The Sociology of Gambling in China

THE SOCIOLOGY OF GAMBLING IN CHINA TJ Cheng Great Thanks to the Institute for the Study of Commercial Gaming(ISCG), U...

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THE SOCIOLOGY OF GAMBLING IN CHINA TJ Cheng

Great Thanks to the Institute for the Study of Commercial Gaming(ISCG), University of Macau, Macao Foundation, Macao Society of Social Science Study for Their Grants in Supporting This Research Project and Book Publication

To My Family Members Mother Sun Wenhua (1916-1982) A sweet heart and hard working peasant woman who enjoyed gambling, smoking, and chatting with other village ladies in Northern China’s severe winter seasons, and who always educated her children not gambling nor smoking. Wife Wang Quin A retired pediatrician who has never been interested in gambling nor smoking but endured all those days and nights with patience and encouragement while I worked on this book draft. Brother Ruijun A hard working farmer and rural cadre in countryside who feels guilty and regret for smoking and gambling in his old age after our mother passed away, although his gambling is not big, but very attractive to him. Son Peng and Hui Born in China, educated in USA, who do not like nor pay attention to gambling, but are both supportive to my writing of this book with collecting data from abroad. Without their support, the completion of this book will continue to delay.

Foreword Based on his teaching and research for years, Professor TJ Cheng in University of Macau has completed a manuscript entitled An Introduction to Sociology of Gaming, which will be published by the Social Sciences Academic Press. I have been asked to write a foreword for this book. I am in fact not familiar with gambling. From the daily information provided by mass media, however, I feel that gambling has become a social problem from which we cannot escape. Such examples as the craze for Mark Six in the Southern provinces, corrupt officials gambling in Macao and the United States, the cross-border sports betting jointly run by both sides of Taiwan Strait are found in the press. As experts in social development and social change, we should concern the gambling industry which is run as business. I’ve broadened my knowledge after I read the manuscript, and feel that it is necessary to conduct systematically sociological research on the industry. This work done by Professor Cheng can serve as a beginner's reference, and a foundation for developing this subject. Gambling, being a personal behavior coexisting with entertainment, has a long history. It should be said that it grows with the development of other aspects of human civilization. The gambling industry is a special phenomenon following the unequal distribution of wealth and the class stratification, a matter after the evolvement of agriculture. Although it contains certain element of entertainment, its negative social consequences should not be overlooked. Due to historical reasons, Macau, an ex-Portuguese colony, has declared gambling to be its leading industry, expecting its 1

The Sociology of Gambling in China

modernization and internationalization can lead coordinated and simultaneous development in other service industries. The development strategy should be said to be factual, and has its approval from the Central Government, as well as supported by the majority of local residents. Without doubt, the economic risks and the social costs, including its effect on the gamblers and their families, local and beyond, are enormous. The gain and loss and the long-run future of this type regional development strategy, converting Macao into a world-class gambling city, are not easy to conclude at this moment. I guess that its short term economic achievements and long term social consequences will both make the whole world surprised. It seems to me, being an introduction to a particular field in sociology, there are three characteristics can be found in this book. Firstly, it is a bold and far-sighted academic work. This book attempts to analyze gambling behavior in a systematical, all-round and multiperspective manner, raises the new term of “Sociology of Gambling” and suggests including itself into the study of sociology by becoming one of its branches. It seems to be a little weak in terms of the structure and chapters covered and the materials quoted, but the ethos of trying and exploration is very encouraging. There seems to be many reasons why there is not a widely accepted on sociology of gambling in one hundred years’ history of sociology, as suggested in the“Introduction”, but there is one thing for sure. That is, the ratio and effect of gambling plays in human life and socio-economic structure is still limited. Sociologists have never taken an attentive look at it, thus the “underdevelopment” of Sociology of Gambling is only natural. Professor Cheng works at the University of Macau, and gambling is the leading industry of the Macao SAR. Its importance is incomparable: Macao’s economic development and its people’s lives cannot leave it. Macau has superseded Las Vegas, in absolute money terms, becoming the world’s gambling capital. The creation of sociology of gambling may have had its bases coming together. Such a context may explain why Professor Cheng would like to set up this field. 2

Foreword

Secondly, there is importance and urgency in starting such a field. This is not only because of gambling industry has become Macau’s economic base, nor the proliferation of underground gambling in mainland China is rapid. As the economy and income per capita grows, the population participating in open and underground gambling, and the desire to do so grow as well. Facing such a situation, sociologists should not be ignorant on this, but start studying in depth on this phenomenon in time. There are different rules and policies on whether starting casino legalization all over the world. What policy the mainland should take requires serious consideration. Whatever side the government is going to take, evidence consisting macro-theoretical discussion and concrete empirical analysis should be valued over the impulse and moral judgments. The institutions and policies should endure the dual test of practice and history. With the growing of phenomenon of gambling in mainland China, departments of sociology in Chinese universities can consider including related contents as an introduction or an elective course. Thirdly, this book makes certain suggestions on policies of the gambling industry. This is mainly for Macau, but some ideas and measures can also arouse concern and thoughts among scholars and officials in mainland China. Here we can list two examples: one is the establishment of facilities serving pathological gamblers, and publicizing the negative consequences of gambling. Another is the gradual and partial legalization of gambling within China, with some concrete reasons. Whether gambling should be legalized is controversial in the world, just like prostitution. Each country has its measures and the results vary. We need to take much account of China's specific conditions and the experience of other countries and regions, including the experiences and lessons drawn in Macao, deeply study related problems and obtain broad public consensus before arriving at a sound decision. In short, gambling is an ancient and practical activity. Even the government has constantly banned, it is still sound and growing in mainland China, which makes gambling become an important research topic for social scientists. Professor Cheng’s act to designate gambling 3


as a field of study in sociology is very meaningful. Although I know nothing about gambling, I am recommending you this book. I believe that this can be an important reference to those concerned with the social behavior of gambling, casino business, and related policies. I am glad to see it published, and congratulate to the author by this opportunity. Ma Rong PhD, Brown University Professor & Chair, Department of Sociology, Peking University May 4, 2008 Beijing

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Preface & Acknowledgements This book will start with two ancient Chinese poems. One is describing gambling in Macao, the author of which is the famous Qing Dynasty patriot Qiu Fengjia, who had left this poem in his Poetry Anthology in Lingyun Building of Ocean & Sun. It says: 银牌高悬门市东，百万居然一掷中。谁向风尘劳斗色，博徒自古有英雄 1。 (Silver board at the east shop hanging high, Could win at once a million prizes. Who is in luxuries doing the bidding? Someone can be a hero in gambling.) The other one is a poem urging people to quit gambling. It said that once upon a time, an old scholar found his son indulging in gambling and wrote a poem of Gambling Drop to educate him. It says: 贝者是人不是人，只为今贝起祸根。有朝一日分贝了，到头成为贝戎人 2。［Bei & zhe may or may not be human being, disaster starts with jin and bei; there will be one day that bei to be divided, and the gambler will become a person with bei and rong.(In ancient Chinese, bei is originated from shell, also means money.)］

1 Quoted from Legendary of Tour Guide: Story from Macao Casinos, http:// zg.china-b.com/dy/503714.html. 2 Quoted from Zhao Zenghua: http://www.malu.gov.cn/Article_Show. asp?ArticleID=1917.

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The son couldn’t understand after reading, and then his father explained the poem to him in earnest. In Chinese characters, bei ( 贝 ) and zhe ( 者 ) put together is du ( 赌，gambling), and gamblers may or may not be human beings (depending on their behaviors). Jin ( 今 ) and bei ( 贝 ) put together is tan ( 贪，greedy); fen ( 分 ) and bei ( 贝 ) put together is pin ( 贫，poor or poverty); bei ( 贝 ) and rong ( 戎 ) put together is zei ( 贼，thief or bandit). According to this pattern, gambling, greedy, poverty and stealing are closely connected and, in many cases, a logic result of pathological gambling. His son suddenly understood what his father meant by that, and determined to give up gambling thereafter forever. Love gambling or quit gambling, legalization of it or banning it, those controversial issues can be regarded as a unity of opposites, and it is the very theme of this book. The idea of this book was originated from a detailed teaching outline composed about 5 years ago, which was delivered to students who had enrolled in my summer course for a gambling management class in 2003. On the one hand, it has been used as outline for teaching, discussing and reviewing for that course; and on the other hand, it was also used as a test to discover any possible new issues or problems for further improvement or perfection in the future revision and rewriting of it, in hope of enriching its contents, upgrading its academic quality, and increasing its readability. During the 5 years since 2003, the course of sociology of gambling has been taught for many times. There are numerous new ideas, suggestions and criticism, both from my students and outside readers, which have been collaborated into my new draft. Along with the astonishing rapid development of gambling business after breaking up the monopoly for decades in Macao, various social problems, as negative consequences of gambling centered economy, have been observed, and both Macao government agencies and the grassroots citizens have started to pay more attention to the subject of sociology of gambling. The student enrollment of this course has steadily increased. Academic research and publications on this subject 2

Preface & Acknowledgements

are also in rapid growth. 1 Today, after about 5 years of content enlargement, chapter and section’s restructuring, and many paragraphs’ rewriting, I am glad to see it to be published as a monograph of sociology in bilingual by Social Sciences Academic Press for the first time. However, because of the freshness of this subject in all over the world, let alone for the first time in Macao, there is no full-developed structure available, nor unified theoretical framework, not to speak of sufficient empirical data. As a very new branch in all the sub-fields of sociology, gambling sociology, or sociology of gambling, is not used to be my specialty of teaching and research. 2 For meeting the practical needs of Macao society, I was determined to readjust my focus, but I need to be helped through discussing with our students, therefore to gradually accumulate experience in this field. Thus, this book is not yet a very well developed outcome, but only a pretty rough research result, therefore errors and mistakes are certainly inevitable. I wish our readers can keep this point in mind. As the same time, the author wishes all people who have interest in this subject could contribute your efforts to help it grow, and all colleagues and friends who have read this book can provide, by all means, with your criticisms and suggestions. It is impossible to write and publish a book in such a short time on gambling sociology without the help of many friends, students and research assistants. The following people deserve special recognition: Albert Wong, MA in sociology from Binghamton University of New 1 By looking at the local mass media and academic journals, such as Macao Research, Journal of Macao Polytechnic Institute, etc, one could easily find out that, in recent year, the number of reports, comments, and research papers on gambling related subjects are greatly increased. For instance, a newly published Macao media named Hobbs Monthly Journal opens a special column for publishing special papers on gambling business. And it is very well received by readers. 2 Before coming to University of Macau, I used to teach and do research on Chinese rural development, rural sociology, population movement, rural laborers and China’s Cultural Revolution. I had knowing nothing about gambling, or sociology of gambling. Only since coming to Macao in 2000, I have gradually studied more about gambling business and related social issues.

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York, who helped me in data checking, note in-putting, and some text translating, back and forth between two languages of Chinese and English; Li Yuena, Zhao Xiao, Liu Tao and Yuan Zhe, who helped me in arranging the table of contents, designing the cover page, text formatting, and data collection, etc; Zhao Haibo and his colleague in Nankai University, who helped me in doing the preliminary translation of two chapters from their original Chinese version into English version; numerous students, both graduates and undergraduates, in my previous classes of sociology of gambling, who have contributed a great deal of ideas, suggestions and criticisms, on how to improve this book draft, but whose names are not being able to list here. At the last but not least, I want to appreciate the great help, recommendation and support by Professor Iu Vai Pan, University Rector, Hao Yufan, Dean of FSH, Hao Zhidong, Chair of Sociology, Liu Bolong, Guan Feng and Feng Jiachao, Director of the Institute for the Study of Commercial Gaming(ISCG), University of Macau, Professor Wang Wuyi and Zeng Zhonglu from Macao Polytechnic Institute, Professor Ma Rong, Chair of Sociology, and Shen Mingming from Peking University, and Director Xu Chunshan, Social Sciences Academy Press, which finally made this book possible. Any possible remaining errors, shortcomings and mistakes, needless to say, are all mine own responsibility. Any comments and criticisms will be highly appreciated. TJ Cheng Summer of 2008 Department of Sociology, FSH University of Macau

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Table of Contents Chapter 1 Introduction: Foreword to Sociology of Gambling

/1

1.1 What Is Sociology and Sociology of Gambling?

/3

1.1.1 Theoretical sociology and applied sociology

/3

1.1.2 General sociology and branch sociology

/6

1.1.3 The relationship between general sociology and sociology of gambling

/6

1.2 Why Should We Study Sociology of Gambling

/8

1.2.1 To improve Macao’s image and stimulate social harmony /9 1.2.2 To increase the degree of modernization in gambling industry

/ 11

Chapter 2 Def inition, Category, Purpose & Methodology

of Sociology of Gambling

/ 14

2.1 The Definition of Sociology of Gambling

/ 14

2.2 The Category of Sociology of Gambling

/ 20

2.3 The Purpose of Gambling Sociology

/ 25

2.4 Research Methodology of Gambling Sociology

/ 27

2.4.1 Observation method

/ 28

2.4.2 Historical/documentary method

/ 30

2.4.3 Investigation method

/ 33 1


Chapter 3 Viewing Gambling Culture from Historical

Perspective

/ 36

3.1 Human Nature & Gambling: The Origin and History of Gambling

/ 36

3.1.1 By the nature, human being likes to gamble from his origin

/ 38

3.1.2 Gambling and entertainment

/ 40

3.1.3 Gambling and money

/ 42

3.2 The Development and Cultural Integration of Gambling

Between China and Foreign Countries

/ 44

3.3 The Cultural Differences of Gambling Between China and

the West

/ 46

3.3.1 Confucianism, legalism and gambling activity

/ 48

3.3.2 Cultural difference between Chinese and western gambling / 50 Chapter 4 The Tendency of Modernization of Gambling Industry

/ 56

4.1 General Condition of Gambling Industry out of China

/ 57

4.1.1 U.S.A.

/ 57

4.1.2 Monte Carlo

/ 61

4.1.3 Asian-Pacific area

/ 62

4.2 The Legal and Underground Gambling Industry in

Mainland China

/ 66

4.2.1 The scale and speed of lottery industry development

/ 66

4.2.2 Aspects of underground gambling

/ 68

4.3 The Tendency of Gambling Industry Development-the Four

Orientations

/ 71

4.3.1 Orientation of popularity

/ 72

4.3.2 Orientation of legalization

/ 73

4.3.3 Orientation of entertainment

/ 75

4.3.4 Orientation of healthiness

/ 76

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Table of Contents

Chapter 5 The Positive & Negative Impact of Gambling

Industry to Social Development

/ 78

5.1 The Positive Impact of the Gambling Industry

/ 78

5.1.1 Enrich daily lives

/ 79

5.1.2 Accumulate social wealth

/ 82

5.1.3 Finance public activities

/ 84

5.2 The Negative Impact of the Gambling Industry

/ 87

5.2.1 Pure consumption of social wealth

/ 87

5.2.2 Stimulating a mentality for luck

/ 89

5.2.3 Tend to result in social tragedies

/ 91

5.3 The Prolonging Historical Debate on the “Allow-or Disallow-Gambling”

/ 94

5.3.1 Theory and practice on the “disallow-gambling position”

/ 94

5.3.2 Main theories of the “allow-gambling position”

/ 98

5.3.3 Life goes on and debate continues

/ 103

Chapter 6 The Application of Gambling Sociology

/ 106

6.1 Responsible Gambling, a New Issue for Macao

/ 106

6.1.1 Responsible gambling and corporation’s social responsibility

/ 106

6.1.2 Gambling competition in Macao: something new and something old

/ 107

6.2 Problem Gambling and the Treatment of It

/ 110

6.2.1 Definition of problem gambling

/ 111

6.2.2 Evaluative criteria for problem gambling

/ 114

6.2.3 The making of policies and laws

/ 127

6.2.4 Prevention and treatment institutions for ill-mental

gamblers

/ 128

6.2.5 Individual privacy and credit line

/ 132

6.3 Prevention Measures for Relevant Social Problems

/ 133

6.3.1 Pawn business

/ 133 3


6.3.2 Prostitution or commercial sex / 135 6.3.3 Drug trafficking and other organized crimes / 137 Chapter 7 Exploring Diversification in Gambling-Tourism Industry 7.1 How to Understand Comparative Advantages of the Gambling Industry 7.1.1 Monopoly advantages and comparative advantages 7.1.2 A real threat from legal gambling in Macao’s vicinities 7.2 Business Advantages and the Opportunity Cost 7.2.1 High risks for a unilateral industry 7.2.2 Understand the nature of Macao’s industry position 7.3 Turn Unilateral Advantage into Comprehensive One 7.3.1 Definition and implication of the comprehensive advantage 7.3.2 Search for dragon body and dragon tail of Macao’s economy 7.3.3 Favorable conditions for developing the cultural production Chapter 8 Controversy of the Opening Policy in Macao’ s Gambling Industry 8.1 How to View Foreign Investment in Macao 8.2 Is There Any Evidence for Political Plot? 8.3 Going Forward or Backward? 8.4 Some Policy Suggestions 8.5 Taking the People as Our Fundamental, Returning to Common Sense

/ 141 / 141 / 142 / 143 / 145 / 147 / 149 / 150 / 151 / 152 / 160

/ 164 / 165 / 168 / 172 / 176 / 178

Chapter 9 Conclusive Remarks: There Is a Long Way to Go, and Long Time to Come / 181 9.1 China Badly Needs a National Special Zone of Cultural Industry / 182 4

Table of Contents

9.2 Macao（and Hengqin）Have a Favorable Opportunity

to Develop Culture Industry

/ 184

9.3 Cultural Industry Needs Government Support

/ 187

9.4 The Opportunity Is Only Once

/ 192

Epilogue

/194

Appendix Ⅰ Timetable of Macao’s Liberalization of Gambling Industry

/ 197

Appendix Ⅱ A List of Casinos in Macao (In Business, Under Construction and Planning）

/ 209

Bibliography

/ 212

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Chapter 1 Introduction: Foreword to Sociology of Gambling


After about 100 years since the creation of sociology in Europe and America, it has been developed rapidly with each passing day, thus making too many new things for our eyes to catch up. There are about 56 subdivided branches for sociology in today. 1 We can find almost any special sociology for matching a specific aspect of social life, and particularly, those so-called “applied sociology” branches in meeting with social diseases are mushrooming in countless numbers, such as medical sociology, industrial sociology, agricultural sociology, aging sociology, community sociology, criminal sociology, etc. Yet, for such important social phenomenon of gambling, we have so far not seen special sociology that has ever been drafted. For those fragmentary works I’ve read, most of them just focus on specific issues, such as the history of gambling, social benefits and consequences of gambling, whether to ban or legalize it, how to treat problem gamblers and help them in rehabilitation and reintegration into society. etc, not really systematically discuss its pros and cons, nor study its process of 1 According to some American textbooks, there are about 56 different sociological specialities in today’s universities and institutions. See Emeritus Professor Ernest K. Alix from Southern Illinois University, Sociology: An Everyday Life Approach, West Publishing Company, USA, 1995, p.9.

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modernization, let alone to research it as a pillar industry. What’s the reason of it? Itself might worth to be studied. Now, Macao SAR has positioned gambling and tourism as leading industry for Macao’s economy, and the limited liberalization of gambling license has further injected new dynamics to Macao’s economy. We are witnessing more and better hotels and casinos under construction, bringing more business opportunities. In order to meet the new situation, more institutions are planning to establish training classes in providing instant courses to those who are going to be hired by forthcoming casinos. But if we briefly glance over all the newly designed courses, there is a lack of sociology of gambling 1. For this reason, the author has started to initiate the idea of drafting a monograph on this subject. Incidentally, while I was working on the structure of this book, invited by FBA, UM, several American professors from the State University of Nevada at Las Vegas came to Hotel Hyatt on March 12, 2003, for attending a conference on gambling management. One of them, Prof. Andy Nazarechuk presented a very enlightened lecture entitled “Problem Gambling and Its Social Cultural Impact”, during which he introduced the legislation and social practice in Las Vegas on how to reduce problem gambling. According to him, there are about 3 to 6 percent of casino customers have more or less symptoms of problem gambling. The law of Las Vegas requires all casino employees to take his course in order to distinguish normal gambling from abnormal one, 1

For example, UM offers a BA degree program on Gaming Management. Among its 24 major courses, most focus on either economics, management, or technology, only one is about psychology, one about law, and one about social and economic impacts of gaming. Only the last one has something to do with our sociology. The Institute for the study of Commercial Gaming(ISCG) in FBA, however, has invited many international scholars (including Professor Eadington from University of Nevada, Las Vegas) coming to UM to give lectures on responsible gambling, etc, greatly broadened the view of UM scholars, including myself. According to professors teaching in Macao University of Science and Technology, and Macao Polytechnic Institute, their gambling management programs offer much less courses than UM does, and more emphasis has given to technology and management, do not pay attention to its sociological aspect at all.

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how to identify problem gamblers, how to provide them with help, including 24 hours hotline phone service, necessary psychological and material support, enabling them to get rid of their troubles, returning to their normal and health social life. The humanitarian concerning and comparatively well equipped service system in Las Vegas have not only reduced the negative social consequences of gambling (strictly speaking, there is no business which has absolutely not produced negative consequence), but also helped to upgrade the reputation of Las Vegas as a casino city, improved the image of gambling, attracted more customers to go there for normal consumption, thus to stimulate the sustainable development for Las Vegas’ gambling industry. (Macao’ mass media have broadly reported his lecture.) Prof. Nazarechuk’s lecture is thought provoking. We can’t help to ask: If there are problem gamblers in Vas Vegas and other gambling cities, is there any similar problem bothering us in Macao? What’s the percentage of problem gamblers among Macao’s casino customers? Do we need to open our mind for researching on policies in dealing with them? Shall we start to discuss on how to establish social service system with similar nature? If our answers are positive on all those questions, we have to start with establishing the subject of sociology of gambling. In other words, we should start from the changing of people’s idea, start from educating our own talents on this subject. That is the original starting point and the final purpose of my drafting of this teaching and research monograph.

1.1 What Is Sociology and Sociology of Gambling? Because sociology of gambling is one sub-division of sociology, we shall look at first what is sociology and what it tries to research and what problems it tries to solve. Just like knowing a tree, if we want to know a branch of it, we have to start knowing the trunk of the tree. 1.1.1 Theoretical sociology and applied sociology The English name of sociology is composed by two Latin word-roots. The first one “socio” means society; the last one “logy” means study 3


or research. The combination of two means “social study” or “study on society”. It sounds interesting that after such a long history for creation of human societies, the history without writing-recording might be hundreds of thousand years, and writing recorded history has at least 5 to 6 thousand years, however, the systematic research on society itself, or the creation of sociology as an independent subject, has only been started as a new phenomenon since the latest one hundred years. As special social animals, human beings have many characters and abilities that other advanced animals don’t have, one of which is thirst for knowledge, or curiosity for doing research. Up till now, the scope for human beings to conduct scientific research has been unlimited, as small as molecular and atom to the micro world, as big as outer space to the macro world, human beings’ capacity for conquering nature seems enormous. In comparing to that, however, there is a big lack of research on human beings themselves. From physiology to psychology, to other aspects of human behavior, there are many new fields that we have not discovered yet, or not deeply enough done by previous research. In addition, along with the never-ending changing and development in social life, some originally accustomed conclusions are becoming outdated; therefore need to be replaced by new research results. Since sociology takes social progress and development as its own aims, thus in general, sociological theories are not in favor of the vested interests of ruling class, therefore, the creation and growing of sociology have naturally encountered with one hundred more times of difficulties than those natural sciences such as physics and chemistry. In the dark years of Middle Age (from the 6th to 16th Century AD), most European countries were under the absolute control of imperial and religious powers generated from kingdom and the Pope, except for the official scholasticism, there was no room for social sciences. The sprouts of sociology started from the Renaissance in Italy (from the 14th to 17th Century AD), appeared in an embryonic form during the European Enlightenment (especially in France in the 18th Century), after the baptism of French Revolution (1878) it was finally established 4


in Europe and America during the process of Industrialization and Democratic Revolution. Its founders were August Comte (1789-1857), a French scholar, and Herbert Spencer (1820-1903), a British scholar. Its three classical scholars include Emile Durkheim (1858-1917) from France, Karl Marx (1818-1883) and Max Weber (1864-1920) both from Germany. Each of them represents different schools and ideological trends. Then, what sociology really is? According to the definition in oftenseen textbooks, sociology is: “the scientific research on the nature of human society, and the interrelationship between societies and their members.” 1 At the beginning of sociology, the sociologists tried to summarize some general rules or patterns by the analysis of daily social phenomena in society. Just like medical experts who created medical science through research on humans’ body and diseases, sociologists also hoped, through research on social problems and social diseases, to find “social medical science”. Therefore, at that time, some people called sociologists as “social doctors”. Regular doctors were dealing with physical diseases and sociologists were dealing with social diseases. 2 At a certain stage when theoretical sociology has further developed, there appeared more so-called applied sociology, like medical science has further divided into many subdivisions such as internal medicine, surgery, pediatrics, stomatology, etc, sociology has also created its subdivisions, such as industrial sociology, agricultural sociology, aging sociology, criminal sociology (criminology), etc. 1 According to Ernest K. Alix, sociology is “the scientific study of the nature of human society and of its influences on its members”, which is slightly different from the above mentioned one, but talking about the same thing. See Ernest K. Alix, Sociology: An Everyday Life Approach, West Publishing Company, USA, 1995, p.1. 2 Comparing with other macro-sociologist, such as Karl Marx, Emile Durkheim’s agenda was more modest. He wanted to discover how society was structured and how it functioned. He wanted to use the knowledge he discovered to minimize the social discorder that accompanied industrialization and urbanization. See Yang Shanhua & Xie Lizhong, eds., Western Sociological Theory, Peking University Press, 2005, pp.118-122.

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1.1.2 General sociology and branch sociology Like anatomy and pathology in medical science which tells what’ s normal and abnormal of people’s health, general sociology, or introduction to sociology, mainly talks about social organization, social function, social conflict, social movement, and related theories and schools. As we mentioned before, along with the enrichment and development of social life, sociology is also rapidly growing by days, creating more and more branch subjects. The above mentioned applied sociology can also be viewed as medium and small branches of sociology. Of course, there are other divisions that are not based on different applied fields, rather based on different theories and schools. For example, regarding to the same phenomenon of social stratification (or polarization), functionalists have their own explanation, while conflict theorists have their interpretation. Their suggested solutions are not only very different, sometimes even contradictory. In addition, aim to different national, ethnical, even local characters, there are also national, ethnical, and community sociology. In short, after WWII, the development of sociology has been extremely fast and in flourish. As we have mentioned before, up till now, we might list as much as 56 different names in subdivided sociological fields. 1.1.3 The relationship between general sociology and sociology of gambling After understanding above mentioned relationship between general sociology and applied sociology, you will have no problem to understand the relationship between sociology of gambling and general sociology. Put it in a simple way: “Sociology of gambling is a specific application of general sociology into the social behavior called gambling.” It is both an applied subject of sociology, and also a quite new subdivision of it. The reason for us to say that it is an applied subject, because it pretty much focuses on analyzing and resolving concrete issues; for “quite 6


new” I mean that until recent time, there is no other sociologist has ever tried to establish a comparatively complete sociology system that particularly targeting on gambling activities. Many sociological works about gambling, such as the book entitled Gambling and Society which is composed by American professor William R. Eadington, is mainly targeting certain aspect of gambling, analyzing case by case, not a research on gambling as a social behavior, or as an economic sector from multi-angle perspectives. 1 For why, up till now, sociology of gambling has not been established as an independent sociological branch, there might be various reasons, but nonetheless, it must be linked to people’s traditional way of thinking. As we have mentioned above, most people think that socalled gaming industry is just gambling, belongs to low level of social behavior, difficult to be regarded as decency, who has enough interest and encouragement to conduct systematic research on it? Let alone to establish it as an independent subject of social sciences. The above mentioned stereotype comes from the deeply-rooted traditional culture, especially the long term impact of agrarian society and Confucianism. But in modern society, no matter in China or anywhere else, even in those areas which gambling is either illegal or semi-illegal, gambling activities or covert gambling activities are becoming popular by days. 2 Completely and absolutely banning 1 Professor William R. Eadington has authored and edited many articles and books, except the book of Gambling and Society: Interdisciplinary Studies on the Subject of Gambling (Springfield, IL: Charles C. Thomas, 1976), he also edited or co-edited Tourism Alternatives: Potentials and Problems in the Development of Tourism (1992), Philadelphia, PA: University of Pennsylvania Press; Gambling Behavior and Problem Gambling (1993), The Downside: Problem and Pathological Gambling (2002), both were published by Institute for the Study of Gambling and Commercial Gaming Institute, U. of Nevada, Reno. 2 We can see this controversy clearly from the conflict between China’s official policy on banning gambling and the reality of widespread activities of illegal gambling in Guangxi Autonomous Region. There are three listed laws on gambling banning, but when I traveled there to do social investigation, I saw many gamblers are playing in public parks, including many teenagers. See Liu Xianyue, Education Handbook of Banning Gambling, Guangxi Education Press, 1996, pp.88-95.

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gambling is not only impossible, but also unnecessary, even bringing some negative consequences (more later on this point). The social function of gambling has been fundamentally changed, and it is still changing now in many other places. In Macao, because of its historical effects and special position, gambling has not only been protected by the government, but also been designated as Macao’s key industry. Therefore, in Macao, to research and develop sociology of gambling has certainly access to the advantages of good opportunity, favorable geographical location and support from the people, thus we are just on a correct time to do this job. Here we may mention the issue of wording bias for some people. They prefer to use “bocai”（博彩）or “xinyun bocai”（幸运博彩）as better wording selection which sound good, and take as taboo to use “dubo”（赌博）, thinking it is a bad word. In choosing English word, they also avoid to use “gambling”, prefer “gaming”. It seems to me, however, this wording bias is meaningless. On contrast, it may even bring some confusion, misleading outsiders to regard us as ignorance. Why? Because everybody knows, gaming means play, recreation, or sports championship, such as Olympic Games. You will absolutely not translate it into “Olympic Bocai”. The reason is that, although there is winning and losing in Olympic Games, that is not for money, but for medal (worth almost no money in terms of gold). The difference by nature in gambling and gaming is: those have winning and losing with money (or its equivalent) are defined as gambling, and those have winning and losing without money (or its equivalent) are defined as gaming, no mater what ways and means are being played.

1.2 Why Should We Study Sociology of Gambling Our readers may ask: since there are so many branch sociology, and it seems every one of them to be more important than gambling, why should we bother to have another sociology specifically targeting gambling activities? For answering this question, we can view it from two different angles. 8


Overall speaking, or in general, to most social members, gambling and entertainment are certainly not as important as those of food, clothing, housing and transportation, nor as production and consumption which one cannot survive without them for any moment. However, to some social members, it might be very significant. This includes two meanings. on the one hand, for those casino customers, especially those addicted gamblers, no matter they get rich through an instant lottery, or lost their shirts overnight, the results of their behaviors have definitely meant a lot to themselves, their family members, relatives, and colleagues etc.; on the other hand, for those people who are making living by relaying on gambling, such as those in Macao and other gambling cities, gambling business is occupying big proportion, even as key industry. The size and condition of gambling industry is certainly giving heavy impact to local socio-economic development. 1 Further more, in recent 2 to 3 decades, gambling has rapidly developed in allover the world. Except for the continuation of traditional and spontaneous gambling activities in all societies, more and more countries and regions have been legalized gambling, naturally, involved population and money have also quickly increased. Therefore, no matter as a industry, or as a social behavior, gambling is attracting more and more attentions. Government officials, law enforcement agencies, NGOs and professionals are all trying to conduct deep and thorough research on it from their special concerned aspects, in order to stimulate advantages, minimize disadvantages, therefore to encourage societal benign circulation and sustainable development. In addition, from the reality of Macao society, there are two aspects of immediate significance. 1.2.1 To improve Macao薷s image and stimulate social harmony Although some Macao people prefer the word of “fortune gaming” 1 According to the research of Chen Bingqiang, etc, in the year of 2000, gambling taxation occupied as big as 66.9% for government regular account, and 75.5% for government regular expenditure account. See Chen Bingqiang & Chen Bingsong, Gambling Industry and Development Opportunity, Jingwei Press, 2001, p.61.

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or “entertainment business” because they sound better, outsiders, nevertheless, have no such taboo. They generally recognize Macao as “gambling city”, not call it “fortune city” or “fun city”. As personal activity, entertainment has basically no negative meaning at all. But as entertainment business, the meaning of it will have a big difference. Most people will naturally link it, more or less, with negative behavior, as “eating, drinking, commercial sex, and gambling”. 1 Gambling industry is always controversial. Many people distike it. Some governments are afraid of it, because it can damage community reputation. The reason might come from two sides. The First is the value recognition which has generated from traditional social ideology. Just like drinking wine. Occasionally drinking a little bit is quite normal, not harmful at all. But if one drinks too much and too often by over-passing certain degree and amount, he would become a drunker, engaging in no honest work, ruining his future, making family members suffered, eventually has to be cast aside by the society. The same is equally true to gambling. Occasionally playing a couple of times, winning or losing a little bit, has no harm either. Nobody would blame that. But once a person is addicted to it and has not self-control any more, a social tragedy would happen, such as to be a bankrupt, his family breakingup, etc. The second is that, because gambling has its side-effects, and it might ruin a person’s future and family, so the money generated from gambling business, at least part of them, might be regarded as illgotten gains, or dirty money. 2 The victim themselves and their family 1 Of course, when we say “negative” or “positive” here, we don’t mean anything legal, or illegal, we only say that is from people’s common sense. This is highly related to philosophy or ethics on viewing people’s behavior. Different people may have difference preferences. For instance, on the one hand, many people regard that they have their law protected rights to use their money for whatever purposes, but on the other hand, people still appreciate “thrift” as a merit, thinking saving things is better than waste things. However, under circumstances of luxury and dissipation, this common sense may also become controversial issue. 2 Similaring to the Chinese traditional culture, Korean government and the people, are generally regarding gambling money as illegal and dirty. Not only the law regulated that “no matter where gamblers borrows money(Continued on next page)

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members, once wake up, might hate the gambler’s behavior deeply, also have hostility toward gambling business, even become activists for banning gambling campaign. I try to limit the above analysis only to the side-effects of gambling, not talking those businesses more or less related to, or relied on, gambling, such as commercial sex, drug abuse, underground gang members, and other crimes. 1 The aim of learning and research on sociology of gambling is exactly to change the not-so-good image of traditional gambling business, to deeply analyze and recognize all aspects of gambling, including its sideeffects. Based on our research, we have also to seek ways to resolve the problems. Although we may not completely reject all its disadvantages, at least we try our best to control and minimize the social damage produced by its side-effects. In other words, on the one hand, we do what we can to avoid the creation of problem gambling, and educate customers to keep a “healthy attitude of gambling”, not to be indulged into addict, etc. On the other hand, once problem gamblers have been discovered, we may be able to provide our help and services for them, enabling them to recover themselves and return to their normal social life as soon as possible. In short, we simply try to reduce the brutality and ruthlessness which characterize traditional gambling business, to increase humanitarian solicitude which modernized gambling business should have, therefore to upgrade social harmony and social stability. 1.2.2 To increase the degree of modernization in gambling industry As heterodox activities in ancient times, gambling has been developed into legal business which is protected by government laws. From small business in certain countries and areas, it has further developed (Continued from previous page) from, they don’t have to pay back”, means that Korean law does not protect credit for gambling purposes; Korean law also prohibits its own citizens from entering casinos. They only allow foreigners to gambling in Korean casinos. See Liu Pinliang, Macao Gambling Industry in Length and Breadth, Joint Publishing (Hong Kong) Co., 2002, pp.386-389.

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into large business over-spreading in all continents and countries during a process of hundreds of years. Therefore, as an old business, will gambling be in a process of modernization from barbarism to civilization, from backwardness to advancement?

The Sands, is the first American invested casino in Macao. Since it got the full investment of multi-million dollars had returned back within one year, the same company has invested Venetian, another larger casino in Cotai Strip, located between Taipa and Coloane.

In order to answer this question, we do not need to look for data from far away. Just look at the old photos of Macao’s casinos taken in early last century, and compare those small shabby sheds with today’s luxury 5-star, even 6-star, hotel/casinos 1, you will certainly get the answer. After Macao’s sovereignty was handed over to China, why did the SAR government decide to terminate the monopoly of gambling license, and change it into 3 licenses for limited competition? One purpose is to bring internationally famous casinos to Macao, for increasing Macao’s international reputation by pushing forward its gambling modernization process. For the question about how to define modernization of gambling business, what is the standard of modernization, and how we increase the level of its modernization, etc, all those questions not only are the final aims of sociology of gambling, but also the research fields of it.

1 Among all Macao Hotel/Casinos, the newly built Crown Plaza which is invested by Australian and Macao local owners is probably the first one that announced to be the 6-star hotel/casino, although other later accomplished new casinos and hotels have claimed their own 6-star, or 7-star services as well. The details can be seen from the Casino/Hotel List in the Appendix 2 at the end of this book.

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Set to become the region’s premier corporate venue opened, The Venetian Macao-Resort-Hotel will offer 100000 square meters (1000000 square feet) of flexible convention and exhibition facilities that can easily accommodate events of any size, ensuring Macao’s status as a destination of choice.

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Chapter 2 Def inition, Category, Purpose & Methodology of Sociology of Gambling Referring to the definition of general sociology and specific sociology, we much keep our definition for sociology of gambling in proper category to sustain the test both from history and from practice. 1 Research methodology of it will follow those patterns of other subjects of social sciences, which mean to follow the consistency between historical method and logic method. In our approaching process, consideration will be given to comparative study on, and integration of, the three major sociological theories, namely the functionalist, the conflict and the inter-actionist theories.

2.1 The Definition of Sociology of Gambling According to the most broadly accepted definition of sociology (in many textbooks), sociology is “a systematically scientific research on social structure, social function, and social interrelationship”. 2 Since 1 On how to abstract and conceptualize for making definitions, please see Ernest K. Alix, Sociology: An Everyday Life Approach, West Publishing Company, USA, 1995, pp.19-23. 2 As we have mentioned before, there are many definitions for sociology which are slightly deferent from each other, but mainly have similar contents. This definition tries to combine three things together: social structure, social function and social interaction. See Ernest K. Alix, Sociology: An Everyday Life Approach, West Publishing Company, USA, 1995, pp.19-37.

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Chapter 2 Definition, Category, Purpose & Methodology of Sociology of Gambling

sociology of gambling is one branch of general sociology, and also its applied subject, the definition of sociology of gambling should be in general consistency with the definition of sociology. In other words, the definition of branch subject should not confront with the definition of its mainstay subject. According to this principle, we define it as follow: Sociology of gambling is a “systematically scientific research on gambling-centered social structure, social function, and social relationship”. Given this definition, we need to make four clarifications: First, what is “systematic” research? The so-called systematic research is generally considered from the perspective of both the depth and broadness of our research. Everybody knows that many institutions and individuals may conduct research on gambling behavior or phenomenon from their own different standpoints: governments study on whether gambling should be legalized or banned; casinos study on how to lure or attract more costumers to their gaming tables; gamblers study on how bidding for higher returning ratios 1; law enforcement agencies study on how to ban illegal activities both inside and outside of casinos, etc. But as sociologists, we are not concern particular gambling behavior, nor partial phenomenon of gambling, we rather focus on all social phenomena and problems which are related to gambling. Systematic research includes the extension of time (past, present, and future) and space (different nations and regions), as well as comprehensive research from multi-angle, multi-methodological and cross-disciplinary perspectives. Second, why it is “centered with gambling behavior”? That is because we have been limited, confined, and regulated by the specially defined category of this subject of sociology of gambling. As we know that categorization and regulation are starting point and end-result of all scientific researches. We may say that without category there would be no science. Now what we are studying is “gambling sociology”, not regular, general sociology, nor sociology about other special subjects, 1 See Len Miller, The Gambling Times Guide to Casino Games, Barricade Books Inc. 1983.

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but that one which is specially targeting at various social phenomena which generated from gambling behavior. No matter they are good or bad, positive or negative; they are all to be concerned. Third, what is the “social structure” which is centered with “gambling behavior”? All personnel, institutions, organizations, legislation, policies, regulations and social norms that relate to gambling business are combined together into our “social structure”. In other words, social structure is the totality of all components on which a society is able to exist, to be inked together, and is also operated properly. Just like a man’s body. It is structured with many parts, including torso, four limbs, head and feet, etc. It is also composed with bones, muscles, blood vessels, organs, nerves and other systems. The composition of a society has similar characteristics with that of a human body. It is also structured with many parts. Different parts are not being put together simply and randomly, but are structured by following certain rules and regulations. To study on social structure, just like doctor to study on human body autopsy, is not only required to understand what composed of society, but also has to know how it is composed. Fourth, what is the “social function” centered with “gambling behavior”? After knowing what and how a society has been structured, we should also know what the usage of each composed part, or what the function of it. There is a school in sociology that has been named functionalist group who pay particular attentions to social function by starting with social function when making analysis on almost every social phenomenon 1. Just like doctors in treating their patients. A patient might seem quite well in appearance and looks nothing wrong with his physical structure. Through X-ray and laboratory test, however, it’s been found that he has problems of functional disorder in his body, either a digestive disorder, or a blood circulation disorder, that makes his body unable to operate properly, therefore various symptoms have been generated. 1 See Yang Shanhua & Xie Lizhong, eds., Western Sociological Theory, Vol.2, Peking University Press, 2006, pp. 28-55.

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In talking about gambling business, we have to mention many functions. First of all, gambling has the function of entertainment. The earliest form of it was game and playing. Up till today, there are many people are still used to call gambling as gaming. For those who are employed in casinos, it has the function of employment; 1 for government agencies in charge of regulating gambling business, gambling has the function of taxation. Except for those positive functions in entertainment, employment and taxation, is there any negative function in gambling? Of course yes. The reason for human history, no matter in China or overseas, in ancient or contemporary, is full of debates on legalization or banning gambling, is exactly because the obvious byproducts it has. Its major byproduct, or negative function, is to redistribute existed wealth among social members according to opportunity and luck, does not promote any single increase of the total amount of social wealth. Because of that, it will inevitably stimulate the idea of trusting to luck, in generating shiftless, idle persons. To be sure, because of the above mentioned function of wealth redistribution, some guys wanted to be rich by overnight, but ended with debt trap, bankruptcy and family breaking up. For those disappointed losers in casinos and their family members, gambling certainly has the function of “seducing people to be addicted and sink low”, although this function is not necessarily the purpose of the casino owners. Most officials, scholars, and masses who advocated for gambling banning were upholding the above opinion. Nevertheless, according to gambling legalization advocates, the problem of the addicted gamblers is not gambling itself, but the lack of self-control of gamblers themselves. It is them that cannot correctly treat gambling, therefore become addicted. This looks like the attitude 1 Gambling business could provide with highly paid jobs, and this can be seen obviously in Macao today. Many low educated young employees have been attracted from other sections into casinos with much higher salary, making Macao to be a society with labor shortage. See Ji Xiu’s article “On Macao’s Quality of Human Resources”, Hobbs Journal, No.5, March, 2008, pp. 14-19.

