For Samuel Tsang, a casino is not just a place to try one's luck but is, more importantly, a business with massive potential to be exploited to the fullest.

"The gaming business is a big pie, not only for casino operators but also for tour promoters," says Tsang, executive chairman of Century Legend (Holdings).

The loss-making company, with major investments in gaming, acts as an intermediary for high-stakes gamblers in search of big-money games; and is pinning high hopes on Macao's recent liberalization of its gaming sector as the local government aims to turn the city into Asia's "Las Vegas".

Eager to revitalize the economy after years of recession and capture Asia's massive gaming potential, the Macao government decided to open up its gaming industry - long monopolized by local magnate Stanley Ho - in 2002, and awarded gaming licences to two international consortiums headed by big-name Las Vegas casino developers Steve Wynn and Sheldon Adelson.

The government aims to enhance the city's appeal to the masses by re-packaging it as a venue for family-style entertainment and international conventions via the opening-up of the gaming sector. The tourism and gaming industry that includes horse racing, sports betting and lotteries, generated more than a third of the city's GDP in 2003. The introduction of the Individual Visit Scheme which provides mainland visitors with visa-friendly entry to Macao, is another strong catalyst for growth in the gaming sector as Macao is the only city in the whole of China where gambling is legal.

The number of mainland visitors to Macao reached a record high of 5.74 million last year, and accounted for 49 per cent of the city's total tourist arrivals. Mainland clients already make up half of Century Legend's total customer base so far.

"Most of these mainland customers are fat-cats - business people - some of whom even own castles in foreign countries," Tsang says enthusiastically. He reveals that some bets from its mainland customers go as high as half-a-million Hong Kong dollars.

But Tsang says he doesn't know how the rich mainland people channel these huge amounts of money to Macao from the mainland where there are strict controls on foreign-exchange transactions. "We are not responsible for channelling money for the clients. We just introduce them to VIP rooms at casinos," he says.

Acting as a junket promoter, Century Legend introduces clients to VIP rooms that are designed for well-heeled gamblers to play in relative comfort and privacy. VIP rooms have always been a boon for casino operators and gaming middlemen; and are widely estimated to generate more than two-thirds of total casino revenue in Macao.

According to Tsang, the company works in collaboration with a casino on a profit-sharing basis. "The more the gamblers lose, the more money we make," Tsang says. To tap the market, Century Legend set up a wholly-owned subsidiary, Hong Kong Macao Junket Investments Ltd, last year to focus on providing gaming intermediary services in Macao. The subsidiary acquired a 5 per cent stake in both Diamond Hall Syndicate and Diamond Entertainment Hall Syndicate in late 2003 and further increased its interest in both to 15 per cent in February this year. Tsang says the company is now seeking a junket promoter's licence from the Macao government's Gaming Inspection and Co-ordination Bureau. Under recent legislation, junket promoters and their sales agents are being licensed and people working in VIP rooms will be checked and rejected if they have criminal records.

Tsang says that the company plans to enlarge its stake in the two syndicates, up to 50 per cent, if it is granted a licence, something it hopes to obtain by the end of the year. Hong Kong-listed Century Legend reported a net loss of HK$5.4 million (US$692,000) in 2003, but Tsang says he is confident that the company will turn profitable in the next few years, propelled by Macao's booming gaming industry.

(HK Edition 07/30/2004 page20)