Issue 150
July 28 - August 3, 2003
Volume 3
page 2
 

Macau Magnate Challenged by
Vegas Developers

MANILA, PHILIPPINES – At 81, Asian casino billionaire Stanley Ho makes few concessions to age. The father of 17 children–the youngest of them age six–says he swims every day, plays tennis at least twice a week and enjoys ballroom dancing.

And no, he adds, he hasn't thought of retiring from the helm of Sociedade de Turismo e Diversoes de Macau SARL, or STDM, one of the world’s most profitable casino companies, based in the autonomous south China enclave of Macau.

Ho is going to need that stamina. After monopolizing gambling in the historic former Portuguese colony for the past 41 years, he’s about to be challenged for the first time on his home turf.

The Macau government is permitting two of Las Vegas’s most-powerful casino billionaires–Steve Wynn, CEO of Nasdaq-listed Wynn Resorts Ltd., and Sheldon Adelson, chair of closely held Las Vegas Sands Inc., and its subsidiary, Venetian Casino Resort LLC–to open their own casinos in Macau. The first US-owned casino, Adelson’s Macau Sands, will open by March, according to the Macau Gaming Control Board.

"Stanley has had a very successful operation," says Marc Falcone, New York-based managing director and gambling stock analyst at Deutsche Bank Securities Inc., who visited Macau last year. "But he’s going to face competitive challenges he has never faced before."

Ho has profited handsomely from the gambling trade. Last year, his 11 Macau casinos earned $230 million on revenue of $2.7 billion. That 8.5-percent profit ratio is better than that of any of the top three US gambling companies.

"Why should I feel worried?" Ho asks. He says that as a young man, he had to fight off Chinese triad gangsters and pirates who tried to cash in on his businesses. To further strengthen his hand, Ho is talking to MGM Mirage – which is controlled by another octogenarian billionaire, Kirk Kerkorian, 86–about setting up a joint venture casino adjoining Ho’s Lisboa, according to Manuel Joaquim das Neves, director of the Macau Gaming Control Board.

Investors are betting that Ho can withstand this Las Vegas invasion and continue to prosper. Not everyone is sure this is what Asian gamblers want. Stanley Au, 62, chair of Delta Asia Financial Group, Macau’s biggest locally owned bank, says the Chinese gamblers who patronize Macau’s casinos prefer Stanley Ho’s rough-and-ready casinos and may not find Las Vegas-style resorts as attractive as the newcomers think.

Will that experience translate into more success for Ho in the newly competitive Macau? So far, investors are betting that it can.

 

 


Mississippi Hard Rock Hotel-Casino Approved - JACKSON, MS – The Mississippi Gaming Commission on July 23rd approved the site and development of a Hard Rock Hotel and Casino in Biloxi. The new casino is expected to open in May 2005 at a site adjacent to Beau Rivage Casino and Hotel in Biloxi. Premier Entertainment will own and operate the $255 million resort. "I think Hard Rock brings a brand to the coast that is recognized worldwide," said Joe Billhimer, president and chief operating officer of Premier Entertainment.

The development will feature a 10-story hotel with 304 rooms, a Hard Rock Cafe, a 1,200-person capacity Hard Rock Live Performance venue, a pool with a beach area and a nightclub on the top floor of the hotel.

Isle Set to Celebrate 11th Anniversary - MISSISSIPPI - The Isle of Capri Casino Resort, the first casino to open in the South, will celebrate its 11th anniversary with special giveaways and entertainment starting Monday, July 28, 2003.

Beginning on Monday, the Isle will give away up to $20,000 in four days. Players club members can receive one free entry daily and earn additional entries for every 10 slot points earned or by qualifying table play. Drawings will be held at 9 p.m. July 28 through July 31. Daily musical entertainment begins at 7 p.m. and includes Lynn McDaniel, Coconut Dave, Keylime and DAR LA WAN. A Carmen Miranda lookalike and the Second Story Stilt Walkers will perform in the casino from 5 p.m. to 11 p.m. nightly.

Maryland Considers Slots - BALTIMORE, MD – Picture a half-dozen glittering, slot machine-filled casinos - built and owned by the state of Maryland - pumping a steady stream of cash straight into the state treasury.

To opponents, the idea is an impractical, ill-advised encroachment by government into the realm of private business. To supporters, it's a common-sense way to raise money for vital public programs without lining the pockets of politically connected developers and businesses.

It's a debate Marylanders are bound to hear more about as the state weighs again whether to legalize slot machine gambling and, if so, whether to let the government run the enterprise and keep the proceeds as it does with the lottery. House Speaker Michael E. Busch has promoted state-owned casino-style facilities as an alternative to Gov. Robert L. Ehrlich Jr.'s proposal to put slots at four racetracks.

And the state - rather than a few racetrack owners - would pocket most of the cash. Some of the money would be designated to boost racing and finance racetrack improvements.

Busch said he still thinks that using slots to raise revenue is poor public policy. But if slots become inevitable, he said, the state has to make sure it crafts the best deal for taxpayers. A spokesman for Ehrlich said the administration is reserving judgment until it learns more about the public ownership idea.

Gloria Estefan

Nero couldn't sing and Augustus couldn't dance, but when the Latin rhythms of Gloria Estefan take over The Colosseum at Caesars Palace, October 10-19 (dark October 13, 14 and 15), the entire Roman Empire is sure to shake.

Coinciding with the release of Estefan's first English language album in six years, "Unwrapped," the superstar recording artist will bring her unique blend of pop and Latin music to Las Vegas for seven shows entitled "Gloria Estefan Live & Unwrapped." Choreographed by renowned film and television director Kenny Ortega ("Dirty Dancing," "Chicago Hope," "Ally McBeal," among others), "Gloria Estefan Live & Unwrapped" will be an explosive multimedia experience mixing music, dance and costumes into an unforgettable concert experience.

Price:
$175, $150, $127.50, $87.50

Price Note:
May not include all taxes & fees.

Show Time:
8:00 p.m.

Reservations:
Reservations Recommended

For more information please call: (702) 474-4000
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