Inside Asian Gaming

INSIDE ASIAN GAMING | December 2009 12 May – The May Day street protests seen in 2006 are repeated by the long term unemployed—this time with more violence. A policeman draws his service side arm and fires shots in the air. A ricochet hits a passing motorcyclist. The officer is cleared of wrongdoing following an inquiry. Ten people are arrested and 21 police officers reported injured during the demonstration. Crown Macau (now Altira), a US$580 million self-styled, six-star, VIP-focused property, opens on Taipa. Data collated by investment bank Goldman Sachs and CEIC, an economic research company, suggest between 2005 and 2007 GDP in six out of eight major Chinese cities neighbouring Macau has grown annually by at least 10%, and in two cases, more than 19%. Chinese language newspapers report Guangdongprovince, next door toMacau, is starting to ration travel visas to Macau issued under the Individual Visit Scheme. They cite concerns about an overheating market. June – Macau has the potential to become the Las Vegas of Asia, thanks to its large feeder market supported by rising incomes, Deutsche Bank’s Karen Tang tells IAG in an industry forecast. July – “They want to be in a building that makes them feel good about themselves, that makes them feel powerful, that makes them feel their age – i.e., young, but not too trendy.” Paul Steelman, the world’s leading casino designer, tells IAG what it takes to create a successful gaming and entertainment property. Desmond Lam, an assistant professor of marketing at the University of Macau, tells IAG about his studies into the psychology of Chinese gamblers playing table games. “Many Chinese players sincerely believe they can beat the house with their skill and wits, even though they usually also understand the odds of casino games are weighted in favour of the house,” he suggests. Manchester United make their first visit to Macau (and their only visit to China that year) to play in the inaugural VenetianMacaoCup. Unitedbeat Shenzhen of the Chinese Super League 6-0. August – Shortages of suitable local labour and rising prices for raw materials lead to cost blow outs on Macau casino projects. Las Vegas Sands Corp (LVS) says the cost of constructing all its properties on Cotai will increase by 40% to US$12 billion. The US$2.4 billion Venetian Macao- Resort-Hotel opens on Cotai. It has a 546,000 sq. ft gaming floor with 870 tables and 3,400 slots as well as 3,000-room hotel, a major Venice-themed shopping complex and singing gondoliers. The opening ceremony includes an appearance by Taiwan vocal superstar Zhang Hui Mei and Motown singing legend Diana Ross. The 15,000-capacity Venetian Arena (later rebranded as the Cotai™ Arena) instantly becomes one of Asia’s largest indoor concert and sportingvenues. In the opening months, headline events include NBA basketball exhibition games and a match-up of tennis greats Roger Federer and Pete Sampras. Local media report that travel restrictions fromChina intoMacauappear to be easing. September – Harrah’s acquires Macau Orient Golf, a Cotai golf course on 175 acres next to the Lotus Bridge, one of the two border crossings from Mainland China. Harrah’s tells the media it has no plans to try and parlay the site into a casino project. Analysts wonder why, in that case, Harrah’s paidUS$577.7million for the site—a sum significantly above the then going rate for semi-developed land on Cotai. The fee is confirmed in a company filing to the US Securities and Exchange Commission. November – Macau holds its first ever professional poker tournament, organised by the Asia Pacific Poker Tour (APPT) at the GrandWaldo Hotel in Taipa. The main event is so successful (attracting 352 players) that the organisers have to borrow extra tables from the training rooms of neighbouring casinos. Cover Story The casino at Crown Macau The Venetian Macao-Resort-Hotel The Cotai™ Arena