Senior Executives of The Venetian Macao
Chair: Emily Yeh (fangtzuyeh@uchicago.edu)
Crisis Directors: Ruth Chew (rchew@uchicago.edu) & Doug MacDonald (djmacdonald@uchicago.edu
Macau has often been called the Monte Carlo of the Orient. First authorized in the 1850s by the Portuguese colonial government, Macau remains the only place in China where gambling is legal. Valued at $13.8 Billion, the industry forms a crucial part of Macau’s economy.
The Venetian Macao, owned by the Las Vegas Sands (LVS), is arguably the grandest of the island’s many casinos. Having recently opened in August 2007, it is the largest casino in the world, operating over six hundred gambling tables in addition to a luxury hotel. The resort also hosts high-profile sporting events and concerts, including a dedicated Cirque du Soleil arena. In 2008, the Venetian Macao generated 44.6% of LVS’s total revenues, comfortably outstripping their flagship casino in Las Vegas. LVS envisions the Venetian as the mainstay of their development of the Cotai Strip, a Vegas-esque area under development just off the Macau peninsula.
But there’s always trouble in paradise. The Venetian Macao is merely one of twenty-eight casinos that jostle for space in Macau, and the recent economic woes mean that visitor numbers have flagged. LVS is also buried under a crushing mountain of debt, and with pressing projects in Singapore and Guangdong, help may not be forthcoming from higher up. There’s the Chinese government, which takes a keen and sometimes heavy-handed interest in the island’s public and private affairs. The local triads are also fiercely protective of their territory; firmly entrenched, they usually run protection rackets and act as loan sharks. Then there are the usual card-counters, hopeless addicts, and demanding patrons; have you ever tried calling the bouncers on a drunken billionaire?
As senior executives, you will manage the myriad affairs of the Venetian Macao. It will be up to you to guide the company with a firm hand, and to make the tough calls. Will you ally with fellow casinos, or fight it out to capture the most revenue? Hush it up, or bear the brunt? Negotiate for a compromise, or hold firm? Everything is a risk, and all eyes will be watching.
What happens in Vegas stays in Vegas; but Macau is a whole different card game.