But analysts worry that the gaming halls could bring a range of new problems. Some analysts worry that Asia's casinos could form the backbone of a new financial system for the region's crooks. Analysts say the region's governments will need strong new initiatives, like autonomous casino regulators and cross-border cooperation, if they want to reap the benefits of casinos while minimizing the costs. That will require the political will to put good governance above the powerful vested interests that the industry attracts. They are putting economic imperatives first at the expense of regulatory standards and social costs.
Casinos are a very small part of the gambling industry in Asia.
More than other types of gambling, though, casinos can jump-start local economies, usually by attracting tourists who spend on hotels and shopping. They are also a major source of tax revenues. Casinos kick in more than half of Macau's government revenues and a full one-percent of state revenues in the Philippines. A more important public-policy reason for legalizing casinos is to wipe out illegal ones. Powerful vested interests in illegal casinos are a big reason why governments in Japan and Thailand have found it hard to open legal ones.