Macau has come out of nowhere to become the gambling capital of the world. They have surpassed Las Vegas as the top casino spot mainly thanks to their proximity to China.
Their biggest asset may now become their biggest problem. The Chinese government has created stricter laws regarding their residents going to Macau, and it may have a big effect on the casino industry in Macau.
The government recently lowered the amounts of visits that would be allowed from Hong Kong to Macau. The number was already low, but it now appears that the Chinese government is trying to severely hinder the casino industry in Macau.
Macau gains many of their visitors from China. High rollers who used to travel across the world to play casino games in Las Vegas now simply went to Macau.
With the new visa laws, Las Vegas may once again become the destination for gamblers who are being denied access to Macau. Even in light of these new laws, Macau is continuing to expand.
Several big Las Vegas casino operators have moved into Macau and are still expanding in the area. Casino kingpin Stanley Ho recently moved his company to be publicly traded in order to raise money to renovate his casinos in Macau.
While it is still too early to determine how much of an effect the new visa laws will have, the truth remains that there will be a significant impact.