Gambling revenue will grow to $155 billion in 2012 from a 2007 revenue of $114 billion with an annually rate of 6.5 percent per year, says PricewaterhouseCoopers LLP in a report released this week.

Asia, and especially Macau, will be the world’s fastest growing gambling region.

In accordance with this report, the US revenue will decline in 2008, due to the mortgage crisis and high gas and travel price. But, starting with 2010, Las Vegas will expects a new raise.

Online gambling and sports betting is expected to have a 4.9% yearly increase in Europe, the Middle East and Africa, and a 4.5% yearly increase for the US tribal casinos. The most important increase for US is predicted for sports betting, rising 7% to $7.6 billion in 2012.

Poker Stars started a new experience, beginning to operate a poker room in Cotai Strip (Dubbed PokerStars Macau), at Grand Waldo Hotel and Casino (25 tables, 250 players, cash games and tournaments).

The poker room was launched this week with a No-Limit Texas Hold’em Charity Poker tournament, for the victims of the recent earthquake in China. Participants competed for HKD $150,000 in prizes, including entries to the $25 000 HKD buy-in September’s APPT Macau event, which features an HKD $25,000 buy-in. That event runs September 1-6, 2008 and has a guarantee of HKD $10,000,000.

“PokerStars is committed to the development of poker in Asia” said Joe Hachem, Poker World Champion and member of Team PokerStars Pro.

Airbus is in discussion with more clients interested to use the world’s biggest passenger plane, Airbus superjumbo A380, into a flying casino.

David Velupillai, marketing director for Airbus’s executive and private aviation division, said a fully-fitted casino could be delivered as early as 2012.

The gambling “is clearly a growing business in Asia and what this interest reflects is what is happening in Macau and Singapore. The idea of a flying casino has been mentioned before but it’s now looking a lot more concrete,” said the head of Airbus’ Executive and Private Aviation Division, Francois Chazelle.

The most important destination for the future casinos will be Asia, especially Macau.

Las Vegas Sands Corp., a hotel, gaming, and resort development company headquartered in Las Vegas, Nevada and owning The Venetian Resort Hotel Casino, the Sands Expo and Convention Center, and Venetian Macao Limited, a developer of multiple casino hotel resort properties in The People’s Republic of China’s Special Administrative Region of Macao, hopes to launch VIP charter flights between Hong Kong and Las Vegas featuring baccarat tables in Lockheed Martin planes, in accordance with a South China Morning Post

Interesting change, isn’t it? It seems that starting with this year, Las Vegas will be no more the capital of the gambling world. The Sin City is growing old.

In accordance with Macau’s Gaming Inspection and Coordination Bureau, casinos in Macau took in gross gambling revenue of $10.4 billion in 2007, up 47 percent from about $7.05 billion the year before. Four new casinos opened on Macau last year. At the end of December, Macau had 4,375 gaming tables and 13,267 slot machines in 28 casinos, up from 2,762 tables and 6,546 slots in 24 casinos a year before.

Minimum bets in the Chinese territory usually set at US$12.85, compared with a less than US$1 in some Vegas locations, allow Macau to take in far more per customer and per table than Las Vegas, says Asian Times.

“Macau has built properties based on Las Vegas’s 30 years of experience, but the Chinese market doesn’t have any experience with the Vegas product,” Andy Nazarechuk, dean of the University of Nevada Las Vegas-Singapore’s William F. Harrah College of Hotel Administration, said. “Once they learn, there will be money to be made.”

Las Vegas is growing much more slowly, and it is not entirely its fault. It is the US general policy about gambling that makes the US gambling to slow down every year. Including the policy for online gambling. At a first glance, UIGEA helped Las Vegas and the other US land casinos.

The true is, the US gambling industry lost its way during the last years, and now it tries to find it again. I am not talking about the companies, that expanded their activity in all the world, but about the US internal gambling market. The development of the Indian casinos is part of this process.

Las Vegas, billed as The Entertainment Capital of the World, is famous for massive and lavish casino resorts, the unrestricted availability of alcoholic beverages (as is true throughout Nevada), and adult entertainment. Once officially referred to as Sin City, this image made Las Vegas a popular setting for films and television programs. The major attractions in Las Vegas are the hotels. The most famous hotels line Las Vegas Boulevard South, also known as the Las Vegas Strip. Many of these hotels carry thousands of rooms and are featured on various themes. There are, of course, large casino areas in these hotels as well. There are many hotel casinos in the city’s downtown area as well, which was the original focal point of the city’s gaming industry in its early days. Several large hotels and casinos are also located somewhat off the Strip but adjacent to it, as well as in the county around the city. (Wikipedia)

It seems that it is very hard to make predictions on gambling, this year even more difficult than the other years, and online gambling much more difficult than the classical gambling.

