Inside Asian Gaming

November 2017 inside asian gaming 23 recent events and the reasons for such change are unclear. Is the government being pressured by local players hoping to ride the incoming concession renewal wave? Or is the apparent lifting of the moratorium grounded in an underlying change of policy? The first possibility would represent an unwarranted assault on the government’s ability to uphold its own policies. It could damage its credibility and hijack the discussions on concession renewals before they even start. I do not believe this is the case. On the other hand, the idea that we are facing a soft lifting of the moratorium would bring the glimpse of opportunity to many. Because it allows the restructuring and consolidation of the satellite tangle of interests, it would also add fuel to the theory that there could be a future seventh concessionaire – one that could aggregate the interests of the owners of these properties into a standalone operator. But how would such a strategy contribute to the goal of creating an international tourism destination? How would it help achieve the Macau dream? Let’s face facts. With a couple of honorable exceptions – such as Ponte 16 and the Fisherman’s Wharf complex – these properties offer pretty much nothing in the form of non-gaming attractions. They require incomparably less investment than a Cotai IR and add little value to the city’s tourism supply. While concession holders are expected to invest billions of dollars to build and maintain flagship properties, most satellite casinos get by without putting in much effort at all. This ultimately affects the market’s bottom line and the return on investment of quality integrated resorts. Furthermore, because smaller operations are more reliant on a fewer number of players, they are naturally more prone to looking the other way. This may instigate a greater propensity for money laundering, corruption or problem gambling – all top-of-the-list issues that the government and concessionaries have listed as of “Let’s face facts. With a couple of honorable exceptions – such as Ponte 16 and the Fisherman’s Wharf complex – these properties offer pretty much nothing in the form of non- gaming attractions.” great importance. Unfortunately, it does not take a lot to erode a hard-earned reputation. This brings us to one key question: are small, low-cost casinos what Macau really needs? We all understand that Macau is limited in the ways it can positively influence tourist demand across the border. However, it may – and should – positively influence its offer at home too. In my opinion, that means one thing only: less quantity and more quality. But I’m sure someone out there disagrees. Rules of the game Ponte 16 is one of the few Macau satellite casinos to offer genuine non-gaming attractions