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toward smoking and drinking. Properly smoking and drinking a little bit do not hurt at all, even might have some benefits. Why most smokers and drinkers do not become addicted, only a small percentage of them have become excessive consumers, difficult to get rid of their deeprooted habits, and even lost their lives? Should they be blamed for lacking self-control and self-knowledge? This is the front garden of the first American invested casino “Sands”, after which more huge building complexes have been constructed by other casino companies. As the Gambling King Stanly Ho once said, there are more casinos than rice stores in Macao today. However, nobody denies that the new casino has brought about new style of business to Macao.

The above argument certainly has its justification. However, this approach looks OK for analyzing smoking and drinking, but the same approach might not be looked OK if applied to drugs. While we analyze case by case, why not should we also blame those drug addicts for their own problems? Nobody actually force them to use illegal drugs. Is that because they could not self-control and self-discipline themselves? Then why government still orders crackdown on illegal drugs? According to laws in most countries, not only drug traffickers are illegal, drug consumers are also unlawful. There may be some similarities between drug and gambling in comparison. Therefore, the pros and cons in gambling industry is not a simple issue, but a sociological topic involving many complexities, and we no longer can view it as simply as our ancestors used to do. That is one reason for why we should do special investigations on gambling. Fifth, what is “social relationship” which is centered with gambling behavior? The social relationship we are talking here is not person to person relationship in our daily life, or private relationship, but the totality of all broadly-defined various social relationships. 18


Among many sociological concepts there is a difference between the so-called “micro-sociology” and “macro-sociology”. Micro-sociology refers to the study on the relationships among social members in a small group (say a family), such as those between wife and husband, parents and children, sisters and brothers, etc. But, macro-sociology tends to study relationships between different social groups, such as the relations between government and its constituency, between oppositional parties and the party in power, between employer and employees, etc. 1 As far as sociology of gambling is concerned, the relationship of its focus should include the complicated relationships among all social groups which are related to gambling business, such as those between government and casinos, government and citizens, casinos and their customers, casino owners and their employees, problem gamblers

The casino resort in Macau, which uses the MGM Grand Macau name, is the third largest American casino company behind the Bellagio and Mirage in Vegas. MGM Mirage made a joint deal with Pansy Ho Chiu-king, the daughter of Stanley Ho, whose company was controlling Macau gambling up to now.

1 About macro-sociology and micro-sociology, please see Emile Durkheim, Division of Labor, translated by George Simpson, New York, Free Press, 1947; Max Weber, Economy and Society, Vols. I-II, University of California Press, 1978; and also Karl Marx & Friedrich Engels, “The German Ideology: Part I” in The Marx-Engels Reader, ed. Robert C. Tucher, New York: W.W. Norton, 1967, pp. 146-200.

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and their family members, gambling business and non-gambling business, employed and unemployed, etc. No matter they effect on, or being effected by gambling business, or they are interrelated to each other, all of them should be listed into the research category of sociology of gambling. To this extent, I think the social relationships researched by sociology of gambling should belong to the scope of macro-sociology.

2.2 The Category of Sociology of Gambling After clarifying the definition of sociology of gambling, we are now continue our specific analysis, to see what kind of issues should be put into the category of sociology of gambling, because those concepts of social structure, social function and social relationship, are nevertheless too broad and empty. In order to clarify the issues to be resolved by sociology of gambling, we need further specification, looking at what kind of comparatively concrete social phenomena need us to pay more attentions. Because the origin of gambling sociology comes from the motivation of resolving the negative social consequences produced by gambling activities, therefore, some people think that the category of gambling sociology should aim at problem gambling. It is self-evident that solving problem gambling should be the responsibility of the whole society. As far as research scope is concerned, rather say that problem gambling is the responsibility of economics, public or business administration; I would say that, first of Before going to execution ground, criminal Huang Zhen (no relation with China’s former Ambassador to France) is writing down the following words: “It is gambling that destroyed me. Please don’t gamble what so ever.” (Quoted from web news titled “True recording: one death penalty prisoner’s last 5 hours”. http://peacehall.com/)

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all, it should be the responsibility of sociology and social psychology. It seems to me, regular training in sociology and social psychology is still not enough to deal with it. Only a background of overall and systematic training in gambling sociology could be possible to provide enough knowledge and skill. However, as one branch or a new subject of sociology, gambling sociology should have a much broader and more sophisticated category than simply resolving problem gambling. My tentatively assumed research category should include the following 5 aspects. First, to help the establishment and moral recognition for “normal gambling business”. From the perspective of traditional ideology, the above mentioned suspicious attitude toward gambling has nothing wrong. But from the perspective of modern society, or the idea of openness and development, those continuous stereotypes even prejudices toward gambling should be challenged. This is in nowhere to be truer than in Macao where government relies on it for taxation, people rely on it for employment, and even more than half of our social functional institutions rely on it for operation 1. Facing such an important and vital key industry, how could we ignore the significance of it? And how could we possibly leave it in drifting by itself without doing research and programming for its future development? In contrast to the often been criticized problem gambling, modern society should advocate and protect “healthy gambling” or “normal gambling”. Even in mainland China where gambling has been banned for many decades, there are signals for control reduction and more liberalization on gambling. Various official and semi-official gambling activities (such as sports lottery and welfare lottery) are in flourishing gradually. In other words, we have the needs to help legitimacy for normal gambling by establishing necessary moral recognition of it. To the issue on how to distinguish abnormal gambling from normal one, 1 Even our University of Macau, as well as other several public high education institutions, has to rely on government budget to its establishment and operation. And more than half of Macao government revenue comes from gambling taxation, more discussion on this in later chapters.

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how to cure problem gambling, and how to protect normal gambling, and so on, we certainly need the help from theories, the stipulation of laws and regulations, etc. Therefore, gambling sociology emerges as the times require, and there is no question for the usefulness of its knowledge and skills. Wynn Macau', owned by Wynn Resorts, is a luxury integrated resort in Macau Peninsula, Macau, People's Republic of China, offering gaming combined with a deluxe hotel, restaurants, designer shops, spa, and a choreographed performance lake. It is the first Las Vegas-style integrated resort in Asia. Total investment was about 5.6 billion USD.

Second, to research the interrelationship between different subjects in gambling business. Analyzing from sociological point of view, the so-called gambling business actually can be further divided into the following three phenomena which are concentrated on different social levels: gambling behavior of personal costumers; gambling economy of casinos; and gambling industry of government. These three are both connected each other and also differentiated each other. Third, to search for the inevitable path for modernization of gambling by reviewing its previous history. If we say that the above analysis is basically focused on static examination of gambling, now let’s turn to dynamic analysis of it, that means to search for the historical rules, if there is any, for the development of gaming and gambling. By tracing back the history of gambling, it involves not only history of folkcustom, but also cultural anthropology and human beings evolutionary history; however, it will also involve some knowledge of futurity studies or studies on future forecasting, if we look forward. As the saying goes, “knowing of today is through the knowing of 22


yesterday”. Without knowing the history of gambling, it will be hard to understand gambling in today, even harder to predict its tomorrow. If we can confirm the evolutionary breakout from apes to human beings as one million years ago, the written history has been existed only for 5000 years, merely 0.5 percent of the whole history. Archeological discovery of relics of gambling activities has shown that they might have happened during the Neolithic period, about 10000 to 20000 years ago. If we extend the definition of gambling to all kinds of sports and competitions that containing winning and losing, rewarding and punishing, etc, the time of its origin might be much earlier. To some extent, it might be safe to say that “fighting is part of human being’s nature from his beginning”. However, at the early stage of human beings’ evolution, sports and competitions mainly focused on entertainment; winning and losing were only secondary. One fruit or a bean, even a piece of stone or wood, could play the role of stake. Only in much late time when society has been gradually alienated (into classes) and money fetishism created for worship then have appeared money-centered gambling business, licensed casinos, professional gamblers and problem gambling, as well as other social diseases that related to gambling industry. Nevertheless, society is progressing. Human beings have not yet lost the function of self-criticism and the confidence on self-adjustment. Along with the development of science & technology, economic Asia’s No.1 Entertainment Platform With around-the - clock g a m i n g, d i n i n g a n d entertainment all under one roof, StarWorld Hotel and Casino is undoubtedly the complete leisure destination of Macau. StarWorld Hotel is the tallest casino hotel in Macau and its contemporary design and modern facilities make it a shining landmark towering over the energized downtown Macau. The hotel’s wonderful service and remarkable facilities also set the benchmark for luxury travel and accommodation.

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growth, and popularization and progress of education, gambling is also gradually growing with time, toward the direction of popularization, modernization, entertainment and healthy development. Looking at the degree of attention and humanitarian concerning that casino city Las Vegas has taken toward its problem gamblers, what they’ve done has far exceeded the level of providing with services to people, but has fundamentally changed the managerial ideology of traditional gambling business, created a quite new way of thinking and philosophy. 1 If we take their experience as our own reference, it will not be difficult for us to know that, during a time of economic recovery, social transformation, and liberalization of gambling monopoly, Macao society should widen up its vision, catch up with opportunities, judge the time and size up the situation, conform to the historical trend, upgrade the standard and management level for its gambling business, therefore, to aim high toward the standards of internationalization and modernization. To the question of what should be included into gambling modernization? Could they be quantified into statistic indicators in order to make vertical and horizontal comparison? We will leave those questions for further discussion in later chapters. Fourth, to work out strategic planning in keeping sustainable development in Macao. If we say that the above 3 sections are still limited to analysis of gambling as it stands, therefore belong to micro analysis, then the fourth section will turn to macro-study on gambling industry, especially the relationship between gambling and other economic sectors. Mr. Edmund Ho, the Chief Executive of Macao, repeatedly warns us that, although the present situation has been so far so good with stabilized revenue, we cannot be blindly

1 According to Prof. Linda Hancock, in comparing with New Zealand, Holland, Canada and Australia, America is the poorest country in responsible gambling. Even some programs in Las Vegas, the focus is given more to propaganda than to practice. See detail from the outline of her presentation in University of Macau in September 19, 2007.

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optimistic. 1 What we should do is to be prepared for danger when have safety, or to provide against a rainy day, by seeking better ideas for long term development. We may have an inevitable question to answer: if there are more areas in our surrounding regions to legalize gambling in next 5 to 10 years, what Macao can possibly do to cope with it? Therefore, gambling sociology has to discuss the strategy and tactics of diversification of gambling business, to strengthen the basis and cultivate potentiality, to catch up with the time trends, to take advantages and avoid disadvantages, gradually nurture new industries for increasing the capacity in resisting any possible risks. Fifth, to perfect policies, provide with services, thus reducing and eliminating the negative effects from gambling business. This part belongs to practical application of gambling sociology, with emphasis given to prevention and treatment of problem gambling. The detail of this part will be discussed in Chapter 6. Hotel Lisboa, started business in June 11, 1970, was the first 5-star hotel in Macao. According to its web site, the landmark set in the heart of Macao, it is a testament to extraordinary elegance with its distinctive location and architectural design, 12 acclaimed restaurants and 24-hour entertainment, the Lisboa has truly earned its reputation as one of the Asia’s finest casino hotel.

2.3 The Purpose of Gambling Sociology After understanding the category of gambling sociology, we will ask in next: What’s the aim of gambling sociology? Or in other words, what’s the 1 See Edmund Ho,“Administrative Report for 2008”, p.8, also see the web site of China Review News, http://gb.chinareviewnews.com/doc/1004/9/0/5/100490516_8 .html?coluid=7&kindid=0&docid=100490516&mdate=1113170856.

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purpose(s) gambling sociology wants to achieve? This question is not only applicable to gambling sociology, but also to all subjects in social sciences. After all, social scientific research is not only for satisfying people’s curiosity, but is rather for achieving social aims that having specific and realistic significance. When discusses the relationship between “think sociology” and “do sociology”, Ernest Alix says, “The newly emerged critical capacity, combined with the ideas of rationality and progress, where important historical ingredients for sociology’s ‘tinkering motive’. Eventually, such tinkering would become known as social engineering.” 1 Through the studying of general sociology, we have known the three aims of sociology in general: the first one is to explain social phenomenon; the second one is to predict social development; and the third one is to control social deviance. In consisting with general sociology, gambling sociology should also have 3 aims. First, to explain gambling behaviors: including interpretation of gambling itself and other social phenomena that related to gambling. This is the original motive and starting point of our research. Bringing our curiosity and various questions about gambling, we are going to find the answer to the question of “why things go like this” through deep research. Second, to predict the trend of development for gambling industry. We might be able to enrich and deepen our knowledge on the history and present situation of many things through interpretation on phenomenon and answering questions. After being acquainted with things ancient and modern, we will be able to infer other things from one fact, therefore, to predict the future trend of gambling development. That is to answer the question on “what will happen in the future”. Third, to prevent and control negative consequences that generated 1 Ernest k. Alix, Sociology: An Everyday Life Approach, West Publishing Company, USA, 1995, p.10. This assertion has something in common with the famous Marxist notion that “the job of a social scientist is not only to explain the world, but also to change the world.”

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by gambling industry. Explanation of present and predication of future are still belonged to explanatory and annotation for objective reality. Yet, we know from earlier discussion that the responsibility of scientists is not only to interpret the world. More important thing is to change the world. If we can only passively give objective description of social phenomena, that is only a half-done job to its most; the other half job is to bring our activeness into full play in promoting what is beneficial and abolishing what is harmful for human society. That means correct controlling and conducting on social phenomena. But we must be very careful here. The word of “control” does not mean “suppress” or “crackdown”, but means to bring social rule to its full play for positive roles to the maximum, in the meantime, to eliminate or decrease its negative roles to the minimum. By doing this we may resolve social conflicts, cure social diseases, bring social life to the healthy direction as we hoped, thus to prevent and avoid social retrogression, crisis, and even chaos from happening.

2.4 Research Methodology of Gambling Sociology Before discussing research methodology, we need to answer the question of how to uphold the scientific nature of research method, because without scientific nature there will be no genuine sociology. When we say that gambling sociology is a subject of science, not a superstition, nor empty teaching and propaganda, it is because of that, social science has to follow three principles. First, the truthfulness of possessed data: that means coming from social life practice, not from subjective imagination; Second, the scientific nature of research method, including measurability, repetition, verification, same preconditions should lead to same results, etc; Third, the independence of research procedure. That means we have to follow academic conscience only, not be interfered by outsiders. That is especially true when we explain social problems and draw 27


our final conclusions 1. Sociologists should try to follow the scholarly recognized disciplines such as objectivity, justification, worshiping no published books, nor upper-level authorities, etc. Only after we uphold this scientific nature of sociological research then we can specifically discuss research method. Research methods of gambling sociology are similar to the research methods of general sociology, mainly include observation, historical documentary, and survey/investigation. Following will be the separate introduction for them.

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2.4.1 Observation method It is one of the basic research methods for sociology and other social 1 More on social research principles please see W. Lawrence Neuman, Social Research Methods, Qualitative and Quantitative Approaches, Boston, A & B Press, 2002, pp.1-19.

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scientific subjects. Its original motivation comes from the “curiosity” and “imagination” of human beings. It includes three basic trainings: looking at with eyes, listening with ears, and thinking with brain. A good sociologist must be a person, who is good at observing social phenomena, discovering social problems, and seeking answers by all means, as the saying goes: “insist on getting the bottom of the matter”. Observation method is further divided into two: “direct observation” and “involving or participating observation”. The so-called direct observation means that, as an outsider of certain social phenomenon, a researcher should observe from aside. The advantage of this method is the neutral position of the observer, not being influenced by the matter, easy to obtain objective and impartial evaluation and conclusion. As people call it: “The spectors see the game better than the players.” Another observation method is named “involving observation”. It requires researcher to get involved, to observe social phenomenon as one participant, to obtain observation results through joining activities. For those social phenomena that are comparatively complex and sensitive, it is difficult, and even impossible, for a researcher to observe from outside. In order to achieve research results, the researcher must join the event, to observe it as an equal social member. Only by doing so, he/she will be able to overcome observing difficulties and obtain first-hand data. This strategy of “fake actor with true drama” is often seen in sociology research. For instance, doing research on begging, prostitutes, drug trafficking, illegal gambling and underworld gang, etc, a researcher often has to play a part of a beggar, customer, prostitute, drug consumer, gambler, gang member, or at least a potential gang member. 1 1 Here it reminds me that Mao Zedong had been once traveled as a beggar with his friend Xiao Yu in Hunan Province when they both taught in a primary school in Changsha. The purpose of their begging was certainly for social research through observations. See Xiao Yu, I Begged with Mao Zedong, or The Early Biography of Mao Zedong, Taibei, Li Bai Press, 1989.

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Of course, we do not deny that involving observation has some technical and legal issues. Anyone who wants to do so must have a well preparation for it, in order to minimize possible legal disputes and safety risks. But one of the key issues is the moral ethics and tenacity of the researcher. One should remember that, as observer, participating is only for the convenience of observation. Participation is only a tool, and observation is the purpose. Don’t confuse one’s position by playing a drama, making fake into true, eventually being trapped into mud and cannot get out. Of course, in such a colorful world there are all kinds of strange things. Some people, including scholars, are truly doing things such as going to prostitutes, dug abuse or gambling. But when discovered by others, they try to lie by saying that they are “practicing life” for academic research. What they are doing is actually selling horsemeat as beefsteak, painting black on academic research. Their ethics is even worse. For those so-called scholars, we’d better to have a high alert. 2.4.2 Historical/documentary method It is also named Historical and Documentary Method, mainly to keep track on previous history to see how our predecessors doing research and analysis on similar issues. The above mentioned observation method is obviously suitable to looking at the presently going on social phenomenon, that’s the current social issues. But in many cases, in order to have a better knowledge on current problems, as well as on predicting their future, we also need to keep track on the origin and development of those social problems, that’s the history of them. For those things have been passed we certainly have no way to observe them directly, the only thing we can do is to seek help from research on historical documents. Thanks to the innovation of language, printing and publication, which enable us to search data of many important historical events from the piled-up written records for hundreds and even thousands of years. The later the time is, the more records will be available. Entering modern times, there are more data we can access in terms of voice, picture, and other electronic records, such as movies, TV pictures, tapes, CDs, 30


micro-films, etc, thus extremely increased the amount of historical data. However, facing the tremendous volumes of historical data, researchers often get confused, wondering which of them is most useful. Sometimes it’s hard to screen out the true things from the faked ones, therefore might be deceived and misled by pseudoscientific data. 1 How to distinguish true from fake? How to avoid misleading and to achieve better results by less working? To a scholar, there is no short cut except for long term academic training, gradual accumulation of experience, and a serious and scientific spirit for conducting research. I merely can offer two useful suggestions: First, try your best to use first-hand materials (or primary data), use less or not use second-hand materials (or secondary data). The so-called primary data means the directly investigated data for the first time to publish, including many primary sources, such as statistical report, various office paper, original records, observation notes, and interview notes, etc; Secondary data are those have been used by other researchers and published as other people’s research results. As saying goes, they are the “bread that has been chewed by others. The taste and nutrition within it have been absorbed by others. What does it taste like for you to re-eat it again? Quoting secondary data is not only tasteless; a much higher risk is the possibility of involving other people’s points of view and bias, thus to deform the original data. That’s why we have to be very careful. Second, some students may ask: how can I do if I cannot find any first-hand data? This situation often happens in those places where book and data collections are comparatively lack. Other students may be lazy, afraid of the hard working in writing, therefore they like to cut and paste other people’s work. Especially in today that computer internet is so popular, and it’s not difficult to fabricate an article through cutting and paste. This problem is linked to the ethics and legal risks of plagiarism 1 More on literature review please see W. Lawrence Neuman, Social Research Methods: Qualitative and Quantitative Approaches, Boston, A & B Press, 2002, pp. 95-116.

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which cannot be tolerated by the university. I suggest our students to struggle against this misconduct. Otherwise, it will ruin the reputation of your university and your career development for the future. Dose it means we absolutely cannot use secondary data in any case? No. I don’t mean that. In case we cannot find first-hand data, we certainly can use the secondary ones. But we should use them carefully, not simply copy it. First of all, we have to indicate where it comes from, and why we quote it. It’s better to do some homework on those secondary data, try to exclude any possible bias, or to explain why bias has happened. Secondly, if possible, we should compare those data with other secondary data, to see whether somebody using the same data but draw different conclusion, if yes, we must quote both conclusions, thus to carry on the principle of objectivity and fairness. Finally, if you only agree with one point of view, oppose the other one; you must give adequate explanation on why. Only after upholding those above mentioned standards then it will be possible for us to maintain the scientific nature and seriousness in our sociological research. For example, we may think to use the method has been used by American scholar Herman (1976). He introduced a classificatory scheme which he borrowed from Roger Caillois (1958), a French humanist, who concerns the properties of games. He proposed a scale of freedom of expression, movement and emotions, and categories based on the subjective experiences of participants: competition, chance, simulation and zealousness. From this, Herman suggests subsuming many partial information of gambling and providing a more efficient paradigm than the medical model, which is linked with the mainstream life of the larger culture. 1 Of course, it is always easy to talk than to apply. We still need to work out some kind of functional model to be easily applicable for regular people to use. 1 Herman, R. D. (1976), “Motivations to Gamble: The Model of Roger Caillois.” In W. R. Eadington (ed.), Gambling and Society: Interdisciplinary Studies on the Subject of Gambling, pp. 207-217. Springfield, IL: Charles C. Thomas, p. 207-214.

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2.4.3 Investigation method Investigation is another method commonly used for social sciences. We obtain research data through directly contacting with social members, asking their attitudes, points of view and patterns of behavior. Investigation method can be further divided into two categories: interview and questionnaire. Interview is a method during which an interviewer will ask interviewee questions face to face, or through telephone, according to a prepared question list, and the talk will be recorded on paper. This involves many technical issues: such as how to choose interviewees? When and where will be good to do the interview? What skills we should have in designing the contents and formality for the interview? What should we do if unexpected embarrassment happens? How to protect the privacy of interviewees? How to increase the quality of interview? In other words, how to increase the effectiveness and credibility of investigation? How to train interviewers? etc. Those problems have been discussed in the classes of social scientific research methods, we only mention these things briefly here, without going to the details. Because of the high cost of time and energy, it’s hard to collect large quantity of data in limited time, thus researchers devised questionnaire 33


method. All listed questions were printed on papers, then mail out or distributed by hands, after filled up by the people taking part in investigation, then collect them back through mail or by person. This method is particularly good for large member and wide scope social survey or sample investigation. For example, Macao uses this method to carry its census in every ten years. In conducting a sampling survey, the researcher has to solve the problem of “sample selection” first, that is to decide the sampling percentage and selecting method. As far as sampling percentage is concerned, too big percentage means a too high cost, and too low percentage means less degree of representativeness. For how to balance the two extremes, it requires some skills. Generally speaking, if the total number of sampling pool is small, the percentage of selection should be higher. For instance, in a small school with only 2000 students, it is not difficult to make a 10% sampling, because that only involves 200 students. But in whole China which has a population of 1.3 billion, the same 10% sampling still involves more than 100 million people, very difficult to work on. If we can reduce the percentage to somewhere in between 0.1% to 0.01%, limit the total sampling number within 120000 to 1200000, the feasibility for working will be substantially increased. The Chinese Academy of Social Sciences (CASS) has conducted several sampling survey on per capita income and consumption, the sampling percentage of it was limited to 0.01- 0.03%. 1 In addition to sampling percentage, there is also sampling method. It includes stratified sampling, group sampling, convenience sampling, random sampling, and etc. The most often used one is random sampling. The principle is to give every element in the sampling pool an equal opportunity to be chosen, therefore, to prevent bias. There are many methods of random sampling, such as selecting according to telephone numbers, address numbers, or “random sampling table”, etc. We are not 1 See Zhu Qingfang & Wu Hanguang, Social Indicator System, Beijing, Chinese Social Sciences Press, 2001.

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going to the detail either, since you should learn this from other courses of research methods anyway.

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Chapter 3 Viewing Gambling Culture from Historical Perspective This chapter would like to exam gambling from historical perspective, mainly including the origin and early forms of gambling, gambling and human nature, gambling and entertainment, gambling and money, east-west exchanges in gambling culture, integration and differences between different cultures, etc. But before going to the detail of history, let’s look at first what is culture, or how should we define culture? According to Bierstedt, “culture is a complex whole consisting of what we think, how we think, and everything that we have acquired as members of a society”. 1 A classical anthropological definition of culture is: “That complex whole which includes knowledge, belief, art, morals, law, custom, and any other capabilities and habits acquired by…(People as members)of society.” 2 According to those definitions, there is no doubt that, just like marriage and funeral, gambling should belong to a cultural phenomenon.

3.1 Human Nature & Gambling: The Origin and History of Gambling Before searching for the origin of gambling, we have to clarify the 1 Robert Birestedt, The Social Order, 4th ed, New York: McGrawHill, 1974, p.150. 2 E.B.Tylor, Primitive Culture, London, John Murray, 1871, p.1.

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Chapter 3 Viewing Gambling Culture from Historical Perspective

definition of gambling also. After all, what is gambling? Although we have briefly mentioned this before, that is neither accurate, nor authoritative. Now let’s look at the most authoritative definition of it. The Chinese Cihai (a large Chinese dictionary, literally means vocabulary sea) says: Gambling is an abnormal (inappropriate, illegitimated, etc.) entertainment, which has various forms of playing, such as cards playing, stake casting, etc, by biding money or property for deciding winning or losing.” 1 According to the Great Chinese Dictionary, “Gambling is such a play that will lead to winning or losing according to which money or property has to pay or being paid.” 2 According to the Great British Encyclopedia, gambling is defined as “contests that take valuable things as stake for which players are aware of the risk but hoping to get the profit by chance which is totally decided by opportunity.” 3 In sum, gambling should have three components. The first is the subject of gambling, that’s the people who directly take part in it, for the case of table or group; or indirectly take part in, for the case of drawing lots, or buying lottery tickets. The second is the means (or tools) of This picture is describing how kids are enjoying cricket fighting, from which we can see that kids like gaming from their nature, and also, this game could become a tool of gambling. It might not involve money at the beginning, except for marble balls or candies only, but the nature of gambling is the same. (Quoted from “Why cricket fighting could effect the Chinese for 1200 years” . www. secretchina.com/, 2007-10-05.)

1 Shanghai Dictionary Publishing Co., Cihai, Shanghai,1989, p.1624. 2 Taiwan Institute of Chinese Cultural Research Institute, Grand Chinese Dictionary, Taibei. Quoted from Guo Shuanglin & Xiao Meihua, The Gambling History of China, Taibei, Wenjin Press, 1996, pp.203. 3 Encyclopedia Press, Great Britain Encyclopedia (Chinese edition), Beijing, quoted from Luo Xinben & Xu Rongsheng, Ancient Chinese Customs in Gambling, p.2.

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gambling, as small as a coin, a set of poker, several pieces of marble ball, as big as computerized wheel and slot machines, etc. The Third is the prize money or other valuable things. As long as having these three things, a behavior can be defined as gambling. 1 3.1.1 By the nature, human being likes to gamble from his origin As a kind of personal behavior, gambling started from the early period of human beings life. During war or hunting time, a clan head or a tribal chief encouraged winners by granting them award in kind (of anything), therefore initiated the earliest gaming and gambling. Later on, in order to stimulate other forms of contest or competition, different kinds of reward (such as trophy, ornament, slave, or money) were also granted, thus gradually regulated a pattern system for gaming and gambling. 2 Another explanation of the origin of gambling stems from religion, believing that the deities controlled the result of the game. Chance is not decided randomly, it was in fact predetermined by the God. 3 For the question of why human beings have such motivations on fighting for “higher or lower, winner or loser, victory or failure”, I think that there has something to do with the animal nature of human being, namely the law of “natural selection & survival of fittest” from Darwinism which is general applied to the mother nature. (Sometimes, people also call it “the law of the jungle”. But how do you think of its application, or implication, to human society? Do you really agree with the so-called Social Darwinism? If it is equally applicable to society, 1 Guo Shuanglin & Xiao Meihua, The Gambling History of China, Taibei, Wenjin Publishing Co., May of 1996, p.2. 2 A related theory states that sports betting acts as an alternative for competitive sports, with the male removed from stadium. See Schuetz, R. (1976), “Sports, Technology and Gambling”. In W. R. Eadington (ed.), Gambling and Society: Interdisciplinary Studies on the Subject of Gambling, Springfield, IL: Charles C. Thomas, p.61. 3 Bolen, D. W. (1976), “Gambling: Historical Highlights and Trends and their Implications for Contemporary Society.” In W. R. Eadington (ed.), Gambling and Society: Interdisciplinary Studies on the Subject of Gambling, Springfield, IL: Charles C. Thomas, p. 7.

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what’s the difference between jungle and society, and between human and animal?) The other part comes from the deliberately pushing forward and intentionally description on competition. Because of the society to give too much material resources as well as spiritual admiration toward victory, and that would naturally stimulate people to fight for their life. If we observe little children, you will see how serious they are on winning and losing in their games (on couple marbles for example), then it will be easier for us to understand that motivation of gambling has something to do with human nature. There is nothing more interesting than watching boxing, with the winner’s face flushed with victory. At the same time, the loser is unwilling to show his weakness, swearing not to give up and must turn his failure into victory, etc. In this sense, we may say that “by the nature, human being likes to gamble from his origin”.

In big cities like Shanghai, Beijing and Tianjin today, cricket fighting becomes popular again, sometimes gathering 10000 people. Some reports saying that shows the people have more money and interests to enjoy their leisure time. However, just like playing with flowers, dogs, or stocks, if involving no money for gambling, people’ s interests would not have been that high. (http://www.secretchina.com/, 2007-10-05)

When was the earliest time that human beings started gambling? What’s the ways and means for their gambling, how many people can play game together, and how do they decide winning and losing, etc.? There is no common conclusion on those questions yet. But according to archeologists, there are carefully polished colorful marbles have been discovered from many tombs dated back to the late period of Paleolithic (14000 to 20000 years ago). From the order and position of those marbles being put, they looked not like ornaments, nor tools and currency, more likely as the most favorable toys, chessmen, or gambling 39


Some scholars think that dice might be the earliest device of gambling in prehistoric times. It might be made of stone, animal bone, or ceramics. The earliest archaeology discoveries of dice were from Iraq and India about 3000 BC.（This picture is my imitation based on a very poor quality picture from Luo Xinben & Xu Rongsheng, The Ancient Chinese Costumes of Gambling, Xian: Shannxi People’s Press, 2002, pp.3-4.）

device, or the combination of the three. In China the earliest written record on gambling appeared in Shang Dynasty, about 3500 to 4000 years ago. It was called “Lubo”, or “Bo xi”, the first time to use the Chinese character of “bo”. (The first time to use two Chinese characters of “dubo” happened in the Tang Dynasty （618AD-907AD）which was 2000 years later than Shang. From the unearthed relics, the game of Lubo looks like something between chess and jump chess. It was played by two persons. Each side had 9 or 15 chessmen, black or white, playing on a pre-lined chessboard. According to historical books, this game/gambling became very popular during the Spring and Autumn and Warring States Periods. But during that time, only males were allowed to play, and females were banned. 1 Except for LuBo, there were other forms of cultural activities or sports, such as chess (Yiqi), fighting game (Doxi) (cock-fighting, dogfighting or horse race), soccer (Quju) and etc, were gradually devetoping into ways of gaming and gambling. 3.1.2 Gambling and entertainment In summing up the gambling activities in early stage we might put them 1 Gender discrimination is pretty popular in China, especially in the traditional rural areas. Usually, at least in my hometown in central Hebei Province, females are limited to some gambling such as Mahjong and playing cards which often play with small money, but banned from big gambling such as Yabao, Paijiu, or other games.

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into the following three characteristics: First, gambling originated from gaming and sports. In early time, gaming, sports and gambling were combined together, and the main interests of the participants were competitions for skill, force or talent. Second, the purposes of games and contests were to encourage physical and cultural activities, stimulating people (particularly for youths) to increase their dynamics, happiness, strength and skills. Third, although entertaining competition also has winning and losing, with rewarding measures to be mainly awards of honor, material award only has symbolic meaning. In most cases, money and wealth do not, and should not, play important roles. The modern Olympic Games are named for athletic contests held in ancient Greece for almost 12 centuries. They were banned in AD 394 but were revived and made international in 1896. World War I and World War II forced cancellation of the Olympics in 1916, 1940 and 1944, but they resumed in 1948 and are held every four years.（http://news.xinhuanet. com/ziliao/2008-02/18/xin_06202052014008751 62353.jpg）

One clear example is the Olympic Games which originated from ancient Greece. The Olympic spirits lasted from 2500 years ago till today, were basically maintained the historical tradition. Now more and more groups and individuals try to put stakes in biding for certain sport item or program, making the sports to combine with money, therefore degrading them into tools or subsidiary of gambling through legal or illegal means. But the highest award in Olympic Games was only wreaths made of flowers and olive branches in ancient time. Only in very late years, the rewards have been changed into gold, silver or copper medals. The so-called Olympic Game golden medal, is actually 41


made of silver, only gilded with gold, does not worth too much money by itself. Its value of honor is much higher than its value of money. 1

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3.1.3 Gambling and money Up till very late stage of human evolution when the productivity of society had been greatly increased, division of labour in society and exchange of commodities had been gradually advanced, following the appearance of currency and luxury consumption products (gold, silver and jewelries) then the entertainment and competitions had been slowly linked with money and wealth. Especially when social stratification between rich and poor classes had further developed, a few people had more wealth and leisure time as preconditions for their concentration in gambling activities. They not only enjoyed the pleasure and incentive from gaming, but were also able to accumulate more wealth through this activity, thus created professional households of gambling (banker), as well as frequent gamblers, including a great number of problem gamblers. There are a few records in ancient Chinese writings on grand 1 Gu Xiaojie & Gu Qianyi, College English Reading, Chongqing Press, 2005, Vol.4, pp.47-48.

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gambling, and the most distinctive one should be “The Biography of Sun Zi” documented in Shi Ji (Historical Records，《史记》) by Sima Qian. The biography describes how Sun Bin, an ancient militarist, helped Tian Ji, a general in State Qi, win a horse race by applying a gaming theory, the often-told story of the “upper- middle- and lowerhorses”. According to the story, Sun Bin, after having observed and noticed that Tian Ji’s three horses fell a little behind those of his counterparts during each race, advised the general, “From now on, match your lower horse with your opponent’s upper horse, your middle one with his lower one, and your upper one with his middle one.” Acting upon Sun Bin’s advice, Tian Ji indeed won the final race by 2 to1 and succeeded in earning the large numbe of stakes conferred by the Lord of Qi. 1 Picture of Two Horses painted by Wei Yan, the Tang Dynasty artist. It is collected in Taipei’s Emperor Museum. This picture recalls our memory on the story of horse racing between General Tian Ji and the King of Qi. The story is quoted from “the Biography of Sun Zi” in Sima Qian’s Shi Ji.（http://bbs. btbbt.com/viewthread.php?tid=2856107&hig hlight）

The above story shows that at the same time of more than 2500 years ago, what the ancient Greek Olympic Games advocated was friendship, peace and health, but in State Qi, one horse race could have a large number of stakes. We might guess the spectacular scene of the gambling at that time, in which, probably, only the nobility members could participate. For those working people who could hardly have their meals supplied, or barely make their ends meet, they could only watch from far away, and sigh with regret. 1 Quoted from An Anthology of Chinese Ancient Literature, Beijing, Chinese Literature Press, 1998, pp.132-133.

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3.2 The Development and Cultural Integration of Gambling Between China and Foreign Countries After Qin (221-207BC) had unified China, the varieties and size of gambling had greatly developed. During the Dynasties of Qin and Han (206BC-220AD), except for Lubo, chess, cock-fighting, horse race, and soccer as we mentioned before, duck-fighting, goose-fighting, and dog race had also been included for gambling. During the Three Kingoms (220-280AD), Western and Eastern Jin (265-420AD), Southern and Northern Dynasties (420-581AD), Lubo gradually disappeared and been replaced by Chupu, Chinese chess, marble chess (go), etc. During the Sui (581-618AD), Tang (618-907AD), and Five Dynasties (907-960AD), Wosuo, Shuanglu, Caixuan, Yexi and Jiju (beating ball) gradually became popular. The two Chinese characters of “du” and “bo” had been combined into one word of “dubo”, and appeared for the first time in the book of Analysis on Tang Legal Reports that was published during the transferring time between the Dang Dynasty and Song Dynasty. The four Dynasties of Song (960-1279AD), Liao (916-1125AD), Jin (1115-1234) and Yuan (1271-1368) were regarded as a period of time in which gambling varieties had been enormously developed. Except for the games that carried on from previous dynasties, people had innovated more ways of game playing, such as polo, Xiangti, Chuhong, Sevenstate chess, cricket-fighting, etc. The Ming Dynasty (1368-1644) belonged to one of the high peaks of gambling in China’s history, during which Tianjiu and paper card This picture is a photo from the Tang Dynasty gaming device named Shuanglu, or Double Land. It was said that similar device, or slightly different variety are still being used in many casinos.（Quoted from Guo Shuanglin and Xiao Meihua, The Gambling History of China, Taibei, Wenjin Press, 1996.）

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had been invented and lasted till today. If we talk about the number of varieties of gambling, the number one dynasty should be the Qing Dynasty (1644-1911), the last empire in Chinese history. Except for those games inherited from previous dynasties, more devices have been created, such as Fantan, Huahui, Weixing, Shanpiao, Pupiao, Mahjong, Baigepiao (white pigeon ticket), etc, within which many of them are still popular today in Macao. After the Opium War (1840) and the following open policy which brought about foreign trade in 5 coastal cities (Guangzhou, Xiamen, Fuzhou, Ningbo, Shanghai), many gambling methods that were created in modern western countries have also been introduced to China, such as roulette, poker, billiard machine, etc. 1 Just like any other internationally cultural integration, there are many often-seen examples of communication between China and foreign nations in the history of gambling. The first importation of “foreign gambling” into China did not happen in the Qing Dynasty. By tracing back its origin, we know it happened as early as the Southern and Northern Dynasties which was about 1500 years ago. At that time, China imported a gambling method which was called “polosai” from the Middle East and India. After long time of indigenization it had become a popular gambling game which was renamed as “Woshuo” and “Shuanglu”. On the other hand, Chinese indigenous gambling culture has also influenced other nations on the globe. For instance, the Chinese invented I-go and Mahjong had a very long history of popularity. They had been introduced to overseas lands in hundreds of years ago, and have now become popular games all over the world. Another example is Keno, a very popular game for gambling in Europe and North America. Many people think that it is a pure foreign game. But according to some scholar’s research, it was originated from a kind of chess in the Han Dynasty. The original game was 80 balls to be spat out from the mouth of a sculptured wooden goose. There was one pictographic Chinese 1 Guo Shuanglin & Xiao Meihua, The Gambling History of China, Taibei, Wenjin Publishing Co., May of 1996, p.3.

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character on each ball. If the character matched with the one for bid, it would win. If did not match, it would lose. Because the foreigners could not remember those Chinese characters, they simply changed them into 80 numbers, and changed the heavy wooden balls into cellular balls (like ping-pong ball). After further computerization of those numbers, then it has become today’s Keno game. Because of its relaxation and pleasantness for no need of doing anything by the players, it has found favor in gamblers’ eyes. 1 It is sure that, taking gambling as a business, it has a very tortuous process of development which had been obstructed seriously. That has something to do with the sever banning from the Chinese governments, as well as strong opposition from the society. Up till today the mainland China is still upholding legal restriction on gambling, allowing existence of some lottery gambling for public interests only. However, as we mentioned before, because gambling incentives come from the nature of human being, it is impossible to ban completely. Although there were repetitions and circles of various policies in different dynasties and places, from serious banning, banning in name but opening in reality, formal legalization, and re-banning again, etc (we will have more detail disscussions on this in later chapter), we do see a general trend of gambling activities is more and more popular, and the involved money and population are also in growing. This is especially true for those prosperous urban centers and commercial ports. Because of the rapid accumulation of wealth and the creation of an idle class (those who have a lot of money but nothing to do), they have provided with an enormous market and favorable preconditions for gambling development.

3.3 The Cultural Differences of Gambling Between China and the West As far as human nature and basic cultural elements are concerned, there 1 Len Miller, Learn How to Win Money in 3 Minutes, HongKong, Gaolin International Press, 2003, pp.78-79.

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should have no fundamental difference between Chinese and foreigners. However, when we talk about contemporary culture of gambling, it seems there are some important differences between Chinese and nonChinese. For instance, the two companies, namely Sands and Wynn who have obtained the new gambling license in Macao and are building new casinos, are trying to parade a new gambling culture which is expected to be different from that of Stanly Ho’s. It is said that what they are doing is to bring in the model of Las Vegas, from architecture to management, marketing and image, etc. Of course, both companies have claimed that what they are going to bring here is only a new idea, not simply copying everything in Las Vegas. In specific measures, they will respect the Chinese traditional culture. In other words, what they are doing is to combine the western gambling culture with the concrete Chinese national condition.

This western style gambling table is also often seen in modernized Macao casinos and many other gambling cities. Operated by computerized programs, this kind of gambling machine determines winning and loosing through probability or “good-luck at a time”, not by pre-determined destiny as some people believed.（http://blog.sina.com.cn/s/ blog_ 54abf46701000c6e.html）

At the meantime, Stanly Ho’s SJDM, still number one in Macao, has also declared that they are deeply rooted from Macao’s indigenous culture, knowing better the interest and taste of East Asian gamblers, therefore have groped a set of efficient managerial experiences. Thus, they are not going to blindly imitate the western casinos, nor afraid of the competition from those two new companies. Under the limited competition circumstances, they are still confident in upgrading step by step for leading toward the final victory. 47


Given the cultural cards that are cast by all the three competitive partners, we likely have the necessity to make little bit more analysis on gambling culture to see that, between eastern and western gamblers and casinos, what differences there really are, and how those differences will have an impact on the long term development of Macao’s gaming industry.

