Las Vegas myth busted: Las Vegas is the gambling capital of the world
Apparently, what happens in Macau stays there, as few Las Vegas regulars know that the Chinese city has been the gambling capital of the world for 15 of the past 18 years.
Sin City began to emerge as the second largest city in annual gross gambling revenue (GGR) in 2006, when Macau - the only place in China where gambling is allowed - surpassed it for the first time, reporting a GGR of $6.95 billion - US Las Vegas is $6.69 billion. Since then, the gap has widened significantly. Until 2019,
Macau’s annual gaming revenue of $36 billion is nearly “six times” Las Vegas’ total revenue of $6.6 billion.
That's why the company, once owned by the late billionaire Sheldon Adelson, now only operates in Macau and Singapore. Although it is still called Las Vegas Sands. In a deal completed last year, the company sold its Venetian, Palazzo and Venetian Expo in Las Vegas to Apollo Global Management and VICI Properties for a reported $6.25 billion.
Cash Macau
Macau (also known as Macau) is a former Portuguese colony located on the coast near Hong Kong. It was brought back under Chinese control in 1999 and became the new Wild West of casino development after the gambling concession monopoly once owned by the late "King of Macau" Stanley Ho and his family expired in 2002.
While gambling has been illegal on the mainland since 1949, it is allowed in China due to Macau being a "Special Administrative Region."
Las Vegas Sands opened its first casino there in 2004, followed by Wynn Resorts two years later and MGM Resorts in 2007 ). They have invested a total of US$20 billion to build luxury hotels, large casinos and VIP suites to satisfy mainland China's huge gambling appetite.
The New York Times reported in 2007: “One of the biggest lures for investors is that the city’s gaming tables bring in an average of about seven times as much revenue as those in Las Vegas.” Although China’s per capita The annual income is only $1,700, but that's how bad the situation is for gamblers in this part of the world. "
As of 2019, Macau accounted for 70% of Wynn's business and 66% of Las Vegas Sands' business. (MGM does not break out its annual sales by country.)
Technology aspects of the pandemic
From 2020 through August 2023, Las Vegas regained its title as the Gambling Capital of the World, but only technically. Beijing's "zero-COVID" policy imposed a week of strict coronavirus (COVID-19) quarantine restrictions, causing visitor numbers to Macau to plummet from 39 million in 2019 to 5.9 million a year later.
To make matters worse, Beijing is also cracking down on junkets, which organize tours to help high-rollers evade capital controls and move large sums of money from Macau to the mainland.
In Macau, gaming revenue fell from $36 billion in 2019 to $7.56 billion in 2020, leaving Las Vegas in the lead with just $7.87 billion, its lowest annual revenue in 25 years.
China resumed quarantine-free travel in August 2022, and Macau lifted all quarantine restrictions in January.
According to the Wall Street Journal, Macau regained its throne with gross gaming revenue approaching $10 billion in the first half of 2023, surpassing Las Vegas’ $7.5 billion in the same period.
Unless there is another pandemic, it is not assumed that this trend will be reversed.
Look for "Vegas Myths Busted" every Monday To read previously debunked Vegas myths, visit: Have a suggestion for a Vegas myth that needs debunking? Email [email protected].
Read also:
- Blackjack Casino Advantage: How to Beat the Odds
- Football 101: What is relegation in football?
- Sphere Entertainment price target raised as profitability improves
- Texas Lt. Gov. Dan Patrick Raines marches at casino
Source: www.casino.org
