Macao Tycoon Gets 18-Year Casino Business Contract

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Last updated at: (Beijing Time) Friday, March 29, 2002

Macao Tycoon Gets 18-Year Casino Business Contract

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Macao casino magnate Stanley Ho will maintain and revamp his once-monopolized gambling business inthe special administrative region (SAR) for another 18 years afterhe signed Thursday the new Gambling Licence agreement with Chief Executive Edmund Ho Hau Wah.

The Macao Gaming Holding Company (SJM) -- of which Stanley Ho is the managing director -- became one of the three successful applicants for casino licences on February 8. The other two were Las Vegas-backed Wynn Resorts (Macao) Limited and Galaxy Casino Company Limited, a Hong Kong-Macao joint venture.

Addressing the agreement to the press, Francis Tam Pak Yuen, secretary for economy and finance, said that the SJM should pay tax amounting to 35 percent of its total income to the SAR government annually, up from 31.8 percent currently.

Stanley Ho has promised to spend 4.7 billion patacas (587.5 million U.S. dollars) in upgrading his flagship Lisboa Hotel, getting involved in construction of the Fisherman's Wharf, building an amusement park and revamping old urban areas in the coming five years.

"We will enhance our efforts in the development of tourism and entertainment and in the promotion of culture in Macao for the benefit of the whole community," he said.

The Gaming Industrial Regime, which was passed by the Legislative Assembly last August, stipulates that casinos should contribute to tourism and economic development and social stability in Macao.

Ho stressed two points at the press conference. "First, being in the gaming industry for 40 years, the Macao Tourism and Amusement Company (STDM), or the SJM's parent company, has contributed significantly not only to the development of the gaming industry, but that of the Macao economy as a whole."

"Second, all along, putting the interests of the community as priority, we support and cooperate with the government to enable asmooth liberalization of the gaming industry."

He said that the SJM would continue to operate the existing 11 casinos of the STDM and retain all casino staff. "For the time being, we will remain unchanged."

Negotiations on contract conditions are now still under way between Wynn Resorts and Galaxy Casino and the SAR government, according Tam.

The gambling industry in Macao, known as the "Oriental Monte Carlo", had a history of more than 150 years. As early as 1847, a decree was enacted for franchised gambling business in Macao. In 1961 the then government publicly sought concession for the gambling industry and in the following year, the STDM obtained it and has since operated this business up till now.

The SAR government proposed open competition in the gambling market two years ago, posted rules on tenders last October and accepted 21 bidding papers in November, bringing in cut-throat competition among the bidders including those from world famous casinos.

The move is seen widely as a bold decision of the government tooptimize the gambling industry, which contributes to roughly 30 percent of Macao's gross domestic product (GDP) and employs more than 10,000 local residents now.

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