With one casino more than in 2010, Macau’s gross gaming revenue in the first three quarters of 2011 has exceeded that from the whole of last year. VIP Baccarat contributed the most, with third quarter earnings up 52% year-on-year and accounting for 73.7% of the quarter’s casino revenue. If mass market Baccarat is included the figure rises to 91.7%, with only the slot machines and Cussec (a variation of Sic-Bo) contributing a significant revenue percentage from the entire 25 betting games on offer in Macau.
In the third quarter the number of gaming tables and slot machines rose to their highest level. Total revenue from Games of Fortune for the period rose to MOP70.22 billion (US$8.76 billion), up 48.2% from 2010. Total gambling revenue, including lotteries and racing, was US$8.8 billion. Since the opening of Galaxy Entertainment’s Galaxy Macau, there are now 34 casinos operating in Macau. Under the present cap on gaming tables, in place until 2013, a maximum of 121 additional gaming tables will be allowed.
Over 80% of VIP gambling revenue in Macau is the result of around 40 junket operators bringing high-end gamblers to the casinos. According to Asia Entertainment and Resources Ltd, a major junket operator, the company believes that the reported credit squeeze in China that hit Hong Kong and US listed gaming company shares in October
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will not affect their wealthiest clients. Casino results from Golden Week at the beginning of the month appear to support the belief that gambling revenue in Macau will remain buoyant.
A recent US report suggests that widespread corruption in Macau’s gaming industry is a serious issue and that the gambling boom has been accompanied by an increase in organised crime and money laundering. The Congressional-Executive Commission has called for regulatory experts from states with gaming industries, such as Nevada, “to provide technical training and assistance to Macau authorities on how to control criminal activity.” This, the report comments, would ensure US casino owners and operators are adhering to the highest standards for the gaming industry. (E-10.18.11)
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