Inside Asian Gaming

inside asian gaming November 2014 20 EVOLVING MACAU The world’s six wealthiest territories per capita have been blessed with massive windfall gains of various forms, from abundant oil and gas reserves to an influx of super- wealthy tax exiles in search of glamorous second homes, and, in Macau’s case, a tremendously lucrative monopoly on legal casino gaming in China. But rather than counting on the windfall to continue in perpetuity, all are seeking to diversify their economies and protect their wealth, though Macau seems to be lagging in that effort. So what can Macau learn from the others? M acau’s economy is a one trick pony, albeit a supercharged one fed by the seemingly insatiable Chinese appetite to gamble. It’s been on a breathtaking gallop over the past decade, though it’s taken the occasional breather, including right now. But it won’t be long before it’s back at full stride, and it looks set to run strong for decades to come. As robust as the pony appears, however, there’s no guarantee it’ll generate perpetual growth despite the arguments about all that still untapped demand in China. The danger is believing Macau is the only—or even the main— game in town as far as mainland Chinese are concerned. Competing ambitious casino resorts geared to Chinese players are opening up or are on the drawing boards from Manila to Sri Lanka, Vegas to Vladivostok and Seoul to the Great Barrier Reef, and there’s a danger Macau is starting to seem passé for many increasingly affluent Chinese travelers in search of ever more exotic travel destinations. Macau’s casinos also face constant political and economic risk. A new campaign or policy reversal from Beijing could take a bite out of the market at any time, and China’s highly leveraged economy could conceivably tank, taking Macau gaming revenues with it. So, it’s prudent to diversify. The only five economies listed above Macau on the global ranking of GDP per capita have been working earnestly to lessen their reliance on their dominant industries or at least hedge for the future. The Macau government would do well to follow some of their examples. Perspective Shifts A glass monument in Liechtenstein, dubbed Two Light Prisms . The structure alters its appearance according to changing lighting conditions and the location of the observer, reflecting its surroundings but creating changes and refractions.