Inside Asian Gaming

INSIDE ASIAN GAMING DECEMBER 2018 50 George Tanasijevich PRESIDENT AND CEO Marina Bay Sands MANAGING DIRECTOR – GLOBAL DEVELOPMENT Las Vegas Sands POWER SCORE: 1,051 POSITION LAST YEAR: 24 CLAIMS TO FAME Helms the world’s most profitable integrated resort, an icon envied worldwide Leads LVS expansion efforts in Japan 26 now being converted to a nightclub – account for 30% of revenue. Superimposing those facts and figures over a slide of MBS dramatically transforming downtown Singapore helps Tanasijevich in his role as LVS global development director. Adding that MBS does it all without junket promoters plays particularly well in Japan. It’s impossible to ignore Marina Bay Sands with its triple towers linked by an observation deck, infinity pool and celebrity chef dining 55 stories above downtown Singapore. But it’s just as easy to overlook its remarkable success. The Las Vegas Sands integrated resort is on track this year to deliver US$1.8 billion in EBITDA at a 56.7% margin. No other IR produces comparable numbers. Credit George Tanasijevich, once an executive at Singapore developer CapitaLand who led the bid for a license and has headed MBS since 2011. Beyond its wow factors, 605 gaming tables and 2,171 machines, MBS shows the convention based IR model that LVS pioneered in Las Vegas can work in Asia. MBS includes 1.2 million square feet (112,00 square meters) of convention space, drawing high spending business tourists. Non-gaming assets – 2,600 hotel rooms with 97.5% occupancy at a US$466 ADR, a striking 800,000 square foot shopping mall and entertainment including two theaters, one Already Australia’s largest racing and wagering company, Tabcorp has grown exponentially over the past 12 months following its AU$11 billion mega-merger with fellow industry giant Tatts. That will come as a relief to Tabcorp boss David Attenborough following the trials and tribulations of 2017, which saw completion of the merger delayed by six months following legal intervention by the Australian Competition and Consumer Commission. Finally given the green light last November, the newly combined gaming behemoth saw its revenue for FY18 soar by 72% to AU$3.8 billion, with EBITDA jumping 46% to AU$736million and profit up 38% to AU$246.2million. Under its new structure Tabcorp now boasts three distinct gambling business units, led byWagering andMedia which contributes around 48% of revenue but now closely followed by the Lotteries/ Keno segment at 46%. Gaming services chip in the remaining 6%. That appears to be great news for investors with the Tabcorp/ Tatts conglomerate now holding a virtual monopoly on parimutuel betting and controlling racing vision across the country through its Sky Racing network. But there has been considerable angst between shareholders and the board in recent months, primarily in relation to proposed bonuses that were to be paid to management as a reward for getting the merger over the line. Rather than approve the payments, more than 40% of shareholders voted against it in October – a retaliation for an expensive Federal Court action brought by government agency AUSTRAC over anti-money laundering breaches as well as the company’s failed SunBets venture in the UK. Tabcorp paid partner News UK an AU$71 million exit fee in July, less than two years after joining forces. It seems that complete dominance of the Australian wagering landscape isn’t enough to keep everyone happy. ASIAN GAMING POWER 50 2 0 1 8