Casino politics, organized crime and the post-colonial state in Macau

Journal of Contemporary China

Volumn 14, Issue 43, 2005, Pages 207-224

  Lo, Sonny Shiu Hing ^a  

^a UNIVERSITY OF WATERLOO   (Canada)

Author keywords

[No Author keywords available]

Indexed keywords

CORRUPTION; CRIME; GAMBLING; POST-COLONIALISM;

ASIA; CHINA; EASTERN HEMISPHERE; EURASIA; FAR EAST; MACAU; WORLD;

EID: 18544371796     PISSN: 10670564     EISSN: None     Source Type: Journal    
DOI: 10.1080/10670560500065454     Document Type: Review

References (157)

1. Lo Shiu Hing, Political Development in Macau (Hong Kong: The Chinese University Press, 1995), pp. 176-179.
2. There are a few studies on the role of the state in Macau. See, for example, Beatrice Leung, 'Church-state relations in Hong Kong and Macau: from colonial rule to Chinese rule', Citizenship Studies 5(2), (2001), pp. 203-219;
3. and Susan J. Henders, 'So what if it's not a gamble? Post-Westphalian politics in Macau', Pacific Affairs 74(3), (Fall 2001), pp. 342-360.
4. For an earlier study on the role of the capitalist class in Macau's politics, see Lo Shiu Hing, 'Colonial policy-makers, capitalist class and China: determinants of electoral reform in Hong Kong's and Macau's legislatures', Pacific Affairs 62(2), (Summer 1989), pp. 204-218.
5. For the role of the state in East Asian economic development, see Jeffrey Henderson and Richard P. Appelbaum, 'Situating the state in the East Asian development process', in Richard P. Appelbaum and Jeffrey Henderson, eds, States and Development in the Asian Pacific Rim (Newbury Park: Sage, 1992), pp, 18-23.
6. Also see Hilton L. Root, Small Countries, Big Lessons: Governance and the Rise of East Asia (Hong Kong: Oxford University Press, 1996).
7. By convention, a state has features such as a population, a government, territory and sovereignty. See Barry B. Hughes, Continuity and Change in World Politics: The Clash of Perspectives (New Jersey: Prentice-Hall, 1994), p. 64;
8. and Andrew Vincent, Theories of the State (Oxford: Basil Blackwell, 1987), pp. 19-21.
9. For Macau's recent historical development, see Kenneth Maxwell, 'Macao: the shadow land', World Policy Journal XVI(4), (Winter 1999/2000), pp. 73-95;
10. and Herbert Yee, Macau in Transition: From Colony to Autonomous Region (London: Palgrave, 1999).
11. Organized crime in the casino industry usually includes money laundering, loan sharking, prostitution and other triad activities. For a useful discussion of organized crime, see Patrick J. Ryan and George E. Rush, eds, Understanding Organized Crime in Global Perspective: A Reader (London: Sage, 1997).
12. For organized crime in Hong Kong, Macau and Guangdong province, see Lo Shiu Hing, 'Cross-border organized crime in Greater South China', Transnational Organized Crime, 5(2), (Summer 1999), pp. 176-194.
13. For liberalization of the gaming industry in Britain and the United States, see Richard C. Morais, 'The stakes get higher', Forbes 5(9), (29 April 2002), p. 25.
14. For legalized gaming in the United States, see Cathy H. C. Hsu, ed., Legalized Casino Gaming in the United States: The Economic and Social Impact (Binghamton, NY: Haworth Hospitality Press, 1999).
15. 'China made whole', Opinion, Baltimore Sun, (22 December 1999);
16. William Foreman, 'A hot hand-not handover-interests gamblers as Macau returns to China', Associated Press, (December 1999);
17. Clay Chandler, 'China regains Macau after 442 years', Washington Post , (20 December 1999), p. A01;
18. Patrick Graham, 'Tiny enclave has gone as low as it can go', National Post (Canada), (18 December 1999), p. A16;
19. Martin Regg Cohn, 'A new era for Macau: welcome to the mothetland', Toronto Star, (20 December 1999), p. A3.
20. Asiaweek 25(51), (24 December 1999);
21. Mark Landler, 'China's troops cross into Macau and cheered by residents', New York Times, (21 December 1999);
22. Miro Cernetig, 'The communist Sin City: China is about to rule Macau, land of gambling and gangsters', Globe and Mail, (18 December 1999).
