Muhammad Cohen

Category: Macau casinos

  • Macau casino revenue numbers hide real news

    Over the past few months, Macau casino revenues have disappointed. October’s new revenue record of MOP27.7 billion (US$3.46 billion), while welcome, represented a modest 3.2 percent increase over revenue a year ago. But behind the numbers, key changes are taking place that will transform Macau.

    After years of increasing domination by VIP players provided by junket operators, for about a year mass market gamblers have been driving revenue growth. As I wrote in the October issue of Macau Business, the trend will show its biggest impact beyond the casino floor.

    A related trend is the swing toward Cotai, covered in the July issue of Macau Business. Three casino operators already have resorts in Cotai, the entertainment area built on landfill between Macau’s outer islands, and this year the government has approved development applications from the other three. By the end of 2017, there will be at least six new developments in Cotai, built for some US$15 billion.

    Things will surely be different by then. But Macau’s shakeup has already begun, with its effect felt as far away as Beijing and Wall Street.

    Totally globalized native New Yorker and former broadcast news producer Muhammad Cohen is author of Hong Kong On Air, a novel set in his adopted hometown during the 1997 handover about television news, love, betrayal, high finance, and cheap lingerie. See his bio, online archive and more at www.muhammadcohen.com; follow him on Facebook and Twitter @MuhammadCohen.

  • Sands Cotai opens in falling Macau tide

    The world’s biggest Sheraton hotel opened at Sands Cotai Central last week, part of the Macau resort’s second phase that includes a South Pacific themed casino and dozens more retail shops. I covered the phase one opening in April, including an up close and personal encounter with Sheldon Adelson, the chairman of Sands China and its parent company, Las Vegas Sands.

    I’ll be writing more about Sands Cotai Central (SCC) for Asia Times and about Macau casino trends for Macau Business magazine in the weeks ahead.

    Until then, consider that SCC has opened into the teeth of a rare run of slowing casino revenue growth in Macau. The situation resembles conditions facing the 2009 opening of City of Dreams, SCC’s neighbor on the east side of Cotai’s main boulevard, across the Venetian Macao.

    In 2009, the main problem was restricted visas for mainland travelers. In the three years since, Macau has become even more dependent on mainland visitors, and now it’s seeing slowing growth in step with China’s decelerating economy. For better or worse, analysts see Macau resorts becoming more closely tied to the mainland economy in the years ahead. Rather than spreading their bets, it seems Macau’s casinos have doubled down on the mainland.

    Totally globalized native New Yorker and former broadcast news producer Muhammad Cohen is author of Hong Kong On Air, a novel set in his adopted hometown during the 1997 handover about television news, love, betrayal, high finance, and cheap lingerie. See his bio, online archive and more at www.muhammadcohen.com; follow him on Facebook and Twitter @MuhammadCohen.

  • Macau bribe tale winds toward Beijing, Vegas

    Last month, just after the great and good of the casino industry gathered for Global Gaming Expo Asia in Macau, the Wall Street Journal showcased the world casino capital’s shady side. The newspaper reported that Macau lawyer and legislator Leonel Alves passed along a $300 million bribe request to casino operator Sands China from a “high ranking” Beijing official.

    I wrote that the report raises more questions than it answers. Among other things, I suggested the Beijing angle on the bribe could be camouflage for local graft; Alves, who’s been all over the place in his explanations, said in a recent radio interview that there was a Macau developer involved. My Asia Times article also suggested potential legal troubles for Sands China and parent company Las Vegas Sands stemming from the incident, even though it’s clear that the proposed bribe was not paid.

    Answers are emerging thanks to a ProPublica investigation of Alves and his relationship with Sands China. The probe leads straight to Sands China chairman, Las Vegas Sands founder and my press conference pal, Sheldon Adelson, a key Republican and Likud Party benefactor. Stay tuned.

    Totally globalized native New Yorker and former broadcast news producer Muhammad Cohen is author of Hong Kong On Air, a novel set in his adopted hometown during the 1997 handover about television news, love, betrayal, high finance, and cheap lingerie. See his bio, online archive and more at www.muhammadcohen.com, follow him on Facebook and Twitter @MuhammadCohen.