How gambling can effect the economy of a country [Part 2 - Macau]

[avikz]

If you haven't read the first part of this series, please read it HERE.

So today it's time for Macau. I have researched a lot about Macau before creating this topic and came across some really good resources which has correctly pictured the effect on Macau's economy from the gambling business post 2002 when the government decided to end their monopoly and allow private business to build and operate gambling business. The key pointers are as follows,

1. Significant growth in GDP and GDP per capita:
Starting 2003, the GDP and GDP per capita of Macau has seen an annual average growth of around 10.3%. Prior to that, the average annual GDP growth rate of Macau was only a mare 1.5%. The chart below says it all,



2. Boost in tourism industry:
With the end of monopoly of the government from the gambling industry, Macau government created IVS (Individual Visit Scheme) in 2003 to attract China visitors to enter Macau for leisure. Prior to 2003, Chinese tourists could only visit Macau and Hong Kong during business trips or group tours. So in 2004, Macau seen total 16.6 million of foreign tourists which represents an increase of 40.3% from the previous year. With the completion of more casinos in 2007, total number of tourists reached 27.0 million during that year. This represented a 250% increase in total foreign tourists from 1999, and an 800% increase in Chinese visitors.



3. Growth in Gaming Tax & Gaming Revenue:
In 2000 and 2001, total gaming taxes were $706.5 million and $787.3 million respectively while the business were operated by the government. However, with the private investment into gambling business and the creation of IVS, total gambling taxes reached $5.5 billion.



Along with the above mentioned key pointers, there are other positive effects like employment, infrastructure and local businesses are also seen a significant change post 2002. Currently, gambling industry accounts over 60% in Macau's GDP. Macau stands as an excellent example on how gambling industry can take the entire economy of a country to a new height.

News source: CLICK HERE

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[maydna]

so we know three things that increase significantly from the gambling that gives an effect to the economy of a country and I think Macau is one of the biggest gambling places that have many visitors that want to play gambling. and I think the government will be glad to see that they can have another income for their country so they will give permission for the gambling owner to open their new gambling places.

[Kprawn]

Did you know that they call Macau the "Las Vegas of Asia."? ....but they want to move away from gambling now and plans to

spend about HK$45 billion ($5.7 billion) on facilities including a new arena and space for exhibitions. Sands China touts an

arcade where visitors slay virtual-reality dragons.  

Sourced from : https://www.businesstimes.com.sg/consumer/macau-will-struggle-to-kick-its-gambling-addiction

Their focus is now to diversify into being a tourist attraction, rather than a gambling hub. The largest single sector attracting

Macau visitor non-gaming spend in the first quarter was shopping. It accounted for 47.3 percent of the per capita spending of

visitors. --->  http://www.ggrasia.com/tourist-satisfaction-with-macau-casinos-rises-in-1q/

[Loveydovey04]

If you haven't read the first part of this series, please read it HERE.

So today it's time for Macau. I have researched a lot about Macau before creating this topic and came across some really good resources which has correctly pictured the effect on Macau's economy from the gambling business post 2002 when the government decided to end their monopoly and allow private business to build and operate gambling business. The key pointers are as follows,

1. Significant growth in GDP and GDP per capita:
Starting 2003, the GDP and GDP per capita of Macau has seen an annual average growth of around 10.3%. Prior to that, the average annual GDP growth rate of Macau was only a mare 1.5%. The chart below says it all,



2. Boost in tourism industry:
With the end of monopoly of the government from the gambling industry, Macau government created IVS (Individual Visit Scheme) in 2003 to attract China visitors to enter Macau for leisure. Prior to 2003, Chinese tourists could only visit Macau and Hong Kong during business trips or group tours. So in 2004, Macau seen total 16.6 million of foreign tourists which represents an increase of 40.3% from the previous year. With the completion of more casinos in 2007, total number of tourists reached 27.0 million during that year. This represented a 250% increase in total foreign tourists from 1999, and an 800% increase in Chinese visitors.



3. Growth in Gaming Tax & Gaming Revenue:
In 2000 and 2001, total gaming taxes were $706.5 million and $787.3 million respectively while the business were operated by the government. However, with the private investment into gambling business and the creation of IVS, total gambling taxes reached $5.5 billion.



Along with the above mentioned key pointers, there are other positive effects like employment, infrastructure and local businesses are also seen a significant change post 2002. Currently, gambling industry accounts over 60% in Macau's GDP. Macau stands as an excellent example on how gambling industry can take the entire economy of a country to a new height.

News source: CLICK HERE

Well, these reports maybe true somehow but it is only good to the economy as whole if indeed true but not to individual gambler. It could even increase robbery rate, criminality rate (sorry for the exaggeration) in some point because most of gambling addicts cannot stop by themselves and the moment they can no longer support their habits of gambling they will start to rob, sell properties and some even sell drugs to have money and support their vices.   

[Hydrogen]

That is very interesting, thanks for posting.

Macau seems similar to Las Vegas in that its a centralized form of legalized gambling in a relatively small area of a much larger nation.

