Macau Casinos and Gambling News

[LtBk]

I wonder if Gambling and Casinos are going to legalized in China in near future. Stupid Chinese government.

[hkskyline]

Actually, legalized gambling is a very contentious issue even in the West. Many countries do not allow their residents to gamble in the casinos at home. They cater to tourists only. For example, Macau's casinos are not open to locals.

Mainland Chinese like to travel abroad to gamble. They key places I can think of right now are Macau and Genting in Malaysia (and perhaps Walker Hill in Seoul).

[SeeMacau]

Wynn Resorts' merits stretch far beyond Wynn Las Vegas. Fool contributor Jeff Hwang thinks the company will be a hit -- but that doesn't necessarily mean that the stock is at this price.

By Jeff Hwang
October 11, 2004

Last week, fellow Fool contributor Lawrence Meyers gave his take on Wynn Resorts (Nasdaq: WYNN) (see "Quick Draw on Wynn Resorts"). Basically, Lawrence suggested that for an investor to try to justify Wynn's $4.75 billion market cap at this point may be more akin to gambling, as the company isn't expected to even begin to produce real revenue until its Wynn Las Vegas super resort on the Las Vegas Strip debuts in April 2005.

First off, I'd like to stress that the gist of Lawrence's message is spot on: The value-driven investor should be wary of this type of situation. However, I think I should also point out that Wynn Resorts' merits stretch far beyond Wynn Las Vegas.

The Macau dream
In 2006, Wynn will open Wynn Resorts Macau in the explosive growth gaming market of Macau, the former Portuguese colony a mere couple dozen miles west of Hong Kong. Wynn will become the second U.S.-based company to operate there; Las Vegas Sands -- owner of the Venetian on the Vegas Strip -- became the first this past May when it opened Sands Macau.

Last week, Wynn Resorts gave a presentation at the Goldman Sachs and Deutsche Bank Securities Gaming Investment Forum, which you can access from Wynn Resorts' website by clicking here. Here are some of the key figures:

In 2003, the Las Vegas Strip and Atlantic City markets reported gaming revenues of $4.8 billion and $4.5 billion, respectively. For 2004, the Macau gaming market is expected to grow to a whopping $5.2 billion from just $3.5 billion last year.
There are 100 million people within a three-hour drive of Macau, and 1 billion people within a three-hour flight.
Mainland China is now Macau's No. 1 source of visitors, outnumbering Hong Kong. In 1991, Hong Kong accounted for over 80% of Macau's visitors.
The Macau market is clearly expanding, and there is plenty of reason to think Wynn will have success. In its $350 million IPO filing last month, Las Vegas Sands reported that through the two months ending July 31, the Sands Macau casino raked in $36.9 million in earnings and EBITDA (earnings before interest, taxes, depreciation, and amortization) of $41.2 million -- not bad considering the cost of the project was a mere $240 million.

It doesn't hurt that the property plays host to a million visitors a month, either.

Sub-concessions and cross-marketing
The business growth aspirations are stellar as well. Sands intends to build something of a casino Disney (NYSE: DIS) World on Macau, with a new Venetian casino as the centerpiece. Further, the concession given to the company by Macau will allow it to sell sub-concessions to third-party casino operators to help complete the fantasy world, all the while paying Sands a fee -- perhaps a tax on revenues -- for the right to the sub-concession.

Wynn Resorts expects to garner further profits via its own sub-concession rights in a similar manner. In addition, both Las Vegas Sands and Wynn Resorts will be able to take the high-rolling gamblers they acquire in Macau and bring them to their resorts in Las Vegas, creating superior cross-marketing value.

Given those ramifications, it's not hard to see why Strip giant MGM Mirage (NYSE: MGG) -- just days after announcing its intent to merge with Mandalay Resort Group (NYSE: MBG) -- was so excited to land its own bid on Macau this past summer via partnership with Pansy Ho Chiu-king, daughter of Macau gaming mogul Stanley Ho (see "MGM Mirage Hits Macau").

Back to Wynn Las Vegas
And of course, Wynn Las Vegas itself is still a big piece of the puzzle.

Wynn Las Vegas sits on 217 acres, and will mark the north end of the modern generation of Strip hotels just past the Venetian and the site of Las Vegas Sands' next major casino project. The multibillion-dollar project will feature an 18-hole golf course, a Ferrari and Maserati car dealership, 2,716 hotel rooms, and 74,700 square feet of retail space connected to the 2-million-square-foot Fashion Mall across the street.

As the company happily points out in its presentation, Steve Wynn trumped Caesars (NYSE: CZR) Palace with the Mirage, and then trumped the Mirage by building the masterpiece that is Bellagio. Next spring, Wynn plans on trumping Bellagio with Wynn Las Vegas, and the whole world expects him to do it.

Speculation: when a hit is not a hit
There is little doubt in my mind that Wynn Resorts is a hit. But for the investor, that is certainly not the end of the story.

As Lawrence pointed out, there is a lot of speculation involved here. It's not all that different from the speculation involved in buying Google (Nasdaq: GOOG) at the IPO, or from the speculation involved, say, when gamblers add $1 billion to the market value of a cash-bleeding company because Howard Stern signs with Sirius Satellite Radio (Nasdaq: SIRI) (see "Billion-Dollar Sex Joke" and "Sirius and Stern").

It's not necessarily wrong or right; anyone who has ever followed The Motley Fool's Rule Breaker portfolio -- or has a subscription to David Gardner's new Rule Breakers newsletter -- knows that we've done our fair share. We just highly recommend that you keep valuation as the core consideration.

If you have any interest in buying shares of Wynn Resorts, it is vital to your long-term investing success that you at least come up with some ballpark assumption of fair value. Take into consideration all of the factors we've discussed here, as well as the valuations of comparable companies and other stocks you are interested in. And once you've done that, buy with a margin of safety by making sure you are getting a large discount to fair value, keeping in mind that the more speculative the investment, the bigger the margin of safety you require.

If you have no idea of fair value or you find that the stock's current price offers no margin of error, then just don't buy. Because if you choose to ignore valuation and pay the wrong price, there is a much better chance that what may be a hit for Wynn Resorts will turn out to be a bust for you.

You can play on the web......go to https://www.worldgamesinc.com

user name: teamsite88
password : games321

This is demo of the site....

If you want to join....my ID# is 1400705......sign yourself in ....and play for fun OR for real....tell me what you think?

[SeeMacau]

CARSON CITY -- Las Vegas Sands Inc., which owns the Venetian and is building the 3,000-room Palazzo on the Las Vegas Strip, has received final approval from the Nevada Gaming Commission to sell up to $575 million in common stock.

