MACAU BUSINESS By Paolo A. Azevedo By Jorge Costa Oliveira, Partner and CEO, JCO Consulting nazarovsergey/Adobe Stock
Jeju – the new Singapore
Macau VIP gaming sector demise Until 2002, and its historical background
M 18 OCTOBER 2017 G 20 MAY 2022
acau Business – From Lotte World, a major recreational complex [with the world’s largest indoor theme park, in Seoul] to an integrated resort with casino in Jeju. A different beast. A
natural evolution? Lawrence Teo – Business is the same. But building
only unlawful but a crime under Macau laws. Yet, the Macau authorities knew of it, acknowledged its existence and allowed its continuous growth…
a landmark. M. B. – The group [Lotte] has created other landmarks in different types of business. Why would this be different? L. T. – Yes, Lotte Group has already created
downtown Seoul and Lotte Super Tower. We’re trying
iven that it accounted then for 2/3 of the overall GGR, and the situation was untenable in the medium term, public policy changed and casino gaming credit was regulated and brought into the boundaries of lawfulness. A
specific Law (no. 5/2004) was enacted and casino gaming concessionaires (and sub-concessionaires) and gaming promoters were allowed to grant credit as long as they had agreements with casino (sub-) concessionaires. Gaming promotion was regulated (RA no. 6/2002) and their activity subject to licensing and supervision from the Macau Gaming Inspection and Coordination Bureau (DICJ).
(2002~2007), casino gaming promoters (junkets duly licensed in Macau) were the traditional way of granting credit for gaming to patrons from jurisdictions on which said activity – or at least the collection of gaming debts – was unlawful. And, given the previous practice of S.T.D.M. of not accepting junkets but from Macau and Hong Kong (with very few exceptions for Thailand and Indonesia), all major relevant gaming promoters, working essentially with Mainland China wealthy patrons, were from Macau (and Hong Kong). This led to a thesis that gaming promoters were the local component of the Macau casino gaming industry, given that controlling shareholders of all concessionaires (and sub-concessionaires)
In the beginning of the casino gaming liberalization
Macau credit for gaming (usually mentioned as VIP gaming) was not M. B. – What are the main goals that you definitely
to do the Dream Tower in Jeju. Lotte here is being just a family company; we’re a different company [Lotte Tour]. It’s not going to be [just] the tallest and the largest building in Jeju, that’s just the hardware. We say that a landmark should be the most visited destination, where tourists will go to eat, shop and maybe [visit] our observation deck. A must-visit point destination. Because of the hardware, and also the software.
want to achieve with this Integrated Resort (IR)? L. T. – Number one EBIDTA on IR in Korea. There’s
Jeju will be as big as Singapore in terms of Gross Gaming Revenue, predicts Lawrence Teo. The Chief Operations Officer and Vice President of Dream Tower, the tallest Integrated Resort under construction on the Korean destination island, explains to Macau Business why Lotte Tour decided to enter the casino business and create a landmark. All bets are on making the casino resort the crown of the tourism jewel the company has been dominating for four decades
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