Shot down by Chairman Sheldon

Covering the Sands Cotai Central opening on April 12 included attending the news conference with top executives of Sands China and its parent company Las Vegas Sands (LVS). That put me squarely in the sights of the billionaire chairman of both companies, Sheldon Adelson.

During the question and answer period, I introduced myself as Muhammad Cohen from Asia Times and Macau Business , then asked company executives whether they regretted their decision in the face of the 2008 credit crunch to continue building Marina Bay Sands in Singapore while mothballing Sands Cotai Central, initially slated to open in 2009. The Wall Street-led crisis drove LVS to the brink of bankruptcy, requiring a $2 billion lifeline from Adelson. Marina Bay Sands, which cost nearly $6 billion, has become the most profitable casino resort in the world in operating terms. With its delay, Sands Cotai Central has cost $4.4 billion, making it Macau’s most expensive resort to date.

LVS president and chief operating office Michael Leven explained that Marina Bay Sands was already fully financed before the crisis hit, while Sands Cotai Central was only partially funded, based on lenders preferences for the two projects. “I regret that we didn’t complete the building two and a half years ago, because Macau would now be further ahead,” Leven added. “We’re really happy to be able to open it today. This puts the exclamation point at the end of the sentence. It’s a game changer for MICE [meetings, incentives, conventions and exhibitions] in Macau.”

As I furiously scribbled what Leven had said, I heard Chairman Adelson say my name as he unloaded with both barrels.

“I’ve read what you’ve written, Muhammad, and it’s not true,” the 78 year old worth $24.9 billion said. “We didn’t take the money from Macau to Singapore. Not a single pataca, not a single penny went from here to Las Vegas, or from here to Singapore.”

There’s not much I could say in response to that kind of public shoot-down, particularly when it comes from the most powerful man in the global gaming industry. And especially since I never wrote what Adelson said I did.

The charge that LVS has used its Macau profits elsewhere has been raised. Macau Business made reference to that sentiment when it reported Adelson’s earlier “not one pataca” denial a couple of years ago, But I’ve certainly never written that LVS is taking money from Macau for projects elsewhere.

I spent the rest of day basking my ill-gotten notoriety, refuting my culpability to all I met, from Sands China president and CEO Edward Tracy to analysts who suddenly knew my name. “At least he knows your name,” several consoled me.

Sipping champagne ahead of the black tie gala dinner (to which my invitation must have been lost), I managed to issue my denial to Dr Miriam Adelson, the chairman’s wife during the course of a delightful chat. I hope she passed the word to the next pillow.

Totally globalized native New Yorker and former broadcast news producer Muhammad Cohen is author of Hong Kong On Air, a novel set in his adopted hometown during the 1997 handover about television news, love, betrayal, financial crisis, and cheap lingerie. See his biography, online archive and more at www.muhammadcohen.com.

Singapore beats Las Vegas at its own game

Gaming industry analysts project that Singapore beat Las Vegas in casino revenue last year. That’s incredible given that Singapore’s two casinos were in their first full year of operation and total 320,000 square feet of gaming floor, while the Las Vegas Strip has decades of glamorous history, 39 casinos and nearly 3 million square feet of tables and slot machines

The Lion City’s success underscores the gaming industry’s argument that there’s huge unsatisfied demand for casinos in Asia. As I report in Asia Times, other countries in the region hope to copy Singapore’s model of casino development.

Singapore insisted that developers invest billions of dollars to build not just casino hotels, but integrated resorts (IRs) that feature a wide variety of non-gaming attractions. With Resorts World Sentosa weeks away from its second anniversary, the IRs no longer resemble construction sites and have become much more hospitable to visitors.

Marina Bay Sands had a severe fun deficit in its early days. But the world’s most expensive casino resort has blossomed into a destination worthy of its stunning architectural wrapper. Since the resort’s grand opening in June 2010, new additions include US import clubs Pangaea and Avalon, the first Singapore outpost of Banyan Tree Spa, a world class museum, and an ice skating rink, plus restaurants and bars overlooking the bay. Those new attractions along with the presence of people actively engaging the property, have overcome the initial imposing cathedral atmosphere. The arrival of Singapore’s MRT mass transit line this month will bring bigger crowds to add to the fun, and to Singapore’s lead over Las Vegas.

Totally globalized native New Yorker and former broadcast news producer Muhammad Cohen is author of Hong Kong On Air, a novel set in his adopted hometown during the 1997 handover about television news, love, betrayal, financial crisis, and cheap lingerie. See his biography, online archive and more at www.muhammadcohen.com.