The public offering must still win approval from the federal Securities and Exchange Commission.

Greg Giordano, attorney for the Sands, told the commission Thursday he hoped the sale could be completed in December and the money will go toward expansion in such gaming markets at the United Kingdom and Asia.

The Venetian, led by Sheldon Adelson, is building a second casino with 118,000 square feet of gaming space and completion is expected 2007. While the Sands will build it, the Palazzo project will be leased and owned by another company, said Rob Goldstein, president of the Venetian.

The commission also questioned Sands executives about its gaming casinos in Macau that opened this year. Gary Saunders said the casino is still catering to the mass market and is moving slowly into attracting high-end gamblers.

Saunders said credit is given at the casino in Macau only to those who have established it at the Venetian.

In other action, the commission granted an unlimited license to Albert D. Seeno III to be a 5.1 percent beneficiary in the trusts of Albert and Sandra Seeno, who are part owners of the Peppermill in Reno, Western Village in Sparks and the Rainbow Club in Henderson. The license also allows him to be a 10.3 percent beneficiary in the trust that holds an interest in two clubs in Wendover.

Other non-restricted applications approved included William J. Allison to contract with New York-New York in Las Vegas, and Sheldon Adelson to put 16 percent of his stock in the Venetian in Las Vegas into a trust for family.

The commission also approved applications for the following companies to make public offerings: Shuffle Master, Inc., American Casino & Entertainment Properties LLC and Herbst Gaming.

The commission approved PDS Holding Co., a company that specializes in financing for leasing gaming equipment, to convert from a publicly traded company to a private company. It granted a license to Harold Holder for slot machines at the Wigwam Casino in Fernley.

The commission also approved tax refunds of $79,000 to the Palms Casino Resort and $99,000 to the Rampart Casino.

[SeeMacau]

Macau gambling tycoon Stanley Ho said he may sell his privately held business to Melco International Development Ltd., Hong Kong's South China Morning Post reported.

Ho, speaking after Melco's annual shareholders meeting, said Melco would become his listed gambling flagship in the event the asset transfer occurs, according to the paper. Ho is chairman of Melco, which is run by his son, Lawrence.

Shun Tak Holdings Ltd., also controlled by Ho, previously said it doesn't plan to increase its 11 percent stake in the tycoon's casino-owning Sociedade de Turismo e Diversoes de Macau and will instead focus on nongambling business, the Post said.

In a statement, Melco said its independent shareholders approved an agreement with Sociedade de Turismo for the joint development of a casino and hotel in Macau.

[SeeMacau]

The rally of Macau-related stocks has been heating up, as investors expect firms with investment exposure or plans for the SAR to benefit from its liberalised gambling business.

Far East Tech International and Far East Hotels and Entertainment were the top gainers on Hong Kong's stock market on Wednesday, skyrocketing 140 per cent and 90 per cent respectively.

Far East Consortium, which controls both units, plans to develop a multi-purpose project including hotels, apartment complex and shopping mall in Macau that cost HK$1.7 billion, a JPMorgan report said.

Shares of Far East Consortium rose 13 per cent on Tuesday, while Melco International Development and Century Legend Holdings, both investors in Macau's gaming industry, leapt at least 10 per cent, compared with a 0.67 per cent gain in the Hang Seng Index.

``There's no other appealing stories in the stock market other than the hot theme of Macau gaming industry,'' RexCapital executive director Alex Wong said.

The gambling industry, estimated to account for more than 40 per cent of Macau's gross domestic product, is expected to enjoy a further boom after new casino operators Las Vegas Sands and Galaxy Resort and Casino opened business this year.

The new casinos have brought an influx of mainland tourists to the city. Macau's visitor arrivals were up 31 per cent in September from a year ago to 1.31 million.

Kenny Tang, associate director of Tung Tai Securities, said investors were bullish on the Macau gaming industry and its economy. Investors were speculating that if any listed firms like Melco could transform to a Macau gambling or related play, their values would soar.

Shares of Melco, in which chairman Stanley Ho said he may inject more gambling assets, have jumped 460 per cent this year, while the share price of Shun Tak Holdings, which plans to spend HK$1 billion on a hotel and property project, has doubled. Far East Consortium's shares are up 80 per cent this year. K.Wah International, whose chairman Lui Che-woo controls Galaxy, and Century Holdings have both seen their shares gain 30 per cent.

Citigroup's Smith Barney unit in mid-October started covering Melco shares with a ``buy'' rating and a share-price estimate of HK$12.10 after Melco sought HK$377 million in a share sale to help fund a Macau hotel-casino project and to expand the company's slot-machine business.

``Melco could emerge as the only listed vehicle that provides direct exposure to the rapidly developing casino market in Macau,'' Smith Barney said.

RexCapital's Wong said the coverage and recommendation from some big brokerages also helped fuel the Macau stocks rally. ``If there's no such research reports to cover Melco, its share price cannot fly high without the push from institutional investors,'' he said. ``Macau-related stocks, except for Melco, only have the gaming assets injection concept without solid or clear business models, so valuing such stocks is difficult and investing in them is just like gambling.''

[SeeMacau]

Galaxy Waldo

[SeeMacau]

Macau, Nov. 7 (CNA) Macau casino godfather Dr. Stanley Ho said Saturday that he would be very interested in opening a casino/hotel on Taiwan's Penghu Island if the government gives a green light to such business. During an interview with Taiwan media Saturday, Ho, a Hong Konger who owns a business empire in Macau and Hong Kong, principally involved in gambling, said his company, Melco International Development, would be glad to invest in Penghu if casino operations are permitted there. Ho said that he has been to Penghu and came away with a strong impression of the scenic environment there. If Macau is given the chance, his company might channel investment to the tune of HK$15 billion (US$1.9 billion) into Penghu to build a casino kingdom there, he said. (By C.H. Jen and Deborah Kuo) ENDITEM

[SeeMacau]

MACAU, China -- Glittery Las Vegas gambling has arrived in seedy Macau, promising new charms for China's inveterate players, and this former Portuguese colony may never be the same.

The first Las Vegas invasion, the Sands, has risen bronze-tinted and modernistic on the edge of Macau's little harbor, where fast ferries from Hong Kong deliver thousands of gamblers every day. With more than 300 tables and 500 slot machines in 165,000 square feet of luxury casino, the sleek new entry scooped up almost $36 million in the first 10 weeks after it opened in mid-May.

