Inside Asian Gaming

INSIDE ASIAN GAMING | August 2010 34 27 (-) Andrew MacDonald Executive Vice President, Casino Marina Bay Sands Pte Ltd When presented with what he described as a “once-in-a-lifetime opportunity” to run gaming operations at what looks likely to become one of the world’s highest grossing casinos, Andrew MacDonald felt compelled to leave his post as co-head of gaming at Australian investment bank Macquarie Capital in New York and move to Singapore to join Marina Bay Sands in December, 2009. Singapore’s nascent casino sector is off to a flying start. According to the Wall Street Journal , if the casino gaming revenue figures reported by Singapore’s two integrated resort (IR) operators until the end of the second quarter are annualised, the city-state is on track to have a US$4 billion casino market this year. That easily exceeds analysts’ initial forecasts of around US$3 billion. With both IRs yet to fully open their planned amenities—including the shopping mall at MBS and the Universal Studios theme park at Resorts World Sentosa (RWS)—the number of visitors to the IRs (and hence casino revenue) is set to increase further over the coming months. Casino capacity at both properties is also still ramping up. Investment banks CLSA Asia-Pacific Markets and Goldman Sachs both estimate Singapore casino revenues will grow to around US$5 billion in 2011. Although Macau casino revenue is forecast to be around five times greater in the corresponding period, the proceeds in Macau will be split among six operators over 33 properties (with further new properties slated to open over the next few years), while the Singapore government has vowed not to issue any further casino licenses until at least 2015. The prevailing consensus among analysts is that MBS will emerge as Singapore’s gaming market share leader, with its high-end retail and dining offerings and prime downtown location more likely to appeal to high rollers than the more family-friendly proposition offered by RWS, situated on the resort island of Sentosa. For now, the RWS casino appears to be holding on to the lead in terms of daily win. It’s early days yet, however, and RWS had a two-month head start on MBS—the former opened its casino on 14th February 2010, while the latter was still experiencing teething troubles after its partial 27th April 2010 opening. MBS is also still acquainting itself with the Singaporemarket, whileRWSbenefits from long-standing relationships with local high rollers established by its parent company, Genting, which operates the monopoly casino in neighbouring Malaysia. If the recent Macau experience is any guide, Asian high rollers can be fickle, with customer loyalty shifting to casinos offering better value and service. The coming months will be a test of Mr MacDonald’s accumulated knowledge and experience in the strategic planning, marketing, development and operation of casinos, as he works to establish MBS as Singapore’s casinomarket leader. At MBS, Mr MacDonald is responsible for both the casino’s operations and international marketing teams, with emphasis on the running of the Paiza Club for premiumplayers. As the property hits its stride under Mr MacDonald’s leadership, it is conceivable that it could become Asia’s—and the world’s—top casino earner. That’s especially if profitability, rather than revenue, is the measure, since Singapore casinos are faced with significantly lower tax ongross gaming revenue anddo not pay hefty commissions to junket operators. While junkets continue to supply the bulk of Macau’s casino revenue by controlling the flow of mainland Chinese VIPs, they have been effectively barred from Singapore by the stringent probity requirements of the Casino Regulatory Authority (CRA). Mr MacDonald has over three decades of gaming industry experience, from humble beginnings in 1978 as a dealer at Australia’s first casino in Tasmania, Australia to assuming the role of Executive Vice President – Gaming at Genting in 2007. In the intervening period, he held key positions with the Adelaide Casino, Jupiters Casino and with the Packer organization – where he worked directly with James and Kerry Packer. Mr MacDonald has alsoworked as a regulator in bothQueensland and New SouthWales in Australia. This will no doubt hold him in good stead in his dealings with Singapore’s CRA. Recognised as a leading strategist in casino management and utilisation as well as being an accomplished mathematician, he has written numerous articles on the gaming industry. He also founded the website, Urbino. net, which features columns from leading gaming consultants and industry experts. For the past 10 years he was also co-moderator of the annual Executive Development Program conducted by the University of Nevada – Reno. This intense nine day program is widely acknowledged as the premier educational program for mid and senior level casino executives globally which has led MacDonald to be known as an important educator andmentor in his field. 28 (-) Ken Jolly Senior Gaming Executive and Consultant After seven years based out of Macau, covering the largest gaming market by revenue in the world, and with a wealth of previous international market experience behind him, Ken Jolly can fairly lay claim to the title of gaming expert. He is currently interim General Manager in Asia Pacific for Las Vegas-based gaming equipment supplier Shuffle Master. His focus there is to build further the company’s sales in the region. His enthusiasm for gaming, his contacts and in-depth knowledge of the region’s markets and operators have proven to be an invaluable resource over the course of his career. That career started more than 32 years ago in New South Wales, Australia. It has covered technical, sales, fiscal control and senior management roles. During the past 17 years his international postings have included acting as a general manager in New Zealand, as a vice president of sales, service and marketing in The Americas (North America, South America and Canada), a general manager of sales and marketing in Europe and as a general manager in Asia Pacific. Mr Jolly has also served as the executive vice president and general manager of a global Japanese gaming manufacturer with responsibility for Australia, Asia, Europe and Africa.