Gambling enthusiasts know that Macau is the gambling capital of the world. You might not know about Macau if you are not familiar with the gambling sector. However, Macau was not always known as the gambling capital of the world. Las Vegas is a neon-lit city tucked in the Nevada desert.
Macau by itself generated more revenue from gambling than entire Nevada in the year 2010. It is more than Las Vegas in China , which is another famous location for gambling in the world. Macau has grown due to China’s massive globalization with international casinos, and the boom in the economy witnessed millions of people traveling to the stunning environment.
For a long while, Macau wasn’t the capital of anything, and it was often known as Asia’s Monte Carlo in the 20th century. Today it is known as the gambling capital of the world, and business tycoons play with generous amounts of cash on high-stakes games. Macau is also famous for shooting Hollywood movies.
Today Macau is known as the gambling capital, but it was not always like that as it is today. The transformation of the city into a gambling capital began in the early 1960s when Stanley Ho, one of the gambling patrons, created a perfect environment for the development of the multi-billion casino industry in Macau. Let us explore more on why Macau is called the gambling capital of the world.
A brief history of Macau
Macau never looked like a gambling hub in its history until the 1920s, when the first casino began to take form in the city. The big change came in the 60s when Stanley Ho visited the city. While Stanley set up Macau to become the gambling capital, It wasn’t until China rolled out its sleeves and brought it under the “One country, two systems” formula under Portugal’s lethargic rule.
As Portugal began to withdraw from the area and planned to hand over the rule to China, many powerful criminal groups began fighting for power. Killings and street fights flared up between the gangs, and ordinary citizens cowered as the violence spread in the city.
China had other plans, and as Portugal handed over the reins in 1999, the violence ended in the region. At that time, Macau was the only European colony in China. China started liberalizing the market and opened up the opportunities for foreign investment to transform Macau into what it is known today.
Tourists from neighboring countries started visiting Macau to invest in gambling and make quick money. Big Brands like Wynn, MGM, Las Vegas Sands, and Caesars Entertainment started setting up their casinos in Macau.
China’s own rise to economical importance produced many wealthy Chinese who could travel and enjoy expensive entertainment such as gambling. Brands began creating replicas of European and American cities to spark interest in the Orient, and they succeeded.
The Macau Experience
As the gaming capital of the world, Macau offers an experience that is definitely better than most other gaming centers. Entertainment is woven into Macau’s casinos, and you will often visit rich, pompous, cavernous, and beautifully lit venues with fountains in the center and chandeliers hanging treacherously over your heads under the weight of thousands of tiny lights.
Macau has more than 41 casinos with slot machines and table games, as well as private VIP rooms away from the hustle and bustle of the casino and reserved for the most connected gamblers the city hosts.
Venetian Macau clearly has its charm with 3,000 rooms available to guests in the city and one of the most spacious gambling halls. The casino has the famous indoor Cotai arena, which has produced all kinds of entertaining shows over the years.
Macau – Capital of the gambling world
The biggest part of Macau’s revenue does not come from the intermittent visitors who stop in the city for a causal halt. Almost 3/4th of Macau’s gambling revenue comes from high rollers and VIP players that play to bet with tons of dollars. Thousands of players from across the globe come here to make quick money from gambling.
While standard casino floors may be filled with sudden thuds and rustling of cards, private VIP lounges are more sophisticated, and the players may stake $100K per hand of baccarat. To put things in perspective, the high roller games could amount to only 1 percent of the players who visit casinos in Macau. Still, the casinos produce around $26 billion per year from gaming.
There is plenty of rich demographic who can easily bet from $250 to $450 per hand of baccarat, as reported by the brokerage firm Bernstein in 2019. However, Bernstein said that the trend was actually declining after the 2020 pandemic effect and predicted the VIP revenue to fall to 34 percent in 2022.
Casinos in Macau
There are a total of 41 casinos at present in Macau. Out of 41 casinos, 24 are located in Macau Peninsula, and 17 are there on Taipa Island, also called the Cotai Strip. Every casino has a wide variety of games to offer, including blackjack, baccarat, poker, roulette, and other slots. In addition, there are Chinese games like Sic Bo and Fan Tan.
The casinos in Macau make use of highly secure payment platforms to make payments easy for gamblers. Usually, it is challenging for casinos to get payment solutions due to strict regulations. However, Paypound offers seamless payment solutions for high-risk industries like online gaming, travel tourism, and the cannabidiol industry.
Revenue from Macau Casinos
In 2014, gaming tax revenue projected that 84% of total Macau government revenue came from taxes. In 2017 it fell to 79%. While the percentages don’t seem like a huge drop, the numbers tell a different story. In 2014, taxes generated $ 20.1 billion, which were reduced to $ 15.7 billion in 2017. That corresponds to a drop in sales of $ 4.4 billion.
This was because several Chinese elites stopped using Macau’s casinos during President Xi’s anti-corruption campaign. Since then, Macau has been less dependent on VIPs for money and has become more accessible to the general public. This stabilized the casino’s income. Beijing is also trying to turn Macau into a hub for other forms of entertainment, such as events and exhibitions, to attract new customers.
Macau has a lot to offer its visitors and gambling enthusiasts from across the world. The city hosts the world’s best casinos with entertainment and VIP lounges. It also creates live spectacles and an overall experience that demonstrates the local Macau culture and cuisines. Macau is actually the gambling capital of the world, but there is much more to explore once your visit the city as it is a blend of a variety of entertaining experiences that you can enjoy here.