“公共管治的理論和實踐”學術研討會
Conference on “Public Governance - Theories & Practices”
Modernization of Macao’s Gaming Industry
TJ Cheng
Department of Sociology
University of Macau
Abstract:
This article tries to discuss issues related to the modernization of gaming industry in general, and Macao’s casino modernization in specific. After a brief introduction to casino business development in other nations, this article tries to focus on definition of casino modernization, guidelines for judging casino’s modernization level, and what that means for Macao’s gambling business as well as for the SAR government and Macao society.
This chapter is about the modernization of gaming industry. It has three sections: 1. the general condition of world gaming industry; 2. the legalized lottery (such as sports lottery) and the underground gambling in mainland China; 3. the modernization of the gaming industry development, the four directions or orientations, namely popularity orientation, legalization orientation, entertainment orientation, and healthiness orientation.
1. General condition of gaming industry out of China
For the purpose of accelerating the modernization and internationalization speed of Macao’s gaming industry, it is obvious that we should have some necessary knowledge about the general development of world gaming industry. Even a special course on how to compare and analyze international gaming industries of different areas is thought to be needed. As a supplementary part of gaming sociology, however, here we will give a brief introduction to the situations of the world gaming industry to help us analyze and generalize the directions of this industry’s future development.
A. Sketch of the gaming industry in U.S.A
U.S.A has two gambling centers. One is in Las Vegas, the world famous gambling metropolis, located in the hinterland of Nevada desert. This special geographic location makes Las Vegas look like a mirage emerged from the desert. In the evening, spangling colorful lights and its shining casino hotels with unique style make the city “a land of dream” as it was nicknamed. Casinos here are famous for their world famous amusement facility and night club show, which helps in making Las Vegas a perfect place for family vacations. In addition, there are various kinds of international exhibitions, fair expositions, and seminars all the year round. Tens of millions of tourists and gamblers are attracted here each year.
The other gambling center is Atlantic City in New Jersey. Although this center is not as large as Las Vegas, it still attracts millions of visitors especially from the east-coast agglomerate city area, like New York, Philadelphia, Washington DC, and Atlanta. Atlantic is a city near to the sea. You can find dozens of casinos in different size stretching along the coastline on the seashore, where tired gamblers can enjoy sea-water baths and the beach sunshine for free. Those who do not gamble can also enjoy the convenience of the beach, with regular extra free buffets and shows.
Besides these two well-known large gambling centers, other small gambling cities, ships, and gambling houses are sporadically scattered in each states of America, such as the casino sea ships registered in Saint Antonio and the casino river boats registered on Mississippi River---both of them earn considerable money and become popular places for local tourism. The number of illegal gambling houses is uncountable.
In USA, it is the local congress not the Federal Government that keeps the right to decide whether gambling is legal in each area. Hence, almost ten states allow gambling for specific places in some cities. Other than this, American Indian reservations still have legislation power for themselves. Then, once the chieftain persuaded his tribe members, gambling will immediately become legal there without any restrictions from the local or the federal government. For example, the state of New York is famous for its Niagara Falls, a world famous resort which attracts millions of visitors every year. But visitors can not enjoy more entertainment after appreciating the water itself because of the low tourist facility level in this area. Consequently, they move to Canada side for food, drinks, shows, and gambling as well. Proposals on gambling permission brought forward to the State Congress were rejected and ended in abortion each time for the unfaltering opposition by the Democratic Party, which was the dominant power in the local government. However, the Indian reservations near the big falls are free of local government restrictions. Gambling houses there retake some of this kind of business from the Canadian side.
If the American Indian reservations were taken as gaming industry permission areas, then in fact gaming industry is within law for every state in America. Some people estimate that it’s very difficult to withhold the gambling permission for long, since lottery is legalized almost everywhere. The day for gaming industry legalization will come sooner or later, and the only problem is how long we have to wait.
B. Monte Carlo, Monaco
Macao is also known as the "Monte Carlo of the Orient". Then, what does the European Monte Carlo look like? According to the documentary, Monte Carlo sits in Monaco, a small Mediterranean country north to France. It is a real mini casino city with an area less than 3 km2 and a population less than 1/10 of Macao.
Although it is quite a small country, Monte Carlo is the real gambling capital of Europe with long history. Monaco used to be a part of France, and in 1297 it came to be an independent country. However, up till now, France still takes in charge of his money issue and public safety problems. For Monaco, there is no need for supporting an army, even the royal guards are served by French cavalrymen. From 1865 when the first Monte Carlo casino opened, Monaco, one of the poorest countries before, suddenly became the richest country in Europe, and it was. All the casinos are belonged to SBM, but the biggest share holder is Monaco royals (70%); hence, almost every casino in Monte Carlo is sate-owned. Mass wealth accumulation results that Monaco government abolished tax from 1870, and until today, Monaco citizens still enjoy zero-tax lives, free medical and other social benefits as well. Yet the price is the banning laws that all the Monaco citizens are not allowed stepping into the casino. Nevertheless, whether the stuffs or workers are outland labors is worth further researching.
Luxurious casino is only one of the reasons why Monte Carlo attracts so many visitors. Another important reason is the fantastic story about the royalties, especially the love story of Prince Rainier and Hollywood actress Grace Kelly, which is viewed as a truly version of Cinderella of Monaco and attracts many world-famous celebrities, ladies, monarchs and noblemen come to spend their holidays, or honeymoons, here. What is more, the Oceanographic Museum, the Napoleonic Souvenirs Museum, Collections of the Historic Palace Arch, the Museum of Stamps and Coins, the Navy Museum, and other museums are all for public visiting or scholars’ research. In addition, the Sea Water Therapy Center, the International Conference Center, the Rose Garden of Princess Grace, and etc. are all available for purpose of international conference and family entertainment. Therefore, there is a great deal of businesses (or cultural enterprises) having their income generated from out of gambling.
