Inside Asian Gaming

July 2016 inside asian gaming 21 In Focus a business plan [that is] based on them make sense,” Global Market Advisors Managing Partner Steve Gallaway says. “For Asia operators, Europe isn’t for Asian customers. It’s about identifying new players, diversifying holdings and markets.” NOBODY HOME Asian casino companies’ interest in the wider world is being driven at least in part by a lack of profitable prospects close to home. “Look at Asia: where you do expand?” Spectrum Asia CEO Paul Bromberg asks. “Right now, with the anti-corruption campaign in China affecting VIP play around the region, there are no really good opportunities for the major operators in Asia.” Global Betting and Gaming Consultancy (GBGC) CEO Warwick Bartlett says Asian casino companies are looking at Europe “by default” rather than by choice. GBGC’s new report, The European and Asian Casino Sectors, indicates Asia’s share of the global casino market shrank by 8.4 percentage points last year to 30.2% due to Macau’s US$15 billion decline in gross gaming revenue to US$28.9 billion. Rather than buck the trend, no fewer than a half-dozen Asian casino operators own or hope to acquire European casinos. Genting Group, through its Malaysian arm, Genting Berhad, took over Stanley Leisure in 2006 with 41 casinos across the UK, five of them in London including Crockford’s, the world’s oldest private gaming club in the British capital’s Mayfair hub. Last October, Genting UK opened a 42nd gaming property, Resorts World Birmingham, billed as Europe’s first IR. The £150 million resort with 31 gaming tables, over 100 slot machines, a 147 room hotel, 11 screen Cineplex and retail mall, adjacent to the 16,000 seat Genting Arena, is big for Europe but rather puny by Asian standards and has drawn mixed reviews. In its 2016 first quarter report, Genting Berhad says that in the UK it will “focus on stabilizing the operations at Resorts World Birmingham and grow[ing] the business.” The reports adds, “With respect to the [UK] premium players business, the Group remains cautious of its volatility and continues to introduce additional strategies to reposition this part of the business.” FUSION Lawrence Ho’s Melco International, majority owner of Melco Crown, aims to engage Europe at two ends of the Mediterranean Sea – Spain and Cyprus. “To capture the opportunities in Europe, we are striving to replicate our success stories in [Asia], leveraging our distinctive experience and proven track record in creating the most spectacular integrated resorts in Asia,” Melco said in response to questions from Inside Asian Gaming . “We wish to introduce world-class gaming and non-gaming entertainment experiences to Europe by offering a perfect blend of Asian and European cultures.” Melco is an approved bidder for what could become Europe’s first US$1 billion-plus IR project, on the Spanish coast near Barcelona. At the east end of the Mediterranean, Melco is one of three finalists to create what would be Europe’s largest casino resort to date on Cyprus. They have partnered with Hard Rock International, which has a hotel at Melco Crown’s Macau flagship City of Dreams. Philippine billionaire Enrique Razon Jr’s Bloomberry Resorts and Hong Kong listed Phnom Penh casino operator NagaCorp are the other Cyprus contenders. Bids were due at the beginning of this month, but have been delayed until October with a decision expected before the end of the year. Last July, Macau’s Galaxy Entertainment Group took a 5% stake in Société des Bains de Mer et du Cercle des Étrangers à Monaco, SBM for short, which operates the iconic casinos in Monte Carlo as well as hotel and other tourist facilities in the principality. “Chinese tourists come to Europe to broaden their horizons, enabled by rising incomes at home. Asian casino operators also come to Europe to broaden their horizons, but they’re driven by falling incomes at home.” Global Betting and Gaming Consultancy CEO Warwick Bartlett says Asian casino companies are looking at Europe by default