Wednesday, May 29, 2013

Vegas and Macau make big bet on high rollers as economy pushes away the small gambler

The economic downturn has been disastrous to a number of industries, but perhaps no greater to the playground of America, Las Vegas.  As of May 28, the former world stage for fun and gaming has been relegated to third place on the list of global gambling spots behind Macau and Singapore, and is making a huge bet on attracting high rollers, while limiting its options for the pocket change gaming public.

Image courtesy of Gameroom

In Sin City, where over-the-top is always the sales pitch, lavish nightclubs featuring a heart-pounding party have become the backbone of a billion-dollar industry that is soaring while gambling revenue slips.

The rise of the Vegas super-club coincides with the decline of the town's gambling supremacy. The tiny Chinese enclave of Macau surpassed the desert oasis as the world's top gambling destination in 2006. Singapore is on track to claim the No. 2 spot. - Huffington Post

Additionally, the global leader in gambling stops is spending billions of dollars in creating a dreamland for high rollers, with one destination offering a royal treatment at the low cost of a $1.6 minimum betting requirement.

With the political transition completed, the VIP business is back to normalcy - as evidenced by Sky 32, an elite oasis of luxury on the 32nd floor of the Galaxy Macau casino, offers commanding views, a waterfall, a bar with vintage single malt whiskeys - and six sumptuous rooms where players must commit to betting at least 10 million yuan ($1.6 million). - Zerohedge

Like the luxury automobile industry, that rarely sees economic downturns during recessionary periods, the rich will always spend lavishly despite the poor and middle class tightening their belts.  And as middle America falls back to local casinos on Indian reservations, or home poker games to satisfy their gambling lusts, the world of gaming is making huge bets that the elite will always want the world's finest, and are willing to pay to play no matter the financial cost.


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