Titanic lands in Singapore

One hundred years after its fateful maiden voyage, the Titanic has landed in Singapore. The blockbuster exhibition of facts and artifacts runs through the centennial of the infamous ocean liner’s sailing in April at the Marina Bay Sands’ ArtScience Museum.

Singapore’s casino resorts both include a museum among numerous non-gaming attractions the government required in the bidding for a gaming license. The Maritime Experiential Museum and Aquarium at Resorts World Sentosa and its counterpart are both state of the art facilities with impressive designs and price tags to match.

As I report in the December issue of Macau Business, the Titanic exhibition showcases the extraordinary versatility of the ArtScience Museum and the skill of its curatorial staff. It’s well worth the rather stiff S$24 (US$18.50) price of admission, even if you have no prior interest in the ship, have never seen the movie, and loath its theme song.

There are other titanic happenings in Singapore’s casino industry that you can read about soon in Asia Times. Until then, thanks for your interest and support throughout the year. Best to you and your loved ones for 2012.

Totally globalized native New Yorker and former broadcast news producer Muhammad Cohen is author of Hong Kong On Air, a novel set in his adopted hometown during the 1997 handover about television news, love, betrayal, financial crisis, and cheap lingerie. See his biography, online archive and more at www.muhammadcohen.com.

Singapore casinos beat long odds

Bulletin (new date): My interview on Macau’s TDM Talk Show will be televised on its Portuguese channel on Saturday, July 2 at 8pm (Macau/Hong Kong/China time; Saturday 8am US Eastern time) and be repeated Sunday night/Monday morning at 12.30 am. After the initial airing, you can watch it on the TDM website via the TDM Talk Show link. Hope you’ll tune in for my talk (in English) with Natalya Molok about Macau gaming, Hong Kong On Air – the perfect read for this Hong Kong Reunification Day weekend, as well as July 4th – and Writing Camp.

Plenty of experts doubted that Singapore’s experiment with two casinos would succeed. Not because of Singapore’s straitlaced reputation, nor because of unprecedented public opposition to the so-called integrated resorts (IRs). The issue was money.

Marina Bay Sands at $6.9 billion and Resorts World Sentosa at $5.7 billion are the two most expensive casino resorts ever built. (MGM’s $9 billion-plus City Center in Las Vegas includes residential and office components.) “They’ll have to be much more successful than the most profitable casino in history,” a skeptical analyst told me while the IRs were under construction.

A year after the grand opening of Marina Bay Sands, Singapore’s two IRs have become the world’s two most profitable casino resorts, helping fuel a tourism boom in Singapore. Yet, as I wrote in Asia Times, there’s little joy over the achievement.

Earlier this year, I highlighted the fun gap at Marina Bay Sands amid its renowned architecture. That report in Macau Business also examined the odd departure of Marina Bay Sands CEO Thomas Arasi after delivering company record profits. Sometimes, it seems, money alone can’t buy happiness.

Totally globalized native New Yorker and former broadcast news producer Muhammad Cohen is author of Hong Kong On Air, a novel set in his adopted hometown during the 1997 handover about television news, love, betrayal, financial crisis, and cheap lingerie.

Singapore casino revenue remains a gamble

I’m a big fan of Fareed Zakaria, and Fareed Zakaria GPS on CNN is must-see TV for me. That’s why I was so disappointed last week when he touted Singapore as the “top-ranked innovator on the globe” during his cyber-guided of a government-sponsored high tech research center. I told him so in an email with the subject line “Singa-puffery” that read:

Shame on you (and CNN, where I worked as a producer) for broadcasting this propaganda. I wish you’d instead used your considerable skill and clout to report on Singapore’s suppression of freedom, its nepotism, and its economic shenanigans at home and abroad. As a reporter attempting to cover Singapore, I know the kinds of obstacles you’d face. But, yes, the cyber-guides and the trains do indeed run on time.

Highlighting the sunny side of Singapore reinforces the government’s mythology that creativity can flourish under its particular brand of political, economic and social repression. Despite sky high white collar wages and living standards, housing subsidies, and international crossroads status, one of Singapore’s biggest challenges is keeping its best and brightest from migrating overseas.

Fallout from Singapore’s suppression and its “we’ll tell you what we want, when we want” approach spreads far and wide. Casinos, the latest big thing in Singapore, don’t escape.

