• Subscribe
  • Magazines
  • About
  • Contact
  • Advertise
Saturday 5 July 2025
  • zh-hant 中文
  • ja 日本語
  • en English
IAG
Advertisement
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
    • Africa
    • Australia
    • Cambodia
    • China
    • CNMI
    • Europe
    • Hong Kong
    • India
    • Japan
    • Laos
    • Latin America
    • Malaysia
    • Macau
    • Nepal
    • New Zealand
    • North America
    • North Korea
    • Philippines
    • Russia
    • Singapore
    • South Korea
    • Sri Lanka
    • Thailand
    • UAE
    • Vietnam
  • Events
  • Contributors
  • SUBSCRIBE FREE
No Result
View All Result
IAG
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
    • Africa
    • Australia
    • Cambodia
    • China
    • CNMI
    • Europe
    • Hong Kong
    • India
    • Japan
    • Laos
    • Latin America
    • Malaysia
    • Macau
    • Nepal
    • New Zealand
    • North America
    • North Korea
    • Philippines
    • Russia
    • Singapore
    • South Korea
    • Sri Lanka
    • Thailand
    • UAE
    • Vietnam
  • Events
  • Contributors
  • SUBSCRIBE FREE
No Result
View All Result
IAG
No Result
View All Result

Pansy Ho’s ‘non-compete’ deal with MGM Resorts—the thin edge of a bigger anti-competitive wedge?

Newsdesk by Newsdesk
Tue 17 May 2011 at 04:46
3
SHARES
70
VIEWS
Print Friendly, PDF & Email

Is MGM Resorts International’s ‘non-compete’ agreement with Pansy Ho compatible with Macau’s legal framework for its gaming industry?

If ‘yes’, what if anything will the agreement do to the competition landscape in Macau? If ‘no’, what is the Macau government going to do about the deal?

Why has MGM Resorts decided such an agreement is necessary with its own Macau joint venture partner? The answer is that it looks—for the first time since the Macau gaming market was liberalised in 2001-2002—as if Macau is going to allow an individual (i.e. Pansy Ho) to be both shareholder and director of two Macau gaming operators simultaneously. Even Stanley Ho has never managed that. When his son Lawrence’s company Melco International entered a Macau gaming joint venture with Australian businessman James Packer in 2006, Dr Ho had to resign from his chairmanship of Melco. In retrospect, however, that wasn’t because of pressure from the Macau authorities worried that Dr Ho couldn’t be an executive of SJM Holdings and Melco at the same time, but because the Australian regulators wouldn’t sign off on the Melco-Packer JV as long as Dr Ho was still in the picture.

So why might Pansy Ho be allowed to saddle and ride two Macau gaming horses at once? The first possibility is that US regulators might not raise any objections, though several are apparently looking closely at the situation. The second is that the impetus is coming from inside Macau at high political level. There’s a desire to ensure a peaceful succession at STDM, the investment company that Dr Ho used to chair, and by extension at STDM’s casino operating unit SJM Holdings. That follows months of in-fighting among Dr Ho’s surviving consorts and offspring. It may also be linked to Macau’s tendency to tailor rules to suit the commercial needs of the small number of influential families that have run the place for generations.

For years, Pansy Ho has been touted as a ‘successor’ to Dr Ho at STDM. This was not particularly surprising, given the dynastic way that even public or partly-public companies tend to be run in Greater China. The difficulty is that—thanks to a sub-concession bought from her father, stemming from his gaming licence—Ms Ho is already a player in the Macau market, via her joint venture with MGM Resorts. That JV was one of five new concessionaires and sub-concessionaires allowed into the market—theoretically as competition to STDM (and latterly SJM) following liberalisation.

For Ms Ho simultaneously to have executive and shareholding roles in MGM China and in STDM looks like a conflict of interest to some observers. MGM Resorts’ non-compete agreement presupposes Ms Ho will be a person of influence at STDM, even if technically she’s only a minority shareholder there. That means she will be expected to wield that influence either passively—by leaving the room or abstaining when a piece of STDM business relevant to MGM China’s interests is discussed—or to wield the influence actively, by seeking to steer STDM, SJM or Shun Tak away from a course of action that might hurt MGM China’s interests. The latter is explicitly mentioned in the agreement.

So Ms Ho has either to wield influence at STDM to make MGM Resorts happy—in which case she risks making the rest of the Macau market operators unhappy and possibly her fellow directors at STDM—or she will have to choose between MGM China or STDM. Some think it would be better for the proper functioning of the market if she were forced to choose between the two now.

But where’s the incentive if she can have her cake and eat it? And why does any of it matter if she’s a minority shareholder in both companies and everyone’s making money? They’re all good questions, and find echoes in anti-competitive practices that have been enthusiastically pursued for years in Hong Kong, where specifically, price-fixing for many goods and services abound.

IAG e-Newsletter makes no suggestion that price-fixing is the aim of the MGM Resorts non-compete agreement. But here’s why a non-compete agreement might cause problems for Macau. Macau depends for its international credibility as a gaming investment market on the notion that over time its regulatory and legal standards are converging with international standards, not diverging. North America and the European Union have outlawed most forms of anti-competitive agreement—as well as their ugly big sister, price-fixing cartels. It could therefore make overseas gaming regulators distinctly uncomfortable—and possibly harm Macau investors’ interests directly or indirectly—were the Macau government to encourage or simply allow by default, an anti-competitive climate and anti-competitive practices to develop in relation to the local casino market.

