Macau had been already the planet’s gambling hub that is largest going into 2014, and it had beenn’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 profits have begun to fall significantly for the very first time since industry opened up to foreign operators, and there are certainly changes in shop for operators and players alike.

Mainland Crackdown Hurts VIP Spending

Historically, Macau’s dominance happens to be built on the backs of high-stakes VIP gamblers who is able to invest tens as well as hundreds of thousands on a single bet. But that market has been drying up due to new policies from the government that is chinese have begun to harm the movement of money to Macau.

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

There are restrictions to exactly how much cash is allowed become removed the mainland legally, but whales had previously had the oppertunity to find a great amount of means around this. Junkets would give out (unenforceable) loans, while pawn stores in Macau would fraudulently process transactions that led to cash that might be used by gamblers or money launderers.

These methods have actuallyn’t disappeared by a long shot, but 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are willing to help gamblers smuggle funds into Macau, and there are now lower limits on the amount of cash that may be withdrawn from a UnionPay debit card each day. Which has been sufficient 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 per cent.

Casinos Hope to Attract More Mass Market Traffic

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

Sure enough, Macau saw growth that is significant the mass market segment early in 2014. But that too began to slow once the year wore on.

Those on the higher end associated with the mass market designation, big spenders whom don’t be eligible for a VIP status, were affected by the government that is new just as much as the highest rollers who occupy exclusive personal gambling rooms.

A few of the slowdown has additionally been caused by a smoking ban in Macau gambling enterprises, one that only applies to the casino that is general and not VIP rooms being separated through the remaining portion of the gambling areas.

Labor Issues Plague Macau

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

That has increased force on wages, not just in the casinos but in other businesses that have to compete with the gambling industry directly for jobs.

Still, many casino workers think they are getting a raw deal from their companies. Labor unrest happens to be increasing in Macau, with a few demonstrations and protests having taken destination in 2010.

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 despite having the market slowdown that is recent.