Gambling revenue in Macao, the world's biggest gaming destination, rose 13.2 percent in April year-on-year, buoyed by strong demand from wealthy mainland gamblers.

April's revenue at 28.3 billion patacas ($3.54 billion) was in line with analyst forecasts and was the second highest monthly revenue total this year after a record of 31.3 billion patacas in March.

Macao, a Portuguese colony until 1999, is the only place in China where casino gambling is legal.

Home to half a million people, monthly gambling revenues are more than double the Las Vegas strip's annual take of $6 billion.

Revenues in May are expected to be strong due to a holiday at the start of the month.

Located on China's southern coast, Macao depends on high-spending VIP gamblers, or "whales," who spend 1 million yuan ($160,700) at a time.

While the territory is increasingly dependent on the fast-growing mass market of mainland visitors, more than two-thirds of casino revenues still come from VIP spenders.

The VIP sector is highly reliant on junket operators to attract millionaire mainland spenders. Casino operators pay hefty commissions to the junkets for providing the services.

The mass-market segment, made up of cash-rich mainland mom-and-pop visitors, are a key target for casino operators and Macao's government who are pushing to diversify.

Non-gaming ventures such as shows, retail and food and beverage still make up a fraction of overall revenues compared to Las Vegas where non-gaming earnings outweigh gambling revenue.

Casinos such as Las Vegas Sands Corp, Galaxy Entertainment Group Ltd and Melco Crown Entertainment Ltd are developing attractions to appeal to a wider array of visitors.

Sands China Ltd, Sheldon Adelson's Macao unit, announced a licensing agreement with movie studio DreamWorks Animation this week, enabling the casino to use characters like Shrek and Po from the animated film Kung Fu Panda in the resorts to attract leisure and family visitors.

Guests at Sands' Venetian and Cotai Central resorts will be able to see and interact with the characters during their stays, according to California-based DreamWorks. The deal takes effect on July 1.

Reuters