Inside Asian Gaming

INSIDE ASIAN GAMING | February 2011 40 Policy Outlook T here seems to be only one trend in Macau’s gaming market—that is UP! Macau‘s gross casino gaming revenue reached a whopping US$23.5 billion in 2010 and is set to achieve yet another year of extraordinary growth in 2011. That is provided no other drastic policies are imposed to deliberately slow growth. Macau’s VIP baccarat revenue has remained very strong at 72% of gross casino gaming revenue. There are now at least 22 game types in Macau’s casinos, with more than 4,700 gaming tables and 14,000 slots; a ratio of 1:3. That ratio pales in comparison to the roughly 1:20 (table/slot) ratio in Las Vegas, suggesting slots (which are closely associated with the mass market) have a long way to grow in Macau. While all these are promising signs for Macau’s gaming industry, I feel that imminent danger lies ahead. Are we going the wrong way? The failure to control the explosive (and erratic) growth of Macau’s VIP gaming segment spells danger for everyone. It may consequently lead to more rounds of visa and other regulatory controls in the near future. While casino operators rejoice and take prideintheirever-increasinggamingrevenue (particularly VIP gaming share), my worry is that we are simply prolonging the pain. The ‘unstoppable’ growth of Macau’s VIP gaming segment, despite the financial crisis, is a Managing Ills in Macau’s VIP and Mass Gaming Market The inexorable rise in Macau’s gaming revenue could lead to several undesirable consequences, explains Desmond Lam