WGM#38 NOV/DEC 2015
The Macau gaming industry is synonymous with junkets. First started by none other than Stanley Ho in the 1960s, these junkets and the VIP gamblers they provide have played a vital role in Macau’s rise over the past decade. However, the recent downturn has changed the landscape in this unique part of the world with the junket business suffering more than any other and a number of VIP rooms being forced to close in Macau over the past 12 months. So what does the future hold? In this issue of WGM, we speak exclusively to the Chairman of one of Macau’s biggest junket operators Tak Chun Group, Mr Levo Chan, about the current gaming climate, his expectations for the coming years and why Tak Chun has expanded while other junkets have slowed right down. Poker fans will enjoy our lengthy and intriguing interview with World Series of Poker (WSOP) Tournament Director Jack Effel who explains just how much goes into organizing the world’s biggest tournament series each and every year as well as regaling us with some of his favorite stories from the past. We tackle the smoking debate as Macau’s legislators decide whether to allow smoking in specially designated smoking lounges or ban the habit altogether, while our responsible gambling series sees us visit one of Macau’s main problem gambling treatment centres. In sport, we look at Manchester United’s big gamble on teen star Anthony Martial as well as examining which of the world’s major sports would benefit most from cracking the lucrative Chinese market. And our resident party animal tells us all about one of Macau’s newest trendy nightspots – Ritz-Carlton Bar & Lounge.
The Macau gaming industry is synonymous with junkets. First started by none other than Stanley Ho in the 1960s, these junkets and the VIP gamblers they provide have played a vital role in Macau’s rise over the past decade.
However, the recent downturn has changed the landscape in this unique part of the world with the junket business suffering more than any other and a number of VIP rooms being forced to close in Macau over the past 12 months. So what does the future hold? In this issue of WGM, we speak exclusively to the Chairman of one of Macau’s biggest junket operators Tak Chun Group, Mr Levo Chan, about the current gaming climate, his expectations for the coming years and why Tak Chun has expanded while other junkets have slowed right down.
Poker fans will enjoy our lengthy and intriguing interview with World Series of Poker (WSOP) Tournament Director Jack Effel who explains just how much goes into organizing the world’s biggest tournament series each and every year as well as regaling us with some of his favorite stories from the past.
We tackle the smoking debate as Macau’s legislators decide whether to allow smoking in specially designated smoking lounges or ban the habit altogether, while our responsible gambling series sees us visit one of Macau’s main problem gambling treatment centres.
In sport, we look at Manchester United’s big gamble on teen star Anthony Martial as well as examining which of the world’s major sports would benefit most from cracking the lucrative Chinese market.
And our resident party animal tells us all about one of Macau’s newest trendy nightspots – Ritz-Carlton Bar & Lounge.
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AWS: What are your thoughts on the<br />
government’s statement that there will be more<br />
oversight of the junket industry?<br />
LC: Recently there have been many comments<br />
on loopholes in the legislation that regulates the<br />
supervision of junket operators. Scholars have<br />
put forward a lot of valuable advice regarding<br />
how to rectify the VIP service. Tak Chun Group<br />
is a large-scale enterprise and I very much hope<br />
the industry implements good measures to<br />
support this supervision.<br />
The law needs to advance with the<br />
times. We should trust the government, give<br />
them space and time to amend the law, to<br />
establish a set of standards for the industry so<br />
that the operating model of junket operators<br />
can achieve the recognition of international<br />
financial institutions.<br />
The VIP business has always been unique to<br />
Macau – there is no precedent for our business<br />
model. Therefore we can only rely on ourselves<br />
to explore these issues and continue to make<br />
improvements in order to succeed.<br />
I hope the government can strengthen<br />
its supervision so that the industry has a<br />
system to follow and it can be in line with<br />
the lending standards of banks and we can<br />
be listed so that the industry has a normal<br />
way to finance itself for future business<br />
development. Recently I’ve been meeting<br />
many people in the industry and we all agree<br />
that greater standardization can reduce the<br />
negative message that is out there. The<br />
government should communicate more with<br />
the industry, listen to the views of scholars<br />
and standardize our industry.<br />
AWS: What are your thoughts on the new<br />
casinos opening in Macau? We’ve seen Galaxy<br />
II and Macau Studio City open this year and<br />
over the next two or three years we’ll see the<br />
openings of Wynn Palace, Parisian, MGM Cotai,<br />
Lisboa Palace and Louis XIII. How will these<br />
new properties impact the gaming landscape<br />
in Macau as a whole and how will they affect<br />
Tak Chun?<br />
LC: The opening of new casinos will provide<br />
a new impetus to the economy and the gaming<br />
industry in Macau. The new offerings and<br />
highlights can attract more customers. There<br />
will be a new round of competition and this<br />
competition will drive the economy of Macau.<br />
If the gaming companies you mention<br />
intend to open VIP rooms, we will carefully<br />
consider becoming involved. At this stage we have<br />
discussed the possibility of opening VIP rooms<br />
with some of the gaming companies but the final<br />
decisions are still pending future developments.<br />
AWS: Will Macau ever recover from the<br />
current downturn to get back to where it was?<br />
If so, how long do you think it will take?<br />
LC: Macau has a good foundation, good<br />
conditions and good potential. If China’s<br />
economy improves, Macau’s economy will<br />
immediately respond and benefit. Along with<br />
the increased income of the middle class in<br />
China, we’ll see higher demand for quality<br />
entertainment and enjoyment and the number<br />
of customers will naturally rise. Tak Chun<br />
Group will pay more attention to service and<br />
provide quality services to these customers.<br />
In fact, no industry will be in the cycle for<br />
a long time. That’s not realistic! The end of a<br />
cycle is the beginning of another cycle. For<br />
example, since the liberalization of the gaming<br />
industry in 2002 and the implementation of the<br />
“Free Independent Travel” policy in 2003, the<br />
industry has entered into a prosperous period.<br />
When the financial crisis happened in 2008, the
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