IAG DECEMBER 2016 WEB - page 6

Cover Story
s thesayinggoes, “Withgreat riskcomesgreat reward.”
Yet rarely are the extremes sodisparate as in the casino
gaming industry.
Fourteen years after the liberalization of theMacau
gaming industry, Caesars Entertainment Corp. is still
paying the price for failing to secure one of the six Macau licenses
being offered at the time, while the likes of Sands and Wynn have
spentmost of those years laughing all theway to the bank.
Macau’s incredible success, which saw gross gaming revenue
rise fromUS$3.6billion in 2003 tomore thanUS$45 billion 10 years
later, has resulted inoperators fromaround theworld–botholdand
new – looking for Asia’s next emergingmarket in thehopeof finding
their owngoldengoose.
But for all the upside should they succeed, entering new and
largely untestedmarkets canbe fraught withdanger.
“If you’re a company that really looks towards emerging
markets or frontier markets it is very different to an established
market likeSingapore,Macauor LasVegas,” explains TimMcNally,
Chairman of NagaCorp, which opened Cambodia’s only integrated
TheMacau success storyhas
seenoperators turn their
focus toAsia’s emerging
markets in searchof their
owngoldenmoment. But
withuntestedwaters come
Thepros and cons of emergingmarkets
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