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Macau Gaming Summary

Background

Macau (also spelled "Macao") currently has a thriving casino industry, pari-mutuel and sports betting, and a lottery. With annual gambling revenues of more than $13 billion, Macau is the largest casino gambling jurisdiction in the world.

 

Casino Gaming

Development: While gambling in Macau dates back to the Portuguese colony's founding in the 16th century, the current regime of legal casino gaming has been in place since 2002. In 1847, the enclave's governor, Isidoro Francisco Guimares, legalized games of chance. Traditional Chinese games like fantan dominated. In the 1930s, the colonial government twice re-awarded the monopoly concession, and Western games of chance like baccarat were offered for the first time. In 1962, the government awarded the concession to Sociedade de Turismo e Diversões de Macao (STDM), a company that, under the leadership of Stanley Ho, would retain its monopoly on Macau casinos for the next forty years.

With reversion to control of mainland China in 1999, Macau became a Special Adminsitrative Region of the People's Repuiblic of China. Under the PRC's "one country--two systems" approach, casino gambling remained legal in Macau, though it was and still is illegal in the PRC. The government opened up STDM's casino monopoly, which was set to expire in 2001, to new bidders. Three companies, SJM (a subsidiary of STDM), Wynn Resorts, and a combination of Galaxy Entertainment and Las Vegas Sands won concessions; when the SAR permitted Galaxy and Las Vegas Sands to split their concession, each of the other two concessionaires were allowed to sell suboncessions. SJM sold its subconcession to a partnership between Pansy Ho and MGM Mirage (now MGM Resorts), and Wynn Resorts sold its subconcession to Melco PBL (now Melco Crown), a partnership between Melco and PBL, an Australian casino operator.

Regulation: The Macau casinos are regulated by the Gaming Inspection and Coordination Bureau (Direcção de Inspecção e Coordenação de Jogos) of the Macau Special Adminstrative Region. The Bureau is usually known by its Poruguese acronym, DICJ.

Taxation: Effective tax rate: 38 to 39%.There is a 35% tax on gross gaming revenue, and a 1.6% contribuition to the Macao Foundation, as well as a 1.4% (for SJM) or 2.4% (for everyone else) contribution to the Infrastructure/Tourism/Social Security Fund (source).

Size of Market: Currently, there are 33 casinos in Macao, with 24 casinos located on the Macao Peninsula and 10 casinos on Taipa Island. SJM has 20 casinos; Galaxy has 5 casinos; Venetian Macao (Las Vegas Sands) has 3 casinos; Melco Crown (formerly known as “Melco PBL”) has 3 casinos; Wynn Resorts and MGM Resorts have 1 casino.

 

Pari-Mutuel

Macau has a small pari-mutuel industry, with betting on greyhound racing at the Macau Canidrome and thoroughbred horse racing at the Macau Jockey Club, which runs races twice a week for most of the year. Stanley Ho's STDM owns both tracks, and the Macau Jockey Club conducts the betting. The Jockey Club also accepts bets from off-course betting terminals in Macau, via telephone, and via the Internet. In 2009, total pari-mutuel wagering revenue accounted for just over one-half of one percent of Macau total gaming revenue.

 

Lottery

The Macau Lottery features betting on the Chinese lottery and instant games. Total lottery revenue is a fraction of a fraction of a percent of overall gaming revenues.

 

Sports Lottery

Sports betting in Macau began in 1998. Currently, Sociedade de Loarias e Apostas Mútuas de Macau accepts bets on soccer (football) and basketball games. In 2009, total sports betting revenues accounted for a tiny fraction of one percent of Macau's total gaming revenues.

 

For more information

Macau Gaming Inspection and Coordination Bureau (quarterly statistics)

 

Casino Gaming in Macau

 

Casino Gaming Numbers & Revenues
Year
Casinos
Gaming Tables
Slot Machines
Total Revenues
Revenues ($USD)
2002
11
339
808
22,180
$2,772.50
2003
11
424
814
28,672
$3,584.00
2004
15
1,092
2,254
41,378
$5,172.25
2005
17
1,388
3,421
46,047
$5,755.87
2006
24
2,762
6,546
56,623
$7,077.87
2007
28
4,375
13,267
83,022
$10,377.75
2008
31
4,017
11,856
108,772
$13,596.50
2009
33
4,770
14,363
119,369
$14,921.13
2010
33
4,791
14,450
188,343
$23,542.86
2011
34
5,302
16,056
267,867
$33,483.38
2012
35
5,485
16,585
304,139
$38,017.38
2013
35
5,750
13,106
360,749
$45,093.25
2014*
35
5,697
12,584
275,941
$34,492.63

Casinos is the number of casinos in operation at years end or, for current year, as of the end of the most recent quarter; gaming tables and slot machines are reported under the same system. Total Revenues are given for the year (or for the current year, through the end of the most recent quarter) in millions of patacas (MOP), the official currency of Macau; add 000,000,000 for totals; Revenues ($USD) is an approximate estimate of the total in millions of dollars, based on the exchange rate 8MOP=$1; add 000,000,000 for totals. Pachinkos, which numbered 188 marketwide in 2002, 2003, and 2004 and were not reported thereafter, were not included in this table.

