Crown Macau opened less than one week ago, the latest casino bidding for its share of the lucrative Asian market. The postponement of a soft opening and its subsequent amalgamation with the gala opening on Saturday 12th May, triggered warning signals, adding to some concerns that had previously surfaced about the casino’s position on Taipa Island. Billed as ‘The 6 Star Experience’ devoted to the high-end gaming market, it appears that the VIP facilities were not in place for opening day.

According to operators Melco PBL Entertainment, Crown Towers Hotel will have 60 rooms available within three weeks and all 216, including villas and suites, by the end of July. The casino at Crown Macau started operations with less than half the proposed 80 VIP tables although the majority of the gaming tables for the mass market are in place. So far business has been less than brisk.

Over recent weeks a slightly less rosy picture of the gambling mecca Macau has been emerging. Future staffing dilemmas; present construction shortages and spiralling costs; labour disputes over illegal immigrants; allegations of continuing corruption; competition for junketeers; just some of the things that highlight the fact that Macau may not continue to be the crock of gold at the end of the rainbow.

Has Crown Macau mistaken its location or its market? Is it one casino or maybe one star too many in the ex-Portuguese enclave? In aiming for the High Rollers, even with a known clientele pool from Crown Melbourne, the operation needs to attract the mass market also.

Taipa Island is away from Wynn Macau and Grand Lisboa on Macau Peninsula, away from the designated Strip hyped to rival Las Vegas. With increasing competition the High Rollers may become thin on the ground for more than one operation, and as yet the mass market has not been persuaded to stay around for more than a day or so.

The billions of dollars being ploughed into the Macau gaming market are expected to show good returns for investors. The early birds have already made their profits but some, such as Las Vegas Sands, are building ever bigger and grander operations. The replica Venetian is scheduled to open soon on the Cotai Strip.

Galaxy Entertainment Group already has five operational casinos, including its flagship StarWorld, and other resort developments including Galaxy Mega Resort in the pipeline. MGM’s first venture in Macau will open later this year. Melco PBL is opening in a highly competitive market.

The Australian gambling scene, where James Packer learned his trade with no nearby casino competition, and the old Macau where Edward Ho’s father had his long-running casino monopoly, are perhaps inadequate training grounds for the new Macau. Or it could be that not even the skill of the junketeers and marketing departments can maintain the runaway pace of gaming industry growth in Macau. Las Vegas did not develop in 5 years; not all operations were or are money makers. The present instant success of Macau may prove more elusive in the future. (E-05.18.06)

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