Inside Asian Gaming

DECEMBER 2018 INSIDE ASIAN GAMING 43 ASIAN GAMING POWER 50 2 0 1 8 Kevin Kelley was handed the key role of Chief Operating Officer for Galaxy Entertainment Group’s Macau operations in 2015, having built a reputation for getting the job done. Three years on and that decision continues to pay off. Galaxy, more than any other Macau gaming operator, continues to show how it’s done – combining iconic resorts boasting a comprehensive array of offerings with the very best service the city has to offer. Kelley’s appointment was a nod to Galaxy’s evolution from a VIP-reliant business to one more mass market-ready and the company is now a dominant player in both sectors. As has become the norm, both sectors saw strong growth in 3Q18 with VIP up 14% year- on-year and mass up 9%. While predictions of a coming downturn promise to impact all Macau concessionaires, Union Gaming analyst Grant Govertsen is particularly bullish on Galaxy, stating in a recent note that “we continue to view Galaxy as the best operator in the market today and Winfried Engelbrecht-Bresges CHIEF EXECUTIVE OFFICER Hong Kong Jockey Club POWER SCORE: 1,271 POSITION LAST YEAR: 15 CLAIMS TO FAME Driving force behind the modernization and revitalization of the HKJC Has helped HKJC become Hong Kong’s biggest employer 17 The Hong Kong Jockey Club (HKJC) continues to soar, setting a new record for turnover in 2017-18 at HK$238 billion – a 9.9% increase on 2016-17 and the second year in a row HKJC reached new heights. Run as a non-profit, the HKJC is the city’s biggest taxpayer and donates millions in surplus revenue each year to charities and community causes. It is also the most successful of any racing club in the world, led by its core horse racing business which saw turnover grow 7.9% last season to HK$124.2 billion. The man behind this incredible success is CEO Winfried Engelbrecht-Bresges. Arriving in 1998 as racing director before taking on the top job nine years later, the former German youth football team player has transformed HKJC from a second-rate, highly introverted organization to one that is the envy of the racing world. Under Engelbrecht-Bresges’s watch, HKJC has invested millions into transforming almost every aspect of the business – from redevelopment of Sha Tin Racecourse under the Racecourse Master Plan to the quality of horses running and extensive customer segmentation work to provide a complete race day experience. The vastly improved product that is Hong Kong racing has subsequently enjoyed an explosion in popularity which has transferred directly to the betting ring – most notably via commingling with a number of lucrative overseas deals signed since HKJC was granted permission to commingle in 2013. The 88-day 2017-18 season culminated in July with turnover for the final day reaching HK$1.94 billion – the highest ever for an 11-race card – and commingling setting another record at HK$335 million. In total, the amount wagered with commingling partners throughout the season soared by 154.8% to HK$16.5 billion, up from HK$6.5 billion in 2016-17. would expect them to notably outperform in the event of a down market, given customer preference for Galaxy product/experience with all other things being equal.” One potential setback facing Galaxy is expected delays to the company’s Phase 3 launch – originally scheduled for 2019 – until mid- 2020. Yet that seems to be only delaying the inevitable for a company with a strong track record of giving the market what it wants. And Kelley is certainly no stranger to high pressure situations. His 40 years of industry experience include previous roles as Senior Vice President of Operations at Las Vegas Sands – where he helped open the Venetian Macao in 2007 – as well as various senior positions with Station Casinos in Nevada. Kelley was handed a difficult assignment given the state of the Macau market at the time of his appointment, but Galaxy boss Francis Lui couldn’t have asked too much more from him in the three years since.