Inside Asian Gaming

INSIDE ASIAN GAMING | September 2008 20 TCSJOHNHUXLEY “P ari-Mutuels Under Pressure” in the January 2007 issue of Inside Asian Gaming reported “the success of Macau’s casinos has masked an alarming decline in the fortunes of the Macau Jockey Club and the Macau Canidrome [dog racing track].” The increasing attractiveness of Macau’s casinos since the liberalisation of the local industry and opening of the first glitzy foreign-operated casinos in 2004 has even dealt a serious blow to the mighty and venerable 124-year-old Hong Kong Jockey Club (HKJC), which is incidentally the neighbouring city’s largest single taxpayer. According to HKJC CEO Winfried Engelbrecht-Bresges, Macau’s casinos are draining away at least US$2.4 billion a year—equivalent to 20% of the take—from the Club’s betting revenue. Indeed, pari-mutuel products the world over are losing out to fixed odds operations, large pool lotteries, and instant and quick draw lottery products. Race tracks—particularly in a number of US States and Canadian provinces—have responded by establishing large scale slot machine operations on their premises, which have come to be known as “racinos.” This has brought the tracks better attendances,better utilisation of their facilities,and a better balanced portfolio of gaming product. The racino concept is not new; its genesis can be traced back to 1990, when the State of West Virginia allowed video lottery terminals to be installed at Mountaineer racetrack. Today, Mountaineer has more than 3,200 slot machines, making it one of the largest slot operations in North America. Racinos in the US have proved a smashing financial success, The Racino Response With race tracks around the world installing slot machines to boost their revenue and appeal, it’s only natural that casinos introduce virtual racing at their premises (From left to right) Solidicon founders Daniel Hansen, P-A Gustafsson and Jonas Wikstrom Triple Towers Virtual Horse Racing and Greyhound Racing feature stunning graphics. “You can even see the dust from the horses when they’re running,” comments TCSJOHNHUXLEY Corporate Development Director Tristan Sjöberg