Inside Asian Gaming

DECEMBER 2017 INSIDE ASIAN GAMING 43 Han Chang-woo CHAIRMAN AND CEO Maruhan Group POWER 1,292 LAST 19 SCORE YEAR CLAIMS TO FAME Top moneymaker in Japan’s estimated US$30 billion pachinko market Company celebrated 60th anniversary in May, all under Mr Han’s leadership 17 ASIAN GAMING POWER 50 2 0 1 7 Kevin Kelley CHIEF OPERATING OFFICER Galaxy Entertainment Group POWER 1,304 LAST 11 SCORE YEAR CLAIMS TO FAME Helped launch the Venetian Macao in 2007 Decades of experience in senior management, specializing in mass market 16 A key man in maintaining Galaxy Entertainment Group’s (GEG) remarkable resilience in the face of the challenges that have engulfed Macau’s gaming industry in recent years, Kevin Kelley has built a reputation as someone who gets the job done. Having taken over as Chief Operating Officer in September 2015 after his predecessor, Michael Mecca, switched his focus to the company’s growing foreign portfolio, Kelley’s appointment was a nod to Galaxy’s evolution from a VIP-reliant business to mass market with the company stating at the time that, “Mr Kelley will oversee functions such as business development, international premium and mass market development, Galaxy Macau, StarWorld Hotel, Broadway Macau and City Clubs operations as well as advancing the development plans for Phases 3 and 4.” As of 3Q17, he appears to be handling those tasks with aplomb – even if Broadway’s ramp has been hampered by the literal prevailing headwinds of Typhoon Hato, which saw casino operations ceased for a month through September. Despite the setbacks, GEG continues to stand out from the Macau concessionaire crowd with revenue up 23% year-on-year for the quarter and EBITDA a phenomenal 31%. AlthoughGalaxy has proved strong across the board, it is the growing mass market where the company sees its future and in this there is no better man than Kelley to guide the way. His 40 years of industry experience include previous roles as Senior Vice President of Operations at Las Vegas Sands – where he helped open the Venetian Macao in 2007 – as well as various senior positions with Station Casinos in Nevada. Kelley was handed a difficult assignment given the state of the Macau market at the time of his appointment, however it is clear that he has already repaid the faith shown in him by GEG Deputy Chairman Francis Lui. Pachinko may be dying, but Japan’s unique pastime still produces some very healthy numbers. Market leader Maruhan Group booked an estimated US$2.3 billion in gross gaming revenue for its 2017 fiscal year, roughly double that of its nearest rival. For the uninitiated, pachinko is an electronic gaming challenge that involves using a dial to try to flick metal balls into holes to activate bonus features that yield visual rewards and dole out additional balls. Pachinko parlors today also feature pachislot machines resembling conventional slot machines but have buttons that enable the player to choose when to stop the reel. Winnings can be exchanged for prizes and those prizes, in many cases, can be exchanged for cash at nearby locations, rendering pachinko a form of stealth gambling. Born in Korea, Han Chang-woo came to Japan at age 16 in 1947 and founded Maruhan a decade later. Over 60 years, the company has assembled businesses including convenience stores, 17 golf courses, a handful of bowling alleys and driving ranges, a bank