MACAU - HARRAH'S Entertainment Inc, the world's largest casino operator, is eyeing expansion opportunities in Taiwan and Japan, as it bets on the fast-growing and affluent Asia market.

Harrah's, which was taken private in a 2008 leveraged buyout, has been absent to date from the Asian casino market, where US rivals Las Vegas Sands, MGM Mirage Inc and Wynn Resorts Ltd. are investing billions of dollars and reaping rich returns.

MACAU INTEREST DESPITE a lack of casinos in Macau, which has overtaken the Las Vegas Strip as the world's biggest gambling resort in terms of revenue, Harrah's was interested in the Chinese enclave over the long term, Mr Chen said. In 2002, Harrah's decided not to bid for a gaming license in the former Portuguese colony when the government opened up the market to foreign casino operators, because it believed the regulators in the 14 jurisdictions where it operated would not permit it to run casinos in Macau, Mr Chen said. ... more

But the casino operator was aiming to garner a 'significant portion' of its revenue from Asia within the next 10-15 years, depending on government liberalisation of local gaming laws, Mr Michael Chen, Harrah's president for Asia, said on Tuesday.

'Asia remains highly underpenetrated as a market for gaming. There is enormous upside,' Mr Chen told Reuters on the sidelines of a gaming show in Macau.

Asia had roughly 100 casinos, far less than the United States, which had more than 800, he added.

Taiwan's huge and wealthy population, as well as gamblers from Japan and China, would largely drive growth for Taiwan's casinos if and when they were built, Mr Chen said.

After years of talk, Taiwan's legislature voted to legalise gambling in January, but limited the move to several offshore islands where it is seeking to boost tourism and speed up economic development.

Progress has been slower in Japan on changing legislation to allow casinos, partly due to the public's fears that the move could lead to social problems.

'In our industry, liberalisation is measured in decades, so it's highly unpredictable,' Mr Chen said, when pressed on a timeframe for Harrah's expansion in Asia.

But any near-term expansion for the casino operator is likely to be difficult. Like its rivals, including Sands and MGM, Harrah's has struggled to meet debt costs amid a credit crunch and the global economic downturn. -- REUTERS