It’s a double feature you won’t find at your neighborhood cineplex. The movies are entertaining, quasi-biographical depictions of two of Macau’s most famous men.

One, called “Casino Tycoon,” is loosely based on the life of gambling magnate and billionaire businessman Dr. Stanley Ho. It came out in 1992, followed shortly thereafter by a forgettable sequel.

The other, “Casino,” released in Hong Kong in 2002, is about a totally different kind of Macau “business” man — Wan Kuok-koi, purported head of the 14k triad. He made his money, among other means, controlling VIP rooms in at least one major Ho casino. His business card said he had an office at Shun Tak Center, one of the numerous real estate holdings of the Ho family dynasty.

The alleged relationship between Wan Kuok-koi and Stanley Ho lies at the crux of numerous accounts of corruption in Macau’s gaming industry.

14 KARATS OF TROUBLE

Triads, unlike American organized-crime syndicates, operate loosely. Members switch sides when it’s advantageous. Triads can be as small as a few dozen members or as large as 30,000. Wan Kuok-koi’s group is much like the latter. It controls money laundering and loan sharking in Macau, and in parts of Europe and the U.S.

According to a State Department Asian-crime brief, written in 1999 by FBI expert Ning-Ning Mahlmann: “Most members of Chinese criminal enterprises immigrated to the West from Hong Kong, Macau, Taiwan, People’s Republic of China and other countries in Asia … Some of them have also consciously built political influence by associating themselves with high-ranking public officials and politicians. It is these kinds of personal and business relationships (guanxi) that form their national and international network systems.”

At the top of Agent Mahlmann’s list of triads is 14k. The group operates domestically in Los Angeles, San Francisco and Vancouver. Some older reports about Asian triads also mention Las Vegas’ small Chinatown. One veteran member of Metro’s Las Vegas gang unit said, however, that most Asian gang members went underground here four years ago and have “literally disappeared from the streets.” Similar stories about 14k members lying low in the U.S. abound. Time Magazine’s John Colmey interviewed “Broken Tooth” — as Wan Kuok-koi is known on the streets — in 1998 for a story titled “Tales from the Dragonhead.” In it, Wan Kuok-koi brags about his image, his sense of humor and his upcoming movie.

Martin Booth, author of a book about Chinese gangs, opines to Colmey about what would happen if the 14k boss took over the casino concessions from Ho, who held sole control from

1962 to 2002. “If he survives to take over the casino concessions, Broken Tooth Koi will be one of the most powerful triad leaders in the world.”

That article alone very nearly sealed the gangster’s fate. Wan Kuok-koi was prosecuted just before the handover of Macau to China. His own words to reporters were used against him in court, where he claimed to be merely a high-stakes gambler and chip trader. Portuguese authorities convicted the gangster of criminal associations, money laundering and loan sharking.

“Broken Tooth” Koi was sentenced to 15 years in a Coloane (Macau) prison. After the trial, approximately 1,000 Chinese soldiers took up a garrison in nearby Zhuhai, During the ensuing handover, 14k and other triads went underground, mostly for fear of being extradited to mainland China and executed — as did happen to some gang members.

CORRUPTION ON THE WANE

Since Wan Kuok-koi’s arrest and conviction, Macau has steadily worked to clean up its image. A government body, the Commission Against Corruption of Macau, was formed to put teeth into efforts to clamp down on gangs inside casinos. Examples of public corruption have by no means been eliminated, however.

Carlos Lobo, a legal advisor for Macau’s gaming commission told a group of attendees at last November’s Global Gaming Expo that new anti-money laundering measures and an anti-terrorism law were passed.

“It’s a huge step. It’s our hope that we have things under control soon,” he said. “We have had problems. We don’t try to hide it.”

According to a CCAC newsletter published last May, Macau ranked fourth among Asian countries with the lowest levels of public corruption. Only Singapore, Hong Kong and Japan bettered Macau’s record. The newsletter also lists some highlights from early 2006: 10 customs officers arrested at Macau International Airport; an inspector from Macau Economic Services soliciting factory owners for bribes; a woman attempting to bribe casino staff after being caught stealing chips from gamblers. Other instances included a much-ballyhooed corruption case involving Macau’s secretary of transport and public works.

THE YANKS ARE COMING

Meanwhile, the 11-square-mile patch of islands is experiencing a huge boom in resort construction, with more American operators on the way, joining Wynn Resorts and Sands.

Nevada’s gaming regulations don’t prevent casino operators from building venues in foreign jurisdictions. But the law does require operators to avoid any appearance of impropriety or involvement with characters unbecoming to the industry’s hard-won reputation for transparency.

This is the “corruption” angle that has many wondering if Las Vegas casino operator MGM Mirage should be doing business with Stanley Ho’s heiress apparent, Pansy Ho, managing director of Shun Tak Holdings. Or if Melco Chairman Lawrence Ho, her brother, will hurt Australian casino operator PBL’s chances of owning a piece of Nevada’s most expensive real estate someday. Or, if the argument can really be made that son and daughter act independently of their 86-year-old father, at least as far as casino gambling goes.

MGM Mirage recently hired new members for an independent compliance committee, hoping to assuage any fears that might substantiated by findings of a two-year Nevada Gaming Control Board investigation. Revelation of the latter is reportedly set for public hearing on Feb. 27.

Background investigations in New Jersey and Singapore are complete, their findings still sealed. MGM Mirage did not win its bid to operate a Singapore casino. Neither did the consortium involving Melco and PBL, which quietly withdrew offers on first the Marina Bay project, then on the Sentosa Island development. The PBL/Melco later piggybacked onto the Sentosa Island bid of Las Vegas developer Mark Advent. Their joint venture was rebuffed.

Republished by Blog Post Promoter

• Illegal World Cup Betting Slams Macau Casino Stocks World Cup fever has taken a toll on businesses from Macau to London. According to Macau's Gaming Inspection and Coordination Bureau, the soccer games in South Africa have had the...
• SJM Leads Macau Casino Stocks Higher on Plan to Limit Expansion SJM Holdings Ltd., the Macau casino operator controlled by billionaire Stanley Ho, led Hong Kong- listed gambling companies higher as analysts said they would benefit from a plan to limit...
• Macau Casinos Will Benefit From Handling More Incoming Flights Macau casinos could benefit from new regulations allowing direct flights between mainland China and Taiwan, Jefferies Research analysts said. The gambling enclave has long served as a stopover between the...

• Lowdown on Asia's Casinos From Macau to Singapore to Cambodia, the experts at Union Gaming Group travel the world to learn about the latest trends, study new markets and meet major players in the...
• US Ski Team Member Profile of David Babic David Babic in a current member of the US Ski Team that is quickly rising in popularity. He was born in Berlin, VT and currently resides in Washington, VT. He...
• Vietnam Eyes Macau Style Casinos Foreign investors are vying to build Macau-style luxury gambling and hotel complexes in a beachside resort area close to Vietnam's buzzing southern commercial hub of Ho Chi Minh City. US-based...