Inside Asian Gaming

INSIDE ASIAN GAMING AUGUST 2018 28 FEATURE IN FOCUS WE GOT THIS, MOSTLY In a May interview at the Japan Gaming Congress, which IPI attended to market to Japanese customers and explore Japan IR partnership opportunities, Senior Vice President, Operations Control and Improvement Lu Tsai said a US licensed contractor had taken over the hotel project, was in compliance with US law and had “over 1,000” construction workers on site. “Funding is absolutely not an issue,” Lu, a former executive with Macau junket Meg-Star, Melco Crown, Galaxy Entertainment and Vietnam’s The Grand Ho Tram Strip, said. Other sources say IPI still aims to raise funds for the hotel, initially projected to cost US$600 million. There’s no updated cost estimate. “This project has been difficult but no different than other gaming projects in unique locations,” Imperial Pacific Saipan’s architect and designer Paul Steelman says. He emphasizes, “This is a first-time casino developer looking for perfection. As we all know, this can be difficult.” What seemingly remains easy are huge VIP rolls, juiced by the move to the larger casino. Overall gross gaming revenue grew 75% last year to HK$13.1 billion (US$1.7 billion). VIP revenue grew 79% to HK$12.7 billion on roll of HK$385.9 billion, as the average VIP table count grew to 23 from 16 at the temporary casino. That’s average daily roll per table of HK$46 million and daily win of HK$1.5 million. For comparison, Wynn Macau’s casino in the heart of the Macau peninsula reported average daily roll per table of HK$13 million and daily win of HK$426,380. DO IT YOURSELF IPI’s revenue comes without junkets promoters. The Casino Commission is reportedly considering applications from multiple junkets to do business in CNMI but none have been approved to date. IPI filings show commission payments of HK$5 billion, equal to 1.3% of VIP roll. That beats Macau’s 1.25% limit and is especially attractive if it’s going directly to the VIP rather than being split with a promoter. In place of junkets, IPI relies on executives’ roots in the Macau junket industry, most notably Executive Director Cai Lingli, once the listed owner of junket Heng Sheng’s Macau branch, and Project Director Ji Xiaobo, a former Heng Sheng executive, Cai’s At the Casino Commission’s June meeting, IPI Vice President for Construction Eric Poon said IPI hopes to have the hotel completed “by the end of the year,” though sources tell Inside AsianGaming completion could take 18 months.