For many years, Las Vegas was the uncontested gambling capital of the world. About 5 years ago however, Macau and its 30 mega casinos took over as the biggest gambling destination in the world. The amount of money being gambled in Macau on a daily basis is just unbelievable. The equivalent of the yearly profits of an international corporation can change hands in a day on the felt tables of the casino.

For decades, the gambling industry in Macau was limited under state run monopoly license. The monopoly ended in 2002 and several large Las Vegas-based casino groups decided to open new casinos in Macau. Less than 10 years, later, Macau out gambles Las Vegas by four to one. The casinos in Macau are enormous. The Sands opened in 2004, the Wynn opened in 2006 were soon dwarfed by the Venetian, opened in 2007, which is the largest casino in the world and boosted even more the number of gambling tourists coming to Macau every year. No expense is spared in Macau. Luxury is everywhere. The Venetian alone cost £2bn to build.

The casino resorts in Macau have completely transformed the Island which has taken over from Las Vegas as the gambling capital of the world. The 33 casinos in Macau have completely transformed the local economy to the point that they are now taking close to four times the total of the Las Vegas strip. Since about 2006, Macau has taken over Las Vegas as the world’s gambling capital of the world. Just one of Macau’s casino groups, SJM, owned by the billionaire Stanley Ho, can generate more revenue on its own than the entire Las Vegas strip.

The success of casinos in Macau is obviously due to tourism and to the large number of Chinese residents coming to the Island to gamble and be entertained. It is estimated that 70% of visitors in Macau come from China, and they are mainly the Chinese super-rich. And when they come to Macau to gamble, it’s all they do, up to 12, even 15 hours a day. The success is also linked to the soaring inflation in China. With interest rates on saving account at only 2.5 per cent, more and more Chinese residents choose to gamble their savings at the casino rather than keep their money in a savings account offering little return. Mainland Chinese come to Macau to gamble hoping that their winnings will offer a better investment than low rate bank accounts. It’s also important to note that some of the money being gambled is linked corruption in China and un-taxed activities. Gambling the money at the casino is a good of laundering large amounts of money for some people. They even have access to private VIP rooms if they need to operate in a discreet environment.

The most popular casino game played in Macau is Baccarat and this casino game alone can represent up to 75% of a casino’s revenue. It is very popular amongst Chinese players as it enables them to play large sums of money with a quick pace. The casinos in Macau also offer other casino games such as slots, blackjack, roulette and boule. Every month, the sums being played on the felt tables of the casinos in Macau are staggering, around £70bn a month. It’s no wonder why shares in casino operators are among the most popular investments on the stock market. Macau’s casinos are the most profitable in the world and it has been reported that some casinos managed to repay billion-pound construction costs within a single year of operation.

Tourism and gambling are driving Macau’s economy. However, it is important to remember that there is a very large gap between rich and poor. A large part of the Macau’s workforce still struggle to make ends meet.

Will Macau remain the gambling capital of the world in years to come? It is very likely but in Singapore, two new giant casinos are already generating yearly revenue close to the whole of Las Vegas.