Inside Asian Gaming

inside asian gaming April 2016 10 We are very fortunate to have these customers coming to this beautiful island. That’s what I keep saying: when people do come they see this, there’s so much more to offer here than just a gambling destination … water sports, golf, outdoor activities that nobody else has, and sunsets and scenery that nobody can compare to. Cover Story bonds. We raised US$100 million three times, then US$50 million from the junket stake. IAG: And you can build Grand Mariana if you don’t raise another dime? MB: Correct. IAG: Let’s talk about the temporary casino. Any revenue figures to share? MB: We publish our rolling numbers, starting November, the US$1.6 billion, the US$1.5 billion, the US$2.2 billion and the US$2 billion in February. We’re very proud of these rolling numbers. Our seven [VIP] tables went to eight, went to 10 and now there are 12. But we did our billion-six and our billion-five, over US$3 billion rolling on seven tables, which astounded all of us. On slot machines, we’re roughly winning anywhere from US$200-to-300 per day. And normally we’re winning US$3,000 a day on the tables on the mass floor. Slot machines and mass tables somewhat average to US casinos, and our VIP are off the charts. IAG: Where do VIPs come from? MB: Mostly from mainland China. IAG: And they come because of their relationship with Ji Xiaobo? MB: It’s a relationship not only with him. We hired three-to-four marketing people that have relationships with these customers. Yes, they are all individual relationship based, all getting a 1.3% rolling program, which is very close to Macau. They’re 1.25%, so we’re giving 1.3%. You know when you leave Macau … I was just in Cambodia, and we were in competition with everybody who’s giving 1.6%, 1.7%, 1.8%, some 2%. We are very fortunate to have these customers coming to this beautiful island. That’s what I keep saying: when people do come they see this, there’s so much more to offer here than just a gambling destination ... water sports, golf, outdoor activities that nobody else has, and sunsets and scenery that nobody can compare to. IAG: Where will mass customers come from? MB: The bright side is who’s coming to the island now, and why can’t I have a room more than one night. In our vicinity, there’s 2,800 hotel rooms, and they’re 100% occupied, seven days a week. Anywhere from US$200 to US$400 a night, filled. Chinese, Koreans, Japanese who come to the island right now. They’re here for three days, swimming, snorkeling, shopping, eating. For a four-five hour trip, if you’re coming from Beijing, Korea, Shanghai, Japan, this is heaven. We have a 50% [visitor] return rate. The mass, I think, will come once Grand Mariana opens and our 370 rooms are in. There’s actually another 1,000 rooms being built on the island. There’s a 200 room Korean hotel, there’s a hotel called E-Land [branded Kensington] being fixed up – that will be another 300 rooms, which will help us. Again, I want to keep reinforcing the transparency that we have here. So all the stories that you hear in Macau, over the table, under the table … Here we have no gaming tax – that’s the main point ... zero gaming tax, so we’re very transparent, we’re following all the AML [anti-money laundering] laws. We know the federal government’s eye is watching. On hiring practices, following all the US rules. We are following all the laws, CTRs [cash transaction reports], and know your customers, KYC, following all those laws. That’s why customers are coming from mainland China. There’s something about the US that makes everyone feels safe. Not only safe on the outside, but feel safe on the games. They know we are highly regulated, so it makes them feel comfortable. I’m not saying other jurisdictions are not, but you don’t know.