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Gambling on Rise in Asia

SINGAPORE – As reported by Reuters: "…Many Asian governments are showing signs of relaxing conservative rules on gambling, partly to tap new streams of tax revenue and fund infrastructure, experts say.

"And as China's burgeoning middle class bets its freshly minted wealth, casino operators are scouting for investment opportunities.

"…Michael Gore, who runs a Malaysia-based gaming consultancy, Jayport Holdings Ltd, estimates Asia's US$4.1 billion casino industry will grow six percent a year over the next 20 years as rules change to allow legal casinos to expand.

"…Spurring the growth is a relaxation in travel rules in China, where a sizzling economy is fuelling a growing middle class of big spenders in a country that bans gambling.

"…Even those on package tours often choose to visit gambling centres. Last year alone, 1.5 million mainland Chinese went to Genting, the site of Malaysia's sole casino, Gore said.

"…Macau is considered a testing ground for the potential of Asia's casino market.

"…But the number of punters jostling for seats at the card tables shows there is still massive demand for more casinos. Gore estimates the Macau casinos make a daily profit of US$28,571 per table, compared with just US$1,000 in the huge Las Vegas establishments.

"…Gambling in Japan is strictly limited to a handful of events such as horse racing and `pachinko', a hugely popular game resembling pinball, but some cash-strapped Japanese provinces early this year asked the central government to lift the ban on casinos.

"The Philippines is one of the few other Asian countries to allow gambling. Casino operator Philippine Amusement and Gaming Corp (Pagcor) said Hong Kong investor Chow Tai Fook will invest US$120 million in a hotel-casino project at a tourism development zone proposed by Pagcor.

"South Koreans were banned from gambling until October 2000, when the government issued a monopoly licence to Kangwon Land Inc (KSE:35250.KS -) to operate casinos for local citizens until 2005.

"Early this year the government said it was planning to allow overseas investors to open casinos as part of a drive to develop the tourism industry…"

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