When Did Gambling Start In Macau

“Online Gambling Laws for Macau and Cultures”

Although Portuguese Macau had legalized casinos and other forms of gaming in 1962, it is not until the beginning of this century, when Sovereignty over Macau was transferred back to China, that Macau has witnessed the booming growth of its gaming industry. Much of the region’s economic growth has come from the tremendous expansion in gambling and gaming since 2000, which transformed Macau into one of the world’s largest gambling centres (in terms of revenue). Tourism also has risen sharply from levels in the 1990s.

Our history with gambling dates to the very early days of Portuguese rule. In the sixteenth century gambling was popular with workers emigrant from Mainland China. As there were no laws to prohibit them, gambling stalls were available all over the streets, and some were even ran by major bankers. The games played were exclusively fantan (番攤) and Pai Gow (牌九). By the 1800s Cussec (CLU-CLU) which is a variation of what the west knows as Sic bo (骰寶) and is also known as tai sai (大細) and dai siu (大小) became one of the most popular games played in the streets.

Gambling here was tax free and unregulated until the British gained control of Hong Kong in 1842. The fact this nearby seaport was British ruled meant Macau’s long dominance as the place connecting the Far East and the West was nearly diminished. To rebound, our Portuguese government declared all games of chance legal in 1847. This was a period where much the rest of the world (both Asia and Europe) were passing laws to prohibit the same. This kept Macau highly relevant and stabilized the economy.

Starts of Gambling Monopolies

In 1877 the government moved to tax gambling. They declared fantan a tax free game, but required the highest bidder wishing to control the industry pay tax to the Public Treasury. The first year the winning bid amount was 120,000 patacas. From this period on, taxing gambling operators became the Macau government’s primary income.

The next segment of gambling issued a monopoly was horse racing. While races existed here since 1842, it was only in 1927 that Club Internacional de Recreio e Corridas de Macau, Limitada who had just been granted the monopoly held their first organized race at the newly built racecourse Areia Preta. Shortly later, in 1932 what is now Yat Yuen Canidrome was built to host greyhound racing organized by an alliance of Chinese and Americans who would later create Macao Canine Club.

The introduction of roulette clubs in the 1910s brought tension. While all games of chance were legal in Macau, these clubs were competing against the forms of gambling the government taxed. This is was a topic of on and off dispute. Over a period of two decades some roulette clubs shutdown due to pressure from concession holders and police. In 1934 the matter was settled when all games of chances were placed into a single monopoly. The highest bids were 1.9 million patacas in 1935 and 2.5 million patacas in 1936.

In 1937 the Second Sino-Japanese War (which in part led to World War II) caused a decline in gambling. To secure immediate funds a multiple year casino concession was awarded to Tai Heng Company. They would control gambling in Macau from March 1936 to March 1962. During their era a new casino at Hotel Central became the most popular in Macau.

After Mainland China banned gambling in 1949, business spiked and Tai Heng Company added western games such as baccarat and boule (a variant of roulette). While casino continued, horse racing and greyhound industry was suspended entirely due to World War II.

Macau’s rebound, from tough conditions the war had left the region in, came in February 1961. This is when the governor declared Macau a permanent gaming region. From this point on Macau became a low-tax region that considered gaming and tourism its primary economic activity.

Stanley Ho Era

While it is easy to credit the change to Chinese sovereignty and the breakup of the monopoly system for Macau’s success of the millennium decade, much credit goes to Stanley Ho who age 91 is still a major force in Macau gambling. In 1961 he formed a company with then Hong Kong tycoon Henry Fok, renowned gambler Yip Hon and his brother-in-law Teddy Yip (who was married Stanley Ho’s sister Susie Ho) called Sociedade de Turismo e Diversões de Macau (STDM). They outbid Tai Heng Company and gained the casino monopoly concession. Due to three concession renewals they controlled the Macau gambling industry from 30 March 1962 to 8 March 2000. They still to this day own the most casinos in Macau.

Much of STDM 1960s operations have only limited remains. Their first casino opened in 1962 and was where the rundown Hotel Estoril in Macau City now stands. This casino closed in 1975. If you are into casino history here is a must view post; to read it: use Google Translate Portuguese to English.

When Did Gambling Start In Macau Casinos

In 1963 STDM opened the once famous Macau Palace (Floating Casino) which is where the 1974 James Bond film – the Man with a Golden Gun -was filmed. It should not be confused with the current Macau Palace. The old one was towed away in 2007. What is still operational is their built 1963 casino dedicated to Chinese games, Kaem Pek Casino.

Visible all over Macau is the Stanley Ho efforts of 1970 and beyond. While building began in 1964, it was 1970 that Casino Lisboa first opened. This was the nicest hotel in Macau for three decades. While today there are multi-billion dollar casinos decorating Macau Peninsula and Cotai Strip including the world’s largest casino and a second with a similar name (Grand Lisboa opened 11 February 2007), the old Lisboa is still standing and relevant. Today it might be known as where the hookers hang out, but the taxes this single casino paid during the 1990s decade was one-quarter of all the tax the Macau government collected from any source and accounted for one-sixth of the total GDP.

