 casinos and has been the secondpeople aren't that interested in gambling in general.
biggest gambling hub in the US for several decades.Macau, the only place in China where the gambling is
Research studies however show that 2007 will bebeing made legal is within the reach of three billion
the first year for the drop in revenue, because ofpeople which positions it well for further growth,
the tough competition in the gambling industry.much better than Las Vegas and Atlantic City. It is
Many of the old casinos that were there in thealready the world's largest gambling center by volume
Atlantic city have been shut down. The Trump Marinaand may soon become the largest by revenues as
Hotel Casino had the biggest decline $11.8 million andwell.