Taiwan Legalizes Casino Gambling, by Dan Cypra - Poker News Daily - 12th January 2009
The outlying islands of Taiwan will now be open to legal land-based gambling, according to Bloomberg. However, its mainland will remain inaccessible to companies such as MGM Grand and the Las Vegas Sands Corporation. Previously, gambling anywhere in Taiwan was not permitted.
Bloomberg notes the number of casinos that will be permitted is undetermined. Taiwanese Nationalist Party spokesperson Justin Chou told the news outlet, “Because Taiwan’s economy is now falling, the belief is that these resort projects can help spur the economy.” Interactive Media Entertainment and Gaming Association (iMEGA) Chairman Joe Brennan told Poker News Daily that Asia remains a viable location for new gambling enterprises: “It’s one of the reasons why Las Vegas has done so well. The city is a magnet for high-stakes gamblers from the Far East. That’s part of the reason that Macau took off. Its success has had a cascade effect around the Far East.”
Macau plays host to a variety of high-profile tournaments held as part of the Asia Pacific Poker Tour (APPT) and Asian Poker Tour (APT). The latter tournament series invited U.S. Olympic swimmer Michael Phelps to its most recent Macau event; Phelps was in nearby Beijing winning a record eight gold medals, but did not turn out for the APT festivities. The Venetian Macau, according to a 2007 USA Today article, is the largest building by area in all of Asia, coming in at 10.5 million square feet. In addition, the casino boasts 3,000 hotel rooms.
With gambling revenues in Nevada dropping nearly 15% in November of 2008 in comparison to the same time period in 2007, the industry has been hit hard by the sagging economy. Nevertheless, Taiwan will look to compete with Macau and Singapore to bring much-needed revenue to its economy. Brennan explained that the usual process of integrating casinos into a country is to permit it in outlying areas first. Macau, for example, is accessible by helicopter or ferry from the more populous Hong Kong. Many states in the U.S. only allow gambling if it the casino is located over water. Extensive land-based casino markets have cropped up only in Nevada, New Jersey, and Mississippi.
The Central News Agency added that residents of the outlying islands must first approve the measure in order for it to be enacted; over 50% of voters must give their endorsement. The casino gambling law also calls for the establishment of an “outlying island development fund” of nearly $1 billion. No timeline for when a vote would take place was given nor was any indication of when the newly-approved casinos may begin to spring up.
The Las Vegas Sands Corporation is looking forward to the opening of its Marina Bay Sands in Singapore. The 2,600 room hotel features a “Sky Park” that stretches across the roofs of its three towers. The $2.7 billion property is set to welcome gamblers later this year. Analyst Lawrence Klatzkin told the Associated Press, “We expect the fourth-quarter opening of Singapore will result in the opening of the most profitable casino in the world.” The Marina Bay will also feature an indoor canal and ice skating rink, as well as the ArtScience Museum.
Bloomberg expects an investigation into the possibility of legalized gambling on Taiwan’s mainland “only after two or three years of successful operation on the outlying islands.” Despite the news coming out of Asia, shares of the Las Vegas Sands Corporation, which are traded on the New York Stock Exchange (NYSE) under the symbol “LVS,” were down $0.90, or 12.88%, by midday Monday. Shares of MGM Mirage, also found on the NYSE, were down $0.86 to $12.53, a fall of 6.42% on the day. Finally, shares of Trump Entertainment, traded on the NASDAQ under the symbol “TRMP,” were at $0.27, up 3.65% on the day. Over the last 52 weeks, TRMP had traded as high as $4.80.
Edward Sabat took down the most recent APPT Macau Main Event for USD $453,000. The PokerStars sponsored tournament played out at the Grand Waldo Hotel and Casino, drawing 538 players. The 2008 Macau stop on the Asian Poker Tour was won by Yevgeniy Timoshenko, known as “atimos” in the online poker world. Timoshenko grabbed USD $500,000 for his efforts. That tournament series is run by AsianLogic. (Credit: Poker News Daily)
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