Venetian Macau Ltd., the Las Vegas Sands Inc., subsidiary that built the Sands, has started construction on a second high-end casino near Macau International Airport. Wynn Resorts, another Las Vegas firm elbowing into Macau gambling, has launched two similarly grandiose projects, one of which includes a golf course along with its 110,000-square-foot casino.

The competition from Las Vegas has pushed the traditional Macau gambling empire, created by the legendary Stanley Ho, to refurbish frayed facilities and erect new ones.

At the same time, Galaxy, a Hong Kong-owned firm that initially partnered with Venetian and then split off, has broken ground on a casino described by the government's Tourism Office as "a large-scale resort and entertainment center." It has also announced plans for a new 600-room establishment in the crowded city center.

The new construction is only part of the picture. The deepest changes may be in the personality of this 10.5-square-mile territory on the South China Sea, which has a long tradition of laissez faire, allowing prostitutes, loan sharks and gangsters to prosper alongside the croupiers. But the Las Vegas gaming industry has made it clear it intends to market gambling in Macau as wholesome entertainment.

"Macau can no longer be just a gambling den," said an industry source aware of marketing strategies. The Las Vegas gambling companies, the source added, "are bringing a sense of entertainment for the family as well as the man."

Ho's Macau Gaming Co., which grew up in Macau's smoky tradition and helped it grow, has also begun seeking a broader clientele.

"The focus has been widened from that of economic stimulus and spinoff benefits for social and infrastructure projects to the wish to improve Macau's international image," said a statement issued in response to questions put to the office of Ambrose So, Macau Gaming Co.'s director, about the arrival of Las Vegas-style casinos.

Macau has undergone several changes since it reverted to Chinese control in 1999, including the granting of new licenses into a formerly closed gambling market. But none has been as far-reaching as this challenge to the anything-goes credo that has made Macau notorious.

"It's going to change our way of life," predicted the Rev. Lancelot M. Rodrigues, who arrived in Macau to study for the priesthood in 1935 and has watched the territory evolve ever since with benign cynicism.

As things stand, no one seems to care when Schubert's "Ave Maria" segues into "Unchained Melody" in the music for sidewalk diners enjoying Portuguese cuisine in Macau's tepid evening air. Those drinking vinho verde and eating the ersatz Portuguese fish stew coexist just as easily with neighbors slurping Chinese noodles across the alley.

Traditionally, gamblers of all kinds find a warm welcome. Macau's homegrown casinos cater with indiscriminate zeal to Hong Kong high rollers who fly in by helicopter to bet millions in VIP rooms and to crowds of bused-in Chinese who fritter away their salaries chip by chip a few stories below.

The do-as-you-like jumble has proved an irresistible draw for people from mainland China, where casinos are illegal. By the millions -- 11.8 million in 2003 -- they have poured into Macau since the turnover to China, aided by increasingly lax border controls.

Mao Hang, a court reporter who came with a tour group from his native Anhui province in eastern China, tried his luck last week at the Lisboa, one of Ho's premier properties now undergoing a facelift by painters scaling bamboo scaffolding. For him the experience, his first shot at the tables, was exhilarating.

"It's a lot of fun," he said. "But it really is nerve-racking."

Another group of stylelessly dressed men from Gansu province in western China, stickers on their lapels identifying them as group tourists, laughed nervously when asked whether they enjoyed their try at gambling. One pointed mischievously at his friends and said: "I only like to watch. But they love to gamble."

Chiefly because of visitors like Mao and the others, the amount of taxes paid by Macau's 15 operating casinos rose more than 50 percent in the first eight months of this year, according to Macau government statistics. These taxes -- which account for 70 percent of government revenue -- when combined with the construction boom helped generate second-quarter economic growth of 47 percent.

Although most Chinese visit on bus tours, officials sometimes pull up in limousines and bet embezzled public money. Wuhua Li, the public security chief of Huizhou in neighboring Guangdong province, was removed from his post last month and put under investigation on charges he gambled away more than $1 million obtained by extorting money from Chinese women seeking passage into Hong Kong, the controlled Chinese press reported.

The question for the Macau gambling industry is whether the new concepts and new level of luxury being introduced by Las Vegas gambling firms will appeal to Chinese visitors. Executives have predicted they can also draw visitors from elsewhere in Asia with opulence, conventions and golfing. But China, with its 1.3 billion inhabitants, has remained the main target.

Ambrose So, the director of Ho's company, said he believes Macau's traditional casinos should learn from the Las Vegas entrants but also stick to the territory's own traditions. "The Las Vegas model is unique because of its geographical, historical and sociocultural characteristics, from which Macau is totally different," he said.

Ho, the 84-year-old gambling patriarch, has not spoken much in public of the end to his long-held monopoly. At the opening of the Sands on May 18, he proclaimed himself ready to learn from his rivals. Hong Kong's South China Morning Post reported that at a Macau Gaming Co. function in September, he vowed, "We are Chinese and we will not be disgraced. We will not lose to the intruders."


A woman places a bet at the Lisboa in Macau. The industry is being transformed by Las Vegas-based resorts.

[SeeMacau]

MACAU – As reported by the China Standard: "Cruise ship operator Macau Success has teamed up with casino tycoon Stanley Ho's Sociedade de Jogos de Macau (SJM) to build a HK$1.2 billion (US$154.4 million) theme park in Macau's Inner Harbour area.

"The park, Ponte 16, will be built on a 23,066-square-metre site with potential gross floor area of 63,584 sqm.

"It will feature a 250-room hotel, a casino with more than 100 gambling tables to be run by SJM, a 25,833 sqm shopping arcade, a cultural space and car parks. Construction is expected to begin next year and be completed by the end of 2006.

"Macau Success will boost its stake in a joint-venture property development company to 24.5 per cent from 10 per cent and set aside about HK$300 million for Ponte 16, executive director Marco Lee said…"

[SeeMacau]

Macau Success Ltd., a Hong Kong retailer that's shifting its focus to Macau, will take a 24.5 percent stake in a planned HK$1.2 billion ($154.3 million) themed hotel and casino in the former Portuguese enclave. Its stock surged by as much as two-thirds.

The Ponte 16 development, of which Macau gambling tycoon Stanley Ho's Sociedade de Jogos de Macau will hold 51 percent, will include a 250-room hotel, casino, shops and "cultural area" done in the local early-20th century architectural style, Macau Success said in a Hong Kong stock exchange statement.

Macau's economy expanded 17 percent in 2003, in part because of a surge in hotel and casino construction after the city ended Ho's monopoly in 2002. Growth probably accelerated after China made it easier for mainland residents to visit Macau, the only place in China where casino gambling is legal.

