Inside Asian Gaming

15 14 the mezzanine level will provide space for back-of-house support, and there will be three gaming floors, including one extend- ing from the existing mass-gaming floor. There is one last floor with a currently un- designated usage, though it could perhaps house a future club or further gaming ex- pansion, says Mr.Wong. The biggest disappointment at Sands Macau has been its fine dining restaurants, which have met with a lukewarm response, and the property has yet to provide any real “Vegas-style” entertainment. Mr. Wong reveals the prime goal of the podium ex- pansion is “to provide as many tables as possible,” given that they are generating such excellent returns, though he stresses the tables are hardly being “crammed in.” The podium expansion will not feature any new F&B outlets, but Sands Macau is ex- panding its existing mass-market outlets, including the popular noodle shop and buf- fet – though the buffet had previously been scaled-down in order to make way for more gaming tables. New Concept of Casinos “In the East, casinos are traditionally seen as a place where you make or lose money,” says Mr.Wong.He believes PSDG has changed“the concept of what people perceive a casino is,” by throwing in “elements of entertainment, with F&B outlets, light and air and space.” Although only 5-10% of Macau’s casino revenues currently derive from non-gaming activities, the casino resorts on the Las Ve- gas Strip now make half their money from hotel rooms, retail, entertainment and F&B. LVS Chairman Sheldon Adelson touts the upcoming Venetian Macau’s extensive expo, entertainment, shopping and dining offer- ing, and underplays the gaming by saying “oh, and we’ll have a casino as well.” The Singapore government has also sought to play down the gaming component of its two upcoming casino-centred resorts – the first of which will be developed by LVS, to open in 2009 – by dubbing them “Integrat- ed Resorts.” During our interview, Mr. Wong coined his own phrase – “total hospitality complex.” PSDG founder Paul Steelman worked on Wynn’s Mirage, which, when it opened in 1989, became the first casino resort on the Las Vegas Strip to place as much importance on dining and entertainment as on gaming. According to a recent profile on Mr. Steelman in Forbes magazine, the first casino resorts on the Strip, including the Flamingo, Tropi- cana, and Desert Inn, lured gamblers with free rooms and cheap buffets, but offered few distractions beyond the casinos, which were dark, cramped and difficult to get out of. According to the Forbes article: “Keep a customer stuck, the thinking went, and he’ll play until he’s out of money.” That was also the prevalent view in Macau, until Sands Ma- cau proved that gamblers will actually play more when they have light, space and clear exits – studies have shown that clear exits keep gamblers playing for five minutes lon- ger, on average. During the heyday of the Flamingo et al, gambling made up over 90% of the revenue of resorts along the Strip, just as in Macau today. Analysts predict Macau will gradually move towards a Vegas-mix of 50:50 gaming and non-gaming revenue. That will result in traditional casinos giving way to“total hospi- tality complexes.” In the new Macau,“casinos will be an element within a mall-like environ- ment,”believes Mr.Wong. Mr. Wong sees potential for retail in par- ticular.“Shopping is hugely underdeveloped in Macau,” and “there’s a great opportunity when Hong Kong introduces its GST [goods and services tax].” The Hong Kong govern- ment has proposed the introduction of a 5% sales tax in order to diversify the city’s narrow tax base. Given Macau’s lack of a GST, as well as its cheaper hotel rates and coming wider variety of entertainment choices, CLSA’s Aar- on Fischer predicts “mainlanders and other tourists will divert their trips fromHong Kong to Macau for shopping.” Theming and the “3 Cs” Sands Macau and Wynn Macau follow the current trend in Vegas of providing con- spicuous luxury without a theme. Mr. Wong does not believe theming in itself is a bad thing – after all, Venetian Macau will recre- ate the canals and serenading gondoliers of the historic Italian city, while PSDG’s upcom- ing Montreux will feature a Swiss-lakefront theme. Mr. Wong does, however, criticize “theming without quality,” as another quick fix to draw mainlanders. Disney is an example of theming with quality. Macau’s Greek Mythology Casino, featuring towering styrofoam GRP-shelled tributes to Poseidon and Zeus, and the Em- peror Palace Casino with its mock English Beefeaters performing the changing of the guard while grumbling in Russian, are per- haps not.Mr.Wong also does not believe that countries like Singapore or Japan – assuming the latter will soon legalise casinos – will fea- ture much theming. More than themes, PSDG tries to pro- vide the “3 Cs” – cool, comfort and casual. Mr. Wong elaborates:“Cool as in hip and fashion- able – trying to make it a place where people want to go to be seen, and to see the right people.” A comfortable and casual environ- ment, meanwhile, encourages spending, on either shopping or gaming. Paul Steelman’s Rules After more than 20 years in the field, Mr. Steelman has accumulated around 70 rules of casino design, many of which are based on rigorous studies of consumption and gambling behaviour. Mirrors are avoided in gaming areas, otherwise once a gambler sees himself and “realizes he’s not James Bond,” he’ll stop spending money. The co- lour blue is notably absent, since it is regard- ed as “cold and discouraging,”whereas reds, golds and earthen tones help to promote feelings of warmth. In his interview with Forbes , Mr. Steel- man also added,“One of the things we try to do is peak the curiosity for exploration. We don’t like straight lines. We want you walk- ing on curved paths, exploring nooks and crannies. To say ‘Wow!’ or ‘I’m empowered to gamble.” As witnessed in Sands Macau, Mr. Steelman also likes his gaming spaces well- lit, with more concentrated lighting over the tables, since darkness confuses gamblers. He stresses the need for short walking distances between the lobby, hotel rooms, casino floor and shopping areas to encourage spending, and allows for plenty of space between tables and slot machines so that players do not feel trapped. Mr. Steelman also understands the draw of people-watching, and seeks to pro- vide openly visible eating venues with views of the tables. Coming Attractions The next PSDG design to go up will be the Four Seasons hotel, adjacent to the Venetian Macau, as well as a new resort at the expan- sive Foxwood’s Casino in Connecticut. PSDG is also designing the behemoth US$1.9 bil- lion Montreux entertainment and hotel com- plex in Las Vegas,which is due for completion in 2009, and will consist of 2,750 guest rooms and a 104,000 sq. foot casino.The Montreux’s crowning glory will be a massive observation wheel atop the casino floor, which, like the London Eye, will provide riders panoramic views of the city. According to the Forbes article, Mr. Steel- man “plans to push the non-casino receipts even higher” with the Montreux. The casino and retail zones will be interconnected, and the property will feature a multi-functional ballroom which can be transformed under two hours, so that in one day, it can host a fashion show in the morning, a poker tourna- ment in the afternoon and a boxing match at night. Not only will this maximize the use of valuable real estate, but according to Mr. Steelman, casino spectacles should in any case be restricted to under 90 minutes, oth- erwise “you are dipping into time people would use spending money in other parts of the casino.” The Montreux’s crowning glory will be a massive ob- servation wheel atop the casino floor, which, like the London Eye, will provide riders panoramic views of the city