Why Is Macau Casino Capital of the World?

Why Is Macau Casino Capital of the World?

The Macau casino industry is constantly growing. There are many cities where gambling is the main reason for tourism, but Macau is one of the frequently mentioned cities in the casino news. Read below to find out why Macau is this popular among gamblers and what casinos are the most popular in the whole world.

The most advanced gamblers know that you know nothing about gambling if you haven’t been at least in one casino in Macau. This city is the capital of the gambling world. Here’re the brightest, the biggest, and the richest casinos in the whole world. How has Macau become the city that has generated more revenue from gambling than the entire state of Nevada in 2010? What is the history of this gambling city?

Macau was the first East Asian colony to be occupied by Europeans in 1557. Now, this city is the 83rd largest economy in the whole world. The nominal GDP is MOP433 billion (US$53.9 billion). Around 80% of total tax revenue comes from the gambling market. According to economy analytics, from 19 July to 25th July, the daily revenue of Macau casino was MOP257 million ($32.1 million).

The reason for such Macau’s gambling growth is China’s massive globalization. The fast-growing economy of the country made foreign multinational casinos develop there. This place attracted people from different counties, so gamblers and tourists started to travel to Macau a lot to see this with their own eyes.

The Chinese government understands the whole economic significance of this island, so it has been decided to transform this city into a special administrative region. So that’s how Macau has become one of the only cities with its own laws, another one in Hong Kong.

Start of the gambling era in Macau

The gambling market started in the 1850s. The Portuguese government created this gambling capital of the world via the legalization of the activity of this autonomous colony.

At the end of the 19th century, the government licensed the fantan houses. It was the first casino monopoly. More than 200 Chinese gambling houses had to pay a tax as rent to the authority.

The second casino monopoly concession was initiated by the Tai Heng Company in 1937.

And in 1962, the industry had big changes. The government provided the monopoly right to all kinds of gambling to Sociedade de Turismo e Diversões de Macau (STDM). This company bring western-style games and updated the marine transport between Macau and Hong Kong. It made Macau a popular place to visit for millions of gamblers from Hong Kong every year.

In 2002, the government of Macau canceled the monopoly system and created 3 casino operating concessions.

There’re 6 concessions for now:

  • Sociedade de Jogos de Macau;
  • Wynn Resorts;
  • Las Vegas Sands; 
  • Galaxy Entertainment Group;
  • the partnership of MGM Mirage and Pansy Ho Chiu-King;
  • the partnership of Melco and PBL.

The very first casino in Macau opened in the late 1960s. It’s called Casino Lisboa. We have written more information about this establishment below.

The most popular and best casinos in Macau

The Venetian Macao

It’s the largest casino in the city and the second biggest in the world. This 39-storied casino hotel is owned by the American Las Vegas Sands, one of the leaders in the gambling industry in the USA. If you want to visit one of the best gambling destinations in Asia, this place is for you. Gamblers can play over 6 000 slot machines and 800 gambling tables.

There’re 4 themed areas for customers:

  • Golden Fish;
  • Imperial House;
  • Red Dragon;
  • Phoenix.

Sands China, a subsidiary of Las Vegas Sands Corp., has been the mass market and non-gambling leader in Macau. According to the predictions, Sands China will be in one of the market-leading positions in Macau with over 1/3 of mass GGR and deliver +6% EBITDA CAGR (inclusive of the 20-21E downturn) from 2019 to 2025.

Wynn Palace

The second casino resort found by Wynn Resort (Nevada, the US) is the second-largest casino floor area worldwide. There’re 500 slots and over 350 gaming tables at the disposal of visitors.

The debut was one of the most anticipated hotel openings of 2016, however, a week after the opening critics said Wynn Palace hadn’t caused a lackluster increase in mass-market customers in Macau. But after some time Macau’s GGR grew 1.1% for the month of August to $2.4 billion. It was the first growth since May 2014. And in 2016, shares of Wynn Resort had rallied to a 52-week high.

