Inside Asian Gaming

Cambodia’s cost advantages allow Na- gaWorld to offer greater comps and com- missions to players with less front money compared to operators in Macau. The mid- to low-end VIP market could increasingly migrate to Cambodia once NagaWorld is fully operational. NagaWorld’s revenue from junket play- ers has been growing fast over the past few years, from US$21.6 million in 2003 to US$52.6 million in 2006 (although main hall revenue has been static as capacity has yet to increase).The average win per junket table per day has also risen from US$2,959 in 2003 to US$6,550 in 2006, while Macau’s average win per VIP table has steadily de- clined as capacity explodes. Currently, 40% of NagaWorld’s junket customers hail from Malaysia, with 25% from China and 22% from Singapore. Vietnam accounts from 9% and Thailand 4%. Notably, however, in 2006, Chinese junket players brought more front mon- ey to NagaWorld than players from any other country. NagaCorp was listed on the Hong Kong stock exchange in October 2006, with the IPO priced at HK$1.25 per share. It became the first casino operator to list in Hong Kong, and is the first Cambodian company to be listed anywhere. The stock was trad- ing at around HK$2.3 in early September. The company faces no restrictions on its future expansion (locations, number of tables, size of premises, etc). Given its considerable cost advantages, once Naga- World is completed, the company’s slogan, “NagaCorp Rising”, could well characterise its stock price. 22 lows NagaCorp a lot more flexibility in of- fering incentives, especially junket rolling commissions, to players. Cambodia’s other big advantage is that starting salaries for dealers in the country are about US$80 per month, compared to as high as US$2,000 in Macau. Dr Chen elaborates on the advantages of Cam- bodia’s cheap and plentiful labour force: “Cambodia has a population of 16 mil- lion, compared with about half a million in Macau, and most of them are young. These young people are hard working, hospita- ble, and provide good VIP services. This is complemented by Cambodia’s tourist at- tractions, including Angkor Wat [designat- ed one of the new ‘Wonders of the World’], lovely beach, rich culture, and one of Asia’s fascinating rivers.” Rendering of the planned dancing fountain in front of NagaWorld