Macau got its first taste of a competition in the casino business after 4 decades of monopoly by Stanley Ho. Dr. Ho wasn't too concerned, rightly seeing competition as a way of increasing the pot for all operators and helping to keep his company on its toes. The 35,000 people who broke doors and barriers to get into the place clearly agreed. Sure a well-placed but false rumour of free 200 pacatas chips didn't hurt but gambling-mad China loves a good casino invasion. Macau already brings in about US$4.5 billion in casino revenue, compared to Las Vegas's US$5 billion. The new casinos will only add to the revenue pot because of network effects - more casinos induce more gambling. It is not a zero-sum game.

That's why Dr. Ho was smiling at the opening of his new rival yesterday. It is a handy lesson for the numerous cartels that run Hong Kong's "free" economy. Competition works and if your company is good enough you will benefit from it. Just don't expect the cartels to be bashing down the door demanding it.