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Macau, China the next Vegas? Single Men...
Macau bets future on Asia's high rollers
Sun Apr 21, 5:27 AM ET
By Tan Ee Lyn
HONG KONG (Reuters) - Big Las Vegas casinos learned long ago to cater to every whim of Asian high rollers, some of whom think nothing of jetting in and gambling a million dollars or so.
Now they are eager for more, preparing to open up right on the doorstep of communist China, home to more than a billion people and some of the world's most passionate gamblers.
U.S. casino moguls Steve Wynn and Sheldon Adelson won two of three casino licences offered at a recent auction and have pledged more than a billion dollars to bring some Las Vegas glitz to the tawdry territory of Macau, on China's southern coast.
For investors such as Wynn and Adelson, Macau's attraction cannot be overstated.
While the hundreds of casinos in the state of Nevada grossed combined gaming revenue of US$9.5 billion in 2001, Macau's 11 gambling halls took in a mind-blowing US$2.5 billion.
"China, more and more so, is becoming a very, very important market," said Allan Zeman, a close associate of Wynn, and one of the biggest landlords in Lan Kwai Fong, Hong Kong's premier entertainment street.
U.S. casinos woke up to Asia's gambling mania in the 1970s when Japanese businessmen arrived with suitcases full of money. But when Japan's economy started going downhill, the wealthy Chinese diaspora became a force to be reckoned with.
Tiny Macau has long been a magnet for gamblers from China and nearby Hong Kong where casinos are illegal. Though the former Portuguese enclave returned to China in 1999, it was allowed to keep its freewheeling ways for 50 years.
Billions are gambled and lost in the territory every year and industry sources say that is just the tip of the iceberg.
"China's underground gambling market is estimated at US$362.5 billion a year. Even if just two percent comes to Macau, it would be enormous," said gaming expert David Chow, a Macau legislator.
GAMBLING MAD
High-rollers from China and Taiwan do not bat an eyelid gambling away more than HK$10 million (US$1.28 million) each time they visit Macau, said a source in the casino industry.
The same can be said of Chinese gamblers in other parts of the world.
"We haven't even seen the real power of the Chinese gambling streak yet," said one tour operator who arranges trips to Las Vegas for some of Southeast Asia's wealthiest ethnic Chinese.
"Basically all Chinese have the gambling gene."
For gamblers used to the relative calm of Las Vegas, the feeding frenzy in Macau can be a bit of a shock.
Crowds three or four deep jostle at blackjack tables. Gamblers pick up their cards and bend them tightly, a no-no in Las Vegas, before slowly peeking at what lady luck has brought.
Having a seat at the table does not mean you will get to play the hand you are dealt. Spectators can place bets on any position at the table. The gambler with the biggest bet controls the hand.
It is not uncommon for one player to control every hand on the table.
Really high-rollers prefer to place their bets in quieter private gambling rooms, usually trying their luck at baccarat.
Unlike Vegas, it is all gambling. No scantily clad waitresses bring clients free drinks and there are no circuses or shows.
HEY BIG SPENDERS
An entire industry has sprung up catering to the Asian gambling craze. Many are getting rich just getting the rich to the casinos.
A phone call to a gambling tour operator from a high-roller triggers a mobilisation of military-like precision. First-class plane tickets are delivered and the best hotel suite and even favourite home dishes are prepared -- all on the house, one tour operator told Reuters.
"It's hard to say how much they spend, a million (U.S.) dollars would be accurate. Some spend it over a few days, some in a few minutes," the tour operator said.
"You get female company if you want, they line it up for you, everything you want you get. If they classify you as the highest of top rollers, the sky's the limit," said one high-roller.
Vegas and Australia are the top picks for many Asian gamblers, he said. Casinos there are seen as more glamorous and exciting than in Macau.
They also offer entertainment for the whole family.
Macau, on the other hand, is packed with saunas, massage parlours and karaoke lounges largely catering to single men. After sundown, Eastern European prostitutes line the blocks near some of the bigger gambling halls.
"Many of the high rollers from Asia won't go to Macau because it doesn't have the best reputation," Zeman said.
To try to revitalise its image, Macau recently asked gaming companies worldwide to bid on new casino concessions.
Wynn and Adelson are only too aware of the enormous potential of Asian customers.
Among their plans to makeover Macau's casino scene is Adelson's vision of an indoor version of Venice's Grand Canal, complete with singing gondoliers.
"The thing about Macau is to make it like Las Vegas, where you can have adults and children, a place for the family, for high rollers, for economy and business class people," Zeman said.
"Macau needs to be cleaned up and taken to the next level. That's the only way it will ever make the transition from where it is today to the Las Vegas of Asia."