Recently, gambling was legalized within a broader scope by the US federal government. I wonder what the state based implications would be if gambling were legalized more evenly within a more distributed and decentralized format, rather than being centralized mainly within Las Vegas(nevada). Could the same economic and tax revenue growth apply to every state? Or would the centralized economic gains be divided if legalization were more broadly implemented?

I see gambling legalization as being similar to marijuana legalization with good if not better job creation and economic benefits. Of course, there could be negatives which go along with gambling. Greater prostitution and human trafficking. Higher drug and substance abuse. Some of these negative conditions could lead to higher and more violent crime.

Many organized crime and terrorist organizations make their money through gambling, prostitution, human trafficking and drugs. So of course in legalizing gambling it could be important to crackdown on things to prevent terrorists & organized crime from establishing themselves and profiting off of human pain and suffering which comes from the type of illicit business they run.

I think macao could be having issues with this--with organized crime. And so perhaps that is why china is attempting to distance themselves from some of those things. To cut down on their influence. But we will see how things go, hopefully they will go well.

[avikz]

Well, these reports maybe true somehow but it is only good to the economy as whole if indeed true but not to individual gambler. It could even increase robbery rate, criminality rate (sorry for the exaggeration) in some point because most of gambling addicts cannot stop by themselves and the moment they can no longer support their habits of gambling they will start to rob, sell properties and some even sell drugs to have money and support their vices.   

That's true and I am not denying that fact! Every industry has a downside as well along with it's positive side. But that doesn't really make the entire industry look bad. Lets take an example of crypto currency itself. We all know it's a very important innovation of this decade. But crypto currency is being used for activities like money laundering and terrorism financing. Does that make crypto currency look bad? Obviously no! Gambling addiction is not good but when it is played for entertainment, I see no bad in it.

[sunsilk]

This is the good points of gambling but just like what the reminders are being said, if it's too much then it's bad.

There's a good use for gambling in Macau and for the three sectors that was mentioned, Macau is opening their gates to the gamblers because it's one of their major source.

Converting and upgrading their source from the well known gambling place, now changed to attraction - I like on how Macau is doing great in their country.

Despite it's a small country and limited resources, they are one of the fastest growing country thanks to gambling.

[qwertyup23]

so we know three things that increase significantly from the gambling that gives an effect to the economy of a country and I think Macau is one of the biggest gambling places that have many visitors that want to play gambling. and I think the government will be glad to see that they can have another income for their country so they will give permission for the gambling owner to open their new gambling places.

Economically speaking, gambling can really have a positive effect in this aspect alone. The data provided showed the increase into different categories in gambling alone. Due to the casinos in Macau, it is inevitable for a country to receive such ratings as that place is famously known for casinos and gambling (just like Las Vegas). Now if we are going to discuss the adverse effects of gambling into an individual, then the discussion is irrelevant.

Well, these reports maybe true somehow but it is only good to the economy as whole if indeed true but not to individual gambler. It could even increase robbery rate, criminality rate (sorry for the exaggeration) in some point because most of gambling addicts cannot stop by themselves and the moment they can no longer support their habits of gambling they will start to rob, sell properties and some even sell drugs to have money and support their vices.   

That's true and I am not denying that fact! Every industry has a downside as well along with it's positive side. But that doesn't really make the entire industry look bad. Lets take an example of crypto currency itself. We all know it's a very important innovation of this decade. But crypto currency is being used for activities like money laundering and terrorism financing. Does that make crypto currency look bad? Obviously no! Gambling addiction is not good but when it is played for entertainment, I see no bad in it.

Like what I mentioned, the scope of the post only covers to the positive effect of gambling and casinos to the economy. The post did not tackle about the adverse effects of gambling into an individual and to other related matters therein. It is irrelevant to the discussion and it may require another thread for it to be discussed. Please do not go beyond on what the scope is even though the answers are obvious. If there exist such a system wherein a country would benefit both the economic and social aspect, then expect every country to be rich and peaceful.

[bering]

for the countries who legalized gambling they certainly can increase their economy situations because tax gambling is very high and from tourism industry and tax indeed Macau has been successfully increasing the percentages because Macau similar such as heaven for every gamblers in the world besides Las Vegas but behind all of it we can't avoid people who being an addicted because too much visiting gambling houses in that place and the victim of this data is the citizen of Macau themself because they gambling regularly and possibly already addicted and standard living at there will very high because gambling already became an their life style

[Aikidoka]

It is not just narrowed to gambling only, but also to other fields like Football. Everything is related, and the government will do anything to increase its profits. Gambling has always been beneficial for the economy of a country, even though they are using people to waste their time and money on gambling. But yes, it is a good idea if you are in need of money to invest in a project that will be helpful for needy people.

[Baofeng]

Did you know that they call Macau the "Las Vegas of Asia."? ....but they want to move away from gambling now and plans to

spend about HK$45 billion ($5.7 billion) on facilities including a new arena and space for exhibitions. Sands China touts an

arcade where visitors slay virtual-reality dragons.  