Confucius portrait, painted by a Ming Dynasty artist, now collected by Confucius Museum in Qufu, Shandong Province. Confucius personality and his teachings are equally controversial to many modern Chinese scholars. His doctrine has certainly influential to Chinese culture and ethics, especially since the Han and Ming Dynasties. But his many teachings has been also regarded as negative to China’s modernization.（http://taoism. gracefield.org/king/hauking.html）

3.3.1 Confucianism, legalism and gambling activity When people talking about the Chinese traditional culture, they are used to call it “Confucian culture”, that is a very great mistake, or a “distortion out of good-will”, which really needs a correction. Among those one hundred classic scholars before the Qin Dynasty, there always had two schools, namely Confucianism and Legalism, both getting the most attention. Although Confucius and Mencius were both important, Guan Zhong and Han Fei (or Guanzi and Hanfeizi) should not be neglected either. Confucianism emphasized more on conquering people’s heart (like the so-called political and ideological work), while Legalism emphasized on making laws (means of legislature and severe crackdown). One is civil, another is military, the two combined together to be used in reforming the society and regulating people’s behavior. 48


From Dong Zhongshu, in the Han Dynasty, who advocated to “banning other schools and only respect Confucianism”, to the so-called New Confucianism (Lixue, 理学 ) which were represented by Cheng Hao/Cheng Yi brothers and Zhu Xi in the Song Dynasty, who formally helped the establishment of New Confucianism as official religious position in Chinese history, it appeared that all the followed empires in different dynasties treated Confucian “benevolent politics” ( 仁政 ) (carrot) as the highest principle. In reality, however, they had never reduced their policy of tyranny (stick). For the purpose of misleading the people, they verbally talked more about Confucian “benevolence”, turning the legalist suppression into “internal documents” which means for doing, not for talking. Therefore, some scholars think that during the 2000 years of history, all dynasties unexceptionally had adopted ruling tactics of “Confucianism by looking, and legalism by using”, or “Confucianism for outside, and legalism for inside”. Thus, it is not true to say that “Confucianism” is representing the Chinese culture, but is true that “Confucianism and Legalism” are jointly representing the Chinese culture. Now, let’s return back to gambling. The Confucians have always been strongly against gambling. Confucius himself thought that gambling was a “bad behavior”, and Mencius regarded gambling to be one of the “five unfilial acts”, namely no posterity, laziness, fistfight, and forgetting one’s past suffering. Those misdeeds were not tolerable to society. The attitudes of the legalists toward gambling were equally, if not more, in against. They even ruthlessly suppressed gambling activities through cruel torture and severe law. Guang Zhong, Shang Yang and Han Fei (the most famous representative legalists), etc, all suggested severely punishing those gamblers who refuse to correct their errors despite repeated education, even sentence them to death. They even considered to reduce little bit the degree of punishment for those gamblers who coming from ordinary working people, but substantially increase the punishment to the nobility members and court officials, because they had responsibility for ruling the country, and their behavior 49


giving more influence to social atmosphere. Those crackdown and suppression to gambling activities suggested by the legalists had developed to extreme peak in the Qing Dynasty. Before the Opium War (1840), the Qing Empire had enacted one after another decrees to prohibit gambling. Those decrees not only banned casino business, but also banned small gambling activity at home, even making, selling and keeping gambling devices were regarded as crimes. If local officials had not ban gambling seriously, the court would have punished them as well. More horrible thing is that, along with the establishment of hukou/baojia system and Rural Resident Regulations, the influence of lianzuo implicate neighborhood had broadly spread. Once one household was discovered for gambling, all other households in the same community (bao and jia) would be punished too. 3.3.2 Cultural difference between Chinese and western gambling Although having such soft regulation and sever suppression designed by Confucianism and legalism in against gambling, gambling activity would not disappear in the Qing Dynasty, despite of the repeated crackdown. After the Opium War, China’s door had been opened up. Many foreign countries had their concessions (enclaves, special zones) in Chinese cities which could not be reached by Chinese laws. It was the extraterritoriality that protected the booming up of gambling business. But most of the customers in those casinos in foreign concessions were mainly Chinese. Since the Opium War China had entered troubled times. Facing both internal and external difficulties the Qing government had relaxed its crackdown on gambling. In order to increase the gradually empty revenue of the state, government started to issue lotteries, means of encouraging people to gambling. Gambling business flourished in Tianjin, Shanghai, Hangzhou, Ningbo, and Guangzhou. There were casinos everywhere in Guangdong Province, let alone Hong Kong and Macao under foreign occupation. While summering gambling development history in China one scholar wrote: “In generalizing the 4000 years history of China’s gambling and banning of gambling, we 50


can see a very interesting social cultural phenomenon. That is the very close association between gambling developing and gambling crackdown. They were almost like the shadow following the person.” The more perfect the development of gambling is, the more complex banning laws would be, and more severe punishment should follow, without knowing the result that, not only gambling would not be banned completely, but also stimulated further development of gambling. 1 The Bund ( 外滩 ) is an area of Huangpu District in Shanghai. The area centres on a section within the former Shanghai International Settlement, which runs along the western bank of the Huangpu River, facing Pudong, in the eastern part of Huangpu District. The Bund is one of the most famous tourist destinations in Shanghai. Building heights are restricted in this area.（http://www.heiyou. com/Upload/Photo/87055963-39b4-41c6bf31-cb200bc4a64c.jpg）

Maybe that is one of the reasons why Chinese like gambling more than foreigners, and it seems this conclusion to be recognized by people from allover the world. If you just go to the world famous casinos and have a look, it’s not hard to see that Asian faces have really composed a higher percentage. According to Liu Pinliang, Korean people are equally interested in gambling. 2 Why that could be true? Different people may give different explanations. 1 Guo Shuanglin & Xiao Meihua, The Gambling History of China, Taibei, Wenjin Publishing Co., May of 1996. p.361. 2 Liu Pinliang explains that “most peasants spare time entertaining is gambling. Especially during the long winter when they have nothing else to do, thus gambling has become their irreplaceable taste or mean relaxing their loneliness.” Liu Pinliang, Macao Gaming Industry in Length and Breadth, Joint Publishing (Hong Kong) Co., 2002, p.386.

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The Sociology of Gambling in China Gambling stand in Hong Kong during the late Qing Dynasty and early Republic era. From this picture, we see no difference from the Fan Tan in Macao at the same period. Since Governor Zhang Zhidong had legalized gambling in Guangdong Province when he tried to raise fund in building the new army in this region, this kind of gambling stands should be popular in other Guangdong places.（http:// mov.baayee.com/images/uploadimg/200772 18145598377.jpg）

Someone may say that has something to do with genes of Asian population. There is so far no scientific evidence to be found for this assertion. Both archeological discovery and genetic analysis have shown that, most of the many different branches of Homo sapiens had been eliminated by a global disaster in about 80000 years ago. Only one branch, about 4000 people in Eastern Africa’s Tanzania that had survived by lucky, and gradually immigrated to other parts of the world and evolved into today’s grand human family. In other words, in current time, all nations in the world’s five continents,

Before mid 20th Century there are many gambling stands like this in Shanghai and other cities. If the stake holder even could not afford to setting up a gambling table on street, this kind of stand on ground could also work. From the silver dollars and dice bowl on the picture, we may guess this is dice tossing game that if player win, a certain amount of silver dollars might be paid. （http://img3.bbs.163.com/mil/kz/kzsz007/ 625x850_138155.jpg）

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regardless their skin colors, all come from one ancestor, and thus are brothers and sisters. That means they should have no big difference in genetic composition. At least, there should have no different genes between the Asians and Europeans/Americans of their gambling activities. Most cultural anthropologists think that, instead of using biological gene to explain different gambling cultures, it is more convincing by using historical and cultural tradition. In regard to the anxiousness of the Chinese to gamble, although there was long term moral suppression from Confucianism, and severe crackdown by cruel torture and tough laws, but after all, they were unable to defeat human nature. The longer time for human nature has been suppressed, the stronger repercussion would be expected. Therefore, the Chinese gamblers often have double characters. On the one hand, they have a sense of guilt, on the other hand, it’s hard for them to conquer the seduction from gambling, therefore often being trapped into self-contradiction. Foshan City, Guangdong Province, has launched a campaign to ban illegal gambling by confiscated hundreds of thousands gaming machines and gambling facilities, organizing mass assembly, and destroyed all the machines in public. But according to some Guangdong officials, this kind of campaign comes every two or three years, even several times per year, but the effect of it is very limited. （http://www.photocdn.sohu.com/20070723/ Img251211478.jpg）

In addition, there is another controversy about state banning gambling by using law enforcement. On the one hand, those law enforcement personnel are also human beings with human nature’s shortcoming and their own desires. While banning others from gambling, they themselves might enjoy of doing it. On the other hand, the government 53


policies of gambling are often based on pragmatic consideration. When the government wants to consolidate social morals, itadvocates gambling banning; when the government wants to increase financial resource for government revenue, it then partial relaxes the ban, even makes overall legalization of gambling. Very few of them could hold a consistent policy and action. After long time practice, this double-faced behavior would inevitably degraded the ideology and personality of the whole population. It is equivalent to encourage people to lie, or to be outwardly compliant but inwardly un-submissive. Of course, there also are debates on gambling banning or legalization in Europe and America, even tit for fat in some regions, and leading to political crisis. But, those are often arguments about the policy of public affairs, or struggles among politicians, not moral or ethical judgment on gambling behavior. In comparing with the Chinese traditional ideology of gambling, westerners give more emphasis on human nature or humanities. They tend to view gambling as a free choice made by individuals. Do not gamble is not a necessary virtue, and gambling is not a crime. Because of stronger influence from Christianity, they could follow the teachings of Jesus, to give help to those problem gamblers, let them get rid of the mud. Based on those practices, severe ban on gambling, such as being punished for small gambling in private homes, only happened in the Middle Age, no longer to be heard of today. Many countries, including many states in USA, are still upholding the policy for outlawing public casinos, but local congressmen are debating seriously on gambling banning and legalization. They normally do not care about private small gambling in households. In many states, the Indian reservations are permitted to deal in casinos, because those areas are not regulated by local laws. Li and Smith (1976) attempted to understand gambling from a structural perspective: what social factors affect the frequency, volume and type of gambling? 1 Out of the four variables they examined: class, life cycle (age), 1 Li, W. L. and Smith, M. H. (1976), “The Propensity to Gamble: Some structural Determinants”. In W. R. Eadington (ed.), Gambling and Society: Interdisciplinary Studies on the Subject of Gambling, Springfield, IL: Charles C. Thomas, p.190.

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community size and status inconsistency (the mobility aspiration to achieve higher economic status), they found that in general the lower the class is, the lower the propensity of gamble is, which is also indirectly affected by lower age and a larger size of the community a person lives. The first American Indian casino. Five years after the first American Indian casino opened its doors in North County, CA, tribal gambling continues to grow taller, larger and farther into the region’s backcountry.（See www.nctimes. com for more detail. http://www.images. townnews.com/.../top_stories/12707199.jpg.）

The data does not clearly substantiate the claim of Tec and Scodel (1964) that middle class population are more likely to gamble, but rather the interactive effects of middle-class background and metropolitan characteristics “may drastically increase the propensity to gamble”. The relationship between income status and occupation status is not significant. At the end of this chapter, I will quote a story to see another possible difference between Asian people’s gambling and that of their western counterparts. One old German man won a lottery of 4 million USD. He said that he does not know how to spend this money, so he refused to take it. He started to buy lottery tickets from his youth, taking it as his habit, but he’d never won before, therefore had no money to support his parents, nor given luxuries to his wife. Now with his parents and wife passed away and being childless, he did not know how to use the money if he got it. So he decided not to claim it. However, according to the Germany lottery company, without his claim, the company could not have this case being settled down. So, they would persuade the winner to get the money and donate it to charity foundation. 1 1 “Lottery winner doesn’t know how to spend the money, so refuses it”, The World Journal, September 29, 2007.

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Chapter 4 The Tendency of Modernization of Gambling Industry This chapter is about the modernization of gambling industry. It has three sections: the general condition of world gambling industry; the legalized lottery (such as sports lottery) and the underground gambling in mainland China; the modernization of gambling industry development, the four directions or orientations, namely popularity orientation, legalization orientation, entertainment orientation, and healthiness orientation. Before introducing gambling business in different nations, let’s look at the degree of gambling popularity in different countries or regions. Although people generally agree that Asian people, especially Chinese, are comparatively more interested in gambling. But research data do not endorse ethnic difference in gambling. For instance, one nationwide survey conducted in England in 2000, which interviewed 7680 randomly sampled people aged from 16 to 65, within which 72% had gambled in previous one year, and 53% had gambled in previous one week. Canada conducted a similar survey in June 1999 with 2202 samples aged 18 or above. The result shows that 72% had gambled in previous one year, and 58% had participated in legalized gambling. A similar Hong Kong survey in 2001 with 2004 samples aged from 16 t0 64, shows that 78% had gambled, slightly higher than other countries, but having no big difference. 1 1 Quoted from Grace Mary Kwok Heung Leung & Siu L. Chou, Gambling: Reasons, Results, and Treatment, Joint Publishing (Hong Kong) Co., 2005, pp.155-156.

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Chapter 4 The Tendency of Modernization of Gambling Industry

4.1 General Condition of Gambling Industry out of China For the purpose of accelerating the modernization and internationalization of Macao’s gambling industry, it is obvious that we should have some necessary knowledge about the general development of world gambling industry. Even a special course on how to compare and analyze international gambling industries of different areas is thought to be needed. As a supplementary part of gambling sociology, however, here we will give a brief introduction to the situations of the world gambling industry to help us analyze and generalize the directions of this industry’ s future development. 1 4.1.1 U.S.A. U.S.A. has two gambling centers. One is Las Vegas, the world famous gambling metropolis, located in the hinterland of Nevada desert. This special geographic location makes Las Vegas look like a mirage emerged from the desert 2. In the evening, spangling colorful lights and its shining casino hotels with unique style make the city “a land of dream” as it was nicknamed. Casinos here are famous for their world famous amusement facility and night club show, which helps in making Las Vegas a perfect place for family vacations. In addition, there are various kinds of international exhibitions, fair expositions and seminars all year round. Tens of millions of tourists and gamblers are attracted here each year. 1 How to subdivide sociology of gambling should be another issue for further research. Generally speaking, as a comparatively overall system of a new branch of sociology, gambling sociology should at least have the following subdivisions: introduction to sociology of gambling (the course that this book is dealing with), world history of gambling, social psychology of gambling, gambling as cultural and social behavior, political economy of gambling, problem and pathological gambling, gambling related crimes, etc. 2 According to the introduction by Wikipedia, Las Vegas is the most populous city in the state of Nevada, the seat of Clark County, and an internationally renowned major resort city for the gambling industry, shopping and entertainment. http:// en.wikipedia.org/wiki/Las_Vegas,_Nevada.

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The Sociology of Gambling in China Las Vegas is the most populous city in the state of Nevada, the seat of Clark County, and an internationally renowned major resort city of the gaming industry, shopping, and entertainment. Las Vegas, billed as The Entertainment Capital of the World, is famous for massive and lavish casino resorts, the unrestricted availability of alcoholic beverages, and adult entertainment.（http:// q.sohu.com/forum/12/topic/1873968）

The other gambling center is Atlantic City in New Jersey. Although this center is not as large as Las Vegas, it still attracts millions of visitors especially from the east-coast agglomerate city area, like New York, Philadelphia, Washington DC and Atlanta. Atlantic is a city near to the sea. You can find dozens of casinos in different size stretching along the coastline on the seashore, where tired gamblers can enjoy sea-water baths and the beach sunshine for free. Those who do not gamble can also enjoy the convenience of the beach, with regular extra free buffets and shows. 1 Besides these two well-known large gambling centers, other small gambling cities, ships and gambling houses are sporadically scattered in

The glory and opulence of Ancient Rome comes alive at Caesars Atlantic City. Located at center Boardwalk, the Empire offers the thrills of non-stop casino action, luxurious accommodations, gourmet and casual dining, three lounges and world-class entertainment.

1 Casino gaming, spas, world-class entertainment, nightlife, fine dining, ocean, boardwalk, golf, fun attractions, fishing, water sports, shopping. Any way you look at it, Atlantic City guarantees fast-paced excitement and non-stop activities. http:// www.atlanticcitynj.com/.

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each states of America, such as the casino sea ships registered in Saint Antonio and the casino river boats registered on Mississippi River in St. Louis—both of them earn considerable money and become popular places for local tourism. The number of illegal gambling houses is uncountable. In USA, it is the local congress not the Federal Government that keeps the right to decide whether gambling is legal in each area. Hence, almost ten states allow gambling in specific places in some cities. Other than this, American Indian reservations still have legislation power for themselves. Then, once the chieftain persuaded his tribe members, gambling will immediately become legal there without any restrictions from the local or the federal government. For example, the state of New York is famous for its Niagara Falls, a world famous resort which attracts millions of visitors every year. But visitors can not enjoy more entertainment after appreciating the water itself because of the low tourist facility level in this area. Consequently, they move to Canada side for food, drinks, shows, and gambling as well. Proposals on gambling permission brought forward to the State Legislature were rejected and ended in abortion each time for the unfaltering opposition by the Democratic Party, which was the dominant power in the state government. However, the Indian reservations near the big falls are free of local government restrictions. Gambling houses there retake some of this kind of business from the Canadian side. 1 If the American Indian reservations were taken as gambling industry permission areas, then in fact gambling industry is lawful 1 Gambling has been legalized on Canadian side of Niagara Falls since 1995, but up till now, New York State sill does not pass the law for gambling legalization in American side of the Niagara Falls. According to the official Canadian travel website, Ontario has more casinos and gambling spots than any other province or territory in Canada. The Casino Niagara and Niagara Falls view in Niagara Falls, Casino Rama near Orillia, and Casino Windsor are resort casinos with multiple dining facilities, accommodation and live entertainment. http://gocanada.about. com/od/ontario/a/casinosontario.htm.

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Niagara Falls, city in the Regional Municipality of Niagara, southeastern Ontario, Canada, a port on the Niagara River opposite Niagara Falls, New York. The city overlooks the Horseshoe, or Canadian, Falls cataract of Niagara Falls; the crescentshaped cataract is 54m (177 ft) high and carries nine times more water than its United States counterpart. Niagara Falls is an enormously popular tourist destination, and it also serves as a major source of electricity for Ontario.（http://www.city.niagarafalls. on.ca/about_niagara_falls/for_students.asp）

for every state in America. According to the Central News Agency, the total gambling GDP generated by Las Vegas and Reno in Nevada in the year of 2007 was close to $10 billion, but at the same time, the total 400 plus casinos in the Indian Reservations located in 28 states, the gross income from gambling reached 18.5 billion in the year of 2004 1. Some people estimate that it’s very difficult to withhold the gambling permission for long, since lottery is legalized almost everywhere. The day for gambling industry legalization will come sooner or later, and the only problem is how long we have to wait. 1 See the special report by Chu Lusheng, Central News Agency, Los Angels, Feb.24, 2008, entitled “Casinos in American Indian reservations have played a role of ready source of money”.

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4.1.2 Monte Carlo Macao is also known as the “Monte Carlo of the Orient”. Then, what does the European Monte Carlo look like? According to the documentary, Monte Carlo sits in Monaco, a small Mediterranean country north to France. It is a real mini casino city with an area less than 2 km2 and a population less than 1/10 of Macao. Although it is quite a small country, Monte Carlo is the real gambling capital of Europe with long history. Monaco used to be a part of France, and in 1297 it came to be an independent country. However, up till now, France still takes in charge of his money issue and public safety problems. For Monaco, there is no need for supporting an army, even the royal guards are served by French cavalrymen. From 1865 when the first Monte Carlo casino opened, Monaco, one of the poorest countries before, suddenly became the richest country in Europe, and it was. All the casinos belong to SBM, but the biggest share holder is Monaco royals (70%); hence, almost every casino in Monte Carlo is stateowned. Mass wealth accumulation results that Monaco government abolished tax from 1870, and until today, Monaco citizens still enjoy zero-tax lives, free medical and other social benefits as well. Yet the price is the ban that all Monaco citizens are not allowed to step into the casino. Nevertheless, whether the staff or workers are outland labors is worth further researching, since it is related to its human resources policy. Luxurious casino is only one of the reasons why Monte Carlo attracts so many visitors 1. Another important reason is the fantastic story 1 The official web site of Monte Carlo says, “Monaco’s exceptional location, between mountain and sea, its gardens, its athletic and cultural events...all qualities, make it the ideal destination for a romantic vacation or an unforgettable conference. Although not always recognized and sometimes misunderstood, Monaco’s economy is in fact very dynamic and oriented towards the future. An independent state in the heart of Europe, the Principality offers investors and businessmen an exceptional and secure lifestyle while simultaneously offering them all of the advantages of an attractive fiscal system.” See http://www.monte-carlo.mc/indexmonaco_montecarlo-en.html.

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about the royalties, especially the love story of Prince Rainier and Hollywood actress Grace Kelly, which is viewed as a truly version of Cinderella of Monaco and attracts many world-famous celebrities, ladies, monarchs and noblemen come to spend their holidays here. What is more, the Oceanographic Museum, the Napoleonic Souvenirs Museum, Collections of the Historic Palace Arch, the Museum of Stamps and Coins, the Navy Museum and other museums are all open to public visiting or scholars’ research. In addition, the Sea Water Therapy Center, the International Conference Center, the Rose Garden of Princess Grace, and etc. are all available for international conference and entertainment. 4.1.3 Asian-Pacific area Contrasting to the gamble fashion in European, American and Caribbean island countries, gambling industry is merely a newborn market in Asian-Pacific Area. Influenced by the flourishing gambling business of Macao, legal casinos have gradually appeared in Australia, Malaysia, Philippine, Burma, Laos, Vietnam, Cambodia, North and South Korea, and other countries. Horse race is used to be the only legal gambling in Hong Kong before sports gambling become

The Crown Entertainment complex is a gathering of shops, cafes, restaurants, accommodation courts, cinemas, live shows, music venues and a casino. Situated in the Southbank precinct, the Crown complex dominates the Yarra River. There are 17 bars, 35 restaurants and cafes and lots of speciality shops located inside the complex. Crown is ideally situated to enjoy the international events that Melbourne hosts every year.（http://bbs.feeyo.com/posts/324/ topic-0016- 3245118.html）

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legalized in recent years. The proposal to allow gambling in Penghu district was rejected by the legislation committee after a hot argument. There is still no further information on new proposals. Singapore is the latest country in Asia that has legalized gambling, and will be a competition with Macao. Generally speaking, Australia has a bigger gambling business in Asian-Pacific Area except Macao. The total value of gambling industry reached 72 billion Australian Dollars (about 288 billion H.K. dollars) and 3 billion of taxation in 1977. According to Professor Linda Hancock, the former Chair of Independent Gambling Research Panel in Victoria, gambling becomes a significant part of Australian economy. Gambling net takings have excess of $A15 billion per year (2004-2005), an average of $A966 per head of population. 1 Australian Crown Casino of Melbourne receives 20000 customers each day, among them, 60% are Asians or Chinese. The government has also built a Research Institute for Gambling Industry in Australia. Korea Peninsula is an excellent new comer in gambling industry with a high speed. South Korea has more than ten casinos mainly spreading in Jeju and Seoul. North Korea has public casinos in the special economic zones of Pyongyang and Najin. It is said that This picture shows gambling development in Australia in terms of expenditure. Racing is keeping stabilized, and other gambling developed slightly, but EGM has developed rapidly, from 400 million in the 1970s, 600 million in the 1980s, to 1.4 billion in late 1990s, a three and half times increase.（Quoted from the lecture outline in UM by Prof. Linda Hancock (Deakin University, Melbourne Australia), 9/16/2007. ）

1 See Professor Linda Hancock’s lecture entitled “Responsible Gambling?” in University of Macao, September 19, 2007.

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The Sociology of Gambling in China This picture shows EGM gambling distribution in Australia in terms of money expenditure in recent years. NSW is the largest one (51.7%), because most gambling urban centers are located there, and the next one is Queensland (20 ％ ), then Victoria (15 ％ ), SA (7.8%), the smallest one is in NT which is only (0.8%).（Quoted from the lecture outline in UM by Prof. Linda Hancock (Deakin University, Melbourne Australia), 9/16/2007.）

new casinos in the two special zones adjacent to China and Russia is under consideration. However, both the North and the South Korea don’t allow their own citizen gambling, which similar with the regulations in Monte Carlo. 1 What is more interesting, South Koreans are forbidden gambling or entering casinos no matter in or out of their country. Even you violate the regulation in a tour, once being found, a lawsuit will wait for you when you come back. There is a unique law there in forbidden of lending on gambling. If you lend your money to others for the purpose of gambling, the borrower is legal to repudiate the debts. Government doesn’t protect this kind of creditors. 2 Compared with Korea, the restrictions of China on this problem are not so strict. The inner regulation which bans entering casinos or brothels is only restriction to those public officials who go abroad on government funds. There is no special restriction for a private traveler. Even for those who go abroad on government funds will not 1 The rationale against resident gamblers can found in the fact that the geographical distance between residence and the casino makes it easier for a gambler to separate between gambling sections. See W.R.Eadington (1976), “Some observations on Legalized Gambling”, in W. R. Eadington (ed.), Gambling and Society: Interdisciplinary Studies on the Subject of Gambling, Springfield, IL: Charles C. Thomas, pp.48-51. 2 Liu Pinliang, Macao Gambling Industry in Length and Breadth, Joint Publishing (Hong Kong) Co., 2002, pp.386-387.

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Paradise Walker-Hill Casino is in Seoul, Seoul Teugbyeolsi, Republic of Korea, and is open daily 24 hours. The casino’s gaming space features forty gaming machines and fifty-nine table games. The property has one restaurant and a hotel. Sheraton Walker Hill (Casino located within the Hotel) contains 623 Rooms and Suites. (www.51766.com/img/walkerhil/1177570004090.jpg)

be punished seriously or make trouble for themselves even if he go to gamble without using the public money. It seems as if nearly all the officials have been to America have come to casinos one way or the other when being asked. This is quite different from the situation in Korea. “Genting Highland” is the only casino in Malaysia. This world famous casino is founded by Tan Sri Lim Goh Tong, a successful Chinese gambler who had make successful investments in America, Australia, Philippines and other countries. When Macao opened its gambling market, he bid and unfortunately failed. There are more than ten casinos in Philippines. Most of them are in middle size, located in Manila, Sebu, and Subic Bay areas. Their total annual income is around several hundred million U.S. dollars. Their facilities, service quality and external environment are all in need of improvements. Vietnam, Cambodia and other South-East Asian countries stepped into the gambling industry just in quite a short time. On their small size and low development levels, they still have a long way to go before catching up and competing with Macao’s gambling industry of international level. However, don’t ignore these small casinos. Since most of them located in the border region neighboring with China, being easier access to Chinese gamblers, within the 600 billion RMB gambling money flowing out of China per year, 65


there must be a good proportion going to these seemingly smaller casinos.

4.2 The Legal and Underground Gambling Industry in Mainland China Although gambling industry in nearby South-East Asia countries cannot be a threat to Macao’s gambling industry, there are still other threats need to worry about. In recent years, more tourists from the mainland than from Hong Kong and Taiwan, came to Macao and became the major customers of local gambling industry. The mainland’s gambling banning policy is obviously a beneficial factor to Macao’s economic growth. While in the same time, it is necessary to realize a latent dangerous power, the up-coming development of the gambling business in mainland China and the possibility for China to legalize gambling in some place at some time. 4.2.1 The scale and speed of lottery industry development It is a well-known fact that mainland China is still an area where gambling is banned theoretically or in terms of law. To organize or participate in gambling is illegal. The punishments maybe criticism, administrative warning or being sent into prison, even life imprisonment or death penalty for those illegal gambling house managers. However, laws are not fully observed or enforced in mainland China. Legal document is always not in coincident with its real performance. As to gambling, it has become half open or partially legalized in many places somehow. Before we discuss the other kinds of gambling, let me talk about the officially approved legal gambling in the mainland, namely the legal lottery business. Lottery is an unquestionable part of gambling industry. Nevertheless, is buying lottery a kind of gambling behavior? Let’s ask the following questions on the definition of gambling: Is there a subject (the person who buys the ticket)? Is there gambling tools or instrument (the lottery tickets)? Is there money for winner (the award money)? Each of these 66


three necessary and sufficient conditions of a gambling behavior is indispensable in defining a gambling behavior. According to this definition, selling or buying lottery is a kind of gambling behavior without any question. These kinds of business are flourishing and spreading over mainland China with an astonishing speed. To see the splendid scenery of its development, one only needs to stand before the C.R.V. Supermarket (China Resources Vanguard Co. Ltd.) in Zhuhai which is neighboring with Macao. There you can see people crowded before the lottery vendors and thousand of checked thickets spreading on the ground everyday, especially during weekends. An article named “Gambling industry gaining bright future” in Anhui Business Daily says that, until the end of 1999, Chinese government has issued 50 billion lotteries. It is estimated that the amount will reach 30 billion this year (2002). Meanwhile, according to the prediction of the Development and Research Center of State Council, the yearly lottery issue is going to reach 84.6 billion RMB in ten years. This will make China the world biggest lottery market. According to a Macao local report, up till now, the flowing out gambling money from China has reached 600 billion yuan (about US$86.7 billion), most of which going to 160 casinos in Macao and other regions, very few of them going to Las Vegas, Atlantic City or Monte Carlo. 1 Comparing with the 600 billion flowing out of China each year, the size of China’s lottery (less than 20% of the total) seems not big at all. The rapid development of lottery industry is due to the encouragement of the Chinese government. At the beginning, the purpose of issuing lottery is only to encourage people to contribute to sports and social benefits. This explains why there are only these two kinds of lottery legal in mainland China. It is a basic fact that attracting people spending money on lottery is much easier than just encouraging contribution. As a result, we don’t know how much benefits sport 1 See Zhuang Jinfeng & Zeng Yuhuai,“Globalization of Gambling and the Outflowing Money from China”, Hobbs Journal, No.5, March 2003, pp.30-33.

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and social commonwealth can get through lottery issuing, but definitely government increased its revenue and consequently devotes major efforts to further lottery issuing industry with more enthusiasm. 4.2.2 Aspects of underground gambling Apart from lottery, big size underground gambling industry also exists in mainland China. We call it underground for it is not recognized and facing the risk of being banned by the government at anytime. But in fact, insiders reveal that generally speaking, there is no much danger in gambling operation because police holds shares and they can offer secret protection. It might be difficult to say how big the size of China’s underground gambling could be. According to Wang Xuehong, Director of China Center for Lottery Studies, Peking University, “China’s total lottery income in 2005 was 70 billion yuan. Their research has discovered that the ratio between legal and illegal gambling is about 1:10. Therefore, the underground gambling size should be about 700 billions.” 1 This figure is similar to my own estimate which is the same as or even little bit bigger than China’s legal gambling (70 billion) plus the total outflowing gambling money of 600 billion. My estimate is based on the following two elements: first, China’s majority gamblers have no opportunity of traveling to overseas; second, the number of lottery buyers is much smaller than illegal gamblers. With a tourist group I went to Zhanjiang (in the west of Guangdong Province) and Guangxi Province just after the spring festival in 2002. I found there were groups of people gambling publicly on several sight spots. Some folding stools circled around, the gambling begins with a set of poker threw off on the board lying on the ground. Most of the gamblers were adults, but there were schoolboys of twelve or thirteen years’ old, occasionally played as the gambling bankers. Children stake at various amount from 5 to10 RMB. Once I found a nimble 1 Xinhua News Network, July 18, 2007.

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banker(about 15 years old) in Beihai Park, he won more then 100 RMB just in a few minutes—the life allowance for laid-off workers was no more than 380 RMB a month in that region. I asked him whether he was afraid of being found and arrested by the police. He gave me a glance slightly and shook his head confidently, then walked away like nothing happened. It seems no need to explain who the protecting umbrella behind the scene was. This picture shows a mahjong table that is very popular in China and other Chinese communities around the world. Whether playing Mahjong with money is or is not gambling, this is an unanswered question in China. Some articles think that small amount of money involving in Mahjong playing should not be defined as gambling, only more than RMB 10 thousand can be regarded as gambling.（http:// www.x5dj.com/Blog/00386902/00110815.shtml）

In urban areas, there is another kind of gambling, which seems more decent and civilized, popular in office clerks and cadres with social status in particular. As far as I know, people fascinated in Mahjong are everywhere in the whole country. Many cadres spend all their spare time on playing Mahjong. It comes to be morbid fascination other than just a kind of entertainment. They always play Mahjong over nights and forget eating and sleeping but putting work aside. As a prestigious scholar said, playing Mahjong has become a necessary part for some seminars and conferences especially with cadres’ presence. A meeting can be finished in one day may last 3 days, with 2 days left for Mahjong. The beautiful places where meetings always convened provide perfect gambling spaces, free of outside disturbance. Why are people so fascinated by Mahjong playing? It is obviously the desire of money. How about their stakes? The number is different to different people. For ordinary administrative cadres and scholars, it varies from several RMB yuan to a dozen or even dozens of RMB yuan. People may collect 69


several thousand or even more than 10 thousand into their pocket each round. Top officials, chairmen and managers from company often throw hundreds or even thousands for each stake. The cases we mentioned above are not serious compared with the professional and veteran gambler. As an outsider, it is difficult to know what the professional underground gambling house would be like. But this is a problem worthy of discussion. A reliable friend in Beijing told me, his cousin made big money by contracting a factory in his hometown Shandong Province and became a well-known rich person in Dezhou. Later, the factory was closed and sold out, and then his cousin became idle. He dived into the underground gambling house and became a professional gambler. My friend went back to his hometown last year. His cousin took him to several large-scale underground gambling houses. To his astonishments, gambling houses are located in some general looking farmer homes and underground ball rooms of remote countryside. But there are security staffs guarding at the doorway, never letting strangers enter. His cousin brought him in with caution money. Gambling houses there open for 12 hours a day, from 5 o’clock in the afternoon to 5 o’clock in the morning. The stake is always 100 US$ bills and there are bank clerks in charge of currency exchanging. Most bankers are local people of power (retired leaders of village and town, relatives of public security official, and secretary of local party branch). They always stake for hundreds at one time. The turnover of every night could reach 3 to 5 million US dollars. It is said there are three reasons for the existence of such large gambling houses. Firstly, my friend’s hometown is in a village which locates on the border between Hebei, Shandong and Henan Provinces. The transportation is not convenient and the police seldom make patrols of the area. Secondly, if one province takes hard measures to ban gambling, the messengers will inform gamblers in time. Gamblers could immediately start their motorbikes and cars and leave in two or three minutes. When the police came, they had already gathered in another village out of that province. Police in China seldom handle a 70


case crossing borders of provinces. If the three provinces take measures to ban gambling under national order in the same time, gamblers will stop gambling for several days in avoidance of being arrested. When the banning campaign is over, they will gamble again. Thirdly, the real reason gambling couldn’t be stopped is the huge profits behind the game. Just taking 3 percentage of the business by the local government, the income reaches ten thousand U.S. dollar or so. It is not surprising that the authorities there will take special care of and actively support gambling. Zhongshan City, which is neighboring with Zhuhai and Macao, had several campaigns to ban illegal gambling. Gamblers were arrested, money and facilities were confiscated. But after the campaigns over, gambling boom up again. Guangdong province has recently cut half the times for their residents to free travel to Macao, and that might bring back the illegal gambling in Zhongshan again.（http://blog.sina.com. cn/s/blog_ 54abf46701000c6e.html）

4.3 The Tendency of Gambling Industry Development-the Four Orientations After the introduction of the general conditions of gambling industry in mainland China and abroad, now let’s turn to talk about the main tendency of world gambling industry development and try to generalize several characteristics in its development process. With my personal observation and consideration of long years, it seems to me that there are four overall directions or orientations in the development of world gambling industry, namely popularity orientation, legalization orientation, entertainment orientation, and healthiness orientation, which we will illustrate respectively in the following passages. 71


4.3.1 Orientation of popularity Popularity orientation doesn’t mean to popularize gambling industry among all the people. Adolescents should be forbidden from gambling anyhow. Those who live under the poverty line or on social relief should be under more moral and legal restrictions on gambling. The better-off class does not all like gambling, some people even strongly oppose it. So, they should have the right and freedom to oppose. But for those who voluntarily gamble, they should also be granted the freedom to choose. Taking bingo for example, since it has becoming more and more convenient for elderly people to play in their community meeting room, or at home, the number of players is increasing rapidly. 1 As their name implies, USA Bingo is a U.S. friendly online bingo room in the World Bingo Network (WBN). The largest bingo room network on the Web, WBN owes much of their traffic to USA Bingo, where bingo games take place every six minutes and at least $100000 in payouts are guaranteed every day. Boasting excellent player retention rates, it’s no surprise when you see just how well USA Bingo treats their players. （http://onlinecasinosuite.com/usabingoroom. html）

Imposing gambling on others deprives the freedom of choice for them, which falls short of the mainstream of the era, and vice versa. Here, the popularity means that more and more people will involve in gambling activities anyway. Taking the growing speed of the number of people gambling in the world for example, as documents suggest, the total sum of lotteries issued in the world reaches about 625 billion 1 Please see the following two Bingo web site for detail: http://usabingo.net/; http://www.whichbingo.com.

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US$ every year at present, with a growing speed of 15% every year. According to Wang Xuehong, the Director of China’s Center for Lottery Studies, the development level of gambling industry for a country should be comparable with her social-economic level. In most developed countries, gambling industry usually accounts 2-3% of their GDP, but in China, legalized gambling is less than 1%. It means there is still a big room for China to develop its legalized gambling business. 1 One reason of the public’s increasing interests in gambling (including lottery) is our stable lives. Today, most people live comfortably with living conditions improving day by day. There is no need to worry about daily food and clothes, and the ordinary people are capable of spending some spare money on fun seeking (like gambling). Survey made by sociologist shows that people’s interest in gambling is related to their income (firstly a positive correlation, then a negative correlation) except the morbid gamblers. People in cold and hungry always have very low interests in gambling. The interest of people in lower-middle stratum becomes higher. The up-middle income stratums have the highest interest level. However, Interest in gambling drops fiercely for people in top-income stratum. It is said that none of American billionaires buys lottery. Of course, there are other elements than economy and incoming in deciding whether a group of people would like to gamble or not, such as education, cultural life, diversified investment channels, etc. 4.3.2 Orientation of legalization As the popularity tendency of gambling is irresistible, the following question is whether we should let it be or follow the trend to make it benefit our society under systematic supervision? I reckon that the latter choice is a better one. The reasons are: Firstly, history proves that human natures would not be changed by outside forces. Compulsory gambling ban could only drive 1 See Xinhua News Network, July 18, 2007.

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gambling activities underground, instead of thoroughly eliminating the temptation and lure it brings. For those adolescents in their rebellious ages, things checked and prohibited officially are most attractive. This is what human nature look like in another sense. To this extent, we have had too many lessons in attempting to suppress down human nature and reasonable demands in society by using empty slogans and utopian idealism. We should try to prevent it from happening again. Secondly, illegal underground gambling is a much more destructive social force than legal public gambling. Underground gambling is inclined to be under the gangster’s control for lack of transparency, and becomes a dark corner always with much more crimes, such as murder, tussle, robbery and usury happen, outside the legal supervision. But the high profits of gambling industry, which falls completely into the hand of individuals, can’t be used reasonably by the government for social well-being. Therefore, we believe that, in terms of social development, the legalization of gambling industry could play a positive role obviously, despite its negative impacts. Comparatively speaking, there isn’t any single positive impact of the illegal gambling industry at all. Mr. Zou Yunxiang suggests that, facing the legalization of gambling in Singapore, China should also actively research on the possibility to develop China’s own gambling market for 3 purposes: the first is to reduce the out-flowing of gambling money from China; the second is to release the impulse of the people who want to take risk; the third is to collect more taxes for increasing the revenue for local governments. 1 Finally, the strength of banning on illegal underground gambling industry is related to the political and economic system. During Mao Zedong’s era, gambling was once completely eliminated for a short time. But that system was very harmful to the overall progress of the society. After reform and opening up, the old method is no longer as 1 Zou Yunxiang,“View Gambling Dialectically?” Procuratorial Daily, April 26, 2008, quoted from http://www.jcrb.com/n1/jcrb793/ca368122.htm 04-26.

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useful as before in China. At present, the gambling-banning is only an ostrich policy in mainland China. In conclusion, we think China should seriously study how to realize legalized supervision on gambling industry. To some extent, China should learn the positive experiences from Macao, at the same time, also take the serious lessons that have happened in Macao. 4.3.3 Orientation of entertainment The gaining of popularity and legalization indicates gambling industry is on the threshold of a formalized development. Next tasks are quality improvements and level upgrading. It includes two aspects: entertainment orientation and healthiness orientation.

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Entertainment orientation means to back to the origin of the gambling industry. That needs to strengthen the entertainment effect and weaken the fortune-accumulating effect of the gambling industry gradually. Certainly, gambling will not be a real gambling without fortune accumulation. For example, if the prize of lottery is not money but just a bunch of flowers or a piece of certificate, people’s enthusiasm on lotteries will be 99% discounted. The entertainment orientation here has two meanings. Firstly, for the gamblers, it refers to cultivate their capability and improve their living skills. We have to make them realize that it is natural to lose, and don’ 75


t expect too much on chance. On statistics, the probability of wining is quite low. Gambling is just a fun for a slight of money. If they want to make money, they’d better go to work, that’s a more realistic and reliable way. Secondly, for the gaming companies, it refers to the decrease of the fortune-accumulation effect. Gambling popularity and legalization can make the number of people participating in gambling increase substantially. On the principle of small profits but quick turnover, gambling companies could lift appropriately their ratio of loss and pay a larger proportion of the stake money back to the customers. By doing this, the company profits still can rise, with an increase in government tax and gamblers’ lottery prize proportion. Thus, we can create a threewin situation. 4.3.4 Orientation of healthiness Of course, the passages above are just rational analysis, and any rational analysis could not substitute an individual’s decision-making. Even if gambling houses increase their prize proportion, “Majorities loss, minorities win” is still the unchangeable fundamental principle for gamblers. To be a healthy gambler, people should keep the philosophy of little money for fun in their mind so as to avoid the suffering from over-despair to over-expectation, and even mental collapse. Therefore, healthness orientation is an independent factor for the improvement of the quality and level of gambling industry. The healthiness orientation of gambling industry includes several aspects such as healthy mentality, healthy environment and healthy society. We have already mentioned healthy mentality above. To maintain healthy mentality, we should strengthen propaganda and education on gamblers and strengthen education on the employees in gambling industry. For those who have already suffered psycho problems, timely and effective psycho treatment service should be provided. A healthy environment includes the internal and external environment for a casino. For the internal side, a gambling house should not only 76


provides comfortable, luxurious, hygienic equipment, it’s more important to relax the terrible hostility between gamblers and casino, and to improve service quality and give customers careful concern which requires waiters to observe, diagnose, instruct and help the gamblers with morbid symptoms. The creation of one morbid gambler will mean not only ruin himself and his family but also ruin the industry itself for permanently losing one stable customer. Apart from the healthy internal environment, a healthy external environment is also very important. For this purpose, we can provide casual and entertaining establishment, beautify the courtyard or the exterior environment, and reduce the depressive or superstitious atmosphere 1. A healthy society includes much more indicators, such as healthy family relationship, healthy working environment, healthy interpersonal relationships, healthy public opinion and social policy and so forth.

