Inside Asian Gaming

Who’s adapted? When Sands Macau opened its doors in May 2004, many claimed that SJM’s casinos would have to improve their offerings or lose out to the glitzy Americans. While Vegas has indeed forced Macau to up its game, the enclave has also made Vegas adapt, with So claiming,“I think they learned more from us than we did from them.” When Sands opened its doors to the public, the things that most set it apart were its windows, providing gamblers a visual connection with the outside world. Chinese, reputed to be the most hard-core gambling ethnic group, are known to lose all sense of time as they gamble for days with no sleep, gulping down bottles of thick black chicken essence to fortify themselves. None of Macau’s other casinos have windows. Sands’ spin-doctors (the same who, no doubt, spread that now forgotten chandelier boast) claimed the exclusion of natural light is a means to make gamblers dizzy,and keep themgambling away oblivious to their surroundings. They said Sands heralded a new era of open and fair gambling in Macau.Well, the spin-doctors offered no explanation of why the windows have now been covered with semi-opaque drapes. When Sands opened, it consciously sought to tap the neglected mass market - knowing three quarters of Stanley Ho’s revenue is derived from high-rollers the American concessionaires would like to lobby as much as possible to narrow the gap so they would have a level playing field here.” He adds,“They are subjected to their home regulations, while they are also complying with regulations here. At the present moment we have an advantage because we are only subject to one set of regulations.” Still, So asserts that STDM’s goal is not to trounce the competition, but rather, to secure its niche in the market.“We would like to complement each other, we are not afraid of challenges.We are not afraid of competition.We have our own market that we can excel in, and we have our own network. I think each operator will get their fair share in the market in due time.” STDM also remains focused on its turf, and So emphasises the need to “consolidate our position here” ahead of the arrival of ambitious new casino resorts from Wynn Resorts and Las Vegas Sands by 2007. SJM has no interest, for now at least, in bidding for casino licenses elsewhere in Asia, and So dismisses the threat from Singapore to Macau’s future gambling revenues.“I think they [Singapore] just want to add in that small gambling element into their entertainment business to be more competitive in the region. They see the success story of Macau and Disneyland in Hong Kong. They do not want to lag behind. They want to add a little gambling element into their tourism sector. I feel Singapore will not develop that gambling element in a big way.” smokers on your wardrobe. Now, the Lisboa has made the entire first floor mass gaming area a strict no-smoking zone, restricting smoking to the second floor. SJM has also renovated the gaming areas, and added glitzy new room such as the Crystal Palace. By bringing more tables to Macau, Sands has eased congestion at the Lisboa. The crowds are now a more manageable two-deep around the tables of both the Lisboa and Sands.The Lisboa has spruced itself up,and offered promotions including a cash prize lucky draw.What’s more,as aMacau landmark,the Lisboa will always have its draw.It is other old SJM establishments,such as the Jai-Alai, which have seen steep fall-offs in business since the Sands opened. So points out that “when they [the US based gambling licensees] submitted their bids,they said they would build convention halls,exhibition centres,”and other dazzling leisure and entertainment facilities.However,“once they settled in Macau, they said nobody is looking for that, and they all built casinos, table games.”Sands Macau is scaling down its famous buffet to make way for more table games, and “even Wynn here don’t have a big theatre like the one in the Bellagio,”he argues.“We’ll have to wait and see if they really bring in these big Las Vegas performances.” For the time being, installing big LED screens and running more advertisements is the main way in which SJM has followed the lead of Sands Macau. gambling in VIP rooms, while ordinary folk had to jostle for position three or five-deep at the big/small tables. The minimum bet at the Sands’ big/small tables started out at a mere 50 patacas (US$6.25), compared to the Lisboa’s 100 patacas (US$12.50). A new market was opened up, but it was one the Sands - merely Venetian Macau’s provisional foray into the city - was unable or unwilling to deal with. Now, the minimum bet at the Sands’ big/small tables is a hefty 300 patacas, while the Lisboa retains 100 pataca tables,making it more low-roller friendly. Only when more gaming floor space opens can the Sands hope to realistically bring in people who may still be put off by the 100 pataca minimum. Sands had also tried to kick-start Macau’s slot machine business to attract the mass market. Slot machines account for close to 70% of total gaming revenue in Nevada, while they make up closer to 2% of revenue in Macau. A cursory walk along the idle banks of slots at the Sands, however, indicates that they’ll have to do more than just install machines with cute Chinese illustrations to convince gamblers here to feed the “hungry tigers” (as slots are referred to in the Cantonese dialect). One of the drawbacks of the Lisboa used to be that after half an hour on the floor, your clothes would reek of cigarette smoke, while the more up-to-date air circulation system at the Sands mitigated the impact of Mainland chain- Personnel Chat Lisboa’s croupiers are clearly older, on average, than their counterparts at Sands Macau. Some can be downright moody, while others offer grandmotherly advice. Some of the baby-faced dealers at the Sands occasionally wrongly total blackjack hands, so keep track and alert them if the miscounting is not in your favour. The old bats at the Lisboa may well be incapable of smiling, but brash young croupiers grinning as they turn up that improbable card to trump the player’s hand could well get an ashtray or HK$100,000 chip to the head. Another difference is that while there is a chance you could end up having an entertaining conversation and getting sage advice from a croupier at the Lisboa, those at the Sands are instructed by management to avoid conversation with customers. The quality of conversation can vary as much as your bankroll, but that’s a gamble you can decide to take. Ambrose So admits that the service provided by Sands’ employees is more consistent, explaining that, “They are small, we are big. We have had people working for many years, and theirs are all new recruits. They can have a new set of standards. Our standards change as time requires, so there may be some staff lagging behind. But we also give them refreshment courses to retrain them.” Asked whether STDM worries the worsening labour crunch will make recruitment more difficult, especially given aggressive recruiting by the likes of Wynn Macau, So replies: “We are recruiting people on a routine basis. We do not put up advertisements as grand as Wynn. The whole issue is whether you feel secure in your job. SJM’s employees have no doubt about their job security, but if they go to a new environment, it’s a little bit uncertain for them. 19 18 Oceanus