Uncertainty for Casinos Future in Macau

21 December 2009

Macau, China, the Las Vegas of the Far East, is looking at a very uncertain future. Fernando Chui took over the office of Macau Chief Executive today. And his orders from China are to rein in growth spurts and to come up with other ways to maintain economic expansion other than casino gambling. This comes on the heels of efforts by the Chinese government to rein in the economic boom brought about in the gambling arena.

Macau’s economic growth saw double digit growth for years following the opening of its gambling market. The arrival of Las Vegas casinos in Macau to compete with the Stanley Ho empire, sparked an economic boom. Then the government of China, worried that such growth would spark social disorder and upheaval, started to limit visas of mainland Chinese citizens wanting to travel to Macau, China’s only legal gambling district.

After a recent easing of restrictions by China, the economy started to grow again, leading the U.S. casinos to hold or plan to hold IPOs on the Hong Kong exchange to raise money to continue their development and expansion. Now with Fernando Chui taking office, the industry is waiting and watching to see what policies will be instituted toward the gambling venues.

According to recent statistics, gambling was responsible for three fourths of Macau government revenue. Gaming income for the month of October set an all time record of $1.59 billion. But the Chinese government wants to bring in more foreign money while at the same time, limiting the gambling from the mainland. Such measure have produced proposals included limiting the number of gaming tables in Macau and raising the legal age to gamble from 18 to 21.

While China is trying to limit growth in Macau’s gambling sphere, new competition for that very customer base is opening up in Asia, as evidenced by the opening of the Las Vegas Sands project in Singapore early in 2010.

Fernando Chui will hopefully realize that the gamblers, and their money, are going to go where they can play the easiest and with the least restrictions.

Related News

  • 09 December 2011

    Not Everyone Sure Online Gambling is Safe

    Nevada and in particularly Las Vegas is pushing to regulate online gambling either within the state or on a national level. Many U.S. land based casinos are already making partnerships with online gambling companies to get ready for what they hope is the inevitable passing of some kind of U.S. regulations. Not everyone however seems to be on the online gambling bandwagon.

    Read full article
  • 16 November 2006


    YAHOO NEWS By RYAN NAKASHIMA, Associated Press Writer Thu Nov 16, 12:37 AM ET LAS VEGAS – Casino executives and a poker lobby group said that they hope a change in power brought by the midterm elections will help them overturn an Internet gambling ban rushed through Congress while Republicans were still in control. MGM Mirage Inc. chief executive Terry Lanni said Wednesday that the measure is “ridiculous” because it was signed into law Oct.

    Read full article
  • 09 October 2007

    PartyGaming Puts Up "For Sale" Notice??

    PartyGaming Puts Up “For Sale” Notice??Chief Executive Officer, Mitch Gerber has reportedly announced, that the online gambling group PartyGaming is open for approaches from Las Vegas based casinos regarding a sale.The online news website FT.com reported that Garber, speaking in a one-to-one interview during the EIG 2007 i-Gaming conference in Barcelona, has announced the Gibraltar-based online gaming group is keen to entertain buyout offers from the major casinos in Las Vegas.

    Read full article