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Macau aims to control darker sides of gambling's growth | Macau aims to control darker sides of gambling's growth |
(about 17 hours later) | |
By Katie Hunt Business reporter, BBC News, Macau | By Katie Hunt Business reporter, BBC News, Macau |
Every day people pour over the Chinese border in their tens of thousands to be greeted by pretty girls handing out fan-shaped flyers, discount coupons and free rides to the city's 34 casinos. | Every day people pour over the Chinese border in their tens of thousands to be greeted by pretty girls handing out fan-shaped flyers, discount coupons and free rides to the city's 34 casinos. |
The high rollers arrive by private jet or helicopter and are chauffeured straight to their private VIP gambling rooms, where bets can be as much as $250,000 (£155,000) a hand. | The high rollers arrive by private jet or helicopter and are chauffeured straight to their private VIP gambling rooms, where bets can be as much as $250,000 (£155,000) a hand. |
Others seek out the pole-dancing shows or go shopping in the luxury malls. But mostly they stick to the tables, where baccarat is the game of choice. | Others seek out the pole-dancing shows or go shopping in the luxury malls. But mostly they stick to the tables, where baccarat is the game of choice. |
Welcome to Macau - the world's gambling capital. | Welcome to Macau - the world's gambling capital. |
The only place in China where casinos are legal, it is a kitsch-filled neon-lit monument to the country's new-found prosperity and the Chinese appetite for gambling | The only place in China where casinos are legal, it is a kitsch-filled neon-lit monument to the country's new-found prosperity and the Chinese appetite for gambling |
Gaming revenues in this former Portuguese territory surpassed Las Vegas in 2007 and are expected to be almost five times bigger in 2011. | Gaming revenues in this former Portuguese territory surpassed Las Vegas in 2007 and are expected to be almost five times bigger in 2011. |
"The growth of Macau has astonished everyone," says Robert Drake, a Las Vegas veteran, who is now the chief financial officer of Galaxy Entertainment. | "The growth of Macau has astonished everyone," says Robert Drake, a Las Vegas veteran, who is now the chief financial officer of Galaxy Entertainment. |
Galaxy runs six casinos in Macau, including the $1.9bn Galaxy Macau that opened last month. | Galaxy runs six casinos in Macau, including the $1.9bn Galaxy Macau that opened last month. |
Fast and furious | Fast and furious |
There are fears Macau's growth has been too fast and furious, and the territory is now making efforts to slow the industry's expansion and diversify its appeal. | There are fears Macau's growth has been too fast and furious, and the territory is now making efforts to slow the industry's expansion and diversify its appeal. |
China's leaders in Beijing are concerned corrupt officials are squandering public money in the casinos. | China's leaders in Beijing are concerned corrupt officials are squandering public money in the casinos. |
And in Macau people are concerned about the rising incidence of human trafficking, drug use and the impact on a younger generation that work and gamble in the casinos. | And in Macau people are concerned about the rising incidence of human trafficking, drug use and the impact on a younger generation that work and gamble in the casinos. |
Less than a decade ago, Macau had just one casino operator - billionaire Stanley Ho. | |
Macau's economy has boomed since his monopoly came to an end in 2002, opening up the market to big Las Vegas names like Wynn, MGM and Sands. | Macau's economy has boomed since his monopoly came to an end in 2002, opening up the market to big Las Vegas names like Wynn, MGM and Sands. |
It has been a windfall for Macau's government that takes 40% of operators' gambling revenue. | It has been a windfall for Macau's government that takes 40% of operators' gambling revenue. |
But the government now thinks growth has become lop-sided. | But the government now thinks growth has become lop-sided. |
Last year, it announced it would withhold approval of new projects and cap the number of gambling tables at 5,500 until 2013. | Last year, it announced it would withhold approval of new projects and cap the number of gambling tables at 5,500 until 2013. |
"We are not saying we want to put a freeze on gambling but casinos will have to become smaller," says Manuel Joaquim das Neves, the head of Macau's Gaming Inspection and Co-ordination Bureau. | "We are not saying we want to put a freeze on gambling but casinos will have to become smaller," says Manuel Joaquim das Neves, the head of Macau's Gaming Inspection and Co-ordination Bureau. |
"Casinos of 1,000 tables will be no more." | "Casinos of 1,000 tables will be no more." |
High-rollers | High-rollers |
The government also wants to reduce the casino industry's reliance on the high-spending gamblers visiting from mainland China who account for more than two-thirds of casino revenues. | The government also wants to reduce the casino industry's reliance on the high-spending gamblers visiting from mainland China who account for more than two-thirds of casino revenues. |
A 2010 study by Macau Polytechnic Institute suggests that 47% of these Chinese high-rollers are either government officials or senior managers in state-run companies. | A 2010 study by Macau Polytechnic Institute suggests that 47% of these Chinese high-rollers are either government officials or senior managers in state-run companies. |
"Beijing is concerned about the mainland officials that use the public money to gamble in Macau," says Ricardo Siu, a specialist in the casino industry at the University of Macau. | "Beijing is concerned about the mainland officials that use the public money to gamble in Macau," says Ricardo Siu, a specialist in the casino industry at the University of Macau. |
In one high-profile case, Li Weimin, a mayor of small town in Guangdong, lost $12m and was sentenced to 20 years in prison. | In one high-profile case, Li Weimin, a mayor of small town in Guangdong, lost $12m and was sentenced to 20 years in prison. |
