Inside Asian Gaming

JUNE 2018 INSIDE ASIAN GAMING 33 Amid Macau’s massive gaming revenue numbers, it’s easy to miss that the “Las Vegasization” of its IRs is underway: non-gaming revenue is approaching the nominal amounts seen in Las Vegas. IN FOCUS the Integrated Resort” to the International Association of Gaming Advisors (IAGA) Gaming Summit, held in Macau last month in conjunction with G2E Asia. Las Vegas and Macau served as primary examples in the presentation and the talk carries significance for Japan, where legislators continue to wrestle with IR legalization amid strong public opposition. IRs have been one major factor in the transformation of gambling enclaves from “outposts for outcasts” to powerful, multifaceted tourismmagnets, Bernhard says. An unsung player in the narrative has been government. While in many instances government intervention tends to stifle business growth, the efforts of authorities to remove criminal elements from Las Vegas and to introduce competition to Macau – each a bold decision that upended a successful formula – set the stage for IRs. Macau doubled down on competition when it added three sub-concessions to the original three concessions, in effect allowing six casino operators. NON-FATAL KILLER APP These changes have taken place as tourism has come to represent more than 10% of the global economy, Bernhard estimates. The world’s most expensive private buildings, integrated resorts, have proven to be a killer app when it comes to tourism, research shows. Some see that killer app as potentially fatal to existing tourist economies, a view not necessarily supported by evidence. “The vast majority of studies pre- and post-casino IR openings suggest that cannibalization – simply moving revenues from existing restaurants, retail and so on to the IR – does not happen,” Bernhard says in response to questions from Inside Asian Gaming . “In fact, given the increased inbound tourism that large-scale IRs see, there IRs have been proven to drive increased tourism in places like Macau.