Macau: A Gambling Success Story

Macau is "gambling town" is every sense. Over 70 percent of all income is a direct product of gambling. All the other niceties are used strictly to entice more gamblers

This is in direct disproportion to Las Vegas where only 20 percent of resort revenue is derived directly from gambling. Merchandise, shows, bars and clubs, high-end restaurants and pricey hotel rooms provide the rest.

The Las Vegas casino industry is showing a [news/theheadlines/2008/3/10/vegas-strip-revenue-down.php|decline in income] in the current economic downturn and it seems that it is as a result of the diversification of business away from the primary concern, namely gambling. As casino management searched to find new revenue sources they left themselves open to the surges of the general economy.

Gambling builds strong
The Online Casino Advisory's gambling analyst Sherman Bradley, suggests that gambling growth, if properly exploited, may continue unaffected by the economic situation of the world. Macau clearly demonstrates this.

Bradley's view is that Las Vegas would find it more profitable to return to its roots. "The good old days of the $1 shrimp cocktail, $2 steak dinner, and comped rooms will act as effective insulation against the slumping economy."

Asian growth
In the meantime, PricewaterhouseCoopers has identified the Asia-Pacific region as the world's fastest growth market, with new casinos in Macau, Thailand and Singapore spurring an annual revenue growth of 15.2%.

By 2012 the Asia-Pacific region should account for $37.2 billion in gambling revenue, or around 24% of global gambling revenue, compared to $18.3 billion in 2007, or 16% of global gambling revenue.