Inside Asian Gaming

INSIDE ASIAN GAMING | April 2012 24 C ompetition for Macau’s high-stakes slot players—those using bet denominations of HK$1 to HKS10 (US$1.29)—appears to be getting more intense.They are an important and profitable group to have as customers. High-stakes slot users account in some casinos for 60% or more of total slot revenue, according to industry sources. That was reflected by the launch, in late March, of The Pavilion High Limit Slots at Galaxy Macau—described by management as a “by-invitation-only” facility. Previously, Galaxy Macau’s high-limit slots area was open to anyone who bet the minimum level required. Whether the introduction of an invitation policy will move the needle in terms of slot revenue growth will show over time. But it’s a common human trait to want tobelong toaclub that bydefinitionexcludes someone else. Galaxy’s move follows the opening in December of a new mass-market high-limit area at the neighbouringVenetian Macao, including a 5,000-square-foot high- limit slot section. All casino marketing all over the world is about segmentation of players and rewarding them in different ways depending on their level of contribution to the bottom line. That’s the science. The “art” part in casino marketing is to package the reward as an experience—and one that’s distinct from the competition. Galaxy Entertainment Group (GEG), the owner and operator of Galaxy Macau, believes it is doing something different for Macau players with its The Pavilion High Limit Slots. This is to give what are effectively premium mass players the level of service they could expect inVIP table gaming rooms. That includes being able to order food from any restaurant in the resort and having it brought to the machine, and having the option of private gaming salons and private relaxation areas. “We live today in the experience economy,” Michael Mecca, President & Chief Operating Officer of GEG told Inside Asian Gaming at the launch event. “It’s not about providing products any more, it’s about providing a great experience for every guest at every tier that they would like to enjoy. “We have 9,000 incredibly enthusiastic team members that each day serve our guests in a very personal, attentive, style. That’s what attracts our guests to us first and foremost—the people of Galaxy Entertainment. “ A popular noodle bar next to the main gaming floor has been sacrificed to make way for the new, private slots section, though Galaxy’smanagement says the noodle house will be coming back—in a different location. The Pavilion High Limit Slots is an extension of Galaxy Macau’s existing premium mass offer. Pavilion High Limit, Pavilion North and Pavilion South are the live table gaming part of Galaxy Macau’s premium mass offer. Slot lovers who are already Gold, Platinum or Black members of Galaxy’s Privilege Rewards Club because of the amount they drop per visit are the sort of people who can expect an invitation to The Pavilion High Limit Slots. “When we look at the database we know there are certain people that are pre- qualified to be Pavilion [slots] members,” says Raymond Yap, Galaxy’s Senior Vice President, International Premium Market Development—a jobdescriptionparticularly focused on mainland China “The [Pavilion] area is segmented by the denomination of the machine. So mostly the machines start at HK$1, HK$5 and HK$10,” adds Mr Yap. These are modest denominations compared to minimum bets on live mass- market table games, which can go as high as HK$300 dollars or more during peak periods. It’s difficult therefore to label high denomination slot players as “VIPs” the overall Macau gaming context. But on modern slot games with 25, 50 or even 100 lines, such multiples add up to high stakes per game. And the pace of electronic game play is much faster than in live dealer games. Some of these premium mass slot players Experience is Everything Galaxy Macau says it’s treating premium mass slot players like the electronic VIPs they really are Actor Michael Tse samples the high life at Galaxy’s The Pavilion High Limit Slots launch Feature