In theory, anti-competitive practices are illegal in Macau. Article 21, paragraph 3, of Macau Law 16/2001 states: “Any form of arrangement amongst concession companies or associated companies of a concession company which may obstruct, restrict, impair or destroy fair competition shall be prohibited”.

The clause was inserted in that particular law—a statute setting out the framework for the Macau gaming industry after market liberalisation—because Macau did not have (and still does not have) a law dealing with restrictive trade practices. Whether Article 21, paragraph 3 will ever be enforced is another matter.

For the full story on Pansy Ho’s anti-compete agreement with MGM Resorts, read the June edition of Inside Asian Gaming.

RelatedPosts

Team Spirit

Shun Tak’s Macau hotels enjoy occupancy rate surge in 2024 but group losses widen

Tue 25 Mar 2025 at 21:43
MGM announces pay rises of between 2.5% and 6.5% for staff

MGM announces salary increase for staff to be implemented in March

Tue 21 Jan 2025 at 17:33
MGM eyes Macau peninsular domination via latest IR rejuvenation projects

MGM announces discretionary bonus for 95% of team members

Tue 31 Dec 2024 at 11:49
MGM’s new resident show “Macau 2049” holds preview screening, to open officially this Sunday

MGM’s new resident show “Macau 2049” holds preview screening, to open officially this Sunday

Thu 12 Dec 2024 at 05:27
Load More
Tags: MGMPansy Ho
Share1Share
Newsdesk

Newsdesk

The IAG Newsdesk team comprises some of the most experienced journalists in the Asian gaming industry. Offering a broad range of expertise, their decades of combined know-how spans multiple countries across a variety of topics.

Current Issue

Editorial – An inconvenient truth

Editorial – An inconvenient truth

by Ben Blaschke
Fri 27 Jun 2025 at 15:21

It’s understandable that political observers, academics and members of the public in greenfield jurisdictions would express caution around the legalization...

Light & Wonder’s Siobhan Lane

Light & Wonder’s Siobhan Lane

by Ben Blaschke
Fri 27 Jun 2025 at 15:19

Siobhan Lane, Light & Wonder’s highly experienced CEO of Gaming, speaks to Inside Asian Gaming about the company’s ongoing transformation...

Honesty is the best policy

Honesty is the best policy

by Ben Blaschke
Fri 27 Jun 2025 at 14:13

The Thailand Entertainment Complex Roundtable brought industry stakeholders, politicians and supporters of the government’s Entertainment Complex Bill face to face...

Sri Lanka’s casino industry

Sri Lanka’s casino industry

by Shaun McCamley
Fri 27 Jun 2025 at 13:36

Industry veteran Shaun McCamley delves into the complex history of Sri Lanka’s casino industry at a time when the country...

Evolution Asia
Your browser does not support HTML5 video.
Aristocrat
GLI
Nustar
SABA
Mindslot
Solaire
Hann
Tecnet
NWR
Jumbo
568Win

Related Posts

Winds of change

As Philippine lawmakers push to crack down on the online gaming sector, PAGCOR promises to impose “any and all” regulations signed into law

by Ben Blaschke
Sat 5 Jul 2025 at 08:16

Philippine gaming regulator PAGCOR said Friday that it is not responsible for determining which laws are put in place to govern online gambling but will continue to perform its duty in regulating as per “any and all” relevant regulations signed...

Macau planning to ban all forms of advertising for gambling activities

Macau planning to ban all forms of advertising for gambling activities

by Pierce Chan
Fri 4 Jul 2025 at 15:04

The Macao SAR Government is planning to amend advertising laws and regulations, proposing a ban on all forms of advertising for gambling activities – including the display of gambling equipment in advertisements. Macau’s Economic and Technology Development Bureau stated on...

Wynn Al Marjan Island releases first renderings of uber-luxury Enclave suite and apartment offering

Wynn Al Marjan Island releases first renderings of uber-luxury Enclave suite and apartment offering

by Ben Blaschke
Fri 4 Jul 2025 at 05:59

Wynn Resorts has released first images of its elite suite and apartment offering at Wynn Al Marjan Island, to be known as Enclave and located on the uppermost levels of the UAE integrated resort. According to information published overnight, the...

The 2024 Asian Gaming Power 50

Bally’s ready to pull out of Star rescue deal if AUSTRAC issues monster fine

by Ben Blaschke
Fri 4 Jul 2025 at 05:37

US casino operator Bally’s Corp may have to withdraw from its multi-million-dollar rescue of Star Entertainment Group should the embattled Australian firm be hit with a massive fine by AML watchdog AUSTRAC. Bally’s chairman Soo Kim made the revelation –...



IAG

© 2005-2024
Inside Asian Gaming.
All rights reserved.

  • SUBSCRIBE FREE
  • NEWSFEED
  • MAG ARTICLES
  • VIDEO
  • OPINION
  • TAGS
  • REGIONAL
  • EVENTS
  • CONSULTING
  • CONTRIBUTORS
  • MAGAZINES
  • ABOUT
  • CONTACT
  • ADVERTISE

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • Subscribe
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
  • Events
  • Contributors
  • Magazines
  • Advertise
  • Contact
  • About
  • Home for G2E Asia

© 2005-2024
Inside Asian Gaming.
All rights reserved.

  • English