23. The CNN described Macau as 'a seedy territory best known for gangland assassinations'. CNN, 'Macau residents hope Chinese troops will deter crime', (20 December 1999).
24. Anthony Spaeth, 'Macau's big gamble', Time Magazine 154(24), (20 December 1999).
25. Joe Havely, 'What now for Macau?', BBC News, (20 December 1999).
26. See 'The social and economic impact of liberalization of casino franchise', China Review no. 51, (March 2002), pp. 33-35.
27. Harald Bruning and Stella Lee, 'Las Vegas coming to Macau', South China Morning Post, (9 February 2002).
28. Harald Bruning, 'Casino hopefuls offer to invest $23 billion in Macau', South China Morning Post, (8 December 2001).
29. Angela Veng Mei Leong, 'The "Bete-Ficha" business and triads in Macau casinos', Queensland University of Technology Law and Justice Journal 2(1), (2002), p. 84.
30. Yizhoukan: Macau's Return to the Motherland (Next Magazine), Special Issue on Macau, no. 510, (16 December 1999), p. 28.
31. Father to 17 children, 81-year-old Stanley Ho is 'fond of women, tennis and ballroom dancing'. In the 1930s his father Ho Sai-kwong lost the family fortune by supporting Jardine's shares during the depression. Stanley Ho fled from Hong Kong to neutral Macau during World War Two. He went to Macau with ten dollars in his pocket but became a millionaire before the age of 20.See Victoria Button, 'Monopoly dead, long live the king', South China Morning Post, (9 February 2002).
32. Sing Tao Daily (Hong Kong), (20 December 1999), p. 6.
33. Also see Leng Xia, Aomen duchang fazhan [Macau Casino Development] (Hong Kong: Mingliu, June 1997), pp. 42-48.
34. According to Taiwan's Central Daily News, in 2001 Henry Fok and Stanley Ho were both ranked as the 452 billionaires in the world. See Central Daily News, (23 June 2001).
35. Sing Tao Daily, (20 December 1999), p. 5.
36. Liu Pingliang, 'The development and direction of the gambling industry', in Yu Zhen, ed., Aomen huigui qianhou de wenti he duice [The Problem and Policies of Macau Before and After the Transfer of Sovereignty] (Hong Kong: Mingliu, June 1999), p. 336;
37. and Liu Pingliang, 'Macau's gambling industry in fifty years', Asian Studies (Hong Kong Chu Hai College), no. 36, (18 December 2000), pp. 111- 138.
38. Also see Bertil Lintner, 'End of an empire', Far Eastern Economic Review, (24 December 1998), p. 23, which reported that the STDM denied the existence of such a 'subcontract' system.
39. Sing Tao Daily, (20 December 1999), p. 6.
40. Also see Lo Shiu Hing, 'Gambling and organized crime: towards the end of the Stanley Ho connection?', China Perspectives no. 26, (November/ December 1999), pp. 56-65.
41. If the balance of power can contribute to the maintenance of international order, it can arguably maintain law and order in Macau's casino industry. For the balance of power, see Hedley Bull, 'The balance of power and international order', in Michael Smith, Richard Little and Michael Shackleton, eds, Perspectives on World Politics (London: Croom Helm, 1987), pp. 94-103.
42. AFP, 'Macau looks to China to rid streets of gangsters', (15 December 1999).
43. In the 1980s, the Hong Kong government attempted to prosecute Sun Yee On's leader or dragonhead, but it was unsuccessful. Since then, Sun Yee On leaders have begun to invest in legitimate businesses in South China while at the same time establishing a power base in the Hong Kong film industry. Members of Sun Yee On remain active in the Hong Kong SAR although their influence in Wanchai and Tsimshatsui districts has been curbed by other triads. For triads in Hong Kong, see W. P. Morgan, Triad Societies in Hong Kong (Hong Kong: Government Press, 1989).
44. Also see Martin Booth, The Triads: The Chinese Criminal Fraternity (London: HarperCollins, 1990);
45. Martin Booth, The Dragon Syndicates: The Global Phenomenon of the Triads (London: Doubleday, 1999);
46. and Chu Yiu Kong, The Triads as Business (London: Routledge, 2000).