Sun Apr 21, 5:27 AM ET
By Tan Ee Lyn
HONG KONG (Reuters) - Big Las Vegas casinos learned long ago to cater to every whim of Asian high rollers, some of whom think nothing of jetting in and gambling a million dollars or so.
Now they are eager for more, preparing to open up right on the doorstep of communist China, home to more than a billion people and some of the world's most passionate gamblers.
U.S. casino moguls Steve Wynn and Sheldon Adelson won two of three casino licences offered at a recent auction and have pledged more than a billion dollars to bring some Las Vegas glitz to the tawdry territory of Macau, on China's southern coast.
For investors such as Wynn and Adelson, Macau's attraction cannot be overstated.
While the hundreds of casinos in the state of Nevada grossed combined gaming revenue of US$9.5 billion in 2001, Macau's 11 gambling halls took in a mind-blowing US$2.5 billion.
"China, more and more so, is becoming a very, very important market," said Allan Zeman, a close associate of Wynn, and one of the biggest landlords in Lan Kwai Fong, Hong Kong's premier entertainment street.
U.S. casinos woke up to Asia's gambling mania in the 1970s when Japanese businessmen arrived with suitcases full of money. But when Japan's economy started going downhill, the wealthy Chinese diaspora became a force to be reckoned with.
Tiny Macau has long been a magnet for gamblers from China and nearby Hong Kong where casinos are illegal. Though the former Portuguese enclave returned to China in 1999, it was allowed to keep its freewheeling ways for 50 years.
Billions are gambled and lost in the territory every year and industry sources say that is just the tip of the iceberg.
"China's underground gambling market is estimated at US$362.5 billion a year. Even if just two percent comes to Macau, it would be enormous," said gaming expert David Chow, a Macau legislator.
GAMBLING MAD
High-rollers from China and Taiwan do not bat an eyelid gambling away more than HK$10 million (US$1.28 million) each time they visit Macau, said a source in the casino industry.
The same can be said of Chinese gamblers in other parts of the world.
"We haven't even seen the real power of the Chinese gambling streak yet," said one tour operator who arranges trips to Las Vegas for some of Southeast Asia's wealthiest ethnic Chinese.
"Basically all Chinese have the gambling gene."
For gamblers used to the relative calm of Las Vegas, the feeding frenzy in Macau can be a bit of a shock.
Crowds three or four deep jostle at blackjack tables. Gamblers pick up their cards and bend them tightly, a no-no in Las Vegas, before slowly peeking at what lady luck has brought.
Having a seat at the table does not mean you will get to play the hand you are dealt. Spectators can place bets on any position at the table. The gambler with the biggest bet controls the hand.
It is not uncommon for one player to control every hand on the table.
Really high-rollers prefer to place their bets in quieter private gambling rooms, usually trying their luck at baccarat.
Unlike Vegas, it is all gambling. No scantily clad waitresses bring clients free drinks and there are no circuses or shows.
HEY BIG SPENDERS
An entire industry has sprung up catering to the Asian gambling craze. Many are getting rich just getting the rich to the casinos.
A phone call to a gambling tour operator from a high-roller triggers a mobilisation of military-like precision. First-class plane tickets are delivered and the best hotel suite and even favourite home dishes are prepared -- all on the house, one tour operator told Reuters.
"It's hard to say how much they spend, a million (U.S.) dollars would be accurate. Some spend it over a few days, some in a few minutes," the tour operator said.
"You get female company if you want, they line it up for you, everything you want you get. If they classify you as the highest of top rollers, the sky's the limit," said one high-roller.
Vegas and Australia are the top picks for many Asian gamblers, he said. Casinos there are seen as more glamorous and exciting than in Macau.
They also offer entertainment for the whole family.
Macau, on the other hand, is packed with saunas, massage parlours and karaoke lounges largely catering to single men. After sundown, Eastern European prostitutes line the blocks near some of the bigger gambling halls.
"Many of the high rollers from Asia won't go to Macau because it doesn't have the best reputation," Zeman said.
To try to revitalise its image, Macau recently asked gaming companies worldwide to bid on new casino concessions.
Wynn and Adelson are only too aware of the enormous potential of Asian customers.
Among their plans to makeover Macau's casino scene is Adelson's vision of an indoor version of Venice's Grand Canal, complete with singing gondoliers.
"The thing about Macau is to make it like Las Vegas, where you can have adults and children, a place for the family, for high rollers, for economy and business class people," Zeman said.
"Macau needs to be cleaned up and taken to the next level. That's the only way it will ever make the transition from where it is today to the Las Vegas of Asia."
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