The industry of gambling in Asia has grown enormously in recent years to record revenues in the region in 2011 to $ 49 billion. Macao – photo – is the biggest market in Asia in the field of gambling, with revenues of $ 34 billion, and the growth rate as fast with a CAGR of 36% for the period 2006-2011. Singapore is the second largest in Asia, with revenues of $ 6 billion, followed by Australia with $ 4 billion, from South Korea with $ 2 billion and Malaysia and the Philippines with less than 2 billion each. According to a study by Allianz Global Investors Insights demand in the field of gambling is driven by strong economic growth and rising income of urban households in the region and exceeds the average growth of GDP. Through the development of integrated resorts and tourist destination, the sector is able to take advantage of the upward trend in consumer discretionary and rapid population growth of the wealthiest classes in China. The VIP segment is particularly important and contributes to 75% of the market in Macau and 52% of the market in Singapore. Recent macroeconomic problems have adversely affected the growth of the VIP market, however, offset by growth in the mass market thanks to the rise of the middle class in China. Overall demand growth is estimated at between 10% and 15% per annum over the medium term. The activity of gambling is highly regulated by local governments so the number of operators and the volume of the armature can be found. In regulated jurisdictions, Macao and the Philippines recorded an increase in supply with seven properties under development on a large scale. Also continued proliferation of gambling in new jurisdictions through its considerable economic advantages, such as the creation of jobs and increased tax revenue. Japan and South Korea appear to be the two most significant investment opportunities in the coming years. The industry of gambling remains an attractive investment area on the basis of income growth in the region and improved infrastructure. The large population in Asia, the growing cultural wealth and the propensity to gamble are all positive factors for the growth of this sector, which, in our opinion, represents an interesting tool for investing in the theme of consumption in the region.
