Inside Asian Gaming

September 2014 inside asian gaming 41 Some call Thomas Arasi the Cary Grant of Asian gaming. The veteran hospitality executive is a class act, a good fit for Manila’s Solaire Resort & Casino, the bayfront casino resort a step above anything that market had ever seen. Solaire is the first integrated resort in Entertainment City, the casino cluster Philippine officials hope will put Manila on the regional gaming map. Mr Arasi joined Solaire last October, after owner Enrique Razon terminated its operating agreement with Global Gaming Asset Management, headed by William Weidner, the former Las Vegas Sands president and COO. Ironically, Mr Arasi first made his mark in Asian gaming as CEO of Singapore’s Marina Bay Sands following Mr Weidner’s departure from LVS in the depths of the global financial crisis in 2009. At MBS, Mr Arasi was credited with getting the US$6.5 billion resort opened, no small feat in the wake of the crisis and ensuing near-bankruptcy of LVS. Mr Arasi helped the resort deliver its intended punch as an iconic Singapore landmark. He also delivered on the financial side. In its first full quarter of operations, MBS set company records for adjusted property EBITDA and EBITDA margin. “[W]e are gratified by the overwhelming reception the property has received,” LVS Chairman Sheldon Adelson said at the time. Yet, three months later, Mr Arasi abruptly left. It’s unknown whether he jumped or was pushed as gaming revenue plateaued under the realities of trying to grow VIP business under Singapore’s de facto junket ban. But in barely 18 months, Mr Arasi made a lasting impression. Attending a conference at MBS a year after leaving, staff greeted him warmly everywhere he went. A barista remembered the soy milk in his Thomas Arasi President and COO Solaire Resort & Casino double-shot latte. He also impressed at a recent gaming conference in Tokyo by presenting in Japanese. Since joining Solaire, industry observers say Mr Arasi refocused marketing efforts on junkets and local players and brought cost discipline to all aspects of operations. However, the main mission for Mr Arasi, who is also a director of Solaire parent Bloomberry Resorts, is to deliver on Solaire’s $700 million Phase 1A expansion, which includes a 312-suite tower, luxury shopping mall and theater and is designed to transform Solaire into a genuine integrated resort. Its November debut is likely to follow the opening of City of Dreams Manila, the second of Entertainment City’s four resorts. Mr Arasi welcomes the company. “What is the one thing that is common in integrated resorts, car dealerships and restaurants? They all like to be next to each other,” he told the Philippine Business Mirror . “The integrated resorts business does better when they cluster together.” He envisions Entertainment City growing into one of the world’s leading IR destinations. “After Macau and Las Vegas, you now have us and then Atlantic City. There’s really no critical mass of integrated casinos after that.” He is confident that Solaire can hold its own in its cluster. “I’m of the opinion that when the others open we will still have the premier property in Entertainment City, and that will speak for itself.” A 50% share in any market is pretty impressive, but Kangwon Land goes that one better in South Korea, where it holds 100% of the legal casino gambling market for Koreans. Last year, Kangwon’s monopoly on local players raked in 1,277 billion won (US$1.26 billion) in gaming revenue, up 5.3% from 2012. Choi Hung-jib President and CEO Kangwon Land Inc. But Kangwon Land’s exclusive hold on domestic players expires in 2025, and CEO Choi Hung-jib, who took office in 2011, is in charge of preparing for that day. The company’s stated goal is to have a world- class replacement by 2020, not just to secure its own post-monopoly future but to continue its overriding mission to contribute to the economic revival of Gangwon Province, its host region. Mr Choi’s background in local and regional administration, including a stint as a lieutenant governor of Gangwon, suggests he’ll hold that focus. Gangwon is a former coal mining area shut down as part of a government drive in the late 1980s to close inefficient mining operations. The authorities promised alternative economic plans for these areas, with the big prize of a casino for Korean players to be awarded to the most depressed region. The town of Sabuk