Inside Asian Gaming

43 August 2013 | INSIDE ASIAN GAMING REGIONAL BRIEFS Macau Operator Arrested in Fraud Probe An executive with Macau’s New Century Hotel and Greek Mythology Casino was arrested last month on suspicion of defrauding Macau and mainland Chinese investors of MOP320 million (US$40 million). Chen Mei Huan, also known as Chan Mei Fun, is alleged to have used some of the money she collected to open a VIP room in Greek Mythology, among other gaming-related deals. She was arrested by local authorities when she tried to leave Macau by helicopter. Police said she had entered the city using false identification. She was released on bail after questioning, her attorney said. Ms Chen had been involved in a bitter dispute with her former boyfriend, junket room operator and promoter Ng Man Sun, reputedly over control of the hotel and casino. Mr Ng, widely known in Macau and Hong Kong as Ng Wai and “Street Market Wai,” is reported to be an investor in Greek Mythology. He was attacked and beaten by a gang of men in a New Century restaurant back in June 2012. No one was charged in connection with the attack, which some believe was linked to the feud with Ms Chen. The two have since settled their differences, according to reports. Greek Mythology, located on the neighboring island of Taipa, is one of the 14“satellite”casinos owned and operated by third parties under SJM’s gaming concession. For Chinese, a Paradise in Korea Chinese gamblers are the focus of a US$1.7 billion megaresort planned for a special economic zone near South Korea’s Incheon international airport. Paradise Entertainment, a leading operator in the country’s foreigners-only casinomarket, is teamingupwith Japanesepachinko giant Sega Sammy on the resort, located on the Yeongjongdo Island SEZ about 25 miles west of the capital of Seoul. With a first phase slated for completion in 2017, “Paradise City,” as it’s called, will be the largest development of its kind in South Korea and ultimately will include several hotels in addition to restaurants, retail shopping, entertainment and other attractions. Groundbreaking is set for April of next year. Paradise expects the resort to attract 160,000 visitors a day, of which two-thirds are likely to be Chinese, it says. China generated the largest share of visitors to the country’s 16 foreigners-only casinos last year, nearly 41% of the total, followed by Japan at 33%. The country attracted some 11 million foreign tourists in all in 2012, and Chinese tourism is up nearly 50% through the first nine months of this year. The SEZs, of which there are several across the country, are designed to boost these numbers by providing tax breaks, low capital requirements and other incentives to attract foreign and domestic investment. Paradise and state-sponsored rival Grand Korea Leisure account for about 90% of South Korea’s foreigners-only market. There is a domestic market, and it is equally as large in revenue terms, but it is restricted by law to one casino in the remote northeast of the country. The China factor is a big consideration, however, and has attracted the interest of a number of global operators. US casino giant Caesars and Japan’s Universal Entertainment applied for Incheon licenses but both were rejected earlier this year for reasons the government did not specify. Poker a Game of ‘Skill,’ Says India Court In a ruling that could have broad implications in the second-most populous gambling market in the world, the High Court of the Indian state of Karnatka has declared poker a game of skill and therefore exempt from licensing requirements. The case arose from a petition filed by the Indian Poker Association against police raids on card clubs, complaining that officers were “humiliating and harassing aspiring poker players by filing cases against them”. A report in Card Player citing the English-language Bangalore Mirror did not define “aspiring,” but the ruling addressed venues offering games to both amateurs and professionals, stating that neither is obligated to obtain licensing. An IPA spokesman said the court based its decision on a 1977 case in the state in which it was ruled that “It is manifest that a game of skill would not be held to be gambling.” He explained, “Poker is a game of skill, just like golf, cricket, scrabble, carom, rummy, basketball or volleyball, and betting or wagering in games of skill or athletic games in Karnataka is permissible. The only two states where betting or wagering is not permissible, even in games of skill, is Odisha and Assam.” The complaint stemmed from a police raid in July on the Royal Flush Sports and Cultural Association in Chamrajpet that resulted in criminal charges against 30 players. The IPA is suing the police involved in the crackdown. The High Court declined to hear that case, saying it has to be pursued elsewhere. Greek Mythology Casino