June 9, 2006 – Businessweek online – Las Vegas has been the long-time champ on the world gambling scene, but an up-and-coming player is elbowing its way to the table: Macau. The Special Administrative Region (SAR) of the People's Republic of China is currently one of the world's fastest growing gaming markets. It is estimated that during the next few years Macau will not only replace the Las Vegas Strip as the largest gaming market in the world in terms of revenue, but will also turn China into the world's second-largest global gaming jurisdiction, after the U.S.
Once controlled by Stanley Ho's Sociedad de Jogos de Macau, the Macau market is expanding due to favorable demographics and the entry of international gaming companies such as Wynn Resorts (WYNN ; S&P credit rating, B+), MGM Mirage (MGM ; BB), Las Vegas Sands (LVS ; BB-), Publishing and Broadcasting Ltd. (A-), and Galaxy Casino S.A. (B+), each of which is, or is planning on, constructing Las Vegas-style casinos costing billions of dollars. The expected significant development during the next several years will likely alter Macau's competitive environment.
Similarly, the Las Vegas Strip, long considered the industry's bellwether market, will also witness a significant building boom during the same period. How will each of these markets respond to significant expansion? Here Standard & Poor's Ratings Services evaluates Macau and the Las Vegas Strip in the context of several broad categories.