Thanks to the government’s low priority on transparency, casino operators’ third quarter reports leave investors guessing about the size of Singapore’s gambling market. Analysts and investors also must guess about the split of the market between visitors and local residents. As I wrote in Asia Times, Singaporeans may face further restrictions on gambling if the government thinks they’re spending too much at the casinos, so the local market share number really matters. Singapore’s government has data that could shed light on this critical statistic, but it chooses not to reveal it. In fact, the government has not released any gambling statistics, except for a few random scraps mainly in response to questions in Parliament, since the first bet was placed in February.

Macau provides a full range of monthly and quarterly gambling statistics so that investors can make informed choices about its casino operators and build businesses to complement the gambling trade. Seeing Macau, no paragon of information freedom, beating it on a matter of transparency and openness should help Singapore realize it has a serious problem – and fix it.

Totally globalized native New Yorker and former broadcast news producer Muhammad Cohen is author of Hong Kong On Air, a novel set in his adopted hometown during the 1997 handover about television news, love, betrayal, financial crisis, and cheap lingerie.

Singapore keeps experimenting

While in Singapore for the grand opening of the Marina Bay Sands casino resort, I had an evening out with Dennis Foo, CEO of Saint James Holdings and Singapore’s leading nightlife impresario. We started at Saint James Power Station, a ten club complex that Foo created inside a decommissioned electric generating plant. The different room feature entertainment from Canto pop to hard rock to Paraguayan acoustic, and, even on a Wednesday night during World Cup, the place was hopping.

After giving me the tour, Foo suggested we check out Shanghai Dolly. As in most Foo’s clubs, live entertainment is big part of the Shanghai Dolly experience. There are about 20 Shanghai Dollies, including some male Dollies, singing mainly in Mandarin and dancing in the vast downstairs bar area with tables and a dance floor. In the best tradition of modern Singapore, the show is sexy but not sleazy. Upstairs, there’s a restaurant that serves food until 3:30am, and a piano lounge, where a Dolly tickles the ivories and sings alone with a partner. A fellow patron assured me that I could request songs in English.

Shanghai Dolly’s success seems natural; Foo claims it’s the highest grossing club in Singapore – but Foo reminded me that he took over the site from Crazy Horse Paris. Singapore’s government brought in a branch of the French topless cabaret to boost tourism and demonstrate that it had grown up into a modern, progressive city, no more nanny state. Crazy Horse was a dismal failure. Singapore’s casino resorts are another bold step with the same aim. As I wrote in Asia Times, even the boldest step is simply the first step along a lengthy road to success, or failure.

Totally globalized native New Yorker and former broadcast news producer Muhammad Cohen is author of Hong Kong On Air, a novel set in his adopted hometown during the 1997 handover about television news, love, betrayal, financial crisis, and cheap lingerie.

Casinos make bad bets in Asia

The world’s two most expensive casino resorts are now open in Singapore, whether the Lion City likes it or not. As I wrote in Asia Times, Singapore didn’t want casinos, just the theme park, convention center, museums and other attractions that it was able to squeeze out the developers in exchange for allowing the gambling dens. However, Singapore’s nanny state ways limit casino revenue. That promises trouble for developers Las Vegas Sands and Malaysia’s Genting Group that are investing a combined $10 billion in their resorts, and for Singapore, too.

Singapore isn’t the only Asian city where casino developers are placing bad bets. Billionaire Steve Wynn’s infatuation with China’s government and disdain for the Obama administration got another airing at last month’s debut of his Encore Macau property. Wynn’s plan to plunk down another couple billion dollars in Macau illustrates precisely why to be wary of Macau, especially if you’re Steve Wynn.

Totally globalized native New Yorker and former broadcast news producer Muhammad Cohen is author of Hong Kong On Air, a novel set in his adopted hometown during the 1997 handover about television news, love, betrayal, financial crisis, and cheap lingerie.

Singapore lets the games begin

The first casino in Singapore opens this Sunday. The US$4.6 billion Resorts World Sentosa project features the world’s largest Universal Studios theme park, six hotels, and, later, the world’s largest aquarium. Later this year, Las Vegas Sands, owner of the Venetian resorts in Las Vegas and Macau, will open the US$5.6 billion Marina Bay Sands as Singapore’s second integrated resort, featuring Asia’s largest convention center along with its casino. Singapore’s government wants the added tourist amenities; to get them built, it’s willing to tolerate the casinos, albeit with restrictions on size and some key operations. The authorities bent the rules to enable Resorts World Sentosa, owned by Malaysia-based Genting, to open its casino in time for Chinese New Year before the Universal Studios theme park is fully operational. As the developers struggle to make these obscenely expensive resorts profitable, the high stakes game to watch is whether Singapore keeps bending the rules in their favor.