In 1975 Jai Alai casino was built to replace Casino Estoril. In 1984 STDM opened a fifth casino which today is known as Grand Lapa. Between 1985 and 1996 the casinos still open today of Diamond Casino at the Holiday Inn, Kingsway Casino and the private Legends Club all opened. Also during this period Victoria and Marina casinos opened which were later closed or renamed. There was also a casino in what is now Regency Hotel (Taipa) bringing the 1996 count to nine casinos in Macau all operated by Stanley Ho’s STDM.

The primary focus of STDM was of course to attract gamblers from the region. They made great contributions to upgrading marine travel. They did however give some focus to attracting players from other Asian countries. Stanley Ho himself invested in airline companies. Also in the 1970s they expanded the games offered by introducing western-style slots machines and in the 1980s added Pachinko – the most popular form of gambling in Japan. By the 1990’s tourists from Thailand, Japan, Korea and India were also aware of Macau as one of the top sin cities of the region.

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Macau is one of the most remarkable countries in the world.
But you might not have ever even heard of it.

The GDP per capita of Macau is higher than the GDP per capita
of any other country in the world. This makes Macau the richest
country on the planet. But the residents of the country aren’t
just wealthier than people elsewhere. They’re also healthier.
In fact, they live longer than almost any other population in
the world.

Those aren’t the only records Macau breaks. It’s a relatively small land mass with a high population. In fact, it’s
the most densely populated country on the planet. They also have the world’s lowest birth rate. 25% of the
people working in Macau are immigrants from China.

And it’s the only Asian country where the official language is… Portuguese?

There’s a story behind that, too, which we’ll get into later in this history of the country.

Macau is a tiny peninsula dotted with islands. Technically, it’s a “special administrative region” of China. It used
to be a major player in colonial trade. But now it’s the world’s top gambling destination. And the official
language is Portuguese because it used to be a colony of Portugal. It’s so close to mainland China that you
can practically see Hong Kong from your hotel window.

How did Macau go from an unsettled peninsula in the 15th century to the world’s premier gambling
destination?

Macau’s Origins

It’s probably best to start with a basic geography lesion. The Macau Peninsula is the tip of a larger peninsula
with 2 major Chinese rivers on either side.

Macau shares a border with mainland China, but that border is only 2 city blocks long. Most of the country’s
border is the 25 miles of coastal border.

It is only 40 miles west of Hong Kong, and it includes the islands of Taipa and Colaoane.

According to anthropologists, the area has been settled for over 7000 years. The area was unclaimed by any
government until the Qin Dynasty. They made the area part of Guangdong Province 1800 years ago.
Ownership of the area was fluid for over 1200 years.

In 1277, the Mongols invaded China, and 10s of thousands of Chinese went into hiding on Taipa and Coloane.
They defended their settlements and eventually expanded their occupation to include the peninsula itself.
Some of the Chinese stayed behind and established the first permanent settlement.

100 years later, fishermen joined these settlers. They were eager to use the easily-accessible islands for
shelter. Eventually a merchant and priest class arose. Historians and anthropologists have found Buddhist
and other folk relics from the year 1300.

Macau was then known as Haojing, or “mirror sea”. It was a perfect spot to establish trade with Southeast Asia.

The Portuguese Occupation

In 1513, Jorge Alvarez was an explorer with a mission to discover trade routes and riches in the name of
Portugal. At the time, Portugal was the world leader in sailing, navigation, and cartography technology. Alvarez
and his crew became the first Europeans to reach this part of the world by sail.

What they found was deserted—at least of permanent life. If they’d landed a little to the east or to the west,
they’d have found a community of people who’d been living there for centuries. Instead, they claimed the
peninsula and its neighboring islands in the name of Portugal. It became a permanent settlement.

Eventually, the Portuguese encountered the Chinese, who were (of course) not thrilled that these strange
foreigners with their strange language were claiming such a large portion of their land. Alvarez and his men
fought a brief war with Imperial Chinese troops. This land was obviously considered valuable.

China and Portugal reached an agreement. The Portuguese were allowed to stay but only to make port in the
waters near the peninsula. They were not allowed to build permanent shelters or settlements. Diplomacy
eventually won out, though, and in 1553, the Portuguese were granted permission to build and settle
permanently.

The Portuguese government had figured out how much money they could make with this new trading
position. Buying the rights to settle for just 40 pounds of silver a year made economic sense. They paid annual
rent for over 300 years in order to maintain their settlements.

This was a classic win-win situation. By 1633, the Chinese had restricted all trade in this part of China to the
Portuguese and themselves. For Portugal, it was like having the exclusive right to deal with Southern China.

Troubled Times Ahead

By the early 17th century, Macau had become an Asian port city unlike any other. The language, food, customs,
and religion were blends of Southern European and South Asian traditions. A new dialect of Portuguese and a
new variation of Chinese were both spoken in the streets.

