Casino operators also eye Taiwan for gambling

Wednesday, June 13, 2001 | 10:36 a.m.

Mexico isn't the only international market considering resort casinos.

Officials in the island nation of Taiwan are exploring the possibility of legalizing gaming on the archipelago of Penghu, located in the straits between Taiwan and China. So far, officials from Las Vegas Sands Inc. and MGM MIRAGE have visited Taiwan to examine the opportunity.

Other possible candidates for a Taiwanese venture could be Park Place and Desert Inn owner Steve Wynn, said Jason Ader, gaming analyst with Bear Stearns.

"They really understand the Asian market," Ader said. "The Asian population within a 5-hour flight (of Taiwan) has the highest propensity and frequency of wagering of any demographic in the world."

In 1999 85,000 Taiwanese visited Las Vegas. But Taiwan is also notable because of its proximity to other key markets, such as Japan (478,000 visitors), South Korea (75,000), Hong Kong (38,000) and Singapore (18,000).

"I would think any of the operators at the high-end, which could also include Park Place, would have an interest in that market, because of the amount of high-end play from (Asia)," said Robin Farley, gaming analyst with UBS Warburg. "It's fairly early in the process in Taiwan, but it's the kind of market where it's important to establish a relationship, so if and when things go forward, one has a foot in the door already."

But exploring and acting are two different things.

"The notion of our interest in Taiwan is perhaps overstated," said MGM MIRAGE spokesman Alan Feldman. "It is true a couple of our executives did stop by on a fact-finding mission to understand what's being discussed by government officials, but that's all it was."

Venetian owner Sheldon Adelson acknowledged that his company is still interested in developing a casino property in Taiwan, but offered no additional specifics.

"We are looking at a number of different opportunities, both domestically and internationally," Adelson said.

He would not say what other potential deals are in the works or when he would give more details about them.

"We could make an announcement next month or it may be two years from now," he said.

Park Place spokeswoman Debbie Munch declined to comment directly on either Taiwan or Mexico, but noted that Park Place Chief Executive Tom Gallagher has previously stated the company would look at international opportunities. But Gallagher has said such opportunities must provide higher returns than American ventures, to make up for the additional costs and risks.