WHO BENEFITS MOST
As Beijing tightens its ban, casino industry consultants say one place that could benefit most is Macau, China’s gambling haven. Macau is the only region in China where casinos are legal.
“Macau is not seen as an overseas market, the Chinese government doesn’t care about its people gambling and losing in Macau, because basically the money is going back to China,” said IGamiX’s Lee.
Macau is the most famous gambling center in the world, leaving other gambling places behind. After being hit hard by the COVID-19 pandemic – which caused all casinos to close – now their income is starting to improve after China canceled its zero-COVID policy in early 2023.
Gambling sector revenue in Macau last year exceeded MOP$180 billion or US$22.3 billion, 62 percent of pre-pandemic revenue. By comparison, gambling revenue in the same period in Las Vegas topped US$15 billion, a record high for Nevada state revenue.
But observers say China’s efforts to crack down on gambling completely, plus raids on state officials’ parties in Macau, could scare off top gamblers.
“The VIP segment from Asia has always been a soft spot – just find a few state officials who want to party, they will then bring VIP guests to pay. If they bring more people, then the profits are huge,” said Lee, a casino industry consultant.
“With all these recent developments, I think the VIP segment can be written off as a major source of revenue in Asian casinos.
“They must refocus their gambling operations, and most importantly, they must seek additional revenue from non-gambling sectors.”
