Macau: Asia's Answer to Vegas?
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Code :BSM0030
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Region : Macau China
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Gambling in Macau The Portuguese colonized Macau in 1557, making it the first European colony in Asia. The Portuguese legalized gambling in Macau in 1847. In 1937, the government started granting monopoly rights for all forms of gambling in Macau. Tai Xing Company became the first to be granted monopoly rights in Macau that year. The company offered only Chinese games to its clients and failed to take advantage of the full potential of gambling. In 1961, Stanley Ho, along with three business partners bid for monopoly rights to run casinos in Macau. With a bid of $410,000 and a promise to develop the island's infrastructure and to promote it as a tourist destination, their company, Sociedade de Turismo e Diversões de Macau, S.A.R.L.(STDM) won monopoly rights to all forms of gambling... Asia's Answer to Vegas? The new entrants on the Macau gambling scene believed the island's gambling market to be highly lucrative. Steve Wynn (Wynn), Chairman of Wynn Resorts, was popularly known as "Las Vegas casino king". He created the famous Mirage and Bellagio hotels in Las Vegas. After winning the gaming license in Macau, the billionaire expressed his excitement with the words, "The opportunity to be the first American company (in Macau) to do the kind of things we do there, tomake the best hotel in Asia, is so delicious that it's irresistible". Sheldon Adelson (Adelson), Chairman and CEO of Las Vegas Sands, stated, "Our proposal will provide extensive benefits to everyone in Macau and will help to energize the real estate marketin the region"... Opportunities and Challenges In 2003 Macau attracted 10 million tourists. The number of tourists rose to 16.7 million in 2004 and Macau's economy grewby a record 28%.38 With gambling banned in Mainland China and Hong Kong, Macau was the destination for people in the region who loved to gamble. In 2004, Macau overtook Atlantic City, in US, to become the second largest gaming market in the world. Macau generated $5.1 billion in gambling revenue, an increase of 34% from 2003 and approximately the same as LasVegas. Macau accomplished this in spite of 4% of the slotmachines and 40% of the tables in Las Vegas... |
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