The world’s top gambling hub recorded its first annual decline in 2014 since Macau began releasing financial figures in 2002 and is expected to continue to post a year-on-year drop in the coming months, which is why we decided to ask our readers, “Which gambling destination will benefit from Macau’s slowdown?”
42% voted for “Singapore” while 31% said that it will be “Las Vegas.” 23% belived that it will be “Philippines” and 2% for “Korea.”
Singapore presents an attractive alternative for Chinese gamblers given its proximity and the common use of Putonghua—also known as Mandarin. However, Singapore is feeling the effects of the drop-off and analysts believe that the Philippines and South Korea may be the next best bets for Chinese gamblers.
Total casino revenue on the Las Vegas strip fell as high-rolling baccarat players from China stayed home fearing President Xi’s corruption drive.
Las Vegas Strip witnessed a slow growth over the past few years as disposable income declined during the economic crisis. Meanwhile, other states legalized casinos, which further weighed over the casinos in Nevada. Pennsylvania legalized table games like poker and blackjack at casinos in a move to generate higher revenues. Similarly, the Delaware senate also passed a bill to allow table games. This had an adverse effect on the number of tourists visiting Las Vegas for gaming activities.
On the other hand PAGCOR Chairman and CEO Cristino Naguiat Jr. said that the Philippines is likely to survive the crackdown as PAGCOR’s casino model doesn’t rely too heavily on China’s VIP market. China is not the Philippines’ number one market. There’s a wider mix of nationalities coming here to play in our casinos. It’s not just the Chinese
South Korea already has three large IR projects in the works. Two of these – the Paradise City joint venture of Paradise Group and Sega Sammy Holdings and the Caesars Entertainment/Lippo Group JV – have been earmarked for Yeongjongdo Island near the Incheon free economic zone. The Genting Singapore/Landing International Development JV plans to take root on Jeju island.
South Korea plans to issue two more large-scale casino licenses in 2015 as part of a broader plan to boost the nation’s tourism industry. Chow Tai Fook Enterprises has proposed its own $1b project in Incheon and Las Vegas Sands continues to make noise about building an “iconic” resort deep in the heart of the country’s capital Seoul.
Next week we ask, “Will Loretta Lynch reverse 2011 DOJ’s 1961 Wire Act’s opinion once confirmed as attorney general?” as Loretta Lynch, President Barack Obama’s nominee for the next US attorney general, has said she likely wouldn’t alter the Justice Department’s 2011 opinion that the 1961 Wire Act only applies to sports betting. Check back next week for the result.
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