1

It said that the design of Stanly Ho’s Lisboa is imitated a bird cage that, according to geomancy, does not allow any gamblers flying out of it freely. Some report says that Bill Weidner, the owner of Las Vegas Sands, also wants to learn the oriental geomancy from the Chinese and has invited one geomancer to look at his casinos in Macao. See Amy Yee report from New York City, at http://bbs.longzyou.com/ showtopic-22481.html.

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Chapter 5 The Positive & Negative Impact of Gambling Industry to Social Development The focus of this chapter is to analyze both the gambling industry’ s positive and negative impact on social development, including: 1）Why does the gambling industry remain flourish and have a continuous huge attraction (positive impact); 2）Why is it treated as a unique business which operates with restrictions (negative impact), unlike other businesses (such as a department store selling clothing and daily necessities) that are open fully to the public? This chapter concludes with a discussion of the prolonging historical debate on the “allow or disallow gambling” or “legalization or banning of gambling”.

5.1 The Positive Impact of the Gambling Industry As mentioned above, the impulse for gambling partially resides in human nature and it is impossible for many to get rid of such a desire through moral education, and by legal means of punishment. Except for horrific things done by a few hooligans and thugs, gambling activities (legal or illegal) that a majority of people enjoy do have some positive social effects. Otherwise, it would have been impossible for it to continue its life and maintain its magnetism throughout the human 78

Chapter 5 The Positive & Negative Impact of Gambling Industry to Social Development

history. Given below is an examination from different perspectives on this everlasting phenomenon. 5.1.1 Enrich daily lives For many ordinary people, specially the working class, gambling is indeed a means that helps to enrich their daily lives. This is particualy the case for people who toil in the field during busy seasons and who lead basically a boring and dull life throughout the year. It is therefore quite understandable that they have some fun on gambling during the Chinese Spring Festival. As we have mentioned before, the same explanation is equally applicable to the Korean rural farmers who have labored so backbreaking from spring to fall, and have to suffer a long lonely winter having nothing to do. Therefore, getting together and gambling have became one of the most important entertainments for Korean villagers 1. But why do they have to gamble when there are some more civil activities available for entertainment? In the past, for instance, there used to be places where stories were told and Chinese operas were sung and played. At the present, there are radio programs and TV programs as well. Are those also entertainment, even more civilized entertainment? Why must they play with gambling? With these questions in mind, I visited many seniors in the countryside who enjoy gambling. According to them, these entertaining activities are different from gambling in several ways. First, listening to stories and seeing Chinese operas are a receptive entertainment and lack mutual engagement and stimulation. Next, most TV programs are similar, and a long-time TV viewing not only hurts their eyes but also consumes too much electricity. Finally, human beings are gregarious creatures that enjoy being together, smoking, drinking tea, chatting and laughing while playing Mahjong at the table. A human contact like this not only connects them together emotionally and strengthens their friendship, but also creates an opportunity for them to exchange 1 See Liu Pinliang, Macao Gambling Industry in Length and Breadth, Joint Publishing (Hong Kong) Co. , 2002, pp.385-390.

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information, increase production, and promotes unity and prosperity within their community. To them, this kind of self-created small casinos is irreplaceable by any other activities. As I observe, the main goal of the gambling among relatives and friends in my hometown is for fun, and winning or losing is not important for them. Some female senior players bet five or six cents to start a game, and play it for the whole day, which will cost them three-or-five to eight-or-ten Yuan. Some winners are even willingly to give back the money they have won to the losers who are really poor (too poor to afford to buy meat for making dumplings during the Chinese Spring Festival) so that they can continue to play the game. This oil panting is about family style Mahjong table, describing the atmosphere of the get-together in socialization process of Mahjong. According to old generation that Mahjong has several functions in their time: the first is to improve communication, the second is to entertain guests, the third is to flatter superior persons, and the fourth is to kill time of loneliness or boring.（http:// image.baidu.com/）

In addition, according to Professor Howard Shaffer from Harvard Medical School, to some extent gambling has functions quite similar to sex and wine, making people’s heart beating faster and blood pressure going up, which are important to keep up with a healthy life, especially for elderly people. He said that there is a general belief that normal gamblers, if not getting addicted, are usually live pretty longer than those who never gamble. 1 Campbell’s study (1976) shows us a picture of hope for gambling. Based on the previous flawed behavior studies (Bergler, 1957) and 1 See Howard J. Shaffer,“Considering the Social Impact of Gambling: Toward Responsible Gambling Programs”, a public lecture in University of Macau, May 26, 2008.

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Jasper’s (1951) discussion on alienation and gambling as a form of preservative impulse, she observes seniors and the working class and finds that gambling is “by and large” beneficial to the gambler and “increases rather than decreases his efficiency and productivity”. 1 Apart from adding the property to the aged players, it provides a choice for life, increased self-esteem, and an opportunity of socialization. For the workers gambling is “one of the best investments that can be made, as it provides momentary hope at minimum cost, and there is a chance of making a score, a chance which exists on no other level if one is to consider circumstances realistically”. It is also linked to manhood, and provides a way out of his troubles. 2 In fact, this “fun as a purpose and money as a means” is a doctrine, which is manifested not only in small casinos among ordinary people, but sometimes also among so-called “super gambling” players. Take Ye Han for example, the famous “Gambling Saint” (nicknamed as “Devil King”) in the gambling history in Macao. He once won over one million US dollars at Caesar Palace in Las Vegas. The highest amount he won was over two million US dollars; but he also lost as much as over three million US dollars. Late in life when summarizing his experience, he said that although he was a superb player, he played only for “an even game”, and got one word out it— “Fun” 3. It is said that in gambling there is an unwritten protocol that the bigger the bet is, the higher the probability is for winning. If players have an unlimited amount of money they are willing to bet, they can be sure of winning but not losing, even if they do not have the know-how for gambling. Or at least they can guarantee to keep their initial bet, 1 Campbell, F. (1976), “Gambling: A Positive View.” In W. R. Eadington (ed.), Gambling and Society: Interdisciplinary Studies on the Subject of Gambling, Springfield, IL: Charles C. Thomas, p. 219. 2 Campbell, F. (1976),“Gambling: A Positive View.” In W. R. Eadington (ed.), Gambling and Society: Interdisciplinary Studies on the Subject of Gambling, Springfield, IL: Charles C. Thomas, pp. 224-227. 3 Liu Pinliang, Macao Gambling Industry in Length and Breadth, Joint Publishing (Hong Kong) Co., 2002, pp.325-327.

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not to lose everything. For instance, when the smallest bet is ten yuan with no limit for the biggest bet, the gambler can continue his betting with his eyes closed. The first bet is 10 yuan, the second is 100 yuan, then he will add more money if he loses, using algebraic theories: one thousand, ten thousand, one hundred thousand, one million, ten million, etc. The belief is that it is impossible to lose all the time and that one winning can bring back the initial bet with some additional money. But the problem is that no one has unlimited amount of money. Even if one is a banker, there is no guarantee for him or her to continuously use algebraic principles to augment his or her bet. What is more, there is a rule at casinos that forbids players to continuously double their bets. Even Ye Han, as a super gambler who had an asset of one billion patacas, had played a even game and hardly won anything in his life. For many other gamblers who have much smaller bets they are more likely to lose than to win. It is almost impossible to know what a heavy price one has to pay for the word of “fun”. For the “Gambling Saint”, Ye Han, he was able to play an even game, which gave him satisfaction. But it is impossible for those with an morbid mentality to be happy, if they lose everything and become homeless wandering on streets. 5.1.2 Accumulate social wealth For a gambling business of a certain scale, gambling plays an evident role in the accumulation of social wealth. The accumulation of capital is a necessary condition for maintaining a smooth normal operation of a nation as well as the commercial and industrial development in capitalist societies. The accumulation of social wealth through gambling industry has three implied propositions. One is that all governments, from the past to the present, can collect taxes from gambling industry. The other is that casino owners (bosses or stock holders) build up their wealth, which they use to expand their businesses or to invest in other commercial projects. The third is that, with government permission, some other charity organization could also issue lottery or bingo cards to raise fund for public purposes, such as Harvard University issued one of the 82


oldest lottery tickets to Boston residents for fundraising to establish the university. Other public institutions might do the same thing if the government can give them approval. 1 Perhaps some people may wonder whether there will be the fourth kind of accumulation of social wealth. For example, is it possible to make lots of money through gambling or winning a jockpot, which is then used as capitals for investment and expected to grow into a bigger business? One cannot claim that this is impossible, but chances are very slim because of the following three reasons. First, under a normal circumstance, about one-third of the total sum of bets can be used as gambling rewards for gamblers. But the scope of gambling rewards is too broad to accumulate a huge amount as capitals for business. Take the Six-digit Lottery ( 六合彩 ) as an example. It has a high level of accumulation, and there may be only one or two big winners, but hundreds and thousands of winners getting a small or median amount of money. Second, a jock pot (millions or billions) that some people win can be used for investment in any kind of businesses. But the problem is that people with a windfall are not necessarily good at managing a business. As the old saying goes, “easy come, easy go”. And because the money they get is a windfall, they may not necessarily treasure it. As a consequence, they soon fritter away the wealth foolishly and luxuriously. Third, it seems to be a human nature to want more and more. People who have won a jock pot often want to win again. The result of continuous gambling is that the winner gives back the winning money to the casino. For instance, it was reported that a journalist in America once conducted a follow-up investigation of lottery winners and found out that the majority of winners are not happier than they were before. Instead, they are hurt and upset. For some winners, a jack pot has 1 See Howard J. Shaffer, “Considering the Social Impact of Gambling: Toward Responsible Gambling Programs”, a public lecture in University of Macau, May 26, 2008.

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brought them catastrophe instead of happiness. The accumulation of wealth through gambling industry serves different purposes for different people. The “Gambling King”, Stanly Ho has established a gambling kingdom of the first-class by means of capital accumulation. His success results from his generosity, courage, vision, and his smart business concepts. It also has something to do with the fact that he is not a passionate gambler himself. In comparison with the “Gambling Saint”, Ye Han, also called as “Devil King”, was extremely smart man, who built up a quite large amount of wealth by means of buying and selling casino stocks. Unfortunately, he was crazy about gambling, which became one of the reasons for his unsuccessful career. He left us a poem, in which he wrote, “Awaking from a big dream, I understand my own life. Gambling is a twist of fate, not worth to pass on to one’s children.” The first two lines are what Zhuge Liang recited when Liu Bei paid the third visit to invite him to be his advisor, implying that “one who awake from a dream sees through the world and understands life.” The last two represent his own reflection on gambling. Some people explain that Ye Han did not want his children to be engaged in gambling, because he believed that he got himself into the gambling industry due to an opportunity only, which, after his death, should not be passed on to his children 1. On the contrary, some people believe that his main idea was to advise younger generations that winning or losing in gambling was purely a twist of fate and indeed he had nothing valuable to pass on to them. Therefore, the conclusion should be that “not gamble means winning.” 2 Personally, however, I’d prefer to the second explanation. 5.1.3 Finance public activities Another positive impact of the gambling industry is that it sponsors public activities and supports social programs, which is also a related 1 Liu Pinliang, Macao Gambling Industry in Length and Breadth, Joint Publishing (Hong Kong) Co., 2002, p.326. 2 Yang Zhongmei, Legend of Stanly Ho, Taibei, China Times Press, 2001, p.97.

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function for the accumulation of wealth. However, we still need to examine this issue separately due to the fact that public activities and social programs are often independent of the behavior on the part of the government and the business community. Public activities are often refereed to as social welfare programs that can benefit everyone in society in ways such as building bridges, maintaining streets, and helping the old and the poor. Some social programs like the Cancer Society, or foundations that offer a helping hand to people in crisis (e.g., people suffering from a natural disaster), are beneficial to a small number of people. Nevertheless, no one can say for sure that he or she would avoid any unexpected disasters and misfortune. Thus, to help and save others means to do the same for oneself. In a society where there is a wide division among different classes and between the rich and the poor, there is a lack of resources and many social programs are not given a serious attention nor adequate assistance. Therefore, there are always some people who, out of their kindness and sympathy, organize charitable activities (e.g., the Macao Annual Million-Dollar March). Many churches, local leaders, eminent people in society and political celebrities are often involved in such activities, which in turn help them reach out to people and further reinforce their status and power in society. But, the development of social welfare programs and public activities needs help from people who are willing to share their knowledge and skills, and also from people who are willing to donate money (or from people doing both). While a wealth support is often the process of accumulation, that is, a small amount grows into a larger one, it is important not to overlook the capability of donation from large corporations and financial institutions, among which gambling companies are the primary contributors to charitable activities. For example, the gambling companies in Macao, in accordance with their casino regulations and decrees, have sponsored many major social programs. In addition, they have been generous donation providers for various kinds of charitable activities, which is greatly appreciated and highly praised by the people of Macao. But here we may mention 85


one thing about social donations in modern society. There are some reports saying that most American fund-raising activities rely on small donations from working classes, not from big companies or wealthier residents. During the recent earthquake donation, we also see some poor people, such as an old beggar, who donated hundreds of yuan, while some bigger companies and rich people donated not much, or even refuse to donate 1. Therefore, the relationship between wealth and philanthropist spirit will be another topic for sociological research. Some people comment that it is easy for gambling companies to make money, which is generated from crime and felony. Therefore, these companies should donate more than others, an opinion, which I think deserves a further examination. From cultural and social-psychological perspectives, I believe that Mr. Stanly Ho enjoys helping people with generosity largely because of his instinctive kindness and tradition but not because of a mentality that “using money to get rid of bad luck” or to “pay for a crime”. It can be easily understood that because the gambling industry has some negative social effects (see below for details), it needs a special permission and regulations from the government in order to run the business. Thus, gambling companies are required to pay high taxes (more than half of the government’s revenue). And according to their contract, they also shoulder responsibilities for many other social programs and public affairs, which, otherwise, may not necessarily be their obligations. In fairness, the gambling industry has already returned the interests which it should return to the society through taxation, which in turn the society should treat it equally as other businesses. It should not be expected to meet with unlimited demands and take unlimited responsibilities to whatever and whenever is required and asked to do. The reason for discussing this issue is that an unhealthy mentality and wrong policies may destroy opportunities for further development of the gambling industry in Macao, thus making it impossible for Macao’s 1 See http://www.ebs123.com/Group/WebSiteThemeBack/3602.html.

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“cake” to grow bigger. For the utilities that gambling may provide, Mr. Lei Kong (Li Jiang) has mentioned 7 categories: 1）gambling and entertainment; 2）excitement from risk taking and winning; 3）the seeking of unexpected wealth; 4）pressure releasing and oneself diverting; 5）social intercourse; 6）gratifying curiosity; and 7）satisfaction of showing off wealth. 1

5.2 The Negative Impact of the Gambling Industry Having analyzed the positive effects of the gambling industry, let us examine its negative effects. Without a doubt, the gambling industry has indeed some negative social influences. From the past to the present, it is seen as a “unique business”, which, even in the near future, will not be treated as businesses like department stores that can open and blossom fully without special regulations and monitoring. Because of its obvious side effects, the industry faces constant criticism and prevention from the general public. 5.2.1 Pure consumption of social wealth It is known to all that the winning or losing process of gambling activities is simply a exchange of money between different hands (i.e., transferring the ownership of the money) and it does not produce any wealth at all. We therefore consider the gambling activity as a pure consumption of social wealth, a characteristic totally different from that of the stock market. Some persons think that gambling and stock markets share the same characteristics: winning or losing all depends on luck. This appears to be plausible but it is not correct. What seem plausible lies in that both have risks of losing or possibility of winning. Moreover, it is impossible to predict when to lose or when to win. Even the most authoritative analyst may not be able 1 Lei Kong, Gambling: An Economic View, Macao Journalist Association, 2003, pp.10-11.

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foresee the direction of fluctuation of stock exchange rates. Otherwise he (or she) might have already made a fortune and would not appear on TV, making a bitter life from conversation about it. He/she has neither the necessity, nor intentness, to share with others the secrecy of being rich through stock market. Such an interpretation confuses the nature of two different risks. Gambling is not to enlarge the “cake” (i.e., the total amount of money remain unchanged), which is continuously made into different portions. But the transactioh on stock market is for investment to be turned into production capitals, which will make profits and enlarge the quantity of the “cake”. Although some companies may either make or lose money, the overall scale of national economy, as well as of the world economy, still gradually grows anyway. Therefore, the long-term trend reflected in the Dow Jones Index will always curve upward. Suppose, you are to analyze the Dow Jones Index’s development of the past one hundred years, you may take 15 years as one period from any portion of this long historical curve, and you will find out its share prices going up. In other words, the historical documentation on stock market performance reveals that if you have a long-term investment in stock shares (at least 15 years), and purchase proportionately average stock shares of different kinds (e.g., the Dow Jones Index), you will certainly make money, although it is not possible to predict how much you will make. Of course, all the above is based on a hypothetical analysis. Because, there are few who are serious about investing their money for as long This charter shows that Dow Jones Index has increased from 40 Points in the 1930s to more than 13000 points in the 2000. It says that within any given 15 years, the Dow’s net value is positive. But for individual investors, if you could buy a portfolio exactly as the Dow combination and hold it as long as 15 or more years, your investment should be also positive. （http://www.qhlt.cn/book/stockindex/images/ image013.png）

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as 15 years. Besides, there is hardly anyone who being able to purchase combined stock shares exactly the same as the Dow Jones Index. Our purpose is to explain that both gambling and stock markets take risks in making money, but in essence, they are totally different in the increase or decrease of the total social wealth. 5.2.2 Stimulating a mentality for luck The analysis in this section is very interesting, but also very challenging because it involves some philosophical theories as well as some psychological and religious issues. Students are therefore encouraged to ask questions and participate actively in the discussion. As well, it is hoped that each of you to ask yourself and your friends: What determines winning and losing? Some people believe it is skill (or intelligence) and others feel that it is one’s destiny and fate. Is it really true that gambling is a technological and tricky business? I am not sure about it. Although there are books for sale that teach people how to gamble successfully, I think these books are written and published basically for commercial purposes. If the writers of such books really believed gambling techniques and tricks to be scientific, they would have made a fortune through gambling and would not toil themselves by writing to share with others their secrets of how to make money. Besides, there will always be someone who is better than the best. If there exist some tricks, casino experts will work out ways to deal with them such as improving gambling machines and facilities in order for their gambling operation to be as flawless and as cost-effective as possible. Then is there something called fate or luck? That’s hard to say. Fate is something like ghost, whose existence is hardly possible to be confirmed or validated. Whether it works or not depends on how we identify with it. It is true, if we believe in its existence; otherwise, untrue. Given the fact that fate is invisible, untouchable and difficult to be explained, it is quite understandable that we’d prefer to describe it as something similar to our subjectivity. Therefore, we often address 89


This is one of the books you can easily to find in Macao’s book stores or news stands. It tells you how to play with Craps, Blackjack or 21, Slots, Roulette, Keno, Poker, Baccarat, etc, and to make money instantly. But nobody knows how many people win by reading these books.（See Len Miller, The Gambling Times Guide to Casino Games, Barricade Books Inc., 1983.）

prayes to God to bestow us good luck, and misfortune would never befall us. But we cannot expect ourselves to depend only on fate or good luck for our future lives, nor to replace our personal effort in earning what we desire to obtain by making a bow to God and burning incense. We often meet with hard-working ordinary folks and careful and penny-wise business people who burn incense in front of their houses, praying to God that would bring them prosperity. However if they do so to reinforce their desires and motivation as well as to work diligently, they will be respected. On the other hand, if someone totally relies on fate and luck, dreaming that God would help him or her to make a fortune without working hard, he or she will be lazy, seeking pleasure, indulging himself or herself to be luxury in “dine and wine”, frittering away time, energy and money. Such a person should be hateful, pathetic and sinful, and can be said to have gone astray. One of the negative effects of gambling is to prop up our mentality for luck. This is particularly attractive and tempting among young adults and teenagers who are not mature enough, mentally and 90


psychologically. If someone has won a grand prize, the media will cover the news extensively, much more than necessary (on the contrary, the fact that a majority of people lose money is hardly mentioned in the media). This kind of media coverage in fact motivates people to pursue good luck, and give up the proper path to success — study hard and work hard. Examples like this are many throughout the human history, and everywhere in China and beyond. One research done by Tan Pei and Chen Wanwen has shown that if parents (one or two) are working in casinos, it will give heavy impact to their children for their value judgment. For instance, when being asked “do you agree with the notion that gambling can bring quick wealth”, different students have very different answers. If no parents working in casinos, the positive answer (agree and very agree) ratio is pretty low (37%); if one parent working in casino, the ratio is 43%; if both parents working in casinos, the ratio is 62%. 1 This survey shows that the mentality for good luck is growing with the influence of gambling business. Along with the growing employment number in casinos, within which most jobs are open to local Macao people only, the education on social value has to be improved and strengthened. Otherwise, the future Macao society will have to pay a high cost. 5.2.3 Tend to result in social tragedies Gambling behaviors often result in social tragedies, personal bankruptcy and family breakups, which become materials for creative writings or work of fictions as often documented in historical novels such as “Sanyan” and “Erpai” (“ 三言 ”、“ 二拍 ”) 2. There are, however, some 1 Ieong Wan Chong ed. Social Development and Healthy Growth of the Youngsters, Macao Research Center in the University of Macao, 2006, p.228. 2 “Sanyan”and “Erpai”are the short names for 5 classical Chinese short stories written by Feng Menglong (Xingshi Hengyan, Jingshi Tongyan, Yushi Mingyan) and Ling Mengchu (Chuke Paian Jingqi, and Erke Paian Jingqi) in the late Ming Dynasty and early Qing Dynasty. Many stories are about regular people’s daily lives. See detail from the following online book site: http://www.cnlu.net/.

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reverse cases. For example, a film made in mainland China called To Live, with Ge You as the leading actor tells a story about a son from a wealthy family, who enjoyed gambling and lost all his family wealth to a poor man in his village. The poor man was hard-working and soon became a new landlord; instead the used-to-be rich became a poor man who then made a living by wandering about the streets and singing there (shadow play). When the Communist Party launched the land reform, the new rich man was shot to death, and the poor man (i.e., the used-tobe rich) was lucky to avoid. As a proletarian, he was protected by the new government and entrusted with important responsibilities. Ge You’ s play does not point to praise the gambler, nor does it suggest at all that gambling can save people. It is only a satire of unpredictable and changeable historical events.

This picture is a poster for a famous Chinese movie entitled To Live acted by movie star Ge You and Gong Li. The story describes a landlord’s son who addicted in gambling and lost all his family assets, but that saved his life, because in the following land reform, the winner of his land was executed as a new landlord, and he became innocent.（http:// bbs3.nnsky.com/dispbbs_43_4251867.html）

The problem of gambling does not only affect the players, but also the dealers as well, in terms of alienation in their work. Questioning the popular riverboat gambler image, the researchers interviewed forty-four Las Vegas casino dealers and examined them with items based on the characterizations within each of the five dimensions of powerlessness, 92


normlessness, meaninglessness, social isolation and self-estrangement, in addition to references about their bosses, customers and fellow workers 1. The sample overall shows a high degree of powerlessness, much of which related to pit bosses. Close connections to influential people is the major factor that helps a dealer change aspect of his job, rather than skill, experience and union. Interviewees reported that they had no chance to express creativity or imagination because of the strict game and casino rules and the close surveillance by bosses, guards, customers and government investigators. In terms of social isolation, a dealer is not only allowed to form meaningful relations with customers, he is also not likely to find fellow-dealers. The occupation had forced the dealer to change aspects of his personality and his view of life (ironically the image of riverboat gambler is evident at the beginning of the interviews), and fifteen of them thought that they had resorted to the usage of addictions. Similar phenomenon among the American Chinese employees in Vas Vegas has been also reported in Chinese newspapers. 2 Here again we come back to the old question which was discussed previously: Should people blame themselves, or the existence of the gambling industry for their family tragedies? I feel they should first take the blame (or responsibility) themselves for the lack of self-knowledge (or lack of self-control, lack of good luck, lack of good skills, lack of enough money and something else?) But, gambling has a tempting and corrupting force. In particular, underground casinos and dim murky places controlled by a bunch of criminals and thugs should be blamed at least partially for family tragedies. So from this perspective, those who support a full ban of gambling do have some valid reasons. If we only 1 Smith, R. W., Preston, F. and Humphries, H. L. (1976), “Alienation from Work: A Study of Casino Card Dealers”. In W. R. Eadington (ed.), Gambling and Society: Interdisciplinary Studies on the Subject of Gambling, Springfield, IL: Charles C. Thomas, p. 231. 2 See online report on the feelings of American Chinese employees working in Las Vegas casino, http://bbs.51ielts.com/thread-457538-1-1.html.

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emphasized personal responsibilities and overlook social environmental influences, then it would appear that we were suggesting no regulations and prohibition needed when discussing issues about tobacco, liquor and drugs.

5.3 The Prolonging Historical Debate on the “Allow-or-Disallow-Gambling” In this section, we will examine the reasons and justifications for the prolonging debate on the allow-or-disallow-gambling. It has to be emphasized again that as we explore this issue from sociological and theoretical perspectives, we will not make any subjective value judgments. We encourage and respect different views and positions as long as they are convincing and justifiable so that we will be enabled to establish a theoretical basis for the future of the gambling industry: To continue its existence for further development or to abolish it for good. 5.3.1 Theory and practice on the “disallow-gambling position” It was mentioned in Section 3.3 of Chapter 3 on “The Cultural Differences of Gambling between China and the West” that all thinkers of the early Qing Dynasty including those of Confucians and legalist schools condemned gambling activities from a moral criterion, and even categorized it as one of the “Five Non-pieties”. During the Three-Kingdom Period, Dong Wu（East Wu）Minister Wei Zhuo was commissioned to write “On Gambling”（Boyi Lun,《博弈论》）, a legendary thesis which listed bad influences of gambling activities that would make people lazy, lousy and weak, and give up their careers, all of which brought about tragedies to the country and to their families. However, between the lines in his writing that advised people not to indulge themselves in gambling, I feel that he mainly criticized the obsession of chess-playing activities (i.e., an ancient activity of gambling). But we know that Chess Play is an activity that needs 94


G a m b l i n g b a n n i n g s to n e w a s q u i te popular in ancient China for teaching people don’t gamble. It usually listed all the negative consequences that caused by pathological gambling. This one was set in Pingyang County, Wenzhou District, Zhejiang Province in the late Qing Dynasty.（www.zjol.com.cn/ pic/0/01/64/21/1642142_994592.jpg）

artistic talent and skills and its main purpose is not to make money, but to compete (winning or losing) for talents and skills. It should not be banned at all. People should also understand why professional chess players [e.g., China’s national hero, guoshou ( 国手 ) Nie Weiping] are deeply preoccupied with thoughts on chess. Unfortunately, in ancient times there was no such a profession, and therefore our ancestors’ criticism should have some validity. The ban on gambling achieved some success in Tao Yuanming’s era of the Jin Dynasty. All gambling means and materials confiscated would be thrown into the river; and any officials who were engaged in gambling would be physically punished by whipping. The early Tang Dynasty worked out the “Tang Legislation”（Tanglü Shuyi,《唐律疏议》）which contained detailed definition of gambling and the criteria guiding the punishment and reprimand for gambling behaviors. Interestingly, however, powerful doings such as arrow-shooting and martial practice were not considered as a gambling crime even if the doers did gamble for money and possessions. In punishing a gambling gang, the person who won money was sentenced as the main criminal and all the money he won was considered as something stolen. The person who lost money was a minor criminal who got a lighter sentence. 95


During the middle age of the Song Dynasty, the ban on gambling carried much more seriousness and the penalty would be much tougher than that in the Tang Dynasty. In the Capital of Kaifeng, for example, those who gambled in groups and in public places would be executed. As well, those who ran or protected underground gambling would be put to death. The first emperor of the Ming Dynasty, Zhu Yuanzhang, came up with an even funnier idea that an “Idle House” was built in the Capital of Nanjing where all captured gamblers were locked to “live in idleness and to die of hunger”. Yet, such a cruel punishment did not last long and failed to stop gambling that was becoming increasingly popular and trendy. The last empire in China, Manchu Qing Dynasty held a practical attitude toward the ban on gambling and strictly implemented it during its earlier years in power, particularly in Northeast China, the hometown of the Manchu. But subsequently in difficult times at home and abroad, the Qing Dynasty gradually loosened the ban on gambling and even agreed to issue lotteries as one of means for it to generate revenues. On the contrary, some concerned socially conscientious individuals protected strongly against gambling. There is one piece of “Banning Gambling Stone” set up in Cai Ancestral Temple, Jiru Village, Huili County, Sichuan Province in 1868 that listed ten crimes of gambling: 1）deteriorate the mind and soul, 2）lose morality, 3）cost lives, 4）disgrace our ancestors, 5）misplace family value, 6）destroy families and homes, 7）cause troubles, 8）separate the kin, 9）violate laws, 10）get cursed by God, and so forth. The list basically summarized the main reasons held by the majority of people who supported the ban on gambling. 1 One of the later developments is stipulated from the assumption that governments can run gambling better than the criminals and their natural operators (Bolen 1976). Opponents make their argument by indicating the inefficiency of the government (in contrast to the 1 Luo Xinben & Xu Rongsheng (2002), Chinese Ancient Customs of Gambling, Shannxi People’s Press, pp.286-289.

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emphasis on the government’s honesty and integrity), 1 in addition to the functions of providing job opportunities, prestige (Drake and Cayton 1967), financial means, community solidarity (Light 1974) 2. The modern theology and philosophy has shifted its stress in stewardship of God’s property and the sinful nature of gambling, towards that in the casual relationship between gambling and social decay. The latter, however, has but rejected as non-existent. 3 Most western countries, however, do permit some degree legalized gambling. One report published in 2002 in England insists that gambling is one human behavior that cannot be eliminated. Society should permit legalized gambling under serious scrutiny, but gambling should also be limited to a reasonable degree for entertainment only. Canadian people have divided into two voices, 63% (the majority) think gambling is personal rights should be protected, no matter what consequence it might have. The opposition side is small, but often makes bigger voices. Hong Kong does not allow casino, but lottery, horse race and ball game gambling is quite popular. Supporters say the rights of ball game gamblers should be protected, and the crime on gambling can be minimized after legalization. But the opposition faction thinks that legalization could produce more problem gamblers, especially leading youngsters to wrong direction. Legalization of ball game gambling also means to increase taxation with different names. 4 1 Burke, D. V. (1976), “The Legalization of Gambling in the United States: An Analysis and Forecast”. In W. R. Eadington (ed.), Gambling and Society: Interdisciplinary Studies on the Subject of Gambling, Springfield, IL: Charles C. Thomas, p. 41. 2 Bolen, D. W. (1976), “Gambling: Historical Highlights and Trends and their Implications for Contemporary Society”. In W. R. Eadington (ed.), Gambling and Society: Interdisciplinary Studies on the Subject of Gambling, Springfield, IL: Charles C. Thomas, p. 28-31. 3 Bolen, D. W. (1976), “Gambling: Historical Highlights and Trends and their Implications for Contemporary Society”. In W. R. Eadington (ed.), Gambling and Society: Interdisciplinary Studies on the Subject of Gambling, Springfield, IL: Charles C. Thomas, p. 31-32. 4 Quoted from Grace Mary Kwok Heung Leung & Siu L. Chou, Gambling: Reasons, Results, and Treatment, joint Publishing（Hong Kong）Co., 2005, pp.161-163.

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5.3.2 Main theories of the “allow-gambling position” As we discussed in Chapter Three, although those taking the disallowgambling position have their reasons, the gambling activities and laws prohibiting gambling from the past to the present have always juxtaposed with each other and enjoyed mutual growth and development. Never has any country been successful in implementing a long-term ban on gambling, nor in abolishing gambling once for all. Furthermore, with the development of the gambling industry likely to enjoy four modernizations, it would do more harm than good to continue the ban on gambling. Given this reality, some socially concerned and open-minded individuals are beginning to promote the allow-gambling position. In other words, they now endorse a legalized management for gambling industry.

It is a portrait of Zhang Zhidong (1837-1909) in the late Qing Dynasty. It said that when he governed Guangdong, and had no money to support his army, he strongly suggested gambling legalization in this area. This is probably one of the reasons that leading Guangdong to be one of the areas in China with gambling flourishing.（http://baike.baidu. com/pic/3/1193906097358604.jpg）

Zhang Zhidong, the late Qing Governor of Guangdong and Guangxi, might be one of the most important officers in Chinese history that advocated gambling legalization for collect taxes to build up the new army. It is very interesting that another important comprador bureaucrat Zheng Guanying did not support gambling legalization in Guangdong. 98


On contrast, he left many criticisms on coolie smuggling, gambling, prostitution, and drug abuse in Macao. It was probably because he lived in Macao in his later years and observed the social consequences of those businesses to Macao society. 1 In general, according to the recent history, those both at home and abroad supported a lawful gambling have provided a number of reasons as summarized in the following points. First, the suppressed humanity should be changed into an expressed one. This new concept is the result of human reflections on the causes of crime and on the social order thanks to the establishment of theories on sociology and criminology. Clearly, the impulse as part of human nature for gambling cannot be eradicated by the means of severe suppression. It is therefore necessary to resort to another perspective, which will enable people to express themselves freely, of course within a certain reasonable scope. In this way, motives to commit crime will be reduced and tensions among various social relationships will be loosened. The position for the expressed humanity instead of the suppressed one is appropriate for legalizing gambling but also for smoking, drinking, prostitution and other similar issues that need to be regulated and legalized. Second, legalized gambling helps reduce certain kinds of crime rate, a position which is both supported and protested. Supporters argue that legalized casinos provide a site for entertainment to those who enjoy gambling so that they can do so openly rather than go underground. In addition, it also offers casino owners an opportunity to make use of their business talents and skills. As long as one can get a gambling license, he or she does not need to take a risk doing business underground. Obviously, if gambling is prohibited, these two types of people will become suspected criminals; otherwise, they will be law-abiding clients and business owners, thus decreasing the crime rate. On the other hand, protestors claim that although legalized gambling reduces the crime rate among the above two types of people, the number of people engaging in 1 Xia Dongyuan, Selected Works of Zheng Guanying, Macao History Association, 2002, p.432.

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gambling activities will go up dramatically; and accordingly, the number of people who may go bankrupt and lose their homes will increase significantly if they lose money in gambling. As a consequence, there will be a lot more crimes of different kinds such as stealing, robbery, cheating and so on. For instance, the crime rate is reported to go up in Atlantic City, which used to be a peaceful and quiet city, since gambling became legalized there. I think there is some valid reasoning in each of these arguments. The main dilemma is that it is not good enough to simply legalize gambling. Instead, there should be some officially recognized forces, including a series of other social reforms and measures, to monitor and supervise the gambling industry. In this way, it can be guaranteed that the crime rate will be reduced, or at least, not in rise. Third, legalized gambling can help the government to boost its revenue by collecting taxes which will be used to benefit the people. One reason is that, if you urge people to simply donate for whatever reasons, most people might be reluctant to do it. But if you collect money by issuing lottery tickets, it will be much easier for people to buy. The only difference is the probability that might give them an equal chance to win. The most popular slogan for selling lottery tickets is: “Everybody can become rich, the only thing you need is one dollar and a dream.” We have already discussed a great deal about this issue in the above section on the positive impact of the gambling industry on social development. Macao society should have more experience and a better understanding than other societies regarding how the government increases its revenue by collecting taxes from legalized gambling activities, thus offering benefits for its people 1. Therefore there is no 1 Macao SAR government recently announced to subsidize every Macao residents with cash, MOP5000 for each permanent resident, and MOP 3000 for each temporary resident. The reported reasons for this decision are two: First the government has financial surplus; Second to reduce the impact of inflation. Some people think that since the announcement has been made just before May 1, 2008, which is traditionally for working class to launch protests, an underlined reason is to relax some people’s discontent, thus to minimize their demand, for organizing another May Day demonstration. See more report and analysis from http://www.49mb.cn/html/ReDianZiXun/83/ & http://www.sonpou.com.mo/.

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need to further talk about it here. But here I still want to briefly mention that it should be one of research topics in sociology about how the taxes that the government collects from the gambling industry are spent to benefit its people, and what extent to benefit all citizens in society. For example, the Manchu Qing Dynasty compensated imperialist countries by using taxes collected by issuing gambling lotteries. Moreover, its army could not guarantee national safety nor protect its people, but bullied them. So gambling did not bring about happiness but suffering to people. During over 150 years of legalized gambling in Macao from 1847 until its handover to its motherland in 1999, the colonized government had collected a countless amount of taxes. But how much wealth and happiness was generated for the people in Macao? Without doubt, those who are familiar with the Macao history have a clear idea of this reality in their minds. Then what are the reasons responsible for the failure to create wealth and bring about happiness for the people? Historical experience proves whether taxes the government collects from gambling benefit people also relies on other variables such as the nature of the government, the degree of its political transparency, its decision-making process, its fairness and honesty and so on. Since the handover of Macao to its motherland, there has been a fundamental change in the nature of the government. With the truthful guiding policy of “One Country with Two Systems, the People of Macao Manage Macao”, the Special Administrative Region (SAR) Government has been making great efforts in its governance. As a result, it has successfully brought about many new changes and modifications which become a determinant condition for using the taxes from gambling to accumulate wealth and bring about happiness for the people in Macao. In Chapter Six we will explore in detail the issues on how to use the limited financial resources to achieve maximum effects and benefits for the people. The fourth and final point is that only a legalized management can modernize the gambling industry, speaking of which, it reminds us of Las Vegas. It should be known to us all that the establishment of the 101


gambling industry in Las Vegas grew gradually to its present state. It was initially a grubby and muddy place and gangs were fearsome and frightening. It was a society that was describe by the socialist community (including China in Mao’s era) and Western left-wing politicians as an example of the corrupted and dishonored culture in capitalist societies (another example is Hollywood films). But without realizing the time elapse, almost the whole has no choice but to acknowledge the great success in modernizing the big gambling city. Although the city cannot be claimed to represent an advanced culture, at least it can be said to have realized the modernization of gambling industry. Without gambling in Las Vegas, today the city would not have been in existence. Even if it did, casinos and prostitution could only have been operated in secrecy, and surely in conspiracy with policing bandits and thugs, messy, dirty, frightening and worrisome. Therefore, it can be easily understood that legalized gambling is logically related to modernization. But the problem is whether other places want to learn from Las Vegas, or even they want to learn, whether they are able, or not able, to do so is still remaining a question. This picture shows that one of the two casinos is under constructing in Singapore day and night. The size and total investment are larger than that in Macao. In addition, there are two other advantages might make the Singapore Sands to be more competitive than Macao Sands: one is the lower taxation ratio, and the other is the higher percentage of gambling money returning back to customers.（http://blog.pixnet.net/ lovelysteve/post/16034658）

Gary S. Becker (1992 Nobel Laureate), published in Business Week (SEP 6, 1993) a magazine article titled “Gambling’s Advocates Are Right but for the Wrong Reasons” which is supportive to gambling 102


legalization. But, in the article, he is not in favor for the purpose of increasing government revenue. He raised three reasons for gambling legalization. First, with the legalized casinos, gamblers will not go to underground gambling. Second, legalization will reduce the impact from the underworld society. Third, the harm of gambling is less than that of smoking and alcoholism. If people tolerate those two, they should tolerate gambling. 1 Why Prof. Becker suggests legalizing gambling on the one hand, but on the other hand, opposes this legalization for the purpose of increasing government revenue? I try to give two explanations. The first, taxation should be regulated by law and based on continuous development on productive business and consistent development of the national economic size. From economic prospect, since gambling does not create any social wealth, therefore cannot be considered as a main resource for taxation. The second, casino business is also one kind of business. If taxation ratio is too high, it will certainly decrease the money returning ratio to gamblers, leading to indirect taxation to customers. At the same time, profit decreasing of the business will jeopardize its reinvestment for further development. Because of the isolation of Macao economy from mainland China, and Macao’s financial gaining will be the financial loosing of Mainland China. If we view Macao and China as one totality, monetary transferring does not enlarge economic size at all. The rapid development of Macao’s casino business and the gradually surfacing social problems in Macao are seemingly endorsing what Prof. Becker has been previously far-sighted in his article. He is really deserved for his title of Nobel Laureate. 5.3.3 Life goes on and debate continues Being restricted by a traditional morality and ideology, people often come up with a twisted point of views. For instance, in respect of legalizing gambling and other related issues, they cannot deny the 1 Lei Kong, Gambling: An Economic View, Macao Journalist Association, 2003, pp.26-27.

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certainty that on the basis of the theoretical assumptions of sociology, the four modernizations of the gambling industry is a historical development trend. But for the sake of partisan interests and political positions, they may still present various kinds of reasons or even invent some excuses to prevent gambling legalization. This is what can be called “abstract approval and specific disapproval”. Speaking from another perspective, however, social life will never remain constant and stable. As one Chinese saying goes, “thirty years is on the west bank and thirty years is on the east bank.” What seems plausible in one era may be implausible in another. Thus, we can expect the debate on the “allow or disallow gambling” will continue without stopping. My personal observation, nevertheless, reveals that, Mainland China has entered (or is coming) into a non-ideological age, during which the constraint of traditional value system has basically disappeared, or are disappearing. Lots of things such as gambling and prostitution are done but not voiced, and the government officials turn a blind eye or two to them, wondering whether they are able or want to intervene. If things go on like this, it is very likely that some places will try to legalize gambling and a red-light zone, a possibility that the gambling industry in Macao should be fully aware of and prepared for. And if they keep on believing that the ban on gambling there will never be lifted, and that within China, Macau is the only place where gambling is legalized, it will sink us into an inactive state of affairs, once sudden changes take place there. This reminds me of an incident that took place over 20 years ago. In 1979 I was a graduate student at Chinese Academy of Social Sciences in Beijing and on my way home for the Spring Festival that year, I brought with me a tape, which was recorded by Mr. Liao Gailong (the VicePresident of the Party School of the Central Committee of C.P.C. at that time). The tape was about the closing down of people’s communes, an issue that was being discussed on the Central Committee of Chinese Community Party, but unknown to all subordinates and ordinary folks. After the news that I played this type became known in the commune 104


and the county, the local officials assumed that I was engaging in some kind of counterrevolution activities (according to them, going against communes was equal to being a reactionary, can be put in jail and even sentenced to death). I was almost arrested. Luckily two weeks later, a document issued by the Central Government in Beijing, which allowed peasants to divide the land for group or household to cultivate, was distributed to the county level, which spared me the near life-and-death trouble. Otherwise, I might have had some taste of what it feels like in prison. This incident shows that there may be some dramatic changes in Chinese policies, many of which will be fundamentally important for the national development and lives of the people. Will there be an exception to the policy of the ban on gambling? On the other hand, is there another possibility other than the dichotomy of liberalization and anti-liberalization? Scholars have illustrated more creative use of gambling: for example, how about giving the citizen a lottery ticket to encourage waste recycling? 1

1 Bolen, D. W. (1976), “Gambling: Historical Highlights and Trends and their Implications for Contemporary Society”. In W. R. Eadington (ed.), Gambling and Society: Interdisciplinary Studies on the Subject of Gambling, Springfield, IL: Charles C. Thomas, pp.33-35.

