Inside Asian Gaming

INSIDE ASIAN GAMING | July 2009 46 Briefs International Briefs CityCenter—already a dinosaur? MGM MIRAGE may have dramatically improved its chances of remaining a going concern with its corporate debt restructuring, but major challenges still lie ahead. When the company’s US$11 billion, 7,000-roomCityCenter resort in Las Vegas opens in October, it will be launching during the biggest downturn seen in most people’s lifetime. CityCenter looks positively indulgent in the current recessionary mood. Not only does it have a casino, four hotels, and luxury apartments, it also has a fire station and an on-site power station. A joint venture between the casino operator MGM Mirage and Dubai World, the vast development in Las Vegas is the biggest privately funded construction project in the US. MGM MIRAGE is currently toiling under an estimated US$13.5 billion to US$14 billion of debt. “We’ve had a boom here for 20-plus years. Nobody has ever experienced a downturn before. We’ve been hit hard,” says Donald “D” Taylor, head of Las Vegas’s Culinary Union, which represents 60,000 hotel workers. “We had some people out there arguing that the Las Vegas economy was immune from an economic downturn and a few others saying we were, at least, resistant to recession. It’s very clear now that we are not,” adds Keith Schwer, an economist at the University of Nevada in Las Vegas in an interview with the Taipei Times. Double your money The United Kingdom has doubled the maximum amount players can win on a club or pub slot machine from£35 to £70. Themaximum permissible stake per play has also doubled from 50 pence to £1. Analysts say the rule relaxation could boost club and pub slot revenues by 20% and bring in £27 million per year in tax. The new rules are seen by the industry as the government trying to revive the sector. Revenues and tax returns were badly hit when restrictions on where slots could be located were introduced under the Gambling Act 2007. The Act was presented by government at the time as a consolidatingand liberalisingmeasure, bringingall gamingunder the control of a single regulatory body called the Gambling Commission. But one of the most contentious provisions as far as the industry was concerned was that 6,000 slots in premises such as takeaway food shops and mini cab offices had to be phased out by this year. Andy Burnham, the UK’s Culture Secretary, says the amendment could help pubs and clubs stay financially viable during the recession. Suite success for Rainmaker The Rainmaker Group, a world leader in software and services for the gaming hospitality industry, has won an order from The Hard Rock Hotel & Casino Las Vegas to supply the company’s rev olution Suite. The software helps managers maximise profits in a venue by calculating what Rainmaker calls ‘Total Customer Value’. This includes not only hotel revenues, but also potential revenue from gaming, food and beverage, spas, and other significant sources of income. The rev olution system also analyses customer demand for services during local holidays or special events and helps managers price those services accordingly. The system should be in place at the property by the third quarter of 2009. “The Hard Rock executive team evaluated many systems before selecting rev olution for its Hard Rock Hotel & Casino Las Vegas,” said Tom Buoy, senior vice president revenue management and distribution for the venue’s parent company Morgans Hotel Group. “The Hard Rock Hotel & Casino is perfectly positioned with its A-list entertainment, multi-faceted gaming floor, and popular food and beverage outlets to make maximum use of the rev olution Suite,” added Tammy Farley, principal of The Rainmaker Group. The Group’s existing gaming industry customers include Wynn Las Vegas, MGM MIRAGE, Trump Entertainment Resorts, and Harrah’s Entertainment. Gaming Support signs deal in Greece Gaming Support, the Netherlands-based supplier of signs and seating to the global gaming industry, has signed an equipment deal with the operator of Regency Casino Mont Parnes in Athens. Under the agreement with Regency Entertainment S.A., Gaming Support will provide all the customised signs needed for the property. “We’re honoured to be awarded this scope of work,” said Nick Hogan, Gaming Support’s Vice President of Sales and Business Development. Gaming Support will provide Regency with some of the latest developments in sign technology, including animatronics. “We’vebeenexceedinglyhappynot onlywith thequalityof goods delivered, but also the competency and dedication demonstrated by CityCenter, Las Vegas Andy Burnham