It seems almost paradoxical that a massive casino resort owner the size of Caesars is to build resorts in mainland China where no gambling is allowed. Could it be that they know something we don’t know, or could it be that they are just hopeful for the future of gambling in this country? It is a well known fact that Chinese Mainland people save up all their money and go to Macau for a holiday to spend it on gambling.
How much of a strategic move can this be to erect twenty-five non-gaming resorts in China over the next five years, just for the sake of getting into the Asia-Pacific game? While we understand that getting a foot in the door, might be a strategic move to get the brand recognized; but if everyone is spending their money on gambling in Macau, what is going to be left for the Caesars brand? We suppose there must be some call for these hotels!
The only property Caesars Entertainment Corp owns in Macau is a golf course and this makes it the one major US gambling brand without a casino, in the casino Mecca. There were apparently plans afoot for them to develop a hotel and casino around the golf course. However, the Chinese Government simply stopped issuing licenses due to market saturation and Caesars was caught short. They are the one major US gambling brand which has not been able to fall back on the Asian market to balance hard times in the US. It is said that for every dollar spent in Las Vegas, four dollars is spent in Macau!
Ground has already been broken on the Caesars Palace Longmu Bay in Hainan. The intent is to set a standard for global luxury to build a foundation for their expansion into not only resorts but hotels, villas, residences, entertainment and retail properties. Are they getting out of the gambling business?
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