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Chapter 6 The Application of Gambling Sociology In this chapter, we will consider the practical applications of gambling sociology with a focus on the concept of “responsible gambling”, its origin and development, ill-mental gambling in terms of its definitions, evaluative criteria, identifying techniques, the making of laws and policy, prevention measures, and the establishment of a permanent institution, including its financial resources and staff training etc. Other prevention and medical treatment for social diseases (e.g., prostitution, drug trafficking crime etc) will be briefly mentioned, but not discussed extensively for the time being due to insufficient data and materials for consultation.

6.1 Responsible Gambling, a New Issue for Macao “Responsible gambling” is also called “responsibility bearing gambling” or “social responsible gambling”. As a new concept has been emerged from western societies in recent years or decades, it is reflecting, in overall somehow, the modernization trend of gambling business, at least in western society. And it is something Macao has to face seriously, or is been faced right now, so it is worth for us to have some discussion on this concept. 6.1.1 Responsible gambling and corporation’s social responsibility Among the NGOs in western societies there has emerged a new social 106


movement in recent years called “corporation’s social responsibility” or CSR in short term. Its members include not only union leaders and labor movement activists, but also government officials in charge of labor issues, and also some famous multinational corporations, such as Nike, Reebok, Adidas, and etc, who are also participated. Responsible gambling should derive or develope from the concept of “social responsible business”. The term means that entrepreneurs and firms, especially those in the second industry who transfer their business to developing states due to cost or environmental burdens, must bear the necessary social responsibilities in the host country, such as obeying the regulations on legal working hours, improving the working environment, raising the wages, and respecting human rights. If a firm has not fulfilled its duties, international labor and commerce organizations can boycott its products, refuse orders, or even sue it in the court. The main parties advocating the movement in the global scope are international labor organizations and NGOs in developed and developing countries. Some governments and large firms which are inclined to a more humanized mode of administration, start to recognize the importance of social responsibilities for protecting the atmosphere of fair competition. Interestingly, this tendency aptly proves the viewpoint raised by Karl Marx more than a century ago: there is no nation for the working class, or the proletariat of the whole world shares a common interest. Corresponding to social responsibility in business, responsible gambling attempts to combine the interest of the dealer (who exploits) and that of the player (the exploited). Traditionally practiced or viewed, the relationship between the dealer and the player is at least contradictive, even if it is not totally hostile: one’s lost is the other’s gain. That derives the term Bosha (to fight and kill); only one survives. Pathological gambling is generally seen as personal: one is not forced to gamble. Even the gambler himself often blames for his bad luck. Few make their account on the casino. 6.1.2 Gambling competition in Macao: something new and something old The concept of responsible gambling, by helping us looking at the 107


question from a different perspective, inspires us in two ways. The first is the responsibility of pathological gambling. Certainly, just like other social problems like drugs, alcoholism and prostitution, the gambler has his part, but as a social problem the society needs to bear its part as well: the gambling industry, which creates these gamblers, the government, which legalizes gambling and gets advantage through raising taxes, and every sector of the society, which benefits from the tax. It can be summarized as: who creates the problem needs to eliminate the negative effects. Second, there may be a common interest in some form between the gambler and the casino. If the casino and the society on the whole do not care and cure pathological gambling and let it develop, let the gambler to bankruptcy and suicide, family disintegration, homelessness or crime, the image of the casino will be damaged. General tourists will be distracted and stay away, and the sustainable development of the casino will be impossible. On the other hand, being alert to the gamblers’ unhealthy tendencies and preventing extreme situations by providing assistance and cure upon the signs are shown till they return to normal life, not only saves one’s soul and family, but also allows his continuous “contribution”. If the strategy that creates pathological gambling is killing a goose for the eggs, the “prevention and cure” strategy can be described as “raising the goose and pick the eggs”. The advantage is clear here even if it is understood only from profit terms rather than humanitarianism and social considerations.

This picture shows one free shuttle bus running from casino/hotel to the Border Gate and Macao-Hong Kong Ferry. It claimed to be the first hotel offering 6-star service. Before opening for competition in gambling, there were very few casinos offering free shuttle bus. （http://www.hkitalk.net/HKiTalk2/redirect. php?tid=266853&goto=lastpost）

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No doubt the blooming of the gambling industry brought forward by the liberalization policy has brought us a new dawn: here come sixstar hotels, buildings grow tall, the casinos become bigger and more luxurious. Free shuttle buses go around the city, and there are free drinks and stage performance (even free rice with BBQ pork)… These are all new, but the most fundamental change is the introduction of responsible gambling. At least we have seen leaflets promoting services for pathological gambling in two or three casinos. There are also centers organized by the government, the Caritas and labor unions.

Colorful brochures are available to gamblers for free in all Australian casinos. It was named “Play Smart”, telling gamblers “don’t be stupid for trying to win a big prize”, the philosophy and logic of these brochures are teaching people that the major or healthier mentality for gambling is entertainment, not for fighting to become rich. （This picture was scanned from the poster collected from Australia.）

We still need to point out that, though competition brings progress, though the concept has rooted in Macao, it is far from the social needs. First, the government lacks legal checks it should set up. Not all casinos treat this problem at the same level; some just pay lip service to it. Others just do not consider this to be their responsibility. Third, the society lacks the awareness and the attention to the concept. Basically pathological gambling is still seen as personal and moral problem, not as a responsibility the government, the industry and the society should bear together. There is still much space for our effort, compared to developed nations like Australia. How this concept is applied to the everyday management, the legislation, and the concrete action of the community, involves many fields in sociology and social work. We are going to discuss this matter in the following sections. 109


6.2 Problem Gambling and the Treatment of It Ill-mental gambling is one of the major problems faced by the modern gambling industry in all countries. The so-called modern gambling industry is in comparison with the traditional gambling industry, an industry which was lack of necessary human morality and whose owners had only one goal in mind-making money. In the past, such problem gambling was not taken very seriously and the general public felt that ill-mental gamblers suffered from personal immorality and improper education; so they got what they deserved. Only until recent times when social sciences have advanced to a certain extent, has the illmental gambling begun to receive a serious attention from the society and governments. Therefore, it is not simply a matter of being good and kind to care about problem gamblers, but an issue of strengthening a good social system and modernizing the management of the gambling industry. In this sense, whether there is an established system in providing with services to problem gamblers is regarded as one standard for distinguishing modern gambling industry from traditional ones. This is one of the typical posters staged on all gambling machines in any Australian casinos. According to “Gaming Machines Act 2001” passed by the Australian parliament, all casinos must put up those posters on their gaming machines according to their sizes. The wording is universal, and the meaning is obvious: don’t fight with the machine and computer, your chance to win is very minimal. （This picture was scanned from the poster collected from Australia.）

According to Professor Nazarechuk of the University of Nevada, approximately 3% to 6% gamblers have a tendency of developing some unhealthy gambling mentality (depending on factors such as education, 110


occupation, family background and so on). If the society provides a timely support and assistance, there will be fewer people who may become ill-mental gambling patients. Suppose there is only 3% (the lower level of the scale suggested by Professor Nazarechuk) of people with unhealthy gambling mentality, and in Macao about 8000000 people go in and out of casinos a year, the number of such ill-mental gamblers will be as high as 240000. Furthermore, if we assume that one-third of these people have an unhealthy gambling mentality, there will be as many as 80000 patients, a number which will become even greater, if we include all their family members who are affected by them (or to be accurate, by their mental illness). 6.2.1 Definition of problem gambling People supporting ban on gambling insist that ill-mental gambling is a definitive product resulting from legalized gambling. Occupying a sociological position, I feel that such a claim contains only one-third of accuracy—ill-mental gambling is a product of gambling. This equally means that people will not become ill-mental gamblers if they do not gamble, which is true. However, as we have already pointed out, owning to a human innate weakness, some people who enjoy gambling would go to underground casinos if there were no legalized gambling available. Won’t there be any ill-mental gambling in illegal gambling (i.e., underground gambling)? Clearly, one-third of the above claim is inaccurate. In addition, is it a certainty that legalized gambling produces ill-mental gamblers? It might not be the case. Even if so, how many will become such patients? In honesty, it all depends on how the gambling industry handles these problems. If handled properly, there will be few people, or none, who may become ill-mental gamblers. Otherwise, many will turn out to be such patients, a consequence which will lead to a lot of social problems. What is the definition of ill-mental gambling? American psychiatrist Robert Custer might the earliest person who started to use the term of pathological gambling and compulsive gambling to describe some gamblers. This term was later been documented into the Diagnostic and 111


Statistical Manual of Mental Disorders (DSM-III & IV) by American Psychiatric Association. Following that description, the UN-WHO has further defined pathological gambling as “Pathological gambling is now defined as persistent and recurrent maladaptive gambling behavior.” 1 I’d attempt to offer a tentative definition and appreciate others’ comments and critique. Based on my knowledge and understanding of the gambling sociology, I define ill-mental gambling as follows. Problem gambling refers to those gambling behaviors that due to a lengthy indulgence in gambling, leading to a loss of rationality and a sign of mental illness. Persons having such symptoms can be defined as problem (or ill-mental, morbid, abnormal) gamblers. The above definition involves some subtle issues. Is there any limited quantity in defining the so-called “lengthy time” (i.e., lengthy indulgence)? And, how do we define the loss of rationality and a mental-block behavior? And so no. We will analyze and try to quantify these problems when discussing evaluative criteria in the following part. However, it needs to be emphasized again that it is neither possible nor necessary to aim for quantification with absolute accuracy for research in social sciences, which are different from natural sciences. Rosenthal suggests that there are three components causing problem gambling: an intolerable feeling state, a highly developed capacity for self-deception, and exposure to gambling under circumstances in which it is valued. 2 I would illustrate the last point in the remaining of the section. As for the environment of encouraging gambling, a functional 1 Quoted from Grace Mary Kwok Heung Leung & Siu L. Chou, Gambling: Reasons, Results, and Treatment, Joint Publishing (Hong Kong) Co., 2005, pp.155-156. 2 Rosenthal, R. J. (1993), “Some Causes of Pathological Gambling”. In W. R. Eadington, and J. A. Cornelius, Gambling Behavior and Problem Gambling, Reno, NV: Institute for the Study of Gambling and Commercial Gaming Institute, U. of Nevada, Reno, p.145.

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analysis is useful. 1 To measure intensity, excitement and compulsion indicators of betting rate, duration and persistence are used respectively. Knapp first identifies stimuli (represented by factors such as free or low priced refreshments, audiovisual effects, or just some other people gambling) attracting someone to bet, and discriminative stimuli which attracts someone putting his bet on a particular device. Distributing (non-refundable) tokens is also a response priming (reinforcer sampling) strategy casinos use. To increase the rate of betting, the variable ratio schedule, in which “winning depends upon placing a bet and in the long run upon the numbers of bets placed, but no particular payoff can be predicted”, 2 is used. Another way is the usage of conditioned reinforcers, one kind of which is paying off generously upon the appearance of jackpot in slot machines. This makes gamblers feel “almost hitting the jackpot” with the appearance of the combination of two bars and any other figure. How many pathological gamblers are there? About 2% of the general population is considered pathological gamblers. 3 As Lesieur suggests, 4 however, the population size of pathological gamblers 1 Knapp, T. J. (1976), “A Functional Anlysis of Gambling Behavior”. In W. R. Eadington (ed.), Gambling and Society: Interdisciplinary Studies on the Subject of Gambling, Springfield, IL: Charles C. Thomas, p.277. 2 Skinner, B. F. (1953),Science and Human Behavior, New York: AppletonCentury-Crofts. Quoted in Kanpp, T. J. (1976), “A Functional Anlysis of Gambling Behavior”. In W. R. Eadington (ed.), Gambling and Society: Interdisciplinary Studies on the Subject of Gambling, Springfield, IL: Charles C. Thomas, p.276-294. 3 American Psychology Association (1994), Diagnostic and Statistical Manual of Mental Disorders (4th ed.). Washington DC: Author. Quoted in Graybar, S. R., and Varble, D. L. (2002), “Pathological Gambling as a Heuristic Device for War and Peace”. In J. J. Marotta, J. A. Cornelius, and W. R. Eadington, The Downside: Problem and Pathological Gambling, Reno, NV: Institute for the Study of Gambling and Commercial Gaming Institute, U. of Nevada, Reno, p.3. 4 Lesieur, H. R. (2002), “Epidemiological Surveys of Pathological Gambling: Critique and Suggestions for Modification”. In J. J. Marotta, J. A. Cornelius, and W. R. Eadington, The Downside: Problem and Pathological Gambling, Reno, NV: Institute for the Study of Gambling and Commercial Gaming Institute, U. of Nevada, Reno, pp.325-336.

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could have been underestimated, with the sampling and surveying techniques considered. Certain populations are excluded from the general society, for example, the military, the homeless and the confined. There are some other reasons why the population of problem gamblers is underestimated. 1 A term adopted is the “at large” problem gambler. Firstly, they do not realize they have a gambling problem, because they have not encountered a fatal strike. Secondly, their relatives or friends may cover up the problem for them (Lorenz, 1989). Lastly they are not exposing themselves like recovering ones do, because they do not want to be known following the embarrassment. 6.2.2 Evaluative criteria for problem gambling Professor Nazarechuk suggests that the examination and evaluation of ill-mental gambling (problem gambling) can be guided by four criteria, as explained respectively in what follows. First, length of gambling time. There is not a fixed criterion to determine whether an individual spends too much time on gambling. People have different amounts of free time. One or two hours a day may mean a lot for some while ten hours a day may not be enough for others. Thus, it is deceiving to claim that gambling does not affect an individual’s study or work if he or she spends one to two hours a day, or even five to six hours, while full-time studying or working. Even if retirees who have plenty of free time take gambling as the only form of entertainment, and stay at casinos without eating, sleeping, doing physical exercises and other entertaining activities, they can be said to stay at casinos too long.

1 Smith, G. J., Volberg, R. A., and Wynne, H. J. (2002), “A Qualitative Study of ‘At Large’ Problem Gamblers”. In J. J. Marotta, J. A. Cornelius, and W. R. Eadington, The Downside: Problem and Pathological Gambling, Reno, NV: Institute for the Study of Gambling and Commercial Gaming Institute, U. of Nevada, Reno, pp.339-340.

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This is another booklet distributed in Australian casinos, it reminds gamblers: “Before you press the button, know the facts”(first). The facts include: 1) Pokies are programmed so that in the end the machine will win; 2) Nothing you do changes that; 3) Pokies are not designed to provide you with extra income, etc. (Quoted from the brochure printed by Government of South Australia. This picture was scanned from the poster collected from Australia.)

Second, ratio between one’s bet and self-wealth. This criterion is even more flexible. It does not mean a lot for some people who make a bet of 100000 yuan, while it may be too much for others whose bet is only 5000 yuan. It is therefore necessary to have a relative ratio as a criterion and to analyze the concept of “personal wealth” as well. This does not, however, suggest that an individual can afford any amount of money or any form of wealth in his or her possession. Instead, it refers to “one’ s disposable wealth”, simply the spare money. Suppose, your monthly salary is 20000 yuan, and that cannot be all your spare money. You have to put aside some amount for various purposes for your family, such as: 10000 yuan for your daily-life expense, 3000 yuan for your son’s tuition fees, 1000 yuan for medical cost, 500 yuan for the loan of your car, 2000 yuan as retirement savings, 500 yuan for entertainment and 1000 yuan for other uses (e.g., invite friends to dinner and travel, etc). How much will be left over now, when the total amount of money for these expenses is deducted? 20000-(10000+3000+1000+500+2000+1000+500)=2000 yuan

Such a small amount of 2000 yuan (one-tenth of your monthly salary) is what we describe as the “wealth for you to use as freely as you like”. If you want to gamble once a week, the largest amount of money you can afford is 500 yuan (2000 divided by 4). If you want to make a bet of 1000 yuan, then it means you can only play twice a month; if 115


your bet is 2000 yuan, then you can play only once a month. Of course, there will be some exceptions if you have won some money, in which case you may afford to increase your bet. But you need to have a selfcontrol capability of discontinuing your gamble and leaving the “golden basin”, if you are losing money over the limit you can afford. If you do not have such a self-control ability and continue your bet, or even with borrowed money, or putting your property into pawnshops, that means you are losing your sanity and on your way to becoming an problem gambler. The above is only a description of people earning salaries. Then how do we assess and evaluate individuals’ savings and incomes generated from investment? In theory, whether you have earned some interest from savings or dividend from stock shares, you must put aside an amount of money which should not be spent; or rationally decide that a portion of the money will be used for purposes such as expanding your investment, retirement, paying debts, taking care of the elderly, education for your children, emergency and so forth. Then you should divide the rest of your money for gambling, and according to your needs or financial ability, determine how much you can afford as the biggest bet each time you are about to do so. Perhaps you would wonder why all the calculations done here is about losing rather than winning. Yes, you are asking a very good question. The so-called “wealth at one’s disposure”, which only enables us to calculate what you already or really have, is a definitive amount. As for winning money, first, possibility is not equal to reality; second, it is difficult to determine the amount; and third, it is impossible for you to control the winning limit; but this can be done with losing limit, so it has to be controlled. This, in my opinion, is a rational criterion. Third, times and extent of lying. Honesty or dishonesty can be considered as another criterion for appraising ill-mental gambling. Under a normal circumstance, gamblers with a healthy mentality will not tell lies or at least they will not lie to those who are most close to them. Winning is winning and losing is losing. There is no need to tell lies. A person who is developing an ill mentality is usually beginning to 116


This brochure also tells gamblers that, like other forms of entertainment, you pay to play the pokies (EGM). The more you play, the more you pay. Losing money this time doesn’ t increase your chances of winning next time. Etc. (Scanned from the brochure printed by Government of South Australia.)

tell lies simultaneously. They will say that they are going to visit friends when in fact they are going to casinos; they have won two or three thousand yuan when in fact only one thousand yuan; or they have not lost any money when in fact they have. Fourth, degree of harmony at home. When people are developing illmental symptoms, they often tell lies and prevaricate. When their illness becomes more and more serious, they will have a hard time leaving casinos and they are beginning to lose hope. Consequently, they will easily lose temper, picking up fights at home, beating wives and children, destroying home harmony. At such a critical moment, if they are not given necessary help and treatment, tragedies will happen that will completely and permanently destroy them and their families. Obtained from his clinical practices with couples, in which the gambler is the male, Steinberg finds that at the beginning of the treatment everything is chaotic. 1 It is also noted that there is denial on both sides. From the treatment issues he raised, we can see how gambling can damage a relationship. Of higher importance is 1 Steinberg, M. A. (1993),“Pathological Gambling and Couple Relationship Issues”. In W. R. Eadington, and J. A. Cornelius, Gambling Behavior and Problem Gambling, Reno, NV: Institute for the Study of Gambling and Commercial Gaming Institute, U. of Nevada, Reno, p.439.

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commitment to the relationship, addiction, preventing relapse, finances and related control issues, unhealthy expression of anger, some of which may be found in both parties. Of a lower level of awareness, possibly among Asians, are deficit in emotional intimacy (even so for the Caucasians, in this case) and sexual problems. The above four evaluative criteria can be used as a questionnaire to solicit answers from gamblers themselves or their family members. These answers can then be turned into numerical data and formulae to be applied for assessing whether the gamblers are suffering due to mental problems, and to what extent the seriousness of these problems is so that feasible treatment plans can be worked out. In addition to these four often-used criteria, there are many other observational methods, including meetings with the gamblers themselves or their families in order to know more about them. It is particularly important to note whether there are extreme cases and whether there is a need for an emergent treatment such as a motive for doing something horrible and an indication of committing a suicide or even a crime. If any, preventive actions must be taken immediately in order to avoid an uncontrollable situation which may turn a sign of tragedy into a real catastrophe. As we’ve mentioned before, APA and WHO have definition on pathological gambling, according to which, meeting at least five of the following 10 criteria can be identified as pathological gambling, as long as these behaviors are not better explained by a manic episode: (1) Preoccupation: The subject has frequent thoughts about gambling experiences, whether past, future, or fantasy. (2) Tolerance: As with drug tolerance, the subject requires larger or more frequent wagers to experience the same “rush”. (3) Withdrawal: Restlessness or irritability associated with attempts to cease or reduce gambling. (4) Escape: The subject gambles to improve mood or escape problems. (5) Chasing: The subject tries to win back gambling losses with more gambling. 118


(6) Lying: The subject tries to hide the extent of his or her gambling by lying to family, friends, or therapists. (7) Loss of control: The person has unsuccessfully attempted to reduce gambling. (8) Illegal acts: The person has broken the law in order to obtain gambling money or recover gambling losses. This may include acts of theft, embezzlement, fraud, forgery, or bad checks. (9) Risked significant relationship: The person gambles despite risking or losing a relationship, job, or other significant opportunity. (10) Bailout: The person turns to family, friends, or another third party for financial assistance as a result of gambling. As with many disorders, the DSM-IV definition of pathological gambling is widely accepted and used as a basis for research and clinical practice internationally. 1 This is Crown Casino in Australia. Some scholar said that the responsible gambling program there is much better than that in USA, let alone in Macao. According to them, the reason for the difference comes from: 1) Australia has better legislation on responsible gambling program; 2) There are stronger NGO on pathological gambling in Australia than in USA. (Quoted from the lecture in UM by Prof. Linda Hanchock, Director, Corporate Citizenship Research Unit, Deakin University, Melbourne, Australia.)

Two other symptoms are also common in the discussion of pathological gambling: withdrawal (physiological/ psychological symptoms when one wants to stop gambling) /dissociation (difference from the self) and chasing (more frequent involvement, increased 1 Quoted from Grace Mary Kwok Heung Leung & Siu L. Chou, Gambling: Reasons, Results, and Treatment, Joint Publishing（Hong Kong）Co., 2005, pp.35-36.

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persistence and elevated monetary risk in an effort to recoup money that had been lost). 1 The former is confirmed in a survey primarily to test the DSM-III-R (Third Revised Version of Diagnostic and Statistical Manual of Mental Disorders) 2 for pathological gambling. It is shown that 65% of the pathological gambler respondents report at least of the physiological symptoms, compared to 2% of the control. A similar pattern also happens in psychological symptoms. The dissociative states are also correlated with pathological gambling, in which two of the four were significantly correlated with the withdrawal symptoms. 3 In comparison to the 1992 and 1995 surveys in Texas, Wallisch provides us an insight on the pattern of pathological gambling: 4 using the Problem Gamblers’ Helpline data, a low rate of admittance of the population is prevalent (28%). Also only 44% of the calls placed are from the gambler himself or herself, while the remaining 56% consists of family members (34%) and other concerned people (friends, coworkers, teachers or employers). In terms of gender, two-thirds of calls concerned male gamblers, but the 1995 survey seemed to show that the gap is closing. More calls were from those aged 35 or older than the 1 Breen, R. B., and Zuckerman, M. (2002), “Chasing” in Gambling Behavior: Personality and Cognitive Determinants”. In J. J. Marotta, J. A. Cornelius, and W. R. Eadington, The Downside: Problem and Pathological Gambling, Reno, NV: Institute for the Study of Gambling and Commercial Gaming Institute, U. of Nevada, Reno, p. 240. 2 Rosenthal, R. J., and Lesieur, H. R. (1993), “Self Reported Withdrawal Symptoms and Pathological Gambling”. In W. R. Eadington, and J. A. Cornelius, Gambling Behavior and Problem Gambling, Reno, NV: Institute for the Study of Gambling and Commercial Gaming Institute, U. of Nevada, Reno, p. 340-341. 3 Rosenthal, R. J., and Lesieur, H. R. (1993), “Self Reported Withdrawal Symptoms and Pathological Gambling”. In W. R. Eadington, and J. A. Cornelius, Gambling Behavior and Problem Gambling, Reno, NV: Institute for the Study of Gambling and Commercial Gaming Institute, U. of Nevada, Reno, p. 340. 4 Wallisch, L. (2002), “Gambling in Texas before and after the Lottery: Information from the Texas Gambling Surveys of Adults and Adolescents and the Gambling Telephone Hotline”. In J. J. Marotta, J. A. Cornelius, and W. R. Eadington, The Downside: Problem and Pathological Gambling, Reno, NV: Institute for the Study of Gambling and Commercial Gaming Institute, U. of Nevada, Reno, pp,273-286.

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data in the survey. The percentage of calls from African Americans is roughly proportionate to that of the respondents in the survey, while the Hispanics are calling disproportionately low. When asked what type of gambling causes the most problem, it is interesting to find that, 73% of the callers “found out about the Helpline number from the back of lottery tickets”. Much of the calls concern the lottery, consisting 67% of the callers (42% calls it the “main” problem), while it is the least significant category in the survey, accounting for only 5%. Finally, both data sources show a higher percentage suffering from a substance related problem than the general population. Although family is a critical component in the development of problem gambling in terms of family history, Rosenthal raises a few more, apart from physical problems and hyperactivity. 1 One’ s family may not be addicted to gambling, but factors like extreme competitiveness, non-constructive attitudes and stress on status or an overvaluing of money are also predisposing. 2 In terms of intelligence and personality structure, it is found that problem gamblers are lower in IQ than controls, which is associated with a higher GHQ. Taken intelligence from the balance some other factors still lead to pathological gambling. 3 1 See Rugle, L. J., and Melamed, L. (1993), “Neuropscychological Assessment of Attention Deficit Disorder in Pathological Gamblers”. In W. R. Eadington, and J. A. Cornelius, Gambling Behavior and Problem Gambling, Reno, NV: Institute for the Study of Gambling and Commercial Gaming Institute, U. of Nevada, Reno, pp.309-332. 2 Rosenthal, R. J. (1993), “Some Causes of Pathological Gambling”. In W. R. Eadington, and J. A. Cornelius, Gambling Behavior and Problem Gambling, Reno, NV: Institute for the Study of Gambling and Commercial Gaming Institute, U. of Nevada, Reno, pp.146-147. 3 Pina, A. M., Guirao, J. L., Fusté I Vallverdú, R., Planas, X. S., Mateo, M. M., and Augado, V. M. (1993), “The Catalonia Survey: Personality and Intelligence Structure in a Sample of Compulsive Gamblers”. In W. R. Eadington, and J. A. Cornelius, Gambling Behavior and Problem Gambling, Reno, NV: Institute for the Study of Gambling and Commercial Gaming Institute, U. of Nevada, Reno, pp.149-176.

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The Sociology of Gambling in China This is one sign put up on one street corner by the Australian responsible gambling program, which means there is no gambling machine is allowed in this neighborhood. This kind of local banning decision making power is still controlled by the related neighborhood residents.（Quoted from Prof. Linda Hanchock, Director, Corporate Citizenship Research Unit, Deakin University, Melbourne, Australia.）

How do problem gambling affect specific populations, say, the youth, the female or the less affluent? For the cases of low and fixed income citizens and the seniors, a survey conducted in a three-wave mail questionnaire shows that the claim that gambling, 1 along with pathological gambling, hits the less wealthy the most is wrong, just like what previous studies had suggested. Unable to obtain reasons of not gambling, however, the writers could only speculate that a lack of discretionary income impedes the urge to put a bet. This is also a determinant affecting seniors’ wish to gamble. Women, as the Texas comparison has suggested, are more likely to participate in gambling than the past. A feminist critique on problem gambling studies, 2 however, argues that much of the literature has used male subjects, sometimes even using the male to generalize both sexes. Those adopting women as samples often have been sexist. A study in Australia, by comparing the Chinese, Indochinese 1 Laundergan, J. C., and McTarvish, D.G. (2002), “Prevalence of Gambling and Problem Gambling among Low and Moderate-Income Senior Residents of the Minneapolis-St. Paul, Minnesota Metropolitan Area”. In J. J. Marotta, J. A. Cornelius, and W. R. Eadington, The Downside: Problem and Pathological Gambling, Reno, NV: Institute for the Study of Gambling and Commercial Gaming Institute, U. of Nevada, Reno, pp.355-357. 2 Hallebone, E. (2002), “Women and Gambling in the ‘Risk Society’”. In J. J. Marotta, J. A. Cornelius, and W. R. Eadington, The Downside: Problem and Pathological Gambling, Reno, NV: Institute for the Study of Gambling and Commercial Gaming Institute, U. of Nevada, Reno, pp.376-380.

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and Greek communities, Hallebone finds that the Chinese women were more actively engaged in gambling, including having problems of their own gambling than their Indochinese counterpart. Both communities share the problem of losing the integrative nature of traditions and ties. In analyzing the factors leading to gambling, both the Indochinese and the Greeks (in this case, there also involves a gender difference in card games, which is traditionally male) suffered from unemployment and a lack of recreational outlets. Religious beliefs of predestination have a say on all of these communities. Ms. Cai, who has worked in one Las Vegas casino, said to reporter that you will lose 9 times for bidding 10 times. According to her, there are other colleagues that after working hours indulged into gambling and eventually lost all their savings.（Quoted from online article entitled: “Losing 9 for biding 10 times”, http://www.secretchina.com/）

One of the effects of pathological gambling in women can be seen in the study of Horvath and Pierce considering the relationship between excessive gambling and child abuse. 1 A survey reveals that “in many marriages, the husband was frequently absent from the home” . Women may view gambling as a way to escape from loneliness or boredom, relationship troubles and children problems, or other unpleasant situations in their lives . They risk the household funds for life expenses, ask for money from their children and assign older ones as babysitters, or even taking with them to the gambling venue. Even worse, women have to bear more pressure than men as a caregiver and a pathological 1 Horvath, V. E., and Pierce, R. L. (2002), “Pathological Gambling and Child Neglect: A Cause for Concern”. In J. J. Marotta, J. A. Cornelius, and W. R. Eadington, The Downside: Problem and Pathological Gambling, Reno, NV: Institute for the Study of Gambling and Commercial Gaming Institute, U. of Nevada, Reno, pp. 389-409.

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gambler, leading to a lower tendency to seek assistance while others suggest otherwise for financial limits. On the other hand, spouses of pathological gamblers suffer from negative emotions, deteriorated relationships, or even attempted suicide. Both may lead to child abuse. Youths under the age of 18 (or 21 in some jurisdictions) are not supposed to enter the casino, but gambling is still popular among them. In a US study, more than a third of children gambled before they were eleven years old. 1 In the United Kingdom where gambling on fruit machines is lawful and readily accessible, children may start even at eight or nine years of age. 2 This is accepted socially in the States and statutorily in the United Kingdom based on several rationalizations or misconceptions by adults. 3 As for the pattern of betting it highly resembles that of the adults. More disturbing is that the percentage of pathological gamblers tripled that of the adults. Even worse is that professional treatment programs were then unavailable except for those who also admitted that they suffered from substance abuse. Children of problem gamblers also show higher levels of substance

1 Jacobs, D. F. (1993), “A Review of Juvenile Gambling in the United States”. In W. R. Eadington, and J. A. Cornelius, Gambling Behavior and Problem Gambling, Reno, NV: Institute for the Study of Gambling and Commercial Gaming Institute, U. of Nevada, Reno, pp. 431-441. 2 A study conducted in Scotland has suggested a developmental relationship between video games and adolescence gambling. See Brown, R. I. F., and Robertson, S. (1995), “Home Computer and Video Games Addictions in Relation to Adolescence Gambling: Conceptual and Developmental Aspects”. In W. R. Eadington, and J. A. Cornelius, Gambling Behavior and Problem Gambling, Reno, NV: Institute for the Study of Gambling and Commercial Gaming Institute, U. of Nevada, Reno, pp.451-471. 3 Fisher, S. (1993), “Towards a Sociological Understanding of Slot Machine Gambling in Young People”. In W. R. Eadington, and J. A. Cornelius, Gambling Behavior and Problem Gambling, Reno, NV: Institute for the Study of Gambling and Commercial Gaming Institute, U. of Nevada, Reno, p.396.

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abuse including earlier onset of gambling, 1 less stable family and related social and emotional problems. In a two-step survey conducted in public schools in Minnesota, 2 boys expose a higher frequency of gambling, frequent gambling and also gambling problems. Older students play legalized games more frequently. Caucasians and Asians show a lower frequency than other ethnicities. The relationship between gambling and antisocial behavior is stronger among boys. With a questionnaire and a video blackjack game, 3 it is found that children who participated show an increase in the amount wagered and likelihood to win, and, seemingly ironically, a decrease in desired ability, as well as in fear of being caught, in feeling important and in feeling gambling too much, the more superior the grade they were in. Of great importance is that there is not gender difference at the grades chosen here (4, 6 and 8), speaking for predisposing factors. A three-year survey was conducted in a college near Atlantic City, 1 Another study conducted in Australia confirms so, along with attitude towards gambling. Frequency and Problem Gambling can be predicted by intention. See Moore, S. M., and Ohtsuka, K. (2002), “Gambling Activities of Young Australians: Developing a Model of Behavior”. In J. J. Marotta, J. A. Cornelius, and W. R. Eadington, The Downside: Problem and Pathological Gambling, Reno, NV: Institute for the Study of Gambling and Commercial Gaming Institute, U. of Nevada, Reno, pp.429-453. 2 Stinchfield, R., Cassuto, N., Winters, K. and Latimer W. (2002), “Prevalence of Gambling Among Minnesota Public School Students in 1992 and 1995”. In J. J. Marotta, J. A. Cornelius, and W. R. Eadington, The Downside: Problem and Pathological Gamblingpp, Reno, NV: Institute for the Study of Gambling and Commercial Gaming Institute, U. of Nevada, Reno, pp.287-305. 3 Derevensky, J. L., Gupta, R., and Della Cioppa, G. (2002), “A Developmental Perspective of Gambling Behavior in Children and Adolescence: A Cause for Concern”. In J. J. Marotta, J. A. Cornelius, and W. R. Eadington, The Downside: Problem and Pathological Gambling, Reno, NV: Institute for the Study of Gambling and Commercial Gaming Institute, U. of Nevada, Reno, pp.411-427.

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NJ, to investigate underage gambling, with a sample of 636 students. 1 The results shows that 66% of the student body who gambled (the statutory age at Atlantic City was 21 when the research was conducted) were underage. Unrelated to other social variables like income etc, it is striking to find out that 75% of the respondents who gambled in the past year also played the State Lottery. Another important finding is that 66% of the respondents report that they were winning or breaking even, leading to a possible explanation that people remember wins and losses

This picture shows how a swindler tried to remember each piece of mahjong by watching its special spots through specially designed infrared glasses. However, if some could use high-tech to commit crime, than other high-tech will detect it.（http://watch. szonline.net/.../20070929/53941.html）

differently. Another survey conducted across five U. S. States suggests that the rate of gambling is related to availability of gambling facilities (Nevada and New Jersey have more ways to gamble than Oklahoma and Texas), in terms of frequency and amount input. Pathological gambling is also related to other factors, among which Asian (12.5%) and Hispanics (11%) had a higher response than other ethnicities (4-5%). The respondents, who were college students, also had parents with problems, and they are more likely to have behavior problems, including lower grades. 1 Frank, M. L. (1993), “Underage Gambling in New Jersey”. In W. R. Eadington, and J. A. Cornelius, Gambling Behavior and Problem Gambling, Reno, NV: Institute for the Study of Gambling and Commercial Gaming Institute, U. of Nevada, Reno, pp.387-394.

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6.2.3 The making of policies and laws Based on the above, we can be certain that ill-mental gambling is a kind of psychological illness, which can’t be cured by reprimanding and scolding the patients. Assessment and treatment of ill-mental gambling is a highly specialized job, which requires social services, psychology, sociology, criminology, laws, emergent medical assistance, and nursing skills. Without legalized guides and regulations, it would be ineffective to carry out any kind of assessment and treatment. Las Vegas and other similar places have gained some treatment experiences with ill-mental gambling. They began with legalizing gambling at both county-and state-levels, and imposing the establishment of specialized research institutions and services for ill-mental gambling. The major content of these polices and laws are described as below. (1) To establish criteria, develop teaching materials and endorse public education and specialized courses on ill-mental gambling, prevention and treatment. People involved in businesses that have something to do with the gambling industry, and other management personnel and staff, must take such courses and training. Or else they should not be given a business license to work at casinos and at other similar institutions. These include restaurants, hotels, travel agencies, casinos, casino supervision agencies, security staff, law-enforcement officers, psychologists, social welfare bureaus, private and public service centers for ill-mental gamblers. (2) To ensure free assessment and treatment for ill-mental gamblers by legal means, and provide a 24-hour hot-line telephone service. People working with ill-mental gamblers include social workers, nurses, doctors, emergency workers, security guards, psychologists, service workers (provide food, accommodation and transportation), educational staff, and employment consultants. Some of them may work as salaried staff and others as volunteers. (3) To protect financial resources by legal means. One-third of funds should be provided by the government, another comes from taxes collected from casinos, and the other is donations from people in all 127


works of the society, including ill-mental gamblers/patients themselves and their families. 1 Public education aimed to raise awareness of the prevalence of adolescence gambling and its consequences, integrated programs for parents, teachers and children even to the pre-adolescence ones, and special care for children of problem gamblers are needed as some scholars suggest. 2 This is confirmed the study of Gaboury and Ladoucuer. 3 Based on the assumption that pathological gambling is also an addiction, they design a prevention program inspired by alcohol and drug abuse prevention programs. By providing teenagers with information on gambling, the effect in terms of their behavior, knowledge, attitude and coping skills are measured. The writers found that the impact was significant in knowledge and skills, but not in the other two scales. They believe that a longer program, conveyed through a regular teacher, and integrated with other forms of substance abuse, needs to be explored. 6.2.4 Prevention and treatment institutions for ill-mental gamblers Some documentation shows that in Las Vegas and the Atlantic City in Eastern America, there are more than one institute providing services to ill-mental gamblers, in addition to other public and private agencies such as “Home for Wanderers” under the Social Welfare Bureau, “Antigambling Society” organized by ordinary folks, and some religious groups offering similar services. The biggest institution with the largest 1 It needs a further confirmation of the total amount for the business at the Center, percentage of taxes, the number of staff and so on. 2 Jacobs, D. F. (1993), “A Review of Juvenile Gambling in the United States”. In W. R. Eadington and J. A. Cornelius, Gambling Behavior and Problem Gambling, Reno, NV: Institute for the Study of Gambling and Commercial Gaming Institute, U. of Nevada, Reno, pp.439. 3 Gaboury, A., and Ladouceur, R. (1993), “Preventing Pathological Gambling Among Teenagers”. In W. R. Eadington, and J. A. Cornelius, Gambling Behavior and Problem Gambling, Reno, NV: Institute for the Study of Gambling and Commercial Gaming Institute, U. of Nevada, Reno, p.443.

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number of staff providing inclusive services is “The Service Center for Problem Gamblers” (SCPG). But it is a pity that I have never got an opportunity to visit the SCPG and interview the staff there. According to some Hong Kong scholars, there are about 5 methods to help pathological gamblers to recovery: The first one is Behavior Therapy, originated from treatment for smoking and drinking addictive patients. For example, to ask the patient to carry an electronic device with him, and whenever he approaches casinos, it will release radiation that makes the patient uncomfortable. Gradually, the patient will have conditioned reflex, which helps him to stop gambling. This picture shows that there are more female gamblers than male surrounding this table. Some researchers often pay more attention on female gambling, not because female should have less rights than male in gambling and entertainment, but because as mother, or potential mother, female gambling might give more negative impact to their children. （http://blog.cersp.com/user log/1034/ archives/2007/288248.shtml）

The second one is Control Therapy. For instance, the patient has signed an agreement with his family members for them to control his financial expenditure. That will control his money resource and makes him having no excuse to quarrel with his family. The third one is Cognitive Therapy, that will correct the wrong mentality of the patient, making him aware of the inability for person to determine the probability of the gambling machine, and gambling hurts himself and the family members, therefore to increase his selfresistance. The fourth is Cognitive-Behavior Therapy, that emphasizes the interaction of the gambler’s emotion, mentality, and gambling procedure, to seek opportunity and method for reducing the 129


attractiveness of gambling to the patient. The fifth is called Collective Therapy, means to borrow the power from religion, collective discussion, supervision and assistance of each other for the purpose of giving up pathological gambling. 1 According to the SCPG’s “Service Handbook”, the Center is a nongovernmental, non-profitable independent institution established by a group of people who care deeply about social and public services, and its members of board of directors comprise of social celebrities, experts and scholars who work for the Center without receiving salaries. The administration and the daily operation are managed by people with specialized knowledge and skills, who are hired through a very strict selection and screening process. Half of them receive salaries, and the other half are volunteers (retired specialists) who are only provided with food and a small benefit, that helps cover the cost for their working there. I once asked some staff why such an important institution was not owned and managed by the government, or by a super grand casino with a huge amount of wealth. They offered me the following three reasons. (1) The number of governmental organizations and staff is decided by the Senator that acts according to legalized regulations. (2) The Senator strongly opposes that the government provides services to ill-mental gamblers because governmental officials are customary to doing things according to rules and regulations and they are lack of basic concern, passion and flexibility in dealing with illmental gamblers/patients. On the contrary, non-governmental staff are usually more active and caring than governmental officials in improving and protecting the environment and the image in their community. Therefore, the Senator has decided that the government should provide financial assistance but services must be made available and guided by those among ordinary folks, who are willing to get involved in community affairs such as the SCPG. 1 See detail from Grace Mary Kwok Heung Leung & Siu L. Chou, Gambling: Reasons, Results, and Treatment, joint publishing（Hong Kong）Co., 2005, pp.101-111.