[SeeMacau]

Injection of casino project spurs new placement.



Deutsche Bank completed a HK$405.8 million ($52 million) placement in Macau Success yesterday (November 11). The 317 million new share deal was priced at HK$1.28, representing a 9.8% discount to the stock's HK$1.42 close on Wednesday after which it was suspended. The deal had initially been marketed at a 7% to 18% discount.

Macau Success was suspended for all of last week and re-opened trading this Tuesday, jumping from HK$0.95 to HK$1.50 in the space of a day. The huge jump was prompted by news that the group had increased and injected its stake in a Macau joint-venture.

Macau Success purchased a further 14.5% interest in a HK$1.2 billion ($153 million) entertainment complex known as Ponte 16 for HK$1.4 million. The group is developing a hotel, casino and shopping mall in association with Stanley Ho's Sociedade de Jogos de Macau. The latter, Macau's richest man, owns 51% of the JV, while Macau Success will now own 24.5% and Joy Idea the remaining 24.5%.

The placement will increase the freefloat by 20% to 38%. Other major shareholders include Silver Rich Investments, which owned 40% pre deal and Spring Wise Investments, which owned 16%.

Observers say the order book closed six times covered, with participation by 70 accounts. Many had already been buying the stock when it had resumed trading on Tuesday and Wednesday. By geography, 25% went to Europe, 20% to offshore US and the remaining 55% to Asia.

At the placement price, the company is said to be valued at about five to six times 2006 earnings. This year is being used since the project will not on stream until then. The only other major comparable is Stanley Ho's own listed group, Melco International Development, which is also trading at the same P/E level, though on a 2005 basis.

The tycoon caused controversy last week when he appeared to indicate he would turn Melco into the flagship of his gaming empire. This has since been retracted, with the share price slipping from a high of HK$11.4 to HK$8.80 at the time Macau Success priced.

So far this year, Macau concept stocks have performed well, with Melco up 448% and Far Eastern Hotels up 68%.

[SeeMacau]

Wynn Resorts Ltd., the casino company behind developer Steve Wynn's $2.5 billion Wynn Las Vegas megaresort on the Strip, will raise $453 million by selling 7.5 million common stock shares to Deutsche Bank Securities, the company said Tuesday.

The sale of 7.5 million shares at $60.43 each to Deutsche Bank is expected to close Monday, Wynn Resorts said in a statement. Deutsche Bank has the option to purchase an additional 1.125 million shares.

The proceeds will help fund expansion of Wynn Las Vegas and a casino being built in the Chinese territory of Macau, the company said. The $900 million expansion, which Wynn expects to open in 2007, will include a 1,500-suite hotel tower and more casino space. The first phase of the project, which includes 2,700 rooms, is slated to open April 28.

News of the offering prompted a downgrade Tuesday from Banc of America Securities analyst Jeremy Cogan. Cogan dropped Wynn Resorts' stock rating to "neutral" from "buy." The stock fell 5.08 percent after the downgrade. Wynn Resorts has about 90.5 million shares outstanding so the offering would dilute the company's common stock by 8 percent.

"We remain fans of the Wynn story," Cogan wrote in a research note highlighted by TheStreet.com. "We continue to believe Wynn is in the cross hairs of three of the strongest themes in gaming (i.e., significant growth opportunities in Macau, strong Las Vegas fundamentals, and the recent speculation on land values on the Strip.) Even so, at current levels we think most of the good news is discounted."

The analyst noted that Wynn's stock has risen more than 80 percent since mid-August. On Tuesday, shares of Wynn Resorts at one point dropped by as much as $4.22 before rallying. The shares closed down $3.26 to $60.93. Deutsche Bank Securities is the investment banking unit of Frankfurt-based Deutsche Bank AG.

[SeeMacau]

MACAU, CHINA -- Glittery Las Vegas gambling has arrived in seedy Macau, promising new charms for China's inveterate players, and this former Portuguese colony may never be the same.

The first Las Vegas invasion, the Sands, has risen bronze-tinted and modernistic on the edge of Macau's little harbor, where fast ferries from Hong Kong deliver thousands of gamblers every day. With more than 300 tables and 500 slot machines in 165,000 square feet of luxury casino, the sleek new entry scooped up almost $36 million in its first 10 weeks in mid-May.

Venetian Macau Ltd., the Las Vegas Sands Inc. subsidiary that built the Sands, has started building a second high-end casino near Macau International Airport.

Wynn Resorts, another Las Vegas firm elbowing into Macau gambling, has launched two similarly grandiose projects, one of which includes a golf course along with its 110,000-square-foot casino.

The competition from Las Vegas has pushed the traditional Macau gambling empire, created by the legendary Stanley Ho, to refurbish frayed facilities and erect new ones.

At the same time, Galaxy, a Hong Kong-owned firm that initially partnered with Venetian and then split off, has broken ground on a casino described by the government's Tourism Office as "a large-scale resort and entertainment center." It has also announced plans for a new 600-room establishment in the crowded city center.

The construction is only part of the picture. The deepest changes may be in the personality of this 10.5-square-mile territory on the South China Sea that has a long tradition of laissez faire, allowing prostitutes, loan sharks and gangsters to prosper alongside the croupiers. But the Las Vegas gambling industry has made it clear it intends to market gambling in Macau as wholesome entertainment.

"Macau can no longer be just a gambling den," said an industry source aware of marketing strategies. The Las Vegas gambling companies, the source added, "are bringing a sense of entertainment for the family, as well as the man."

Ho's Macau Gaming Co., which grew up in Macau's smoky tradition and helped it grow, has also begun seeking a broader clientele.

"The focus has been widened from that of economic stimulus and spinoff benefits for social and infrastructure projects to the wish to improve Macau's international image," said a statement issued in response to questions put to the office of Ambrose So, Macau Gaming Co.'s director, about the arrival of Las Vegas-style casinos.

Anything goes

Macau has undergone several changes since it reverted to Chinese control in 1999, including the granting of new licenses into a formerly closed gambling market. But none has been as far-reaching as this challenge to the anything-goes credo that has made Macau notorious.

"It's going to change our way of life," predicted the Rev. Lancelot Rodrigues, who arrived in Macau to study for the priesthood in 1935 and has watched with benign cynicism as the territory evolved.

Traditionally, gamblers of all kinds find a warm welcome. Macau's homegrown casinos cater with indiscriminate zeal to Hong Kong high rollers who fly in by helicopter to bet millions in VIP rooms and to crowds of bused-in Chinese who fritter away their salaries chip by chip a few stories below.

