How gambling laws shape tourism and drive economic growth

Gambling laws vary worldwide, ranging from strict prohibitions to liberal policies that recognise the industry as an important part of the economy. These regulations shape the tourism patterns and the economy of famous destinations like Las Vegas, Macau, and Monaco, where gambling is celebrated and part of their identity.

Las Vegas: From desert to global playground

Gambling has been legal in Nevada since 1931. This makes it the first U.S. state to offer casino gambling, where players can embrace the thrill of the game in a legal, regulated environment.

Las Vegas' gambling laws

The Nevada Gaming Control Act of 1955 established strict regulations to ensure transparency and prevent organised crime from taking over the industry. Today, the Nevada Gaming Commission oversees the licensing, operational compliance and fair play within the gaming industry.

The law has allowed Las Vegas to grow into a global entertainment capital and the casinos to become a major tourist attraction. Nevada does not permit lotteries, with on-track horse riding limited to small events.

Besides casino operators, manufacturers and distributors of casino equipment must also obtain a non-restricted license.

How gambling boosts tourism

Las Vegas is still the first thing that comes to mind when most people think of gambling.

This is proven by the high volume of tourists coming from all over the world for some world-class entertainment and gambling experience. Las Vegas draws over 32 million visitors annually, with the average monthly volume reaching over 3.3 million people in 2024 (3% higher than the 2023 number).

Las Vegas' influence is indisputable. Even online casinos are still looking to mirror the excitement in Sin City, offering a range of Vegas slots inspired by the gambling capital of the world.

Gambling and the economy

Casinos with more than 15 slot machines must pay an annual tax of $250 per machine. A monthly tax of up to 6.75% on gross gaming revenue is also levied.

Macau: The gambling powerhouse of Asia

Macau has been labelled the "Monte Carlo of the East" thanks to its liberal gambling laws. Gambling in Macau has been legal here since 1850, under Portuguese administration. It expanded when the 2001 Gaming Law was introduced, which allowed them to open the market to international operators.

China's gambling regulations are stricter than most! Macau is the exception, being the only place in the country where gambling is legal. This explains why the government imposes strict laws to ensure the integrity of the industry, including anti-money laundering measures and restrictions on the number of gaming tables and machines.

The operation of games requires a concession granted by the Macau government, and specific licenses are also available.

As of November 2011, the exclusion of players from casinos is voluntary. The law states that any player can be banned from the casino if they submit a request or a family member does so on their account.

The economic impact of gambling laws

Casino operators are taxed on a fixed and variable basis. The latter is calculated from gross gaming revenue with a tax rate of 35%, plus two contributions of up to 2–3% for social and economic purposes. The maximum is capped at 40%. The fixed premium plus a premium per VIP table and slot machines is payable. Promoters pay tax on their commission.

How gambling laws are reshaping tourism

Gambling is illegal in mainland China, but Macau's casinos offer an escape for Chinese tourists. Recent changes in gambling laws are reshaping the landscape, as stricter regulations and a renewed focus have prompted casinos and operators to extend their offerings, making the region the perfect entertainment destination.

Monaco: Where luxury, glamour, and gambling meet

Monaco is known for being a playground for the rich, as it is estimated that 30% of the population are millionaires. Le Grand Casino de Monte Carlo is the most famous casino on Earth, filled with luxury and sophistication.

Gambling in Monaco was legalised in 1856 to combat the financial difficulties the ruling Grimaldi family faced. Monaco’s gambling laws are unique; for example, residents are prohibited from gambling at the local casinos, as the industry primarily caters to international tourists.

The government ensures strict regulations are maintained through the Societe des Bains de Mer (SBM), a public-private partnership that owns and operates Monaco’s casinos.

Where gambling meets tourism

This approach minimises the social issues associated with gambling. Monaco’s dependence on elite tourism limits its broader economic impact.

Gambling's effect on the economy

The country attracts millions of tourists yearly, largely due to the famous casino. Casino de Monte-Carlo is a major draw for the rich, and the revenue generated from the tourists significantly contributes to Monaco's economy.

Strict or lenient regulations?

The relationship between gambling laws, tourism, and the economy is complex. Gambling laws act as the foundation for regulating the industry. Consequently, they influence tourism, especially in gambling hubs like Monaco, Macau, and Las Vegas. However, overly lenient policies can lead to challenges, including economic overreliance on the gambling industry.