How Did Macau Become the Gambling Capital of the World?

Before 1999, Macau, the gambling capital of the world, was infamous for its crime and violence due to fierce competition among casinos for VIP rooms and exclusive areas. These luxurious high-stakes sections further contributed to the city’s gambling success. Well, this couldn’t be further from the truth, as the world’s capital for gambling activities is Macau, a small city on China’s south coast, and if you’re not familiar with the industry, you’ll likely not know much about Macau.

But how did Macau rise to become the gambling capital? Take a few moments to read this casino news and discover how the former Portuguese Colony became renowned as the world’s gambling capital. 

Macau’s success story is based on globalization because of the roles played by various international online casino brands. But before we continue, let’s briefly discuss the city’s gambling history.

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Macau was formerly a Portuguese colony in the 16th century. A military coup in 1974 provided autonomy, and in 1999, the city became a Special Administrative Region (SAR) of China alongside Hong Kong. These Chinese cities, as Special Administrative Regions (SARs), are exempt from gambling laws, attracting individuals eager to learn how to play poker and other games. They have become popular gambling destinations worldwide.

Before 1999, Macau had been notorious for crimes and violence as competition for VIP rooms and private sections in casinos. These high-stake casino sections with a quality experience from other casinos are another reason for the online casino real money gambling success. 

So, what factors played important roles in Macau’s rise to success?

Two factors were key to this change in command:

International Investments in the Gambling Capital of the World

One important factor in Macau’s gambling success is China’s large-scale globalization centered around various foreign worldwide casinos. This has resulted in a massive boom from gambling and tourism as millions of people travel around the globe to this exquisite destination to try their luck at the most extensive tables.

Before this, the industry was monopolized for 40 years. Sociedade de Turismo e Diversões de Macau, SA (STDM) was the only company with a gambling license until 2002 when several international firms were granted casino licenses. This led to an influx of various multinational brands from Las Vegas, including MGM, Las Vegas Sands, and Wynn Resorts, to invest in Chinese properties. Together, these brands make huge investments in new and luxurious casino resorts in Macau.

Macau was initially a small peninsula with various islands. So, the quick construction meant the need for more land area to complete the projects. In 2010, the city’s land expanded to 29.7 square kilometers, linking Taipa, Coloane, and others, housing large casino resorts.

Target Market & Casino Revenue

The continuous presence of new casinos provides many job opportunities for Macau locals. Although this has positively impacted the economy, much credit still goes to tourism from lovers of online casino games and the huge tax income. Between 2001 and 2011, the tax income from the gambling industry grew from 40% to 81% of the city’s total tax, thanks to International investments. Rather than focus on mass market gamblers, Macau’s revenue sources are high-roller gamblers with private rooms and special VIP privileges. They Built casinos around VIP rooms and outsourced them to gambling promoters who share profits by converting wealthy gamblers. 

In 2010, Macau (aka the “Las Vegas of China” or “Monte Carlo of the East”) generated more revenue from gambling than the whole of Nevada; this includes the famous Las Vegas and other notable cities in the state. Las Vegas is home to over 75 casinos, and it holds the record for being the city with the highest number of casinos in the world. On the other hand, Macau is regarded as the world’s gambling capital, thanks to lavish, high-end decadent casinos much bigger and better than the Las Vegas casinos.

In 2013, 66% of the total casino revenue came from high-stake gamblers. However, between 2014 to 2017, the tax income decreased to 79%, with a $4.4 billion drop due to President Xi’s anti-corruption campaign. Since then, Macau has stabilized casino revenues by transitioning from the elite high-rollers to the general public.

Conclusion

A casino experience in Macau is a must for every gambler if you ever find yourself within the region. The world’s gambling capital offers the most prominent experience in casino games, players, payouts, and architecture.

If you can’t afford a trip to Greater China yet, you can prepare for it. By preparation, we mean you can start small by playing online and winning some money to go to Macau. You have access to a variety of Vegas-style gaming sessions at Slots Paradise Casino, where you can learn how to play poker and win real money.

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