Macau was already the earth’s largest gambling hub heading into 2014, and it absolutely wasn’t even close. Nothing that happened over the past year has threatened to change that: the Chinese enclave nevertheless produces revenues that outstrip Las Vegas several times over.

But revenues have actually begun to fall significantly for the first time since industry opened to foreign operators, and there are certainly alterations in shop for operators and players alike.

Mainland Crackdown Hurts VIP Spending

Historically, Macau’s dominance is built on the backs of high-stakes VIP gamblers who can spend tens and even hundreds of thousands on a bet that is single. But that market has been drying up due to new policies from the Chinese government that have started to harm the flow of cash to Macau.

At issue is a major campaign to reduce corruption in China, one which includes scared off many gamblers who desire to illegally bring cash from the mainland to Macau.

There are restrictions to precisely how cash that is much allowed to be taken off the mainland legally, but whales had previously had the oppertunity to find a good amount of methods around this. Junkets would give fully out (unenforceable) loans, while pawn shops in Macau would fraudulently process transactions that led to cash that could be utilized by gamblers or cash launderers.

These methods have actuallyn’t disappeared by a shot that is long nonetheless they have tightened up a little. Fewer officials are willing to help gamblers smuggle funds into Macau, and there are now lower limits on the amount of money that may be withdrawn from a UnionPay debit card each day. Which has been enough to see large declines that are year-over-year revenues for Macau’s gambling enterprises: in October alone, revenues dropped with a record-breaking 23 percent.

Casinos Hope to Attract More Mass Market Traffic

Also before any risk of strain on VIP play started initially to hit home, Macau was currently focused on bringing in more ‘mass market’ gamblers: after all, there was clearly only so much that the market that is high-end grow for them. The crackdowns that hurt their whales just made those low-spending gamblers a much more focus that is immediate and one that may have helped to reduce the damage the marketplace saw while the VIP sector declined.

Sure enough, Macau saw significant growth in the mass market segment early in 2014. But that too started initially to slow due to the fact wore on year.

Those on the higher end for the mass market designation, big spenders who don’t be eligible for a VIP status, were affected by the brand new government policies as much whilst the highest rollers who occupy exclusive private gambling rooms.

Some of the slowdown has also been attributed to a smoking ban in Macau casinos, one that only applies to the basic casino floors and not VIP spaces which can be divided through the rest of the gambling areas.

Labor Issues Plague Macau

There is additionally the really real issue of work strife in Macau, a challenge that is hitting the gambling industry on two fronts. For starters, there exists a potential labor shortage as increasingly more casinos are now being built and there are few people left in Macau which can be looking for jobs.

Who has increased pressure on wages, not just in the casinos however in other businesses that have to contend with the gambling industry directly for jobs.

Still, many casino workers think they are getting a raw deal from their companies. Work unrest happens to be increasing in Macau, with several demonstrations and protests having taken place this present year.

A huge selection of casino workers walked away from their jobs in early October as part of a movement to demand better advantages and greater wages from an industry that is raking in enormous profits even with the recent market slowdown.