Inside Asian Gaming

February 2011 | INSIDE ASIAN GAMING 9 Macau Revenue check of the person’s gambling history with Central Credit, a credit reporting bureau for the casino industry. This can create perverse incentives for a casino host who already has a personal relationship with a player and is paid according to the player’s level of roll. It can encourage a host to in turn encourage his employer to keep the credit lifeline open. Default can swiftly lead to litigation in the US system, though settlement via the courts may take many years in some cases. One encouragement for Vegas gamblers to pay up is that although a casino debt is a civil matter in common with the rest of the US, in Nevada is it also a felony offence that can lead to arrest and a prison sentence. According to the Las Vegas Sun, the Clark County District Attorneys office processes about 100 marker cases each week and thousands a year involving big Strip resorts and smaller, neighbourhood casinos. That volume has increased by 5% to 10% in the recession, peaking in 2009. Home visit In the Macau credit scenario, if person-to-person ‘persuasion’ doesn’t work, and the debt goes seriously bad, the Macau Macau table gaming revenue by operator in January 2011 (excludes slots revenue) SJM 135.81 2.86 3.88 1.66 5.54 70 Sands China 43.86 4.50 1.97 1.01 2.98 66 Melco-Crown 62.58 3.33 2.09 0.39 2.48 84 Wynn Macau 55.26 3.44 1.90 0.49 2.40 79 MGM Macau 41.68 3.35 1.40 0.38 1.78 79 Galaxy 59.69 3.06 1.82 0.21 2.03 90 Industry Total/Avg 398.9 3.42 13.06 4.14 17.21 78 VIP Baccarat Turnover (HK$ bn) VIP Baccarat Win Rate (%) VIP Baccarat Revenue (HK$ bn) Main Gaming Floor Revenue (HK$ bn) Total Revenue (HK$ bn) Share of Revenue From VIP Baccarat (%) Sands China’s better balance between VIP and mass also arguably offers a more stable business model than some of its rivals, providing some cushioning against potential economic shocks.