Back to the Future: Constructing Macao as a world-class casino tourism destination under new gaming laws

Session Title

Session 1-1-D: Policy and Regulation, Part 1

Presentation Type

Paper Presentation

Location

Park MGM, Las Vegas, NV

Start Date

23-5-2023 10:15 AM

End Date

23-5-2023 11:45 AM

Disciplines

Growth and Development | Industrial Organization | Other Legal Studies | Political Economy

Abstract

The relationship between legal contents/practices and the development of casino tourism in Macao is deconstructed through an institutional analysis. Specifically, the role of the Macanese legal system in the dramatic expansion of casino tourism, evolution of the industrial organization and business routine in the first two decades of the twenty-first century, are elucidated. It is found that a lagging legal and regulatory environment actually constitutes as an essential but controversial basis for a series of unorthodox business activities, which is heightened by a group of particular gaming agents. Nevertheless, their business practices have clearly diverted Macao from the initial construction of the city as a world-class casino tourism destination. Thus, the Macao government has revised and promulgated new gaming laws in 2022 for the retendering of new gaming concessions. After examining the contents of these new laws and the related documents, it is found that while the long-established business practices of this industry which have been dominated by gaming agents would come to an end, new business routines will be instituted for its sustained growth. To conclude, positive actions taken by the industry to comply with the new laws are needed to revert back to a sustainable trajectory of development.

Keywords

casino tourism; gaming agent; gaming law; industrial development; Macao

Author Bios

Ricardo Siu is an Associate Professor of Business Economics at the University of Macau. His researches mainly follow the approach of the institutional economics. In the studies of casino tourism, he focuses around investigating the interactions between institutional changes (including changes in public policies and social interests) and evolution of the industries in Macao and other Asian jurisdictions. He has a number of related publications in academic journals, professional magazines and books.

Funding Sources

None.

Competing Interests

None.

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May 23rd, 10:15 AM May 23rd, 11:45 AM

Back to the Future: Constructing Macao as a world-class casino tourism destination under new gaming laws

Park MGM, Las Vegas, NV

The relationship between legal contents/practices and the development of casino tourism in Macao is deconstructed through an institutional analysis. Specifically, the role of the Macanese legal system in the dramatic expansion of casino tourism, evolution of the industrial organization and business routine in the first two decades of the twenty-first century, are elucidated. It is found that a lagging legal and regulatory environment actually constitutes as an essential but controversial basis for a series of unorthodox business activities, which is heightened by a group of particular gaming agents. Nevertheless, their business practices have clearly diverted Macao from the initial construction of the city as a world-class casino tourism destination. Thus, the Macao government has revised and promulgated new gaming laws in 2022 for the retendering of new gaming concessions. After examining the contents of these new laws and the related documents, it is found that while the long-established business practices of this industry which have been dominated by gaming agents would come to an end, new business routines will be instituted for its sustained growth. To conclude, positive actions taken by the industry to comply with the new laws are needed to revert back to a sustainable trajectory of development.