Measuring the Chinese Financial Crisis With Baccarat

The recent turmoil of the Chinese financial markets seems to be having a direct effect not just on Wall Street but also on the Las Vegas strip, where baccarat gaming volume took a sharp drop.

baccarat gaming tableIn the last few years, the explosive growth of the economy in China has created considerable wealth across Asia, a phenomenon that has resulted in a rush of Asian gamblers at casinos around the world.

Baccarat is a casino game preferred by Asian gamblers for a few reasons: they like the pace of the game and the flow of cards as well as the feeling of being able to take on the house with a few hands.

The Situation in Las Vegas and Macau

According to reports from the Nevada gaming commission, casino revenue in Las Vegas for July was dismal for the baccarat table, which lost 21 percent in revenue and 35 percent in participation.

A similar situation is unfolding in the casino haven of Macau, where the local government announced that the August downturn in gambling reached a dangerous 38 percent. For Macau, the August report signifies 15 consecutive months of losses, which are enough to enact austerity measures.

The sudden slowdown of the Chinese economy over the last few months is being particularly felt at places where money and speculation intersect: stock exchanges and gambling meccas.

Analysts who had predicted a sharp drop in the economic growth of China are amazed at how deeply it is being felt at the baccarat tables in Las Vegas. The gaming commission in the Silver State sounded the alarm in June, when baccarat volume fell by 43 percent on a year-over-year basis.

Gambling revenues in Las Vegas were expected to rise four percent during the summer, but the baccarat losses have actually reversed that forecast.