As gambling revenues continue their decline in Macau, are Chinese officials looking to Las Vegas to fix what’s wrong?
For 30 years, Las Vegas has relied less and less on gaming revenues, replacing them with nightclubs and restaurants to stay competitive.
With $45 billion in gaming revenue last year, Macau has yet to commit to diversifying its gaming industry. There really hasn't been a need to, with 80 percent of revenue generated by gaming.
Now, with the Chinese government's crackdown on corruption and money laundering, Macau casinos may consider adding clubs, restaurants, spas, and other non-gaming amenities.
Wall Street Journal reporter Kate O’Keeffe told KNPR's State of Nevada said adding more attractions is really a matter of money.
"The government has been asking for a while but I guess the difference now is these casino operators basically have no choice because China's policies have crushed the gambling industry," she said.
O'Keeffe pointed out that Macau has spent the past five years in rapid growth, which makes the downturn a shock for many casino operators.
Besides the crackdowns from the central government, local ordinance changes, like those proposed to limit the number of table games in a casino, could hurt the industry, adding more pressure to diversify, O'Keeffe said.
But, diversification doesn't happen quickly. Las Vegas has changed but that didn't happen in a year or two.
"It took decades for Las Vegas to transform," O'Keeffe said. "So, I don't think people would expect Macau to be able to change its stripes overnight."
O'Keeffe said the Chinese government doesn't want to see Chinese citizens losing their life savings at Macau casinos, but also doesn't want to see the money go to another casinos in Asia.
"I think they would just like Macau to be a more diversified entertainment hub that they can showcase globally," she said.
Right now, Macau is the only place in China where casino gambling is legal.
Kate O’Keeffe, reporter, Wall Street Journal