Stanley Ho: War, love, and delivering the world's largest casino business.

“You can't take a successful marketing model from one place and apply it to another. And hope that the same can be achieved...(so) copying the model of Las Vegas or Atlantic City. to be used without considering the different characteristics of Macau. Therefore, it is not a strategy for success.”[1]

– Stanley Ho

            “One morning, Stanley Ho was reading a newspaper listing his name as number 13 on the world's richest people. According to the rankings of Forbes magazine (2011) and estimated his assets at 3,100 million US dollars. But as soon as he saw the number he became very angry,” Stanley lawyer Gordon Oldham told reporters. “The reason Mr. Ho was angry was because it was reported that he actually only had $600 million left.”

            In fact, just one day earlier Stanley had found out that He lost a great deal of his wealth by transferring shares to (some of) his children and two wives (he has four wives and 2 children total). The life story of the man who founded the world's largest casino empire. How is it? And what is there for us to learn? Please follow me.

1. The war of first love and the connection that was the beginning of the casino business.

            War brought Stanley Ho to Macau in 1941 when Japanese forces invaded Hong Kong during World War II. Stanley was in his third year studying chemistry at the University of Hong Kong when he fled the war and came to Macau.[2]with 10 Hong Kong dollars With the shattered dreams of his mother who wanted him to graduate with honors.

            It was in Macau that Stanley met his first wife, Clementina Letao. Clementina was the daughter of his Portuguese lawyer father and the only authorized attorney on the island. Macao and Chinese mother Macau Clementina's beauty impressed young Stanley greatly. And to impress Clementina Stanley signed up for evening Portuguese lessons. Along with cycling to Clementina's house every day. To take her out for tea

            But Stanley at that time was not a rich young man ready to pay for the woman he loved. He was just a handsome half-breed boy who had immigrated from Hong Kong to escape the war. Worked as a clerk in a Japanese company doing import-export business. But what Stanley possessed was a keen sense of trade and business. His first profits came from smuggling goods between China and Macau when he was just 24 years old.

In fact, Stanley wasn't even born poor. He was born and raised in a house on MacDonnell Road in Hong Kong's affluent area, the grandson of Robert Hotung, one of Hong Kong's first billionaires, but his father's business problems and bankruptcy during the Great Depression left the family impoverished. And their appearance is western because they are descended from Dutch (Jewish), English, and Chinese ancestors.

            In 1942, young businessman Stanley Ho won the heart of Clementina Letao, a young woman the media dubbed “the most beautiful woman in Macau.” a way for Stanley to access Macau's network of authority connections

            Their love is witnessed by four witnesses: Jane, Robert, Angela and Deborah. Stanley's family grows together. with a business that is gradually Stepping out of the shadows In 4, Stanley joined with three friends, Teddy Yip Tak-lei (brother-in-law), Henry Fok Ying-tung (fellow Hong Kong billionaire) and Yip Hon (gambler), to establish Sociedade de Turismo e. Diversões de Macau, SARL or STDM bid for a concession to operate a gambling and lottery business on the island of Macau.

This concession gave Stanley and his partners a monopoly on the casino business for 40 years.[3] Create wealth for him and his family Including building the largest casino business empire in the world, surpassing Las Vegas and Atlantic City in the United States.[4]

            Stanley's love for Clementina includes expressions of respect for his wife. This is reflected both in the naming of buildings and various events. by her name Including Trivia at Stanley Do it to make Clementina happy. There is a story in the society that Stanley would often pay people to stop by Clementina's house to play Mahjong and then pretend to lose to make Clementina happy.

2. Love for the 2nd time, 3rd time, 4th time, and the number of witnesses of love that is more than a football team.

            Love is not wrong It was also not illegal for a man to have more than one wife under Macau law before 1971. Stanley's second wife was Lucina Lam (m. 2). Lucina was the daughter of a Chinese soldier who fought in the Macau. War with Japan Stanley and Lucina had five children: Pansy, Daisy, Maisy, Josie, and Lawrence.

            It must be considered that the children of this "2nd house" have fully inherited the businessman's genes from their father. Almost everyone has a role in the family business, including Pansy, the eldest daughter of House No. 2, who is currently taking over her father's role as president of Shun Tak Holdings, a real estate developer. and to manage ferries between Hong Kong and Macau He is also the founder of MGM China Holdings, a casino and hotel operator in Macau. In 2019, Pansy formed a partnership with several other shareholders of SJM, resulting in Pansy[5] She has control over SJM Holdings, the parent company of the family's 20 casino businesses. Two of her sisters, Daisy and Maisy, also hold senior positions at SJM Holdings, while younger brother Lawrence has gone into business. Another casino under the name Melco Resorts & Entertainment Limited.[6] With Josie, who calls herself a "little black sheep," entering the entertainment industry. By being an actor and singer

            His third love affair with Ina Chan was the result of an accident with his first wife Clementina. Clementina was in a serious car accident in Portugal in 3, which left her with partial memory loss.[7] His third wife, Ina Chan, was one of the nurses who came to care for Clementina at the time. Stanley and Yna's relationship began to take shape when Stanley bought Yna a two-unit condominium in Repulse Bay in the 3s. The two had three children together, Florinda, Laurinda and Orlando. Major shareholder of STDM, the company that was the first seed of the Ho family's casino empire. through becoming a major shareholder of Lanceford[8]

            Stanley's last love was with Angela Liang, a young woman who was a treasury officer at the Lisbon casino. One of his casinos and a part-time dance teacher The two first met at a private dance held at Casino Lisbau. And continued their relationship until they got married in 1988. Angela did not fall into the rice bin. She has an interest in business and is a real estate investor.

