Inside Asian Gaming

June 2009 | INSIDE ASIAN GAMING 11 had to resign as chairman of Lawrence Ho’s company Melco International Development before the Australian regulators would sign off on the joint venture. New Jersey’s position on Pansy Ho has been criticised in some quarters as being tainted by politics. New Jersey is, however, atypical of most US states in that its chief law officer, the state attorney general Anne Milgram, was appointed by the governor, not elected by popular ballot. This arguably makes her and her officials less likely to engage in political grandstanding than those in other state jurisdictions. Lobby groups for and against gaming certainly seek to play an active role when gaming licensing is discussed in the US. It’s on public record that a group calling itself Family Focus and stating its opposition to all casino gaming, distributed a 300-page packet of information including negative press cutting on Dr Ho to both the Nevada gaming authorities and those in New Jersey prior to their consideration of the MGM MIRAGE-Pansy Ho deal. Business savvy Interestingly, New Jersey’s governor Jon Corzine, a former US Senator, is a largely self- financing candidate as a multi-millionaire in his own right. He doesn’t therefore depend on money from lobbying interests to get elected. He spent US$38 million alone on his 2005 gubernatorial campaign, according to The New York Times —exactly twice the amount of his opponent. How he made his money is an even more interesting issue, and may be relevant to the level of fiduciary scrutiny in New Jersey regarding Pansy Ho. Governor Corzine is a former chairman and co-chief executive of the investment bank Goldman Sachs, and was one of the senior executives who oversaw its expansion into Asia in the 1990s. If anyone knows how to readandinterprettheduediligencepassages of an IPO document, it’s Mr Corzine. He left Goldman Sachs in 1998 but remained a stockholder. Time magazine reported he made US$400 million when Goldman Sachs was floated as a public company in 1999. Just as interestingly Mr Corzine’s co-CEO at Goldman Sachs was Henry Paulson, who served as US Treasury Secretary from 2006 until January this year. This is the same US government department that made the original allegations about Dr Ho’s links to Chinese organised crime back in 1988. Awkward timing New Jersey’s report comes at an embarrassing moment for the gaming industry, given that Dr Ho is a guest of honour at this year’s G2E Asia conference and exhibition in Macau. He will be presented with a G2E Asia Visionary Award at the event—only the second time the accolade has been given. The award recognises outstanding leaders who have contributed to the success and expansion of the Asian gaming entertainment market. Dr Ho will no doubt receive the award from the American Gaming Association and the event organisers Reed Exhibitions with thanks and good grace, but as he accepts the applause of the conference audience, he will be aware that a section of the US law enforcement community still regards him with suspicion. Whether the alleged and unproven sins of a father should be visited upon the father’s daughters and sons will be revealed in New Jersey in due course. Cover Story MGM Grand Macau VIP lobby