Integrated Responsible Gambling Strategy for the Good of Macau and Its Gaming Industry

Desmond Lam - a former assistant professor of marketing at the University of Macau. He is now a visiting senior research fellow at the School of Marketing/Ehrenberg-Bass Institute for Marketing Science, University of South Australia. He can be contacted at DesmondL@

The Macau’s casino gaming industry is full of surprises. For example, joyful news of a revival in gross casino revenue in the past months have now been replaced by fear of another potential round of “artificial” slowdown in revenue as a direct result of policies imposed by mainland Chinese and Macau governments. With plans for greater gaming control by the Macau government and news of tightened visa restrictions on mainland Chinese visitors from Guangdong province, some casino operators and investors are again worried about the future of their investment in Macau. After all, Macau is supposedly the biggest gaming city of the world. Still, its full potential has yet been fully tapped due to extraordinary internal and external events.
Now that the global economic crisis has stabilized, casinos in Macau are back to their usual self and forgetting one of the key reasons for the previous slump in gaming revenue (especially in VIP game play): the drop in visitors’ number due to mainland China’s visa restriction. The current development of the Macau gaming industry is simply unsustainable in many aspects. Hence, the proposal for new measures on the gaming industry (i.e. increase age limit and control on gaming tables) comes after a period of super-growth and unsustainable development.

Responsible gaming refers to the provision of gaming in a way that minimizes the risk of harm to gamblers.

Rapid expansion of Macau’s casino gaming industry has not only brought about unanticipated problems in Macau (i.e. on infrastructure and labor demand) but also exported gambling problems abroad, particularly to mainland China, Hong Kong, and Taiwan. Media reports of problem gamblers, including gamblers who committed crimes to cover their gambling losses, have added to the worry that this unprecedented expansion creates greater harm than good. Despite the creation of so-called “integrated resorts” on Cotai Strip, these reports have damaged Macau and reinforced its current international image as a place for hardcore gamblers only. Sadly, the Macau government and its concessionaires still have a long way to go to turn Macau into a multi-faceted entertainment city; one that is also desired by the Macau residents and, most importantly, the Chinese central government.
There are many inadequacies. But one of the key areas that need to be addressed urgently is responsible gaming. Responsible gaming refers to the provision of gaming in a way that minimizes the risk of harm to gamblers. Generally, current responsible gaming concepts assume that gambling harm can be minimized but cannot be completely eliminated. These harms can vary in intensity and frequency (i.e. transient or chronic).
While most casino operators in Macau claim to have their own responsible gaming programs, there is little synergy between them. What Macau needs is an effective, coordinated, and integrated effort to promote responsible gaming to locals and visitors alike. This would call for  more proactive management of gambling harm and measures to reduce incidences (and prevalence) of problem gambling through an integrated industry- or Macau-wide effort. The Macau government can play a central role in this effort, either by appointing an organization to oversee the responsible gaming program or providing full support to an industry-appointed institution such as the newly-formed casino association.
Many executives whom I spoke to seem to think that responsible gaming is just a casual show of social corporate responsibility and does not mean much. “It is public relation and dealers don’t really pay much attention to it because the management doesn’t care much about it too”, said one executive. Such attitude towards responsible gaming is echoed throughout the industry. However, a sound, industry-wide, integrated-approach to responsible gaming is essential to the survival and sustainability of Macau’s casino gaming industry. It is also vital to the development of a strong Macau destination brand and can help to shake off Macau’s notoriously gambling-crazy image.
Why must we promote responsible gaming? After all, gambling is really a human activity that is performed across culture and time. There is fundamentally nothing wrong with the activity. Yet, gambling is one of the human activities that are often accused of destroying our social fabric. It causes disorder in a world that we try desperately to make sense of and to have control over. There are some businesses that are perceived to be worse than others in potentially destroying social values – gaming is simply one of them. Just look at Penghu residents and the anti-gambling groups in Taiwan and you will realize why. Many Asians are still not that receptive towards legalizing casino gaming. Asian governments are still trying to find a ‘right’ balance between economic growth and potential social disorders as a result of gaming legalization. How can they be blamed?
Macau’s casino operators have social responsibilities that they are obliged to fulfill – to make Macau and China a better place. The practice, public and proactive promotion of responsible gaming is good for everyone, be it the Macau operators, government, local residents, and gamblers. For responsible gaming measures to be effective, a collaborative attitude among all key stakeholders is needed. Collective actions by the gaming providers and game manufacturers, government, local community, even gamblers are needed to achieve outcomes that are socially responsible and acceptable. The suppliers of gambling services (i.e. the casino operators and the Macau government who provides the “venue”) in particular, have a joint responsibility to ensure that healthy gambling take place through measures like gamblers’ education. “Destructive” gambling in the form of problem gambling must be contained on the mass gaming floor and (especially) VIP rooms. A person is classified as a problem gambler if he gambles continuously despite causing harm to himself and those around him.
Although a proactive promotion of responsible gaming may use up valuable resources, it is a more sustainable casino business model for the Asian region and promotes greater public support in the long run. The protection of gamblers from harmful effects of gambling will only strengthen Macau’s gaming industry. A strong, publicized responsible gaming program, supported by the industry and government, shows a commitment to a sustainable gaming industry, instills confidence in employees, visitors, and countries (especially mainland China) affected by Macau’s expanding industry, and paves the way for a stronger and more positive Macau destination brand.
It is interesting to note that Taiwan’s anti-gambling movements have used Macau as a case study against casino gaming liberalization and development. These groups have exaggerated the social costs of an expanded gaming industry and muted the benefits it brought to Macau. In Singapore, however, the voices of support were stronger than that of rejection. This is partly because the government has tried to (visibly) address the concerns by many groups about the social costs associated to a casino gaming liberalization. National exclusion program, local entrance fees, and the setting up of a national problem gambling association were some of these measures proposed and implemented. Taiwan’s and Singapore’s liberalization process provides a valuable lesson to casinos operating in Asia: that is, a visible, comprehensive, and integrated social program must be in place to ensure gambling harm and gambling-associated crimes are minimized and controlled. This builds trust with the local community and overseas investors, paving the way for a more successful and socially more-desirable casino gaming industry.
Responsible gaming is good business. It is not a cost but an investment for the future. Embracing responsible gaming openly and wholeheartedly will move the industry into the right direction. It is the way forward for Macau’s casino gaming industry.