Macau and the Future of GamblingPublished October 30, 2006 by OCR Editor
The Chinese territory of Macau is an example that we can learn from when trying to imagine the future of the business. News is out everywhere: Macau will overtake Las Vegas in gambling revenue by 2007. So far, this goes for land based casinos, but we believe that lessons can be drawn that would reflect on the entire Internet industry as well.
How will the current development of Macau affect the online gambling industry? We think it will.
First, the facts. Casinos have been opening up in Macau over the past several years, and more are planned for the coming years. The Sands Macau, which opened in 2004, for instance, is the largest in the world. The Wynn Macau, which opened in 2006, does not lag far behind. Not coincidentally, Las Vegas investors are behind both projects. Will Macau also become the new center for online companies? Will Americans continue their dominant role in online gambling even after the Unlawful Internet Gambling Enforcement Act goes into effect?
With the United States market playing such a major role in online gambling, the lesson we can learn from the Macau example is significant. American investors and likewise the gaming fans themselves will find a way to continue doing what they love doing. If the law forbids certain actions in the US, then surely a legal way would be found to do business elsewhere in the world. Macau, just like other places around the world, could enjoy the fruits of the industry someday soon.