47. One leader of Macau's Soi Fong, nicknamed 'Soi Fong Lai', fled to Canada in 1997.The windows of his Canadian home were shot mysteriously. It remains a mystery why Soi Fong Lai was allowed to enter Canada at that time. Lai appeared to leave Canada quickly when his life was endangered in the summer of 1997.Some Macau gangsters set up Soi Fong in the 1930s, unlike the 14K that was founded by a Kuomintang Lieutenant-General, Kot Siu-wong, in Guangzhou in the late 1940s. Harald Bruning, 'Gangsters who have forgotten the rules', South China Morning Post, (12 December 1999).
48. Dongzhoukan (Eastweek) no. 328, (4 February 1999), pp. 26-34.
49. According to the anti-triad law passed by the Macau Legislative Assembly in July 1997, leadership of a triad is punishable by imprisonment from eight to 15 years. Bruning, 'Gangsters who have forgotten the rules'.
50. But the underworld accused the Macau police of planting the weapons on the streets to 'make themselves look good'. Niall Fraser, 'Broken Tooth suffers depths of depression', South China Morning Post, (20 December 1999).
51. Yizhoukan (Next Magazine) no. 510, (16 December 1999), pp. 71-72.The Thai Government adopted a vigilant attitude toward the possible influx of Macau triad members after the conviction of the Broken Tooth.
52. Bruning, 'Gangsters who have forgotten the rules'.
53. Harald Bruning's interview with Sampaio, 'Sino-Portuguese ties enter new phase', South China Morning Post, (20 December 1999).
54. Dongzhoukan no. 372, (9 December 1999), p. 7.
55. Ibid., pp. 8-9.
56. Shijie Ribao (North American Chinese daily), (15 December 1999), p. A17 and (18 December 1999), p. A16.The Zhuhai authorities arrested 3,000 people, including prostitutes and criminal elements, before Macau's handover.
57. Dagong Bao (Ta Kung Pao, Hong Kong), (19 December 1999), p. A5.
58. Cited in Mark Landler, 'Colonialism ending in Asia as China reclaims Macau', New York Times, (18 December 1999).
59. Ming Pao (Hong Kong), (20 December 1999), p. A10.
60. On 10 November 1999, when Beijing announced that the Macau Garrison was formed, China's CCTV interviewed the Garrison Chief who emphasized that the PLA would be 'ready to help the Macau SAR Government maintain social stability'. The CCTV's interview with the Garrison Chief was broadcast in Hong Kong on the night of 11 November 1999.Interestingly, the CCTV interview was far more detailed than the Hong Kong and Macau media's interview with the Macau Garrison Chief, whose response to questions from the Hong Kong reporters did not emphasize the PLA's readiness to maintain Macau's social stability.
61. CNN, 'Will China clean up Macau's crime problem?', (20 December 1999).
62. I b i d.
63. Channel NewsAsia (Singapore), 'Macau residents looking forward to China homecoming', (16 December 1999).
64. Cup Magazine no. 28, (21 November 2001), p. 27.
65. I b i d.
66. I b i d.
67. Hong Kong Standard, (20 December 1999).
68. Felix Chan, 'Fare war looming on ferries to Macau', South China Morning Post, (30 March 2002).
69. Gambling and tourism account for about 40% of Macau's GDP and provide about 60% of the government revenue. Jo Bowman, 'Las Vegas of Asia is the best approach', South China Morning Post, (20 December 1999).
70. Tessi Cruz, 'Casino monopoly to stay, for now', Hong Kong Standard , (20 December 1999).
71. Bruce Gilley with Dan Biers, 'Stanley Ho plays on', Far Eastern Economic Review, (9 December 1999).
72. Shijie Ribao, (14 December 1999), p. A17.
73. Gilley with Biers, 'Stanley Ho plays on'.
74. Jason Gagliardi and Harald Bruning's interview with Edmund Ho, 'Leader looks to future', Sunday Morning Post, (19 December 1999).
75. Also Hong Kong Standard, (20 December 1999).
76. He was cautious and slightly distanced himself from Stanley Ho in public, avoiding an image of having a stance on the casino franchise. Dongzhoukan no. 373, (16 December 1999), pp. 26-30.
77. Sing Tao Daily, (23 December 1999), p. 9.
78. Yizhoukan no. 376, (23 May 1999), pp. 40-44.
79. Sing Tao Daily, (20 December 1999), p. 5.