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(3) There will be an issue of conflict of interests if casino owners are in charge of such services, because they tend to cover up social problems and hope that fewer ill-mental gamblers will be identified in order to save expenses for themselves and preserve their images as well. That is why the Senator is more firmly against the involvement of casino owners, who are nevertheless expected to incontestably provide financial assistance and support services centers like the SCPG. Walker identifies fourteen types of therapy for the treatment of problem gambling. 1 They are then put into three criteria: duration (preferably two years or more), success (abstinence or controlled gambling), and financial loss, to examine their effectiveness. Unfortunately both those consider abstention as the criterion for success and those consider controlled gambling to be the criterion experience a rapid decline in abstention rate. A well discussed group is Gamblers Anonymous (G. A.), which imitates Alcoholic Anonymous (A. A.) in terms of the twelve-steps recovery programs. They hold meetings and tell their stories of gambling experience. Other techniques include making phone calls to fellows when there comes the urge to gamble and promising not to do so. Repayment of debts is conducted on the terms that abstinence from gambling is observed. With its voluntary nature, cost is negligible; however, dropout rate is high: only 15% of new members were awarded their two-year pin. 2 As Browne notes (1995), there are significant differences between them, apart from G. A.’s omission of God and Spirituality, namely its top-heavy organization, its gambling-centered attribution, and its “page 17” consciousness. The addition of “page 17” 1 Walker, M. B. (1993), “Treatment Strategies for Problem Gambling: A Review of Effectiveness”. In W. R. Eadington, and J. A. Cornelius, Gambling Behavior and Problem Gambling, Reno, NV: Institute for the Study of Gambling and Commercial Gaming Institute, U. of Nevada, Reno, pp.533-534. 2 Walker, M. B. (1993), “Treatment Strategies for Problem Gambling: A Review of Effectiveness”. In W. R. Eadington, and J. A. Cornelius, Gambling Behavior and Problem Gambling, Reno, NV: Institute for the Study of Gambling and Commercial Gaming Institute, U. of Nevada, Reno, pp.535-537.

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and the de-emphasis of God mean the process to medicalization to the author, which explains its slow growth. 1 Does pathological gambling matter to the gambling industry? Harrah’s Hotels and Casinos appointed a task force in 1989, 2 and arrived at the conclusion one year after, that “it is in a corporation’s interest to acknowledge problem gambling”. Recommendations have since been slowly implemented. This brings four lessons: first, casinos need to face probable charges on increasing problem gambling wherever they expand; second, there is plenty of room for corporations to choose to deal with problem gambling; third, self-regulation is the alternative to state regulation; and fourth, dealing with problem gambling makes good business sense. 6.2.5 Individual privacy and credit line Readers might ask: If the SCPG knows so much about individuals’ lives, will there be a problem of invading personal privacy? Of course, there is such a possibility because when ill-mental gamblers and their families need help, they must provide relevant information about themselves. This is similar to a case in which you are seeing a doctor, you need to tell the doctor what bothers you; otherwise, the doctor will not be able to provide you with medical examination and treatment. Staff at the service center has the obligations to respect patients’ privacy and keep confidential on their personal information. If the service center discloses patients’ personal information for other purposes, it will be penalized by the law. This then involves another thorny problem in our modern and commercialized society: an issue of how to balance the relationship 1 Browne, B. R. (1993), “The selective Adaptation of the Alcoholics Anonymous Program by Gamblers Anonymous”. In W. R. Eadington, and J. A. Cornelius, Gambling Behavior and Problem Gambling, Reno, NV: Institute for the Study of Gambling and Commercial Gaming Institute, U. of Nevada, Reno, pp.588-591. 2 Scrimgeour, G. J. (1993), “Problem Gambling: Any Business of a Casino?”. In W. R. Eadington, and J. A. Cornelius, Gambling Behavior and Problem Gambling, Reno, NV: Institute for the Study of Gambling and Commercial Gaming Institute, U. of Nevada, Reno, pp.567-571.

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between individual privacy and credit line. Many people want to increase their credit line so as to get a better service and to borrow more money from banks. Similarly, casino owners often publicize a variety of special and flattering sale items in order to allure more customers, including offering gamblers loans (for instance, a gambler can borrow at most 500000 dollars a month). As a price to pay, customers must reveal to the casino a great deal of personal information, including their families, businesses, savings, incomes, even personal hobbies for expenditure and so on. This is a trading relationship established entirely on a voluntary basis. Modernized companies with exacting management care about their own creditability and usually they keep secrecy for their customers and do not arbitrarily reveal their personal data. Some newspapers and publications reveal that there are some unconscious companies sell for profit their customers’ personal information such as telephone numbers (a source of so-called trash telephones).

6.3 Prevention Measures for Relevant Social Problems Let us now turn to other social problems related to and/or resulting from gambling, and in terms of how to prevent and solve them. The discussion in the previous section on the negative impact of the gambling industry touched upon some social tragedies, which are, in fact, often interrelated with one another. Like corruption, once a person gets addicted with one kind of vice, he or she will become obsessed with similar bad habits. That is why people often lump together “eating, drinking, commerical sex, gambling and smoking” as one topic in their casual talks or conversations. 6.3.1 Pawn business Pawn business no longer exists in Western societies and once it completely vanished in mainland China. In recent years, pawn business has regained its life, although on a very small scale. Relatively speaking, the pawn business in Macao is disappearing, yet still bigger than in other places. Signs with “Pawn” or “Trade” are often seen near casinos, 133


obviously for those who lose money and sell to the pawn store whatever they have for cash, with which they continue to gamble. I do not know much about the pawn business and only heard something mentioned by the elderly people in my hometown. In the old China, pawn business was active and full of life and pawn stores could be seen in any cities and counties. What is more, almost everything could be traded, including old broken clothes being worn to be traded for a dollar or two enough for the poor seller to buy two bowls of rice soup in order to avoid an immediate death from hunger. Once the word “pawn” was written as a receipt or evidence, even crops that were still growing in the field could also be sold or sent to the pawn store, a trade labeled as “selling green sprouts”. The price was extremely mean and nastily low. A pair of golden hand-rings, for instance, was worth 2000 yuan according to a regular market price; but the pawn store only gave you 1400 yuan. You had to pay 1600 yuan if you redeemed your rings in five days, 1800 yuan in ten days, and 2000 yuan over ten days. The pawn owner got a profit almost as high as high interests earned by those who loaned money. Therefore, most villager people had a negative impression of those engaged in pawn business. They felt that it was a dirty and cruel business done by rich people with money to shrink pawning prices and to grab and snatch wealth from those who were in a difficult or dangerous situation. According to Zhu Chunting, pawn shop business has reached its peak in the 1950s, and there were about 30 pawn shops. Pawn King Gao Kening basically monopolized this business. At that time, all pawn shops would advertise that “24 hours service and redeemed items could be bought back in Hong Kong and Kowloon”. The reason was that at that time most customers came to gamble in Macao were those from Hong Kong. It would be convenient for them to buy their items back there. 1 But now, however, the great majority gamblers are coming from mainland China, but we don’t see any sign shows that they can buy 1 Zhu Chunting, Biography of Stanly Ho, 2001, Guangdong Economic Press, pp.105-106.

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their redeemed things from China. Whether this is because the business managers do not following the new pattern, or because the mainland Chinese do not usually go pawnshops to search for cash. This phenomenon is worth for more research. It is said that some great changes have taken place in the modern pawn business. Used clothes and green spouts are no longer objects for trading (celebrities’ old clothing is, of course, an exception). I am not clear whether there are new regulations governing the pawning business, including its pricing. Without doubt, the trading services and functions of the pawn business will not fade away in the near future. In times of crisis or emergency, people sometimes have to trade their possession for money, which does not have a definitive connection with gambling. But, similar to our discussion of the problems of ill-mental gambling, if a person trades his or her precious items (e.g., an engagement ring) for gambling purposes, or even sells daily necessities at a lowed price (e.g., a businessman’s mobile phone, a salesperson’s car, a fashion model’s jewelries), he or she is beginning to lose his or her common sense or can be categorized as having an ill-mental gambling behavior. It should be discussed and researched in detail whether pawn stores should be allowed to do business with such a “customer” without first asking him or her any questions except for the care of their own profit, a trading deal which in reality intensifies the customer’s illness. 6.3.2 Prostitution or commercial sex Problems resulting from prostitution are no less complicated than those associated with the gambling industry; thus they should be explored in detail. In different parts of the world today, there is a prevailing and contradictory phenomenon. On the one hand, almost all countries are unable to eradicate prostitution and other commercialized prostituting activities. On the other hand, most countries do not permit a system which allows for open prostitution. In other words, commercialized prostitution is on the go everywhere, and yet it is impossible for it to get a lawful status. It seems that in Macao the law does not tolerate prostitution either. 135


Newspapers sometimes report that the police has launched a sudden crack down on prostitution. Yet, hookers are seen dragging, begging and soliciting customers in and around Lisbon Hotel and other places in the city, a scene suggesting as if prostitution were not against law. I am often puzzled that since it is a crackdown, why some people are got rid of and others are still seen active and energetic. Is it because prostitutes have different identification cards, or is it because of different casino owners or bosses? I hope that in time these issues should be considered in detail. Our discussion here is not about general moral and ethical concepts or problems. Moreover, the debate on prostitution like the one on gambling is endless, and will never be fully explained. What we want to explore is to look into how it can help making come true the four modernizations of the gambling industry. According to the World Constitution of Prostitute Rights announced by the Prostitute Rights International in 1985 in Amsterdam, prostitutes have obviously established their organization, and many countries have their labor unions. They have named themselves as “Sex Workers” and are constantly appealing for the international society to recognize their human rights, paying attention to their legal existence, improving their working environment, health and medical care, social service and other legal rights and protections enjoyed by other working population. 1 We should say that in any society and any historical period, sex workers are always a social group deserved people’s sympathy and concerning. From sociological perspective, their requests should attract people’s attention. But, however, in Macao in the 21 century, where is existing a pretty big sex industry, people seem not to see it, not to talk about it, and even resisting scholars to conduct any serious research on it. Based on my observations of Las Vegas, I have now a better understanding of why the American Government forbids prostitution in all parts of the country except in Las Vegas where prostitution is legalized. In summary, there are at least several advantages. 1 He Chunrui, Sex Work: Viewing from Prostitute Rights, Taibei, Chuliu Press, 2001, pp.1-3.

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Firstly. since it is difficult to separate “gambling from prostitution”, it is better to let people do what they choose to do legally rather than illegally. A legalized system and a transparent management can help get rid of other related problems and social illnesses so as to lessen as much negative influences as possible. Secondly, owning to its legal position, the scope and scale of a redlight zone can be restricted and controlled in order that prostitution can be prevented to be in practice everywhere and to avoid negative influence from stretching extensively in other neighborhoods (on teenagers in particular) and in regular business districts. Thirdly, assessing the legitimacy of those engaged in prostitution business and implementing a licensing system can help clear out underground societies and unlawful individuals who saturate and control the prostitution practice. In this way, the crime rate in society can be reduced and prostitutes’ freedom and legal rights can be protected. Fourthly, to protect the health of these in prostitution practice and their customers, and to prevent wide-spread sex-related diseases, AIDS and other epidemic diseases (including SARS), prostitutes should be physically examined on a regular basis, and entertaining sites such as massage quarters, spa resort and night clubs should have a regular checkup. 6.3.3 Drug trafficking and other organized crimes Drugs and drug trafficking are a very thorny problem, often related to gambling activities; so they have to be mentioned here. As a matter of fact, if we could really have taken a control of ill-mental gambling, there would not have been a huge market for drugs. According to some specialists on teenager issues, teenagers who have tried some drugs are usually out of their initial curiosity for the “forbidden apple.” Most drug addicts are adults who have some serious mental health problems, including many desperate ill-mental gamblers. People can become obsessed (addicted) with gambling as well as with drugs. When these two are interlinked together, patients are more likely to be driven into despair. At present, the Social-work Bureau in Macao has made some 137


significant progresses in offering drug prevention services. If such services are expanded with inclusion of medical treatment for ill-mental gamblers, they will be perhaps more effective. It needs to be pointed out that the appraisal and evaluation of the types and the nature of different drugs must be done only by specialized institutions and experts. It is reported that some European and North American countries are beginning to regard marijuana as a mild stimulator and allow it to be sold openly, because they have acknowledged that marijuana does not bring much harm; on the other hand, they crackdown more forcefully dealers of ice drugs and of other very strong drugs. If specialists and professionals in Macao consider such a treatment and experience to be valuable and useful, we may try to do the same here. The collaboration between crime and pathological gambling is significant in the field of financial crimes, the strongest being fraud (37.7%), theft from the workplace (23.3%) and family (21%) as well as embezzlement (21.7%), with soft drug followed after them. 1 Meyer and Fabian add that is the result of a continuing process, for example, a delinquent will try to compensate for damages caused. 2 Through the data collected in a comprehensive research project on gamblers in self-help groups, they find that those commit in criminal acts gamble more in terms of frequency, intensity, and debts amounted. The delinquent interviewees also show a higher degree of dependency on gambling, psychological and social problems resulted from gambling and more frequent withdrawal-like symptoms. Analyzing their motivating and maintaining factors, gambling is a way to escape 1 Meyer, G., and Stadler, M. (2002), “Criminal Behavior Associated with Pathological Gambling”. In J. J. Marotta, J. A. Cornelius, and W. R. Eadington, The Downside: Problem and Pathological Gambling, Reno, NV: Institute for the Study of Gambling and Commercial Gaming Institute, U. of Nevada, Reno, pp.243-245. 2 Meyer, G., and Fabian, T. (1993), “Preventing Pathological Gambling Among Teenagers”. In W. R. Eadington, and J. A. Cornelius, Gambling Behavior and Problem Gambling, Reno, NV: Institute for the Study of Gambling and Commercial Gaming Institute, U. of Nevada, Reno, p.518.

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for the delinquent interviewees. By path analysis it is shown that there is a strong connection between emotional instability, pathological gambling, negligence to financial obligations and delinquency. 1 Based on a different set of data and a Lisrel analysis confirms the first study in terms of interrelatedness, but not necessarily the causal relations. 2 Finally, let us consider the issue related to underground societies. Mr. Stanly Ho once said, “Where there is a casino, there is an underground society”. The fundamental solution to problems related to underground societies is to improve the quality of supervision and management of justice and law institutions and to honor the integrity and honesty among law-enforcement officers and public servants. The history, whether of the past and the present or of the Western and the Chinese, shows that the underground society meddles with drug dealers in different walks of life and there have been always two primary solutions in dealing with them. One is a sudden and forceful crackdown, which is often very effective tentatively but it does not help get rid of the roots of the problem. The other is to reform the system whose rules and regulations are unreasonable and unfounded. Only in this way can people feel safe, secured and enjoy a peaceful life. As a result, the root for the swelling of the underground society can be completely eradicated. Such an elucidation focuses on the root of the problem, “getting to the bottom for the core”, thus securing the safety in the society. This should be the major approach to the problem of the underground society in Macao. 1 Meyer, G., and Fabian, T. (1993), “Pathological Gambling and Criminal Behavior”. In W. R. Eadington, and J. A. Cornelius, Gambling Behavior and Problem Gambling, Reno, NV: Institute for the Study of Gambling and Commercial Gaming Institute, U. of Nevada, Reno, pp.524-525. 2 Meyer, G., and Stadler, M. (2002), “Criminal Behavior Associated with Pathological Gambling”. In J. J. Marotta, J. A. Cornelius, and W. R. Eadington, The Downside: Problem and Pathological Gambling, Reno, NV: Institute for the Study of Gambling and Commercial Gaming Institute, U. of Nevada, Reno, p.253.

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This picture shows the students from Pei Zheng Middle School are loudly shouting slogans at the International Day of Drug Banning starting in June 24, 2006. However, propaganda is one thing, the reality is another. Some UM students wrote that it is easy for Macao youth to purchase drugs on street, it is even easier and cheaper for them to buy drugs in Zhuhai. （http://www.chinanews.com.cn/news/2006/ 2006-06-24/8/748581.shtml?）

Taking into account the current development, I dare to claim that it is not very difficult to get to the bottom of crime problems in Macao. As a small society, the total unemployed population is only about ten hundred thousand. If the economic “cake” in Macao continues to grow, the SAR Government has the ability to feed all of them for free. The dilemma, however, is the reality in the vicinities of Macao and particularly in some economically very poor areas. Due to the increase in immigrants, the number of non-regular or temporary residents in Macao rises and some criminals from mainland China will gradually become a gang, thus, forming a joined underground force with those from and in Macao and Hong Kong. Owning to the rapid divisions among different classes and between the rich and poor in Mainland China, the number of serious crimes committed continues to escalate. It has been therefore on the government agenda now to emphasize the collaboration among three law-enforcement departments in Guangdong, Macao and Hong Kong. In this respect, there have been some reports covered by newspapers, so it is not reiterated here.

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Chapter 7 Exploring Diversification in Gambling-Tourism Industry


This chapter clusters around various issues, many of which are beyond and yet closely related to the gambling industry in Macao. The main themes are about how to ensure the sustainability of the current development, avoid an over-dependence on a unilateral industry, and take measures against a sudden policy for legalized gambling in the vicinities of Macao. In our view, it is essential for the SAR Government to work out a strategic plan, explore innovative business dealings, and strengthen its ability to cope with risks and challenges.

7.1 How to Understand Comparative Advantages of the Gambling Industry In determining Macao’s economic standing, most people agree that an overall strategic plan for its development should be the one that makes it possible for the gambling industry to act as a “dragon head” and to grow simultaneously with the service industry and other businesses. Different people, however, hold different views on why the gambling-tourism industry in Macao is rendered such a leading status. Majority of the Macao people, including the Executive Edmund Ho, think that the strategy for Macao to develop gambling industry is based on historical tradition for hundred years, 141


and there is no superiority in other business sections. It should be a choice without alternative, not because Macao people are in love with gambling. 1 One explanation is that it has some comparative advantages and a stronger competitive ability. For example, it costs less to run casinos and yet provides better services in Macao than in other places. In this respect, I’d like to offer some personal explanations for readers to consider and criticize. 7.1.1 Monopoly advantages and comparative advantages Based on what I have observed, it is easier for people to understand the monopoly power of the gambling-tourism industry in Macao, but less convincing for them to accept the claim of its comparative advantages. The reason is that there is a policy of restricting legalized gambling in mainland China, Hong Kong and Taiwan, a reality that has helped strengthen the monopoly power of the gambling-tourism industry in Macao. If people want to gamble openly and legally, they have to go to Macao, which is what is called a regional monopoly and such a monopoly advantage is the main reason for the advantage Macao currently enjoys. Does Macao have a comparative cost advantage? The answer is positive because after all the gambling industry has been around for over 150 years and the accumulation of historical experience is an invisible asset. In Macao it is not difficult at all to find an experienced person to open a casino and manage its business. Such an advantage, however, should not be overly estimated. Consider the example of Sands Casino currently under construction. It has been recruiting employees since 2003 spring, and out of hundreds and thousands of 1 As one report has mentioned, the Chief Executive Edmund Ho pointed out in his Executive Report in 2001: “It’s not hard for us to discover that, Macao has being gradually created an industrial structure with gambling industry as the head of the dragon, service industry as the body, and coordinated with other industries.” Although it is still too unitary for such an industrial structure with gambling as its dragon head, it should be a situation of “having to do so” under such circumstance with no alternatives, or at least have no other options at this moment. China News Agency, Dec.24, 2001.

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applicants, many have only tried their luck because they do not meet its hiring criteria. This incident reveals that to meet the standards and requirements for working in modernized casinos, there is a shortage rather a surplus of human resources in Macao, a phenomenon that will be even more noticeable if three or five casinos of similar scales are opened. That is why various training classes are now seen full of life everywhere in the city. As for comparative advantages in other areas such as construction quality, humanity sceneries, transportation conditions and a series of services, in my opinion, Macao does not necessarily have any distinctive advantages over Hong Kong, Taiwan, Shenzhen and Zhuhai. Let us assume that someday these four cities suddenly give up the ban on gambling and legalize it, and that large casinos are jointly run by the Chinese and foreigners, then we have to consider a number of questions. For example, will people there build grander casinos? Will they bring in modern gaming facilities and management? And, will they train thousand and thousand of employees who will become multi-lingual and familiar with modern management and technology for the gambling industry? I do not see anything that will prevent them from doing all the above. The key issue is whether they would legally permit gambling. If the answer were “yes”, the taken-forgranted monopoly advantage Macao has enjoyed for years would be jeopardized. 7.1.2 A real threat from legal gambling in Macao’s vicinities Someone is overly confident, speaking with a firm tune, “Legal gambling in vicinities? It’s absolutely impossible!” Is that so? I am not sure about it myself and have no courage to make such a claim. I doubt that any other people would make sure of it. Someone else quotes the previous General Secretary, Jiang Zemin, that within all regions in China, legalized gambling is only permitted in Macao (main idea, not original quotation). It is interpreted as if it was some kind of a promise that Macao could rest easy without worrying about any possible changes. I personally feel what Jiang said does not have an ever-lasting impact unless it is written and included in China’s 143


constitution. The reason is simple. Did Mao and Deng, the two previous leaders, give some “highest instructions” and similar “oracular words”? With constant changes of the national development, they even modified their old statements and replaced them with new ones. After they passed away, their successors need to face new situations and solve new problems. This is what newspapers often refer to as “moving ahead in juxtaposition with times”. Still someone else claims that regardless of whoever is in charge, the Central Government will take care of the economic prosperity in Macao, and will not permit a legalized gambling in its vicinities. Otherwise Macao’s developmental opportunity would be destroyed, because it does not reflect and protect the advantage of the “one country with two systems” policy. I have, nevertheless, doubts about such a remark. It is true that the leaders of the Central Government are concerned about the economic advancement in Macao but there are surely many other ways of showing care and concern, from which emerge a number of research questions worth of a great discussion. For instance, is it the only way to maintain the monopoly power of the gambling industry in Macao? Is it beneficial or harmful to Macao to rely on outside forces for maintaining its monopoly power status? Suppose it will be a historical eventuality to make true the four modernizations in the gambling industry and legalized gambling will benefit more than harm the development in other areas in China, how could we restrain or even give up these potentially positive effects simply for the sake of one-place prosperity, that is, Macao’s? Furthermore, mainland China is so big and Macao is so small that it will take years for all those there wishing to gamble here in Macao to have their turns owning to Macao’s current limited capability of receiving tourists, a similar waiting experience which some local residents’ relatives have to go through for immigration purposes. At least gamblers from North- and Northeast-China will be likely to go gambling in South- and North Korea or in Southeast Asia, a real possibility that can be described as “nutritious water pouring into outsiders’ fields.” 144


In addition, any forms of monopoly, in general, do not benefit further advancement. During its initial debate on the allow- or disallowgambling in Macao, some people insisted that it was impossible to break up the monopoly; or the whole world would become a chaotic place, a situation that would not help maintain the stability and growth in Macao. Fortunately, the SAR Government held a vision for a long-term development and persisted in a steady open competition. Eventually, even Mr. Stanly Ho himself also supported for such a practice and showed a great confidence in a continued victory. The fact has proven now that an open competition is a wise policy, which has enlarged the “cake” and benefited people from all walks of life in Macao. If the similar reasoning is applied to the development in all parts of China, we should have no difficult realizing that is not only possible but also unavoidable to give up the ban on gambling in the surrounding areas. The only solution for us is to follow Mr. Stanly Ho, whose vision and courage can enable us to take measures against future so that Macao will not be seized with panic nor fall behind in times of changes.

7.2 Business Advantages and the Opportunity Cost We need to introduce the concept of opportunity cost so that we can have a clear idea of what conditions will be favorable or unfavorable for the business advancement in Macao. The so-called opportunity cost refers to what is paid, to be paid, and anything possibly to be paid indirectly in order to get a given product or service. An indirect price is so labeled in relevance to a direct one. For example, a public servant in Macao earns a monthly salary of 20000 yuan and his friends invite him to join a company as a partner for a general-manager position with an offer of 30000 yuan a month. This means a 50% increase in his salary. He happily accepts the new job and gives up his public-servant position. One year later, he realizes that his income does not increase but decreases because of the following reasons: 145


First, although he gets 20000 yuan a month as a public servant, he is paid 14 times a year, which makes up of 280000 yuan as his annual income. Moreover, he is entitled to a 25-day vacation with pay, equal to an additional income of nearly 20000 yuan. Besides, he is awarded over 1000 yuan a month as benefits. So, his actual annual total income is over 310000 yuan. Second, when working as a public servant, he has some free time during weekends writing articles for newspapers, from which he earns another 5000 yuan a month, and 60000 yuan a year. Thus, his total annual income is: 310000+60000=370000 yuan. When being a boss for himself, he no longer has time and energy to write anything. And third, although he makes 360000 yuan a year by working for himself, he has 100000 yuan bank loans, which costs him 5000 yuan a month for repaying the principal and interest, and 60000 yuan a year. Because the business is not good and does not make any profits, his actual annual income decreases: (370000-360000)+60000=70000 yuan, not to mention long hours of heavy and laborious work. In the end, a loud cry bursts from his voice: “I was deceived.” 1 The lesson drawn here is that this gentleman fails to notice many prices and risks, that is, the opportunity cost that he has to pay. 50 Years of the Macau Grand Prix. First run in October, 1954 as a club race for local motoring enthusiasts, the Macau Grand Prix has evolved into what many believe is the finest street circuit race meeting in the world. Here we look back at some of the highlights of the last 50 years.（http://www.macau.grandprix.gov. mo/mgpc/subpage.php?id=528&lang=en)

1 According to businessdictionary.com, the definition of opportunity cost is: “Profit, or value of something that must be given up to acquire or achieve something else.” The example quoted here is borrowed from Mr. Qin Xixing’s “opportunity cost” story appears in the Economy Column of Macao Information Express. We make use of this story for its vividness and clarification, for which we are very grateful.

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Now let us make use of the opportunity cost concept to consider a similar case of promoting the unilateral growth of the gambling industry in Macao. To begin with, the gambling industry as the only game in town results in something extraordinary, or unusual, out of the ordinary that while there is an economic growth, the society does not advance (i.e., the average income per person does not have a proper increase). Next, the current unilateral expansion of the gambling industry in Macao has not helped boost the number of people looking for work who have actually found jobs. On the one hand, it is a waste of resources to continue the support for the deprived and weak industries which rely on the government subsidies. On the other hand, such a support slows down the expected rapid change of economic reforms and the replacement of the old industries with the new ones. Finally, if the gambling industry does not grow along with education, arts and other cultural productions, the so-called “Expansion for Leisure, Holiday and Exhibition” will very likely become a lip-service or false piety, and a number of big prices will have to be paid for environment, social morale and the nurture and cultivation of the younger generation. In short, we will pay for a high opportunity cost for a long-term sustainable development. To put it another way, the rapid expansion of the unilateral gambling industry may sacrifice, as a price, a long-term sustainable development. For views of the Pearl River Delta by day or the city lights by night, nothing surpasses the Macau Tower. Having ascended to the Tower’s upper limits in high-speed glass-fronted lifts, an unforgettable vista awaits you, while a delicious buffet caters for all tastes at the 360° Café.（http:// www.macautower.com.mo/tch/tower/index. asp）

7.2.1 High risks for a unilateral industry High risks are also an opportunity cost. Before the arrival of a risk, it can be kept there unnoticed. But when a risk is about to come upon us, 147


the payment will be doubled. We know that any better established unilateral industry, in a relative sense, will face greater risks; and such risks will be doubled, if the industry depends greatly on an outside market (rather than the local one). Many current ups and downs of the economic development in Macao seem to suggest that whenever there is some slight hitch and glitch, there will be instability and uncertainty in its economy. To make the matters worse, the media coverage carries the news, often creating or extending nervousness and insecure feelings among the general public. In recent years, there have been several historical occurrences of such a nature in this region, including in Macao and Hong Kong. To name a few, the first one was before Macao’s handover to mainland China, the underground society and gangs constantly committed aggressive revenge and killings; the second was the Asian financial crisis, the third was the gossip and rumors about legalized gambling in Hong Kong and Taiwan as well as the ban on the betting of horse racing outside of Hong Kong, and the fourth one was the eruption of SARS. By analogy, we can conceive of some future factors that may bring about uncertainty and insecurity, such as: 1) an occurrence of new epidemics [World Health Organization（WHO）constantly reminds the world of such a real and unavoidable possibility]; 2) another financial crisis (as already foreseen by some people); 3) tensions between mainland China and Taiwan and the surrounding areas that are in a military state (This will happen sooner or later); 4) an increase or decrease in the value of RMB (a topic being frequently discussed and talked about); and 5) security problems in Macao and in other surrounding areas. Of these issues, the most urgent for, or threatening to, macao is the laws and possibility that may permit the establishment of modernized super casinos in Hong Kong, Taiwan, or even Guangdong and other places in mainland China. To be honest, we really do not like to picture such a possible reality. Yet, when we consider these issues as a research topic on sociology, how can we not think about or imagine the worse scenario? 148


Facing so many uncertainties, all students and readers, who care about the future of Macao and appreciate the fundamental ideas and beliefs in gambling sociology, must have more independent thinking but less blind optimism, and more sense of urgency but less triviality. In this way can they motivate themselves to study/work diligently and thus be able to offer or search for solutions to the problems faced by all of us, thus contributing to the long-term sustainability and prosperity in Macao. 7.2.2 Understand the nature of Macao’s industry position Edmund Ho, the Chief Administrator of the SAR Government in Macao, pointed out in his annual administrative report on finance for 2002, “In Macao, it can be easily noticed that the gambling-tourism industry is gradually taking on an economic configuration with itself being the ‘dragon head’ in charge of how to promote the service business in juxtaposition with other businesses and trades.” 1 This is an issue related to long-term interests for every resident in Macao, and we should take it seriously in order to better understand the industry position as mentioned above. At a seminar held at Macao Polytechnics Institute on July 18, 2005, Professor Xu Yamin made a speech full of clarity and vividness. He said, “Relatively speaking, we are now clear about the dragon-head position, but unclear about the positions of the dragon body and its tail, and even more so about how to put these three pieces together in order for them to function effectively as a whole unit as well as a separate entity. In respect with how to endorse this dragon and let it fly as early as possible and freely high up the sky, a sky where it can be cloudy, foggy, rainy and windy, we are still lack of a scientific analysis and operational planning.” 2 Well said, Professor Xu! In this chapter here, we wish to have some 1 Mr. Edmund Ho, “The Annual Report on the Finance of the SAR Administration for 2002”, November 20, 2001, p.18. 2 Professor Xu’s remarks cited are the author’s reminisce during a conference, and the author will be fully responsible for any potential errors.

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discussion on this issue, hoping that we may help come up with some solutions or strategies even if they may not be mature enough and acceptable to the general public now.

7.3 Turn Unilateral Advantage into Comprehensive One The so-called unilateral advantage refers to a unique pin-up among 100 businesses that operates with brilliant and dazzling independence. If we still take the dragon head as an example, we will see a dragon whose head is too big but whose body and tail are too small. Such an uneven body distribution does make it difficult, or if not entirely impossible, for different functions to be agreeable with one another. In other words, the harmony between and among different businesses and services that the SAR Government and Macao residents want to achieve will remain at most as their desire or something unachievable. If we are really serious about our goal, we should make every effort and consistent endeavor to turn it into a reality. Specifically, it is vital to introduce policies and strategies that are more detailed and explicit in order to make it possible to convert the above mentioned development strategy into a certainty. It is also essential to undertake a further and deep investigation on a number of related issues. For example, what is the relationship between and among the “dragon head”, the “main body” and the “other businesses?” For the dragon head itself, what is the relationship between the “gambling industry” and “tourism”? At the present, the advantage of the “dragon head industry” in Macao is clearly distinctive with the gambling industry taking a larger proportion than the tourist business. In comparison, other forms of tourism (leisure, holiday, sightseeing, etc.) are too undersized to be significant. In addition, what will be included in it, if the “service industry” acts as the main player (dragon body)? It seems that Macao has a little of bit of everything, comprising finance (banking, stock shares, insurance,etc), industrial logistics, conference and exhibitions, 150


Orlando Magic and Cleveland Cavaliers, although tired from a tight-scheduled trip, played hard and staged a good show of the NBA games Saturday in Macao in the last of this year’s NBA China Games series, coach Stan van Gundy said.（http://www. china.org.cn/spor ts/news/2007- 10/21/ content_1229081.htm）

transportation, commerce, wholesale and retail trade, agencies, consultation and so on. But none of them is strong enough to be competitive and many of them will be threatened for their existence if the market is fully opened. And what would happen to “other businesses,” that may consist of whatever does not belong to the “dragon head” and the “dragon body” like construction, real estate, clothing and toys, water, electricity, oil, gas and others that are associated with the well-beings and benefits for the general public? Many of these “dragontail” businesses are unfortunately losing vitality without a possibility for revitalization. Perhaps, it would be better for them to explore new ways for economic growth rather than to seek financial assistance simply for the sake of a mere survival and existence. 7.3.1 Definition and implication of the comprehensive advantage What is a comprehensive advantage? It implies that the dragon head must be large and full-sized; the dragon body and tail should also be grand and magnificent; and only such a dragon can dance and move with a presence that is majestically imposing. It is therefore necessary 151


for us to introduce the concept of “comprehensive advantage,” which consists of a variety of feasible and practical strategies for starting two or three enterprises, having a similar or equal strength. If one of them faces a possibility of being driven out of business, it can save itself by taking the advantages of other businesses and distributing risks so as to ensure the overall economy development to be steady and healthy. Some people have claimed that Macao adopts a policy of a freemarket economy and the government should not interfere in the existence and development of the business sector. What is more, it should not have initiated the so-called “business policy” — the planning economy. Such a talk or chitchat, if not naive, must have some motives. Everyone knows that since 1930s in the 20th century, the so-called “completely free competition” without any government involvement and intervention has long been out of the picture as a historical stage. It has now been the order of the day that in all nations the government interferes in economy (not to run it) by bringing in and implementing business policies. It is untrue that the Macao Government does not intervene in the local economy. In fact, it spends a huge sum of money promoting the economic development every year. It is not clear, however, whether it still needs to have some special arrangements and operational plans for a business policy outside of the gambling-tourism industry. 7.3.2 Search for dragon body and dragon tail of Macao’s economy How do we determine the status of a new economic growth in Macao? This is a question that will be answered differently by different people. From a gambling sociological perspective, we propose a new idea of “the gambling-tourism industry as the dragon head”, “the cultural production as the dragon body” and “other businesses as the dragon tail.” First of all, for the gambling-tourism industry acting as the dragon head, we do not need to elaborate it any further because the current policy illustrates clearly what it is like. The tourist sector out of this 152


combined industry, however, needs to be strengthened. We have many innovative propositions and suggestions on how to achieve such an improvement but every single item cannot be accomplished without referring to its preface, that is, culture. The Ruins of St. Paul’s refer to the facade of the Church of Mater Dei which was originally built in 1602-1640 and the ruins of St. Paul’s College, which stood adjacent to the Church, both destroyed by fire in 1835. As a whole, the old Church of Mater Dei, St. Paul’s College and Mount Fortress were all Jesuit constructions and formed what can be perceived as the Macao’s “acropolis”.

Here I would like to introduce the concept of Alternative tourism. It can be broadly defined as “forms of tourism consistent with natural, social, and community values” and which “allow both hosts and guests to enjoy positive and worthwhile interaction and shared experiences”, and is evolved from the disillusionment of “mass travel” and its derived problems. 1 Pearce (1995) criticizes the traditional dichotomy of “hard” and “soft” tourism,etc. Starting from the extant literature of tourism typologies, he synthesizes a set of variables to classify tourism, including alternative forms: context, facilities, location, developers/ownership, development processes, markets and marketing, and impacts. 2 Critics of alternative tourism, such as Butler (1995), believe that the failure of planning of tourism is based on the naive assumption 1 Smith, V. L., and Eadington, W. R. (1995), “The Emergence of Alternative Forms of Tourism”. In V. L. Smith, and W. R. Eadington (ed.), Tourism Alternatives: Potentials and Problems in the Development of Tourism, Philadelphia, PA: University of Pennsylvania Press, p.3. 2 Pearce, D. G. (1995), “Alternative Tourism: Concepts, Classifications, and Questions”. In V. L. Smith, and W. R. Eadington (ed.), Tourism Alternatives: Potentials and Problems in the Development of Tourism, Philadelphia, PA: University of Pennsylvania Press, pp.22-25.

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of human nature, among others. 1 Tourism, on the other hand, is undervalued with its dimensions (tourists, resource, economic and political). It is also undervalued in the way that it causes impact like most other industries, and is also extremely dynamic. The message here is: Mass tourism need not be uncontrolled, unplanned, short term, or unstable; and green tourism is not always and inevitably considerate, optimizing, controlled, planned, and under local control. To hope that it will be or may be the ideal scenario, but it is not always a realistic one. Even if it begins that way, if the tourism industry grows there is little if any evidence that it could always remain so. 2 Alternative tourism, Butler holds, can at best fulfill a number of roles: 3 to complet mass tourism by increasing attractions and authenticity; to serve the needs and desires of specific groups or categories of tourists; to supplement incomes of primarily rural dwellers of marginal areas, and to allow some tourism development in areas which cannot sustain major change because of environmental and/ or social capacity limitations. Reaching the decision of developing alternative tourism is more complicated than what the advocates believe, which needs to fulfill all or most of the relevant viewpoints. Unfortunately, the development seems to be unidirectional: small scale tourism can change to conventional tourism but it is unlikely to go vice versa. 1 Butler, R. (1995), “Alternative Tourism: The Thin Edge of the Wedge”. In V. L. Smith, and W. R. Eadington (ed.), Tourism Alternatives: Potentials and Problems in the Development of Tourism. Philadelphia, PA: University of Pennsylvania Press, pp.32-33. 2 Butler, R. (1995), “Alternative Tourism: The Thin Edge of the Wedge”. In V. L. Smith, and W. R. Eadington (ed.), Tourism Alternatives: Potentials and Problems in the Development of Tourism, Philadelphia, PA: University of Pennsylvania Press, p.35. 3 Butler, R. (1995), “Alternative Tourism: The Thin Edge of the Wedge”. In V. L. Smith, and W. R. Eadington (ed.), Tourism Alternatives: Potentials and Problems in the Development of Tourism, Philadelphia, PA: University of Pennsylvania Press, p.44.

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Furthermore, he raises the question of “appropriate for whom?” in which he introduces the imperialistic nature of promoting tourism in less developed countries. Alternative tourism, on the other hand, is disguised class prejudice. 1 De Kadt (1995) attempts to solve the problem by making reference to Alternative Development. Based his research on tourism from the host perspective, 2 he compares Alternative Development and Alternative Tourism. Then he attempts to expose the common normative line by joining the tourist-oriented authenticity and the host perspective by meaning, which is important in Alternative Development. He hopes that conventional tourism development would above all be led to take greater notice of resource use, scale and distributive and intergenerational justice, with the Less Developed Countries on his mind. With the ascent of Green parties in Europe, a new analytical tool was expected for sustainable policies. Finally he reminds us the importance of institutional building. Pigram first reviews what supports Alternative Tourism, that is, the recognition of three important values (option, existence, and bequest) based on uncertainty and irreversibility of development. Its principles stress that tourism should draw on the character of the countryside itself, bring conservation and recreation benefits rather than imposing an extra burden, and be in keeping with the landscape, and if possible, enhance it. 3 1 Butler, R. (1995), “Alternative Tourism: The Thin Edge of the Wedge”. In V. L. Smith, and W. R. Eadington (ed.), Tourism Alternatives: Potentials and Problems in the Development of Tourism, Philadelphia, PA: University of Pennsylvania Press, pp.39-40. 2 De Kadt, E. (1995), “Making the Alternative Sustainable: Lessons from Development for Tourism”. In V. L. Smith, and W. R. Eadington (ed.), Tourism Alternatives: Potentials and Problems in the Development of Tourism, Philadelphia, PA: University of Pennsylvania Press, p.51. 3 Pigram, J. J. (1995), “Alternative Tourism: Tourism and Sustainable Resource Management”. In V. L. Smith, and W. R. Eadington (ed.), Tourism Alternatives: Potentials and Problems in the Development of Tourism, Philadelphia, PA: University of Pennsylvania Press, p.80.

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He then identifies the difficulties of implementation, followed by contextualizing the effective policy. He emphasizes the importance of participation of local residents in planning, implementation, in searching for alternative forms of tourism, as well as alternatives to tourism. Balance is especially important in terms of the combination of grassroots and hierarchic inputs in planning, in addition to raising awareness during implementation. 1 This picture comes from The Bewitching Braid, perhaps the only movie that made by, and about Macao residents. It describes a love story between a Portuguese (or Macanese) young man and a Chinese girl with long tail. In real life in Macao there are many true stories like this, but have not been converted to influential art works yet.（http://www. macau.ctm.net/modailylog/ 20050413/index. htm[August 23,2005].Quoted from Prof. Hao Zhidong teaching outline of Macao History and Society, p.133.）

Lanfant and Graburn (1995) study alternative tourism from a symbolic viewpoint, in which a comparison to international tourism is made. 2 A few characteristics can be deduced: it is more economic than cultural domestic and national tourism, and this has become an agent of development since the 1960s, creating “delocalization” effect with the invasion of resorts. For developed nations tourism provides 1 Pigram, J. J. (1995), “Alternative Tourism: Tourism and Sustainable Resource Management”. In V. L. Smith, and W. R. Eadington (ed.), Tourism Alternatives: Potentials and Problems in the Development of Tourism, Philadelphia, PA: University of Pennsylvania Press, pp.86-87. 2 Lanfant, M-F., and Graburn, N. H. H (1995), “International Tourism Reconsidered: The Principle of the Alternative Tourism”. In V. L. Smith, and W. R. Eadington (ed.), Tourism Alternatives: Potentials and Problems in the Development of Tourism, Philadelphia, PA: University of Pennsylvania Press, p. 93.

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job opportunities, offsets foreign debts, and provides multiplier effect. What international tourism means for recipients is mixed: it means access to international planning, technology, and finance, entering the world economy and approaching world modernity. On the other hand, states and communities involved have no say on the decisions made inside one company for whole regions and countries. The development theory depicts the possibility of a country’s decline if not taking the dose of tourism, with the former promoted a touristy producty. On the other hand, development in tourism desecrates culture in different forms, thus forming the “dilemma of tourism” from which alternative tourism gains its strength. 1 In response to the criticisms on tourism since the 1960s international organizations made a reversal from the stance in the beginning. What they find, however, is that even socio-cultural variables are added to the economic accounts, it still serves the economic purposes. Furthermore, such a theory de-contextualizes the host society. The second one is the dragon tail, a combination of a number of businesses and trades, which we’d like to explain before we turn to the discussion on the dragon body. We do not support the notion that Macao’s economy should be small but comprehensive. Given the fact that a close collaboration between nations and within the Pearl River Delta Region is now becoming increasingly vital, a continued practice aiming for a high-small but all-inclusive business is not only costly but also ineffective, and will result in a loss of its existing strength instead of gaining any competitive advantages. Businesses that are fading, cause pollution, occupy too much land and make poisonous and harmful products should be encouraged to close down, or turn to other possibilities; or at least they should be no longer provided with assistance and support. Even the construction business, except some 1 Lanfant, M-F., and Graburn, N. H. H (1995), “International Tourism Reconsidered: The Principle of the Alternative Tourism”. In V. L. Smith, and W. R. Eadington (ed.), Tourism Alternatives: Potentials and Problems in the Development of Tourism, Philadelphia, PA: University of Pennsylvania Press, p.93.

