Experts in the land-based gaming industry will tell you that it was 2007 when Macau, the only place in China where the casino industry is permitted to operate, took the mantle on itself of ‘World’s Biggest Gambling Resort’. Like so many things in this world, it was assumed by many that this was perhaps a temporary shift in power, and soon things would be back to normal. In other words, soon the neon drenched desert of Las Vegas and her surroundings would regain top spot in the gaming world. This was the assumption, and it seemed to be based on pretty good evidence. After all, Vegas herself is a classic rags to riches story – – a resort built to cater to every type of gambler, tourist, action junkie, traveler, or family that practically rose up from out of nothing to establish itself as lord among the world’s top gambling and entertainment destinations. Surely the casino conglomerates and corporations that had so much at stake here would ensure that it never lost its spot among the worlds elite? Well, those assumptions are all being challenged right now as we find that like so many things that we consume, the best gaming, it seems, is “Made In China”.
This has little to do with the mysteriously rich and wild No Limit Hold ‘Em cash games that are happening at the Starworld and other places in Macau. We hear about great sums won and lost in those games by famous poker players, but the bigger picture points us to places like Wynn Macau Ltd., the Chinese unit of Steve Wynn’s entertainment empire, which opened its 2nd resort in April of 2010. The two Wynn properties in Macau generated HK$4.42 BILLION in net revenue during 2010, compared to HK$2.07 Billion in 2009. Overall, Macau gaming companies showed net revenues of HK$21.1 Billion, which represented a 60% total increase from the previous year. Folks, the crown has been placed squarely on the head of Macau. It has outsold and outperformed its US counterpart dramatically for a little over 3 years now. While Las Vegas as a whole seems to be recovering slowly from its frighteningly fast crash, it is still nowhere near ready to compete with Macau. Even in Nevada, a state where 30% of the TOTAL STATE BUDGET is derived from gaming taxes, casino workers are being laid off because the business simply is not there. In Macau, companies like Wynn Macau Ltd are looking to build a 3rd resort.
My observation is that Macau’s rise to power in the gaming industry is no longer a curious footnote worth keeping an eye on. Macau is the real deal when in comes to casino gaming. Despite having some unique laws on regulations on different games (some poker tables can only spread certain variants of the game, for example), the corporations that have moved into Macau have done so not to enjoy an exotic vacation, but because they see Macau as the legitimate future of the casino and gaming industry. When companies like Wynn move into Macau, they have access to a domestic customer base in excess of 1 billion, AND they’re the only show in town! Unlike the United States where the majority of the almost 400 million citizens have a casino option in almost every state, if you want to gamble in China, there’s one game in town, and its Macau.
Depending on where you live or where you visit, this news may impact you in different ways. If you are a live poker tournament player or aspire to be one, expect that the tournament scene will continue to grow and expand not only out of the United States, but that it will find new life in several Asian cities, with Macau likely leading the charge. If there is ever to be a WSOP-Asia, my bet is on Macau hosting it. If the WSOP itself were ever to change locations (though I’m not saying it will), Macau would certainly have to be at the top of the list. Make no mistake about it, the gaming industry will continue to grow and thrive in Macau, particularly because it has exclusive rights within China to build and operate casinos. I don’t think that it’s necessarily a bad thing, but it will be interesting to watch Macau grow and expand as the world capital of gambling. If recent financial reports are any indication, there is much growth yet to come in Macau, and the appetite for casino-based entertainment has yet to be satisfied in China’s wildest city.