Inside Asian Gaming

September 2012 | INSIDE ASIAN GAMING 33 Asian Gaming 50 – 2012 30 Lloyd Nathan CEO Asian Coast Development (Canada) Ltd Several people claim they are developing a casino resort in Vietnam. Only one company really is, and that’s Asian Coast Development (Canada) Limited at the Ho Tram Strip. This prime beachside location in southern Vietnam is about 127 kilometers southeast of Ho Chi Minh City and its population of 10 million-12 million—though as the law currently stands, Vietnamese nationals will not be allowed to use the casino facilities unless they hold foreign passports or foreign residency permits. When Lloyd Nathan took over the reins of ACDL in April 2010, he inherited what was essentially an empty piece of beach, with the project having until then suffered difficulties in securing the necessary financing. Two years on, Mr Nathan is close to realizing the first phase of the long- awaited development. That first phase, under the branding of MGMGrand Ho Tram, is due to open in the first quarter of 2013 with a 6,000-square-meter casino with 90 table games, 500 electronic games and a five-star hotel with 541 rooms and suites. The ultimate vision is for five resorts along the 2.2-kilometer coastal strip, bordered by a championship golf course and featuring an array of retail, dining, leisure and conference facilities. Mr Nathan began his career in the gaming industry in 1991 as outside counsel to MGM Grand, MGM Studios and Kirk Kerkorian. He is a former president of Global Gaming Development for MGM Mirage (now MGM Resorts International) and has a successful track record of building gaming businesses in Asia. In addition to MGM, Mr Nathan is bringing another established gaming operator, Las Vegas-based Pinnacle Entertainment, to the Ho Tram Strip. Last year, Pinnacle acquired a 26% equity interest in ACDL for US$95 million. Pinnacle, which has casinos in the US states of Louisiana, Missouri and Indiana and a racetrack in Ohio, will be involved in the development of the second of five resorts planned for Ho Tram. One of the major perceived obstacles to the success of Ho Tram is actually getting visitors there—the widespread perception being that the journey fromHo Chi Minh City can take up to four hours. Mr Nathan stresses that infrastructure improvements are set to bring down the travel time considerably over the coming months and years—possibly to under two hours by road before the Phase 1 opening—while some VIPs will be flown in by helicopter to a landing pad at the resort. Furthermore, should the government decide to permit locals to play at the casino, ACDL would obviously enjoy a tremendous lift to its bottom line. Mr Nathan also stresses that Ho Tram is likely to be the only major opening of a US casino brand in Asia for possibly the next five years, the attractiveness of the planned Entertainment City Manila complex notwithstanding. “The Philippines is obviously a tremendous market, and it has attracted a lot of very able players,” he says. “The issue there for major US brands is the way the Philippines is structured with PAGCOR [the Philippine Amusement and Gaming Corporation] operating and regulating; it is a barrier to entry for a major US brand.” He adds, “If you look at the Asian landscape over the next five years, it is our belief that we are the only opening for a major US brand. And I underline the word ‘opening’. There are plenty of markets out there that are looking to develop their markets and enable casinos to open, but as far as one actually opening with a major US brand over the next five years, we believe we are the only one.” distinction is so important that Paradise has obtained a patent on the technology in Macau, and Mr Chun is relentless in seeing that it’s enforced. He’s had more than one prospective competitor ridden out of town, and he’s gone toe-to-toe with Las Vegas-based rival Shuffle Master in a battle that made for some memorable theater at G2E Asia when customs officers descended on Shuffle Master’s stand and the American Gaming Association got involved, lodging a protest with the government. The bottom line for now is that Paradise still has a lock on live multi-game in Macau and that has freed the company to continue to innovate. Mr Chun, a student of computer science and IT, is constantly looking for ways to improve on LT’s winning formula. “I think every year we will have at least one new version,” he says. “Software also can always be upgraded. It’s in-house software so we can upgrade it all the time. For different jurisdictions, and even in Macau, where different houses have different requirements, we change it for them. We are always customizing software for them.” Gaming generated more than 85% of Paradise Entertainment’s revenues in 2011 (the company also develops biopharmaceuticals, principally inmainland China), and those revenues were up 74% year on year to HK$464.6 million (US$59.6 million). The company also operates Casino Kam Pek as a “satellite” casino of SJM and shares in the casino’s net win. Profit across all segments of the business was HK$39.3 million last year. Paradise plans to parlay its success in Macau into expansion abroad. It has applied for licensing in Singapore and Australia and is looking to partner in the United States as an associate equipment supplier. In recognition of his accomplishments, Mr Chun was honored by The World Federation of Chinese Entrepreneurs Organization last year as one of its “World Outstanding Young Chinese Entrepreneurs”.