2014 data is through September 30

Casino Revenue By Game
Year VIP Baccarat Baccarat Blackjack Roulette Cussec Stud Poker Slots Other Total
2002
16,340
2,716
589
49
641
0
231
1,613.8
22,180
2003
22,178
3,102
637
47
682
16
236
1,772.8
28,671
2004
29,783
5,981
1,211
128
1,212
337
640
2,086.0
41,378
2005
28,864
10,448
1,459
186
1,526
522
1,250
1,792.4
46,047
2006
36,783
11,911
1,622
248
1,923
556
2,053
1,527.1
56,623
2007
55,762
16,515
1,917
371
2,755
750
3,594
1,360.9
83,025
2008
73,772
21,264
2,247
693
3,043
925
5,653
1,174.8
108,772
2009
79,834
25,498
1,903
694
2,826
938
6,503
1,174.7
119,371
2010
135,648
34,917
2,290
672
3,555
1,060
8,618
1,583
188,343
2011
196,126
48,669
2,712
783
4,774
1,309
11,425
2,069
267,867
2012
210,850
66,251
2,950
892
5,546
1,472
13,244
2,934
304,139
2013
238,524
91,599
3,052
940
6,756
1,661
14,384
3,833
360,749
2014*
166,476
84,259
2,256
862
5,853
1,259
11,311
3,665
275,941

Revenues are given for the year (or for the current year, through the end of the most recent quarter) in millions of patacas (MOP), the official currency of Macau; add 000,000,000 for totals. 2014 data is through September 30

Cussec is also known as Sic Bo in American casinos; Stud Poker is a house-banked game like Caribbean Stud Poker.

This chart has the annual revenue totals for the seven most popular casino games in Macau--in 2009, each had revenues of more than MOP 500 million. All other games, which include fantan, paikao (pai gow), mahjong paikao, craps, boule, fish-prawn-crab cussec, Q poker, football poker, 3-card poker, Fortune 3-card poker, Texas hold'em (live poker), 3-card baccarat, fortune 8, tombola, and lucky wheel (known in the US as "Big Six), are in the "Other" category.

 

Win per Table
Year
# Tables
Table Win
Win/Table
Win/Table ($)
Win/table/day ($)
2002
339
21,949
64,746,312.68
8,093,289.09
22,173.39
2003
424
28,435
67,063,679.25
8,382,959.91
22,967.01
2004
1,092
40,738
37,305,860.81
4,663,232.60
12,741.07
2005
1,388
44,797
32,274,495.68
4,034,311.96
11,052.91
2006
2,762
54,570
19,757,422.16
2,469,677.77
6,766.24
2007
4,375
79,431
18,155,657.14
2,269,457.14
6,217.69
2008
4,017
103,119
25,670,649.74
3,208,831.22
8,767.30
2009
4,770
112,868
23,662,054.51
2,957,756.81
8,103.44
2010
4,791
179,725
37,513,045.29
4,689,130.66
12,846.93
2011
5,302
256,442
48,367,031.31
6,045,878.91
16,564.05
2012
5,485
290,895
53,034,639.93
6,629,329.99
18,162.55
2013
5,750
346,365
60,237,391.30
7,529,673.91
20,629.24
2014*
5,697
264,630
46,450,763.56
5,806,345.44
21,268.66

Table Win is given in millions of patacas (MOP), the official currency of Macau; add 000,000,000 for totals; Win/Table is given in patacas.Win/Table ($) is the approximate US dollar amount of the Win/Table, and Win/Table/Day ($) is the average win per slot per day, in dollars.

2014 data is through September 30

Win Per Slot
Year
#Slots
Slot Win
Win/Slot
Win/Slot ($)
Win/Slot/Day ($)
2002
808
231
285,891.09
35,736.39
97.91
2003
814
236
289,926.29
36,240.79
99.29
2004
2,254
640
283,939.66
35,492.46
96.97
2005
3,421
1,250
365,390.24
45,673.78
125.13
2006
6,546
2,053
313,626.64
39,203.33
107.41
2007
13,267
3,594
270,897.72
33,862.21
92.77
2008
11,856
5,653
476,804.99
59,600.62
162.84
2009
14,363
6,503
452,760.57
56,595.07
155.05
2010
14,450
8,618
596,401.38
74,550.17
204.25
2011
16,056
11,425
711,572.00
88,946.50
243.69
2012
16,585
13,244
798,552.91
99,819.11
272.73
2013
14,384
13,106
1,097,512.59
137,189.07
375.86
2014*
11,311
12,584
898,839.80
112,354.97
411.56

Slot Win is given in millions of patacas (MOP), the official currency of Macau; add 000,000,000 for totals; Win/Slot is given in patacas.Win/Slot ($) is the approximate US dollar amount of the Win/Slot, and Win/Slot/Day ($) is the average win per slot per day, in dollars.

