Las Vegas Prepping for Chinese Gamblers

It’s all going good for Las Vegas, which recorded a revenue of US$6.3 billion last year, just a couple of millions short of the record high of $6.8 billion in 2007. The healthy growth, in part, has been spurred by interest from Chinese punters. Chinese tourists and Chinese-Americans have been patrons for decades now, and they continue flocking to casinos.

In fact, the Chinese have been moving their wealth into the American real estate market. Between 2010 and 2015, Chinese investors purchased US$93 billion in residential real estate, $17 billion of commercial real estate, and $208 billion of mortgage-backed securities. Overall Chinese investment in the country has surpassed $300 billion.

One thing is clear – the Chinese love to gamble. With restricted access to gambling in their home country, they cherish the opportunities they get in western countries, particularly in the United States.

Steve Wynn has his own take on this phenomenon. He connects it to the post World War II opportunities and expansions that immigrants to the US seized to better their life and enjoy it to the fullest. Wynn believes that Chinese families demonstrate the same entrepreneurial spirit, working hard to build their wealth and disposable income, and spending it in any way they see fit, including at gaming tables.

To capitalize on the increasing patronage from Chinese gamblers, two Chinese-themed casinos will open near the Strip. One is Resorts World, which is scheduled for a 2019 opening, and worth a whopping $7 billion. Sitting on an 88 acre site with 100,0o0 square feet dedicated to gambling, the resort casino will have 3,100 rooms, a 4,000 seat theater, a panda habitat, and a convention center. The other is Lucky Dragon, which is slated to have 200 hotel rooms and a casino encompassing 27,000 square feet.