Gambling has been legal in Macau since the 1850's when the Portuguese government legalized the activity throughout the colony. Since then, Macau has become known worldwide as the Monte Carlo of the Orient. And it's no surprise that gambling has become one of the most significant parts of the city's economy.

The casinos only had Chinese games available until Western-style games were introduced in the 20th century. Whereas the most popular Chinese game was once fantan, now the Macau people were able to play blackjack and other sorts of westernized games.

In an attempt to generate a healthy stream of revenue for the government, gambling in Macau was legalized in 1847. In the late 19th century, the government introduced a licensing system for the fantan houses, also known as Chinese gambling houses. It is reported that well over 200 gambling houses were required to pay a very steep gambling rent to the government for allowing them to operate. The first casino monopoly concession was granted to the Tai Xing Company in 1937. However, the company was in fact too conservative to exploit the full economic potential of gambling. The gambling industry witnessed a major breakthrough in 1962 when the government granted the Sociedade de Turismo e Devesoes de Macau (STDM), which is a syndicate jointly formed by Hong Kong and Macau businessmen.

The STDM introduced western-style gaming in unfamiliar territory, and modernized the marine transport located between Macau and Hong Kong. This brought millions of gamblers from Hong Kong every year of its operation. In 1986, the license was extended for another 15 years, but has expired as of 2001. In 2002, the Macau government ended the monopoly system and all together 6 casino operating concessions were granted to the STDM. Among the 6 are Wynn Resorts, Las Vegas Sands, Galaxy Entertainment Group, a partnership with MGM Mirage, Pansy Ho Chiu-king, and the partnership of Melco and PBL. There are 16 casinos operated by the STDM today, and they are still crucial in the casino industry in Macau. In 2004, the opening of the Sands Macau ushered in a new era for Macau gaming.

Macau has made great strides in the gambling industry. Known as the Asian Las Vegas, Macau has a host of casinos built on the territory, with a few opening courtesy of Las Vegas giant companies. Gambling plays a huge role in the economy of Macau. Many Hong Kong and mainland tourists enjoy gambling there. Few local people in Macau visit casinos, however. Though generally, gambling in Macau can be divided into three different categories: casino games, horse racing and greyhound racing. There also have sports betting which takes place and a number of different lotteries.

Macau is different from a lot of other regions, however. With the explosion of the internet and everything it can offer, Macau still refuses to allow internet gaming in their city. This is a place steeped in tradition. They seem to be doing just fine without the draw of online gaming.