Inside asian gaming december 2018 - #150 | 30 MOP
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inside asian gaming
december 2018
#150 | 30 MOP
ASIAN GAMING
www.asgam.com
CONTENTS DECEMBER 2018 COVER STORY
Cover Image:
FEATURES IAG
Macau legal
matters
ASIAN GAMING
10 Breakfast Briefs
ASIAN GAMING POWER 50
16 The Asian
Gaming
18 Onwards and upwards
Inside Asian Gaming launches the second decade of
Power 50
our industry’s definitive list of its 50 most powerful
people in Asia.
IAG celebrates the
24 Meet the panel! 11th anniversary of
Perhaps the only job tougher than compiling the Asian
Gaming Power 50 was assembling a panel qualified to the Asian Gaming
choose them. Power 50 as we count
IN FOCUS down the 50 most
influential figures in the
74 Star gazing local gaming industry.
Australia’s Star Entertainment Group is planning to
invest an extra AU$2 billion into a mega masterplan for
The Star Gold Coast including the construction of four
new hotel towers.
COLUMNISTS
78 Seize the day
Sonny Kwok takes a closer look at how the looming re-
tendering process can shape Macau’s long-term future.
FEATURES
82 Macau legal matters
The 11th International Conference on the Legal Reforms
of Macau in the Global Context saw a range of key legal
issues facing the Asian gaming hub discussed in detail.
INDUSTRY PROFILE
86 Trevor Ross: Home away from home
Trevor Ross is back in Macau as Regional Account
Manager, Asia for SG Gaming. But despite the focus
having shifted to Cotai, he says the industry itself hasn’t
changed too much.
90 EVENTS CALENDAR
EDITORIAL Still Photography Distribution Supervisor
Danomad Kuan Emily Vong
Managing Editor Video Producer Distribution Officers
Ben Blaschke Danomad Kuan Anson Ip
Peng Cheang
Editor at Large Mak Man Wah
Muhammad Cohen DIGITAL Hoi Hou Wai
Deputy Editor Director of Digital Business Development
Oscar Guijarro Kevin Sam CORPORATE
Founder and Adviser Journalist and Social Media CEO
Kareem Jalal Joseff Musa Andrew W Scott
Graphic Design Chief of Staff
Rui Gomes SALES & MARKETING Helene Wong
Copy Editor Director Sales Chief Financial Officer
Ray Granlund and Business Development Marcel Fenez
Jadeson Ho
Director and Administrator
Social Media and Content Pam Chang
Cynthia Cheang
Production Manager
Hong Kong Sales
Yvonne Cheong Accounting and Compliance Director
Angel Wong
Anita Loi
Contributors Client Relationship Manager
Paul Doocey Administration Assistant
Caroline Iau
Dr Brian To Suie Ng
Steve Karoul
Executive Transportation Officers
Rui Pinto Proença DISTRIBUTION André Ng
Peter T Treadway
Fong Chi Meng
Dr Glenn McCartney VP Operations
I Nelson Rose Karen Cheong
Advertising Enquiries Subscription Enquiries
Jadeson Ho jh@asgam.com +853 6331 5577 Emily Vong emily@asgam.com +853 6647 4123
Inside Asian Gaming Must Read Publications
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6 INSIDE ASIAN GAMING DECEMBER 2018
EDITORIAL
A year to remember
I
T seems like only yesterday I was sitting down with my fellow Duterte decided that Landing’s land deal with local partner Nayong
panelists to discuss candidates for the 2017 Asian Gaming Pilipino Foundation wasn’t to his liking and fired the organization’s
Power 50. Twelve months on and as we put the finishing entire board just hours before groundbreaking. We didn’t know this
touches on the 2018 list, it once again amazes me how much immediately at the time, but news of the President’s actions did at
can change in such a short space of time. least explain why Nayong Pilipino Foundation boss Patricia Yvette
Aside from the usual property openings and changing financial Ocampo struggled through her speech before bursting into tears
fortunes of Asia’s growing number of gaming companies and immediately afterwards – having only moments earlier been told
investors, two stories stand out for me from the year just passed. her fate.
