End of an era
Stanley Ho, who was known as the “king of gambling,” has died peacefully in hospital at the age of 98. The former kerosene trader played a key role in helping Macau bypass Las Vegas to become the biggest gambling hub in the world.
One of Ho’s daughters, Pansy, spoke outside the Hong Kong Sanatorium and Hospital about her father’s legacy after he passed away at about 1pm local time on Tuesday. She said: “Our four families stand united in our grief and respect for his legendary accomplishments, everything he has done in life for Hong Kong, with Hong Kong, Macau and all his charitable donations.”
History of family feuds
There are four different branches of descendants of Ho, who had 17 children with four different women. A family feud began in 2011 over the 32% stake Ho held in the controlling company of SJM’s casinos. To eventually solve this dispute, Ho gave up most of his stake in the company, with Angela Leong being the biggest benefactor.
An alliance was formed in 2019 between various family members that now hold a controlling stake in the casino company. It is led by Ho’s eldest daughter Pansy.
not much reason for the SJM share price to increase following news of Ho’s death
While it appears that the various branches of the family are in agreement over the succession plan, some believe that further disputes could surface. Sanford C. Bernstein analysts believe there could be a lot more infighting in the future, and that there is not much reason for the SJM share price to increase following news of Ho’s death.
Turning Macau into a global leader
Ho was first awarded a monopoly gambling license in Macau back in 1961. His company, SJM Holdings, enjoyed huge success when China began opening up economically. SJM Holdings provided a casino outside of mainland China where people could visit to gamble legally.
SJM Holdings still controls 20 casinos in Macau and remains one of the most lucrative gaming companies in the world.
allegations that Ho’s casinos allowed organized crime groups to operate in their properties
As Macau began to expand, Ho began focusing on projects outside of the island, in the likes of Hong Kong, Portugal, and even North Korea. His monopoly license in Macau expired in 2001, with other casino companies successfully securing operating licenses. However, Ho’s fortune continued to grow despite this competition as the booming economy in China led to the popularity of Macau increasing even further.
Over the years, there were allegations that Ho’s casinos allowed organized crime groups to operate in their properties. In some cases, it was alleged that these groups controlled VIP gambling rooms. However, Ho always denied that there was any link between his casinos and organized crime.