Macau legalized gambling in 1847, but it was not until 1962 when billionaire Stanley Ho opened his first casino - the Casino Lisboa, that Macau began to reap the industry's economic benefits. Before that, Macau locals had relied on fishing, firecrackers and incense-making for their livelihood.

Since then, gambling has become a huge part of Macau's economy and it now generates over 40% of the GDP (Gross Domestic Product) of Macau, with gambling taxes forming around 65% of Macau's government income. “Macau is on the verge of becoming the world's top revenue-producing gaming market,” said William Weidner, president and Chief Operating Officer of Las Vegas Sands. “Travel to Macau has increased explosively in recent years. Macau is poised to become the gaming and leisure destination of choice for a significant part of the world's population.”

The legendary Stanley Ho is an Asian gaming tycoon who controlled Macau's casino industry (the largest in Asia) for four decades until the government decided to grant additional casino licenses in 2001. Having enjoyed an absolute monopoly in Macau, Stanley Ho's gambling empire is now entering a new phase - learning how to co-exist with some of the strongest competitors from America's Las Vegas.

Macau has invited Las Vegas giants such as Sands, MGM Grand, and Wynn Resorts to open casinos in the former Portuguese enclave. The Sands Macau, a 300,000 square metre casino and entertainment complex, made history in May of 2004 by opening the first American-operated gaming facility in Macau.

This massive casino-hotel includes luxurious suites, a full service spa, restaurants, and a 24-hour tea terrace, set amid six acres of lush waterfront gardens. It offers high-rollers invitation-only membership to their Paiza club, which allows access to private jets, and helicopters; a 24-hour concierge, private entrances, exclusive gaming parlours and much more.

Las Vegas gaming giant MGM Grand has already begun construction in co-operation with Angela Ho, daughter of casino king Stanley Ho. The MGM Grand Macau is scheduled to open in the second half of 2007 and will occupy a prime waterfront location destined to become part Macau's casino strip. It will have 600 hotel rooms, suites and villas, a casino including 300 table games and 1000 slot machines, restaurants, spa and entertainment facilities. Marriott International, Hilton Hotels, Inter-Continental Hotels Group, and Four Seasons Hotels may also join the party.

"Everyone wants to get into Macau's gaming industry now; they see great opportunity to make it big over there,'' said Andes Cheng, a Hong Kong-based financial analyst. Before Macau was handed back to China from Portuguese rule, criminal gangs, famously known as Triads, followed the gambling money and fought over control of casino VIP rooms and loan-sharking operations. Today, with stricter Chinese government control, organized crime is no longer such a problem.

With the American casino operators onboard, Macau is striving to develop into a venue for business conferences and family entertainment. Aside from the glitzy casinos, Macau is considered to be the land of fortresses, museums, churches and temples, offering visitors a unique ambiance and one that is distinctly different from Hong Kong.

Macau is also famous for its diversely delicious cuisine and non-stop nightlife. It is a city that never sleeps, with plenty of bars, discos, shops, restaurants and, of course, casinos, open all night long. Gamblers too will be spoilt for choice when it comes to the variety of games available.

From the classic western games like blackjack and baccarat to popular Chinese games such as sic-bo and fan-tan, gambling in Macau offers an exotic twist. Gamblers have three categories of gambling to choose from: casino games, horse and greyhound racing, and now internet gambling.

Internet gambling is quickly on the rise, bringing with it games that never end, rules that are very much in flux and stakes best suited to players with bottomless pockets. Operators of gambling web sites believe that widespread prohibitions have created a vast reservoir of pent-up demand for their borderless product.

“The internet gambling market is huge, and I think everybody knows that Asian players are the most sought after… because they spend the most money and are the most fervent gamblers,” said Angela Ho, who is also president of the web site DrHo888.com (as in Stanley Ho). This on-line gambling site has recently seen monthly wagering increases of up to 40% by almost exclusively Asian clientele. Mrs. Ho attributes this rise both to her father's fame and to the rapid growth of the market.

Because internet gambling is not addressed by Macau's gaming laws, authorities have made no effort to rein in the activities of the Ho-linked web site. While most countries currently have no established laws pertaining to internet gambling, web site operators are betting that their offshore competition will eventually force many jurisdictions to legalize and regulate it, once they realize that they can't effectively ban it.

With gambling illegal in mainland China and Hong Kong (except for horse racing and lotteries run by the Hong Kong Jockey Club), Macau has a great advantage. Singapore recently jumped on the gambling wagon by legalizing casinos in April of 2005. Yet analyst say Singapore probably won't cut Macau's gaming revenue, because the cities are vying for different markets.

David Carruthers, CEO of BetonSports.com, feels that despite the legal uncertainties, the time is ripe for newcomers to join the internet gambling boom. “My assessment is that everything's up for grabs, everything is in an evolutionary state,” he said, “providing you run your business properly, it's a huge opportunity.”

With such a massive explosion in the gambling world, it would be wise for all gamblers to heed the advice of a Chinese Proverb: “If you must play, decide upon three things at the start: The rules of the game, the stakes, and the time to quit.”