Inside Asian Gaming

INSIDE ASIAN GAMING | July 2009 24 “In general terms, though, Macau has a wonderful future, and I am absolutely flabbergasted when I see analysts talking down Macau. These were the same people who overblew it and tried to say it was the goose that lays the golden eggs and that there was a pot of money and all you had to do was put your hand in and pull it out full of gold,” states Mr Kinsman. “Any market that grows at 30% per year when the world is in a massive financial crisis, isn’t a tough market and isn’t a bad market. The market is restructuring, and there are certain sections of the market that are growing while others are changing—that’s fine. All markets do that,” he adds. “The second biggest earner in Macau after baccarat is slot machines. Last year they grew in net revenue 56%—in a market with fewer machines. What does that tell you? It tells you that people are playing slots more. “Now if the character of Macau’s visitor is changing, and if there are fewer high rollers coming in, it’s logical that the business for slots and other forms of electronic gaming could end up growing substantially,” says Mr Kinsman. Best of Both Worlds Weike offers a Western perspective with Eastern application Weike occupies an interesting place in the global gaming equipment market given that the company is firmly Asia facing but led by a ‘Westerner’ (speaking in strictly geographic terms an Australian is about asmuch of an‘Easterner’as anyone canbe).Weike’s headquarters—the brain of the business—is based in Singapore while its manufacturing heart is across the border in Malaysia. These are two countries that have proven the commercial benefits that can come from multi-culturalism. They have benefited from matching Western marketing techniques and strategic vision with Eastern excellence in cost control and manufacturing and an understanding of Asian players’ tastes. “I think at the moment the industry hasn’t quite realised that electronic gaming is a distinct opportunity for them—especially in today’s climate. There are some that are starting to look at it, and it will slowly catch on,” says Mr Kinsman. Reset Button Electronic table gaming has a bright future after a patchy start in Macau “When the Macau market first opened up it imported a lot of multiplayer games from Europe and elsewhere. Some of them weren’t right for the market. There were a lot of [product] failures,” says David Kinsman of Weike. “I don’t think the manufacturers had researched the Macau market and neither had the [foreign] operators. The operators haven’t looked at where electronic table gaming fits in to a product mix. I think in general terms neither the manufacturers nor the operators have used a proper strategy. There has been neither marketing from the manufacturers to the operators nor the marketing to the players,” he adds. “I think we will see—and Mocha [slot clubs] have touched on this with their VIP areas—totally electronic casinos appearing in the Macau market. They will be niche businesses—they won’t be everywhere. But an individual casino and a casino market in general, should offer its visitors a range of products. You’re mad if you don’t. Trust factor “Supposedly there’s a tendency for some people not to trust electronic games. But when they’re certified by organisations like GLI [Gaming Laboratories International] and BMM [Compliance] that should be without question adequate safeguard,” states Mr Kinsman. “The other benefit of an electronic table is for those people who are somewhat embarrassed to go up and sit at a live table. It can be quite difficult at a mass-market table if you are not an experienced blackjack or baccarat player. Other players can sometimes harass you if you’re slowing the game down. “Those less experienced players have the opportunity to play at their leisure on an electronic table without the fear of being ostracised or criticised. Some operators actually see electronic tables as a learning base as well as an income base. They can teach players about games,” he adds. “Go onto any gaming floor in Macau, and there are going to be areas of the floor at particular parts of the day that are not worth having. Even at night some areas may not open up,” states Mr Kinsman. “Those are the sorts of areas where you can do things with electronic gaming. The product doesn’t have to be in mainstream areas. If it can be placed in mainstream areas it’s even more successful. Electronic gaming holds its own in many of the casinos. It does better numbers than a slot does per day, and that’s really what it’s all about.” Weike METG Weike