The lifting of gambling operating restrictions in Macao this year
ends a 72-year history of monopoly for the industry. Observers say
that the transition in the last year to an open market has been
smooth and reflects a state of good health for the industry in the
region.
February 8 has particular significance for the gambling fraternity
there as that is the date that the Macao Special Administrative
Region (MSAR) broke a 72-year monopoly and issued three new
gambling licenses. Macao Gaming Company, Wynn Resorts (Macao) Ltd.
and Galaxy Casino Company Ltd. were the three companies awarded
operating permission.
The transition to an open market is being widely seen as the end of
an era and start of a bright future for the economy of Macao.
The progress in the gambling sector has been initiated by the MSAR
government who was keen to develop and update the industry. They
have joined forces with the three new licensees and have the common
goal of Macao's future to drive their collective strategy.
The operational partnership has allowed the new licensees to run
the casinos and to improve and bring right up-to-date the equipment
and dicor of the venues. Since then, the industry has been making
rapid growth. This rapid advance and growth in the sector is thanks
to the secure state of Macao's tourist industry
In
cooperation with the labor unions and the MSAR government, Macao
Gaming Company has tried to solve many of the problems and past
disputes of the industry.
The Wynn Resorts (Macao) Ltd. and Galaxy Casino Company Ltd. have
yet to establish an operation in Macao, instead giving over time to
preparation in advance of production.
In
the past year, Macao's operational rights production has seen
significant progress. Gross income and gambling tax revenues were
up on previous years with expectations exceeded by 1.5 billion
Macao Pataca to an all time high of 7.64 billion Macao Pataca.
Although gambling tax is rarely consistent, it is useful as a
comparative economic indicator.
What is easy to measure however is that competition is good for any
industry and that a buoyant and healthy state in a sector often
assures its longevity.
(China.org.cn by Tang Fuchun, February 18, 2003)