VIP-room Contractual System of Macau’s Traditional Casino Industry

Wuyi Wang and William R. Eadington ()
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Wuyi Wang: Macau Polytechnic Institute

No 07-001, Working Papers from University of Nevada, Reno, Department of Economics

Abstract: This study provides a systematic analysis of the VIP-room contractual system of Macau’s traditional casino industry. It examines the system’s historical background, its organizational structure, its operational mechanisms, and its role in Macau’s casino industry. This analysis examines the evolving and likely future changes in the VIP-room sector—as well as the mass market sector—caused by the liberalization of Macau’s gaming laws in 2001 and the Free Individual Travelers Scheme, introduced by the Chinese government in 2003. This study develops a framework to explain how the two sectors’ market shares are determined by examining the economic and cultural forces at work. The existing structure of the VIP-room contractual system in Macau’s casino industry will not likely continue in its traditional way, and will be replaced by newly evolving systems consistent with the new competitive realities. However, the VIP business will likely continue in one form or another.

Keywords: Regulation; gambling; casinos; Macau; baccarat (search for similar items in EconPapers)
JEL-codes: L13 L51 L83 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ind, nep-reg, nep-sea and nep-tur
Date: 2007-01
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Persistent link: http://EconPapers.repec.org/RePEc:unr:wpaper:07-001

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