Gaming mogul Steve Wynn signed a deal yesterday to go into the casino business here, promising to bring a taste of Las Vegas to Macau as its gambling industry opens to competition for the first time in 40 years.
Macau recently ended the four-decade casino monopoly held by the Hong Kong tycoon Stanley Ho, and Wynn Resort (Macau) Ltd got one of three licenses made available. Another went to Las Vegas rival Galaxy Casino Co Ltd, controlled by Las Vegas Sands Inc.
Ho has the third license and is in the process of spiffing up his 11 casinos in Macau. He recently put up some huge neon lights, reminiscent of the old-style Las Vegas, on his Lisboa hotel-casino complex.
Wynn signed his deal in a ceremony yesterday with Macau's political leader, CEO Edmund Ho.
After the signing, Francis Tam, chairman of the Macau Tender Committee for Gaming Concession, said the contract would be for 20 years and begin on Tuesday. It stipulates that Wynn Resort must invest 4 billion Macau patacas (US$512.8 million) within 7 years and finish construction of the first phase of the resort and entertainment complex by 2006.
In addition to paying millions of patacas (millions of US dollars) in land premiums, the new resort will have to pay 1.6 percent of gross income to public charities and another 2.4 percent of gross income to developing Macau's city infrastructure.
"We have confidence that this is bringing a new beginning to Macau's tourism industry," Tam said.
Wynn said he was restricted by US law from disclosing further details of his investment plan. But he expressed excitement over the project.
The Las Vegas gambling giants got their Macau casino licenses in February but it has taken longer than anticipated to sign the deals for reasons neither the companies nor the Macau government have specified.
Macau's casinos get much of their business from Hong Kong gamblers. Two of them riding a ferry to Macau on Monday morning said they think the competition will rejuvenate Macau's gaming industry with new ideas and give players a better deal.
"Stanley Ho won't be able to have his own way all the time any more," said Cheung Sin-kwong, a retired businessman.
In contrast to the glitter and glamour of Las Vegas, the casinos in Macau are more austere -- with little atmosphere to enliven action at the gaming tables.
"I think the competition should make it more fun and at least things will be cheaper," said another gambler, Leung Kwan.
Macau, 64km to the west of Hong Kong, was governed by Portugal for 442 years before it was returned to China in December 1999.
It has a high level of political and legal autonomy under an arrangement dubbed "one country, two systems" that is modeled on the Hong Kong government formula put in place when it returned to Chinese sovereignty in July 1997.
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