Inside Asian Gaming

inside asian gaming October 2014 14 In Focus Mary Mendoza, managing director of The PLATiNUM, a gaming-focused marketing consultancy, says, “The business units are each important in operating their roles, be it a headcount driver from entertainment, convention, retail and F&B, a revenue booster from gaming, or as a brand advocate for a healthy long-term market credibility from entertainment and retail. Therefore, each business unit supplies a certain value.” She adds that this “is not something new,” noting that it has been used in Las Vegas for more than two decades. In fact, Mr Galaviz calls it the “Las Vegas model,” and says that as a consultant to the Singapore government he advocated its adoption in the Lion City. Singapore’s IRs don’t come close to Las Vegas’ 60% of revenue from non- gaming activities, but then their operating environments are quite distinct. “Financially, in high population/visitor venues with oligopolistic competitive conditions that Marina Bay Sands and Resorts World Sentosa are two very different gaming resorts with one thing in common — they make a whole lot of money away from the games By Muhammad Cohen … In Singapore, You Bet S ingapore’s two megaresorts have turned necessity into virtue, quite profitable virtue. Having to contend with statutory restrictions on casino floor size and gaming marketing and promotion, a virtual ban on junkets and an admissions tax on local residents, Resorts World Sentosa and Marina Bay Sands rely on non-gaming as a key revenue driver. Last year, it exceeded a combined US$1.3 billion, or 24.5% of total revenue. By contrast, Macau’s non-gaming revenue hovers in the mid-single digits. “Singapore’s foray into casino gaming was always driven by a tourism and an economic growth agenda,” Global Market Advisors partner Jonathan Galaviz says. “Casino gaming was a means to an end. In that respect, non-casino revenues were always an interest to the government.” Singapore even coined the term “integrated resort” to represent the type of casino property it wanted. Winning Big Beyond the Casinos The Shoppes at Marina Bay Sands