Inside Asian Gaming

INSIDE ASIAN GAMING AUGUST 2018 22 COVER STORY “Star has gone to the direct Southeast Asian marketing concept which is a very sound concept,” he told Inside Asian Gaming . “Going to direct Southeast Asian premium customers was a really smart strategy and they have de-levered their VIP turnover from a lot of the junkets towards more of that direct Southeast Asian idea.” In contrast, Crown’s immediate VIP future – particularly in regards to sourcing high rollers from China – will almost certainly rely more heavily on junkets such as Suncity Group, who run a prominent VIP Club at Crown Melbourne. Carducci also points to Star’s partnership with Chow Tai Fook (CTF) and Far East Consortium (FEC) as a clear sign of intent in the battle for Asian VIPs. Having first come together to jointly bid on Brisbane’s AU$3.5 billion Queen’s Wharf IR Development – a bid they won – Star welcomed the Hong Kong business giants as 4.9% equity partners in March. Both companies are tipped to increase their stake to 9.9% once regulatory hurdles are cleared. “I think Star will continue to see strong VIP numbers, especially given their relationship with Chow Tai Fook and Far East Consortium,” Carducci explains. “The loyalty program they offer has about 6 million people and Star has said it can add another AU$20 million in earnings if they can tap just a small fraction of those members. “The fact that Far East and CTF each own equity in Star is indicative of the fact that here are two of the three wealthiest Chinese families that are absolutely going to pump their members through Star. I think it’s really, really positive for Star in terms of their outlook for VIP turnover in comparison to Crown who are down on one knee.” Crown, of course, holds a big hand of its own in the form of the AU$2.2 billion Crown Sydney development in Barangaroo – barely a stone’s throw from The Star. Due for completion in “The fact that Far East and CTF each own equity in Star is indicative of the fact that here are two of the three wealthiest Chinese families that are absolutely going to pump their members through Star. I think it’s really, really positive for Star in terms of their outlook for VIP turnover.” – Donald Carducci