The do-as-you-like jumble has proved an irresistible draw for people from mainland China, where casinos are illegal. By the millions -- 11.8 million in 2003 -- they have poured into Macau since the turnover to China, aided by increasingly lax border controls.

The question for the Macau gambling industry is whether the new concepts and new level of luxury being introduced by Las Vegas gambling firms will appeal to Chinese visitors. Executives have predicted they can also draw visitors from elsewhere in Asia with opulence, conventions and golfing. But China, with its 1.3 billion inhabitants, has remained the main target.

Ambrose So, the director of Ho's company, said he believes Macau's traditional casinos should learn from the Las Vegas entrants but also stick to the territory's own traditions. "The Las Vegas model is unique because of its geographical, historical and sociocultural characteristics, from which Macau is totally different," he said.

Ho, the 84-year-old gambling patriarch, has not spoken much in public of the end to his long-held monopoly. At the opening of the Sands on May 18, he proclaimed himself ready to learn from his rivals. Hong Kong's South China Morning Post reported that at a Macau Gaming Co. function in September, he vowed, "We are Chinese and we will not be disgraced. We will not lose to the intruders."

[SeeMacau]

ELEANOR HALL: Australia's most famous punter is making a push into the fast growing and lucrative Asian gaming industry.

Kerry Packer's media and casino company PBL has signed a joint venture deal with a leading Asian casino operator to build a gambling and hotel complex on the island of Macau, near Hong Kong.

It's the Packers' first foray into Asia, and will add considerably to the company's casino interests when it's up and running in 2007.

To tell us more, I'm joined by Finance Correspondent Karen Percy.

So Karen, what exactly will this deal mean for Kerry Packer and PBL?

KAREN PERCY: Well, it certainly is a very significant first step into the Asian gaming industry. Firstly, he's teaming up with one of the biggest players in the Asian casino market – Stanley Ho. He runs a company called Melco, and one of the oldest and most established firms in Hong Kong.

This is a 50-50 joint venture. Now, essentially PBL is going to invest some AUS$211 million to be part of Melco's Asian casino developments. The first project is the Park Hyatt Hotel and Casino in Macao. It's set to begin construction next month. By the time that's built and ready to roll in 2007, PBL will own about 28 per cent, or thereabouts, in this six star establishment.

Now, it's also going to have 200 gaming tables, 250 hotel rooms and suites, 1,300 gaming machines… and you may not know it, but Macao at the moment is just about the hottest gambling spot on the planet.

It has 15 casinos, and when you look at Las Vegas, Las Vegas certainly has a lot more of that, but they're certainly calling this the Las Vegas of the east, because turnover in the past financial year in this former Portugese colony was almost four-and-a-half billion US dollars – that's about 5.7 billion dollars Australian. And that's pretty significant, considering it's really only been in the past four years that it's taken off.

The Packers had been sniffing around for Macao for a while. There was a story out a couple of months ago where James Packer was spotted at one of the other casinos in Macao with Stanley Ho not too far behind.

So it's something that they've been interested in doing for some time, but from what I can gather you actually have to have a local partner for foreign firms to get into this industry.

ELEANOR HALL: So clearly a market worth looking at. Is this likely to be just the first stage of a plan by the Packers to expand into Asia?

KAREN PERCY: Well, the most interesting part of this deal, really, is because this $211 million isn't really a lot to pay for that kind of casino, considering the Packers paid $670 million for the Burswood Casino in Perth, which had last year profits of about $50 million.

So it means significantly that the Asia deals that are likely to come from this are most significant for PBL, because Asia's of course one of the fastest growing gambling markets, the rapid rise in the number of wealthy Asians certainly spurring demand, particularly for high-end facilities.

But the joint venture's going to mean PBL has a 40 per cent stake in any other developments in the greater China region. As yet there's nothing specific on the horizon, but you've got to figure that the potential's pretty lucrative, especially over the long term.

As well, PBL's going to have a 60 per cent stake in any joint venture projects elsewhere in Asia.

Now Melco – this is the PBL partner – it's not just one of the oldest firms in Hong Kong, it's one of the most influential. It used to be the Macao Electrical and Lighting Company. It's gone well beyond being a utility now.

It's in the restaurant business. We might have heard of the famous Jumbo floating restaurant in Hong Kong. It's also offering financial services in Hong Kong, so it’s a really diverse company, and one that will no doubt be a very valuable partner for PBL and the Packers as they look northwards.

ELEANOR HALL: Well, PBL is also known as a media company, of course. How does this fit in with PBL's domestic operations?

KAREN PERCY: Well, it's… definitely the publishing and broadcasting side of PBL is certainly starting to be the lesser of the company's earners. Even before it completed the Burswood purchase earlier this year, just a month ago or thereabouts, gaming and gambling was making up close to 40 per cent of its revenues – that was the Crown Casino alone.

So I imagine that this is going to fit in pretty well, because casinos rely heavily on those high rollers who are prepared to travel near and far for their experience, so it'll be a natural tie-up, you'd think, for those high rollers in Macao to link into the Crown Casino or the Burswood Casino.

So the Packers are also looking online. They've got a deal with the UK-based internet firm, Betfair, should Australian authorities ever approve online betting.

So it's definitely an area that has great interest. We know Kerry Packer's a big punter himself, and it's something that the business is pushing for as well.

ELEANOR HALL: Karen Percy, our finance reporter, thank you.

[SeeMacau]

The owner of the Venetian is facing another lawsuit related to the company's lucrative casino in the Chinese enclave of Macau.

Last month, Hong Kong businessman Richard Suen sued Las Vegas Sands Inc., Chief Executive Sheldon Adelson and President William Weidner in Clark County District Court for breach of contract.

In his suit, Suen claims he notified Las Vegas Sands officials in 2000 about the Macau government's intentions to grant new casino licenses through a competitive bid process.

Around September 2001, Suen and his Hong Kong company, Round Square Co. Ltd., accepted a written offer from the Sands to receive a $5 million "success fee" upon opening of a resort and 2 percent ownership of the Sands' share of the resort's net profit, the suit said. Suen is seeking more than $100 million in damages based on the Sands Macau's earnings so far.

Suen and his company introduced Sands executives to government officials and other influential people, advised the company on preparing their bid, analyzed strategies for selecting investment partners and advised the company on compliance procedures in China and Macau, among other things, the suit said. That assistance was a "substantial factor" in the Sands' winning bid, it said.

In its third quarter financial statement filed with the Securities and Exchange Commission Monday, Las Vegas Sands said it would "vigorously" contest the suit in court.

