World's biggest casino operator eyes Asian ventures
Posted by Gavin Smith on 03 Jun 2009 at 09:06
The world's biggest operator of casinos looks ready to expand into the Asian market, according to reports.
Harrah's Entertainment could develop growth in Taiwan and Japan, according to a report from the Guardian/Reuters.
So far the company has not made a move in the region, although the likes of American companies MGM Mirage and Wynn Resorts have already ploughed billions of dollars into schemes there.
Michael Chen, Harrah's president for Asia, spoke to Reuters and said: "Asia remains highly underpenetrated as a market for gaming. There is enormous upside."
The agency also said Mr Chen declared the company was looking to source a significant amount of revenue from Asia over the next decade or so, depending on how changes to local gaming rules go.
In Asia there are only about 100 casinos, compared to more than 800 in the United States, he also said.
Asia has a growing population of affluent adults, with Taiwan having a particularly large population of wealthy people, while gamers in Japan and China are also likely sources of income.
Back in January, Taiwan voted to permit gambling, although it has been limited to islands offshore with a view to attracting a new tourist industry.
In Japan progress towards the legalisation of casinos has been slower after concerns it could impact on social issues.
According to Reuters, when Mr Chen was quizzed on when the company's move into the region might begin he said liberalisation of gaming there was measured "in decades" and it was therefore difficult to say.
However, casino companies across the world are currently balancing the desire to expand to new markets with ongoing world financial pressures.
According to the Reuters report, Mr Chen added the company was still interested in Macau, China, which has recently emerged to rival Las Vegas in terms of the amount of money spent by consumers.
Harrah's has yet to bid for a licence in Macau, which is the only region of China in which gambling is permitted and attracts national and international visitors.
However, according to reports, the company is already the owner of a golf course there which cost them US$577.7 million in 2007.
Foreign firms are already in situ in Macau with Las Vergas Sands among those already boasting a licence.
Macau has recently been hit by a tightening in the restrictions on visas for visiting Chinese, although experts have said these could ease again in future.
The Reuters report also said Mr Chen pointed out that any new casinos appearing in Taiwan after legalisation could well be smaller in size because of their likely locations.
He also added Japan could see large entertainment-type venues in major cities while places like Taiwan could have more beach-resort type facilities.
Quoted by Reuters, Mr Chen also said of Macau: "The government has been very clear that there will be no additional licences.
"Things have a tendency to change, there might be an opportunity for us."