80. For Fok's background, see Andy Ho et al., eds, Who's Who in the HKSAR (Hong Kong: PA Professional Consultants, 2001), p. 119.
81. Gilley with Biers, 'Stanley Ho plays on'.
82. Interview with Stanley Ho, 'People don't have to be afraid anymore', Newsweek, (13 December 1999).
83. Sing Tao Daily, (20 December 1999), p. 5.
84. Harald Bruning, 'Casino license reserved for me, says Stanley Ho', South China Morning Post, (23 August 2001), p. H2.
85. I b i d.
86. I b i d.
87. Harald Bruning, 'Gambling tycoon feels the heat', South China Morning Post, (24 August 2001), p. H4.
88. Sing Tao Daily, (20 December 1999), p. 5.
89. I b i d.
90. Ho's casinos were managed by his wife, concubines and relatives. Yizhoukan no. 471, (19 March 1999), pp. 38-48.
91. In 1999, Ho opened a HK$233 million casino in Pyongyang, a location next to another casino managed by Hong Kong entertainment tycoon Albert Yeung Sau-shing. Yeung was once regarded as the 'largest foreign investor in North Korea' in 2000 and he opened a five-star hotel in the Rajin-Songbon free economic trade zone, which is 550 kilometers northeast of the capital Pyongyang. Wanda Szeto, 'Emperor's casino gamble', South China Morning Post, (4 September 2000).
92. 'Ho threatens to give up on Philippines', Hong Kong Standard, (25 January 2000), p. A3.
93. The Catholic Church warned the Philippine Government against granting Ho a license to operate a casino franchise, saying that it would contribute to a rise in crime. The former Philippine President Joseph Estrada expressed support for his police officials to check Ho's background, saying that 'there is nothing wrong with checking a man's background'. See 'Estrada backs probe on Stanley Ho deals', Hong Kong Standard, (27 January 2000), p. A12.
94. Later, the National Police Deputy Director-General Panfilo Larson said: 'There is nothing in our files or the files of other governments to connect him (Ho) to illegal activities'. See 'Casino tycoon cleared of any criminal links', Hong Kong Standard, (18 February 2000), p. A3.
95. Lacson said a widely circulated report about Ho was traced to a 'non-existing unit in Canada' and 'that makes it (the report) fraudulent' (p. A3).
96. In a press statement published as a paid advertisement by two Philippine newspapers, Ho announced the cancellation of his trip to Manila. The statement also said: 'As a well-known reputable businessman of substantial standing in the Asian and wider international communities, Dr Ho said he is well used to the spotlight and even occasional controversy surrounding his name. However, the recent campaign of unsubstantiated allegations made in relation to his investments in the Philippines has been so vilifying and bitter and cynical as to be completely unacceptable'. Ho also said: 'My investments remain most welcomed by the Macau Government as they are all over the world except, perhaps, the Philippines and from the viewpoint of the economy here, this is indeed a shame'. See 'Charges "so vilifying as to be totally unacceptable"', Hong Kong Standard, (31 January 2000), p. A4. The Philippine Foreign Ministry said in December 1999 that it had no information that Ho had been involved in any 'illegal' activity.
97. Jason Gagliardi, 'Developer gambles on enclave's future', South China Morning Post, (27 November 1999).
98. Sing Tao Daily, (20 December 1999), p. 6.
99. 'Macau park to upstage Disneyland', South China Morning Post, (25 May 2001);
100. and Harald Bruning, 'Casino wharf approved', South China Morning Post , (9 October 2000).
101. Ming Pao, (21 December 1999), p. A2.
102. Sing Tao Daily, (19 December 1999), p. 11.
103. Sing Tao Daily, (29 December 1999). The Judicial Police took measures to internally check the behavior of officers.
104. Sing Tao Daily, (20 December 1999).
105. AFP, 'Macau looks to China to rid streets of gangsters', (15 December 1999).
106. Cited in Landler, 'Colonialism ending in Asia as China reclaims Macao'.
107. The World Journal, (19 December 1999), p. A7;
