GAMBLING revenue in glitzy Macau, the world's largest gaming destination, broke a new record in October, rising 42 percent year on year to 26.9 billion patacas (US$3.4 billion), with relentless demand from Chinese mainland visitors continuing to defy concerns over the global economy and a domestic credit squeeze.

Widely expected to hit a new record because of the mainland's Golden Week holiday, October revenue easily beat August's high of 24.8 billion patacas, according to government figures released yesterday.

Worries that a credit squeeze on the mainland would impact Macau's lucrative junket industry has sapped sentiment over the last two months despite the junkets, facilitators who advance loans to wealthy mainland gamblers and collect debts afterwards, saying it was business as normal.

Casino executives have said they do not expect growth to stay at 40-50 percent indefinitely, but that fundamentals of the lucrative industry remain solid because of factors, including still untapped mainland demand, an appreciating yuan and rising wages.

The October revenue figure of US$3.4 billion is more than half of what Las Vegas is expected to make for the whole of 2011.

"This may imply that the market has not shown any signs of slowing at all. It is a very good indication," said Victor Yip, analyst for UOB Kay Hian brokerage in Hong Kong.

Infamous as a one-time hotbed for piracy and smuggling, Macau has pushed companies to expand their non-gaming amenities to attract more families and leisure tourists. The city sees a monthly visitor inflows of close to 3 million.

Yet Macau pales in comparison to Las Vegas in non-gaming revenue spending, with relatively few cash-rich mainlanders arriving with the intent of indulging in spas or watching shows.

Fitch Ratings said in a report released last Friday that it had seen no evidence that tighter credit conditions and slowing growth on the mainland were pressuring gaming demand in Macau.