Inside Asian Gaming

March 2008 | INSIDE ASIAN GAMING 11 configuration, Mocha Baccarat features the same circular configuration of Interblock’s roulette and sic bo products, which are also among the top-performing multi-terminals at Mocha Clubs. Although Mocha members choose games according to the underlying maths, Ms Hsu admits that members tend to stick to their tried-and-trusted favourites. When Mocha introduced an updated version of Great Escapes, players eschewed it in favour of the earlier version, even though both versions had identical maths and the newer version arguably looked more attractive. Members’ preference for familiar games could account for why Stargames’ Action CashandVegasStarBaccarat,andInterblock’s roulette and sic bo, are the most long-lasting gaming machines at Mocha Clubs. “They were there since the very beginning, and they still survive given the competition,”says Ms Hsu. Coping with the capacity explosion By the end of 2007, Macau had 13,267 slot machines—a more than doubling of capacity compared to the end of 2006, but Mocha’s revenue for the fourth quarter of 2007 still grew 21.3% year-on-year to US$21.6 million. Mocha Clubs showed no signs of slowing down in 2008. Ms Hsu says the challenges presented by the relentless expansion of Macau’s slots capacity and increasing competition from massive new casino resorts are essential to spurring Mocha Clubs to develop new markets and opportunities. She is conscious, however, not to deviate from “Mocha’s formula to success, which is based on service.” Mocha Clubs has always been extremely innovative and service-oriented. In addition to pioneering the use of multi-terminals and opening the first VIP slot lounge in Macau, Mocha implemented the convenience of Ticket In/Ticket Out (TITO) technology across all machines at all properties by the end of 2007. Mocha is notably also the first gaming operator in Asia to implement a player tracking system, points out Ms Hsu, and puts the data it gathers to good use in game selection. The likes of Venetian Macao have a much greater range of in-property offerings to draw on as loyalty rewards. “They have hotel rooms, they have retail outlets, they have restaurants,” observes Ms Hsu, adding, “because of our constraints, we need to find more innovative giveaways.” Mocha’s response is to “liaise with a lot of external vendors,” from petrol stations and convenience and clothing stores to hot pot restaurants and suppliers of optical products and Chinese delicacies such as bird’s nest. Mocha Clubs thereby “provides more variety of redemption items to our members,” says Ms Hsu. Ms Hsu also stresses that Mocha’s membership club is more like a private club than a casino loyalty programme. “We provide a lot of privileges and benefits, including ferry tickets,meals at local eateries and discounts at a variety of shops.” Mocha Clubs also hosts regular get-togethers tailored to different tiers of members,such as dinner parties ahead of major festivals.These events usually host about 100 members. With its comparatively cosy and unintimidating venues, Mocha Clubs cultivates a “club atmosphere,” whereas big properties can be “more impersonal,” says Ms Hsu. “Our staff will greet people coming in by name,” she claims, adding that on her regular site visits, she often sees “guest relations executives talking with players like close friends.” Therefore,eventhoughaseachsuccessive new casino resort opens, “our members will inevitably try out these properties,” Ms Hsu is confident that “eventually, they will come back to us for the service.” All about the members Mocha Clubs has 1,100 gaming machines spread over six downtown venues. With an average of fewer than 200 machines per outlet, Mocha Clubs offers a decidedly intimate and subdued environment compared to the grand Venetian Macao, which has more than 3,400 machines—and much more besides—under one roof. It also means that because Mocha offers such a stark alternative to the major Macau casinos, it may not compete with them as much as they compete with each other. Of course, without the walk-in traffic of Venetian, Mocha Clubs is heavily dependent on the loyalty of its members.“We are totally customer base, actually,” stresses Ms Hsu. This, to a large extent, insulates the company from the fallout from the capacity explosion. CSR in focus Although Macau is witnessing revolutionary economic development, it is also witnessing the emergence of unprecedented social and political discontent among large sections of the population who feel either left out or harmed by the casino boom. It seems appropriate, then, that Mocha Clubs “aims to be one of the leading forces in Macau to push, implement and promote corporate social responsibility (CSR) this year,” reveals Ms Hsu, stressing social harmony is essential to sustainable economic development. When Mocha Clubs promotes its brand abroad, “we want to emphasize this is a Macau-rooted, Macau-grown enterprise,”