Macau Casino Revenue Continues Unabated Growth

It seems more and more likely that, for at least the immediate future, casinos and gambling destinations will cater increasingly to only the most elite of players.

Macau became the world's most lucrative gambling area the year before last, and the revenue totals from last year show the tiny city-state lengthening its lead over the Las Vegas Strip. Indeed, Macau's 24 casinos not only exceed the Strip in revenue, they exceed all of Clark County, Nevada, and threaten to net more than the entire state of Nevada.

Since the monopoly of billionaire Stanley Ho was broken in 2004, the rush of Vegas tycoons like Sheldon Adelson to fill the insatiable demand for gambling in Asia has led to unimaginable investment and development in the former Portugese colony. Ho still owns 18 casinos, but the addition of new properties continues at breakneck pace.

After posting 2006 figures of $6.95 billion in revenue, Macau leaped to a 2007 number of $10.3 billion. The whole state of Nevada reported $12.7 billion in 2007 income..

Interestingly, almost 70% of the region's total revenue was generated by play at the high-stakes baccarat tables, a total of $6.9 billion, or as much as all tables, slots and all forms of gambling brought in just the previous year. This matches a pattern found on the Vegas Strip, one that shows growth in revenues largely due to increased high-roller play, especially at baccarat.

It seems more and more likely that, for at least the immediate future, casinos and gambling destinations will cater increasingly to only the most elite of players. While all revenue is good revenue, the easiest way to compete with the other giant casino corporations is to indifferently accept the average player if he chooses to gamble, but to care almost exclusively what the wealthiest single percentile of gamblers desires and seeks.