Inside Asian Gaming

INSIDE ASIAN GAMING | September 2012 26 Asian Gaming 50 – 2012 22 Gabriel Hunterton Chief Operating Officer StarWorld Hotel and Casino Though Galaxy Entertainment Group’s new flagship, Galaxy Macau, clearly made the largest contribution to the company’s stellar first-half results, the continued robust performance of its erstwhile flagship since 2006, StarWorld Hotel and Casino, perhaps stands out more. Although the property is disadvantaged by a modest plot size—relative to its neighbors, including Wynn Macau and MGM Macau—that limits the range of amenities it can offer, its steadfast commitment to offering high rollers convenience and exemplary service has allowed it to achieve one of the largest rolling chip volumes in the VIP segment. StarWorld punches well above its weight, earning disproportionately large VIP baccarat revenue relative to its size and development cost—HK$3.4 billion (US$436 million). Gabe Hunterton was appointed to head StarWorld in December 2009, with a remit to “develop and refine” the property’s performance, and to prepare it for the impact of the opening of the far-better- appointed US$1.9 billion Galaxy Macau on Cotai and the inevitable migration of some of StarWorld’s players there. Galaxy Macau was unveiled in May 2011, and it’s a credit to Mr Hunterton that StarWorld hasn’t missed a beat since then, recently achieving its 16th consecutive quarter of record EBITDA. Adjusted property EBITDA was up 30% to $1.8 billion in the first half of 2012. StarWorld’s VIP rolling chip volume of HK$339 billion and revenue of $9.9 billion in the period was just a shade off and affirmed on virtually a daily basis. The consensus is Mr Hunterton, backed by one of the best business development teams in the industry, has done a first-rate job on that front. Mr Hunterton quickly proved he had the necessary people skills and managerial experience to fit into GEG’s corporate culture and to keep themarriage between StarWorld and its players and junkets a happy one. If you speak to executives from the junkets, they consistently single out GEG for praise in terms of its support and fairness toward the trade. Not all the Macau operators have been as consistent in their approach to managing their relationships with the junkets as Mr Hunterton, his colleagues and his employers. He also does a good job leading by example and instilling the group’s commitment to treating its customers better than its rivals do in all of StarWorld’s employees. “It’s our service that makes StarWorld Macau stand out in this competitive market, and the most important part of our service delivery is definitely our team members,” he says. Mr Hunterton is a 15-year veteran of the gaming industry in Las Vegas and Macau. Prior to joining GEG he spent three years in senior operational and business development leadership roles with MGM Grand Macau. After graduating from Yale University with a degree in economics, Mr Hunterton began his gaming career as a dealer at Treasure Island in Las Vegas. He quickly advanced to the position of director of slot operations at the neighboring Mirage and then progressed to a national marketing director role at Bellagio. Galaxy Macau’s volume of $358 billion and revenue of $11.4 billion. StarWorld was never intended to be a mass-market property, owing to the limitations placed on its main gaming floor by theproperty’s plot size. Still, theproperty’s mass gaming revenue in the first half of 2012 surged 52% year on year to HK$1.1billion, with the regular shuttle bus service linking StarWorld to Galaxy Macau credited with driving increased visitation. Still, StarWorld remains very much focused on its VIP business, and in Macau that is strongly based on personal relationships. Like a healthy marriage, those relationships with the players, and also the junket investors, junket consolidators, agents and sub-agents that bring in the high rollers from mainland China and beyond, need to be nurtured 23 Cristino Naguiat Chairman and CEO Philippines Amusement and Gaming Corporation Cristino Naguiat took over the Philippines Amusement and Gaming Corporation two years ago in the midst of one of the most troubled periods in the troubled history of the lucrative government-run operator and regulator and by all objective measures he’s performed admirably, restoring operational and administrative stability in the wake of a massive corruption scandal and seeing the first shovels finally hit the ground at the country’s long-awaited Entertainment City resort complex in Manila. In 2011, his first full year in office, PAGCOR’s total revenues were up 16.5%, the overwhelming majority of it generated by its 13 Casino Filipino-branded venues (the agency also franchises bingo and poker outlets and licenses a significant e-gaming industry). In May 2012, the most recent month for which official results are available, the corporation’s gross income rose 22% year on year to P3.71 billion (US$87 million), 64% of it from operations. It was the highest total ever for the month of May—the 11th record month, in fact, under Mr Naguiat’s administration—and it was achieved in the teeth of competition from a significant private sector, led by Resorts World