008 will be a very good year for the land casinos. Las Vegas has some big problems that will allow to other entertainment centers to compete successfully with the Sin City.

After several years of standby, Atlantic City will know in 2008 a new development period by building new casinos and improving the old ones.

But Macau will be the star of this year, with the most new projects for casinos, hotels and entertainment resorts. Cotai Strip will be the new center of the gambling world.

The Europeans will have their own Las Vegas too, soon. Gran Scala in Spain is a very ambitious project. This year we will see if it is a certitude for the next years, or just a chimera.

And, to not forget Russia! Russia made no major step till now, but it is very close to invest a lot of money. And, what about the Arabian gambling? Do you bet on the development of a very powerful casino entertainment center in Dubai? The partnership with MGM Mirage is just the beginning. I know about the Islamic rules, but I bet on it.

For me, a big surprise for this year is Harrah’s Entertainment. No big new projects and, at the end of the last year, the bomb (in fact, expected since a year ago): new owners for the casino and hotel resort chain of the world’s largest provider of branded casino entertainment. The surprise is even bigger taking into consideration the successful act of online gambling ban (see UIGEA). So, my prediction is that MGM Mirage will become soon #1 in the casino entertainment industry.

As for online gambling, very bad news, unfortunately. After UIGEA in US, Canada intends to ban the online gambling too, Germany already announced the interdiction for online gambling as well as for advertising the web/based gambling. There are signs that Italy will be soon with Germany on the same part of the barricade and, from the East European countries, Romania has a draft law to ban online gambling and any other related activity since two years ago, so it is possible to discuss it very soon. In this situation, and after the agreement with US, the European Commission it is possible to change its rules about online gambling even this year. I see UK the only country of the European Union that will allow the online gambling in the near future.

It is very interesting how United States, after deciding to ban the online gambling, and by means of the media, it is very close to change the mentality and principles of the whole world about online gambling. Most of the people considered online gambling a way of entertainment as any other, two years ago. Now, the same people are very convicted that they always was against online gambling and online casinos.

A special situation for online poker. If the online poker associations from US will earn the battle to allow this game on Internet (and it is a very powerful lobby for this), all the other countries, including Germany and Canada, will say that they never banned the online poker and will make an exception from the rules. But this will not happen, anyway, this year.

But we will see a spectacular increase of the skill games.

In fact, in the United States the future of the online gambling will be decided during and after the elections stated for this year, 2008. So, when you will vote, take into consideration your own option for online gambling, too.

(These predictions are based on my own experience, do not include any other considerations, I do not claim to be in accordance with the future events, I am not implied in the gambling industry except as a publisher, and I do not advice you to use it)

Egypt intends to restrict the right to make copies of its ancient monuments by extending the copyright above 3000 years, claiming royalties for using likenesses of the Sphynx and the pyramids.So, casinos from Las Vegas, Atlantic City, Macau, future Gran Scala or any other entertainment center, will have to pay a royalty for using copies of Egyptian copyrighted monuments or museum pieces.

Zahi Hawass, head of Egypt’s Supreme Council of Antiquities, said his country wanted to own the copyright to its historic monuments and would use any money raised to pay for the upkeep of its most prestigious sites.

“Even if it is for private use, they must have permission from the Egyptian government,” he told the BBC. “The new law will completely prohibit the duplication of historic Egyptian monuments which the Supreme Council of Antiquities considers 100-percent copies,… If the law is passed then it will be applied in all countries of the world so that we can protect our interests”

The discussion about copyrighting the pyramids started short time after some complaints in the Egyptian newspapers that many more tourists visit every year the casinos inspired from the Egyptian monument than the original monument, making reference at the Luxor Hotel in Las Vegas.

MGM Grand Macau officially opened its doors these days to thousands of guests eager to experience the burgeoning gaming destination’s latest grand resort. With 600 rooms, MGM Grand Macau resort casino marks the powerful partnership’s first venture into the rapidly growing Macau gaming market, setting a new standard of luxury in Asia.

“We have long anticipated this moment,” said Terry Lanni, Chairman and CEO of MGM Mirage. “It marks the beginning of a new era, both for our company and for the Macau gaming market. We’ve been eager to demonstrate the combined capabilities of our partnership and this striking resort is testament to what we can achieve together. We are confident our efforts brought satisfaction to our many guests who celebrated with us tonight and will continue to do so for the many who visit Macau in the future. We look forward to showcasing to the world what we have created.”

