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Business

Adelson's optimistic $3 billion bet on Macau

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Opening sequence

Business

Adelson's optimistic $3 billion bet on Macau

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COMING UP:Adelson's optimistic $3 billion bet on Macau

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Transcript

00:00:00
>> A pint sized Paris in the heart of China's gambling mecca. But will all this glitz and glamour save Macau, American Casino Mogul Sheldon Adelson presiding over the Parisians opening night. His Las Vegas Sands group betting $3 billion on its fifth Macau Resort. It may seem like overkill after heavy declines in the cities gambling industry, but as Farah Master reports, that bad luck may be turning around.
00:00:27
>> Revenues rose for the first time last month. This is a big deal because they've been falling for over two years now. Industry executives are hoping that these two new resorts are really gonna help drive things forward. Though most analysts are very confident on the long-term prospects for Macao, this is the only place in China where gambling is legal.
00:00:45
And at the moment there is a very small population from China who visited Macau.>> The Parisian is built for holiday makers than hardcore gamblers after Beijing's anti-corruption drive scared away VIP's, putting a big dent in casino earnings. Now the city wants to make up the shortfall by rebranding as a family friendly spot.
00:01:04
>> The Macau economy is very reliant on casinos, more than 80% of the government revenues come from the casino industry. They've really been urging the casinos to try and diversify into non-gaming, so retail and more leisure entertainment. And Sans Parisian is really trying to do this with features like the Eiffel Tower and shows and conventions.
00:01:25
>> But steering away from gambling could be risky, with the family vibe much less of a tried and tested business model. Gambling revenues may be down but they still bring in around $2 billion a month. That's a third of what Las Vegas casinos make in a year.