Macau: The New Las Vegas of the East
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Checking In: Macau
Checking Out: Las Vegas
A couple of months ago an old friend, now living in Hong Kong, wrote me an email about coming out to San Francisco. Here is how he opened his message:
Greetings from the Venetian Hotel in Macau, now the gambling capital of the world in terms of revenue. This place sucks and only reinforces in my mind why I always avoided Las Vegas.
I have to admit, at the time, Macau didn’t register on my radar. But in the following months it started popping up everywhere; in conversation, in newspaper articles, on the radio and online. Macau’s sudden and constant presence in my consciousness was no coincidence. As my friend pointed out in his scathing review, Macau officially surpassed Las Vegas as the world champion of gaming revenue in 2006, and it continues to out-earn the struggling desert city by increasing margins. Naturally, Las Vegas casino owners have flocked to Macau to get in on the game. According to the Gaming Inspection and Coordination Bureau of Macau, the number of casinos in the former Portuguese colony more than doubled over the past five years. To give you an idea of how Macau became the Vegas of the East—I mean the world—I’ve put together a point-by-point comparison of the world’s two most successful sin cities.
The History
Macau: Macau has a long history in trade dating back to the Silk Road and the Roman Empire. In the 1500s, the Portuguese settled the area to benefit their own trade, butchering the name A Ma Gao, and erecting their own Westernized trade colony, Macau. In December 1999, the Portuguese government returned partial control to China under the “one country, two systems” formula, recreating Macau as a Special Administrative Region (SAR) of China. However, before it threw in the towel, Portugal legalized gambling in Macua, setting it up to become the gaming mecca of the East.
Las Vegas: The Spanish first discovered the Las Vegas Valley in 1829, but Vegas wouldn’t officially become a city until the early 1800s, with the establishment of railways. Strangely, in 1910, the state of Nevada outlawed gambling. Twenty years later, the state uncorked the dam, and gambling was legal again. That year, the first gambling license was issued, and by the mid-50s, Las Vegas had become the gambling center of the world.
The Setting
Macau: Located on the western bank of the Pearl River Delta on the southeast coast of China, Macau enjoys a subtropical climate with cool winters and warm summers. Macau’s mainland is connected to the islands of Taipei and Coloane by three bridges.
Las Vegas: Located in the desert of the southwestern United States, in the Las Vegas Valley, this sandy city is hot. Really. Summer temperatures typically exceed 100 degrees. Be thankful for air conditioning.
The People
Macau: Population close to 550,000. About 94% are ethnic Chinese.
Vegas: Population exceeds 500,000. Nearly 70% of the population is white.
The Development
Macau: In 2001, Macau opened its local gaming industry to foreign competition. The following year the Chinese government decided to loosen travel restrictions, opening doors not only to casino developers, but also to the tourists who would make those casinos viable. By 2006, Macau had surpassed the Vegas strip in terms of revenue. Today everyone from Hugh Hefner to Sheldon Adelson, owner of the Venetian and the Sands, are turning their eyes and wallets toward Macau.
Las Vegas: Unfortunately, Las Vegas is also in a major development boom, which wouldn’t be a problem if gambling hadn’t reached an all-time low. Add to that growing caution among investors and bankers, and you’ve got a whole world of hurt. Many Las Vegas casino owners are currently piled under millions—if not billions—in debt, which might explain their interest in the east.
The Underbelly
Macau: Prostitution, human trafficking, money laundering and organized crime plague the booming gaming city.
Vegas: Ditto.
Prostitution is legal in Macau; pimping, however, is not.