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small ones doing repairs and maintenance, should not be encouraged for further development. They would be probable driven out of business by large-scale enterprises which have been recruiting employees nationally and internationally, a trend that continues to be so for the years to come. What should be done then with the surplus labor and production facilities? We suggest they should be combined into a logistics department that helps improve the base equipment and promote cultural productions. To begin with, a great improvement should be made in the areas of transportation, environment (make it green, or greener), water quality and other projects on the biological environment. Hundreds and thousands of employees will be required to clean up garbage, repair roads, level out beaches, do away with dirty water, beautify streets and the environment, plant trees, flowers and even out the green grassland. The best solution for people without technological or specialized skills is “to make a living by working instead of living on welfare.” It is also necessary to set up some gardening companies of small or middle sizes responsible for breading sprouts and flowers, cleaning, doing interior and exterior decorations and so on. Even if such a small enterprise is not highly specialized and technological, it requires employees to have certain knowledge and skills in order for it to become modernized. And the third refers to the cultural production, the dragon body. In the United States, the open and expansive cultural production is ranked as the number one or two in the business community, whose total sales are often bigger than hi-tech sales (These include motion pictures, TV programs, dancing, sports, sales of CDs, recordings, conference, exhibitions, the news press, publications, the internet and advertisement). 1 Owning to the business position and city locality in Macao, the expansion of tertiary industry and the development of 1 Consider as an example, one pair of Nike, the world-famous sports shoes, made in China (material goods) is worth one dollar (US); but America will charge five dollars (US) in the name of being a patent owner (cultural goods).

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tourism should be advanced concurrently with the cultural enterprise, whose maturity and growth can help Macao become distinguished world widely, hence promoting contact with outsiders and attracting those who are not interested in gambling still wish to visit Macao as sightseers and vacationers. Without doubt, the cultural business needs culturally talented people, and this poses an issue of human resources development and training. In this respect, we offer two solutions: training local people and bringing in talented people from abroad. Essential preparations should be under way without any further delay in order to create an atmosphere for building colleges or institutes of culture and arts in Macao, or at least a department at the University of Macau. In this way, local residents and students can have easy access to training, which will enable them to become highly specialized talents as artists in performance, creation and figure, history of arts, appraisal of cultural products and antiques, design of arts, films, operas, news press and publications, the internet and the like. At the initial stage of setting up such an institution, talents can be recruited from other places like mainland China, Hong Kong, and foreign countries. On the one hand, cultural and artistic activities in Macao can be advanced to a higher level and standing. On the other hand, such a training should be started among students in middle schools with a further expansion in high schools in order to have a large pool of potential candidates to be chosen for a focused training as either undergraduate or graduate students at a university level. Only in this way will a methodical and systematic training be offered to those who have a real potential to become highly artistic talents with a distinctive representation of Macao. In essence, there is a great difference between the plan for training artists grounded on the local culture and that of sending young people abroad for training after which the trainees will return to Macao and serve the people here. As it is understood, unlike sciences and technology which do not have regional and national boundaries, cultural arts originate from social life and they are closely connected with almost everything local. It will be therefore almost impossible to 159


create unique and timeless arts if they are produced in separation from a culture associated with real-life practice or reality; instead, they must bear certain foreign blotch and marks, carbon-copied, stiff and lack of the liveliness embedded in the local life. It should be pointed out that in today’s world, everything can be boasted as global except culture and arts which cannot be made blind followers duplicating other cultures. The reason is quite simple and straightforward that the fundamental nature of the world culture lies exactly in its multi-colored richness and various forms and shapes. The more national characteristic of a cultural product is, the more popular it is, and it will be appreciated and loved by people throughout the world. Thus, it is absolutely essential to have locally trained talents who play an important role in improving the cultural quality in Macao’s tourist industry. 7.3.3 Favorable conditions for developing the cultural production In Macao, there are perhaps hardly any people who would oppose the idea of promoting a cultural enterprise, which, as a smokeless business, adds high values and generates great profits. Nevertheless, they have an open doubt about the feasibility of such an idea. Many of my friends have argued with me that as a small city with a small population, Macao has a limited market and even more so when it comes to human talents and they wonder what kind of cultural businesses can be explored and developed here. To answer this question, let us consider what are the favorable conditions for developing cultural production before we bring to a close in the final section of this chapter. The first favorable condition refers to a historical advantage. Macao, a city with a history of over 400 years, is “located” in the middle ground joining China with foreign countries and resulting in cultural richness. This uniqueness cannot be matched by many other cities in mainland China. If we explore and create this highlighted theme of a cultural combination ingrained in concordance and conflict, we will have so many rather than so little cultural products to share with the rest of the world. 160


The second one is a locality advantage. Although Macao is a smallbullet city near the sea, it has a celebrated status in China and in the world as well because of an important role it once played in the Chinese history for several times. The city has now enjoyed a “one country with two systems” policy since its handover to China, and many things that cannot be done in mainland China are made possible and real in Macao, including the protection of the capitalist system and the legalized gambling industry. Such an advantage is, without doubt, a great plus point in promoting the cultural business. The third points to a policy advantage. The cultural production plausibly stands for something about culture, but in reality it is something more about policy and ideology. In mainland China today, there are many talented people and over 100000 returning oversea Chinese students, who should be encouraged to come to Macao and start a business here without an unnecessary scrutiny and permission by institutions whose main interests are in ideological matters. The cultural products promoted and sold to the rest of the world should bear trade names of both mainland China and Macao. If the SAR Government is to offer more favorable policies in residence, license, land, labor, taxation, loans and so on, a rapid growth can be assured in the cultural production. The last one means a funding advantage. In the foreseen future, there will be an increase in the number of people who will come to Macao as consumers (Yet it is likely that Macao may not have the ability to handle such a possible reality). This should be an indication of a healthy increase in generating taxes from gambling and of the government having more financial power, an important drive for pushing forward the cultural development. For instance, before the film industry and TV production open up a market, initial investments usually require a larger amount of money so the government should provide them with necessary and appropriate financial assistance. The cultural production is however not something about welfare and the government should not render it financial assistance over a long period of time without expecting to collect taxes from it. Otherwise, 161


such an assistance would become to help defective products that would have neither a market nor future. Sponsorship should be offered to projects and products that are of a high standard and quality and have a bright market prospective. Thus, a greater part of funding assistantship should invite tenders and the accepted bids will provide loans with low or no interest which should be returned. Some art products meet a high standard and yet unfortunately have a small market, which should be rewarded through an open competition and review. The public can be invited and encouraged, free of charge, to watch and appreciate a limited number of fine art products. At the present while the government enjoys a more healthy financial revenue, it should spend more money for stable businesses, help fading ones, get rid of the old and promote the new. In this way, the social protection system will be strengthened, the environment will be improved, the 12-year compulsory education will be endorsed, a new increase of the cultural business will be made possible, the risk of running a unilateral business will be reduced, the economic cake in Macao will be made to grow bigger and better. As a result, a healthy development will be maintained. In the future, if there are some changes in places outside of Macao, or even if gambling is legally permitted in its vicinities, and the number of gamblers coming to Macao reduces, Macao’s established cultural business will continue to be cultivated and to grow so that the Government will be able to maintain the collection of taxes and an employment rate at a satisfactory level. More importantly, during the course of its overall municipal development, Macao will have the capability of avoiding ups and downs, and will not overly rely on gamblers from other places and to let outside forces dictate the economic growth. We feel that some debate on Macao’s business and commerce has not yet gone beyond a historical restriction and still tends to recycle the issues about industrial production and materials goods. Unfortunately, there is not much hope for Macao to focus on such an industry. Even its hi-tech does not have any competitive advantages. But there is a great 162


potential in the cultural business whose profit will be much higher than that generated from material goods. The twenty-first century is an era in which cultural products are taking the lead, and cultural products have been replacing the competitiveness of material goods. It is a fundamental question we will have to face of how to convert the forthcoming advantages in Macao’s cultural business into a factual reality.

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Chapter 8 Controversy of the Opening Policy in Macao’s Gambling Industry

The over-speed development of gambling industry in Macao with double digits in recent years has undoubtedly created splendid atmosphere in such a mini city, as well as triggered off serious unbalances with socio-economic and even political problems at the same time. Different people have different impressions and evaluations on how to assess the positive vs. negative consequences of Macao SAR’s open policy of liberalization of gambling monopoly, especially on “American’s invasion” into Macao’s casino business. Some highly appreciate the open policy and the achievements in economic growth, others emphasize more on negative consequences such as inflation, labor shortage, moral and environmental degradation, etc. Few people even say that, behind economic investment in Macao, there is political motivation backed up by US. That is to use its economic superpower for further subversion and aggression to Mainland China. Is there any phenomenon of “neocolonialism” or “new imperialism”? Why there is a strong and on growing anti-American sentiment among some local residents and business persons? Is anybody deliberately stirring up narrow-minded nationalism or patriotism in attempt to diverting people’s attention on the failure of social, economic, and political reforms? This chapter tries to answer those questions. 164


8.1 How to View Foreign Investment in Macao In May of 2007, I attended a TV program with another Macao commentator. He is one of the advocates who are in high alert on American’s political motivation. His edited journal has published a cover story entitled “What Venetian has Brought About?” It says: The two American casinos are mainly targeted mainland Chinese. It is very clear in their minds and they have prepared well for dealing with these customers. For those gamblers coming from China, especially the VIP group with sufficient capitals, the American casinos could provide with satisfactory services. They could collect various data from those VIPs in excuse of providing with all kinds of service to meet with their demands…. They will seize this group of people in their hands. They are either rich or important with great influences, occupying high positions in Chinese political and economic arena, and even can decide the future direction for China’s political and economic policies. For such an important social group, if they have been controlled in the hands of Americans, where China’s political and economic security is?

1

In regarding to the above statement, we may ask many questions. Such as, how big this VIP group actually is? What percentage they should be counted for in the whole group of Chinese political and economic leaders, and/or potential leaders? Would they be actually controlled and manipulated by American casinos, economically and even politically? Although some of them might eventually become problem gamblers, and even criminals, as have happened before, what that will do with America’s China 1 Macau Monthly, No.128, September 2007, pp.9-10.

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policy? What economic connections and political linkage between American casinos in Macao and the White House, Capitol Hill, and CIA’s China policy making processes in Washington DC? Etc. Let’s forget all the logic questions we may ask, just focus on the rational, or irrational, of the above quoted article and many similar notions that we often hear from local officials and residents. First of all, opening policy is a historical progress or a mistake? We must remember that opening gambling for competition is a policy decided by the SAR government in its early stage of establishment, with the full support of consensus among Macao residents, as well as the approval and backing up by Beijing central authority. Is that policy wrong? Secondly, could Macao possibly be open to other foreign capitals, but exclude US capital only? According to WTO principles, opening for competition means to open the door indiscriminately to all casino business in different countries, including those from Las Vegas. In addition to that, if the SAR government policy to keep gambling as Macao’s dragon head industry, there is nothing wrong to make Macao as the world’s new capital of gambling, or as Las Vegas in Asia, because Las Vegas has been the leading gambling city for decades, and its management experience has being copied to other casinos world widely. This picture shows how Las Vegas has become a prosperous tourist city which originally mushroomed up from the west desert in State of Nevada. However, many countries tried to copy the Las Vegas model, but most of them failed. Whether Las Vegas is, or is not, a good model, and if yes, how to copy it to Macao according to the specific local situation, still need us to do more research.（http://news.tom.com/1003/3295/2 005518-2141389.html）

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Chapter 8 Controversy of the Opening Policy in Macao’s Gambling Industry Table 8-1 1996-2007 Macao Economic Development Year

GDP (Fixed Price

GDP Growth

Per Capita

Million MOP)

Rate (%)

DGP (USD)

Median Wage Unemployment (MOP)

Rate (%)

1996

34752

-0.5

17600

4925

4.3

1997

34710

-0.3

16796

5240

3.2

1998

52580

-4.6

15403

5063

4.6

1999

51028

-3.0

14351

4920

6.3

2000

53385

4.6

14994

4822

6.8

2001

54560

2.2

14298

4655

6.4

2002

60032

10.0

15355

4672

6.3

2003

69410

15.6

17782

4801

6.0

2004

80282

28.3

22634

5165

4.8

2005

85629

6.7

24369

5765

4.1

2006

115266

17.0

28853

7600

3.8

2007

153608

27.3

36357

7925

3.1

Sources: Macao Statistics Bureau, quoted from Hao Yufan: “The Outlet of Macao’s Economic Diversification”, Macao Daily News, Thu, June 26, 2008.

Table 8-2 Economic Comparison Between Hong Kong & Macao (1999-2007) Year 1999

GDP Growth Rate (%)

Per Capita GDP (USD)

Unemployment Rate

Macao

HK

Macao

HK

Macao

HK

-3.0

─

14351

25126

6.3

6.2

2000

4.6

10.2

14994

25580

6.8

4.9

2001

2.2

0.5

14298

25418

6.4

5.1

2002

10.0

1.9

15355

24452

6.3

7.3

2003

15.6

3.2

17782

24124

6.0

7.9

2004

28.3

8.1

22634

24923

4.8

6.8

2005

6.7

7.1

24369

26114

4.1

5.6

2006

17.0

7.0

28853

28178

3.8

4.8

2007

27.3

6.3

36357

29800

3.1

4.0

Sources: Hong Kong & Macao Statistics Yearbook, quoted from Hao Yufan:“The Outlet of Macao’s Economic Diversification”, Macao Daily News, Thu, June 26, 2008.

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The Sociology of Gambling in China Table 8-3 Macao Gambling Taxation and Employment (2002-2007) Unit: MOP Million Year 2002 2003 2004 2005 2006 2007

Total

Gambling

Gambling Tax in

Gambling Employment

Taxation

Taxation

Total Revenue (%)

in Total Employment (%)

10206 13260 18159 20438 25135 40694

7765 10579 15236 17318 20600 30948

76.0 79.7 83.9 84.7 78.7 75.5

─ ─ 9.7 11.0 11.3 12.4

Sources: Macao Statistics Yearbook, quoted from Hao Yufan:“The Outlet of Macao’s Economic Diversification”, Macao Daily News, Thu, June 26, 2008.

Thirdly, nobody (including the author of the above quoted article) dares to deny the great progress has been achieved in recent years since the open policy started. The total size of the cake is growing rapidly with double-digit annual ratio; unemployment ratio has decreased to less than 3%; average salary and household income level have also increased dramatically; government revenue and financial reserve have increased by many times. Macao’s per capita GDP has exceeded Hong Kong to be one of the highest nations/regions in Asia. All these above mentioned achievements have been dreamed by Macao people for decades and centuries. They should be highly appreciated by both the SAR government and Macao people alike. But many Macao residents are not happy, at least not that happy as the government has expected them to be. Why? Where are the true reasons behind Macao people’ s unhappiness? Is there anything to do with the American investment in Macao casino business? Do Macao people really hate Sands and Venetian as the author described in Macau Monthly?

8.2 Is There Any Evidence for Political Plot? Don’t think the article published in Macau Monthly is only one single case that is only representing a handful of narrow-minded nationalists in Macao and China. There is quite a large market in peddling and promoting similar ideas. In late 2006 and early 2007, there were several 168


Hong Kong and Macao media have reported the potential American threat to Macao and China’s economic security and political independence. According to some report, it has even attracted enough attention of Beijing, and the center has dispatched specialists to investigate in Macao. 1 We have so far not seen any official conclusion on this issue yet, except for a very brief, and even somehow self-contradictory, statement in President Hu Jintao’s report to the recently concluded 17th Party congress in Beijing. It says, “(We) actively support Hong Kong and Macao to develop their foreign relations, (but) definitely oppose foreign powers to get involved into Hong Kong and Macao’s affairs ( 积极支持香港、澳门开展对外交往，坚决反对外部势力干预香港、澳门事务。)” 2. Hu’s statement makes some Macao scholars to believe that the Beijing center is also in favor of above quoted nationalist points of view 3. Is it true? Or, is it just another misunderstanding? Having this question in my mind, I joined a Macao delegation in May of 2007 to visit several leading institutions in charge of Hong Kong, Macao and Taiwan affairs in Beijing. According to my own private conversation with some leading scholars and officials, their views on American investment in Macao casino industry are quite different from those narrow-minded nationalists. Their opinions can be summarized into the following 4 major categories. 1 Please see Ji Shuoming, “American Power Mushrooms in Macao”, Asia Weekly, Vol.19, No.46, Nov.13, 2005, and other related reports in Hong Kong, Macao, and Taiwan media. It was said that these reports have successively roused attention in the Center; therefore we see the tightening up of the free traveling for mainland Chinese, and also the speech made by Hu Jintao on the Party Congress. It seems to me, however, these above mentioned analysis are too subjective, do not match to the impression I’ve received. 2 See: http://cpc.people.com.cn/GB/64093/67507/6429854.html. 3 For instance, I asked one professor from another Macao university of his opinion on the issue of Macao’s nationalism. He said that he personally does not agree with it, but some local politicians have successfully persuaded the central leaders to believe the so-called political motivation behind American investment in Macao casinos. And, according to him, President Hu Jintao’s recent statement is one of the evidences to show their success.

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The Sociology of Gambling in China Chinese Vice President Zeng Qinghong praised the governments of Hong Kong and Macao and the business circles for their efforts in promoting local economic development. “I wish the Macao SAR government to make further efforts for Macao’s long-term development,” he said when meeting with Edmund Ho Hau Wah, chief executive of the Macao SAR also in Boao on Friday.（http://news. sina.com.cn/o/2006-04-22/17108764998s. shtml）

(1) On the one hand, foreign investments, no matter in Macao or in China, always have some by-products. We have no way to exclude all those individual persons, or organizations, which may have hostility toward China. We believe that China has enough experience to deal with them. Our attitude toward this issue is that, firstly not afraid of it; secondly to keep alert of it; and thirdly to rely on legal means to deal with it, if something happens. (2) On the other hand, however, according to the data in our hands, there is not enough evidences to show any black-hands in behind of the American casinos. The competition among casinos in Macao is mainly competition over economic interests, between old and new management models. As long as there is competition, there must be losing and winning, failure and winner. It’s no need for pan-politicization. It’s impossible for the center to interfere politically for protecting or supporting either side. (3) Our attention should be focused on whether foreign capitals, including American capitals, are doing their business legally by applying all related domestic and international regulations. We believe that Macao SAR government has the capacity to identify and handle those issues. As principle, openning policy is encouraging and protecting all foreign investments to do their business legally and ethically. If there are any economic crimes and other illegal activities have happened, we 170


should certainly use legal means to prevent and trial without any mercy or hesitation. This principle is not only applicable to mainland China, but also applicable to Hong Kong and Macao. The only difference is the “one country, two systems” there. If something not related to national defense or diplomatic relations with foreign countries, the two SAR governments could handle them with full authorization; the Central government will not interfere at all. 1

Walking along the Nam Van Lake promenade, you cannot help but notice an attractive two-storey Portuguese mansion facing the shore. This beautifully conserved building, built in 1849, is the Macau SAR Government Headquarters.（http://www. gov.mo/egi/Portal/rkw/public/view/showcomp.jsp?id=InfoShowTemp&isev=1&docid=c 373e914b6c08e788f7b69dd49421c35）

I wish it won’t take too long for us to see more detail explanations on what Hu Jintao really means in his brief statement that “support Hong Kong and Macao to develop their foreign relations, (but) oppose foreign 1 We should mention Banco Delta Asia incident here. This issue has related to geopolitics, many of which have not been discovered yet, therefore, I am not trying to comment it thoroughly. However, I feel very sympathetic to Mr. Au Chung Kit, the owner of the bank. He is probably being played as a bargaining chip or scapegoat between the American and Chinese politicians. It is confusing. I support Mr. Au to seek for justice by lawsuit and ask for compensation from related nations. See online journal Japan Focus, June 9, 2007, and Magdiction, a Macao local journal in Chinese, No.1, September 2007, pp.32-37.

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powers to get involved into Hong Kong and Macao’s affairs”. Before that comes out, let me try to give my own understanding and analysis. Based on my impression and understanding of the Beijing scholars and officials, I think that the so-called “foreign powers” and “Hong Kong and Macao’s affairs” can only mean foreign organizations to infiltrate into Hong Kong and Macao by illegal ways and they undertake intelligent or espionage activities which aim to damage or subvert Chinese sovereignty. It could not, and does not, mean any normal and legitimized social, cultural, and economic activities, including religious, communicative, educational, and other activities justified by UN conventions and other freedom and human rights regulations. If there is no clear demarcation between what is legal and what is illegal, there will be numerous confusions and negative consequences for people to follow it. For instance, if some people in Hong Kong and Macao to explain Hu’s notion randomly by their will for their interests, to inflate it unlimitedly, that will definitely sacrifice the “one country, two systems” policy, and eventually sacrifice the strategy of peaceful unification with Taiwan. 1

8.3 Going Forward or Backward? Now let’s shift our focus of analysis on the dissatisfaction of Macao residents. Why they are not happy with the rapid economic growth? During the two parades and demonstrations in May 1 and October 1, 2007, we have seen many posters and slogans that have never shown before since the sovereignty was handed over to China. Among all of them, governmental corruption, social inequality, environmental 1 This issue is also related to Chinese regulations, or lack of regulations, on defining legal versus illegal activities in handling cases of freedom of expression and freedom of religious believe. Just like “strategic vagueness” in America’s China policy in dealing with military actions in Taiwan Strait, that enables more rooms for maneuvering, the vagueness in defining legitimacy versus illegitimacy in Chinese foreign affairs may also provide convenience to Beijing leaders in dealing with their political oppositionists.

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degradation, decrease in quality of life and inflation are the most popular issues being targeted by the demonstrators.

October 1, 2007, 5 to 6 thousands of Macao residents went to street for demonstrations in against illegal migrant workers and government corruption and the new traffic law that made people more difficult for parking and transportation. One slogan says: “Clean administration is dead”.（http:// w w w. m a c a u m o n t h l y. n e t / n e w s _ v i e w. asp?newsid=3382）

Instead of saying that these problems are created by Macao’s open policy, I would rather say that they are in fact created by the imbalance between too rapid open policy in casino business and the lack of social and political reforms.

Macau police fired at least five shots into the air Tuesday in one of the most violent rallies seen in the former Portuguese enclave since the handover in 1999, witnesses said. A labor demonstration demanding tougher laws against illegal workers entering Macau erupted into a series of violent scuffles.（http:// www.zonaeuropa.com/20070502_1.htm）

Even we totally agree with the pan-politicalization, what can we do to solve the current social problems in Macao? Shall we drive the American investors out of Macao, confiscate Sands and Venetian from its owners (or buy them out as some scholars suggested) and resume the previous one family monopoly in casino business? Political economy tells us that any monopoly will definitely lead toward decadent and stagnation. Only regulated competition can bring about better services 173


and lower prices. This rule is not only limited to economic affairs, but equally applicable to social and political affairs. It seems to me, any normal person will not suggest Macao government to do that. The only way out for solving Macao’s problems is to speed up and deepen the long delayed social political reforms, including reforming its legal/political systems in handling with land auction, social welfare, resource allocation, project supervision, governmental procurement, urban planning, zoning and coding, etc. In one word, an overall socio-political reform and system restructuring in Macao is inevitable, if Macao government and the center in Beijing want to avoid further deepening social crisis in the realization of onestate two-system policy. Is Macao ready to take the risk for overall reforms and deepening open policy? I think so. At least on the residents’ side, we see a rapid growth of citizen’s consciousness in recent years. They want their voices can be heard by Edmund Ho and the center in Beijing. They are very anxious to see new government officials and policies, wishing Beijing will not let them to be disappointed. Under these circumstances, I don’t see any political threat coming from the American capitals invested in Macao’s casino industry. It seems to me, the worry expressed by some scholars is groundless, because of the following reasons. (1) Since the sovereignty was handed over to China, Macao’s authority in national defense and foreign affairs is hold in the hands of Beijing, let alone the armed forces of PLA stationed here. Even in the 400 years of previous history, when Macao was fully colonized by the Portuguese, its political impact to mainland China was also highly limited. Now, after the handover, there are only several casinos, even totally monopolized Macao’s gambling business, they are merely some companies for gambling and entertainment, I don’t believe they have any ambitions and abilities to agitate military coup, or to subvert the SAR government, let alone to plot any social chaos in mainland China. (2) Don’t underestimate the political consciousness and patriotic stands of the great majority of Macao population. They are not that 174


naive and stupid as described by the journal article saying that, they would be easily mobilized by their boss to take sit-in strike at the door of the SAR government, simply because their boss will pay them money to do so 1. I don’t believe Macao residents are that lack of analysis and judgment. By reviewing Macao’s history, the reality was just on the contrary. There were many people with lofty ideals, poor but patriotic. In contrast, there were also many heartless business owners and corrupted officials, such as Au Men Long, that could sell out whatever in their hands in exchange for money, including sell out the sovereignty of China and Macao. 2 (3) There are other business owners in Macao who are pretty optimistic on the American investment in Macao gambling business. One of them is Mr. Chen Zhijie, CEO of Nanguang Group Inc. that is one of the oldest and biggest Chinese investment enterprises in Macao. This company has played important roles during the December Third Movement and the later hand-over processes. 3 He says: 1 See “What Venetian has Brought About?” Macau Monthly, No.128, September 2007, p.10. 2 There are too may discussions on “patriotism” and “national betrayal” in Chinese literature. One point of view is that, only those who have powers and influences can be called “national betrayal”, because they have access to national interests that can make deals for selling them out. For regular people and intellectuals who own nothing, even they want to betrayal their nation, they have nothing to sell out. For those powerful and influential persons who are waving flags of “patriotism”, their real aim is to gain benefits, not really contribute to their country by sacrificing own families and lives. If he can make money by “loving his nation”, he will be “patriotic”. If he can make money by selling out his nation, he will be “national betrayal”. It’s no harm for us to call this kind of “patriotism” as “patriotism of national betrayal”. 3 “The December Third” Movement was also called the Cultural Revolution in Macao which happened in Dec.3, 1966. A local school had dispute with the Portuguese regime on a small construction project. Because of the bloody crackdown by the Portuguese regime, the dispute had eventually developed into huge mass movement protesting the Portuguese regime. The whole event had been terminated with the victory of the Chinese organizations and the surrender of the Portuguese. Because of the close relationship between this campaign and the CR in mainland China, many people involved in this movement don’t want to talk it now.

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The Sociology of Gambling in China Foreign investment has developed rapidly in Macao. It has triggered off some problems, such as polarization between rich and poor, housing shortage (for wage workers), traffic jams, and etc., and these problems have attracted people’s attention. However, we cannot deny the accomplishment has been achieved by foreign investment…. Although we have bottlenecks in current stage, they are problems that not hard to resolve. As long as the (SAR) government can make correct policies in resource redistribution, the future is pretty optimistic…. There is no need to worry about economic development (in Macao), on contrast, the biggest issue is how to reallocate human resources…. Macao has to rely on those several foreign investments, especially their management and worldwide networks, and this makes Macao to ride on the express train of economic development. We have to be used to the new current of development, cannot still cherish the memory of the previous little peaceful town any more.

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The Association of the eight panoramas of Macao selected landscape that merges the classified area constituted by the Taipa House Museum, the carom Church, the former Carom Library and the two little gardens as one of the eight views of Macao.（http:// housesmuseum.iacm.gov.mo/main_e.htm）

8.4 Some Policy Suggestions Where Macao’s reform should look forward? Where it should start from? Here I try to provide with some possible starting points. (1) To have a conference of overall assessment of Macao’s reform and open policy. It’s better to invite all related social groups to participate, including scholars from China, Hong Kong. What Macao 1 See the cover story of “Phoenix Information News”, Nov.30, 2007.

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needs is different voices, including harsh criticism and rational constructive proposals, not just one voice of admiration as Macao used to have. (2) To speed up legislation to stipulate new laws, or revise old laws, in regulating land use and auction, labor rights and condition, immigration and foreign labor importation, urban planning and zoning, social security and welfare, responsible gambling, official’s responsibility and accountability, prostitution and pornography, etc. Legislation of new laws is one thing, but law enforcement is another. If there is no adequate ways and means for law enforcement, it’s better to have no law at all. (3) Beijing should share some responsibility for the increasingly grow of social conflict and discontent in Macao. Without certain degree of supervision and direction from higher authorities, Macao residents no longer trust that the SAR government under Edmund Ho that could do a good job in governing Macao for its last two years of administration. Especially, after the shock of Au Men Long corruption trial, the legitimacy and morale of Edmund Ho’s Administration has been greatly minimized, therefore might not have the ambition and capability to manage a reasonable and rational power transformation to the next administration as Beijing and Macao residents have hopefully expected. (4) To improve the capability of SAR Government to deal with social instability. Within the two policies of reform and opening, the key issue is to keep everything in opening, or put it in other words: to have a sunshine policy. That is to say that transparence in policy making and carrying process is very important to maintain a social harmony by holding people together. Does it mean the same thing that people is the fundamental and establishing and carrying out policies for the interest of the people? Do we need to worry about in seeking for specific route and means in reform, if we can keep the spirit of opening policy, and breaking up narrow interests from the small circle of individuals and close friends? In short, the problems we are facing are not complicate, or 177


too hard to solve. We don’t need to be panic stricken. The current administration of Macao SAR government should be confident of keeping on the policy of reform and opening by strengthening its capability in dealing with crisis and problems, try its best to do a good job on its last duty, and work for the formation of the next administration.

8.5 Taking the People as Our Fundamental , Returning to Common Sense Several Macao labor organizations are preparing for another demonstration on Dec.20, 2007, the 8th Year anniversary of Macao’s handover to China. They are going to raise many issues as their slogans. Among those dozen slogans, we don’t see any one targeting American casinos or other foreign investment. All the slogans are targeting the SAR domestic policies related to socio-political reforms, or lack of reforms. 1 Those who are organizing the demonstration are mainly the grassroots labor unions. What they are trying to do is to push the government to carry on its long promised social-economic programs for social justice, not to act against the historical tendency and bring back Macao into its old days of conservatism. 2 It is well known that monopoly leads corruption and stagnation, and only competition can bring about price going down, service going up, and quality improvement. No matter Marxist-Leninist description or the market principles from ancient to modern times, from China to abroad, have all proved it to be the unchangeable truth, but there are still somebody that do not listen and do not hear. They still take delight in talking about the “good time” of the old days of casino 1 See the report on “Preparing of the Hand-over Day Parade”, Macao Labor Daily, Dec.5, 2007, p.A1. 2 There was only one slogan in protesting the overdue salary in the construction project of Venetian Casino. But asking the protesters about the detail, they replied that it was not the Venetian owners did not pay them. They had paid the subcontractor on time. It was the subcontractor who did not pay the workers.

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monopoly. 1 Reform and opening up to the outside world is the current tide of the world, and also the locomotive of the development in mainland China, Hong Kong and Macao. The problems emerged during the development are actually the byproducts of the incompletion of reform and opening up to the outside world, rather than the consequence of the reform and opening to the outside world. Because reform and opening policy is comprehensive project, connected with various aspects of systematic reconstruction, it is impossible to reach the aim by one step, or “complete by one fight”, therefore we see those problems of unbalance and inconsistence. There are many reasons underlined the incompletion of reform and opening policy. Here we can at least list two of them: one is from acknowledgement; the other is from invested interests. Knowledge problem is from errors in theory or thoughts, and that should be dealt with theoretical breakthrough. It should be comparatively easier because we are in a time having no theoretical taboo, and in a place where people enjoy the superiority of “one country, two systems”. But in reality, however, theoretical creation is not easy at all, sometimes there are obstructions and risks. For instance, when scholars in University of Macau in early years had suggested opening gambling license for limited competition, they had been resisted and pressured by powerful companies. Those who create new theories must have 3 preconditions: the first is to have profound scholarly training; the second is to have broad and long view in political perspective; the third is to have lofty and brave sentiment of selflessness. According to my observation, there are no lack of people who dare to speak out, therefore can go ahead in leading social reform movements. 1 Those people with nostalgic sentiment often like to talk about how harmonious the traditional Macao used to be, looked like had no class struggle nor conflict and contradictions. The reality might not be true. According to my memory, during the May Day of 2002, soon after the handover, there had one demonstration against illegal immigrant workers. Within that protest, some body conflict had happened between workers and policemen, causing police fired tear gas to crack down.

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Invested interests and interests restructuring are more difficult to resolve than knowledge problems. Social development always brings about interests restructuring and reorganization. More social changes bring about more rapid restructuring. Those social powers representing backwardness are always trying to use their superior resources to stop any further development and changes, including killing any type of new theory and system innovation that may threat their invested interests. But those social forces representing new emergence and advancement will also do whatever they can to seek new theories and system models. If we say that theoretical breakthrough needs scholarly debates and experiments through practice, then, struggles over interests needs long terms of gambling on “survival of the fittest” to see the final direction. If the process is smooth, that will be social evolution. If the process has turbulences, it might be revolution. According to Macao’s social and cultural tradition, we should say that there is no soil for revolution, but full of favorable conditions of social reform and evolution. 1

1 Here, the so-called revolution means dramatic changes in system and quality. Whether social change takes way of evolution or revolution, it is a political issue, not theoretical issue. Theoretically, if social contradiction and discontent have been accumulated to certain degree, and the government’s inaction cannot release people’s discontent, the possibility of triggering off revolution cannot be excluded.

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Chapter 9 Conclusive Remarks: There Is a Long Way to Go, and Long Time to Come

Chapter 9 Conclusive Remarks: There Is a Long Way to Go, and Long Time to Come This final chapter discusses how Macau can make a breakthrough from the monopoly of the gambling industry under the restrictions in geography, human resources and economic structure, by developing cultural industry. More importantly, however, this is an urgent task, which is derived from the rapid development of the gambling industry, not only relevant to Macao’s monotonic economic structure, but also relevant to breaking China’s bottleneck in developing cultural industry, thus it will be meaningful for utilizing this space for discussing this issue. The reason for its “new” is because that it has broken up the old “9+2” Model 1, as well as the traditional way of thinking about “high-tech” or “bonded zone”, it rather put emphasis on a new cultural industrial zone with 3 purposes: the first is to create a national zone of cultural industry; 1 “9+2” Model was first suggested by the former Provincial Party Secretary Zhang Dejiang which means to cooperatively develop the Pan-Pearl River Delta region by nine mainland provinces (Guangdong, Guangxi, Fujian, Jiangxi, Hainan, Hunan, Sichuan, Yunnan, Guizhou) plus Hong Kong and Macao. After a couple years of discussion and preparation, however, nothing has been achieved concretely. The reason for this proposed model dose not work is because that, it was actually copied from the old model raised by Deng Xiaoping in the early 1980’s for developing the two SEZs (Special Economic Zones) in Shenzhen and Zhuhai. After about 3 decades of rapid development and capital accumulation, this old model is no longer suitable for further development in Guangdong and the Pearl River Delta Region any more.

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the second is to upgrade this zone into the higher strategic level for increasing China’s so-called “soft power”; and the third is to break up the bottleneck for Macao’s cultural industrial diversification for bringing about a win-win situation for all related parts in the game.

9.1 China Badly Needs a National Special Zone of Cultural Industry Chinese people, especially the youth, have become the important consumers of foreign culture. Without the protection by policy local cultural products often find themselves unable to compete with foreign ones, not to mention of entering foreign markets. Explanations like inferiority of Chinese culture, the lack of talents and the lack of ability in production and export do not seem to be good enough, but rigidity in the system and ideological obstacle do. So, if we want to promote Chinese culture, expand our cultural industry, maintain dominance within the nation and occupy its deserved share in the world, we must break through the extant rigidity and obstacle in search for new space for survival and development. Thirty years ago the people’s commune system and ideology have made people to suffer from hunger. It was the senior revolutionary generation of Deng Xiaoping and Hu Yaobang who made the bold decision to break up the ideological limitation by supporting Chinese peasants to return to household farming, therefore have written the new Chinese history. At this moment, China is facing another test and opportunity for ideologist liberalization. 1 1 Some people argue that Deng Xiaoping and Hu Yaobang launched reform started with economy, the easiest part of the system, therefore had met with little blockage. In contrast, today’s political, ideological, socio-cultural reform will touch upon too many invested interests, so it will be more difficult if not impossible. I don’ t agree with the above notion. Those viewers seem have forgot how difficult for disbanding the people’s commune system and what encouragement was needed to do so. The real difference between Deng’s reform and today’s reform might not been the size of the difficulty, but rather in the difference of superman’s politics with which Deng could take much higher risk.

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As we know that, there are only two criteria judging the quality of cultural products: the first is by artistic terms, the second is moral. It promotes humanity and universal values by inspiring people’ s sentiments and stimulating our senses. According to these criteria our culture’s potential has not fully been exploited. Here comes the question: how to set our cultural industry free from traditional ways of thinking and institutional restrictions? Under these structures represented by the People’s Commune many people suffered from hunger. Deng Xiaoping and Zhao Ziyang, by striking them and supporting individual responsibility, started a new page for Chinese history. Now we are facing another task in which liberalization of minds is involved. Our plan is, combining Macau’s special status as an SAR and its location as a coastal city, to establish a countrywide experimental region for cultural industry at Hengqin Island, just opposite Macau. Hengqin Island is three times larger than the total area of Macau (around 80 sq km, accounting for 5% of the land area of Zhuhai City, and 0.04% of the area of Guangdong Province). This region shall be administered by the Province, the City and the MSAR. Its industrial planning, not only needs to fit the national strategy, but also the need for industry upgrading of the Pearl River Delta, and the diversification of Macau’s economy and the improvement of Macau’s quality of life. This region shall be the platform from which China’s cultural products enter the world, the base camp for authentic culture and copyrights. It shall not only provide enormous foreign currency and tax income and high end talents for China’s cultural products entering the world, but also a region for tourism, conference and exhibition, convalescence and leisure living for Macau residents and non-gambling visitors. This Hengqin Special Zone will become the platform for Chinese cultural products exporting to the world, also the great camp for Chinese originally created cultural and art works with intellectual property rights. 1 We 1 Some friends in Macao suggest permitting those products that have been particularly ordered by foreign companies with their patent and copy right to be processed in this zone. This issue is certainly discussable. But it seems to me, there are too many inland areas have established hundreds of (Continued on next page)

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expect that with this small packet, its influence shall be all over our territory and the world in terms of the accumulation and breakthrough of China’s “soft power” like the development of cultural industry, the construction of spiritual civilization, and innovation in social system. 1

9.2 Macao (and Hengqin) Have a Favorable Opportunity to Develop Culture Industry In greater China, only Macao (and Hengqin) have a favorable opportunity in the development of culture industry. It is redundant to mention China’s difficulty in overcoming systematical and mental obstacles. Taiwan, on the other hand, faces the problem of its unclear status of sovereignty and a deteriorating international space. Hong Kong lacks history and bearing, and has suffered from stagnation in cultural development. The craze for Jin Yong and Hong Kong films have become a matter of past and is incapable of competing in the global market. Macau is rich in history and heritage. Unfortunately it has been addicted to gambling, which deteriorates its population’s cultural quality and its fighting ethos: students are not attentive to their schoolwork; officials are corrupt and incapable; the atmosphere does not allow scholastic and artistic creation. Rarity in cultural products would mean impossibility in constructing an industry. However, reality outperforms will. International investments have flooded into Macau in tens of billions of US dollars. After standing up by their feet, the next step shall be investment in the cultural industry, maybe in billions, or tens of them. What’s the reason? It is not their love for culture, nor do they bear vision; rather it is the objective requirement (Continued from previous page) firms for specially doing that, such as in Zhuhai, Shenzhen, and nearby Doumen, Jiangmen, Xinhui, Taishan, Yangjiang etc, why should we allow them to bother Hengqin, such a small island with only 80 plus sq km. Therefore, I suggest all cultural products made here must be originally created, or basically originally created. The total new value added to products for processing must be 70% or more, or the transferring value copyrighted by others companies or countries cannot exceed 30%.

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On June 9, 2007, Macao SAR government and China’s Central Cultural Ministry have co-sponsored the first Senior Research Class in Macao. More than 40 officials, scholars, and art practitioners attended this class or seminar. They discussed issues related to the development of cultural industry in Macao. （http://cciidi.sjtu.edu.cn/News_View.asp? NewsID=240）

of the rules regulating the development of the modern gambling industry. In other words, it is the capitalist’s strategic requirement for diversifying his risks. The only way to make a business sustainable, to keep customers coming, or even to attract non-gamblers coming to Macau is to develop cultural industry. It is said that top corporations such as Paramount, Universal Studios and Disney Land are interested in Macau, the World Capital of Gambling. This will create the second wave of investment in Macau’s cultural industry. 1 The opening of Macao Cultural Centre in 1999 marks a new era in the cultural history of Macao by offering unique venues for artistic events, conferences and exhibitions, increasing cultural interchange and helping to expand culture amongst the Macao population.（www. ccm.gov.mo/big5/page/about_ccm.asp）

1 To broaden extent, gambling is also belong to cultural industry, but a special branch of cultural industry, because of its high profitability and serious negative side effects, just like bar and sexual industry, which need special permit and close supervision from the government. To this extent, we don’t include it into our discussion of cultural industry. Therefore, if we say that the first wave of foreign investment was targeting gambling in Macao, the next wave of investment will really target non-gambling cultural industry in Macao.

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Under the framework of the WTO and the increasing interconnection of the Globe, any attempt to stop cultural investment by political means has become invalid. Neither siege, blockage, door-closing, boycott, nor confrontation is the clever way but exporting culture, which means coexistence and competition, and let consumers decide. This forces us to face the difficulties, and create, produce and export our quality cultural products.

