Inside Asian Gaming

quiring the shares of Sociedade de Fomento Predial Omar, Limitada. Other than the extension, all other provisions of the agreement remain in force. No fees were associated with the extension. Korean Conference Attracts US Interest Casinos and the employees who run them were among the topics discussed when the world’s leading gaming experts, includ- ing two from the University of Houston, gathered in Seoul, Korea, the past July for the International Conference on Casino Develop- ment and Strategy. John Bowen, dean of the UH Conrad N. Hilton College of Hotel and Restaurant Management, and Ki-Joon Back, associate professor with the college, were presenters at the conference sponsored by Kangwon Land Resort & Casino, 7Luck Casino and the Asian Academ- ic Network on Commercial Gaming. “It’s an honour to represent the University of Houston, and more generally, the American gaming perspective at this prestigious con- ference,” Bowen said.“The commercialization of gaming is becoming more and more international, and our faculty and our country are providing the expertise at critically early stages of development.” Bowen discussed a comprehensive approach to the gaming in- dustry when he presented,“Current Trends in Casino Marketing.” He argued that gaming must be part of a larger tourism package that must include restaurants and commercial retail options to provide a rich tourist experience. “Communities are often concerned when gaming initiatives be- gin,” Bowen said.“With respect to Korea, this conference is an impor- tant step in establishing a plan to maximize the obvious economic and entertainment benefits of a viable gaming industry, while mini- mizing consequences like problem gambling.” Back’s lecture, “Internal Relationships in Marketing: Casino Em- ployees,Job Satisfaction and Organizational Commitment,”discussed employee retention and satisfaction, which he argues has a residual effect on customer retention and satisfaction. “The Asian casino industry is booming right now,” Back said. “There’s a real chance to establish a communications channel that yields a mutually beneficial exchange of ideas.” In addition to the University of Houston, 14 presentations were delivered by faculty and representatives from University of Nevada – Las Vegas, University of Nevada – Reno, University of Colorado, Colo- rado State University, the Hong Kong Polytechnic University, Osaka University of Commerce, Kyunghee University and the Problem Gam- bling Foundation of New Zealand. Wynn 2Q Profit on Macau Performance Wynn Resorts Ltd reported second quarter profit and revenue that exceeded analysts’ estimates after it opened a new casino in Ma- cau, and drew more gamblers to Las Vegas. Net incomewas US$89.6million,or 82 cents a share,30 centsmore than analysts estimated. Revenue more than doubled to US$687.5 million, beating estimates by more than US$100 million. Wynn Resorts’ Macau casino, which opened in September 2006, contributed 42% of the company’s operating income. Wynn Las Ve- gas almost tripled its operating profit by drawing more gamblers and filling more of its US$300-a-night hotel rooms with overnight guests. Wynn Resorts, which was founded by billionaire Steve Wynn, re- ported a loss of US$20.1 million, or 20 cents a share, in the second quarter of 2006, when the Macau property had yet to open. The company increased its estimate for costs to build a new re- sort in Las Vegas called Encore, which is slated to open in early 2009. Spending on the project may total US$2.2 billion, compared with an earlier estimate of about US$1.7 billion. Wynn Las Vegas reported operating profit of US$63.4 million on a 40% year-on-year increase in net casino revenue.The occupancy rate at the casino’s hotel rose to 97%t from 95.7% in the year-ago period, and the average daily room rate climbed to US$301 from US$293. Operating income at Wynn Macau was US$53.2 million on net revenue of US$352.5 million. Hotel occupancy averaged 86.2%, and rooms cost an average of US$258 a night. Wynn Resorts plans to continue expanding in Macau, with a 123,000-square-foot addition to its current property. Wynn Resorts has development rights to 54 acres on Macau’s Cotai Strip, where it may build as many as three casinos in the next five years. The company also provided its first estimate for costs to build a new complex in Macau called Wynn Diamond Suites, scheduled to open in 2010. Construction may cost US$550-600 million, the company said. Gaming revenue in Macau has surged since 2004, when the gov- ernment ended the four-decade monopoly of billionaire Stanley Ho by awarding licenses to companies including Las Vegas Sands Corp. andWynn Resorts.Total gambling revenue rose 50% in Macau during the second quarter. SteveWynn,65,had a net worth of $3.4 billion as of March,ranking him 264th among the world’s billionaires according to Forbes maga- zine. He took Wynn Resorts public in 2002 and opened the Wynn Las Vegas in 2005. He owns about a quarter of the company. LVS 2Q Profit Drops on Expenses Las Vegas Sands Corp (LVS) said its second-quarter net earnings 41