No one could dispute that gambling tourism is a growing market. When previously staid Singapore looks for not one but two iconic casino resorts it is evident that things they are a’ changing! Throughout Asia gambling is a booming industry, and frequently the countries at the centre of operations are not those whose citizens play the most. Cambodia, Viet Nam, Burma and Laos attract gamblers from Thailand and China like moths to a flame.

Gambling tourism has long been encouraged by US operators from Las Vegas to Atlantic City, Biloxi and beyond. Gaming is being incorporated into the world of entertainment to bring in the customers, and keep them on site by providing practically every type of alluring amusement. This trend to expand beyond gaming is not new and it is a concept the Las Vegas operators are betting will eventually lure the crowds to Macau. The major money there at present comes from Chinese players who may take advantage of the less seedy surroundings at the new Macau properties but will still not venture from the baccarat tables to sample a wider entertainment offering.

Away from the glitz of Las Vegas, Macau and the future Singapore, smaller countries are looking to gaming for improving both visitor numbers and tax revenues. The islands of the Northern Marianas see gambling tourism as a way to boost the local economy. Chile is in the process of licensing casinos in its provinces to attract the tourists and provide additional local funding. Cases such as these are moving forward in a well-regulated manner, but in other places things are very different. In Russia it is hoped that gamblers can be enticed to play in remote gambling enclaves by closing operations in Moscow and other cities.

The casinos on the borders on China and Thailand may attract foreign visitors but they are at best in grey areas legally and, at worst, blatantly illegal. Earnings are naturally unverifiable but it is estimated that gambling operations on the Thai border alone produce annual revenues of US$2 billion. Thai gamblers appear to be losing around US$200 million a year at casinos in Burma even though gambling is illegal in both countries. Gambling tourism in areas such as these can frequently attract money laundering activity and often goes unchallenged by the authorities.

As the global gambling industry spreads its wings in some places and retires within its shell in others, there is everything to play for in the coming year. As in any business, attracting and keeping customers is vital and there is a great deal of money riding on the ability of gaming companies to do just that, and they are increasingly being considered by international investors as a good bet for 2007. The recent takeover of the world’s leading casino company Harrah’s Entertainment Inc., by two powerful investment groups for more than US $27 billion, may be a sign of things to come. (E-01.02.07)

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