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| Macau – city of opportunity for Vegas operators |
7/29/2001 Developing the Pacific Rim gaming market looks lucrative for investors The city of Macau, on the southeast shore of mainland China, is opening up as a potentially lucrative area for the development of Las Vegas-like casinos. Since 1962, Macau's gaming industry has been in the hands of one man, Stanley Ho Hung-Sun. Ho controls 10 casinos in Macau, with an estimated gross income of $2 billion a year. Now, as the government debates the continuation of his monopoly, some of Las Vegas?s biggest names are paying close attention. The possibility of capturing a gaming license in an established Pacific Rim gaming market has caught the interest of the Las Vegas Sands Inc., parent company of the Venetian, and MGM MIRAGE. Both companies are currently looking into the possibility of establishing casino resorts on the Taiwanese island of Penghu. Jim Murren, president and chief financial officer of MGM MIRAGE, said, ?Macau is something everyone's aware of?. It's an island right off Hong Kong, with an extraordinarily dense population base. It's been consistently a very big market, and there are not that many big (gaming) markets in the world.? There are drawbacks though, including the fact that Macau has historically been one of the most corrupt gaming markets in the world. The fear of a scandal for well-established Nevada licensees is also a foremost thought in their minds. |
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