            Angela told Forbes in an interview: She already had three condominiums in both Macau and Hong Kong when she met him. Stanley and Angela have four children together: Sabrina, Arnaldo, Mario and Alice. Angela is currently the second largest shareholder of SJM Holdings and serves as Co-CEO of SJM Holdings and There is also a seat in the Macau Legislative Assembly.

Ho family in the 1st-2nd generation in 2020 

Source: Wikipedia.org on 25 June 2563 by Family Business Asia

3. Plans that don't go as planned: An heir who passed away before his time. and Stanley's accident

            Robert, Stanley's eldest son and his first wife, Clementina. is the heir who is positioned to be the next successor to the family business. But a car accident in 1981 took his life. Stanley's entire business delivery plan was inevitably affected. The second major turning point came in 2 when Stanley had a fall in his home and required brain surgery. This left him in the hospital for seven months. Stanley was released from the hospital on March 2009, 7. After that we saw images of Stanley in a wheelchair all the time.

            What happened after that is The continuing role of the children of the 2nd house, namely Pansy, Daisy, and Maisy, all play important roles in managing the family business. And although there are some who go out to create their own businesses, such as Lawrence, the youngest son of the second house, or even Pansy himself, who goes out to establish a casino business with America's MGM Group (MGM China Holdings), it must be considered a house that 2 of the Ho family have become the pillars that will carry the burden of leading the family business forward.

            Meanwhile, his fourth wife, Angela, who is now the second largest shareholder of SJM Holdings, also takes part in managing SJM's operations. But Pansy was able to form an alliance with Other shareholders of SJM have resulted in Pansy and “House 4” having more power than the other houses. in controlling the business of SJM which is like the heart of the family business. However, no matter how sick Stanley remained at the top of the organization until 2.

4. Stocks and justice (I don't know what to measure from)

            After that morning in 2011 at Stanley it was discovered that shares had been transferred to some of his children and wives. He decides to sue his own family members for defrauding his company partners. What happened is that in December 2010 there was a capital increase in another Stanley holding company, Lanceford. and distributed the additional shares to Ina (his 3rd wife) and Lucina's (5nd wife)'s five children without Stanley's knowledge.

The additional shares were distributed through two companies registered in the BVI: Action Winner Holdings Ltd., of which Ina (his third wife), is the majority shareholder, and Ranillo Investments, which is owned by Lucina's five children. Person 2) is an equal shareholder.

            Stanley had his legal counsel write a letter to his second daughter, Daisy, dated January 2, 5, saying that what they had done was arbitrary and did not have her father's approval. Stanley later scheduled a press conference for a press conference on January 2011th, but Lucina (his second wife) and their five children came to visit Stanley, cutting off the press conference. causing the press conference to be postponed

Daisy and Lucina (his second wife) then presented Stanley with a signed letter confirming that the transfer was with Stanley's knowledge and consent. Lam (Lucina) and Mrs. Chan (Yena)” was the message in the letter… but it didn't make it easy to end the story.

Shareholding structure of Ho family members from 2011-2020

Source: Family Business Asia

            “I lost control of the business empire I built over five decades. It was pure theft,” reads part of the video Stanley recorded and gave to his personal legal counsel. In a statement issued by Gordon Oldham, Stanley's legal counsel stated that Stanley's early intentions It is the division of assets among everyone. his family equally

What Lanceford's directors did (which was voting to distribute additional shares to Ina and Lucina's children) completely destroyed Stanley's intentions... Stanley decided to sign a lawsuit against his children, including: Pansy, Daisy, Maisy, Josie and Lawrence, including two wives, Mrs. Lucina Lam (2nd wife) and Mrs. Ina Chan (2rd wife), as well as Patrick Huan Wing Ming's assistant. Stanley filed a complaint with the Hong Kong High Court. and the court accepted the lawsuit

            Then the conclusion came to a twist on January 26, 2011, when Stanley came out in a wheelchair to give an interview on television saying, He has dropped all charges. “...went through many stories Now I'm very happy. I love my family and did not think of suing each other at all The situation is now resolved.”

