Inside Asian Gaming

Genting also made a play in Singa­ pore with Universal Studios for the right to a casino license and boosted its stake in UK's largest casino, Stanley Leisure pie, to 19.1 percent. These moves are viewed positively among fund managers as ways to help Genting move out of a purely domestic role and become a far more competitive casino player in the region, particularly since growth opportunities in Malaysia are limited. "They're now playing their version of roulette - placing bets around the region and waiting to see which one pays off," a fund manager was quoted as saying shortly after Genting's share placement in K. Wah. Genting is making some quiet moves and playing the waiting game. Rather than answer our queries and offer pro­ jections on the future of gaming in the region, Genting gave Inside Asian Gaming a book looking back on how the company began 40 years ago, and the opening of its first resort hotel in 1971, the same year Stanley Ho opened the Lisboa Hotel in Macau. Horrors of the occupation Genting's founder, 87-year-old Lim Goh Tong, wrote an autobiography, My Story, published two years ago, the same year he retired and handed over the reins to son, Lim Kok Thay, the man behind Star Cruises Limited, Asia's largest lux­ ury casino cruise ship company. The book reveals some interesting parallels with Macau casino founder Stanley Ho, whom Lim Goi Tong met in 1969. Born in 1918, just three years before Stanley Ho, Goh Tong also experienced the horrors of the Japanese Occupation. Both managed to escape unscathed with a new drive to make a difference after the war. "My brushes with death during the Japanese Occupation had not only taught me valuable lessons, but also changed my entire outlook on life," Goh Tong wrote. He started out in the iron ore business and years later, in his 50s, discovered Genting Sempah, a cool mountain re­ treat just 50 kilometres outside Kuala Lumpur. "My first vision for the Genting reso1t was a highland retreat where the old and the young families could come to holiday," he wrote. "I had no illusions that Genting, with only its refreshing, cool climate to offer in its initial stage of development, could pull in the big crowds. My plan, therefore, was to start with only a modest 38-room hotel." Meeting Stanley Ho But the Malaysian government had bigger things in mind for him. In 1969, Tunku Abdul Rahman, Ma­ laysia's first Prime Minister, visited Genting and told Goh Tong that the gov­ ernment would "favorably consider" an application from Genting to operate a casino to help boost tourism. Here's where the underlying differ­ ence between Stanley Ho and Goh Tong became clear. Goh Tong knew nothing about gaming. Malaysia, a predomi­ nantly Islamic society, wa� a country unfamiliar with throwing money on dice and cards. So, Goh Tong decided to travel to Hong Kong to find out about Stanley Ho's plans for Macau and to seek a part­ nership. Goh Tong describes his encounter with Stanley Ho: "He only smiled. I understood what he meant: I was in no position to talk about co-operation since I did not even have the casino license yet." Goh Tong returned to Malaysia one week later and submitted an application for a casino license. Just six hours af­ ter submission, his application was ap­ proved. Genting Highlands became the first and only casino license holder in the country. Malaysia's Home Minister supported the idea on grounds that a legal casino would curb illegal gambling activities and boost tourism. "A fortnight later I met him [Stanley Ho] again in Hong Kong to discuss the issue of co-operation in running the casino. He could hardly believe that I had secured the license so quickly and commented that I was the fastest man in the world to have achieved such a feat. However, for certain reasons, we did not succeed in reaching an agreement." Instead, Goh Tong signed on with the late Chun Rak-won, founder of the Par­ adise Group and "godfather" of Korea's casino business. They signed a 3-year contract for the Paradise Group to man­ age the Genting casino. The agreement Inside Asian Gaming September 2005 19