Pansy Ho Chiu-king, Managing Director of MGM Grand Paradise, added, “Through our partnership, MGM Mirage and I wish to bring about a brand new experience for tourists in Macau. The pleasurable experience of our guests will encourage repeated visits and a positive word-of-mouth reputation for both MGM Grand Macau and Macau.”

MGM Grand Macau features suites and villas; a grand casino offering approximately 375 table games, 900 slot machines and 16 private gaming salons for preferred customers; and the signature Grande Praca showcasing Portuguese-inspired architecture, dramatic landscapes and a glass ceiling rising 25 meters (82 feet) above the floor of the resort.

The 35-story resort also includes convertible convention space, world- class spa and swimming pool facilities, and a variety of restaurants that continue in the MGM Grand tradition of culinary talents celebrating the diversity of international tastes and influences. These unique elements, combined with the high-quality service provided by its 6,000 employees will define this new resort.  Initial plans calls for a 222,000 square foot split-level casino, with 385 table games and 1,000 slot machines. The property will also include a 1500-seat theater, a 5500-square foot nightclub, 13,500 square feet of meeting and convention space including an 11,000 square foot ballroom, a 25,000-square-foot spa, and nine restaurants, including one on the roof with views of the city and the harbour.

MGM Grand Paradise Limited is a join venture owned and jointly operated by MGM Mirage (the world’s No.2 casino operator) and Ms. Pansy Ho Chiu-king. It was formed to develop, build and operate resort casinos in Macau S.A.R under a sub-concession agreement approved by the Macau government. The total cost of the project is budgeted at USD $1.27 billion.

Wynn Macau resort will add 85 gaming tables and 551 slot machines in an expansion scheduled to open Monday

The expansion, which also features a new rotunda entrance, brings the casino resort’s total to 390 tables and 1,190 slot machines.

This casino will also be connected to the future Mandarin Oriental Hotel, which is expected to open close to the Nape waterfront district in 2009 as Macau’s second Mandarin Oriental property.

The Mandarin Oriental Hotel Group (MOHG) is a hotel management company which is part of Jardine Matheson Holdings Limited and is formally known as Mandarin Oriental International Limited.

Another casino will be opened in 2008 by Four Seasons Hotels, Inc., a five-star Canadian-based international luxury hotel chain. It is considered among the finest luxury hotel chains worldwide, according to Travel + Leisure magazine and Zagat Survey, and operates 55 AAA  five diamond properties in major cities and resort destinations in 18 countries. It is also the particular hotel of choice for many celebrities and members of royal families.

In 2009 will be opened Grand Hyatt operated by Global Hyatt Corporation. Hyatt is a part of the Marmon Group which is owned by Chicago’s Pritzker Family. Grand Hyatt hotels have higher standards and are generally larger than typical Regency hotels.

Virgin Group is in the latter stage of negotiation to secure land in Macau, where he is going to set up a US$3 billion casino resort complex.. Virgin Group Ltd is a conglomeration of separately run companies that each use the Virgin brand of British celebrity business tycoon Sir Richard Branson.

About Macau:

澳門特別行政區
Região Administrativa Especial de Macau
Macau Special Administrative Region

• Official languages: Chinese, Portuguese
• Government Chief Executive: Edmund Ho Hau-wah
• Establishment:
  • Occupied by Portugal 1557
  • Portuguese colony August 13, 1862
  • Transfer of sovereignty December 20, 1999
• Area: Total 28.6 km²
• Population 2007 (1st qtr) estimate: 520,400 (167th)
• Density: 17,310/km² (2nd)
• GDP (PPP): 2006 estimate
  • Total US$14.3 billion (139th)
  • Per capita: US$28,436 (2006)
• Currency: Macanese pataca (MOP)
• Time zone: MST (UTC+8)
• Internet TLD: .mo
• Calling code: +853

The Macau Special Administrative Region, commonly known as Macau or Macao (Chinese: 澳門), was established on December 20, 1999, as one of the two special administrative regions (SARs) of the People’s Republic of China (PRC), the other being Hong Kong. Macau has thriving industries such as textiles, electronics and toys, as well as a notable tourist industry, which boasts a wide range of hotels, resorts, stadiums, restaurants and casinos.

The headquarters of Macau Government

The Sino-Portuguese Joint Declaration and the Basic Law of Macau stipulate that Macau operates with a high degree of autonomy until at least 2049, fifty years after the transfer, under the policy of “one country, two systems”. The Central People’s Government is responsible for the territory’s defence and foreign affairs, while Macau maintains its own legal system, police force, monetary system, customs policy, immigration policy, and delegates to international organisations and events.

