In Macau 17 casinos pay 35% of their gross gaming revenue (GGR) in direct tax to the government. This year is expected to be a record year, with the government receiving around US$2 billion, some 8.8% more than last year. In the Las Vegas area casinos saw a record October win of US$197.2 million, up 27.4% from a year ago and the fourth time in 2005 that Nevada’s casino win has topped US$1 billion in just one month.

Both Macau and Las Vegas are seeing a construction boom, rapid expansion and an image change, but this growth is not without problems. One problem likely to become more acute in Las Vegas is lack of water for the increasing numbers of residents. Las Vegas is becoming a place to live just as much as a vacation city and luxury condos are being sold before they are even built. Increasingly there is a lack of affordable housing, a problem shared by the lower paid workers in Macau.

The casino industry in both cities may be a way of life for residents but some are finding it a struggle to stay. Rental accommodation is becoming scarce and more expensive in Macau as thousands of construction workers and casino employees are needed to build and service the burgeoning casino industry. The higher wages being paid to attract the numbers needed is somewhat offset by the higher costs of living for the workers, and the operators are facing spiraling wage bills.

Las Vegas and Macau are fighting to change their past image of perceived sleaziness and present themselves as centres for entertainment with a lot more than gambling to offer. Both are heavily dependent on the tourist trade and both face increasing competition from surrounding states as well as increasing operating costs. Record profits may get less frequent but it will be a while before either loses its shine as the gambling Mecca of the west or east. (E-12.12.05)

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