Inside Asian Gaming

December 2009 | INSIDE ASIAN GAMING 7 Cover Story 2000 July – The Macau Gaming Committee is formed to study the legal issues, administrative regulations and policies relating to the development of the territory’s gaming industry. August – The Committee hires Arthur Andersen Worldwide to advise and assist the government in the development of the gaming industry. December – Macau’s Statistics and Census Service estimates 9.1 million people visited the territory during the year. 2001 August – Macau’s Legislative Assembly passes Law no. 16/2001, entitled ‘Legal Framework for the Operations of Casino Games of Fortune’. The document sets out the operational requirements for casinos, eligibility requirements for major shareholders, standards for management of the casinos and the rate of gaming tax to be levied. October – Edmund Ho signs Administrative Regulation no. 26/2001, stipulating the open bidding process for would-be new operators in the market, as well as requirements on eligibility and financial capability. A n eight-member Casino Concessions Committee is set up by Executive Order. It is asked to coordinate work on the tendering process and make recommendations to the Chief Executive once concessions have been granted. November – In compliance with Regulation 26/2001, the Committee officially starts the tendering process. December – The tendering process closes on the 7th. A total of 21 bids are received during the period from Macau, Hong Kong, the US, Malaysia, Australia, the UK and Taiwan. Three companies are disqualified at this stage for failing to provide sufficient documentation. The 40-year monopoly gaming concession of Dr Stanley Ho, held by his investment vehicle STDM, officially ends on the 31st. The government announces it will issue three new concessions, citing the desire to develop four products: general tourism, gaming, conventions and exhibitions. The government extends STDM’s monopoly by threemonths while itmakes final decisions on new licences. 2002 February – the government announces the results of the bidding. Concessions are granted to: Sociedade de Jogos de Macau (SJM), a subsidiary of STDM; Galaxy Casino, S.A. andWynn Resorts (Macao) S.A. March & June – Concession contracts are signed with the parties. December – The government allows an amendment to Galaxy’s concession contract. It enables Galaxy to have a sub- concession relationship with Venetian Macao S.A., a unit of Las Vegas Sands Corp. Following the issuance of that sub- concession, SJM and Wynn also ask for and are given, sub-concessions. The two later sign sub-licensing deals with, respectively, MGM Grand Paradise, S.A. and Melco PBL Jogos (Macau), S.A. 2003 The new concessionaires organise fundingandplanning for the construction of new venues. 2004 May – Las Vegas Sands Corp opens its first property in Asia, and the first foreign operated casino in Macau. Sands Macao, a mass market-focused property with 277 tables, costs a modest US$265 million and is an immediate hit with players, achieving payback within a year. July – Hong Kong-listed Galaxy EntertainmentGroupopensWaldoCasino on Macau peninsula. Despite launching with only 38 gaming tables—seven times fewer tables than Sands Macao—Galaxy’s Waldo managed to outgross the LVS newcomer in 2004 because of Waldo’s focus on VIP gaming. 2005 January – Las Vegas Sands Corp (LVS) starts a new drive to recruit high roller players in Macau. The marketing campaign is a success, taking LVS’s share of the VIP table market from 2% of rolling chip turnover at the start of 2005 to 9.8% by year-end, even though the company has only one Macau property. December –The average lengthof stay for Macau visitors remains stubbornly at 1.2 nights, despite an upgrade in facilities and room supply during the year. Tourism officials admit Macau remains overwhelmingly a day trip market for low- income visitors from the Mainland and high- income high rollers fromHong Kong and the Mainland—with not much in between. Macau’s Statistics and Census Service estimates 18.7 million people visited the territory during the year—more than double the number recorded for 2000. The opening day stampede at Sands Macao