Macau Gambling Continues to Thrive
In terms of revenue generation Macau is the gambling capital of the world having overtaken Las Vegas in 2006. Last year gambling accounted for 50% of Macau’s GDP and 84% of its fiscal revenues.
Macau is generating six times more gambling revenue than Las Vegas and its GDP growth rate is far higher than the US. In the first quarter of this year Macau’s GDP expanded an impressive 10.8% and its unemployment rate fell to a record low of 1.8% in May. In the US the GDP grew by 1.8% and unemployment was 7.5% in May.
During the first five months of this year visitor arrivals to Macau increased 3% year on year. Over 60% of the visitors are from mainland China and almost 25% are from Hong Kong, on a small proportion of visitors come from Europe and the US.
The Melco Crown Entertainment generates 100% of its revenue from the region. It is the only casino based in Macau which doesn’t have US interests as well making it far more secure than Las Vegas Sands, MGM Resorts or Wynn Resorts.
As online gambling is legalised across the US the other operators will be worried about losing market share, Melco can be confident that its market is not about to rapidly change