Venetian Macau Lays Off 500
Recent reports have unearthed the startling statistic that the world’s largest casino, the Venetian Macau, has just laid off five hundred members of its work force due to declining revenues.
As part of this sudden reaction to the global financial crisis that seems to be affecting many businesses around the globe, Las Vegas Sands Corp, who are the casino’s parent company also had to let go of one hundred of its managers. These staff layoffs account for two percent of the total based in Macau for the company.
The shock news flies in the face of contradictory reports from the Chinese Special Administrative Region that the number of visitors to Macau and its casinos are actually increasing. The latest figures released for November 2008 show that a total of 2.53 million visitors arrived in the casino hub of Macau. According to the Statistics and Census Service for the government, this is up around three percent on the 2.46 million figure presented for the same month last year. As part of that staggering statistic, arrivals coming from mainland China during the same period increased by 4.2 percent to 1.46 million.
Reports by news agencies have stated that for the first nine months of 2008, gaming revenues in Macau were up 45 percent on the same period the year before. Despite this rise, the overall revenues collected for the whole of 2008 will not be expected to show any financial increase on 2007.
This is disheartening news for the Venetian Macau and mega casinos in similar boats. The $2.4 billion Venetian Macau opened its doors to gamblers as recently as August 2007, so have not had time to recoup the enormous investments that went into funding the project.
On the other hand, it appears that there are some online gambling providers who have so far escaped the global financial crisis. In the online gambling hub of Tel Aviv, where super-brands such as Playtech, 888 and Mansion Poker have their homes appears to be riding through the storm of economic crises and coming through unscathed
It would appear that the online gambling establishments are open for business as usual and are in no way affected by external global financial problems. This could have a lot to do with the far lower running costs these businesses have compared with brick and mortar casinos, plus the simplicity of access with gamers sitting in their homes playing on their computers rather than venturing out to visit a real casino.