Last December, an Israeli tourism entrepreneur filed a breach of contract suit in Tel Aviv against Adelson. In the suit, Moshe Hananel accuses the casino boss and his Interface Partners International Ltd. subsidiary of violating an agreement to grant Hananel options for 12 percent of Adelson's holdings in his Macau project. The suit said the options were granted in exchange for drafting the licensing plan. Hananel said his work on the Macau development "gave Mr. Adelson a huge advantage over other entrepreneurs who saw the opportunity at a later stage."

Adelson countersued, accusing Hananel of misappropriating funds while working at Interface.

Hananel could not be reached for comment to determine the status of their claims and Sands Chief Financial Officer Scott Henry declined comment, citing an SEC-imposed "quiet period" while the company awaits an initial public offering of stock.

In 2002, the Macau government ended a decades-old casino monopoly in the former Portuguese colony by granting casino licenses to Galaxy Casino Co. Ltd. and Adelson rival Steve Wynn. The Las Vegas Sands opened its Sands Macau casino in May under a subconcession agreement with Galaxy and also plans to open a Macau version of its Venetian resort in 2007. Wynn's Wynn Macau subsidiary is developing a resort in the province and MGM Mirage, in a joint venture with Macau casino boss Stanley Ho's daughter, also plans a resort there.

Separately, the company disclosed a separate lawsuit filed by Bear Stearns Funding Inc. against Interface Nevada, a Las Vegas Sands subsidiary. Bear Stearns seeks damages of $1.5 million, plus interest and costs, over an alleged breach of contract in connection with a $141 million mortgage loan that was paid off in July. Interface Nevada has asserted six counterclaims against Bear Stearns "in an amount to be determined at trial." Officials with the Bear Stearns investment bank and Las Vegas Sands could not be reached for further information on the suit.

[SeeMacau]

AUSTRALIA'S richest man and ardent gambler Kerry Packer is investing $163m (£88.6m) in a venture in Macau with Hong Kong gaming kingpin Stanley Ho as part of Packer's increasing worldwide push in the industry.

His Australian firm, Publishing and Broadcasting Limited (PBL), will establish a 50-50 joint-venture with Ho's Melco International Development and use the operation as a springboard into the mainland.

PBL owns Australia's top-ratings Nine Network, and casinos in Melbourne and Perth along with a stable of magazines.

Packer has long sought an interest in Macau, which he believes drains high-roller business from his Australian operations, particularly Melbourne's Crow, which suffered following the Asian financial crisis of the late 1990s.

The strategy of linking up with an established player tallies with Packer's approach to Britain, where he is working with long-time associate David Aspinall on a £300m push to build casino/entertainment complexes in Scotland and England when gaming laws are liberalised.

Packer and Ho would initially invest in the Park Hyatt Hotel and Casino being developed in Macau, and would also manage and develop the Mocha Slot gaming business, which manages around 25% of slot machines on the island.

Macau is the only legal gambling enclave in China.

Beijing is actively courting foreigners and earlier this year Las Vegas magnate Sheldon Adelson opened the Macau Sands casino.

Macau now has 14 casinos operated by three rival groups, and at least five more are expected to open in the next five years

[SeeMacau]

