Inside Asian Gaming

INSIDE ASIAN GAMING | May 2012 38 Feature “We have never really tried to target the high-end VIP business that you’ll find in Singapore andMacau,”saysTimothyMcNally, chairman of NagaCorp. “Consequently, we have never seen ourselves in direct head-to- head competition with these jurisdictions.” Integrity also plays a role. The idea of a casino that startedout onabarge ina country that barely had a functioning government at the time raises all kinds of questions. But all along, NagaCorp has worked to make sure it’s a first-rate best-practices organization. The company has no debt (though that is partly a function of the fact that Cambodia’s sovereign credit rating—’B’, from S&P— makes debt too expensive). It doesn’t offer credit to players. It has been listed since 2006 in a first-tier market, Hong Kong. And it brought on Mr McNally, a 24-year veteran of the FBI and the former executive director of security and corporate legal services at the Hong Kong Jockey Club, in part to make sure the company was up to standard in terms of internal controls and anti-money laundering procedures. NagaCorp remains pragmatic and opportunistic. It will continue to enter markets and pick up customers when and where it makes sense. Vietnam remains key. The company will further develop that market with various packages, promotions and transportation options and with Vietnam-themed attractions and services, such as Saigon Palace (15 tables, 80 slots and Vietnamese-speaking staff). The company now has 10 buses plying the Ho Chi Minh- Phnom Penh route. “They are spending money to cultivate their core audience,” says Mr Beer. The company also has its sights set on Thailand, a market that it has yet to tap (Thai visitors account for less than 1% of NagaWorld’s mass market business), but one that it is keen to exploit. Thailand has almost 70 million people, the highest GDP per capita in the region north of Malaysia, and a good number of rich and very rich. It also borders Cambodia. But because of history and geography, it is not so easy to travel overland between Bangkok and Phnom Penh. The roads are bad, the crossing is hectic and the distance is significant. Naga is about to initiate a Sachi and Sachi-developed marketing campaign in Thailand. It will take advantage of the frequent and relatively cheap flights between the countries. The trip takes 50 minutes and a round trip ticket costs about US$200. And it plans to open an office in Bangkok. Elsewhere in the region, the company will continue to source VIP customers. To that end, it recently acquired a Gulfstream private jet, primarily for flying high-end guests down from China. Some analysts have criticized the company because it hasn’t achieved critical mass and has been slow to develop new facilities. In June last year, NagaCorp responded by announcing a scheme The recently opened NagaRock Lifestyle Casino offers high-energy entertainment, combined with slot machines and higher limit gaming tables