Have you ever heard about a government that pays its citizens for merely living under its jurisdiction? Residents of Macau might be the luckiest people in the world as their administration takes care of their pockets just because, well, they’re residents of Macau.
The southern Chinese city, which has been the world’s gambling capital for more than a decade (and of course many residents know when to split in blackjack), has been proving to be profitable for its citizens. Under the Wealth Partaking Scheme which was launched in 2008, Macau’s residents receive a handsome cash dividend every year.
Its booming casino industry, which sees the tiny city make seven times as much profits from gambling as Las Vegas, has resulted in Macau’s government having more money than it could spend. But this predicament for their administration has been a boon for the city’s almost 700,000 residents.
According to the government, the Wealth Partaking Scheme sees each permanent resident of Macau receiving about $1,200/year. The non-permanent residents are also taking advantage of this scheme as they receive almost $670 per annum.
How does Macau’s Government afford To Pay Its Citizens?
Although the city’s gambling revenues dropped by 3.3% in 2016, they were still enough for its casinos to generate an annual profit of $28.0 billion. Perhaps that’s why, during the five years between 2011 and 2016, its casinos paid $70 billion in taxes to Macau’s government.
For this reason, the Special Administrative Region’s foreign reserves stood at a whopping $20.17 billion at the end of 2017. Its administration has zero public debt and enjoys a surplus of almost $5 billion after taking into account its revenues and expenditures.
How does Macau’s gambling industry compare with that of Las Vegas?
As far as the size of its territory and the number of casinos on their respective soils are concerned, Macau lags behind Las Vegas. While the Sin City covers around 350 square kilometers and has over 80 casinos, the southern Chinese city covers just over 30sq. Km and hosts just over 40 casinos.
Despite being short on both counts, Macau leads in revenue. For instance, while an average gambler spends only $156 in Sin City, they lay down, on average, $1,354 in Macau. Perhaps that’s the reason why it’s Macau and not its American counterpart that is the world’s gambling capital.