108. Yizhoukan no. 510,(16 December 1999), p. 74.But prostitutes and loan-sharking activities returned to Casino Lisboa one week after the handover.
109. Antoine So and Adam Lee, 'Macau business back to normal', South China Morning Post, (29 December 1999).
110. Sing Tao Daily, (19 December 1999), p. 15.Another influential triad is Shing Yee, which has 'several hundred members'.
111. Sing Tao Daily, (21 December 1999), p. 1.
112. Harald Bruning, 'Macau homicides tumble since handover', South China Morning Post, (18 January 2001).
113. I b i d.
114. See Jason Gagliardi, 'Mean streets of Macau', South China Morning Post, (20 December 2000).
115. Harald Bruning, 'Bets laid on demise of enclave's gambling monopoly', South China Morning Post, (23 October 2000).
116. South China Morning Post, (14 July 2001). In 2000, the Macau Government hired an international consultancy firm Arthur Andersen to prepare a study on Macau's gaming industry. The study had three phases. The first phase reported on how the gaming industry worked in Australia, Britain and the United States. The report of the first phase was paid HK$600,000.Phases two and three looked at the operation of the Macau gaming industry and came up with suggestions on aspects such as legislation, management and taxation. The final report was completed in mid-2001.
117. See Harald Bruning, 'Macau hires firm to shake up gaming', South China Morning Post, (24 August 2000).
118. Harald Bruning, 'Top Macau casino bid offers $23.4 billion investment, South China Morning Post, (9 January 2002). These companies which were ousted included Art Concept International Gaming Resort Company Limited, Kao U Investment Limited, and CM Development Limited. The Art Concept International was majority-owned by Michael Mak and his wife Katie Chan. Mak is the son of Winnie Ho, the sister of Stanley Ho.
119. See 'Casino bidders ousted', Hong Kong iMail, (29 December 2001), p. A2.The other bidders included some of the world's best-known gaming operators, like MGM Mirage, Crown, Park Place, Sun and Aspinalls Club.
120. See Harald Bruning, 'Casino bidders may team up to win', South China Morning Post, (13 December 2001).
121. South China Morning Post, (9 February 2002).
122. Also see Oriental Daily, (27 May 2002), p. A25.
123. Also see Macau Government Information Bureau, 'Tender Committee for Gaming Concession tender announced the provisional results of the tender', (8 February 2002).
124. Bruning and Lee, 'Las Vegas coming to Macau'.
125. I b i d.
126. Harald Bruning, 'Solo reign officially over but Stanley Ho still king of Macau', South China Morning Post, (1 April 2002).
127. Macau Government Information Bureau, 'SAR Government signs concession contract with Macau Gaming Company', (28 March 2002).
128. 'Ho puts chips in', Hong Kong iMail, (29 March 2002), p. A3.
129. David Devoss, 'The two Las Vegas raiders', Asia Inc. 11(3), (April 2002), p. 17.
130. Also see Associated Press, 'Wynn promises Las Vegas touch for Macau', (24 June 2002).
131. Victoria Button, 'I'm in it for the fun, professes new Macau "homeboy"', South China Morning Post, (21 February 2002).
132. 'Venice casino vision to rise over Macau', Hong Kong iMail, (14 February 2002), p. A3.
133. Tyler Marshall, 'Developers bet on Macau as the next gambling capital', Los Angeles Times, (19 May 2002).
134. He said: 'For the past 37 years, the worst! You know well enough the security was so bad. I could not say so during the Portuguese administration. But let's be honest-horrible!' Keung Keung, 'Stanley Ho', Hong Kong Standard, (24 March 2000), p. A12.
135. For details, see Shirley Lau, 'Stanley Ho firm steps into fray as family rift deepens', South China Morning Post, (8 June 2001).
136. Michael Wong, 'King of Gamblers holds lion's share, say casino company', Hong Kong iMail, (8 April 2001), p. A6.
137. Another report said Fok had a 27% stake in the STDM. See William Mellor, 'Stanley Ho's secret weapon', Asia Inc. 11(3), (April 2002), p. 14.
138. Wong, 'King of Gamblers holds lion's share', p. A6.
