The lifting of gambling operating restrictions in Macao this year ends a 72-year history of monopoly for the industry. Observers say that the transition in the last year to an open market has been smooth and reflects a state of good health for the industry in the region.
February 8 has particular significance for the gambling fraternity there as that is the date that the Macao Special Administrative Region (MSAR) broke a 72-year monopoly and issued three new gambling licenses. Macao Gaming Company, Wynn Resorts (Macao) Ltd. and Galaxy Casino Company Ltd. were the three companies awarded operating permission.
The transition to an open market is being widely seen as the end of an era and start of a bright future for the economy of Macao.
The progress in the gambling sector has been initiated by the MSAR government who was keen to develop and update the industry. They have joined forces with the three new licensees and have the common goal of Macao?s future to drive their collective strategy.
The operational partnership has allowed the new licensees to run the casinos and to improve and bring right up-to-date the equipment and d?cor of the venues. Since then, the industry has been making rapid growth. This rapid advance and growth in the sector is thanks to the secure state of Macao?s tourist industry
In cooperation with the labor unions and the MSAR government, Macao Gaming Company has tried to solve many of the problems and past disputes of the industry.
The Wynn Resorts (Macao) Ltd. and Galaxy Casino Company Ltd. have yet to establish an operation in Macao, instead giving over time to preparation in advance of production.
In the past year, Macao?s operational rights production has seen significant progress. Gross income and gambling tax revenues were up on previous years with expectations exceeded by 1.5 billion Macao Pataca to an all time high of 7.64 billion Macao Pataca. Although gambling tax is rarely consistent, it is useful as a comparative economic indicator.
What is easy to measure however is that competition is good for any industry and that a buoyant and healthy state in a sector often assures its longevity.
(China.org.cn by Tang Fuchun, February 18, 2003)
