Inside Asian Gaming

DECEMBER 2017 INSIDE ASIAN GAMING 49 ASIAN GAMING POWER 50 2 0 1 7 It’s been a good year for Macau’s junkets. Fresh from reports – usually from foreign media outlets with little or no on-the-ground experience – that VIP gaming was on its deathbed, the industry has instead surged in 2017 with revenue up by double digits for the past 12 months and a peak of 36% in October. Leading the charge have been none other than Macau’s “Big 3” junkets – Suncity, Rich Goldman (formerly Neptune Group) and of course Tak Chun, who have wasted no time in seizing the opportunity by increasing their market share. Tak Chun boss Levo Chan has been the driving force behind his group’s strategy in this regard, noting the company had decided to ramp up operations rather than winding them down when the squeeze came. “Take the current situation of Macau’s gaming industry as an example,” he said in an interview with IAG CEO Andrew W Scott in 2016. “Macau’s gaming industry has now declined compared with a few years ago. Faced with this dilemma, many VIP Clubs chose to reduce business to remain in operation but Tak Chun hasn’t reduced its business, instead we have set up new VIP Clubs in Altira and Galaxy Phase 2 – constantly expanding our offering.” Tak Chun has done so by following the obvious flow to Cotai with new rooms set up at the Parisian and Wynn Palace. And it isn’t slowing down anytime soon with the group telling IAG it will launch another three junket rooms at Macau IRs in the coming months, starting in December 2017. George Tanasijevich PRESIDENT AND CEO Marina Bay Sands MANAGING DIRECTOR – GLOBAL DEVELOPMENT Las Vegas Sands Corp POWER 1,028 LAST 22 SCORE YEAR CLAIMS TO FAME Runs iconic integrated resort envied worldwide Delivers biggest profits of any standalone property in Asia Leads LVS efforts to expand in Asia and beyond 24 MBS profits are even more spectacular as Singapore tourism rebounds. After a record Adjusted EBITDA of US$492 million in the second quarter, the IR posted US$442 million in the third quarter. Margins rose to 55.7% and 26% of revenue came from non-gaming. Unlike Macau, where significant MICE development remains a distant dream, the convention business booms at MBS, supporting hotel occupancy near 96% and average daily rates of US$445. In his corporate role as Managing Director of Global Development, Mr Tanasijevich leads LVS initiatives for a Japan IR. He made a bold decision at the Japan Gaming Congress in May to focus entirely on problem gambling, rather than tout LVS attributes, winning local praise. In Japan, South Korea, Thailand and Vietnam, LVS craves IRs on its terms: location in a business and financial hub with a major international airport, “reasonable” investment and development requirements plus casino access for local players. “We are pleased to have established Marina Bay Sands as a reference site for other cities and countries that are considering harnessing the economic power and direct contributions to tourism, employment and GDP growth of our unique convention-based integrated resort business model,” Las Vegas Sands founder Sheldon Adelson says. His man in Singapore, George Tanasijevich, deserves much of the credit for making MBS great. Mr Tanasijevich joined LVS in 2004 towork on its Cotai development. When Singapore began its casino legalization process the following year, his experience as an executive with government-linked CapitaLand, Southeast Asia’s largest property developer, made him perfect to spearhead the effort. In the wake of Sands Macao’s success, LVS won the extraordinarily competitive beauty contest for the license at Marina Bay. MBS, its triple towers linked by a 12,400 square meter (three acre) SkyPark with breathtaking views and renowned infinity pool, symbolizes modern Singapore and is an urban wonder of the world.