Stanley Ho Casino With French Theme Opens In Macau

A French-themed casino backed by ailing magnate Stanley Ho became the latest addition to Macau's gambling scene Monday, as optimism about a revival in the industry drove casino shares higher in Hong Kong.

Meanwhile, Las Vegas-based casino operator Wynn Resorts Ltd. disclosed in a prospectus for a planned Hong Kong listing of its Macau business that profit at that business fell 33% in the first half of the year, in part because of visa restrictions that are now believed to be easing.

The 87-year-old Mr. Ho, who for four decades ran Macau's gambling monopoly, wasn't on hand to mark the opening of his 20th casino, called L'Arc. Mr. Ho is convalescing in a Hong Kong hospital after undergoing surgery earlier this summer.

L'Arc, which sits next to the Wynn Macau and the MGM Grand Macau casino-resorts, features 142 gaming tables and 400 slot machines over two floors of what the company calls 'French style, embellished by classic Chinese decoration.'

Mr. Ho's SJM Holdings Ltd., with its long tenure in Macau and its ability to connect with a loyal base of ordinary gamblers, continues to attract the biggest slice of Macau's gambling revenue, with about 29.6% of the overall revenue and 40.2% of the mass-market revenue.

Last week, SJM reported relatively modest declines in gambling revenue in the first half of 2009, with its total slipping 4.3% and revenue from high-rollers falling 9.9%. That compares with declines of double-digit percentages across the sector.

The opening of SJM's newest property comes at a time when optimism is returning to the sector. Macau gambling revenue set a record in August, and investors are expecting even more business from mainland China as officials there ease restrictions on travel to Macau. Casino operators and Macau government officials have stepped up efforts to rein in the commissions they pay to the middlemen who bring high-rollers to the city.
Jonathan Cheng / Jeffrey Ng
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