Open Access Open Access  Restricted Access Subscription or Fee Access

Why has Macao attracted the world-record gaming revenue?

Carlos Siu Lam

Abstract


Macao, located on the southeast coast of China, is perfectly situated to receive patrons from China about thirty years after its open-door policy in 1978 when they have accumulated significant amounts of wealth. With its gaming liberalization and the supply of such mainland Chinese patrons, Macao has become the world’s gambling capital since 2007. This article aims to analyze the major factors leading to this dominant economic performance.

 

The experience of the mainland Chinese in the Cultural Revolution and the Era of the Gang of Four has motivated them to get rich quick to enjoy the material comforts that they have been deprived. Given that baccarat has a low house edge and is easy to play, many mainland Chinese like to play baccarat in Macao. Moreover, the interaction with the card afforded by baccarat, makes patrons feel that that they can control over the gambling outcome, and this fits the mainland Chinese psychology in their attempt to win much and quick with their high stakes.

   

On the other hand, casinos have trained croupiers to make their patrons stay longer, including being polite, identifying the emotional status of patrons, managing patrons’ emotions and regulating the croupiers’ own emotions. In this way, casinos in Macao not only can make patrons experience sovereignty while in control of the staff-client interactions, but also help Macao attract the world-record gaming revenue.


Full Text:

PDF

References


DSEC(2016). Yearbook of Statistics. Retrieved 15 May, 2018:

http://www.dsec.gov.mo/Statistic.aspx?lang=en-US&NodeGuid=d45bf8ce-2b35-45d9-ab3a-ed645e8af4bb

Frenkel, S., Korczynski, M., Shire, K., and Tam, M. (1999). On the front line: Work organization in the service economy. Ithaca, NY : ILR/Cornell University Press.

Ozorio, B., and Fong, D.K.C. (2004). Chinese casino gambling behaviours: Risk taking in casinos vs. investments. UNLV Gaming Research & Review Journal, 8(2), 27-38.

Siu, R.C.S. and Eadington, W.R. (2009). Table games or slots? Competition, evolution and game preference in Macao’s casino market. Journal of Gambling Business and Economics, 3(1), 41-63.

Siu Lam, C. (2011). Frontline employees’ informal learning and customer relationship skills in Macao casinos: An empirical study. UNLV Gaming Research & Review Journal, 15(2), 35-57.

Siu Lam, C. (2013). Changes in junket business in Macao after gaming liberalization. International Gambling Studies, 13(3), 319-337.

Siu Lam, C., and Crossley, J. (2014). Las Vegas versus Macao as diversified tourist destinations. Journal of Tourism Insights 5(1), Article 5.

Todd, A. (2010). Top-10 lowest house edge casino games. Casino City Times, October 18, 2010. Retrieved 15 March 2018:

http://aarontodd.casinocitytimes.com/article/top-10-lowest-house-edge-casino-bets-59118

Wang, W., and Eadington, W. (2007). VIP-room contractual system of Macao’s traditional casino industry. UNR Economics working paper no. 07-001. University of Nevada, Reno.

Wertz, R.R. (n.d.). Politics: Rebellion and revolution. Exploring Chinese History. Retrieved 18 March 2017:

http://www.ibiblio.org/chinesehistory/contents/03pol/c03s10.html

Wong, E., Ko, L., and Lam, F. (2005). Macao gaming – Let the games begin. Hong Kong: UBS Investment Research.

Yu, A.B. (1996). Ultimate life concerns, self, and Chinese achievement motivation. In M.H. Bond (ed.), The Handbook of Chinese Psychology. Hong Kong: Oxford University Press.




DOI: http://dx.doi.org/10.5750/jgbe.v12i2.1635

Refbacks

  • There are currently no refbacks.