No Ban on Ah Longs in Casinos Woh!

[makapaaa]

<TABLE border=0 cellSpacing=0 cellPadding=0 width=452><TBODY><TR vAlign=top><TD></TD></TR><TR><TD vAlign=top width=452 colSpan=2>Published December 22, 2009

</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Junkets could give S'pore casinos a miss
But LVS chairman Adelson is unfazed as D-Day nears

By ARTHUR SIM
<TABLE class=storyLinks border=0 cellSpacing=4 cellPadding=1 width=136 align=right><TBODY><TR class=font10><TD width=20 align=right></TD><TD>Email this article</TD></TR><TR class=font10><TD width=20 align=right></TD><TD>Print article </TD></TR><TR class=font10><TD width=20 align=right></TD><TD>Feedback</TD></TR><TR class=font10><TD colSpan=2><!-- AddThis Button BEGIN --><SCRIPT type=text/javascript src="http://s7.addthis.com/js/250/addthis_widget.js#pub=xa-4ae026ba0e05c08d"></SCRIPT><SCRIPT type=text/javascript> var addthis_config = { username: "xa-4ae026ba0e05c08d", services_compact: 'facebook, twitter, favorites, myspace, google, digg, live, delicious, stumbleupon, more', services_exclude: 'print', data_use_flash: false } </SCRIPT> <!-- AddThis Button END --></TD></TR></TBODY></TABLE>
(SINGAPORE) Las Vegas Sands (LVS), which is in the midst of applying for its casino licence for Marina Bay Sands (MBS), may not have the help of junket operators when it opens in April.

<TABLE class=picBoxL cellSpacing=2 width=100 align=left><TBODY><TR><TD></TD></TR><TR class=caption><TD>Mr Adelson: 'We are happy to see Genting open first. But this will not be an advantage. You don't get a gold star for being the first one to open.'</TD></TR></TBODY></TABLE>Junket operators help generate almost 70 per cent of gaming revenue in Macau, but LVS chairman Sheldon Adelson said: 'I don't think the (Singapore) government is going to allow any junkets,' he added.
Mr Adelson was speaking at a press conference here yesterday, where he also revealed that MBS will now open in the second quarter of 2010 instead of the first.
He did not elaborate on the junkets and whether he believes the government intends to either directly or indirectly stop operators from coming here but he did say: 'First of all, I don't think the junket reps (representatives) are going to apply for licences. There may be one or two - but the government has said they don't want the Macau style junket reps that take a very large percentage of the gross income.'
A check with the Casino Regulatory Authority (CRA) reveals there is no ban on junkets as the Casino Control Act provides for the licensing of junket operators. 'The Casino Regulatory Authority of Singapore is currently at an advanced stage of finalising the regulations which will spell out details on the junket licensing regime. Junket operators which meet the regulatory requirements under the Act and these regulations would be allowed to operate in Singapore,' a CRA spokesman said.
Mr Adelson is unfazed about the loss of junkets - even if this may increase the risks that LVS will have to assume as junket operators often provide credit to gamblers.
Saying that LVS has its own high-roller clientele, he said: 'We want to be in the business of doing business directly with players. We will supply the credit and we will take our chances on the credit and collections.'
He said LVS's high-roller clients are eagerly waiting the opening of MBS. 'There are reasons why people don't want to gamble in some places and one of the reasons is that it is against their social mores. If I go to Macau, and I am from Taiwan, some of my friends that know me can see me and I don't want them to see me. So I rather go somewhere far away where there is a lesser chance where people will see me - or maybe where the government will see me,' explained Mr Adelson.
He said that LVS currently has about 'five plane loads of two 747s' that are flying to its Las Vegas casinos with Asian high-rollers. 'Two trips come from KL, one trip from Singapore, one trip from Bangkok, one from Jakarta and one from Hong Kong. And they all say that they are waiting for Singapore to open,' he added.
Mr Adelson also said LVS expects to rake in about US$1 billion annually before deducting interest, taxes, depreciation and amortisation expenses. 'The people in the market have come out to between US$400 million and US$800 million,' he added.
UOB Kay Hian analyst Vincent Khoo does believe the market, 'has been too optimistic about the junket market'.
'Some Macau junket operators are exploring Singapore, but admit that it's tough to be approved and the business model will be inferior. I believe that Singapore will allow junkets to act as introducers and financiers, but there will be no profit sharing and they must abide by the Junket Act's strict rules. But the market seems to completely ignore this pressing issue,' he added.
Like Mr Adelson, Bank of America Merrill Lynch analyst Melvyn Boey believes junket operators will not be that important here. By his estimates, VIP clients will account for about 50 per cent of the business at the Singapore casinos. But of these VIP clients, only about 30 per cent might be expected to be brought in by junket operators with most being 'in-house VIP clients'. So even if there are no junket operators in Singapore, Mr Boey believes the impact on business is 'unlikely to be significant'.
On the delayed opening, Mr Adelson said: 'We are happy to see Genting open first.' But this will not be an advantage. He said: 'Mistakes will be made, by them or us. Let them open first and we will see what mistakes they make and we will correct them. You don't get a gold star for being the first one to open.'

</TD></TR></TBODY></TABLE>

 

[scoobyhoo]

wonder whether our banks will set up leanding counters there? and wonder whether we will have legalised brothels - those who could not repay can work there?