Inside Asian Gaming

February 2015 inside asian gaming 27 Cover Story The world’s most profitable casino resort is likely Marina Bay Sands, also the world’s most expensive at US$5.7 billion. For the first nine months of 2014, MBS reported EBITDA of $1.2 billion on $2.38 billion revenue, a 50.7% margin, believed to be the highest in the industry. releasing aggregate property visitor numbers in 2012, when its daily visitors reached 44,000. RWS is not connected to the MRT, but reached via monorail or moving walkway from the closest MRT stop, or by taxi or car. “That’s a real restriction on Genting,” says veteran Southeast Asia gaming executive Michael Gore. “They can’t even fight Sands head-to-head.” Genting lobbied unsuccessfully for an MRT extension to Sentosa, adds Mr Gore, who worked on the company’s Singapore license application. PROTECT AND GROW When Singapore lawmakers approved the IR experiment in 2005, Prime Minister Lee Hsien Loong told Parliament the city-state had to protect and grow its tourism industry. The two big needs were MICE facilities and an “anchor attraction” for Sentosa. MICE was the focus of Las Vegas Sands’ then-President and Chief Operating Officer William Weidner’s bid presentation to Singapore authorities. “He said we’re going to bring MICE, and we’re going to bring it hard, and here’s what we’ve done in Vegas with MICE at our other properties,” according to a witness to the presentation who requested anonymity, who adds, “Weidner could sell ice to Eskimos.” MBS includes a 120,000-square-meter convention center, among the region’s largest. “Our MICE business continues to thrive and closed the year with over 2,500 events held,” MBS President and CEO George Tanasijevich says. “We are not deviating from the original concept of a MICE-led IR, and this plan remains as our pillar.” RWS also does MICE, often featuring its attractions as venues. Despite high hotel and other costs, Singapore’s air connectivity, safety and widespread use of English and Chinese, make it a favorite of event organizers. MICE isn’t a huge money spinner for MBS, accounting for 3% of third-quarter revenue at $23.9 million, but it supports more lucrative hotel, F&B, casino and shopping mall operations. Universal Studios and other attractions perform a similar function for RWS, but with key differences. The theme park is believed to run at a deficit. More importantly, RWS has fewer hotel rooms than MBS, about 1,600 versus 2,561, with lower occupancy, 95% versus 99%, and a lower average daily rate, $309 versus $468, for the third quarter.