Inside Asian Gaming

INSIDE ASIAN GAMING | August 2010 6 Cover Story S lot machines’ share of Macau gross gaming revenue slipped back in the first half of 2010 compared to the first half of 2009. But that probably says more about the explosive growth in table play this year than it does about slots’ ongoing appeal. In the first half of 2010, 4.6% of Macau’s gaming gross came from slots (3.98 billion patacas out of 85.9 billion patacas for all games of fortune) according to figures released at the beginning of August by the Gaming Inspection and Coordination Bureau, Macau’s gaming regulator. In the first sixmonths of 2009, slots’overall contribution was nearly 6% (3.1 billion patacas out of 51.4 billion patacas). In cash terms, however, the slot take for the first half of 2010 was up 29.6% on the equivalent period in 2009. Yet during that period, the number of slot machines went up by only 8.5% (from 13,509 at the end of the second quarter of 2009 to 14,659 units at the end of the second quarter of 2010). Some of that jump in the gross may be accounted for by a small number of VIP slot players who now drop the equivalent of a million US dollars or more in a single session. Five years ago, the managements would lay out the red carpet for a slot aficionado spending US$5,000 in one go. Away from the headlines created by Macau’s small number of slot ‘whales’, much of the effort of slot managers is going into unlocking the full economic value of more modest players. That focuses initially on gettingasmany of themsignedup for carded slot play as possible so that they can start earning benefits on their entertainment. Increasing carded play should also help create word of mouth publicity as people see what benefits and prizes their friends and neighbours have been able to get from their visits. Carded play also allows operators to market major events to players such as new jackpots. At the end of July, City of Dreams launched what it describes as ‘Macau’s Biggest Floorwide Jackpot’, with the top prize starting at HK$3 million (US$386,314). The stereotype of Chinese slot players as relatively unsophisticated consumers shy of signing up for anything that might mark them down as a gambler lags well behind what’s actually happening on many gaming floors in Macau, say the experts. At this year’s G2E Asia organised by Reed Exhibitions and the American Gaming Association, delegates had a chance to hear some of those senior slot executives give their take on this developing segment. A Growing Game: Slot Operators’ Roundtable , was moderated by Marcus Prater, Executive Director of the industry’s leading trade body, the Association of Gaming Equipment Manufacturers. The speakerswere: DarrinCarlson, SlotManager– Operations, at Sands China’s The Plaza Macao; Matt Hurst, Vice President, Gaming Machines, at Melco Crown Entertainment’s City of Dreams; Peter Johns, Director of Slot Operations, MGM Macau (formerly MGM Grand Macau); and Lindsay Stewart, Vice President, Electronic Gaming, Sociedade de Jogos de Macau (SJM). Marcus Prater: What’s happening with carded play in Macau? Darrin Carlson: Generally speaking, the higher net worth individuals are going more towards cards and are extremely card loyal. The lower end mass has not picked that up quite as much. Peter Johns: We’ve seen an amazingpick upon cardedplay. Most operators areused to 30% to 50% take up.We’re seeing a lot higher than that. Our players’ club [membership]; our rated play, is extremely high. We see a A Growing Game Harvesting value from Macau’s rising slot sector depends on player sign ups