Lawrence Ho from Melco Resorts Misses Forbes Hong Kong's Wealthy Ranking
In a remarkable turn of events, Melco Resorts founder, chairman, and CEO Lawrence Ho has been ousted from Forbes' list of the 50 wealthiest individuals in Hong Kong. This is the first time in a decade that Ho has not made the cut.
Forbes recently released its Hong Kong 50 Richest list, and Ho's fortune isn't substantial enough to secure a spot. With an estimated net worth of around $1 billion, Ho's financial standing did not qualify him for a spot among the top 50.
According to Forbes, Ho's net worth dropped by approximately $400 million in the past year, decreasing from $1.4 billion to $1 billion. Kenneth Lo, a fashion magnate, held the 50th position on the list with a fortune of $1.1 billion.
The significant decline in Ho's wealth is attributed to Melco, a Hong Kong-based company that operates casino resorts in Macau, the Philippines, and Cyprus. The company's most significant exposure is in Macau, where it owns and operates two integrated resort properties, City of Dreams and Studio City.
Melco's Setbacks
Melco's shares have dropped nearly 34% over the past year, affecting Ho's fortune. On Thursday, Melco's shares dropped 2% to close at $8.18.
The company is struggling to maintain business after junket groups, travel organizers that had brought VIP high rollers to Macau for over a decade, were forced out of the market by Beijing. Chinese President Xi Jinping instructed the Macau government to monitor the junkets more closely, resulting in the prosecution and conviction of former Suncity Group boss Alvin Chau. Junkets subsequently ceased operations in the gaming market.
To attract a broader demographic, Melco is attempting to make its Macau casinos more appealing. The firm recently added a massive indoor water park at Studio City to draw a family audience.
Last year, the six casino concessions in Macau earned $22.7 billion on their gaming floors. While this represents a 334% increase over 2022 casino wins, it constitutes just 63% of the earnings generated by Macau gaming operators in pre-pandemic 2019.
Ho's financial standing is closely tied to Melco. His father, the late Stanley Ho, was known as the "King of Gambling" and held a monopoly on casinos in Macau until the turn of the century. Once Portugal's rule over Macau ended, Ho's casinos were taken over by China.
Stanley Ho was married to several women and had at least 17 children. Formerly legal in Hong Kong, polygamy was practiced by Ho. One of his widows, Angela Leong, ranked No. 33 on the Hong Kong Richest list with a net worth of $2.4 billion. Leong inherited a substantial portion of her late husband's empire, including SJM Resorts, a Hong Kong-based casino operator.
Lawrence Ho's eldest half-sister, Pansy Ho, ranked No. 22 on the list with a $3.7 billion fortune. She inherited her father's Shun Tak Holdings real estate conglomerate and is also a major investor in MGM China, one of the six Macau casino giants.
The Cascading Wealth Effect
Alongside Pansy Ho and Angela Leong, Forbes' Hong Kong Richest list features Dr. Lui Che Woo, whose net worth is mostly derived from Galaxy Entertainment. Like Melco, Galaxy is headquartered in Hong Kong and is one of the six Macau casino licensees.
Lui's net worth has decreased from nearly $15 billion last year. Pansy Ho's fortune has diminished slightly from $3.8 billion, while Leong's wealth has dropped from $2.7 billion.
The declining fortunes of these casino tycoons coincide with the downturn of the benchmark Hang Seng index, Hong Kong's stock market. Over the past year, the index has plummeted by almost 18%.
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