C. Asian-Pacific Area
Contrasting to the gamble fashion in European, American and Caribbean island countries, gaming industry is merely a newborn market in Asian-Pacific Area. Influenced by the flouring gambling business of Macao, legal casino is gradually appeared in Australia, Malaysia, Philippine, Burma, Laos, Vietnam, Cambodia, North and South Korea, and other countries. Horsing race is used to be the only legal gambling In Hong Kong before sports gambling become legalized in recent years. The proposal to allow gambling in Penghu district was rejected by the legislation committee after a heated argument. There is still no further information on new proposals[1]. Singapore is the latest country in Asia that has legalized gambling, and will be a competition with Macao.
Generally speaking, Australia has a bigger gaming business in Asian-Pacific Area except Macao. The total value of gaming industry reached 72 billion Australian Dollars (about 288 billion H.K. dollars) and 3 billion of taxation in 1977. The Crown Casino of Melbourne receives 20,000 customers each day, among them, 60% are Asians or Chinese. Australia also built a Research Institute for Gambling Industry in Australia’s capital of Sydney.
Korea Peninsula is an excellent late comer in gaming industry with a high speed. South Korea has more than ten casinos mainly spreading in Jeju-do Island and Seoul. North Korea has public casinos in the special economic zones of Pyongyang and Najin. It is said that new casinos in the two special zones adjacent to China and Russia is under consideration. However, both the North and the South Korea don’t allow their own citizen gambling, which similar with the regulations in Monte Carlo. What is more interesting, South Koreans are forbidden gambling or entering casinos no matter in or out of their country. Even you violate the regulation in a tour, once being found, a lawsuit will wait for you when you come back. There is a unique law there in forbidden of lending on gambling. If you lend your money to others for the purpose of gambling, the borrower is legal to repudiate the debts. Government doesn’t protect this kind of creditors.
Compared with Korea, the restrictions of Chinese on this problem are not so strict. The inner regulation which bans entering the casinos or brothels is only restrict to those public officials who come abroad on government funds. There is no special restriction for a private traveler. Even for those who goes abroad on government funds will not be punished seriously or make trouble for themselves even if he go to gamble without using the public money. It seem like nearly all the officials have been to America have come to casinos when being asked. This is quite different from the situation in Korea.
“Genting Highland” is the only casino in Malaysia. This world famous casino is founded by Tan Sri Lim Goh Tong, a successful Chinese gambler who had make successful investments in America, Australia, Philippines and other countries. When Macao opened its gambling market, he bid and unfortunately failed.
There are more the ten casinos in Philippines. Most of them are in middle size, located in Manila, Sebu, and Subic Bay areas. Their total annual income is around several hundred million U.S. dollars. Their facilities, service quality, and external environment are all in need of improvements.
Vietnam, Cambodia and other South-East Asian countries stepped into the gaming industry just in quite a short time. On their small size and low development levels, they still have a long way to go before catching up and competing with Macao’s gaming industry of international level.
2. The Legal and Underground Gaming Industry in Mainland China
Although gaming industry in nearby South-East Asia countries cannot be a dangerous threat to Macao’s gambling industry, there are still other threats need to worry about. In recent years, more tourists from the mainland than from Hong Kong and Taiwan, came to Macao and became the major customers of our local gaming industry. The mainland’s gambling banning policy is obviously a beneficial factor to Macao’s economy. While in the same time, it is necessary to realize a latent dangerous power, the up-coming development of the gambling business in mainland China.
A. The scale and speed of lottery industry development
It is a well-known fact that mainland China is still an area where gambling is banned theoretically or in terms of law. To organize or participate in gambling is illegal. The punishments maybe criticism, administrative warning or being sent into prison, even life imprisonment or death penalty for those illegal gambling house managers.
However, laws are not fully observed or enforced in mainland China. Legal document is always not in coincident with its real performance. As to gambling, it has become to be half open or partially legalized in many places somehow. Before we discuss the other kinds of gambling, let me talk about the officially approved legal gambling in the mainland.
Lottery is an unquestionable part of gaming industry. Nevertheless, is buying lottery a kind of gambling behavior? Let’s ask the following questions on the definition of gambling: Is there a subject (the person who buys the ticket)? Is there gambling tools or instrument (the lottery tickets)? Is there money for winner (the award money)? Each of these three necessary and sufficient conditions of a gambling behavior is indispensable in defining a gambling behavior. According to this definition, selling or buying lottery is a kind of gambling behavior without any question. These kinds of business are flourishing and spreading over mainland China with an astonishing speed. To see the splendid scenery of its development, one only needs to stand before the C.R.V. Supermarket (China Resources Vanguard Co. Ltd.) in Zhuhai. There you can see people crowded before the lottery vendors and thousand of checked thickets lying on the ground everyday.
An article named” Gaming industry gaining bright future” in Anhui Business says that, until the end of 1999, Chinese government has issued 50 billion lotteries. It is estimated that the amount will reach 30 billion this year (2002). Meanwhile, according to the prediction of the Development and Research Center of State Council, the yearly lottery issue is going to reach 84.6 billion RMB in ten years. This will make China the world biggest lottery market.