Macau Sets New Records in October

Despite concerns that current growth rates may be unsustainable in light of recent policy changes, Macau’s gambling revenues continued to rise sharply to new highs in October. The Chinese enclave saw a 42% increase in year-over-year gambling revenues last month, taking in approximately $3.36 million.

The astronomical growth rates come even after both the Chinese government in Beijing and local officials have taken steps to move Macau to a slower, more sustainable rate of growth. For instance, casino credit rules have been tightened, which was expected to decrease the influx of gamblers to casinos there. However, there has been no slowdown at all thus far.

So far this year, Macau’s revenues are up 45% over 2010. This comes on the heels of a 58% growth rate last year over 2009 revenues. The growth of Macau has been astounding; just five years after passing Las Vegas as the largest gambling market in the world, Macau is now on pace to bring in over five times as much gambling revenue as Vegas this year.

October was a particularly lucrative month because of China’s “golden week” of holidays, which predictably drew increased revenues for Macau. That allowed the total take for the casinos to top the all-time high, set just two months earlier in August.

Macau is the only area in China where gambling is illegal. It attracts wealthy visitors from all throughout the country, as well as from many other Asian nations – and increasingly, elsewhere in the world as well. While Macau long operated with only local casino ownership, recent years have seen American and other gambling groups open casinos in the enclave.