Totally globalized native New Yorker and former broadcast news producer Muhammad Cohen is author of Hong Kong On Air, a novel set in his adopted hometown during the 1997 handover about television news, love, betrayal, financial crisis, and cheap lingerie.

Putting Your Mouth Where Your Money Is

Macau’s two biggest American casinos operators are making plans for share sales in Hong Kong, as detailed in my Asia Times report. Analysts are divided on whether the Macau operations of Las Vegas Sands, owner of the Venetian Macao, and Wynn Resorts are worth a gamble. Before placing their bets, investors might also want to consider the leaders of these two companies.

Wynn founder Steve Wynn and LVS chairman Sheldon Adelson are both self-made multi-millionaires. They also share an apparent conviction that success bestows skills beyond their fields of apparent expertise.

Adelson fancies himself as a master of repartee. During LVS’s earnings conference call, according to the transcript from www.AlphaRising.com, one analyst trying to discuss that possible stock offering (or IPO for initial public offering) prompted the following exchange:

Analyst: What is the earliest you think you can do something in Hong Kong?
Adelson: What do you mean do something in Hong Kong? You mean go to have dinner there?
Analyst: Well, you will probably do that pretty soon. You probably…
Adelson: We have great Chinese restaurants…

Adelson loves showing off his conviction that he’s the cleverest guy in the room. In BBC interview just after LVS’s close escape from bankruptcy last year, reporter Sharanjit Leyl asked about financing the Marina Bay Sands in Singapore, the most expensive casino resort ever built, price estimates reaching US$8 billion. Adelson brushed aside the inquiries. When Leyl rephrased the question to ask about his “problem with money,” a visibly annoyed Adelson replied, “I don’t have a problem with money. We don’t have any arguments, any confrontations. Money and I get along very well.”

Steve Wynn wouldn’t talk about his company’s IPO filing during his conference call with analysts last month, but he opted to play talk radio demagogue. “Right now we are watching the United States government deal with complex problems that clearly seem to be beyond their intellectual ability,” Wynn said. “Right now, we are more afraid of Washington than we are of the economy.”

Denouncing “bombastic rhetoric from the White House and from the administration,” Wynn said, “There is an attitude that, there is a very definite bias in this administration that business is bad… The President of the United States has his own office and he has his own group of little cadre of people that agree with him and look at the world just the way he does and they don’t listen to anybody from what I’ve heard from my business friends. They invite people down to Washington and tell them what they think, they don’t ask or listen to anybody.”

In this conference call meant to discuss company earnings and business prospects, Wynn went on to praise China – “maybe we could all learn a lesson by watching what happens there…. but I’ll bet you that government sees to it that economy and that workforce is protected” – and Macau’s incoming Chief Executive Fernando Chui Sai-on, who was chosen to run unopposed in a backroom deal and endorsed by the 300 electors (also chosen in an unopposed election) voting for Macua’s leader in the local Beijing-approved version of democracy.

Chui is a member of the cabal of families that have dominated Macau for generations. His candidacy sparked outrage among grassroots Macau, including a protest ad that had to be run in Hong Kong newspaper because no Macau publication would dare risk the wrath of the entrenched elite.

From Macau’s handover to China in December 1999 until this May, Chui served secretary for social and cultural affairs, reportedly using his position to enrich family business interests. Chui undeniably did little to improve Macau dismal social services, most notably healthcare, Chui’s area of academic training including a US PhD, despite Macau’s vast government surpluses thanks to the casino boom. People in Macau at best see Chui as an empty suit fronting for big business interests (which, given a chance to do it again, would have never let Wynn or Adelson into Macau), more commonly as a not particularly smart or honest empty suit.

But for Steve Wynn, Chui is a heroic figure. Contrasting Chui with the US leadership, Wynn praised Chui for “understanding issues that affect people” as well as exemplifying the “the level of education and sophistication that permeates the Chinese, the People’s Republic of China government.

“These are very smart people, very highly educated people, very thoughtful people. My own feeling is the government of Macau will protect and so will the central government in Beijing and the regional government in Zhuhai at Guangdong province, Guangzhou. The government will do a very enlightened and thoughtful job of protecting the interest of the citizens and the business enterprises that support the health of those businesses.”

Yet, no matter how lavish their praise for China’s government, Wynn and other international investors in China never get around to trading in their passports for Chinese citizenship.

Totally globalized native New Yorker and former broadcast news producer Muhammad Cohen is author of Hong Kong On Air, a novel set in his adopted hometown during the 1997 handover about television news, love, betrayal, financial crisis, and cheap lingerie.