Macau keeps gambling destination top spot despite competition (08 Jun 2011)

Macau keeps gambling destination top spot despite competition
By Roland Lim | Posted: 08 June 2011 1126 hrs

HONG KONG: Singapore looks set to overtake Las Vegas as the world's second biggest gaming hub as early as this year.

According to the American Gaming Association, Singapore has emerged as Asia's hottest gambling destination after opening two integrated resorts just last year.

It expects Singapore to rake in 25 per cent year-on-year growth in gross gaming revenues this year - while Macau still leads the pack with over 40 per cent growth.

Despite competition from Singapore and other regional destinations, Macau isn't expected to lose its shine as the region's top gambling destination.

That's because the city boasts the highest concentration of casinos than anywhere else in the world, and visa restrictions for mainland tourists have further loosened.

"I think in Asia, one of the advantages that Macau will always have, even with the opening of facilities in Singapore...(is that Macau's still the only place) that will have such a high concentration of varied type of resorts...particularly when the Cotai Strip is finally built out," said Mr Frank Fahrenkopf, CEO of the American Gaming Association.

The Cotai Strip lies on reclaimed land in Macau where Las Vegas Sands' founder Sheldon Adelson plans to create the Las Vegas Strip of the East.

Galaxy Macau recently opened there, and MGM China is bidding for a second property on the strip.

Macau just recorded another bumper crop of gaming revenues for May, jumping 42 per cent on-year, thanks to new casino openings like Galaxy Macau.

Experts predict that for the full year, gaming revenues will be in excess of 40 per cent growth.

However, the gaming market is not without pitfalls.

Authorities have limited the number of gaming tables in the territory to 5,500 gaming tables until 2013 - that quota is already nearly filled, restricting growth at 3 to 5 percent a year - while intense competition to bring in high-rollers has led to an unregulated market for junket operators.

"60 per cent of gross gaming revenue comes from junket operators. A few years ago when I was here, I understand that there was an agreement as to what would be charged by way commission. The question is whether or not, that's still in play, (and) still being followed," said Mr Fahrenkopf.

For now though, gaming tables in Macau are still full of chips.

With gambling revenues at nearly US$13 billion during the first five months of the year, Macau looks set to rake in five times the revenue that the Las Vegas Strip will generate this year.

- CNA/cc

Category:

News & Politics

Tags:

• macau
• expo
• S'pore
• likely
• to
• overtake
• Las
• Vegas
• this
• year
• US
• gaming
• head
• gambling
• hub
• resort
• world
• sentosa
• marina
• bay
• sands
• rws
• RWS
• mbs
• MBS
• gamble
• casion
• IR
• integrated
• ACRES
• 2011
• Singapore
• Facebook
• CNN
• BBC
• ST
• TNP
• TODAY
• digital
• Omy
• RazorTV
• CNA
• Channel
• News
• Asia
• 八频道
• 新闻
• MediaCorp
• TV
• The
• Online
• Citizen
• TOC
• Temasek
• Review