The Legislative Assembly of Macau

Macau’s economy is based largely on tourism, much of it geared toward gambling. From 9.1 million visitors in 2000, arrivals to Macau has grown to 18.7 million visitors in 2005, 21.98 million visitors in 2006 and is expected to receive between 24 and 25 million visitors in 2007, with over 50% of the arrivals coming from mainland China. Macau also received the Future Award 2007, for being regarded the most promising future tourism destination in Asia Macau is currently rated as one of the world’s top tourism destinations by the World Tourism Organisation.

Macau center

Since 1850, gambling has been licensed and has always been an important source of earning for the government. In the early 1960s, gambling provided 50 percent of official revenue. Starting in 1962, the gambling industry had been operated under a government-issued monopoly license by Stanley Ho’s Sociedade de Turismo e Diversões de Macau. The monopoly was ended in 2002, and several casino owners from Las Vegas attempted to enter the market. With the opening of the Sands Macau, the largest casino in the world as measured by total number of table games, in 2004 and Wynn Macau in 2006, gambling revenues from Macau’s casinos were for the first time greater than those of Las Vegas Strip (each about $6 billion), making Macau the highest-volume gambling centre in the world.

In 2007, The Venetian Macau, the second largest building in the world, opened its doors to the public. Other casinos and hotels slated to be opened through 2009 are: Four Seasons (2008), MGM Grand Macau (2007), Ponte 16 (2007), Far East Consortium Complex (2007), Grand Hyatt (2009), Galaxy Cotai Megaresort (2008), City of Dreams (2008), Oceanus (2008), Mandarin Oriental (2009). The first Phase of Macau’s Cotai Strip is scheduled to open in 2007 and will include 19,000 guest rooms throughout seven resort hotels, with the $1.8 billion Venetian Macao serving as the anchor. The head of Virgin Group Sir Richard Branson is in the latter stage of negotiation to secure land in Macau, where he is going to set up a US$3 billion casino resort complex. As a result, Macau’s economy is growing rapidly due to gambling related tourism and construction from the new casino entrants. Macau is still the only place in the People’s Republic of China where casinos are legal.

Gondola ride in the Venetian

Cotai Strip

The Cotai Strip is the name of the casino and tourism district of Cotai, Macau. The development of this area was inspired by the Las Vegas Strip in Las Vegas, Nevada, USA.

Here it is a list of casinos and hotels by Macau Concessionaire:

Las Vegas Sands

• 7 resort hotels
• 20,000 hotel rooms
• Over 1.5 mm sq ft of casino space
• Over 3.0 mm sq ft of MICE space
• 25,000 seats for live entertainment
• 3.0 mm sq ft of retail space
• Over 4.0 mm sq ft of vacation suites

• Site 1 = The Venetian Macao
• Site 2 = Four Seasons Hotel Macau
• Site 3 = Far East Consortium
• Site 4 = City of Dreams (see Melco-PBL below)
• Site 5 = Shangri-La and Traders
• Site 6 = Sheraton and St. Regis
• Site 7 = Hilton and Conrad
• Site 8 = Fairmont and Raffles

Melco-PBL

• City of Dreams
• Macau Studio City (Melco-PBL will not own this but will manage the casino) (Hotels on the site include The Ritz-Carlton Macau, Macao Marriott Studio City, and W Macau – Studio City)

Galaxy entertainment

• Grand Waldo Hotel
• Cotai Mega Resort (aka GalaxyWorld Resort)

MGM Grand Paradise

• Nothing official announced yet but has stated that they plan to build a casino on Cotai

Wynn Resorts

• Owns land on Cotai and has stated that they plan to build one casino resort that will be “the most beautiful hotel on earth”.^[5]

Harrah’s Entertainment

• Owns the Macau Orient Golf Course on Cotai, adjacent to the Lotus Bridge and across from Macao Studio City. Has not announced any plans other than to operate it as a golf course for time being.

Macau gaming law

In the Macau legal system, gaming law is not considered as a branch of law in the traditional sense. Instead, it may be considered as a transversal gathering of a range of legal topics more or less directly related to gaming, including constitutional law, administrative law, tax law, company law, contract law and criminal law. In this manner, issues of public law as well as private law are of relevance for gaming.

In the Macau SAR, the regulation of gaming is premised on administrative law concepts which are similar to other civil law jurisdictions. From the perspective of administrative law, gaming is based on the concept of administrative concessions (and sub-concessions), supervision of concessionaires, and powers of government intervention. Gaming law in Macau is currently being reformed. Immediately after the transfer of sovereignty the Government of the Macau SAR has embarked in a major overhaul of the gaming sector, by opening the sector to various operators so as to generate competition. This has meant the granting of various concessions and subconcessions to operators other than the historical operator.

