Feb 11 2007
It’s confirmed that Singapore’s casino regulators are seeking “clarification” from Genting Group (KLSE: GENTING, stock-code 3182 over its links with Macau casino tycoon Stanley Ho – according to the Star. I think that’s a strong statement to make when Stanley was said to be connected to Chinese underworld. Of course no concrete evidence has been produced to prove the connection else Stanley won’t be where he is today. The news of the partnership has sent Genting stock price skyrocket earlier.
Ever since the news broke about the swapping of interest between Star Cruise Ltd (SIN: S21) and Stanley to enable both to gain entry to Macau and Singapore casino business respectively, “Red Alert” was triggered by Singapore 
authorities. But Sentosa Integrated Resort’s assistant communications director, Jackson Loy, said that Ho would not have any stake in the resort.
authorities. But Sentosa Integrated Resort’s assistant communications director, Jackson Loy, said that Ho would not have any stake in the resort. A Home Affairs statement said: “The Casino Regulation Division is seeking clarification from Star Cruises / Genting International (SIN: G13) about the share placement and other deals in Macau.” The concern could be due to the fact that Stanley’s daughter; Pansy is working with MGM Mirage group (NYSE: MGM, stock) to build a casino in Macau which prompted New Jersey regulators to check the deal.
Rumors said amongst others, triads are operating within Stanley’s private gaming rooms where loan-sharking and money laundering allegedly takes place. If this is true, it’s not a surprise at all considering Stanley has been monopolizing and almost rule the land of Macau for the last 40 years within his throne before Macau was handed back to China and his monopoly broken subsequently.
But question remains if Genting will be able to set its’ foot on Macau’s soil now that Stanley will not be allowed into Star Cruises stake and indirectly Sentosa IR at all. As what I’ve blogged prior, there’s no value in having Stanley into Sentosa’s IR at all. And if there’s no value, why should Singapore let the partnership materialize knowing that social risk such as loan-sharking will flourish? It’ll be interesting to see the effect on the stock price once it’s confirmed Genting will not penetrate into Macau’s casino business after all.
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February 11th, 2007 by financetwitter
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