Inside Asian Gaming

Asian Gaming 50 – 2011 37 (39) Gregory S. Gronau CEO Gaming Partners International 38 (-) Lloyd Nathan CEO Asian Coast Development (Canada) Ltd Gaming Partners International continues to solidify its presence as a discrete but vital pillar in the Asian gaming scene. It’s vital as the major manufacturer and supplier of casino currency in Asian casino jurisdictions. It has 90% of the casino chip market share in Macau and 100% of the Singapore market. If you have played a casino live table game in Macau or Singapore, it’s likely you have used a GPI product. GPI is alsodiscrete—in the sense of being separate or independent. It’s been able to balance the needs of working commercially in the interests of its shareholders while putting the operational and security needs of the regional casino industry and its players at the forefront of the enterprise. In addition to casino chips, GPI also manufactures and supplies plaques and jetons under the Paulson, Bourgogne- et-Grasset and Bud Jones brands. It also produces table layouts, playing cards, table accessories, gaming furniture and dice. The company is based in Las Vegas, with offices around the world, including in Macau. As the company’s chief executive officer, Gregory Gronau has overseen a number of recent expansion initiatives. In April 2011, GPI announced that it had acquired assets belonging to French plastic injection mold manufacturer OMC Sarl and its subsidiary OMC Industries. The acquisition is expected to help GPI improve its efficiency and capability in casino currency manufacturing and product service. Mr Gronau described the acquisition as “an important step” in the diversification of GPI’s internal product development and manufacturing capabilities. Last year, Mr Gronau oversaw an agreement to license radio frequency identification (RFID) tracking technology for casino currency. The deal with fellow US-based gaming equipment supplier International Game Technology gives GPI the ability to develop, manufacture and distribute high-frequency RFID products and systems worldwide. Mr Gronauhas signalled inGPI’s 2011 first quarter results that the company continues to value Asia as a range of vibrant and important markets for the gaming industry, with a number of new properties opening or scheduled to open in the next few years. For the first three months of this year, GPI recorded revenues of US$17.8 million and net income of US$1.7 million, mostly due to strong sales of casino chips to Macau. “We are pleased with our strong first quarter results, due to delivery of a significant chip order for the Galaxy Macau casino opening,” says Mr Gronau. Prior to assuming his role as CEO and President of GPI, Mr Gronau served as the company’s chief operating officer from October 2008 to September 2009. He has also worked in senior executive positions with gaming equipment companies Cadillac Jack in Georgia, Shuffle Master Inc. in Las Vegas andWMS Industries in Chicago. the MGM Grand Ho Tram is the only licensed integrated resort in Vietnam under construction. In addition to MGM, Mr Nathan is bringing another established gaming operator to theHoTramStrip. Earlier this year, Inside Asian Gaming reported that ACDL had sold a 26% equity interest in ACDL to Pinnacle Entertainment for US$95 million. Pinnacle, which has gaming operations in the US states of Louisiana, Missouri, Indiana and Nevada, will be involved in the development of the second of five resorts planned for the Ho Tram Strip. Mr Nathan began his career in the gaming industry in 1991, acting as outside counsel to MGM Grand, MGM Studios and Kirk Kerkorian. He is a former President of Global Gaming Development for MGM MIRAGE (now known as MGM Resorts International) and has a successful track record of building gaming businesses in Asia. After 12 years as a senior executive with MGM MIRAGE, Lloyd Nathanwas named last year as the newChief Executive of Asian Coast Development (Canada) Limited (ACDL), the owner and developer of the under-construction Ho Tram Strip in southern Vietnam. After just over a year in the job, Mr Nathan has firmly placed ACDL and the Ho Tram Strip under the global spotlight. He secured equity and debt financing of more than US$400 million for the first phase of the MGM Grand Ho Tram, the first of five large scale integrated gaming resorts on the site. He is also overseeing and driving the construction for phase one of the Ho Tram Strip, which is expected to complement Macau and Singapore as the next world-class, large- scale gaming destination in Asia. ACDL is backed by NewYork hedge fund Harbinger Capital, US regional gaming operator Pinnacle Entertainment and MGM Resorts International. The first phase of the MGM branded resort will open in 2013. It will feature a 13,600 square foot casino and 541 guest rooms. Phase two of the MGM Grand Ho Tram will add an additional 559 hotel rooms and villas with retail, dining and conference facilities. To date, INSIDE ASIAN GAMING | September 2011 50