Inside Asian Gaming

INSIDE ASIAN GAMING | June 2011 72 I s MGM Resorts International’s ‘non-compete’ agreement with Pansy Ho compatible with Macau’s legal framework for its gaming industry? If ‘yes’, what if anything will the agreement do to the competition landscape in Macau? If ‘no’, what is the Macau government going to do about the deal? The non-compete deal has come about because it looks as though for the first time ever, an individual—Ms Ho—will be allowed to be a shareholder and director of two supposedly competing companies in the Macau gaming market—MGM China Holdings and her father Stanley Ho’s former investment holding company STDM, the parent of SJM Holdings. Even Dr Ho never managed a feat like that in his long career. The reason it is being allowed now looks due in part to Dr Ho’s fragile health and the succession battle that this sparked among his surviving consorts and children for control of STDM and SJM. The Macau government seems to think letting Pansy Ho have some control over MGM China and STDM simultaneously is a lesser Thin End of the Wedge? Pansy Ho’s ‘non-compete’ deal with MGM Resorts has some scratching their heads; and others holding their noses Happy families? Stanley Ho’s illness led Pansy Ho to simultaneous directorships in two supposedly rival Macau companies