The American gambling industry is one of the most lucrative sectors of the economy not only in that country but also across the world. Latest reports indicate that revenues from this industry in the United States have outgrown those of Macau. Macau is a popular gambling hub in Asia. The commercial gambling sector in the US is growing at a very high rate which provides the necessary environment needed for some form of legalized gambling.
In the year 2017, this industry generated revenues in excess of $40 billion. These huge revenues surpass some companies listed in major exchanges across the globe. The growth represents an increase of more than 3% year on year. There is a significant reason to call for increased formalization and regulation of this sector.
Perhaps the most important reason for engaging in this formalization process is taxation. Results indicate that the states which have regulated this industry benefited from more than $9 billion in terms of revenues from casinos. This is a shocking revelation. The figure represents more than 20% of the gross gaming revenues. That is not all. Revenues from tribal casinos amounted to more than $ 30 billion in the year 2017. This is as per the reports from the National Indian Gaming Commission. The figure represents a growth of more than 3% from the year 2016.
For comparison purposes, gross gambling revenues in the famous Macau region were about $32 billion. This figure is close to that of America and represents an increase of more than 19% from the year 2016. Perhaps these revenues would have been more were it not for the intervention measures carried out by the Chinese government. Alarmed by the escalating corruption in the nation, the Chinese authorities engaged in a major crackdown in a bid to reduce this vice.
Obviously, casinos and gambling platforms became soft targets for this government policy. These platforms have popularly been known to be avenues for money laundering across the world. China is not an exception. The crackdown started way back in the year 2012 and had a significant impact on the gambling business. Most of the Macau’s gambling clientele are the VIPs, senior government officials, and wealthy businessmen. In a bid to reduce corruption, the government made it compulsory for these casinos to have scanners capable of recognizing the faces of the gamblers. As such, it was possible to net the government officials who used to launder huge chunks of stolen funds in these casinos.
America has not been left behind. Typhoon Hato of 2017 severely affected the gambling revenues in the nation. However, the situation is returning to normal and this sector is witnessing some form of growth. In China, it seems that the government has started going down on the war against corruption. This can be evidenced by the return of wealthy individuals who are visiting casinos in the Macau region. Analysts predict this is short lived. The government will up its war against theft of public funds again, and these individuals will keep off these casinos.