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SCMP Reporter

THE gambling business has been getting popular on equity markets worldwide and has thrown together some very strange partnerships.

  For instance, we can't remember ever reading that Cheng Yu-tung's New World Development was trying to build a casino in New Zealand with the National Maori Congress.

  It turns out New Zealand's Dominion newspaper has been writing about it for ages.

  The teaming up of big business and native people has been a big theme in the casino business in an attempt to get political support and exploit the greater freedoms they are allowed on their land.

  Donald Trump's Native American heritage is not something that's been apparent before.

  Actually, the New World-led consortium in New Zealand, known as Auckland Casino, has been having a tough time.

  The contract has been awarded to a consortium led by - surprise - Ron Brierley, although Auckland Casino is trying to get the decision overturned.

  Given the increasing resistance to Hong Kongers in New Zealand, the consortium always had something of a problem.

   Bandit index    BY coincidence, starting today the Chicago Board Options Exchange is trading options on an index of 15 US companies that own casinos or make casino equipment.

  You can get this index under the symbol GAX if you have a Bloomberg machine.

  If you've wanted to invest in stocks with dubious names, this index is the one for you. It includes Circus Circus Enterprises Inc, Jackpot Enterprises, and Mirage Resorts.

  Appropriately enough, Mirage isn't paying any dividends at the moment.

  In addition to teaming up with native people, casino groups in the US are all trying to build floating casinos, so they are issuing shares and loading up with debt.

  Given that the revenue from Macau's casino isn't really channelled through public companies, the only gambling play in Hong Kong is probably Watary International, recently acquired by Malaysian gaming group Magnum Corporation - although no big plans haveyet been revealed.

  The folks from debt rating agencies such as Moody's must love trips to casino operators, although they're perfect proof that a great name doesn't get you a great rating.

  Last week they gave the US$185 million of new debt issued by Lady Luck Gaming Finance Corporation a B1 rating, which is half-way to saying you're better off playing their tables than buying their bonds.

   High noon?   THE stormy annual general meeting at Trafalgar House last week was made more stormy by the timing - 3 pm instead of the more usual 11 am.

  One housewife-shareholder was complaining she couldn't pick the kids up from school, and she wasn't the only complainant.

  Another shareholder thought that Simon Keswick, the new boss, reckoned that the shareholders - griping about the GBP340 million write-offs and three rights issues - would be drowsy after lunch.

  The Trafalgar people were so sensitive to this claim they did a little survey to show 3 pm wasn't so uncommon after all.

   Bright sparks   A FINANCIER usually known as Spike had some problems with his newly-bought Peugot 205 GTI and has ended up running an international car parts trading operation.

  The garage wanted an amazing $5,700 to replace the starter motor, of which $800 was for labour and $4,900 for a new motor.

  A British expatriate, he remembered that in Britain starter motors usually go for GBP100 (about HK$1,143), and was also aware that his girlfriend Jackie was coming over.

  Solution: get Jackie to bring over a new starter motor in her luggage, which she obligingly did. She bought a new one for GBP120.

  Spike took it to the garage, which had the nerve to suddenly decide that labour was going to be $1,200. After he beat them back down to $800, they rang up and said the motor that had been brought over was faulty.

  As of Friday afternoon, Spike was asking the garage to create a working starter motor from the two non-working ones.

  Top marks for lateral thinking, Spike - but they'll get you in the end.

   Dreamer's car   DON'T forget that entries for the Lily Wong ''Win the 10th Mercedes'' competition must be faxed in or dictated to the answering machine by Wednesday evening.

  The winner will be the person who comes up with the zaniest, most unusual investment idea for the $800,000 Lily and Stuart made on the property market.

  Faxes sent with a cover sheet have a substantially reduced chance of winning, not that this will make any difference to coverholics.

  As announced in Saturday's Lai See, the prize is a magnificent Mercedes 380 SEL whose value is slightly less than the other nine because it's a Mattel Hot Wheels toy bought in Toys 'R' Us.



Just another smart gamble that didn't pay off