            Stanley spent the final decade of his life dividing his fortune between his three wives and 3 living children. His efforts to make it happen “Justice” for the four houses seems to be far from being achieved. This is reflected in an interview with Angela, one of Stanley's two surviving daughters and his first wife, Clementina, who stood by his side from the day he started the casino business nearly six decades ago. Dad loves Mom (Clementina) from the first day until the last…Mother's connections both in Portugal And in Macau society, it was the key factor that allowed Dad to monopolize the casino business…I just can't believe that Dad wouldn't leave anything for us.”

5. The Final Chapter of “The Gambling King” and Stanley's Life Lessons

            Despite being the creator of the largest casino empire in the world But Stanley doesn't like gambling. “I don't gamble at all. I don't have the patience…” Stanley told The Associated Press in 2001 that he preferred to spend his time dancing, which he loved. This is perhaps the most important lesson Stanley wanted to leave for future generations. Because even though casinos were Stanley's main business throughout his life, But he never used gambling as a “shortcut” to success.

            Stanley also said in an interview that He feels guilty when mentioning his wealth: “So I donated a lot of money to charity. to achieve balance To return profits to society…” Stanley concluded. “My father was the king of friendship,” said one of his daughters, Pansy. “His (Stanley's) father's sincerity and generosity earned him many good and loyal friends. These friends are always ready to help if he needs it.”

Stanley's poor health in later life forced him to spend time in a hospital. Stanley passed away on May 26, 2020 at the age of 98, leaving behind only the legend of a man who fled war. Until he found good love and created a gambling business, he never thought he would finish playing music, along with the final step of one of Asia's greatest businessmen named... Stanley Ho.

Stanley Ho (Stanley Ho Hung-sun)

Stanley Ho was a Hong Kong-Macau billionaire born on November 25, 1921. His father's maiden name was Bosman and was changed to the surname 何 or "Ho". Stanley is the founder and chairman of SJM Holdings, which owns Many casino operations in Macau, including The Grand Lisboa, are often referred to as the King of Gambling by the general public. Stanley made his fortune from the casino business on Macau, where he and his partners had a franchise since 1962 and enjoyed a monopoly for four decades.

In addition to the casino business Stanley also invests in other businesses. both in Macau and Hong Kong, such as tourism businesses Entertainment business air freight real estate, banking, etc. Stanley's businesses are estimated to employ a quarter of the total workforce on Macau. He also has investments in other countries such as mainland China, Portugal, North Korea, Vietnam, the Philippines, Mozambique, Indonesia, and East Timor, among others.

SJM Holdings Limited is the flagship company of Stanley's business group. It is a holding company that invests in the casino business. It owns 20 casinos.[9] It generated over HK$33,000 billion in revenue in 2019, employed more than 20,000 people, and paid 70% of Macau's total taxes. Stanley Ho passed away in 2020 at the age of 98.

References

• MGR Online, “The battle for treasure of Stanley Ho, the casino tycoon of Macau,” published: 28 Jan. 2554
• marketscreener.com, “SJM Holdings Limited, on June 25, 2563
• LiewJiaTeng, 'How Stanley Ho changed my business mindset forever,'The Edge Malaysia Weekly, June 10, 2020
• Raquel Carvalho, “Stanley Ho: how the Macau casino tycoon's love life shaped his success,” from www.scmp.com on May 30, 2563
• Raquel Carvalho, “Stanley Ho: how the Macau casino tycoon's love life shaped his success,” from www.scmp.com on May 30, 2563
• SJM Holdings Limited, “2019 Annual Report”
• Tara Sobti, “The Greatest Showman: The Life and Times Of Stanley Ho,” Tatler Hong Kong, 5 June 2020.
• Wikipedia.org, “Stanley Ho” on June 25, 2563
• Bangkok Business, "Dissecting the 'Macau Casino' Empire, the Hundred Billion Inheritance of 'Stanley Ho'," from bangkokbiznews.com on June 25, 2563

[1] “The success of one market model cannot be migrated to another. Ignoring Macau's special characteristics and duplicating a Las Vegas or an Atlantic City would not be a successful strategy.”

[2]At that time it was a Portuguese colony that remained neutral in World War II.

[3]The Macau government has increased the number of gambling business licenses available to foreign investors. (Casinos and other gambling) in 2002 marked the end of the monopoly on the gambling business on the island of Macau.

[4]Stanley's casino business has boomed since the opening of China's economy, creating a new source of wealth in the land where gambling is a passion. But because gambling is still illegal in China. As a result, many Chinese people often venture abroad to gamble.

[5] Pansy was once ranked as the richest woman in Hong Kong. Its current net worth is approximately $3,700 billion (2020).

[6]Melco Resorts is listed on Nasdaq through Melco International Development, a Hong Kong-listed company. It is estimated that Lawrence's net worth is approximately $2,000 billion (2020).

[7]Clementina died in 2004.

[8]Lanceford is STDM's major shareholder and STDM holds 54% of SJM Holdings. SJM Holdings is a holding company listed on the Hong Kong Stock Exchange with 32.9% of free-float shares, with STDM (54.0%) and Angel. La Liang (4th wife) (8.1%) is the major shareholder.

[9]Information as of 31 Dec. 2562