Inside Asian Gaming

september 2016 inside asian gaming 75 REGIONAL BRIEFS “For now, we believe a significant portion of this volume comes at the expense of Wynn Macau. Over time this should reverse and we expect to see market share gains at the corporate level as existing Cotai-centric high end customers gravitate towards WP with the eventual help of WP marketing efforts.” The primary concern since Wynn Palace opened its doors has centred around whether or not it brings anything new to Macau. It has also been noted the main gaming floor has been relatively slow compared to Galaxy Phase 2 and Studio City which both opened in 2015. But Govertsen said such perceptions could prove misleading, with “the vast majority of cash flow being generated behind closed doors.” “In line with our long-term on-the-ground thesis that customers are aspirational in nature and seek quality with all other things being equal, the sheer quality of Wynn Palace should draw enough new-to-Wynn customers from other Cotai casinos and allow it to grow earnings in 2017,” he said. New Saipan resort on track for March launch More significantly, VIP revenue in Sydney during the second half of the financial year reached AU$320.5 million compared to Crown’s AU$312.8 million. It comes on the back of significant investment by The Star Entertainment Group in upgrading its facilities in Sydney and the Gold Coast in recent years, with around AU$1 billion being spent at The Star alone on new hotel rooms, VIP gaming facilities and various non-gaming attractions. The company said it could spend another AU$425 million through June 2017 at its Sydney and Gold Coast properties as it looks to lure the lucrative Asian market down under. Early signs promising for Wynn Palace The latest addition to the Cotai landscape, Wynn Palace, is in good shape to claim decent market share – particularly at the higher end of the spectrum – according to Union Gaming analyst Grant Govertsen. In an update released one week after Wynn Palace officially opened to the public, Govertsen said he was confident that Steve Wynn’s US$4.2 billion indulgence would ultimately prove successful with high-end players likely to gravitate towards its luxurious gaming offerings. “Talking to junkets and spending time in VIP rooms over the past week suggests the high end of the market has turned up at Wynn Palace and volumes are strong (for junket and direct VIP/ premium business),” Govertsen explained. Imperial Pacific International Holdings says it is on track to open the first phase of its integrated resort on the Pacific island of Saipan in March next year. The firm released its interim report for the first six months of 2016 in late August, in which it stated, “The board aims to commence opening of the Imperial Pacific Resort by 2017 Chinese New Year with the opening of the hotel tower by the end of March 2017. “Construction of the town hotel, the Imperial Pacific Resort in Garapan, Saipan, has been progressing smoothly. An additional US$83 million has been invested in design and construction of this super luxurious resort which has brought the total investment to US$143 million by the end of the first half of 2016.” Imperial Pacific says the resort’s gaming facilities will include somewhere between 200 and 300 gaming tables plus 300 to 400 slot machines. The company also announced revenue of HK$4 billion for the first half of 2016 after opening its temporary Saipan casino last November on the back of strong results in the VIP sector. Imperial Pacific’s temporary facility boasts 16 VIP tables and 32 mass market tables.