China’s stern new policy may benefit Ho’s Russian casino venture

In addition to the anti-graft campaign of the Central Government, the authorities in China have decided to tighten the restrictions on mainlanders entering Macau as a means of transit from December. Taiwanese media said the two policies will benefit local casino developer Lawrence Ho Yau Lung’s casino project in Russia which is slated to open in the second quarter of the year. Taiwan’s Chinese-language newspaper China Times claimed that junket operators in Macau are bringing the VIP gamblers out of the SAR to casinos in the Philippines, Vietnam, Singapore and South Korea, where gaming taxes on average are considerably lower than in Macau. In particular, it noted that the gaming tax in Vladivostok in Russia, where Mr. Ho’s new project will be located, is only one per cent. Mr. Ho’s Russian casino project is primarily invested in by the two companies he controls, Summit Ascent and Melco International, as well as a Taiwanese gaming supplier Firich Enterprises Co Ltd, which has bought 19 percent stake of the project. The news outlet indicated that the year-on-year growth of 41 per cent of the gaming revenue in Korea is due to Macau VIP gamblers shifting to the Eastern Asia country. Although the Korean Government prohibits its citizens from entering their own casinos, Koreans as well as Mainland people from the northeast regions can travel to the Russian city by car or direct flight, which the newspaper perceives more VIP gamblers from Macau will be inclined to do. K.L.