This picture shows a good combination of east and west cultures. Two Chinese traditional opera actors are performing with audience watching them, and the background was the famous Ruins of St. Paul’s facade. We wish this combination will last long time as symbolic model for the harmonious coexisting of east and west cultures, not the conflicts and fighting between them.（www.uu86.com/ travel/50/3010/8055.html)

On the other hand, the explosive development of Macau’s gambling industry has brought increasingly apparent side-effects, in particular the grave inclination of human resources to the gambling industry. The rapid rise in salary standard makes other business hard to survive. Thus from an objective view, Macau needs the development of non-gambling cultural industry to balance the tilt towards “the industry”. However, because of the factors such as Macau’s restricted area, difficulty in urban redevelopment, a lack of urban planning, dense population, pollution, etc, the quality of life has deteriorated, and the space for cultural industry is limited. Large scale reclamation, on the 186


other hand, has aroused opposition from Macau residents, due to its damage on the environment and the historical landscape. Hengqin Island, just one channel away, is still waiting for development. Wen Jiabao, the Chinese Premier, said a few years ago, “Hengqin is a treasure island. Don’t exploit in disorder. Think before we exploit.” For the past few years, however, there has not been implementation of any plan. I believe that what is urgent is, under the Central Government’s coordination, to “think” about the issue of effective development and reasonable utilization of the Island. The time has come.

9.3 Cultural Industry Needs Government Support It is impossible to prevent foreign investment in the cultural industry of Macau and Zhuhai. Billions of US dollars have been promised to invest in the Guangdong province, but there has been no development since. Some day the government must provide an explanation: is such investment allowed? If not, what is the reason? In my opinion, it is necessary, and unstoppable to let them develop non-gambling cultural industries. We should be active and plan a special region with the Chinese culture playing a major rule. Foreign and domestic capitals can depend on each other, compete against each other and learn from each other. Foreigners will develop what they are familiar with China’ s market of their focus, but they will employ many Chinese employees. With their creativity, minds, network and strategy, we can cultivate our talents, produce our own products (most foreigners are despised of communism, but they are not anti-China, not against the Chinese culture. They are willing to develop cultural products with Chinese characters as long as there is market) and distribute them to the world market. This region, subordinate to the Central Government, does not need capital influx from other provinces like what happened to Shenzhen and Zhuhai. Local and overseas sources are abundant. Private enterprises also look for quality items. What they really need are regulations, policy 187


and a relaxed atmosphere. The region’s geographic realm and administrative status need to be demarcated. Our suggestion is to move the control station from the Lotus Bridge to Hengqin Bridge. Free access is provided between Macau and Hengqin, but the Region does not belong to Macau SAR. A new system is introduced: the Central Government supervises, the Guangdong Province discusses, MSAR and Zhuhai jointly implements. Details are open for future discussion. There should be planning for what the Region can develop, and what cannot. Our suggestion is everything but things like gambling, prostitution, drugs, pollution, manufacturing and logistics. Any cultural product should be original. The processing part shall not be more than one third or half of the aggregate value of the product. Finance and other business services are limited to serve the cultural industry. Chinese students in overseas are especially welcome; more welcome is cultural industry facing the overseas market, such as news service, television, radio, publishing, film, animation, games, conference and exhibition, medicine, retirement and education. The region provides products, as well as talents. To this end, there should be no censorship, nor internet blockage. Creation and copyrights are protected. Exempting from tax shall be granted to internationally prized works. Joint funds are to found by the MSAR and the mainland to start large influential programs as soon as possible, such as “Organic Farm Garden for Production and Tourism”, “International Housing Museum for Energy Conservation and Environmental Protection”, “Confucian Retirement Community”, “Anime Theme Park and Production Base”, “the Oceanographic Museum and Water Sports Park”, “School of Medicine and School of Fine Arts in the University of Macau”, “Audiovisual Production Base with East Asian Characters”, etc. Here I want to give more explanation on the following projects. (1) “Organic Farm Garden for Production and Tourism”: There are some aquatic farming and horticultural plantations existed in Hengqin Island. If we can arrange for more investment on the existed 188


farms, building more solar greenhouses and permanent greenhouses, combining cultivation, experimentation, production with scientific research, teaching and training, tourism and selling. together, it will be easier to produce enough fruits, vegetables, and flowers to supply Macao and Zhuhai local markets, and also provide a beautiful farmland for urban population to enjoy. (2) “International Housing Museum for Energy Conservation and Environmental Protection”: We should say that this museum has three functions: One is to invite specialists and architectural engineers from all over the world to design, construct, and exhibit all different kinds of materials and architectural designs with energy saving or regeneration. 1 Visitors could try those houses or apartments by renting them days, weeks, or months, or make order for them to be shipped to, and resembled at, any designated place, of course with the original copy rights in Hengqin/Macao; the second purpose is to collect architectural models with different styles and put them together as a museum for people to look at and try. They should be energy saving, environmental protection, and financially affordable for the majority of regular working families; the third one is to set up an architectural garden to provide with vacation housing (villa, hotel, apartment, cabinet, etc.) for all customers with different income levels. (3) “Confucian Retirement Community”: Because of the difference in cultural heritage and purchasing power in different countries, the provide for the retiring people in different countries has become a big industry, such as Japanese retiring people living in the USA, and American retiring people living in Mexico etc. However, since the 1 The excellent geographical location of Hengqin Island is suitable for developing regenerating energy, including wind and solar energy. According to internet news report from April 14, 2005, Guangdong Province has invested RMB 400 million for establishing a windmill power station of 50 MW on the top of Naobei Mountain in central Hengqin Island to provide 40 million KWh of electricity supply. This windmill garden can also be used as a tourist spot. See detail from http://txbbs.net/ index.php.

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lack of Chinese traditional culture of “filial piety” in western societies, many elderly are suffering from loneliness and desolation even they have money. 1 If China wants to set up good cultural example for the world, why should not we establish a first class retiring home center for international elderly? It is not hard to learn from other countries. If we can succeed in doing so, this center will not only attract overseas retirees, but also attract mainland middle class retirees from the cold northern Chinese cities. Many Chinese baby boomers are reaching retiring age, and their economic condition should be good enough to afford their retiring life in warmer Hengqin Island. Most of them have only one child, and the socially organized retiring system is not accessible yet to them. 2 Therefore, commercial, semicommercial semi-charity retiring homes, might be one of their best options. (4) “School of Fine Art and Medical School in the University of Macau”: Because of using English as teaching language and hiring faculty members from allover the world, the quality and reputation of the University of Macau is increasing dramatically. Now its enrollment request is equal to key universities in mainland China. The standard for enrolling local students is also growing up. If UM wants to upgrade itself to a higher degree, it needs a new campus location with the capacity to develop other new faculties and schools. However, by looking at the existing land reserved in Macao, it is hard to find another 1 Some people may argue that how much the good traditional culture is still keeping in our own Chinese society. It is a very good argument, because we do see many examples today that are showing in the young generation, especially those single child generation, who actually have changed a lot from that of their parents and grandparents. But in rural China, however, we still see most households are still keeping some degree of traditional culture to respect and take care of their elderly family members, both physically and financially. 2 According to some informative people, state financed decent retiring system does exist in China, but it is only available to a handful high ranking party or government officials and military officers with a class higher than, or equals to, provincial governor or central government minister.

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piece of land suitable for an UM campus. 1 Therefore, considering Hengqin Island is a reasonable choice. In addition, making a better UM is not only the necessary requirement for educating Macao local talents, but also one of the good programs for developing cultural industry in Macao and Hengqin. Although I am not in favor of the idea to develop education as a business, especially opposing that for primary and secondary education, but there is no doubt that all high education services have to be paid, to some extent, by the students and their families. In considering the opportunity for Macao do develop its non-gambling cultural industry, UM should pay more attention to develop those majors and specialties related to humanities, arts, and social sciences. Thus, I suggest UM, after the new campus location has been finalized, to open up schools of arts, movie and television, animation, communication, sports, medical science, and nursing, and the necessary affiliated hospital, movie studio, and other creating and processing facilities gradually. In order to catch up with the globalization we should keep the tradition of mainly using English, with linguistic and cultural diversity to be our principle. As a conclusion, for the development strategy of China’s cultural industry, for the sustainable development of Macau, and for the Renaissance of Zhuhai and the PRD Region, I hold that the utilization of Hengqin Island cannot be delayed. The “9+2” Model is out of date. Leasing the Island to Macau with sole administrative rights is not a preferred way. By examining Macau’s present ruling level and its land distribution situation, cultural industry is not likely to develop. Monopolistic control by Macau may enable the misuse of “one country, two systems” to damage the environment or to develop Island in disorder. This means nothing but to ruin this precious land. 1 Whether it is coincident or not, my above analysis has been proved to be true in a recent conversation between Macao Chief Executive and one of his think tank members. When the discussed the possible new campus for UM, Edmund Ho said that there is no land available for UM’s new campus any more. If UM wants to have further development, the only possibility is to consider a new location in Hengqin Island.

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9.4 The Opportunity Is Only Once By looking back the contents of our discussion in this book, there is hardly anything unrelated to the close interests of the Macao residents, nor anything irrelevant to Macao’s political-economic prosperity, or social-cultural auspiciousness. Therefore, taking gambling sociology as a newly emerged subject of social science into our consideration, the deeper our research can reach, the more urgency and applicability we can feel in terms of benefiting Macao society. Of course, for full establishment of a social scientific subject, or a making and carrying through an important social policy (such as diagnosis and treatment for problem gambling), cannot be done overnight. It needs long term of policy publicity, public collaboration, experience accumulation, and structural construction, etc. In short, we have a long way to go, and there is a long time to come. However, for anything which is closely related to public interests, it is often “more difficult to know than difficult to do”, or “difficulty of knowing than difficulty of doing” 1. As long as people get to know about the issue, they will form into a social force to push it forward. But the most difficult time is the starting period. As we know that we have to do it, and we can have a good start, that means we have achieved half of success. Therefore, as Mao Zedong once said, “It is too long for waiting ten thousand years. We should work hard for day and night.” We expect a quick and good start for the teaching, research, and social practice of gambling sociology in Macao. 1 “Difficulty of knowing is more than difficulty of doing” is one theory of knowledge suggested by Dr. SunYet-sen. According to his theory, any correct point of view representing the truth will be very difficult to know. After knowing it, however, to put it into practice will not be more difficult than people previously expected. Therefore, he opposed the idea of “difficulty of doing is more than difficulty of knowing” by suggesting the contrast theory of “difficulty of knowing is more than difficulty of doing”. See detail from Lin Guipu (1984), Essentials of Sun Wen’s Thought, Taibei, Sanmin Bookstore, p.796.

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I want to emphasize at last, historical opportunity often looks very strange. It comes to be true suspiciously, and may also disappear promptly. Nobody can be guaranteed for what kind of external environment Macao may or may not have for its further development in next 5 to 10 years. We wish a good luck for ever under the protection of A-ma, but dare not to forget ourselves in a moment of excitement, and lack of necessary vigilance. The biggest guarantee for Macao’s long lasting prosperousness and the happiness of our children is still in our hands. We have inescapable responsibility, and no other choices but to try our best. Here is the end of my incomplete draft of The Introduction to Gambling Sociology (first draft). I wish that our readers will continue their questioning and other active feedbacks, to pool our collective effort into richer materials with higher degree of theoretical approaches. We try our best to further deepen our research in this field, revise mistakes and errors, add more graphics and data, etc, and eventually develop it into a monograph of higher academic quality for collage students as well as for regular readership.

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Epilogue

While ready to deliver the manuscript for publication, and with complex feelings, I try to write down the following words as both a memo and an epilogue, to express my apology to the readers. First of all is the delay of submission of the draft to the press. It was originally scheduled for the end of 2007, but eventually delayed for more than half year. There are many reasons for causing this delay. One is the dragged-on approval of my research grant application, making me having no fund to hire assistant to do necessary word processing for the draft. If I submitted as it was, that would be irresponsible to the readers, as well as to the Chinese Academy of Social Sciences from which I got my MA degree. As my mother school and the highest academy of social sciences in China today, how could I be possibly to publish a book carelessly? Another is the unexpected technical difficulties we have encountered in handling the footnotes, pictures and translations. Although I’ve hired several helpers, we still could not have avoided the delay. The third one is heavy duty in teaching and other research obligations, making me impossible to spend more time on this project, even I tried to scarify all my weekends and holidays, with hardworking to one or two o’clock in early morning, I still could not make it. Secondly, the publication of an academic work, like launching an artistic piece, requires the re-creation and the judgment of the 194

Epilogue

readers. How they associate and decode the materials is beyond my control. Sometimes it can be miles way from the intention the author possesses. Just like what I received from the oral history I co-authored last year, there were not only serious criticisms, but also twists. This Introduction, with a multi-dimensional analysis on gambling and related industries, and a frequent use of examples based on Macao, it shall receive responses of all sorts, including rejection from some Macao interests. Here I invite you to put forward your ideas, whether positive or negative. I will accept them with my heart and take them seriously, either as an expression of support or an urge for future improvements. Especially I welcome academic discussions. However I wish there will be no more anonymous attacks and vicious warnings, threats such as “what’s your purpose?”, “what’s your intention?”, or “your standpoint is problematic”. Please openly provide with your rationale, if you want revoking the views in this book, rather than making anonymous calls, shooting me from the darkness, as it has happened before. I would also like to point out the main weaknesses of this work. First, there is a lack of a wholesome system. For example, the style may seem a bit disorderly. The concept, definition, principle and empirical analysis may also seem rudimentary. These are due to the schematic nature of this book. Second, there is a deficiency of figures and charts, which facilitate quantitative analysis of the general development tendency of the gambling industry. Third, the internal logic of the illustrations is not apparent. The basic principle of selecting illustrations is to relieve the reader from tiredness and boredom during the reading process, fill the gap between sociological theory and our daily lives, and increase the students’ learning interest. In this era when web pictures are abundant, the question is enhancing the pictures’ academic value, rather than finding them. Finally I would like to share my expectation on the development of this field. With supplement and corrections involved during the publishing process, certain chapters of this book have been presented separately on local seminars and journals. Part of the audience has reflected that in the Greater China area gambling is spreading and 195


developing. Whether it is legal, semi-legal, or illegal, preventing the social consequences of gambling urges our concern. There is a need for setting up related courses in universities, but there is no textbook on this subject yet. Hence there is expectation for introducing this book to these institutions. Here I believe that the Chinese society, especially Macao, being the “Gambling Capital of the World”, can make its contribution by leading the development of the field. Although this book is primary, it still makes a foundation. I wish that sociologists who pay attention to gambling, especially the new generation, will join in the studying and the writing in this field, and witness its flourishing in the near future. The last thing I want to say is about the copyright of the quoted picture in this book. Because this manuscript has to be submitted before the 2008 Beijing Olympic Games, the time constraints made me having no time to contact with each picture copyright owner, therefore, if any beneficiary has question on this issue, please contact with me directly ([email protected]). Thank you for your attention. TJ Cheng, Summer of 2008

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Appendix I Timetable of Macao’s Liberalization of Gambling Industry

1

Appendix I Timetable of Macao’s Liberalization of Gambling Industry *

Year

M/D 12/20

1999

Major Events Macao’s handover to China. Edmund Ho Hau Wah, MSAR’s Chief Executive invites an

12/21

international consultation corporation to study the outlook of Macau’s gambling industry.

03/06

Edmund Ho meets with Vice-Premier Qian Qichen in Beijing and states his logic of developing the gambling industry. President Jiang Zemin states that Chinese capital is not allowed

03/09

to participate in the gambling industry, nor the allowed to seek support from the mainland.

05/28 2000 early Jul. 08/24 Sept. Nov.

Winnie Ho, standing director of STDM, is sued for 12 million HKD in Hong Kong. The Gambling Committee is established, with Edmund Ho as president. Andersen Consulting is selected for a three-stage study for the perspective of Macau’s gambling industry. The first stage of the perspective study is complete. The MSAR government raises a gradual liberalization in the gambling industry in its 2001 Policy Address.

1 * Great thanks to Albert Wang who has composed this Timeline based on Macao local media and also taking reference from Liu Pinliang’s book Macao Gambling Industry in Length and Breadth, Joint Publishing (Hong Kong) Co., 2002.

197

The Sociology of Gambling in China Continued Table Year

M/D Apr.

The second stage of the perspective study is complete.

05/23

DrHo.com, an online casino, is launched. A new Act for the gambling industry is passed, in which three licenses

08/30

2001

10/29

are issued with the longest span of 20 years and a tax rate of 40%. The bidding rules are proclaimed.

10/31

The bidding committee is formed.

11/02

The first day of bidding. SJM, a subsidiary of STDM, is established to bid the gambling

11/05 12/07 12/10

license, with Stanley Ho as the standing director. The deadline of bidding, with 21 biddings received. The government allows reconstitution among the bidding parties

12/13

before temporary licenses are issued. The first opening of the applications.

12/18

The second opening of the applications.

12/19

The contract with STDM extended to March 31, 2002.

01/03

The bidding committee interviews with the bidding parties.

01/15

9 of the candidates receive further investigations.

01/31

Deadline of reconstitution, with only one application received.

02/05 02/08

2002

Major Events

STDM waives Winnie Ho’s position as director. Judiciary Police establishes the Gambling-related Crimes Division. The bidding committee announces that SJM, Wynn and Galaxy to be the temporary license holders.

02/11

The Macau Gaming Industry Laborers Association is established.

02/18

SJM announces its development plan.

03/28

MSAR government signs the license contract with SJM SJM takes the 11 casinos from STDM.

04/01

Rules regulating agents become effective. Henry Fok leaves STDM and establishes a foundation with his shares.

04/20

SJM and its staff disagree on salary arrangement. Macau Jockey Club, MacauSlot and Macao (Yut Yuen) Canidrome

05/22

Co. Ltd are affected by the passing of Hong Kong’s Gambling (Amendment) Bill 2000.

06/20 06/23

Starting from July 1, SJM staff is not allowed to demand for tips. SJM staff is required to sign a new contract which forbids them from joining other casinos in two years.

06/24

MSAR government signs the license contract with Wynn.

06/26

MSAR government signs the license contract with Galaxy.

198

Appendix I Timetable of Macao’s Liberalization of Gambling Industry Continued Table Year

M/D 06/27-07/02 07/08 07/10 07/19 07/21 07/31

Major Events A phone survey reveals that 27.4% of the 365 interviewees (15-24 y.o.) has participated in football betting. E x- S T D M s t a f f co m m e n ce s t h e p ro ce s s o f d u n n i n g fo r compensation for salary-bearing holidays. DSAJ release analysis of SJM’s new contract. A consensus is formed among SJM and staff, the SAR government and the Macao Federation of Trade Unions. Hundreds of SJM laborers frustrated with the contract, New Macau Association intervenes. Deadline for STDM staff’s transition to SJM. A delegation led by Chui Sai On, Secretary for Social Affairs and

08/08

Culture, visits Las Vegas and San Francisco. Advocacy for a renewed discussion of contract with SJM is raised. A survey reveals that ● 70% of the interviewees believe that Macau relies too much on gambling industry.

2002

08/11

● More than 50% believe that developing gambling industry will encourage gambling among the youth. ● 40% believe that such development can relieve unemployment. ● 50% believe that public order will be worsened. ● Education is important for solving derived social problems.

08/16

Macau Jockey Club has applied for relaying foreign racing broadcast, and setting up an independent pool. SJM announces that it has received 240 Declaration Forms for

08/22

negotiation for a new contract, but many of them have been repealed, while a rally demanding for negotiation is held.

08/26 08/30

A diploma program on Topics on Contemporary and Tourism and Gambling commences. The MJC withdraws its application for an independent pool and plans to negotiate with HKJC for cooperation.

09/01

Yut Yun closes three betting stations.

Aug.

SJM plans to establish a Provident Fund Program. An official delegation visits San Diego and Las Vegas.

09/08

A rally held by “STDM staff’s families”, but the would-be strike was cancelled.

199


M/D

Major Events A Putonghua course for SJM staff commences. Ambrose So, SJM Director Board member, vows that SJM is going

09/12

to stress on culture and tourism, apart from gambling. Jon Hutchison, CEO of Sydney Convention & Visitors Bureau, points out that Macau should exploit its advantages for competition while developing MICE tourism.

10/11 2002

Liu Pinliang’s final work, Macao Gambling Industry in Length and Breadth, launches.

10/25

Macao Convention & Exhibition Association is established.

11/26

A license for football betting is granted to HKJC.

12/08

Pointe 16 breaks ground.

12/20

Kam Pak Civic Center is open to public. Galaxy subcontracts its license to VML. ● Annual Gambling Income 21.5 billion Patacas (+19%)

Mid-Dec.

● Gambling Tax 7.639 billion MOP ● GDP Growth 9.5% ● No. of Tourists 11.5 million (+12%)

01/31 02/01

Pharaoh’s Palace Opens for business. Chui Sai On reveals that three investors are willing to cooperate with local colleges to train relevant personnel. Francis Tam declares that legislations regulating the casinos will

02/13

be launched before the second license holder starts its business. Agents will be registered.

02/20

SJM’s Joint Consultative Committee is established. Shuen Ka Hung, Director of the Labor Affairs Bureau, expresses his

2003

02/26

confidence in solving the conflict between SJM and its staff by the end of June. Francis Tam leads a delegation consisting members of the

03/08

Executive Council and the Legislative Assembly to Las Vegas and San Francisco.

03/10 03/13 03/14

Sands Macau receives 30000 job application forms out of 40000. Hong Kong lifts its ban on the gambling industry’s entry to the market. The joint training program between the MGILA and the Labor Affairs Bureau receives 1500 applications.

200


M/D 03/22 03/28 03/30 Mar. 04/11 04/24 04/29

Major Events SJM holds Alan Tam and Hacken Lee in Concert Macau, attracting 200 thousand spectators. SJM’s net profit in 2002 was 2.2 billion MOP. Legislators Ng Kuok Cheong and Au Lam San release a report after returning from Las Vegas. Macau University of Science and Technology launches gamblingrelated courses. A Provident Fund Program for SJM staff is established. Steve Wynn has received the Act liberalizing casinos giving credit to gamblers. An SJM-based union is formed. Francis Tam confirms that one of the members of the bidding

06/18

committee has resigned. That this official is working at a license holder does not conflict with the government’s interest.

05/01 2003

06/27 07/07 07/10 07/28 08/29 08/30

Li Jiang’s work Gambling: An Economic View is launched. The government is going to organize a Counseling group for problem gamblers. The Macao Federation of Trade Unions opposes the official opinion that tipping should not be counted a part of the ex-STDM staff’s salary. Starting from this date until July 29, SJM staff transferred from STDM are arranged to receive a service reward. Individual Visit Scheme is launched. Institute for the Study of Commercial Gaming. University of Macau is established. Steve Wynn is reported to be pressing the government for the completion of regulations of gambling

09/01

Macao Tourism and Casino Career Centre is formed.

09/18

The Gaming Inspection and Coordination Bureau was reconstituted.

09/20

The original site of Workers Sports Pavilion is transferred to SJM.

09/29

The first Mocha Clubs Macau opens for business.

Sept.

UMAC launches its Gaming Management Program.

10/07

Macau Gaming Research Association is established.

201


M/D

Major Events An ISCG survey reveals that 2.66% of the interviewed students

10/28

may have become pathological gamblers; 5% may have become problem gamblers.

11/14 11/16

The Polytechnic Institute is planning a free, gambling-oriented prerequisite program for those who have not finished high school. The 50th Grand Prix Macau is named by Galaxy. Edmund Ho, Chief Executive of MSAR, promises to conduct a

2003

11/20

research for a mechanism solving social problems derived from gambling, and believes that the progress of the two new investors is in accordance with the orderly principle.

12/26

Only 5.5% of the interview youth are willing to participate in the gambling industry. ● Annual Gambling Income 27.9 billion Patacas ● Gambling Tax 9.92 billion MOP ● GDP Growth 15.6% ● No. of Tourists 11.9 million

01/12 01/14 02/24

Galxy releases 30000 jobs application forms. An application for a debate on gambling venues’ entry into residential areas was vetoed by 14 votes in the Legislative Assembly. SJM’s Oriental is named one of the ten best casinos in the world. Most of the 300 interviewees agree that, the Macau residents

05/17

should serve the gambling industry, a survey conducted by a UM graduate student shows.

2004

05/18

Sands Macau opens to business.

05/31

Agents should register before July 1 to conduct credit activities.

06/15 06/23

MUST signs a protocol with Macao Tourism and Casino Career Centre is formed. MGM Mirage and SJM have reached an agreement in building a hotel by 2006, a report says.

07/04

Waldo Galaxy opens for business.

08/29

Edmund Ho reelected Chief Executive of MSAR. 80% of the interviewees approve for the industrial orientation, but

09/14

they are also concerned with derived social problems, a UMAC survey reveals.

202


M/D

Major Events General Association of Administrators and Promoters for Macau

10/08

Gaming Industry is formed, with Angela Leong as President of the Executive Committee.

Oct. 11/10

Reports reveal that stocks related to Macau’s gambling industry are soaring . The first issue of Jornal of Macau Gaming Research Association is launched. Edmund Ho, Chief Executive of MSAR, admits that the gap between gambling tax and other sources of income is widening

11/16

and going to be continuous. The government is not going to support any industry for the sake of the achievement of his political career.

2004 11/23 12/02

Francis Tam declares there is only one chance for subcontract of the gambling license Stanley Ho confirms that SJM and Lawrence Ho’s Melco International Development Ltd. will join to build a 6-star hotel at Taipa.

12/16

The price of Sands soars by 60% on its first day in NYSE.

12/23

Greek Mythology opens to business.

● Annual Gambling Income 40.2 billion Patacas (+19%) ● No. of Gambling laborers 21264 ● Average salary 10730 MOP ● Deficit for job positions 7104 ● GDP Growth 28%, GDP per capita ranks fourth in Asia ● No. of Tourists 16.7 million (+40%) 01/18 01/30 2005

02/07 02/23 03/12

Two of the investors declare that they are not worried about Beijing’s policy limiting officials participating in gambling. MJC launches its unilateral betting program on Hong Kong races. Buses service between Greek Mythology and cities in the Pearl River Delta Region is halted. Government figures show that hundreds of students withdraw from school to work in casino. SJM is reported to be willing to pay 190 million MOP for the moving of Escola Portuguesa de Macau from its present site.

203


M/D 03/18 04/18 04/19 05/02 07/15 07/21 09/14 09/21

Major Events Las Vegas Sands, together with some of the international hotel brands, launch the Cotai Strip. Singapore lifts ban on gambling. MGM Grand Paradise Ltd. is formed. Galaxy Casino, S.A. is acquired by Galaxy Entertainment Group Ltd. WML is not endorsing anyone in the forthcoming legislative election. The Historic Centre of Macao becomes one of the UNESCO’s World Cultural Heritage sites. The Chinese Government issues a notice, forbidding labor export for gambling and sex exploitation. The Chinese Government issues a notice to stop citizens from gambling overseas. Two works on gambling by Wang Wuyi are issued. Election of the Third Legislative Assembly. Casino representatives,

2005

09/25

including Angela Leong, are elected, while the union representative loses his seat.

Sept. 10/14 11/07 11/25 12/31

The general public expresses its concern for importing workforce for gambling industry. Las Vegas Sands invests 1 billion USD to build a MICE tourism item on Hengqin Island, opposite to Macau. A Counseling Centre organized by The Social Work Agency is open for service. Francis Tam, Secretary for Economy and Finance, vows that no new license shall be issued before 2009. Fisherman’s Wharf is open to business. 41 corporations are 35

individuals hold agency licenses. ● Annual Gambling Income 46 billion Patacas ● No. of Gambling laborers 26118 ● Average salary 11269 MOP ● GDP 92.59 billion MOP ● No. of Tourists 18 million 01/01 2006

Yut Yun’s contract is renewed for 9 years. A report reveals that the buildings housing the Legislative

01/28

Assembly and the Courts for First and Final Appeal are to demolish for gambling and real estate development.

204


M/D 03/06

03/23

03/25 04/04

Apr.

Major Events Wynn’s license is subcontracted to Australia’s PBL for 900 million USD. Cross-border Illegal gambling and gambling-related crimes become two of the items of a joint meeting between Guangdong, Hong Kong and Macau. Forbes names Oriental, Sands and Liboa three of the thirteen “hottest” casinos. Chief Executive Edmund Ho declares coupiers will not be imported. Casinos are required to inform suspected deals to the government agency, according to the new legislations against terrorism and money laundry. A survey reveals that a third of the interviewees will work in

05/11

the casino in the future, while 64% of them reject the idea of

05/26

withdrawal from school to work in a casino. Las Vegas Sands is granted Singapore’s first gambling license. Stanley Ho is desperate for government interference to stop

08/11 2006

08/24 08/28 09/01 09/02 09/05 09/20 09/21 09/29 Oct. 11/07

vicious competition in the industry. Treasure Level at Sands Macao opens for business. The number of tables is thus raised to 740, and that of slot machines 1254. S.Adelson and W.Weidner disagree with Stanley Ho’s earlier criticism, which is immediately rejected by Ho. Judiciary Police establishes the Department for the Investigation of Gambling-related and Economics Crimes. SJM launches promotion programs, such as presenting rice with barbecued pork. The Wynn is inaugurated (Open to public on September 6). Stanley Ho admits that SJM’s market share is being eaten. Jinmen County expresses its desire to run gambling. Forbes announces S. Adelson to be the thrid richest man in the USA, and attributes this to Macau. Grand Waldo opens to business. A counseling center for pathological gamblers advocated by Angela Leong opens. Francis Tam denies that Sands’ firing coupiers is relevant to

11/16

importing coupiers. Chief Executive Edmund Ho vows that the government is.

11/27

Galaxy is interested in investing Macau’s public transport.

205


M/D

Major Events Stanley Ao, then Secretary for Transport and Public Works, states

12/01

that the gambling industry shall not participate in the construction of the Light Transit System.

2006

12/05

Sands plans for a 150 million USD plan to start ferry business

12/08

Singapore grants its second gambling license. A government report shows that around 40% of the interviewees

12/22

are dissatisfied with the government’s performance on regulating the csainos .

● Annual Gambling Income 55.9 billion Patacas ● GDP 11.44 billion MOP, GDP per capita 28436 USD (3rd in Asia, surpassing HK) ● No. of Tourists 22 million 01/10

Studio Macao City breaks ground.

01/19

STDM wins the case against Winnie Ho.

02/11

Grand Lisboa partially opens. Stanley Ho predicts that SJM.

02/20 Mar. 04/17 05/04 2007

05/12 05/22 May

An underage individual won a jackpot at Sands, which was ended by the authority’s instruction to pay. Nevada Gaming Commission approves the cooperation between MGM Mirage and Pansy Ho. A man falls to death at Macao Sands. It is later revealed that a Responsible Gambling program has been launched in February. An anti-gambling campaign organized by Macau’s Protestant churches is launched. Crown Macau opens for business. A survey reveals that 20% of Macau’s youth work in the gambling industry; 42.4% of them gamble. The Chinese government tightens the Individual Visit Scheme. A joint survey reveals that 12% of the interviewees are willing to withdraw from school if they can work immediately as a

06/30

coupier; 8% of the interviewees have declared that their parents have demanded them to withdraw; 13.5% of the parents have demanded their children to withdraw for such a reason.

07/09

An MUST survey reveals that cultivation, pressure, promotion and health are the coupiers’ four major issues.

206


M/D 07/21 08/01

Major Events The Anglican Church launches its problem gambling counseling program. Stanley Ho admits that there are more casinos than rice shops. SCMP reports that Chief Executive Edmund Ho is holding shares of

08/13

two of Stanley Ho’s subsidiaries, which the authority says that they

08/28

have been exchanged for shares of Tai Fung Bank. The Venetian Macao is open for Business. Lao Si Io, Secretary for Transport and Public Works, states that the

08/31

government is accommodating and regulating buses serving the

09/13

casinos. Harrah’s acquires Macau Orient Golf Club through a subsidiary

09/21

The case for ex-STDM staff is closed. The Court for Final Appeal judges that tipping is not a part of the salary SCMP reveals that VML is asking for the government’s approval

10/24

for selling its serviced apartment. David Chow, CEO of Macau’s Fisherman’s Wharf, condemns this to be pressing the government through media.

10/26 2007

11/14 11/19 11/28 11/30 12/18 12/28

Macau Palace temporary closes for business, starting from 7 am. Chief Executive Edmund Ho announces in his Policy Address that he will consider raising the lowest age allowed to enter a casino to 21. Penghu County, Taiwan Province expresses its desire to run gambling. A survey reveals that the prime factors attracting people to gambling industry are salary and fewer prerequisites. Cotai Jet, jointly run by VML and Chu Kong Passenger Transport Co., Ltd is launched. MGM Grand opens for business. All six holders are since in business. The World’s first e-casino is open to business in Macau.

● Annual Gambling Income 83.8 billion Patacas ● No. of Gambling laborers 44743 ● Average salary 14899 MOP ● GDP 153.61 billion MOP, GDP per capita 36357 USD (1st in Asia, 20th Globally) ● No. of Tourists 27 million ● Market Breakdown: SJM-40%; VML-20%; Galaxy-18%; Wynn-16%; Melco PBL5%

207


M/D 01/14 01/19 01/24

Major Events A survey reveals that 40% of the interviewees are willing to work in a casino, while 70% are willing to work in a job related to casino. A survey reveals 50% decrease in desire to join the gambling industry than 2005 figure. Mongolia express its desire to lift its ban on gambling. Figures from Las Vegas show that Macau’s gross gambling revenue

Jan.

is 10.3 billion MOP in Jan. 2008, while Las Vegas only earns 4.8 billion.

02/01

Pointe 16 opens for business. A Macau resident is denied from the jackpot at the Venetian, which

2008 02/15

the latter declared her to be a relative of a staff. This is confirmed by the authority a week later. Chief Executive Edmund Ho announces that: ● No new gambling license shall be issued; ● No new land plots for casinos;

04/22

● No new tables in short term; ● Slot halls shall be withdrawn from residential areas; ● No new reclaimed land shall be used for casinos; ● The gambling industry shall not participate in public utilities; ● The industry shall not participate in public policy-making

208

Appendix II A List of Casinos in Macao (In Business, Under Construction and Planning) 1

Appendix II A List of Casinos in Macao ( In Business, Under Construction and Planning )* Sociedade de Jogos de Macau, S.A. (SJM) Name

Location

Lisboa、Crystal Palace、Mona Lisa Palace、 Hotel Lisboa Famous world、Treasure Cavern Grand Lisboa Hotel Grand Lisboa New Jai Alai Jai Alai Macau Palace Near Fisherman’s Wharf Oriental Casino Mandarin Oriental Hotel Kingsway Kingsway Casino# Holiday Inn Diamond Casino# Hotel Inn Kam Pek Arabian’s Night Casino、 Centro Comercial San Kin Yip Casino de Louvre# # # The Legend Club 、Pharaoh’s Palace 、 Hotel Landmark Orbit# # Pousada Marina Infante Hotel Casino Marina Infante Greek Mythology# Hotel New Century Grandview Casino# Hotel Grand view Casa Real Casino# Hotel Casa Real Golden Dragon Casino# Hotel Gdden Dragon Casino Fortuna# Hotel Fortuna Casino Emperor Palace# Hotel Emperor Babylon Casino#、 Miami Flamingo Slot Club# Fisherman’s Wharf R e g e n c y H o te l, R e g e n c y Casino Taipa Hyatt before July 1, 2006 1 * Sources: Chinese Wikipedia (Last Updated: May 2008)

209

Mass Market

VIP Slot

＊

＊

＊

R

＊＊＊＊＊＊

＊＊＊＊＊＊

＊＊＊＊＊｜

B B C B C B

＊

＊

｜

B

＊

＊

＊

B

＊＊＊＊＊＊＊＊

＊＊＊＊＊＊＊＊

＊＊｜＊＊｜＊＊

B B B B B B B B

＊

＊

＊

R

The Sociology of Gambling in China Continued Table Name

Location

Casino de Porte 16 Casino de Arc de Triomphe# Oceanus #

Nova Taipa Gardens Unnamed# Unnamed# Treasure Hunts Treasure Express Tiger Treasure Pousade Slot

Hotel de Prote Hotel de Arc de Triomphe Site of Jai Alai, New Yaohan and Macau Palace Nova Garden Cotai Nam Van Lake Canidrome Hotel Crown China Macau Tower Cheng Feng Commercial Building

Mass VIP Slot Market ＊＊＊ B ＊＊＊ T ＊

＊

＊

P

＊＊＊｜｜｜｜

＊＊＊｜｜｜｜

＊＊＊＊＊＊＊

P P P B B B B

MGM Grand Paradise Ltd. (MGM) (Subcontracted from SJM) Name

Mass VIP Market ＊＊

Location

MGM Grand Macau

MGM Grand Macau

Slot ＊

B

Wynn Resorts (Macau), S.A. (Wynn) Name

Mass VIP Market ＊＊＊＊

Location

The Wynn Unnamed

Wynn Macau Resort Cotai

Slot ＊＊

E P

Melco PBL Gaming (Macau) Ltd. (Melco PBL) (Subcontracted from Wynn Resorts, S.A.) Name %

Royal, Mocha Kingsway, Mocha% Taipa Square, Mocha% Sintra, Mocha% Taipa, Mocha% Marina, Mocha% Crown Macau% Crown, Mocha% City of Dreams% City of Dreams, Mocha% Macau Studio City Casino% Trinity

Location Hotel Rogal Kingsway Centre Hotel Taipa Square Hotel Sintra Best Western Taipa Hotel Marina Center Crown Macau Crown Macau City of Dreams City of Dreams Macau Studio City ZAPE

210

Mass Market ｜｜｜｜｜｜＊｜＊｜＊＊

VIP

Slot

｜｜｜｜｜｜＊｜＊｜＊＊

＊＊＊＊＊＊｜＊｜＊＊＊

B B B B B B B B T T T P

Appendix II A List of Casinos in Macao (In Business, Under Construction and Planning)

Galaxy Casino, S.A. (Galaxy)* Name

Location

Mass Market

VIP

Slot

Waldo Casino#

Hotel Waldo

＊

＊

＊

B

Casino Rio#

Hotel Rio

＊

＊

＊

B B

Casino de Presidente

#

Hotel President

＊

＊

｜

Grand Waldo Casino#

Hotel Grand Waldo

＊

＊

＊

B

Galaxy StarWorld

Hotel Galaxy Starworld

＊

＊

＊

B

Galaxy Mega Resort, Phase 1

Cotai Strip

＊

＊

＊

T

Galaxy Mega Resort, Phase 2

Cotai Strip

＊

＊

＊

P

VIP

Slot

＊

＊

＊

E

＊

＊

＊

E

＊

＊

＊

P

Venetian Macau Ltd. (VML) (Subcontracted from Galaxy Casino, S.A.) Name

Location

Mass Market

Sands、Pearl Room、Level of NAPE Fortune、Treasure Level Venetian Venetian Far East Consortium International Cotai Strip Limited Shangri-La Cotai Strip

＊

＊

＊

P

Four Seasons

Hotel Four Seasons

＊

＊

＊

T

Hilton Starwood Hotels & Resorts Worldwide, Inc. Fairmont & Raffles

Cotai Strip

＊

＊

＊

P

Cotai Strip

＊

＊

＊

P

Cotai Strip

＊

＊

＊

P

Notes: B—In Business; C—Temporary Closed; T—Under Construction; P—Planning; R— To be Rebuilt; E—Expanding # Cooperation with a third party or subcontract to a third party * Galaxy Casino, S.A. has been acquired by Galaxy Entertainment Group Ltd. PBL Diversoes (Macau), S.A. has been injected back to Melco PBL Gaming (Macau) Ltd., after acquiring the subcontract from Wynn Resorts (Macau) S.A.. % Mocha was formed by SJM and Melco International Development Ltd. The latter then formed Melco PBL Entertainment (Macau) Limited with Publishing & Broadcasting Limited. In March 2006, Melco PBL Entertainment expressed its will to bid for Wynn’s subcontract and jointly formed PBL. Diversoes (Macau), S.A. with two other syndicates. The trade was approved by the MSAR government on September 11, 2006. PBL Diversoes (Macau), S.A. was renamed Melco PBL Gaming (Macau) Ltd. in October 2006.

211


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214

Cataloguing in Publication Data The Sociology of Gambling in China TJ Cheng

ISBN 978-7-5097-0615-2 Published by Social Sciences Academic Press (China) 13F, 15F, A/B Tower of Hua Long Plaza, Bldg 3, Jia No.29, Beisanhuan Zhonglu, Xicheng District, Beijing, China Postcode: 100029 ISBN 978-1-84464-085-0 Distributed by Paths International Ltd. (UK) PO Box 4083 Reading RG8 8ZN U.K. ©2011 by Social Sciences Academic Press (China) Editor: Xu Chunshan,Wang Xiaoqing

All rights reserved. No part of this book may be reproduced by any means without written permission from the publisher.

The Sociology of Gambling in China

The mathematics of gambling

The mathematics of gambling

The Sociology of Industry (Studies in Sociology)

The mathematics of gambling

Gambling and Problem Gambling in Britain

The Economics of Casino Gambling

Sociology of Diagnosis (Advances in Medical Sociology)

In Praise of Sociology

The Gambling Debate

Economics of Gambling

The Gambling Man

The International Handbook of Sociology (SAGE Studies in International Sociology)

The Sociology of Religion (BSA New Horizons in Sociology)

Work and Organizations in China After Thirty Years of Transition (Research in the Sociology of Work)

The Sociology of Religion (BSA New Horizons in Sociology)

The Gambling Man

Gambling Men

The Sociology of Religion

The sociology of religion

The Sociology Of Taste

Sociology of the Renaissance

The Study of Sociology

The Problem of Sociology

The basics of sociology

The Sociology of Marx

The Sociology of Ethnicity

Lay the Favorite: A Memoir of Gambling

The Sociology of Loyalty

The Decomposition of Sociology

The Sociology of Gambling in China

The mathematics of gambling

The mathematics of gambling

The Sociology of Industry (Studies in Sociology)

The mathematics of gambling

Gambling and Problem Gambling in Britain

The Economics of Casino Gambling

Sociology of Diagnosis (Advances in Medical Sociology)

In Praise of Sociology

The Gambling Debate

Economics of Gambling

The Gambling Man

The International Handbook of Sociology (SAGE Studies in International Sociology)

The Sociology of Religion (BSA New Horizons in Sociology)

Work and Organizations in China After Thirty Years of Transition (Research in the Sociology of Work)

The Sociology of Religion (BSA New Horizons in Sociology)

The Gambling Man

Gambling Men

The Sociology of Religion

The sociology of religion

The Sociology Of Taste

Sociology of the Renaissance

The Study of Sociology

The Problem of Sociology

The basics of sociology

The Sociology of Marx

The Sociology of Ethnicity

Lay the Favorite: A Memoir of Gambling

The Sociology of Loyalty

The Decomposition of Sociology

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