See more of the world that matters - click here for home delivery of the International Herald Tribune.
< < Back to Start of Article MACAO Publishing & Broadcasting said Tuesday that it had bought a stake in Stanley Ho's latest gambling project in Macao as Asia's two leading casino operators team up to expand in the region.
.
Publishing & Broadcasting, an Australian company controlled by Kerry Packer, said it would pay $163 million for 28 percent of the Park Hyatt hotel and casino development in Macao, owned by the Hong Kong-based Melco International Development, controlled by Ho. The two also plan to expand jointly in China and elsewhere in Asia.
.
Packer has transformed Publishing & Broadcasting, which owns Australia's top-ranked television network, into the country's biggest casino operator with 2.4 billion Australian dollars, or $1.9 billion, of acquisitions since 1999.
.
Ho has linked with Packer to meet competition from Las Vegas operators including Steve Wynn and Sheldon Adelson, after losing his 42-year Macao gaming monopoly in 2002.
.
"It's a significant opportunity" for Publishing & Broadcasting "and a great step in creating a global gaming business," said John Grace, a fund manager at Ausbil Dexia in Sydney. "Macao is becoming as big as Las Vegas and growing strongly."
.
The Sydney-based Publishing & Broadcasting paid 1.8 billion dollars for Melbourne's Crown Casino in 1999, and this year bought Burswood, the owner of Perth's only casino, for 637 million dollars. The two casinos account for 43 percent of the company's revenue.
.
The deal gives Ho access to Publishing & Broadcasting's experience in running resort-style casinos and a client list boasting some of Asia's biggest gamblers.
.
Publishing & Broadcasting says Crown is the world's biggest casino for "high rollers," or gamblers who wager large sums of money. In the 12 months that ended in June, high rollers bet 17.9 billion dollars at Crown, the company said in September.
.
Buying Burswood allowed Packer to attract more high rollers from Asia to Perth, the main Australian city closest to the continent.
.
"PBL, with Crown, Burswood and now Macao, is a more complete offering for a commission-based player," said Grace at Ausbil Dexia. "They can say to high rollers, 'Where would you like to go in our stable; to Burswood, Melbourne or Macao?' It opens up a huge opportunity with one of the biggest players there."
.
Packer and Ho will work together on expansion outside of Macao. Melco will take a 60 percent share of all opportunities in China and Publishing & Broadcasting will own 60 percent of anything in the rest of Asia, outside Australia and New Zealand.
.
Singapore's Ministry of Trade and Industry last month said it might soon ask companies to submit proposals on building a resort that may include the city's first casino.
.
Ho operates 13 of the 15 casinos in Macao. He also owns Macao's horse and dog racing tracks and stakes in its airline and airport as well as real estate, Macao's biggest department store and its second-biggest bank.
.
Macao, which reverted to Chinese rule in 1999, is the closest place for people from China, Taiwan and Hong Kong to gamble legally in casinos.
.
"Total gaming revenue in Macao will this year or next year exceed that of Atlantic City and become the second-largest after Las Vegas," said Winnie Chiu, a property analyst at DBS Vickers Securities HK.
.MACAO Publishing & Broadcasting said Tuesday that it had bought a stake in Stanley Ho's latest gambling project in Macao as Asia's two leading casino operators team up to expand in the region.
.
Publishing & Broadcasting, an Australian company controlled by Kerry Packer, said it would pay $163 million for 28 percent of the Park Hyatt hotel and casino development in Macao, owned by the Hong Kong-based Melco International Development, controlled by Ho. The two also plan to expand jointly in China and elsewhere in Asia.
.
Packer has transformed Publishing & Broadcasting, which owns Australia's top-ranked television network, into the country's biggest casino operator with 2.4 billion Australian dollars, or $1.9 billion, of acquisitions since 1999.
.
Ho has linked with Packer to meet competition from Las Vegas operators including Steve Wynn and Sheldon Adelson, after losing his 42-year Macao gaming monopoly in 2002.
.
"It's a significant opportunity" for Publishing & Broadcasting "and a great step in creating a global gaming business," said John Grace, a fund manager at Ausbil Dexia in Sydney. "Macao is becoming as big as Las Vegas and growing strongly."
.
The Sydney-based Publishing & Broadcasting paid 1.8 billion dollars for Melbourne's Crown Casino in 1999, and this year bought Burswood, the owner of Perth's only casino, for 637 million dollars. The two casinos account for 43 percent of the company's revenue.
.
The deal gives Ho access to Publishing & Broadcasting's experience in running resort-style casinos and a client list boasting some of Asia's biggest gamblers.
.
Publishing & Broadcasting says Crown is the world's biggest casino for "high rollers," or gamblers who wager large sums of money. In the 12 months that ended in June, high rollers bet 17.9 billion dollars at Crown, the company said in September.
.
Buying Burswood allowed Packer to attract more high rollers from Asia to Perth, the main Australian city closest to the continent.
.
"PBL, with Crown, Burswood and now Macao, is a more complete offering for a commission-based player," said Grace at Ausbil Dexia. "They can say to high rollers, 'Where would you like to go in our stable; to Burswood, Melbourne or Macao?' It opens up a huge opportunity with one of the biggest players there."
.
Packer and Ho will work together on expansion outside of Macao. Melco will take a 60 percent share of all opportunities in China and Publishing & Broadcasting will own 60 percent of anything in the rest of Asia, outside Australia and New Zealand.
.
Singapore's Ministry of Trade and Industry last month said it might soon ask companies to submit proposals on building a resort that may include the city's first casino.
.
Ho operates 13 of the 15 casinos in Macao. He also owns Macao's horse and dog racing tracks and stakes in its airline and airport as well as real estate, Macao's biggest department store and its second-biggest bank.
.
Macao, which reverted to Chinese rule in 1999, is the closest place for people from China, Taiwan and Hong Kong to gamble legally in casinos.
.
"Total gaming revenue in Macao will this year or next year exceed that of Atlantic City and become the second-largest after Las Vegas," said Winnie Chiu, a property analyst at DBS Vickers Securities HK.
.MACAO Publishing & Broadcasting said Tuesday that it had bought a stake in Stanley Ho's latest gambling project in Macao as Asia's two leading casino operators team up to expand in the region.
.
Publishing & Broadcasting, an Australian company controlled by Kerry Packer, said it would pay $163 million for 28 percent of the Park Hyatt hotel and casino development in Macao, owned by the Hong Kong-based Melco International Development, controlled by Ho. The two also plan to expand jointly in China and elsewhere in Asia.
.
Packer has transformed Publishing & Broadcasting, which owns Australia's top-ranked television network, into the country's biggest casino operator with 2.4 billion Australian dollars, or $1.9 billion, of acquisitions since 1999.
.
Ho has linked with Packer to meet competition from Las Vegas operators including Steve Wynn and Sheldon Adelson, after losing his 42-year Macao gaming monopoly in 2002.
.
"It's a significant opportunity" for Publishing & Broadcasting "and a great step in creating a global gaming business," said John Grace, a fund manager at Ausbil Dexia in Sydney. "Macao is becoming as big as Las Vegas and growing strongly."
.
The Sydney-based Publishing & Broadcasting paid 1.8 billion dollars for Melbourne's Crown Casino in 1999, and this year bought Burswood, the owner of Perth's only casino, for 637 million dollars. The two casinos account for 43 percent of the company's revenue.
.
The deal gives Ho access to Publishing & Broadcasting's experience in running resort-style casinos and a client list boasting some of Asia's biggest gamblers.
.
Publishing & Broadcasting says Crown is the world's biggest casino for "high rollers," or gamblers who wager large sums of money. In the 12 months that ended in June, high rollers bet 17.9 billion dollars at Crown, the company said in September.
.
Buying Burswood allowed Packer to attract more high rollers from Asia to Perth, the main Australian city closest to the continent.
.
"PBL, with Crown, Burswood and now Macao, is a more complete offering for a commission-based player," said Grace at Ausbil Dexia. "They can say to high rollers, 'Where would you like to go in our stable; to Burswood, Melbourne or Macao?' It opens up a huge opportunity with one of the biggest players there."
.
Packer and Ho will work together on expansion outside of Macao. Melco will take a 60 percent share of all opportunities in China and Publishing & Broadcasting will own 60 percent of anything in the rest of Asia, outside Australia and New Zealand.
.
Singapore's Ministry of Trade and Industry last month said it might soon ask companies to submit proposals on building a resort that may include the city's first casino.
.
Ho operates 13 of the 15 casinos in Macao. He also owns Macao's horse and dog racing tracks and stakes in its airline and airport as well as real estate, Macao's biggest department store and its second-biggest bank.
.
Macao, which reverted to Chinese rule in 1999, is the closest place for people from China, Taiwan and Hong Kong to gamble legally in casinos.
.
"Total gaming revenue in Macao will this year or next year exceed that of Atlantic City and become the second-largest after Las Vegas," said Winnie Chiu, a property analyst at DBS Vickers Securities HK.
.MACAO Publishing & Broadcasting said Tuesday that it had bought a stake in Stanley Ho's latest gambling project in Macao as Asia's two leading casino operators team up to expand in the region.
.
Publishing & Broadcasting, an Australian company controlled by Kerry Packer, said it would pay $163 million for 28 percent of the Park Hyatt hotel and casino development in Macao, owned by the Hong Kong-based Melco International Development, controlled by Ho. The two also plan to expand jointly in China and elsewhere in Asia.
.
Packer has transformed Publishing & Broadcasting, which owns Australia's top-ranked television network, into the country's biggest casino operator with 2.4 billion Australian dollars, or $1.9 billion, of acquisitions since 1999.
.
Ho has linked with Packer to meet competition from Las Vegas operators including Steve Wynn and Sheldon Adelson, after losing his 42-year Macao gaming monopoly in 2002.
.
"It's a significant opportunity" for Publishing & Broadcasting "and a great step in creating a global gaming business," said John Grace, a fund manager at Ausbil Dexia in Sydney. "Macao is becoming as big as Las Vegas and growing strongly."
.
The Sydney-based Publishing & Broadcasting paid 1.8 billion dollars for Melbourne's Crown Casino in 1999, and this year bought Burswood, the owner of Perth's only casino, for 637 million dollars. The two casinos account for 43 percent of the company's revenue.
.
The deal gives Ho access to Publishing & Broadcasting's experience in running resort-style casinos and a client list boasting some of Asia's biggest gamblers.
.
Publishing & Broadcasting says Crown is the world's biggest casino for "high rollers," or gamblers who wager large sums of money. In the 12 months that ended in June, high rollers bet 17.9 billion dollars at Crown, the company said in September.
.
Buying Burswood allowed Packer to attract more high rollers from Asia to Perth, the main Australian city closest to the continent.
.
"PBL, with Crown, Burswood and now Macao, is a more complete offering for a commission-based player," said Grace at Ausbil Dexia. "They can say to high rollers, 'Where would you like to go in our stable; to Burswood, Melbourne or Macao?' It opens up a huge opportunity with one of the biggest players there."
.
Packer and Ho will work together on expansion outside of Macao. Melco will take a 60 percent share of all opportunities in China and Publishing & Broadcasting will own 60 percent of anything in the rest of Asia, outside Australia and New Zealand.
.
Singapore's Ministry of Trade and Industry last month said it might soon ask companies to submit proposals on building a resort that may include the city's first casino.
.
Ho operates 13 of the 15 casinos in Macao. He also owns Macao's horse and dog racing tracks and stakes in its airline and airport as well as real estate, Macao's biggest department store and its second-biggest bank.
.
Macao, which reverted to Chinese rule in 1999, is the closest place for people from China, Taiwan and Hong Kong to gamble legally in casinos.
.
"Total gaming revenue in Macao will this year or next year exceed that of Atlantic City and become the second-largest after Las Vegas," said Winnie Chiu, a property analyst at DBS Vickers Securities HK.
.MACAO Publishing & Broadcasting said Tuesday that it had bought a stake in Stanley Ho's latest gambling project in Macao as Asia's two leading casino operators team up to expand in the region.
.
Publishing & Broadcasting, an Australian company controlled by Kerry Packer, said it would pay $163 million for 28 percent of the Park Hyatt hotel and casino development in Macao, owned by the Hong Kong-based Melco International Development, controlled by Ho. The two also plan to expand jointly in China and elsewhere in Asia.
.
Packer has transformed Publishing & Broadcasting, which owns Australia's top-ranked television network, into the country's biggest casino operator with 2.4 billion Australian dollars, or $1.9 billion, of acquisitions since 1999.
.
Ho has linked with Packer to meet competition from Las Vegas operators including Steve Wynn and Sheldon Adelson, after losing his 42-year Macao gaming monopoly in 2002.
.
"It's a significant opportunity" for Publishing & Broadcasting "and a great step in creating a global gaming business," said John Grace, a fund manager at Ausbil Dexia in Sydney. "Macao is becoming as big as Las Vegas and growing strongly."
.
The Sydney-based Publishing & Broadcasting paid 1.8 billion dollars for Melbourne's Crown Casino in 1999, and this year bought Burswood, the owner of Perth's only casino, for 637 million dollars. The two casinos account for 43 percent of the company's revenue.
.
The deal gives Ho access to Publishing & Broadcasting's experience in running resort-style casinos and a client list boasting some of Asia's biggest gamblers.
.
Publishing & Broadcasting says Crown is the world's biggest casino for "high rollers," or gamblers who wager large sums of money. In the 12 months that ended in June, high rollers bet 17.9 billion dollars at Crown, the company said in September.
.
Buying Burswood allowed Packer to attract more high rollers from Asia to Perth, the main Australian city closest to the continent.
.
"PBL, with Crown, Burswood and now Macao, is a more complete offering for a commission-based player," said Grace at Ausbil Dexia. "They can say to high rollers, 'Where would you like to go in our stable; to Burswood, Melbourne or Macao?' It opens up a huge opportunity with one of the biggest players there."
.
Packer and Ho will work together on expansion outside of Macao. Melco will take a 60 percent share of all opportunities in China and Publishing & Broadcasting will own 60 percent of anything in the rest of Asia, outside Australia and New Zealand.
.
Singapore's Ministry of Trade and Industry last month said it might soon ask companies to submit proposals on building a resort that may include the city's first casino.
.
Ho operates 13 of the 15 casinos in Macao. He also owns Macao's horse and dog racing tracks and stakes in its airline and airport as well as real estate, Macao's biggest department store and its second-biggest bank.
.
Macao, which reverted to Chinese rule in 1999, is the closest place for people from China, Taiwan and Hong Kong to gamble legally in casinos.
.
"Total gaming revenue in Macao will this year or next year exceed that of Atlantic City and become the second-largest after Las Vegas," said Winnie Chiu, a property analyst at DBS Vickers Securities HK.
.