139. 'Night for truce in casino feud', Hong Kong iMail, (15 February 2002). Fok also said he had not inspected the STDM's accounts for about 40 years and had not visited Macau for 20 years. He also mentioned that he received between HK$50 million and HK$200 million each year, but believed that his amount was less than Ho's allocation to himself. According to Fok, 'He [Mr. Ho], of course, got more. In fact, the distribution of the company's profits is unreasonable'.
140. See Joan Yip, 'Dynasty divided on profits and shares', Hong Kong iMail, (7 June 2001), p. A2.
141. In February 2002, Fok announced that he would sell his shares in the STDM and then use the proceeds to set up a charity foundation to help Macau develop its cultural and leisure activities. See 'Henry Fok to sell casino stake amid war of words', Hong Kong iMail, (26 February 2002), p. A1;
142. and Davide Dukcevich, 'Henry Fok wants a kinder, gentler Macau', wysiwyg://36//http://biz.yahoo.com/fo/020402/0402fok_1.html.
143. The Club spokesman said: 'The sauna is managed by our contractor... Its licensee and his staff are not Macau Jockey Club officials or staff. An internal investigation is being carried out. We will terminate the contract with them if the allegations are proved'. See Clifford Lo, 'Vice raid stuns Macau Jockey Club', South China Morning Post, (16 December 2000).
144. Antoine So, 'Stanley Ho urges calm in betting row', South China Morning Post, (11 January 2001). At the same time, DrHo.com-an internet casino managed by the STDM-tried to target the Hong Kong gamblers. But the Hong Kong Government was keen to amend the Gambling Ordinance in order to make it illegal for offshore bookmakers and gambling operations to take bets from Hong Kong people.
145. See 'Ho exploits legal loopholes on bets', Hong Kong iMail, (25 May 2001).
146. 'Pansy in line to rule Ho empire', Hong Kong iMail, (22 March 2002), p. A1.
147. Mellor, 'Stanley Ho's secret weapon', p. 16.Shun Tak Holdings boasts the world's largest jetfoil fleet. Pansy Ho graduated from Santa Clara University and her former boyfriend was Gilbert Yeung, the son of Albert Yeung (Stanley Ho's business rival). She previously had a strained relationship with Stanley Ho's fourth wife, Angela Leong On-kei. When the PRC President Jiang Zemin visited Macau in December 200 and asked 'women comrades' to join him in staging an impromptu sing-along, Stanley Ho encouraged his fourth wife to take the stage.
148. See Stella Lee, 'Singing leader's date with an angel', South China Morning Post, (22 December 2000). It must be noted that Stanley Ho had once threatened to disinherit Pansy Ho when she was rumored to have plans to get married to Gilbert Yeung.
149. See 'Pansy Ho joins STDM board', Hong Kong iMail, (22 March 2002), p. A4.
150. I b i d.
151. Stanley Ho asserted that the Macau Tower was proof of the STDM's continuing commitment to Macau's future. See Harald Bruning, 'Stanley Ho hails opening of tower', South China Morning Post, (20 December 2001).
152. Cathy Holcombe, 'Shun Tak wild card as Ho keeps on smiling', South China Morning Post, (11 February 2002).
153. 'Macau "set to face influx of dirty money"', Hong Kong iMail, (9 May 2002), p. A6.Also personal discussion with an Australian official, 2002.
154. 'Macau "set to face influx of dirty money"', p. A6.
155. Also see Associated Press, 'US official: Vegas casinos in Macau will bring law enforcement challenges', (8 May 2002).
156. Harald Bruning, 'Gambling graduates are the name of the game', South China Morning Post, (22 March 2002).
157. Comparatively speaking, the post-colonial state in the Hong Kong Special Administrative Region has witnessed a decline in its relative autonomy vis-à-vis the capitalist class. See Lo Shiu Hing, 'The Chief Executive and the business: a Marxist class perspective', in Lau Siu-kai, ed., The First Tung Chee-hwa Administration: The First Five Years of the Hong Kong Special Administrative Region (Hong Kong: The Chinese University Press, 2002), pp. 289-328.