Evaluating the Economic Impact of Casino Liberalization in Macao

Abstract

This paper aims to evaluate the economic impact after Macao decided to liberalize its gaming industry. By analysing both objective data of official statistics and subjective data of the perceptions of quality of life, we painted a picture of mixed blessings. Although objective indicators showed strong economic growth in terms of a rise in per capita GDP and public revenue as well as a decline in unemployment rate, subjective indicators revealed that local residents were less than optimistic about their own employment outlook and did not perceive any improvement in their overall economic situation. While casino liberalization brought forth tremendous economic gain, the general population did not subjectively feel the benefits. An integrative analysis of both objective and subjective indicators would therefore allow us to look closer how residents' lives in the micro-level could have been adversely affected by the prosperous economic outlook at the macro-level.

Public health effects of gambling – debate on a conceptual model

“…While the negative financial consequences of gambling are evident, studies have also observed positive financial impacts. For example, in Macao, people working in gambling and related industries earn a higher salary [76], and their nominal wage has increased as a result of casino liberalization [77]. Further, a few studies have shown that for some (especially poker players), although a minority, gambling is a significant income source [78–80].…”

“…The introduction of gambling has been associated with increased government revenue and overall economic growth [76, 77, 113, 144]. Governments earn revenue from gambling through several means: the taxation of gambling venues and operations, becoming directly involved in the provision of gambling and receiving its revenue, or by government controlled monopolies, which can deliver various forms of gambling and taxation of gambling winnings [32].…”

The contributions of economics to hospitality literature: A content analysis of hospitality and tourism journals

“…4.2.5. Impact analysis: multiplier effects, cost-benefits, and input-output Considerable research has assessed the impacts of selected sectors of the hospitality industry, particularly those related to MICE, on the local and national economies (e.g., Teigeiro and Díaz, 2014;Hanly, 2012;Zheng and Hung, 2012;Kim et al, 2010;Chhabra, 2007;Dwyer et al, 2005Dwyer et al, , 2006Morgan and Condliffe, 2006;Lee, 2006;Crompton et al, 2001;Grado et al, 1997;Braun and Rungeling, 1992). Among the papers reviewed, 30 studies explored this subject.…”

Gambling participation and policies in Malaysia

“…Some have argued that there are benefits arising from gambling legalization (Zheng and Hung 2012). Besides the utility and satisfaction gained by gambling product consumers without violating legal norms, there are allegedly economic benefits for the society at large.…”

“…Besides the utility and satisfaction gained by gambling product consumers without violating legal norms, there are allegedly economic benefits for the society at large. These include the creation of jobs through legalized gambling venues (Richard 2010), taxation revenues gained by the government (Shaffer and Korn 2002), and socioeconomic development of the community (Zheng and Hung 2012). For example, growth of remote cities such as Las Vegas in Nevada, USA and Macau, China (Dunstan 1997) whereby there are infrastructure improvements and constant influx of tourism revenues.…”