Macau vs. Las Vegas: Which Is the Capital of Casino Gambling?

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One of the only places in the world with legalized casino gambling Macau is a gambling mecca. Las Vegas is famous for its casinos, but Macau has the world’s highest stake in gambling. It’s built up an impressive casino industry in its corner of the world.

Las Vegas and Macau are two of the world’s most famous cities and are popular destinations for millions of people each year. But which is the capital of the world of casino gambling? The answer is both, as Las Vegas and Macau are cities where casinos are regularly visited by gamblers, but they are not the same. Las Vegas is a city famous for its giant casinos, shows, and hotels such as the famous Bellagio Hotel. The same can be said of Macau, with many high rollers roaming through its giant casinos. 

Gambling is an activity that many take part in, either through physical casinos or online gambling at sites with great bonuses like Casino Secret. Still, it’s nice to go to a gambling mecca every once in a while.

In a list of cities with the best gambling in the world, Macau and Las Vegas are always at the top. Below are some facts about Las Vegas and Macau as well as some casino information to help you decide which is the capital of gambling. 

Income equation

Income is one of the most important things to consider when talking about this topic. At first glance, Macau looks to be at a disadvantage, since it is about three times smaller than its American counterpart. However, the population of the two cities is almost the same.

Although Macau is much smaller than the city and has less space for huge casino complexes, its gaming revenue is three times that of Las Vegas, which is pretty impressive.

Out of the entire $6.4 billion gross gaming revenue of Las Vegas, 34% comes straight from the casino games themselves. The rest comes from hotel rooms and restaurants. On the other hand, Macao’s SGR amounts to USD 28.04 billion. Out of that money, Macau city receives about $12 billion, about twice as much as Las Vegas generates.

Moreover, Macau’s revenues continue to rise every year. Last year, sales rose 23.7%, exceeding growth projections of 15-20%.

What is the tax on casinos?

Casino taxes are the main source of revenue for gaming cities. They need to find the right balance between taking enough to keep growing, but not taking too much or they will alienate the casino operators.

The monthly tax rate in Las Vegas for gambling is 6.75% of the MBR, which isn’t too bad. However, Las Vegas also charges casinos a flat annual fee of $250 per slot machine if there are more than 15.

In addition, federal income taxes range from 15% to 39%, depending on various factors, and additional fees apply. So it’s not that easy to run a gambling business in Vegas.

Macau, on the other hand, has decided to keep things as simple as possible. The gambling industry has to pay 40% of its gross revenue in taxes to the city, and that’s a lot. In total, 78% of Macao’s revenue comes from gambling taxes.

Demographic factors play a role

One of the main reasons why Macau is supplanting Las Vegas as the gambling capital of the world is its demographics. Specifically, two-thirds of Macau’s visitors come from China.

China is a growing economy, and people like to spend money on things they couldn’t afford before. In addition, they also have an enormous number of visitors each year, owing to China’s massive 1.3 billion-strong population.

On the other hand, 49% of visitors to Las Vegas come from the western United States. The rest comes from abroad, mainly from Western Europe. Many visitors from Las Vegas come here for family or sightseeing. Along the way, they make a few bets but don’t go overboard, which means Vegas earns much less money from tourists than Macau.

The debate about which is the true gambling capital of the world still rages on. The truth is, no one knows. One could argue that both of these cities have been doing business in the gambling industry for decades. Both of these cities have their fair share of casinos, but there is still no definitive answer as to which city deserves the title. 

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