2014 data is through September 30

Pari-mutuels and Lotteries in Macau

 

Total Amount Bet (Handle)
 
Pari-Mutuel
Lottery
Sports Lottery
All
Year
Greyhound
Horse Racing
Chinese Lottery
Instant Lottery
Football
Basketball
Total
2002
334
2,723
9
1.53
9,960
681
13,709
2003
328
5,207
8
0.11
10,179
607
16,329
2004
376
8,173
20
0.07
8,850
673
18,093
2005
303
3,286
32
0.04
6,555
794
10,969
2006
302
2,253
30
0.04
5,581
787
9,223
2007
459
2,080
25
0.03
4,359
744
7,667
2008
899
2,600
24
0.01
4,465
918
8,905
2009
1,576
1,719
22
0.007
3,826
856
7,999
2010
1,659
2,273
24
0.0032
5,057
950
9,963
2011
1,440
2,269
23
0.0051
4,829
1,029
9,590
2012
985
1,828
23
0.0016
5,545
1,690
10,071
2013
855 1,881 20 0.0042 4,962 1,810 9,528
2014*
511 1,262 19 0.0018 4,641 1,391 7,824

Totals are in millions of patacas (MOP).

2014 data is through September 30

Total Revenue
 
Pari-Mutuel
Lottery
Sports Lottery
All
Year
Greyhound
Horse Racing
Chinese Lottery
Instant Lottery
Football
Basketball
Total
2002
76
539
4
0.83
641
56
1,316
2003
74
1,004
3
0.07
510
52
1,643
2004
84
1,566
5
0.03
442
36
2,133
2005
67
636
7
0.03
333
44
1,087
2006
67
437
7
0.03
327
60
898
2007
98
403
6
0.02
273
44
825
2008
186
501
6
0.003
304
57
1,054
2009
327
333
6
0.0024
279
69
1,014
2010
340
439
6
0.0023
380
79
1,245
2011
297
440
6
0.0036
362
86
1,191
2012
205
356
6
0.0014
418
111
1,096
2013 178 365 5 0.0024 419 150 1,117
2014* 107 246 4 0.0014 483 89 929

Totals are in millions of patacas (MOP).

2014 data is through September 30

Macau Gaming Timeline

1847: Portuguese colonial government legalizes gambling in Macau

1927: The first organized horse races in Macau

1930: The Hou Heng Company wins a monopoly concession for operating all games of chance

1932: Greyound racing is introduced to Macau

1937: Casino monopoly awarded to Tai Heng Company, which introduces baccarat to Macau

1962: Macau government awards monopoly concession to Sociedade de Turismo e Diversões de Macao (STDM)

1970: Casino Lisboa (STDM) opens

1980: Harness racing introduced to Macau

1998: Betting on football (soccer) begins

2000: Macau Gaming Committee explores changes in Macau's gaming industry

2002: Macau government awards three concessions for casino gaming, to Sociedade de Jogos de Macau (“SJM”), a subsidiary of STDM, Galaxy Casino, S.A. (“Galaxy”), and Wynn Resorts (Macao) S.A. (“Wynn”)

2002: Galaxy permitted to issue subconcession to Venetian Macao S.A., a subsuidiary of Las Vegas-based Las Vegas Sands, Inc.

2004: Sands Macao, the first American-run casino in Macau, opens

2004: Galaxy Waldo, Galaxy's first casino, opens

2005:SJM awards subconcession to a joint venture between MGM Mirage (currently MGM Resorts) and Pansy Ho, MGM Grand Paradise

2006:Wynn awards subconcession to Melco PBL (currently Melco Crown)

2006: Melco Crown acquires Mocha slot lounges

2006: Grand Waldo (Galaxy Entertainment) opens

2006: Wynn Macau opens

2007: Crown Casino (now Casino Altira) opens

2007: MGM Grand Macau opens

2007: Grand Lisboa casino opens (SJM)

2007: Venetian Macao (Las Vegas Sands) opens

2009: City of Dreams (Melco Crown) opens

2010: Encore Macau (Wynn Resorts) opens

2011: Galaxy World Macau (Cotai) opens

2012: Sands Cotai Central opens


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Last modified Thursday, 13-Nov-2014 12:43:07 PST