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HONG KONG: Gaming mogul Stanley Ho is betting big with the opening of his new casino as competition in the gaming industry heats up in Macau.
The former Portuguese enclave opened up its gambling market five years ago, and casino titans like Las Vegas Sands, Steve Wynn and MGM Mirage have been making headway into the territory.
Mr Ho used to control it all. Now, the 85-year-old tycoon only holds a 63 percent share of the gambling market in Macau.
And in a bid to change the general perception that his casinos are stodgy, smoky and plagued with poor service, Mr Ho has just launched his latest and biggest yet.
The US$641 million Grand Lisboa is a 52-storey complex. It houses 430 hotel rooms, and five casino floors complete with gaming tables and slot machines.
The design was inspired by the long plumes of a Brazilian showgirl's head-dress.
Mr Ho said: " I love competition, but competition should be fair and complementary whereby we can expect improvement. So far the competition, except for a few cases, is fair and I am satisfied and therefore you see more and more improvement in Macau."
Mr Ho has accused the American players of poaching his staff and stealing away his customers.
But the competition is not likely to ease up anytime soon.
On the cards this year, billionaire Sheldon Adelson of the Venetian Sands plans to open his 3,000 suite Venetian Macau - billed as the biggest hotel-casino in the world.
The complex, along with many others are coming up along the Cotai Strip - fashioned after the Las Vegas one.
Mr Francis Lun, General Manager of Fulbright Securities, said: "I think SJM (Sociedade de Jogos de Macau) will do well if it can hold on to 50 percent of the market share, but my guess is with six licensees, I think anyone holding on to 40 percent market share will be a remarkable achievement. Of course, Stanley Ho's SJM casinos have been dominant for such a long time, so they have some customer loyalty."
Experts say in three years' time, Mr Ho's market share may dwindle to just 25 percent of the market.
But it is a market that is still growing. Last year, a record 12 million mainland residents visited Macau, helping the territory overtake Las Vegas as the world's biggest gambling market, with takings of US$6.9 billion.
Meanwhile, Mr Ho's gaming flagship SJM is preparing for a US$2 billion public offering in Hong Kong before September.
The IPO has been held up in litigation by his sister Winnie Ho, who has fallen out with him. But last month, a Macau court had ruled in his favour. - CNA/de
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