Inside Asian Gaming

October 2017 inside asian gaming 21 “On the addiction side, I think the Japanese misunderstand gaming addiction behaviors. They’ve talked about the current state of addiction in Japan as quite high … yet they’ve never funded any programs to address gaming addiction.” MC: Is Japan’s lack of public support for integrated resorts a cause for concern? ST: It doesn’t cause me concern because so much of it is misunderstandings because the Japanese have never been exposed to the integrated resort industry today, so all they have to go by is what they’ve read about or what they’ve seen in the movies. From an industry perspective, our obligation is to help educate the public with enough independent research and facts that help them get their head around the opportunities and the implications of the industry and how best to manage the introduction of integrated resorts into Japan. We are committed to this education process and I am very optimistic that as the process progresses, we will gain additional support. When Prime Minister Abe visited Washington DC, a number of us met with him and offered our support, and he basically asked us to do exactly that: to help educate the public. We’ve done so in a recent symposium on responsible gaming that was held with the US and Japan Business Councils. I think ultimately the government is committed to integrated resorts as an economic engine for Japan and they are extremely sensitive to minimizing any social cost associated with the industry. I have full faith in the government to manage the process judiciously and diligently, as they have so far, and I’m convinced that they will be successful in demonstrating to the public that there’s nothing to be feared and tremendous benefits to be gained. INSIGHTS MC: What about Caesars’ finances? Does it have the financial ability and stability to be part of a multibillion dollar IR project in Japan or anywhere else? ST: The restructuring of Caesars Entertainment Operating Company will be completed in the first week of October. The operating performance of the business has been far greater than many peers and continues to be quite strong. With the restructuring complete, our leverage is well within the type of ranges in our industry and we think we will have as we exit one of the strongest balance sheets of any of the major players. The completion of the restructuring will give Caesars the ability to invest more freely in growth opportunities. MC: How does Caesars’ recent hiring of former Hard Rock International Chief Development Officer Marco Rocas as President for Global Development impact your role and Caesars’ global profile? ST: It doesn’t change my role at all. I think it reflects the company’s commitment to global expansion as we emerge from restructuring. In addition to domestic and international IR development, Marco will be looking at opportunities to expand Caesars’ brands into non-gaming hospitality. MC: Let’s look at some other markets in Asia. Is Caesars watching developments in Vietnam? ST: We have been for the last five or six years. If the market ever opens to locals – as you know now they are opening this pilot program [for local play in selected locations] – then yes, we are interested in Vietnam. Yes, we continue to monitor developments there. We will be interested to see how the locals’ pilot program evolves and how that impacts the availability of new licenses where locals might be able to play. It’s just now starting to come together and there will be more clarity over time, but it’s certainly on our radar screen.