Macau gambler: profile of a special player

06/25/21

Whenever people think of gambling, they will often turn their attention straight to the well-developed European market. The US also has many keen eyes checking its future growth, and the same is true for Latin America.

But in the midst of all this, it’s easy to forget Asia – particularly the Macau gambler.

Macau is known as the Vegas of the East, and for a good reason. As a special administrative region of China, it’s allowed to set its own laws compared to the Mainland. And one particular difference is how they approach gambling.

This article will take an in-depth look at the Macau gambling industry and look at the most popular games in this part of the world.

Gambling in Macau: A Historical Overview

Macau has a long history with gaming, so, unsurprisingly, the industry is vital to the state’s economy these days. But we can consider the modern era of this sector to have begun in the 1960s.

When the Tai Heng monopoly’s gaming license expired, a new monopoly was given rights to operate within the Macau gambling industry: Sociedade de Turismo e Diversões de Macao (STDM). In 1962, it opened Casino Estoril.

Through the 1970s and 1980s, STDM grew significantly in Macau.

After Portugal handed Macau back to China in 1999, the territory’s gambling landscape began to liberalize. The Macau Gaming Committee was formed in 2000 and gave three casino operating concessions two years later. In the meantime, the STDM’s monopoly license expired in 2001.

Later, the Gaming Committee chose to hand out a further three gaming concessions. And today, dozens of casino operators are part of the Macau China gambling industry.

The Macau Gambling Industry: A Regulatory Oversight

Macau’s gambling sector is thriving and attracts both foreign visitors and tourists from the Chinese Mainland alike. Today, 41 casinos operate within the administrative area. 25 are located on the peninsula itself, with a further 16 on Taipa Island.

When in Macau, players can gamble in a variety of ways. Betting on horse racing is legal, and so is wagering on sporting events.

In terms of casino games, the Macau gambler has plenty of options as well. Numerous table games, such as blackjack, roulette, and poker, are regulated. And if slot games are more their preference, they will be delighted to find out that video slot terminals exist throughout the state.

Before opening casinos in Macau, operators must receive a permit to do so. Currently, the Macau gambler can choose between the following companies:

Sociedade de Jogos de Macau (SJM) – 22 casinos;
Galaxy – 6 casinos;
The Venetian – 5 casinos;
Melco Crown – 4 casinos;
Wynn – 2 casinos;
MGM Grand Resorts – 2 casinos.

So, now you know what the Macau gambling industry regulations are like for the offline sector. But what about online gambling laws?

Well, this is where things can start to get a little confusing.

Technically speaking, online casino wagering is legal in Macau. However, the Macau Gaming Committee needs to award licenses to operators wishing to step into the digital space. At the time of writing, zero casinos have received a Macau online permit.

Horse racing and sports betting are both legal online, and each vertical has a monopoly operator where players can participate in betting for qualifying events.

How Big is Macau’s Gambling Market?

Before the COVID-19 pandemic, the Macau gambling industry was significant. In 2019, operators in the market generated the equivalent of $36.5 billion. This was actually 3.4% lower than had been the case in 2018, but – for an administrative region with a population of around 640,000 – that’s a pretty impressive figure.

With travel restrictions impacting much of the world, it’s not overly surprising that the sector struggled in 2020. For the full year, operators made around $7.57 billion between them.

For now, Macau has a long road to recovery. However, it’s already showing signs of recovering. In April 2021, for example, operators brought in $1.05 billion – a 1,014.4% increase compared to the same month in 2020. And that was with many countries still enduring travel restrictions. As arguably the casino capital of the world, the Macau gambler is vital to the local economy. In fact, gambling is even more critical to the economy than it is to Las Vegas. According to a 2018 article published by CNBC, 88% of Macau’s economic revenue derives from gambling. Comparatively, Nevada’s equivalent only gets 35% of local revenue from the same source.

Why is the Macau gambling industry so popular?

The Macau gambling industry’s liberal approach contrasts Mainland China, which strictly bans gambling – except for state-run lotteries.

Hong Kong – another Chinese special administrative region – can create its own gambling legislation. However, it has chosen not to. As such, Macau is the only part of China that regulates commercial gambling.

This naturally has an enormous appeal. In China, players who gamble risk imprisonment, state surveillance, or criminal detention. The easier option is to go to Macau to have fun without worrying about the consequences.

For international visitors, Macau holds the same appeal as Las Vegas. In much of the US, gambling is still considered taboo – though attitudes are changing. Similarly, China’s conservative approach to gambling makes Macau a tempting proposition for those looking to meet their needs without severe punishments.

What Does the Macau Gambler Like?

With such an open approach to gambling, it may seem surprising that the Macau gambler was primarily interested in Asian games before Western imports. Now, however, the market is a lot more diverse.

Table games are popular in this part of the world, as is the case in Europe. Players who visit will find a range of options, including poker, blackjack, and roulette. Payouts depend on the casino.

But there is one outlier that trumps all – baccarat. This game contributes the highest amount of casino revenue in Macau when breaking down each vertical.

Like in other parts of the world, slot machines are also popular – especially with foreign visitors.

Fan-Tan was a favorite among gamblers in Macau before other games were introduced. And to this day, you can still play it in casinos within state boundaries.

The Macau China Gambling Industry: Capital of the World for a Reason

The Macau gambling industry suffered in 2020. But considering everything that went on, that isn’t surprising. It’s on the road to recovery, though, and players will find a well-developed industry with plenty of options when they return.

For operators, the stakes – forgive our pun – are just as high. Though competitive, casinos in the state generate billions of dollars each year between them.

The Macau gambler has different tastes than European and American players, but that makes the industry all the more exciting.