Insight CASHLESS IN CHINA
CASHLESS TRIAL PUT ON TRIAL
Investors had been closely watching the progress of the new Jesters casino bar, part of the newly opened
Mangrove Tree Resort on Sanya Bay in China's southern Hainan island. Just before it was shutdown.
China’s first mainland cashless casino concept was thought to have the potential to siphon business from the world's largest gaming hub in Macau, which is an hour's flight away from Hainan island. However, as quickly as the casino bar opened, the local authorities shut it down and launched an investigation into illegal gaming on the premises. Jesters, a part of the newly opened Mangrove Tree Resort World in Sanya Bay, offered hotel guests the chance to win points that could be used to pay for accommodation, luxury goods, jewellery and artwork on sale at the resort. Owned by real estate mogul Zhang Baoquan, Mr. Baoquan claimed that the casino bar marked the Chinese government's first tacit approval of a gaming concept outside of Macau.
It is thought that at least 10 licenses were about to be issued by Sanya officials when Jesters was shut down, with investors in Hong Kong dismayed at the closure of the southern Chinese island casino. The local government still wants to develop Hainan to be the first place in China to legalise gaming outside of Macau, but its test-run, encountered a snag that could put a halt to the cashless concept.
Mr. Baoquan claimed that while the casino bar was something of a test and that the government was closely monitoring its progress, with the cashless phase seen as an initial stage before legalised casino gaming was allowed at the 173-acre property. Unfortunately, it seems that the government was watching the progress of the Jesters’ concept, though not with an eye to approving it. Chinese investigators commented: “We are investigating the bar, and so far it looks like they have violated their operating regulations. When we approved it the regulations and the certificate said its operations would be in nature entertainment, but within the bar there are some games and they’ve gone beyond the scope of the regulations, so we closed it down.”
Mangrove Tree Resort World, the newest addition to Hainan's rapidly developing hotel scene, will be China’s biggest resort when construction is completed next year. It will have more than 4,000 rooms, a convention hall accommodating 6,000 people and facilities including a water park. It is one of 10 integrated resorts that Mr. Baoquan is developing around the country, including another in Sanya and others stretching from Lhasa in Tibet to the eastern coastal city Qingdao.
While the Chinese government does not permit casinos in the country outside of Macau, Mr. Baoquan - ranked by Forbes as one of the country's 300 richest people in 2012 with $600m, previously said Hainan could become an exception.
Before its swift closure, Jesters had modelled itself on Macau's casino floors, but with players buying tickets costing 500 yuan ($80) each. Bets range from 20-2,000 yuan in the mass area, while the high-limits area is set at 2,000-100,000 yuan. High rollers were be able to place bets over 100,000 yuan once the VIP room opens on the second floor. Winning players received 'Mangrove' points to buy products available in the casino such as an iPad or Rimowa suitcases. Once luxury brands open outlets within the resort, customers would be able to spend their points in those stores. MGM Resorts International opened a hotel in Sanya last year and US casino operator Caesars Entertainment is set to open a hotel in 2014.
April 2013 PAGE 29
The casino bar, with 50 gaming tables, is currently closed to hotel guests, though the plan had been to allow local residents to play once the resort had been completed.
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