As a result, there are currently six concessions and subconcessions of casino games of fortune: Sociedade de Jogos de Macau (known as SJM; headed by Stanley Ho); [Galaxy Casino] (a subsidiary of Galaxy Entertainment Group, from Hong Kong); Wynn Resorts (of Steve Wynn); Venetian Macau (Sheldon Adelson); a partnership of MGM with Pansy Ho (daughter of Stanley Ho); and a partnership of Melco and PBL of Australia. There are also monopoly concessions for pari-mutuels (horse and dog racing), lotteries and sports betting.

Each of these operators has signed a concession contract with the Macau SAR; the text of such contracts can be seen in the website of the Macau Gaming Inspection (see links below).

Concessions allow the opening of more than one casino.

Regarding gaming promoters, from an administrative law perspective the prime issue is their licensing and regulation, which was initiated in 2002. Gaming promoters are subject to a licensing system rather than to a system of concessions. The main applicable law is Administrative Regulation no. 6/2002. Lists of gaming promoters currently authorized are available in the website of the Macau Gaming Inspection (see links below).

From the perspective of company law, gaming concessionaires must be public companies, to which special rules apply, in addition to the general rules stated in the Macau Commercial Code 1999, as amended. There are also specific company law rules related to gaming promoters.

The taxation of casino sub/concessionaires is made of a fixed part and a variable part. The variable part falls on the gross gaming revenue. The tax rate is currently of 35%, plus two contributions of up to 2% and 3% for social and economic purposes. The maximum tax is therefore 40%. In addition, a fixed premium is also payable, plus a premium per VIP table, other table, and slot machine. Gaming promoters pay taxes on commissions received.

From the perspective of contract law, gaming and betting are contracts which may or may not generate civil or natural obligations for the parties. The matter is regulated in the Civil Code 1999 (art. 1171), which states, drawing from Roman law, that gaming and betting generate natural obligations except in sports competititions and where the law provides otherwise. The problem is that gaming legislation currently does not provide to this effect.

Regarding credit for gaming, Macau law states since 2004 that the granting of credit for casino games of fortune generates civil obligations, which are fully enforceable in Macau courts. Credit for casino games of fortune is defined as any case where chips are passed on to a player without immediate cash payment of such chips; this is an intentionally broad concept. Credit for gaming is regulated by Law no. 5/2004, of June 14.

From the perspective of criminal law, there are specific criminal offences related to gaming; see Law 8/96/M, of July 22, and Law 9/96/M, of July 22. Other criminal law matters are covered by broader laws: the Penal Code and the law on organized crime. Game cheating is mentioned in art. 6 of Law 8/96/M, of July 22. In addition, general laws on the prevention and repression of money laundering and the financing of terrorism through casinos apply.

Competition law matters, and advertising law, as well as the impact of WTO law on gaming, may also be pointed out as part of gaming law. Regarding online gaming, the Macau SAR does not currently grant concessions for online casinos. The current casino concessions only cover land-based gaming, not online gaming.

(Some images and texts adapted from Wikipedia)

Type of the company: Public (NYSE: MGM)
Founded: 2000
Headquarters: Las Vegas, Nevada
Key people: Terrence Lanni (CEO)
Industry: Casinos and hotels
Products: Hotels
Revenue: $7.4 billion USD
Employees: over 70,000
Website: www.mgmmirage.com

MGM Mirage is a Las Vegas – based business engaged in the development, ownership and operation of hotels and casinos. The company began operations on May 31, 2000 by the merger of MGM Grand Inc. and Mirage Resorts, Inc. It is currently the second largest gaming company in the world.

MGM Mirage has significant holdings in gaming, hospitality and entertainment, owns and operates 17 properties located in Nevada, Mississippi and Michigan, and has 50% investments in four other properties in Nevada, New Jersey, Illinois and Macau. MGM Mirage is developing major casino and non-casino resorts, separately and with partners in Las Vegas, Atlantic City, the People’s Republic of China and Abu Dhabi, U.A.E.

MGM Mirage properties:

• Bellagio Hotel/Casino
• Circus Circus
  • Slots-A-Fun Casino
• CityCenter
• Excalibur
• Luxor
• Mandalay Bay
  • THEhotel at Mandalay Bay
• MGM Grand Las Vegas
  • The Signature at MGM Grand
• The Mirage
• Monte Carlo Hotel/Casino
• New York-New York Hotel/Casino
• Treasure Island