Wearing the Victor’s Crown

Through last year, millions of people sat in plush, brightly lit rooms till wee hours of the morning, trying their luck. That was in Macau, the world’s new gambling capital. Yes, the once-sleepy Portuguese colony attracted 27 million visitors in 2007. Macau has already surpassed Las Vegas in terms of gaming revenues. With the number of visitors to Macau rising steady, gaming revenues generated by this SAR (special administrative region) on China’s southern edge is widely expected to surpass that generated by the entire state of Nevada in the US in 2008. This potential has grabbed the attention of investors across the globe… private investors and venture capitalists eyeing their share of the prospects of Macau’s gaming industry.

While Macau gets geared to achieve these milestones, this has been possible only because the investors and stakeholders of the region’s resorts and casinos have been dedicated to making a mark in the gaming and entertainment industries. Take for instance Melco Crown Entertainment, a developer, owner and operator of casinos and resorts in Macau. On December 19, 2006, Melco Crown Entertainment was listed on the Nasdaq as Melco PBL Entertainment (Macau) Ltd and under the ticker symbol “MPEL.” The company raised approximately US$1.5 billion in its IPO, ranking the fourth largest IPO in the US in that year. Earlier this year, Melco PBL Entertainment changed its name to Melco Crown Entertainment Limited.

The company inaugurated its first property, Crown Macau, last year. The Crown Macau is today the world’s largest casino in terms of betting volume. In February, the Crown’s gambling revenues were almost HK$50 billion, representing 23% of Macau’s VIP gambling proceeds. Melco has gone on to signing a deal with Macau’s most profitable junket group to only gamble at the Crown Macau, grabbing the lion’s share of Macau’s VIP market.

Melco’s business also includes the Mocha Clubs (www.mochaclubs.com), which has more than a thousand gaming machines in 7 different locations. The Mocha Clubs represents Macau’s largest business of electronic gaming machines that are not casino based. And Melco has colossal plans. Its City of Dreams, which is located in the northeast part of the Cotai Strip, promises to be a truly unique experience and a “must-see” in Macau.

With casinos and resorts here surpassing all global benchmarks and grabbing the headlines, it won’t be surprising to see private investors and venture capitalists continuing to flock to Macau.