Gambling in Macau: The impact of the casino industry on MSAR’s economy

Abstract

My thesis analyses the impact of casino gambling industry on the economy of Macau Special Administrative Region and its effects on its development. Investigating the historical, cultural, and political factors that have contributed to the development of this particular type of industry, the aim of this thesis is to analyse the past and present developments in MSAR's economy. The first chapter contains a deep analysis of Macau's historical background, from its status as a Portuguese territory to its handover to China in 1999, after Portugal and People’s Republic of China signing of the Joint Declaration in 1987. This chapter also provides an overview of the political and cultural background, by studying the changes in the political system and how it affected Macau’s people. It deeply analyses how after the twilight of the Portuguese administration, the Chief Executive Edmund Ho was able to reform MSAR’s bureaucracy, thus laying a solid foundation for Macau casino capitalism’s development. The second chapter presents a detailed description of the impact of the casino industry on the economy of Macau. It will firstly depict a framework for the gambling phenomenon and activity in ancient and modern China and will investigate how gambling fits into a society that has been strongly influenced by Confucian values. This chapter provides a discussion of the benefits and economic challenges related to the casino industry, also by studying how gambling has positively affected tourism in Macau. The third and last chapter describes the social implications generated by the casino capitalism, how addiction problems and how gambling have affected the image of Macau. In addition, this chapter provides a study on the other side of the coin, namely the problem of triads and social disorder following the success of the gambling industry. It proposes the importance of striking a balance between economic benefits and social implications.