Macau is in the middle of a casino slowdown that was not expected on the island. Macau turned itself into a vacation haven for the middle class and elite of Asia, but the island has been suffering in the midst of the global economic slowdown. Major casino development companies have been building in Asia for decades, and the island of Macau has gotten the majority of the attention from western developers. The newest casino on the island is bringing a bit of Hollywood to the casino industry, but the industry is still suffering.
How Bad Is The Casino Slowdown?
The Chinese economy has slowed under attempts by the Chinese government to cut down on corruption. A lack of regulation on the mainland caused many people to have the money they needed to spend in Macau, but the economic slowdown will persist until the Chinese economy levels off. There will be economic balance on the mainland again, but the economic balance must come soon as the largest casino in Macau is built. Bringing a bit of Hollywood to the island is a great idea from an entertainment point of view, but bringing in such a casino may not suit the economic issues of the day.
The Broad Expanse Of The Casino
The casino is going to use a massive launch party to open its doors, and there will be many Hollywood stars in the casino when they open. Robert DeNiro and Martin Scorsese are just two people who are coming to the opening of the casino, and those people are going to bring TV cameras and media attention. The people from the mainland who are under the strain of a government crackdown do not want to be seen in the public eye, and those high rollers are staying away from Macau. Macau is the kind of place no one wants to be caught right now. The media attention paid to these people could cause a government investigation, and Macau has already been linked to organized crime in the past.
The Link To Organized Crime
Organized crime has been linked to the casino industry in Macau, and money laundering is a particular focus of the Chinese government. No one in China wants to be seen in Macau going to a large casino while there are money launderers working in other parts of the city. No one believes that the new casino is a part of an illegal operation, but the perception on the mainland could be quite negative if someone were photographed having a good time in the city.
The Money That Is Never Seen
The men who offer money to high stakes gamblers on the island are charging outrageous interest rates, and the gamblers who win money are not charged taxes on the money they take off the mainland. The government has spent quite a lot of time cracking down on junkets who loan money in Macau casinos, and people who were once happy to borrow from these junkets are staying for fear they will be caught by a government investigation. This is a major problem for the casino sector, and the casinos that were once thriving do not have high rollers blowing cash on the casino floor.
How Big Is The New Casino?
The new casino is the most massive enterprise on the island, and the casino was designed for high rollers who were able to borrow money at will to spend in the casinos. The Hollywood style and glamour of the casino will attract people who love the gambling culture in the west, and Macau is much closer to the people than the Strip in Vegas.
This new casino brings the entertainment gambling that people are used to, but the scope of the casino is much larger than any other casino on the island. Gamblers can bet in this casino in many different areas, or people can come in from other parts of the city to see a show or eat dinner. Destination casinos like this one hope to increase their profits will great entertainment and dining options that visitors around the city will love. The casino itself will host many guests, but the majority of guests to the casino will walk through the door from the street.
Is The Macau Casino Industry Looking Up Yet?
The Macau casino industry will continue to look up as long as companies are investing in the market routinely. Companies like Sands and Wynn are investing in their own casinos, and this new casino is yet another investment that will improve their economy of the island. No one expects the Macau casino industry to improve overnight, but the casinos will improve if they have more gamblers coming in who have the money to spend.
Will Chinese Regulators Swoop In?
Chinese regulators are conducting investigations on the island every day, and those investigations are helping to create a more fair gaming industry on the island. The fairness of the industry does not benefit the casinos, but the middle class of China can come to the island to spend their disposable income with a bit more confidence. The high rollers who once had infinite amounts of cash to spend cannot borrow anymore, and the high rollers will leave the casino industry wanting until the economy has leveled off.
The people that are excited by the new casino in Macau will enjoy the glitz and glamour of the new casino, and the Hollywood stars who help open the casino are going to make it look very appealing. There are several ways for this new casino to make money, but the high rollers will stay away for the time being.