Inside Asian Gaming

August 2008 | INSIDE ASIAN GAMING 5 Cover Story C hina has two self-governing special administrative regions—Hong Kong and Macau. South Korea has one— Jeju Island. Macau and Jeju have autonomy over their own political affairs in all matters except defence and international policy, and recent policy decisions have seen both emerge as regional gaming hotspots. There are numerous similarities between Macau and Jeju. Both are free ports with populations around the half-million mark. Both restrict lucrative dealer jobs to local residents and attract millions of visitors a year. Both have shady pasts that previously held back their gaming markets—the dark days that preceded the handover of Macau’s sovereignty from Portugal to China in December 1999 were characterised by triad (Chinese organised crime groups) turf wars, while Jeju’s casinos have seen business decline over the past few years in the wake of allegations that they were cheating players. Both Macau and Jeju are now enjoying a renaissance, however,with credibility in their gaming sectors buoyed by the arrival of foreign casino-operating expertise. In 2002, the Macau government ended StanleyHo’s40-yearcasinomonopoly,paving the way for new international operators to bring much-needed competition to the market with vastly improved facilities and service levels. The first foreign-run property to arrive in Macau was Las Vegas Sands Corp’s Sands Macao, which opened to the public in May 2004. It was followed by a string of high-quality casino hotels and resorts, including Wynn Macau, Galaxy’s StarWorld, Crown Macau, Venetian Macao and MGM Grand Macau. In Jeju, the US-backed T.H.E. Hotel & LVegas Casino opened on April 25th. It has quickly transformed the market, securing a 39% share of the island’s casino revenue in its first full month of operation,making it the biggest earner of Jeju’s eight casinos. It has Jeju’s Renaissance South Korea’s resort island has seen a marked revival in its gaming industry following the unveiling of the glitzy T.H.E. Hotel & LVegas Casino earlier this year. The group behind the property has set its sights on developing a Vegas-style mega resort on the island also single-handedly restored confidence among players in Jeju’s hitherto maligned gaming industry. According to T.H.E. Hotel & LVegas Casino Chief Marketing Officer Sang H. Park: “Over the last three to four years, casino revenue in Jeju had been going down the tubes. Because of us, revenue has started going back up again. We’re creating excitement with a new casino to give players choice. And the other casinos