Macau – Firmly The Gambling Capital Of The World!

China is firmly consolidating itself as a global superpower not only in its manufacturing and services industry but also in its gambling industry. The one trillion dollar foreign exchange reserve is manifesting itself in the form of excess income in the hands of the Chinese population. They are willing to gamble this money in the popular new gambling destination Macau.
Macau established its supremacy over Las Vegas in gambling revenues in 2007 itself. Now it is lording over the erstwhile top gambling destination by earning as much as four times its revenues. Most of the 34 casinos in Macau are owned by SJM holdings owner and billionaire Dr. Stanley Ho.
Growth Drivers Of Macau’s Gambling Industry:

• There is a lot of influx into Macau from mainland China and Hong Kong where higher savings seek higher payouts. China’s large population and its progressive standard of living are contributing tremendously to the growth.
• The low bank interest rates prevailing in China also make people turn toward more lucrative opportunities to grow money.

Signs Of The Prospering Macau Casino Industry:

• The casino and gambling industry in Macau pulled in $2.34 billion in October 2010 a 50 percent increase year on year!
• American casino owners such as Las Vegas Sands, Wynn Resorts, and MGM Mirage are focusing their attention on this region for their most plum cuts. There is no question on anybody’s mind as to where the money is and who will bail them out of the harsh recessionary waves still threatening the American shores.
• There was a 67 percent growth in revenues in the first half of the year with companies like Sands China registering over 300 percent growth in profits in the first half of the year. Sands, an American company, also own the biggest casino in Macau – The Venetian. Sands owe much of its profitability to this region, as the contribution from its US divisions is only 15 percent of its revenues.
• SJM, one of the most profitable casinos in Macau, earned more than all the casinos at the Las Vegas Strip put together! Its profits grew by over 500 percent in the third quarter of 2010!

Macau Vs. Las Vegas Casino Industry
The poor performance of casinos on the Strip sees many of them coming out of the two year recession only now. And presently they are registering paltry growth rates of two to three percent. There is no certainty that the news of bankruptcy and shutting down will not re-surface. Still, it is believed by these large and legendary casinos that they have hit rock bottom in Las Vegas. Yet, there is no clear sign of earnings headed as far northwards as the Eastern regions have promised in the near future.
Possible Rough Patches
The casino industry’s growth is highly dependant on the prosperity of the economy in which it exists and owes its growth to. Recession and unemployment can curtail its growth drastically. The Macau Government’s main source of income is gambling taxes, as gambling tourism is its main cash cow.
But so far, with such wealthy neighbors as Hong Kong and mainland China, this “Monte Carlo of the Orient” has not seen the end of the road for growth and prosperity.
China is firmly consolidating itself as a global superpower not only in its manufacturing and services industry but also in its gambling industry. The one trillion dollar foreign exchange reserve is manifesting itself in the form of excess income in the hands of the Chinese population. They are willing to gamble this money in the popular new gambling destination Macau.
Macau established its supremacy over Las Vegas in gambling revenues in 2007 itself. Now it is lording over the erstwhile top gambling destination by earning as much as four times its revenues. Most of the 34 casinos in Macau are owned by SJM holdings owner and billionaire Dr. Stanley Ho.
Growth Drivers Of Macau’s Gambling Industry:

• There is a lot of influx into Macau from mainland China and Hong Kong where higher savings seek higher payouts. China’s large population and its progressive standard of living are contributing tremendously to the growth.
• The low bank interest rates prevailing in China also make people turn toward more lucrative opportunities to grow money.

Signs Of The Prospering Macau Casino Industry:

• The casino and gambling industry in Macau pulled in $2.34 billion in October 2010 a 50 percent increase year on year!
• American casino owners such as Las Vegas Sands, Wynn Resorts, and MGM Mirage are focusing their attention on this region for their most plum cuts. There is no question on anybody’s mind as to where the money is and who will bail them out of the harsh recessionary waves still threatening the American shores.
• There was a 67 percent growth in revenues in the first half of the year with companies like Sands China registering over 300 percent growth in profits in the first half of the year. Sands, an American company, also own the biggest casino in Macau – The Venetian. Sands owe much of its profitability to this region, as the contribution from its US divisions is only 15 percent of its revenues.
• SJM, one of the most profitable casinos in Macau, earned more than all the casinos at the Las Vegas Strip put together! Its profits grew by over 500 percent in the third quarter of 2010!

Macau Vs. Las Vegas Casino Industry
The poor performance of casinos on the Strip sees many of them coming out of the two year recession only now. And presently they are registering paltry growth rates of two to three percent. There is no certainty that the news of bankruptcy and shutting down will not re-surface. Still, it is believed by these large and legendary casinos that they have hit rock bottom in Las Vegas. Yet, there is no clear sign of earnings headed as far northwards as the Eastern regions have promised in the near future.
Possible Rough Patches
The casino industry’s growth is highly dependant on the prosperity of the economy in which it exists and owes its growth to. Recession and unemployment can curtail its growth drastically. The Macau Government’s main source of income is gambling taxes, as gambling tourism is its main cash cow.
But so far, with such wealthy neighbors as Hong Kong and mainland China, this “Monte Carlo of the Orient” has not seen the end of the road for growth and prosperity.