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FleaStiff
FleaStiff
Joined: Oct 19, 2009
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January 4th, 2013 at 3:36:52 PM permalink
The Chinese are inveterate gamblers, the Chinese New Year is famous as a time of virtually non-stop gambling.

The ordinary Chinese who are now able to hop aboard a super-train will feed the casinos but the zillions of corrupt officials will be pouring the real money into the casinos.

By the time things dampen in the Far East, Las Vegas will be rebounding too.
pacomartin
pacomartin
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January 5th, 2013 at 2:53:23 AM permalink
Quote: FleaStiff

By the time things dampen in the Far East, Las Vegas will be rebounding too.



It depends on what you mean by "rebound". It is still far away from it's record highs 5 years ago.

Nevada scorecard on the 5 year anniversary of the peak gaming revenue of $13 billion. Revenue has returned to $10.85 billion.
Outside of Baccarat clear gains, 3 Card Poker and Roulette are the only two table games headed back to their pre-depression high.

Change in millions of dollars per year ( in percent)
+$382 BACCARAT , 39.1%
-$463 TWENTY-ONE , -31.7%

+$3 BINGO , 67.6%
-$18 LET IT RIDE , -27.8%
-$18 3-CARD , -10.5%
-$21 KENO , -40.0%
-$21 PAIGOW , -56.8%
-$24 PAIGOW POKER , -18.2%
-$40 ROULETTE , -10.6%
-$65 MINI-BACCARAT , -44.0%
-$77 CRAPS , -16.3%
-$14 OTHER GAMES , -8.8%
-$295 MINOR GAMES -18.1%

-$40 RACEBOOK , -41.7%
-$14 SPORTSPOOL , -8.0%
-$41 POKER , -24.3%

-$1,652 Slots , -19.5%
-$2,123 All Gambling, -16.4%
odiousgambit
odiousgambit 
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January 9th, 2013 at 12:34:19 AM permalink
it continues

http://money.cnn.com/2013/01/09/investing/mgm-china-macau-casino/index.html?iid=HP_LN
the next time Dame Fortune toys with your heart, your soul and your wallet, raise your glass and praise her thus: “Thanks for nothing, you cold-hearted, evil, damnable, nefarious, low-life, malicious monster from Hell!” She is, after all, stone deaf. ... Arnold Snyder
rxwine
rxwine
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January 16th, 2013 at 12:04:39 AM permalink
Sorry if this has already been mentioned somewhere, but what is China's cut in all the action. Or is that proprietary/or property by property info?

Could they wait until some future date, and just take it all for themselvesl?
Quasimodo? Does that name ring a bell?
pacomartin
pacomartin
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January 17th, 2013 at 6:16:59 PM permalink
Quote: rxwine

Could they wait until some future date, and just take it all for themselvesl?



The gaming tax is 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.

I suppose that there is always a risk that any foreign government can nationalize your industry, but I don't think it is substantial in this case. The Chinese government invited foreign competition into Macau after 40 years to build up the industry. It has succeeded beyond anyone's wildest imagination. Nationalization rarely comes out in the long run as the reaction can be considerable. China sells a lot of stuff to the USA. It seems as if they will be happy with their 40%.

I've talked to some people about dealing with the Chinese government. They are pretty careful to get the terms they want, or they just won't enter into a business agreement. They don't seem to feel any pressure for their people. If they got through the last two millenia without something, they figure they can last a few more years.

Sociedade de Jogos de Macau, the original gaming company operating in Macau since 1962 , is still the largest in terms of gaming revenue and number of casinos.
pacomartin
pacomartin
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October 25th, 2013 at 2:00:22 PM permalink
Gaming revenue for first 9 months of 2013 is 260,632 million Hong Dollars. That is roughly US$123 million per day, vs US$17.2 million per day for Las Vegas Strip.
Macau now has 7 times the Las Vegas strip (or 4 times the state of Nevada).

The rate of increase is still a phenomenal 20% so they should reach $1 billion per week shortly.
rxwine
rxwine
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October 25th, 2013 at 3:59:57 PM permalink
Quote: pacomartin

Gaming revenue for first 9 months of 2013 is 260,632 million Hong Dollars. That is roughly US$123 million per day, vs US$17.2 million per day for Las Vegas Strip.
Macau now has 7 times the Las Vegas strip (or 4 times the state of Nevada).

The rate of increase is still a phenomenal 20% so they should reach $1 billion per week shortly.



I imagine it's the money laundering capital of the world now too.
Quasimodo? Does that name ring a bell?
pacomartin
pacomartin
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October 31st, 2013 at 12:35:36 PM permalink
Quote: rxwine

I imagine it's the money laundering capital of the world now too.



