A few days ago, billionaire Lawence Ho said he would be selling his shares in the Tigre de Cristal Casino, which is in Russia. This came as a shock to many. As a result, a Taiwanese shipping firm is attempting to scoop up those shares.
It was reported that Taipei’s First Steamship Co. Ltd. purchased 189 shares, meaning its stake in the resort was 12.69 percent.
The casino has some strategic importance. It sits on the borders of Russia, China, and North Korea. As a result, it sees visitors from different regions and countries.
However, with the recent change in ownership, the casino has seen a drastic decline in the number of people visiting it, as well as a noticeable decline in its revenue.
Ho, a Hong Kong business mogul, has been selling a lot of his property since September. It appears this is the smart thing to do after he heard about how poorly the mega-casino is doing.
The long-term investment in this company is questionable. The casino is not as successful as it once was. The shipping firm may very well be the best option for taking over its shares.
When it filed with the Taiwan Stock Exchange, First Steamship said this was a “long-term investment.”
In addition to a loss of revenue and a decline of visitors, the Kremlin is considering making casino operators pay a tenfold increase in taxes over the next few years. So, one must question what the long-term effects of this investment will be.
Ho may have very well predicted this would be a great opportunity take a challenging situation, flip it, and transform it into a beneficial one.
The Russian casino is not looking like it will last too long. And, with the ever-changing government policy that is involved, it would appear the casino won’t continue.
What is Putin doing?
It’s not all too evident what the Russian government is doing with the casinos and why it has started to increase the taxes and fees. But, Ho believes he has made a good investment by selling his shares and getting out.
He has switched his focus and attention to newer areas and is currently looking at projects in Japan.
Right now, Japan is also looking to open casinos. This is a very bold venture for a country where not only has gambling been illegal for decades but it has also been banned by the country.
The opening of Melcro Resort and Entertainment is something into which Ho would like to invest. It could be a great investment on his part.
Japan made this announcement earlier this year. The Japanese government has received requests from many casino operators from around the world that would like to invest in this new area.
Ho looks to be an outstanding investor and has an excellent eye for the future.
Hopefully, his attempt to invest in Japan will pay off. Only time will tell.
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