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1. World’s fast growing gambling capital
Macau has developed rapidly over the past decade, primarily due to the liberalization of casino gambling since 2002 (Wong, 2011), and it is the only jurisdiction in China that allows casino gambling (Liu et al., 2014a). Since this liberalization of the gambling industry in Macau, some international players were introduced to the industry. In addition, individual visit scheme which allowed citizens from selected Chinese cities to obtain permits to visit Macau without the need to join a tour was opened in 2003. The Macau gaming industry experienced a robust period of growth. Data compiled by Macau’s Statistics and Census Service show, Macau gross gaming revenue (GGR) reached a historical high-US$ 45 billion in 2013, seven times that of Las Vegas Strip. In 2014, it generated US$ 43.94 billion in gambling revenue or about a 12-fold increase since 2003 (Gaming Inspection and Coordination Bureau Macau SAR, 2015, see Figure 1). The compound annual growth rate of gambling industry in Macau in mentioned period (2003-2014) reaches 18 percent even experienced global financial tsunami in 2008 and European debt crisis in 2012. The share of gambling revenue in GDP increased from 41.73 percent in 2002 to a historical peak 91.6 percent in 2010, and then slightly dropped to 87.52 percent in 2014. The gambling tax generates and accounts for a huge proportion of government revenue in Macau (see Figure 2). In 2014, 83.5 percent of government revenues came from gaming tax according to data compiled by Statistics and Census Service. Currently, there are 35 casinos in Macau – with six major casinos – including the six major casinos: SJM, Galaxy Entertainment Group, Sands China, Melco Crown Entertainment, MGM China and Wynn Macau, (generally called “The Big Sixes”) (Liu et al., 2014b). At the end of 2014, SJM was the leader on Macau’s gaming market which held 24.1 percent market share. Galaxy Entertainment Group ranks the second with 21.6 percent market share. Sands China Ltd. took the third spot with 19.4 percent market share (previously it held second place with 22.1 percent). The fourth place was taken by Melco Crown Entertainment with 14.6 percent. MGM China was listed fifth and the sixth spot was taken by Wynn Macau with 10.1 percent...