Dr William VlcekLecturer in International RelationsSchool of International Relations

University of St Andrews, Scotland

Gambling as Strategies for Economic Development:

The Case of Macau and Singapore

30 June 2014

Overview

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Macau casinos Background and context Revenue and visitors

Singapore casinos Gambling revenue Addressing the social ill

Internet gambling/Online gaming

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Geographical context

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Liberalising the casino license

In 1961, a monopoly license to operate casinos Sociedade de Turismo e Diversões de Macao (STDM),

majority owner Stanley Ho

Return of Macau to Chinese governance, 1999Three casino licenses granted in 2002

Galaxy Casino SA – Galaxy Casino and Venetian Macao Wynn Resorts (Macao), sub-conscession to Melco PBL

Jogos (Macau) Sociedade de Jogos de Macau SA (SJM), sub-conscession

to MGM Grand Paradise SA

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30 June 20145

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The Venetian, Macau

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Casino revenue growth

30 June 2014Source: DSEC - Statistics and Census Service, Macao SAR Government (May 2014)

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Who gambles in Macau?

30 June 2014Source: DSEC - Statistics and Census Service, Macao SAR Government (May 2014)

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Government benefit

30 June 2014Source: DSEC - Statistics and Census Service, Macao SAR Government (May 2014)

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Casino taxes (Macau patacas - millions)

Year Tax revenue Gaming taxes Gaming’s contribution

2000 15,339 5,647 36.81%

2001 15,642 6,293 40.23%

2002 15,227 7,766 51.00%

2003 18,371 10,579 57.59%

2004 23,864 15,237 63.85%

2005 28,201 17,319 61.41%

2006 37,189 20,748 55.79%

2007 53,710 31,920 59.43%

2008 62,259 43,208 69.40%

2009 69,871 45,698 65.40%

2010 88,488 68,776 77.72%

2011 122,972 99,656 81.04%

2012 144,995 113,378 78.19%

2013 155,512 134,383 86.41%30 June 2014

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Source: DSEC - Statistics and Census Service, Macao SAR Government (May 2014)

Singapore– a competing Asian casino destination

Two ‘integrated resorts’ with a casino Resorts World Sentosa (opened February 2010) Marina Bay Sands (opened April 2010)

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Marina Bay Sands, Singapore from Merlion Park

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Singapore – gambling revenue

Total gross gaming revenue for 2011 was ‘almost US$6 billion’.

For 2011 Singapore collected ‘betting taxes’ of US$1.84 billion

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Singapore visitors and betting tax collections

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Source: Ministry of Trade and Finance (various years) Economic Survey of Singapore

Betting taxes (million Singapore dollars)

Year Tax revenue Betting taxesGambling’s

contribution

2002 21,484.0 1,523.0 7.09%

2003 20,735.9 1,566.2 7.55%

2004 22,689.7 1,521.9 6.70%

2005 25,201.0 1,530.9 6.07%

2006 28,718.3 1,548.3 5.39%

2007 36,061.3 1,665.0 4.62%

2008 37,508.6 1,776.6 4.74%

2009 32,272.4 1,726.2 4.89%

2010 40,662.2 2,119.6 5.21%

2011 46,171.8 2,342.7 5.07%

2012 48,755.1 2,342.0 4.80%

2013 51,176.2 2,340.9 4.57%

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Source: Ministry of Trade and Finance (various years) Economic Survey of Singapore

Addressing the social ills

Citizens and permanent residents pay an entrance fee (S$100 per visit or S$2,000 for an annual pass)

‘Around’ 200,000 residents visited a casino in 2011

Government maintains a list of ‘excluded persons’ the casinos must prevent from entering the gaming rooms

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Additional Asian casino destinations

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Internet – the classic view

30 June 2014 New Yorker cartoon by Peter Steiner, published 1993.

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Internet gambling, ‘offshore’

Antigua-Barbuda, Costa Rica, Gibraltar, Isle of Man

WTO Dispute Case DS285: United States — Measures Affecting the Cross-Border Supply of Gambling and Betting Services

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Online gaming is dangerous

Corrupting influence on children

Money launderingTerrorist finance

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Leicester Square, London

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