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Gambling Dynamism the Macao Miracle Gambling Dynamism Victor Zheng Po-san Wan Gambling Dynamism The Macao Miracle Gambling Dynamism Victor Zheng • Po-san Wan Gambling Dynamism The Macao Miracle Victor Zheng Po-san Wan Hong Kong Institute of Asia-Pacifi c Studies Hong Kong Institute of Asia-Pacifi c Studies Chinese University of Hong Kong Chinese University of Hong Kong Hong Kong SAR Hong Kong SAR ISBN 978-3-642-40748-2 ISBN 978-3-642-40749-9 (eBook) DOI 10.1007/978-3-642-40749-9 Springer Heidelberg New York Dordrecht London Library of Congress Control Number: 2013952454 © Springer-Verlag Berlin Heidelberg 2014 This work is subject to copyright. All rights are reserved by the Publisher, whether the whole or part of the material is concerned, specifi cally the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfi lms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. Exempted from this legal reservation are brief excerpts in connection with reviews or scholarly analysis or material supplied specifi cally for the purpose of being entered and executed on a computer system, for exclusive use by the purchaser of the work. Duplication of this publication or parts thereof is permitted only under the provisions of the Copyright Law of the Publisher’s location, in its current version, and permission for use must always be obtained from Springer. Permissions for use may be obtained through RightsLink at the Copyright Clearance Center. Violations are liable to prosecution under the respective Copyright Law. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specifi c statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. While the advice and information in this book are believed to be true and accurate at the date of publication, neither the authors nor the editors nor the publisher can accept any legal responsibility for any errors or omissions that may be made. The publisher makes no warranty, express or implied, with respect to the material contained herein. Printed on acid-free paper Springer is part of Springer Science+Business Media (www.springer.com) Pref ace Macao has become the talking point of the global community for its impressive economic growth from huge infl uxes of capital and tourists, which followed the Macao government’s introduction in 2002 of the policy to deregulate casino gam- bling. Later, when the “fi nancial tsunami” struck Macao in 2008 and many con- struction projects were brought to a sudden halt, equally animated debates were triggered—this time over the prediction that Macao’s economy would soon collapse as capital fl ed and tourists stopped pouring in. However, Macao’s gambling industry and economy did not fall into a developmental trap, as had been suggested by pes- simists. After a short dip in investment and a period of fi nancial restructuring, the gambling industry quickly regained its momentum and Macao’s economy reached new heights. How long has casino gambling been taking root in Macao? What are the devel- opmental features of Macao’s gambling industry? In what way does the industry fi t in with Macao’s East-meets-West liminal position? After the return of sovereignty, how did the policy to deregulate gambling unleash such a level of economic dyna- mism? As casino gambling has become increasingly dominant in Macao, in what ways have gambling-related industries and industries unrelated to gambling been affected? Also, to what extent has the general public shared the benefi ts or been forced to bear the costs of Macao’s impressive economic growth? More importantly, is an economy dominated by gambling sustainable? The aim of this book is to offer some answers to the aforementioned series of questions from a holistic perspective. The dynamism of the gambling industry in Macao will be unravelled with special reference not only to economic theories, but sociological arguments, by examining the historical background and throwing light on contemporary competitors, and by pointing to various objective and subjective indicators for illustration. On the whole, we found that although various objective indicators showed that the number of visitors to Macao grew rapidly, the unemployment rate dropped steadily, and public revenues increased remarkably after the full implementation of the casino deregulation policy; the subjective indicators demonstrated that many Macao residents did not think that it was easy to fi nd a job with reasonable pay and benefi ts. v vi Preface A large proportion of the Macao population did not think that there had been any improvement in their family’s economic situation in the past few years. They believed that the purchasing power of their nominal income had largely been eroded by the continual increase in real prices, especially for property and daily necessities. In other words, the major benefi ts from the liberalization policy did not accrue to the common people, whose feelings of disappointment and discontent were mounting. An equally challenging task ahead for Macao is to determine whether an econ- omy that is heavily reliant on gambling is sustainable. Given Macao’s unique status as the sole casino playground in Chinese territory under the framework of “one country, two systems”, it is certain that in the near future there will be no city in mainland China where casino gambling is made lawful. However, Macao should not become complacent because of this. The Macao SAR government should for- mulate relevant policies to solve socio-political problems triggered by the drastic expansion of the gambling business. At the same time, it should try to diversify Macao’s economic structure to reduce over-dependence on the gambling industry. Regional integration should also be encouraged. In short, gambling will continue to serve as an impetus for Macao’s economic expansion and diversifi cation in the com- ing decades. This book would not have been completed without the support and help of many people and institutions. We would like to convey our heartfelt gratitude to all of them. First, we thank the staff of the former Research Centre for Sustainable Development Strategies (Centro de Estudos Estratégicos para o Desenvolvimento Sustentável), the Macao Foundation (Fundação Macau), the Statistics and Census Service (Direcção dos Serviços de Estatística e Censos), and the Identifi cation Services Bureau (Direcção dos Serviços de Identifi cação) for their kind assistance during various stages of our research. Deepest thanks are also given to Prof. Fanny M. Cheung, Prof. Siu-lun Wong, Dr. Daniel Chi-wai Tse, Prof. Wu Zhiliang, Dr. Cora Wa-fong Chiang, Prof. Ieong Tou Hong, Dr. Chan U Chan, Mr. Chris Leung, and Ms. Agnes Vong for their valuable advice and unfailing support not only during our fi eldwork but also in the whole process of research. We are grateful to Dr. Josephine Khu for editorial support. Also, we are indebted to the members of our research team, Dr. Kevin Wong, Ms. Akira Zhang, and Ms. Chi Zhang, for their great effort in bringing this book to completion. Hong Kong SAR Victor Zheng Po-san Wan Contents 1 Gambling and Society: A Theoretical Revisiting of the Issue ............... 1 1.1 Introduction ........................................................................................ 1 1.2 Gambling and Society: Functional or Dysfunctional? ....................... 2 1.3 A Continuous Debate: Ethical vs Unethical ...................................... 6 1.4 Legalized Gambling: Greater Benefi ts or Greater Costs? ................. 8 1.5 The Rise of Casino Capitalism .......................................................... 13 1.6 Research Focus and Methodology ..................................................... 16 1.7 Conclusion ......................................................................................... 18 References ................................................................................................... 19 2 Macao and Globalization: A Gambling Perspective .............................. 23 2.1 Introduction ........................................................................................ 23 2.2 The History of Macao: A Snapshot ................................................... 26 2.3 Liminality and the “Macao Formula”: A Bridge-cum-“Safety Valve” for China ........................................... 32 2.4 The History of Gambling in China: A Deep-Rooted Culture ..................................................................... 37 2.5 Legalized Gambling in Macao ........................................................... 40 2.6 Conclusion ......................................................................................... 45 References ................................................................................................... 46 3 The Return to Chinese Sovereignty: A Historical Turning Point ............................................................................................. 49 3.1 Introduction ........................................................................................ 49 3.2 From Colony to Special Administrative Region ................................ 50 3.2.1 Settling the Hong Kong Question .......................................... 50 3.2.2 Settling the Macao Question .................................................
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