Macau Overtakes Vegas in Gaming Revenue

Thanks to a 22 percent increase in casino revenues in 2006, Macau has jumped over Las Vegas as the top casino market in the world, according to a Bloomberg report. Macau brought in 55.9 billion patacas ($6.95 billion) in gaming revenue, versus an estimated $6.5 billion to $6.6 billion for Las Vegas.

Much of the increase is thanks to seven new casinos that were built in the country in the past year, including Steve Wynn’s $1.2 billion Wynn Macau in September. He already has plans to build a second casino there.

The fourth quarter was particularly lucrative, as gaming revenues in Macau soared to 16.6 billion patacas, a 43 percent increase from the year before.

Part of why Macau has succeeded so quickly in this industry is its location. According to CLSA Asia-Pacific Markets, said the Bloomberg report, 2.2 billion people live within a five hour flight of the Chinese island, far outstripping the 410 million that reside the same distance from the desert oasis of Las Vegas. 22 million tourists visited Macau in 2006.

70 percent of Macau’s $12 billion in revenue now comes from casino taxes. The gambling industry has allowed Macau’s economy to double in four years.

And there are no signs of a slowdown. Las Vegas Sands is building the Venetian Macao, with plans to open in 2007, and MGM Mirage also has a project underway.

Originally published 4:58 PM Tuesday, January 23, 2007