But there were problems.

At least 10% of the people in Macau were servants. Many were slaves. That’s not a social setup that encourages
tranquility.

In fact, the area had one of the same problems that’s starting to plague the United States in the 21st century.
Income disparity.

The Dutch and the Portuguese had been involved in a cold war for some time. In the early 17th century, the
Dutch sent 500 trained soldiers to take Macau in the name of Holland. Immigrants and slaves defended the
settlement from the invading Dutch.

This forced Portugal and China to address Macau’s autonomy as a country. But it took over 200 years and
plenty more strife before the 2 countries came to any kind of actual agreement.

China and Portugal: Making Friends

During the First Opium War, the Portuguese were able to fully occupy the islands of Taipa and Coloane. By
1887, the Chinese government was so weakened by their war with Great Britain, they gave Portugal
sovereignty over Macau.

Strangely, what brought the 2 countries together was a worldwide demand for opium. China gave Portugal
complete control over Macau with the following understanding.

They were also required to work with China to create profitable taxation systems. China needed to get some
money back into its coffers.

It was then business as usual for another 50 years. Portugal had almost total control of trade in the area. And
they were constantly working with China to secure profitable trading deals for both countries.

After the Pacific War ended, Macau became even more important. This was related to its status as a neutral
port during World War II. Not only was Macau a safe haven for refugees of the Chinese Civil War, it was also
becoming a major player in the world trade scene. After the Chinese Cultural Revolution, the Chinese
government wanted to reconsider the deal with Portugal. Riots broke out in 1955. The Portuguese government
used violence to quell the political upheaval.

When Did Gambling Start In Macau Spain

There was calm. But it was uneasy.

The Carnation Revolution

That uneasy calm became a sense of urgency in 1974. It was time for the Portuguese occupation to end. The
Carnation Revolution was an anti-colonialist movement, and a military coup ousted the Estado Novo
dictatorship.

Almost no shots were fired.

But the effects were massive.

Both Macau and East Timor were released from Portuguese rule. In 1976, the Portuguese government in
Lisbon redefined Macau as a “Chinese territory under Portuguese administration.”

Essentially, the Carnation Revolution resulted in a reversal of the rental agreement that had been in place for
over 300 years.

What did this mean?

It meant that Macau was now a territory with a lot of personal control. Citizens now had control of all
administrative, economic, and political aspects of their lives. By 1980, Portugal and China had made another
agreement. This one changed one word of their former agreement.

Macau was now “a Chinese territory under temporary Portugues administration.”

This one word, “temporary”, became a step toward Macau’s independence.

Finally, in December of 1999, Portugal and China both got out of the way and granted Macau status as an
independent territory.

• Macau is now responsible for its own:
• Political parties
• Legislature
• Constitution (“Macau Basic Law”)
• Legal system
• Police force
• Financial system
• Postal service
• Educational system

Macau’s Casino Age

None of this answers the question of how Macau became a gambling Mecca to the entire world. In 2002, the
new Macau government ended the state monopoly on gambling. They granted 6 casino licenses, including
one to each of the following.

• Wynn Resorts
• Las Vegas Sands
• Galaxy Entertainment Group
• MGM Mirage

Macau became the gambling hub of Southeast Asia almost overnight.

When Did Gambling Start In Macau Money

The development of the Cotai strip has been instrumental in the establishment of Macau as a major
gambling center. This development was part of the push away from state-run gambling. The idea was to
imitate the Vegas Strip—only bigger.

By 2007, resorts started popping up on the Cotai strip, the first of which was the Venetian Macao. Billions of
dollars have been spent developing this thin part of the peninsula into a gambling hotspot.

This new stream of tax revenue encouraged Macau to grant more gambling licenses. Unemployment in the
area dropped to less than 1%. The local tourist economy exploded. In 2007, Macau forecasted a need for new
housing in the area. This construction continues even now that over 10,000 apartment units have been built
for the employees of the new tourist industry.

Looking Forward to the Future of Macau

2007 and 2008 were tough years for Macau because of the global recession. Billions continued to pour into
development though.

Global trade is still sluggish, which is bad for tourism. Macau is also now the worst case of income disparity in
the world. The massive poverty class there supports the large wealthy class. Homelessness and
unemployment are becoming problems, too.

Immigrants are being hired to do some of the work that locals used to do. So now there’s a furor over
immigration in the country.

The country also faces controversy regarding the official language. Chinese-speaking Macau citizens want
Portuguese removed as the official language.

The recession there is expected to last until the end of 2015, but casino revenue is already up in 2015. Since
2014 was the first year to show a drop in casino revenue, this is particularly good news for the area. Not only
does it represent the beginnings of an economic recovery, it also provides the country with some
much-needed optimism about the future.

Tourism is up. Job growth is up. There’s light at the end of the recent economic tunnel. As the global gaming
industry grows, so does Macau.