China Gambling to Surpass Las Vegas?

The world economy may be slumping, but don't tell that to Macau -- the former Portugese colony which is set to trump Las Vegas heading out of the worst global downturn since the Great Depression.

In the smoke-filled gambling halls of Macau's MGM Mirage casino, hundreds of Chinese gamblers were crammed around tables flipping cards, playing roulette and rolling dice on a recent day, seemingly unaffected by the slowdown.

The ace up the sleeve of Macau, the world's biggest gambling market, is this steady influx of risk-loving Chinese flocking to the only place in China where casinos are legal. Las Vegas, on the other hand, is saddled with a stagnant U.S. economy and glut of new casinos preparing to enter the market.

"We've seen better-than-expected performance in the overall gaming market of Macau," said Credit Suisse analyst Gabriel Chan. "Vegas is still suffering and will take a longer time to recover, but in Macau, we are beginning to see the light at the end of the tunnel."

Macau, a special administrative region that is now under Chinese rule, will be more resilient than Las Vegas thanks to its proximity to China, which is propping up its economy with a massive 4 trillion yuan ($586 billion) stimulus package to offset a big drop in exports, analysts said.

For the complete story, please see Sui-Lee Wee and Deena Beasley, China ties make Macau casinos good bet to beat Vegas, Reuters, May 26, 2009.