UPDATE 1-Macau gaming tycoon Ho undergoes brain surgery

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HONG KONG Aug 4 (Reuters) - Veteran Macau gaming tycoon Stanley Ho is in a satisfactory condition after undergoing brain surgery in Hong Kong, his office and media reports said on Tuesday.

Shares in his flagship gaming firm traded lower.

The 87-year-old was taken to a Hong Kong hospital last week after falling and hurting his head during a family gathering, the Apple Daily newspaper reported.

While the paper reported he'd undergone brain surgery to ease internal bleeding, Ho's office wouldn't give specifics.

"Dr. Ho was admitted to hospital and has undergone a surgical procedure," his office said in a brief statement. "He is in satisfactory condition and is progressing well in his recovery."

Sometimes known as the godfather of gambling, Ho, a patriarch of mixed European and Chinese parentage, heads an extended clan of 17 children born to his four wives.

Several of Ho's relatives visited him at the private Adventist Hospital on Hong Kong island, including two wives and one daughter who said her father was doing "quite well".

Shares in Ho's gaming flagship, Sociedade de Jogos de Macau (SJM) Holdings (0880.HK) were 5 percent lower in early trading, lagging other Macau-linked gaming sector stocks which have rebounded strongly of late. It closed 4.55 percent lower.

Analysts have said the succession of Ho's vast business holdings could be problematic given his extended family and simmering family feuds including a bitter court battle with his sister Winnie who delayed SJM's Hong Kong listing last year.

Ho was worth $8 billion last year, according to Forbes magazine, making him the world's 113th wealthiest individual, but his wealth took a big hit from the financial crisis and dwindled to just $1 billion this February according to Forbes.

Of his many children, some of the more prominent ones include daughter Josie Ho, who has forged a career as an Asian film star known for risque roles. Another daughter, Pansy Ho, runs part of Ho's gaming empire and Macau's MGM Grand.

His son Lawrence has also carved a name as a dealmaker, opening Macau's latest mega casino-resort, City of Dreams, on the Cotai strip under Melco Crown Entertainment (MPEL.O), a company he founded with Australian billionaire James Packer.

(Reporting by James Pomfret, Fion Li and Venus Wu; Editing by Jeremy Laurence)