70 gaming
Suspended animation
edmund Ho says the casinos can ride out the storm under their
own steam but reserves the right to step in
T
he chief executive’s 20 09 Gover n- The audit report from Adelson’s
ing Policies Outline (LAG) gave crown jewel – that hinted at a risk of in-
no concrete measures for the gam- solvency for the north-American conces-
ing sector. Edmund Ho Hau-wah believes sionaire – doesn’t scare Edmund Ho.
the six gaming operators – including Las “I do not see where Las Vegas Sands
Vegas Sands who recently announced might make us consider that. However, if
the suspension of investments in Macau any casino declares bankruptcy, we will
– will manage to guarantee normal daily not permit it to close its doors. We will
operations despite the shadow cast by the negotiate with the creditors so that the
international crisis. casinos may function normally,’’ he said.
The impact on revenue will be a one- Such an intervention will always be provi-
off says Ho but in a situation of insolven- sional, Ho emphasised, and at the end of
cy, he guaranteed that the government the difficulties, the casinos would get their
would take the reigns of the sector. Dis- licence back.
cussions with LVS chief Sheldon Adelson That this “bail-out’’ model follows
have started but nothing has been decided Singapore is denied by Ho. “We do not
nor has Adelson yet found the financing need to (follow them),’’ says Ho, add-
he is looking for. ing that the casino profits won’t suffer
that much because, he says: “In times of
Understanding crisis, people gamble more. What they
sue are on going. won’t do is spend so much in other sec-
“We understand why they suspend- “The competent services are in con- tors, therefore we must try and diversify
ed the investments in Cotai. We cannot tact with the Venetian to find a solution for the markets.’’
intervene in the financing of this or any the employment of the workers”, he added. As well as help for SMEs, the
other company and we do not have the plans for 2009 include a move to in-
measures in place to help them,’’ Ho told Stepping in crease family subsidies in a bid to boost
the assembled media. domestic spending.
Reports say Las Vegas Sands has The government also underlined The LAG is evasive on gaming with
already discussed a loan of US$700 mil- that the decision to suspend investment the only reference being that the govern-
lion (MOP5.6 billion) – but this has not doesn’t imply “the progress of less im- ment “will implement in full all the ad-
been confirmed by the government. portant constructions” and insisted: justment measures announced in April”
The chief executive is aware that the “Gaming will witness a slowing down and that the capitalist system doesn’t
operators’ move to suspend work will but the six operators have enough rev- mean the executive “will take a passive
cause the loss of many jobs and impact enues to guarantee the continuity of their role of non-intervention”. “Adequate so-
resident workers and Ho says negotia- businesses”. There’s no plan, Ho says, for lutions” are being planned. What they
tions with the concessionaire on this is- any reduction to the gaming taxes. are, Ho didn’t say.
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december 2008
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