For those who want to get unforgettable emotions this place is the right one.

City of Dreams

One of the most unusual casino resorts in the next of our top-list. It’s owned and managed by Melco Resorts & Entertainment. The gaming area in there is 420 000 sq. ft. Since the opening in 2009, there were a lot of challenges. The first thing that has made this path to total success is the location in front of the biggest rival, The Venetian Macao. 

City of Dreams has a few separate towers:

  • Grand Hyatt Macau;
  • The Countdown Hotel;
  • Morpheus;
  • Nuwa (under refurbishment).

There’re more than 1000 slots and 350 gaming tables. Moreover, one of the main peculiarities of this casino is Michelin-star restaurants.

2020 was the tough year for City of Dreams, too. The 4th quarter of 2020 showed US$321.2 million as the income. Comparing to 4Q 2019, when the income was US$759.1 million, 2020 wasn’t obviously the most successful year for land-based casinos all over the world.

Grand Lisboa

The main peculiarity of this casino is the unordinary form of the building. The architectural design of Grand Lisboa is a golden lotus. It already has become one of the greatest showplaces in Macau.

The casino area (290 000 sq. ft.) is one of the biggest in the world. More than 800 slot machines and over 200 gambling tables are waiting for visitors and gamblers in there. Most of the limits on games start from $300.

Sands Macao

Las Vegas Sands hasn’t stopped stop opening casinos in Macau, so this casino resort is the next one of the American company’s ownership.

The first variant of Sands Macao of 2004 was so different from the current design and working politics. From 2006 to 2007, this establishment went through big changes that made it one of the most popular casinos in the city. The transformation during one year has increased the number of rooms, and now there’re 289 rooms.

The casino can be visited both by high-rollers and casual players. There’re 1000 slot machines and more than 700 tables.

Number of casinos in Macau (2010-2020)

YearNumber of casinos
201033
201134
201235
201335
201434
201536
201638
201740
201841
201941
202041

The legislation sector of the Macau gambling market

The operators have to pay a tax rate, which is 35%, and two contributions of up to 2% and 3% for social and economic purposes. The tax can’t be more than 40%. Moreover, there’re also a fixed premium and a premium pre a VIP table, another table, and a slot machine. The tax for promoters is deducted from the commission.

A criminal law issue in Macau is also must be noted. There’re a few laws that must be known if you want to create a successful gambling business in Macau:

  • Law 8/96/M, of 22 July;
  • Law 9/96/M, of 22 July.

The gambling addiction issue in Macau

Since November 2011, the exclusion from gambling establishments is fully voluntary. There’s the Gaming Inspection and Coordination Bureau, where gamblers can leave their request. After that, the entering to all casinos in Macau will be closed for this person.

The Legislative Assembly also insists on the new law, which will let exclude people from the casino, if the gambler or the relatives submit a request.

The best online casino in Macau

After the pandemic year, the online gambling industry has developed so rapidly. So Macau isn’t an exception. However, the Macau government doesn’t support online casinos. There’s no licensed online casino at all. There’re a large number of games to every taste. Users have the unique opportunity to play in Asian and European games. There’s also a right to choose betting limits or live dealer format.

The most popular games in Macau:

  • pai gow;
  • sic bo;
  • Mahjong;
  • French and American roulette;
  • Spanish 21/blackjack;
  • Texas hold ‘em.

The experts advise users not to play on casino websites that are not so popular in other counties.

It’s also important to notice that the legal gambling age, like the legal age in Las Vegas, is 21. Gamblers also are not able to play in other cities in China, except Hong Kong and Macau.

Another reason Macau has become a popular tourism gambling center is its tax absence. Gamblers don’t have to pay a tax for any winning both from land-based and online operators.

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The Chinese payment system

The world’s biggest payment systems are Visa and Mastercard. But the third-largest card system is China UnionPay.

UnionPay International has more than 2400 partnerships. 180 countries and regions are allowed to accept cards.

Read more: Best iGaming Aggregators

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