Sourced from : https://www.businesstimes.com.sg/consumer/macau-will-struggle-to-kick-its-gambling-addiction

Their focus is now to diversify into being a tourist attraction, rather than a gambling hub. The largest single sector attracting

Macau visitor non-gaming spend in the first quarter was shopping. It accounted for 47.3 percent of the per capita spending of

visitors. --->  http://www.ggrasia.com/tourist-satisfaction-with-macau-casinos-rises-in-1q/

But they become so successful in gambling industry that they became the Las Vegas of Asia. So I don't think that they can get away with that "title" for a long time. Never been to Macau but I have friends who chooses to lived there and they say that gambling really help turn the economy outside down.

[BlackPanda]

Conditions in macau are very different from the situation in other countries, macau is very supportive type gambling game and there gambling game is a legal thing. Try to compare with other countries, I think only 2% of countries in the world are allowing legal gambling game. Indeed macau get one income from the taxes they receive, gambling also bring in many investors from around the world. but again that you should never compare what the macau state can achieve with what other countries achieve.

[Rinsend]

Conditions in macau are very different from the situation in other countries, macau is very supportive type gambling game and there gambling game is a legal thing. Try to compare with other countries, I think only 2% of countries in the world are allowing legal gambling game. Indeed macau get one income from the taxes they receive, gambling also bring in many investors from around the world. but again that you should never compare what the macau state can achieve with what other countries achieve.

macau legalize gambling present in his country. and it makes the country get a huge income from taxation, the biggest taxable income that has been  by the gambling house. and already in the make sure it can present a huge job in macau

[gowobonyok]

the most obvious is taxes, if the government takes taxes on every gambling house, it would be very profitable for his country.

[maydna]

so we know three things that increase significantly from the gambling that gives an effect to the economy of a country and I think Macau is one of the biggest gambling places that have many visitors that want to play gambling. and I think the government will be glad to see that they can have another income for their country so they will give permission for the gambling owner to open their new gambling places.

Economically speaking, gambling can really have a positive effect in this aspect alone. The data provided showed the increase into different categories in gambling alone. Due to the casinos in Macau, it is inevitable for a country to receive such ratings as that place is famously known for casinos and gambling (just like Las Vegas). Now if we are going to discuss the adverse effects of gambling into an individual, then the discussion is irrelevant.

you are right, with that data, I am sure that in Macau, the gambling owner can take a bigger profit because they can have more than 1 gambling places and from that gambling place, they can make a lot of money. but they need to pay a big taxes too because the government allows them to open the gambling place. I am sure that in the future, there will be more gambling places that will operate in Macau because this business will never end.

[Kate Beckett]

Real gambling halls are expensive entertainment centers, where lovers of excitement can spend their holidays. Once, Las Vegas and Macau belonged to depressed regions, and permission to build a casino pushed the territory to development. Gambling houses also provided jobs, in addition, replenished the local treasury, by paying taxes.

[pixie85]

I think that their uniqueness came from the fact that in many countries gambling is still illegal or semi legal, which means that you can do it as long as it's not being openly advertised and takes place away from the main streets. This makes places like macau a tourist destination for people tired of hiding and playing in creepy basements and warehouses. If gambling as legal everywhere Macau would not benefit economically from being gambling friendly.

[milewilda]

Did you know that they call Macau the "Las Vegas of Asia."? ....but they want to move away from gambling now and plans to

spend about HK$45 billion ($5.7 billion) on facilities including a new arena and space for exhibitions. Sands China touts an

arcade where visitors slay virtual-reality dragons.  

Sourced from : https://www.businesstimes.com.sg/consumer/macau-will-struggle-to-kick-its-gambling-addiction

Their focus is now to diversify into being a tourist attraction, rather than a gambling hub. The largest single sector attracting

Macau visitor non-gaming spend in the first quarter was shopping. It accounted for 47.3 percent of the per capita spending of

visitors. --->  http://www.ggrasia.com/tourist-satisfaction-with-macau-casinos-rises-in-1q/

But they become so successful in gambling industry that they became the Las Vegas of Asia. So I don't think that they can get away with that "title" for a long time. Never been to Macau but I have friends who chooses to lived there and they say that gambling really help turn the economy outside down.

They wont really leave out gambling industry since these are one of the main reason why they do improve soo much when it comes to their economic status and the things being mentioned are way of diversifying which would really add up. Its just like on having a domino effect, once it shows positive results they would extent or put attention with other things as well and now they are allocating budget to other infrastructure which will really make even more helpful on rising up.

[STT]

I think macao could be having issues with this--with organized crime. And so perhaps that is why china is attempting to distance themselves from some of those things. To cut down on their influence. But we will see how things go, hopefully they will go well.

Biggest difference from China to USA is the use of capital controls.   China does not allow free exchange or usage of its currency by citizens and of course its not a democratic country where such things will be allowed to profit the individual over the central governments usage of the countrys capital to its stated agenda.

Gambling is related to direction of monetary flow and I think they do make alot of effort to stop any flow of capital from Macau outside the country too easily.   I think I read the ATM machines have face recognition in some effort to stop any industrialisation of money movement occurring, its all monitored to aid central control.  Of course I think China overall would be better off allowing free movement and usage but its probably also the case it would remove power from government which they oppose, capitalism and democracy are related imo.