Inside Asian Gaming

INSIDE ASIAN GAMING | October 2012 18 In Focus W hile so much has been written and studied about the massive investment in resort development that is transforming Macau from a Cantonese gambling enclave into a multifaceted leisure destination for all of China and beyond, so little is known publicly about the junket operators and VIP room promoters that drive the growth behind this largest and most unique of the world’s casino markets. What we get instead—journalism,likeNature,abhorring a vacuum—generally is ill-informed or surmised, a lot of it simply imagined; and, not surprisingly, what we think we know about the junkets and their operations is almost always negative, which not only does them a disservice, it gets in the way of our understanding of this amazing evolutionary tale and of the vital role the junkets have played, and continue to play, in moving it forward. Fortunately, this is changing, and it’s changing because of companies like Neptune Group. Under CEO Nicholas J. Niglio, publicly traded Neptune, the largest junket player listed on the Hong Kong Stock Exchange (0070.HK ), has been in the forefront of a business model that is evolving side by side with Macau. It’s a diverse, financially sophisticated, highly Business Not as Usual Neptune Group’s Nicholas Niglio on Macau, the state of the high end, and a new junket model for the market Neptune Group recently concluded memoranda of understanding that will add 64 tables at Grand Lisboa, Wynn Macau and MGM Grand to its existing investments in rooms at StarWorld, The Venetian and Sands Macao. These agreements will more than double its portfolio of tables and triple the total rolling chip turnover in which it shares to about HK$45 billion a month.