And it’s expected as the Macau market continues to mature Sin City will fade fast in revenues compared to this Chinese protectorate.

The biggest story in the gaming world, Macau has been steadily gaining on Las Vegas as massive amounts of casino development transform this tiny market into a gaming powerhouse. With just 22 casinos – several of which were not even opened the full year – the region sowed US$8.83 billion in revenues. In the United States, the Las Vegas Strip’s 40 casinos brought in just over US$8 billion.

Since 2004 when Sheldon Adelson – Chairman of Las Vegas Sands Corporation, which operates the Venetian – opened the Sands Macau a new era has emerged for Macau. Previously all casinos were run by tycoon Stanley Ho, but after the Portuguese returned the region to the Chinese in 1999, rule changes eliminated his monopoly. 

It opened the doors to the biggest gaming success story of all time and it looks like it will be paying dividends to the Chinese government for decades to come.

Every month sets new records for year over year revenues and in February, the most recent statistics available, was no exception. Gross Gaming Revenues grew by 33.4% in February compared to February 2006 due to a trio of major projects that have opened during the last year. They include an expansion at the Sands Macau on August 24th, the debut of Wynn Macau on September 6th, and the opening of Galaxy’s StarWorld on October 6.

Visitation also jumped a massive 22.3 percent during the month as well with most guests arriving from Mainland China (57% of visitors), up 23.1%.  China has been loosening the reigns on travel restrictions for its citizens during the last decade which ahs coincided with the rise of a growing middle class that has more disposable income. Hong Kong visitation was up 24.1%, while Taiwan visitation was down 1.8%. Southeast Asia visitation was up 39.7%. Other visitation, including Europe and North America, climbed 25.4%. Overnight visitation was up a robust 31.3% in January (note one-month lag in reporting).

According to Bear Sterns Hotel Occupancy was 71.8 percent in January, 730bps above the 64.5 percent occupancy rate in January 2005, and good considering the addition of over 1,900 hotel rooms, year over year. Occupancy for five-Star rooms was 70.2 percent (vs. 64.2 percent), and, for four-Star rooms, 79.2 percent (vs. 67.0 percent), categories the company’s analysts feel are most relevant to new construction by Wynn resorts, MGM-MIRAGE and Las Vegas Sands, and represent the majority of existing rooms in the market.

These gaming companies are injecting about US$25 billion in new construction into the market, developing a slew of casino resorts that are currently under various stages of development. The biggest project set to debut is a Macau version of the Venetian, which is going to be three times the size of its Las Vegas sister property. That’s according to information supplied to onlinecasinocrawler.com direct from the company. It will features 3,000 hotel rooms.

“This once again showcases that Macau continues to have an upward trajectory of tourism activity being led by the casino gaming industry,” said analyst Jonathon Galaviz, a partner of Globalysis, a firm that tracks world gaming and travel trends. 

The Asian gaming market is so hot, the organizers of Global Gaming Expo Asia (G2E Asia) have announced their new tradeshow is sold out in its second year. And that’s after adding 80 percent more exhibitor space. G2E Asia 2007 will be held June 13-14 at Macau Tower Convention & Entertainment Centre in Macau SAR, People's Republic of China.

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