Stanley Ho (age 91) who had the license for gambling in Macau exclusively for 40 years has always been considered to be a mobster. But with a net worth of $2 billion, he is also the richest man in Macau. Ho has 17 children born to four women. In November 2010, Ho was awarded the Grand Bauhinia Medal the highest under the Hong Kong honors and awards system, reserved for those making a lifelong and highly significant contribution to the well-being of Hong Kong.

In 2010 NJ requested the right to investigate MGM Resorts' dealing with Pansy Ho, Stanley Ho's designated heir. Rather than risk their investment in Macau MGM Resorts agreed to sell their interest in the Borgota in 3 years. As typical with casinos, they failed to find a buyer who was willing to pay what they asked. At the end of three years, they petitioned the board to allow them to keep their share.

I believe the re-licensing is still under review.


Quote: A window on China: What an offshore gambling mecca reveals about business in China Dec 10th 2011 | MACAU | -The Economist


Many come to elude China's strict limits on the amount of yuan people can take out of the country. A government official who has embezzled state funds, for example, may arrange to gamble in Macau through a junket. When he arrives, his chips are waiting for him. When he cashes out, his winnings are paid in Hong Kong dollars, which he can stash in a bank in Hong Kong or take farther afield.

“There are many ways to launder money, more than we can think of,” says Davis Fong, an associate business professor at the University of Macau. Some bypass junkets and instead use pawnshops and other stores, where they buy an item with yuan and promptly sell it back for Macanese pataca or Hong Kong dollars—less, of course, a generous cut for the shopkeeper. No one can quantify how much money is laundered in Macau, but it'ssuch an obscene amount of money you would die, one resident avows.

beachbumbabs
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beachbumbabs
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October 31st, 2013 at 11:25:26 PM permalink
Quote: pacomartin

Stanley Ho (age 91) who had the license for gambling in Macau exclusively for 40 years has always been considered to be a mobster. But with a net worth of $2 billion, he is also the richest man in Macau. Ho has 17 children born to four women. In November 2010, Ho was awarded the Grand Bauhinia Medal the highest under the Hong Kong honors and awards system, reserved for those making a lifelong and highly significant contribution to the well-being of Hong Kong.

In 2010 NJ requested the right to investigate MGM Resorts' dealing with Pansy Ho, Stanley Ho's designated heir. Rather than risk their investment in Macau MGM Resorts agreed to sell their interest in the Borgota in 3 years. As typical with casinos, they failed to find a buyer who was willing to pay what they asked. At the end of three years, they petitioned the board to allow them to keep their share.

I believe the re-licensing is still under review.


Quote: A window on China: What an offshore gambling mecca reveals about business in China Dec 10th 2011 | MACAU | -The Economist


Many come to elude China's strict limits on the amount of yuan people can take out of the country. A government official who has embezzled state funds, for example, may arrange to gamble in Macau through a junket. When he arrives, his chips are waiting for him. When he cashes out, his winnings are paid in Hong Kong dollars, which he can stash in a bank in Hong Kong or take farther afield.

“There are many ways to launder money, more than we can think of,” says Davis Fong, an associate business professor at the University of Macau. Some bypass junkets and instead use pawnshops and other stores, where they buy an item with yuan and promptly sell it back for Macanese pataca or Hong Kong dollars—less, of course, a generous cut for the shopkeeper. No one can quantify how much money is laundered in Macau, but it'ssuch an obscene amount of money you would die, one resident avows.



paco,

This is an amazing thread, full of terrific information. Seeing it for the first time today, it's like a time-lapse capsule of Macau growth factors and revenues. Thanks very much, and I encourage you to keep updating it.
If the House lost every hand, they wouldn't deal the game.
Tomspur
Tomspur
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November 28th, 2013 at 12:51:31 AM permalink
I'm not sure if this has been mentioned in this thread but I thought it may be of interest to some of you.

At the moment the Chinese government only allows very limited numbers of people to cross over into Macau to gamble. how they work it is through "territories" or "provinces". So I would imagine at this point there is probably about 10 to 15% of the Chinese population who are of gambling age that are aloowed to enter into Macau at any one given time. Another interesting thing about Macau is that the Chinese government limits the amounts of money that each person is allowed to take "in cash" with them into Macau. I think the limit is around $3400.

Obviously there are ways around this phenomena, like a watch shop on the caisno floor who will sell you a watch for $25 and give you the $9975 in change in cash. Or there is obviously the junkets that will wire your money into Macau for you and have it available there when you arrive.

Another interesting fact is that, on most weekends in operation the Rolex store inside Wynn Macau sells out its inventory. One young gentleman, around 25 years old bought 2 x $125k Rolex watches.........................

Next time you head out to Vegas try to quantify those numbers.
“There is something about the outside of a horse that is good for the inside of a man.” - Winston Churchill

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