[SeeMacau]

An American casino company spearheading new growth in Macau's 150-year-old gambling industry plans to open the biggest gaming hall the southern Chinese enclave has ever seen, a media report said Thursday.

The Las Vegas Sands Group has told United States authorities that it plans to spend 1.8 billion US dollars building a new casino in the former Portuguese colony, The Standard newspaper reported.

The proposal gives the first insight into what planners have in mind for a huge 100,000 square metre reclamation linking two of the city's offshore islands that is expected to house some 20 new mega casinos and hotels by 2009.

Citing documents submitted to American securities chiefs, the report said the casino would resemble the company's flagship Venetian resort in Las Vegas.

The first phase will feature 1,500 hotel suites and 546,000 square metres of gambling halls, the report said.

Like its sister in Las Vegas, the Macau Venetian is likely to boast faux canals with gondoliers and Venice-themed facilities.

The new property will join the company's Sands Macau, which opened in May, the first foreign-owned casino to take advantage of new laws allowing overseas competition in what had been a gaming monopoly controlled by tycoon Stanley Ho.

The details were revealed in a submission ahead of a planned flotation by the company.

Sands is one of three overseas investors that have won concessions to open casinos under the semi-autonomous Chinese enclave's shake-up of gaming laws.

The law-change has given Macau's once-ailing gambling industry renewed vigour, injecting Vegas-style razzmatazz to a business that had developed a reputation for poor service and gang-related crime.

Huge growth in mainland Chinese tourist arrivals in the city has fuelled growth in a business that Sands boss Aaron Adelson predicts will eclipse even Las Vegas in terms of earnings as soon as next year.