According to the latest data from Macau, the Chinese enclave produced gaming revenue of US$6.9 billion in 2006, compared to anticipated revenue of nearly US$6.6 billion in Las Vegas. Unsurprisingly, Macau is growing at a much faster rate than the gambling capital of the United States, which may now lose its title as gambling capital of the world. Macau is sitting on the doorstep of arguably the richest global gambling market and, even when the two Singapore casinos open, is unlikely to see its leading position dented.

With predictions of gaming revenue reaching US$8 billion by the end of this year, casino development projects continue to bring billions of dollars into Macau. The government already makes 70% of its budget from gaming tax and at present operators are recouping investment costs within months rather than years. As of the end of 2006 there were 24 casinos in Macau and later this year the second Las Vegas Sands’ operation, Venetian Macau, is scheduled to open.

Visitor numbers to Macau were up 17% in 2006 to 22 million and are expected to continue upwards. There will soon be plenty of choice for gamblers as well as plenty of competition for the moguls operating now. Ho, Wynn, Adelson and the lesser known Galaxy Casino company, will be joined by other operators such as MGM Mirage and PBL Melco. All these gaming companies, and the investment banks, are betting on the future expansion of the Macau market. Whether the Las Vegas style resorts in the pipeline will attract the mega Chinese money anticipated remains to be seen. So long as the gambling is good, the possibility of empty hotel rooms and unvisited attractions may be only a minor detail. (E-01.23.07)

© Copyright 2007 CasinoCompendium



>>> return to archives
>>> return to frontpage