Inside Asian Gaming

INSIDE ASIAN GAMING | September 2010 38 Mr Yeung has had a busy 12 months since the 2009 edition of the Asian Gaming 50 . He made world headlines for his successful (and extremely inflated) bid for the white rhinestone covered glove worn by the late singer Michael Jackson when the latter debuted his signature moonwalk move in 1983 as he performed the hit single ‘Billie Jean.’ The glove is now displayed along with other Michael Jackson memorabilia collected by Mr Yeung at Ponte 16, a Macau casino resort in which Mr Yeung’s company Success Universe Group is a 50:50 joint venture partner with Dr Stanley Ho’s SJM. Mr Yeung’s formative gaming industry experience was as a VIP room operator at Dr Ho’s Casino Lisboa. The relationship forged during that time paid dividends when he was able to broker the investment deal for Ponte 16, where the gaming rooms also operate under an SJM gaming licence. Ponte 16 has attracted plenty of mass market players from the neighbouring mainland Chinese city of Zhuhai, but Under the leadership of Han Chang-Woo, Maruhan Corp has diversified from its core operation as a Japanese pachinko parlour operator and now has a range of investments, including an indirect stake in a Macau casino gaming resort. The latter is via Maruhan’s 18% stake in Success Universe Group, a joint partner with Dr Stanley Ho’s SJM in the Ponte 16 casino resort at Macau’s historic Inner Harbour. Maruhan is likely within three years to have indirect investment exposure to a second Macau casino has struggled for market visibility and distinctiveness in an increasingly crowded Macau casino industry. The proposition on which Ponte 16 was built—that it is the nearest casino to Macau’s historic and UNESCO World Heritage-listed old town— in practice seemed to give it little market advantage. Few of the tourists coming to see the old town seem to be especially interested in casino gambling, and few of the tourists who come for casino gambling seem especially interested in looking at colonial era churches, squares and theatres. As a result, Ponte 16’s accompanying hotel, under the Sofitel brand, initially struggled for market share among Macau’s overnight visitors, though is nowperforming well. Downstairs, the mass market casino floor at Ponte 16 is packing in local players from Macau and neighbouring Zhuhai in China—the property is accessible from Zhuhai either directly via a five-minute ferry ride across the Inner Harbour, or a short bus ride from the Gongbei land border. But Ponte 16 continues to be under represented in the vital VIP market that provides the majority of Macau’s gaming revenues. Only around 10 of its 100 tables are for high rollers. Ponte 16 had a very modest capex by modern Macau standards—HK$2.4 36 (22) Han Chang-Woo Chairman and CEO Maruhan Corp 37 (37) Sonny Yeung Hoi-sing Chairman Success Universe Group Ltd on Cotai. That’s if, as expected, the six-star hotel in the One Oasis residential project goes ahead. Success Universe Group is one of the partners in the One Oasis consortium. Despite some analysts suggesting the appeal of pachinko is diminishing among the younger generation of Japanese, Maruhan actually increased its coverage of the domestic market in the past 12 months, adding 14 new pachinko parlours to its inventory, taking the total to 258 as of the fiscal year ending 31st March. It also owns 13 other leisure centres, including bowling alleys, and employs 12,899 people—a 3% increase on 2009. The corporation also owns a bank— Maruhan JapanBank Plc—licensed for commercial bankingoperations in Cambodia. Maruhan Corp recorded ¥55.4 billion (US$650 million) profit on sales of ¥2.12 trillion (US$2 billion) in the fiscal year to March. Maruhan, a mature business set up in 1953 and incorporated in 1957, might also seek to diversify in its home market by investing in domestic casino gaming if legalisation of the industry ever goes ahead in Japan. billion (US$310 million at current exchange rates)—but has also been a sluggish earner by Macau standards, continuing to post significant operating losses nearly two and a half years later. As of 25th June this year, Success Universe Group had outstanding shareholder loans to Ponte 16 of HK$825.9 million (US$106.3 million), according to a filing made to Hong Kong Exchanges and Clearing Limited. Success Universe Group Ltd (formerly Macau Success) also runs a casino cruise ship, the M.V. Macau Success, out of Tsim Sha Tsui in Hong Kong. Asian Gaming 50 – 2010 page 48 of this issue, “WMS’ focus on ‘Player Driven Innovation™’ has demonstrated that regardless of region, players respond similarly to innovative play features and content that provides them with the best entertainment experience.” WMS games offer unparalleled entertainment value, with high definition video effects and immersive sound. Last year,WMS introduced its Bluebird 2 cabinet to the Asian market, where it has gained popularity and generated increased floor share. At the newly inaugurated Singapore casino market, WMS secured healthy shares of the gaming floors at Resorts World Sentosa and Marina Bay Sands. The elegant Bluebird 2 is well suited to the ‘entertainment player,’ boasting Bose® speakers and dual 22” wide-screen high- definition displays. Rather than waiting for the market to align itself to its entertainment-focused product offering, WMS has proactively adapted a portion of its game portfolio to cater to Asian players’ preference for more highly volatile games, says Mr Salat. Sebastian Salat joined WMS in January 2000 and serves as President of WMS International, overseeing international sales and operations and helping increase the company’s share in markets around the globe. He has twenty-six years experience in the gaming industry and previously served for 16 years as managing director of one of the largest slot machine manufacturers in Europe with worldwide responsibilities.