Inside Asian Gaming

INSIDE ASIAN GAMING | December 2009 10 competition” in the high roller market, claiming LVS had significantly raised rolling commissions that month. September – Wynn Macau has its first phase opening, with an initial price tag of US$1.2 billion. The 600-room property quickly grabs a mid-to-high teens percentage of Macau gaming revenue, thanks to its pre-arranged deals with Macau’s VIP gambling agents. Galaxy’s Grand Waldo Casino and its accompanying Grand Waldo Hotel open a short distance from the Cotai Strip. The casino features 16 VIP gaming rooms, 166 tables and 350 slot machines. The Grand Waldo Hotel is equipped with 340 rooms, including two presidential suites and 24 VIP suites. Melco PBL takes over Mocha slot lounges, a product aimed at local players, from SJM. October – Galaxy’s StarWorld Hotel & Casino opens on the Macau peninsula. By January 2007 the HK$2.5 billion (US$320 million) property grabs a 22% share of gross gaming revenue, with net earnings per mass floor table of US$70,000 per month, compared to the Macau average of HK$40,000. Macau Chief Executive Edmund Ho rules out issuing any more casino concessions “for the time being”. Existing concessionaires’ share prices rise on the news. December –Melco PBL Entertainment (now Melco Crown Entertainment) raises US$1.14 billion on the Nasdaq market in New York to fund its Crown Macau and City of Dreams project on Cotai. 2007 January – Richard Branson’s Virgin Group is reported to be in discussions with Tabcorp, Australia’s largest gaming organisation, about the feasibility of building a US$3 billion casino project in Macau. Nothing comes of the plan. February – SJM’s US$640 million flagship property Grand Lisboa, with its distinctive lotus design, opens to the public. The celebrations include the giving away of HK$10,000 (US$1,290) in cash to casino visitors randomly every 15 minutes. More than a million people visit the property by 28th February. March – Wynn Resorts hires Bank of America, Deutsche Bank and Société Générale to arrange US$1.25 billion of new loans. Some of the money is for extra capacity in Macau. The new project, focused on serving VIP players, is initially announced as Wynn Diamond Suites, but is later rebranded as Encore Macau, to match a similar expansion scheme by the company in Las Vegas. April – Bally Technologies announces the gaming industry’s largest combined slot, casino management (CMS) and bonusing systems supply deal to date. The deal with LVS, valued at up to US$56 million, includes equipment for the Venetian Macao, six other hotel properties being built by LVS along the Cotai Strip, and the under construction Marina Bay Sands in Singapore. Prior to the liberalisation of Macau’s gaming industry in 2002, none of the then monopoly operator Dr Stanley Ho’s casinos featured CMS. IAG’s columnist Octo Chang reveals the existence of illegal side betting in the Macau VIP market. It’s done either via a multiplier applied to the HK dollar chips presented on the table, or by agreement to accept the denomination of the bet in a higher value currency than the HK dollar chips on the table. In both cases, the effects are the same—greater rolling chip volume than officially advertised, giving more player entertainment and better junket margins, but ultimately a loss of revenue for the Macau taxman. Cover Story Entrance to Wynn Macau’s Sky Casino Grand Lisboa Steve Wynn pictured at Encore Las Vegas The Grand Waldo Casino Lobby of StarWorld Hotel & Casino