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Case Title:

Macau: Emerging as the World’s Casino Capital – The Adelson Effect

Publication Year : 2006

Authors: M.V.Patil, Menaka Rao

Industry: Leisure and Tourism

Region:China

Case Code: GRS0165B

Teaching Note: Not Available

Structured Assignment: Not Available

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Abstract:
Once considered as Hong Kong’s poor cousin, Macau (a former Portuguese territory, now part of China) is soon set to emerge as the casino capital of the world. Gambling has been legal in Macau for over 150 years, and the place has for long been known as a tourist center associated with casinos. However, for about 40 years (from 1961 to 2001), the casino business was the monopoly of one local company - Sociedade de Turismo e Diversoes de Macau (STDM), managed by Stanley Ho. A quantum leap in the casino business was triggered by the local government’s decision in 2001 to open out the gambling industry to foreign companies. The objective was to attract more tourists and visitors to Macau, in turn increasing tourism revenues. Two major Las Vegas companies, Las Vegas Sands Corporation and Wynn Resorts Ltd. took their chances and risked entry into Macau. In 2004, Sheldon Adelson’s Las Vegas Sands, the world’s largest gaming company, was the first to step into Macau. Adelson was known to be a visionary, who had successfully promoted Las Vegas, a casino gambling haven, as a business convention center as well. Adelson’s entry into Macau was followed by others, and at least a dozen new casinos of sizeable magnitude have opened shop or are under development. Though skeptics feel otherwise, casino gaming revenue has been growing at a galloping pace, and Macau is soon expected to overtake Las Vegas as the casino capital of the world.

Pedagogical Objectives:

  • To understand the gambling industry in general and casino business in Macau
  • To analyse the competition and innovation in gambling industry in Macau and how Macau is emerging as the World’s Casino Capital
  • To assess the impact of gambling industry on tourism.

Keywords : China; Macau; Gambling; Casino; Las Vegas; Sheldon Adelson; Convention Center; Tourist Center; Business Strategy; Global Expansion; Growth Strategies Case Study; Tourism Plan; Luxury Hotel/Resort; Stanley Ho; Wynn Resorts; Government Policy

Contents : 
Background Note
Different Types of Casinos
Battle between Las Vegas Operators in Macau
Sheldon Adelson’s Business Strategy
Global Expansion Strategy
What’s Next inMacau
Categories of Casino Games
Casino Lisboa in Macau
Profile of Sheldon Adelson

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