What's more, many high-rollers travel on junkets run by companies that lend them money to gamble and then collect debts once they return. | What's more, many high-rollers travel on junkets run by companies that lend them money to gamble and then collect debts once they return. |
It is a system that circumvents China's strict controls on the flow of money but the sometimes shady junket companies are thought to be connected to Macau's triad underworld. | It is a system that circumvents China's strict controls on the flow of money but the sometimes shady junket companies are thought to be connected to Macau's triad underworld. |
Social fabric | Social fabric |
Macau is also worried about the impact the casinos are having on young people. | Macau is also worried about the impact the casinos are having on young people. |
Under a draft law expected to come into force this year, the minimum age for working and entering a casino will be raised to 21 from 18. | Under a draft law expected to come into force this year, the minimum age for working and entering a casino will be raised to 21 from 18. |
The law aims to encourage them to go into higher education and to avoid exposing youngsters to the casinos at an age when problem gambling is more likely to develop. | The law aims to encourage them to go into higher education and to avoid exposing youngsters to the casinos at an age when problem gambling is more likely to develop. |
Ricardo Siu at the University of Macau, says he has detected a change in attitude among his students, who on graduation get management jobs handed to them on a plate. | Ricardo Siu at the University of Macau, says he has detected a change in attitude among his students, who on graduation get management jobs handed to them on a plate. |
"They know they will get a job in a casino and have a pretty good life," he says. | "They know they will get a job in a casino and have a pretty good life," he says. |
"There's less drive to compete and no spirit of entrepreneurship." | "There's less drive to compete and no spirit of entrepreneurship." |
Macau's residents are also concerned about cases of drug abuse and drug-related crime, which both rose last year, and the trafficking of women into prostitution. | Macau's residents are also concerned about cases of drug abuse and drug-related crime, which both rose last year, and the trafficking of women into prostitution. |
A 2010 report by the US government says that women from mainland China, Mongolia, Russia and South East Asia fall prey to false adverts for casino jobs. | A 2010 report by the US government says that women from mainland China, Mongolia, Russia and South East Asia fall prey to false adverts for casino jobs. |
"Foreign and mainland Chinese women are sometimes passed to local organised crime groups on arrival, held captive and forced into sexual servitude," it says. | "Foreign and mainland Chinese women are sometimes passed to local organised crime groups on arrival, held captive and forced into sexual servitude," it says. |
New casino | New casino |
The executives behind Macau's newest casino, the Galaxy Macau, are happy to follow the government's strategy to move away from city's entrenched gambling culture. | The executives behind Macau's newest casino, the Galaxy Macau, are happy to follow the government's strategy to move away from city's entrenched gambling culture. |
With 2,200 hotel rooms, 50 restaurants and a roof-top wave pool with artificial beach, they are banking that punters will be as keen to dine, shop and relax as to try their luck on the casino floor. | With 2,200 hotel rooms, 50 restaurants and a roof-top wave pool with artificial beach, they are banking that punters will be as keen to dine, shop and relax as to try their luck on the casino floor. |
"From the outset we wanted to be a resort," says Francis Lui, Galaxy Entertainment's vice chairman. We believe we could do a lot of things not done in Macau before." | "From the outset we wanted to be a resort," says Francis Lui, Galaxy Entertainment's vice chairman. We believe we could do a lot of things not done in Macau before." |
A whiskey bar modelled on a Scottish castle and a Banyan Tree spa are other draws. | A whiskey bar modelled on a Scottish castle and a Banyan Tree spa are other draws. |
Mr Lui wants to make Macau a weekend destination for Asians - not a day trip for hard-core gamblers from China and Hong Kong, who currently make up 80% of the 25 million visitors each year. | Mr Lui wants to make Macau a weekend destination for Asians - not a day trip for hard-core gamblers from China and Hong Kong, who currently make up 80% of the 25 million visitors each year. |
The white-and-gold building rises from a strip of smog-cloaked reclaimed land, and is designed to resemble an Asian palace. In the lobby, a massive fountain turns into a roulette wheel during a light show. | The white-and-gold building rises from a strip of smog-cloaked reclaimed land, and is designed to resemble an Asian palace. In the lobby, a massive fountain turns into a roulette wheel during a light show. |
It has some of the glitz and glamour lacking at the places popular with day-trippers from China, such as Grand Lisboa where people drink jasmine tea out of plastic beakers and smoke endless cigarettes. | It has some of the glitz and glamour lacking at the places popular with day-trippers from China, such as Grand Lisboa where people drink jasmine tea out of plastic beakers and smoke endless cigarettes. |
The Galaxy Macau also hopes to retain a distinctly Asian feel that has been lacking at some of the resorts built by the big Las Vegas firms operating in Macau such as The Venetian, which has a shopping arcade modelled on Venice. | The Galaxy Macau also hopes to retain a distinctly Asian feel that has been lacking at some of the resorts built by the big Las Vegas firms operating in Macau such as The Venetian, which has a shopping arcade modelled on Venice. |
However, as you watch the intensity of the gamblers playing baccarat on a Friday afternoon, it's hard to imagine that sales of spa treatments, slap-up meals and luxury hotel stays will even begin to approach the revenue from the gaming tables. | However, as you watch the intensity of the gamblers playing baccarat on a Friday afternoon, it's hard to imagine that sales of spa treatments, slap-up meals and luxury hotel stays will even begin to approach the revenue from the gaming tables. |
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