The first, of course, is the downfall of Wynn Resorts co-founder Making matters even more bizarre, later that month Landing’s
Steve Wynn. I was in London at the time for the annual ICE Totally Chairman, Dr Yang Zhihui, went missing – reportedly detained by
Gaming trade show and exhibition when an explosive article accusing Cambodian authorities while entering the country and transported
Wynn of a history of sexual misconduct towards staff was published back to mainland China in relation to his business links to China’s
in the Wall Street Journal. state-owned Huarong International Financial Holdings Ltd,
Days later Mr Wynn stood down as Chairman – my lasting whose former head is being investigated in a graft probe. Earlier
memory of that day being our CEO Andrew W Scott and I filing the that day, Landing had suspended trading after its stock price
breaking news at 3am London time from the living room of our plummeted 35% from HK$5.60 to HK$3.71 in less than two hours.
London Airbnb. It had been only two weeks earlier that I had stood shaking Yang’s
Of course, the Steve Wynn story has taken on a life of its own since hand at the Manila groundbreaking ceremony, yet months later
then with multiple changes to the Wynn Resorts board, investigations the company is still saying it has been given no official word of
ongoing by the gaming boards of Nevada and Massachusetts and a his whereabouts.
litany of developments in associated litigations. Where else but the gaming industry could you find such real-
The second story that stands out in my mind is the intriguing life drama?
case of Landing International Development. Over the course of just I hope you enjoy reading the 2018 Asian Gaming Power 50 as
a few short yet dramatic weeks in August, Landing was granted a much as I enjoyed my role in creating it – and I can’t wait to see what
provisional gaming license by Philippines gaming regulator PAGCOR transpires next year.
and proceeded to break ground on its new US$1.5 billion integrated
resort in Manila’s Entertainment City.
They even flew me over for the event and lined up interviews with Ben Blaschke
key executives for me to conduct that afternoon. Managing Editor
But in a dramatic turn of events. Philippines President Rodrigo We crave your feedback. Please email your comments to bb@asgam.com.
www.asgam.com
8 INSIDE ASIAN GAMING DECEMBER 2018
DECEMBER 2018 INSIDE ASIAN GAMING 9
WYNN TO BUILD 1,300 NEW
MACAU HOTEL ROOMS ON VACANT
WYNN PALACE LAND PARCEL
WYNN RESORTS IS planning to build 1,300 new hotel rooms “We got the idea from when we were at the Vatican. The Vatican
complemented by an immersive glass theater building inspired by launched a Michelangelo program with a theater. It took an old,
The Vatican on its seven-acre parcel of land located alongside Wynn 1,500-seat theater and created an immersive experience with
Palace in Macau. screens on the walls and on the ceiling, so the audience had a 270
CEO and President Matt Maddox revealed the company’s plans degree experience including live entertainment on the stage. It’s
during its 3Q18 earnings call after Wynn Palace again stole the been quite successful.
show with revenue soaring 39.1% to US$730.6 million – more than “So we thought, if we take that idea and custom build it in this
enough to cover for a disappointing performance from Wynn’s Las area with a great 600-seat theater and make it fully immersive, that
Vegas operations. experience would be like no other on the planet.
Detailing the concept, Maddox said, “What we have so far is a 1.5 While Crystal Pavilion will link to fellow concessionaire SJM’s
million-square foot facility that we think will be a must see in Macau. Grand Lisboa Palace via a footbridge, Maddox added that Wynn
The podium level, which we’re calling the Crystal Pavilion, is a large will incorporate two new hotels into its design including a 671-
glass structure that’s going to house lots of nongaming features. room all-suite hotel connected to Crystal Pavilion as well as another
“As you traverse through the pavilion, you’ll run into a theater, 700-room all-suite hotel on the north four-acre parcel – pushing the
and this theater is really going to be the first of its kind. property’s total room count to 3,000.
10 INSIDE ASIAN GAMING DECEMBER 2018Galaxy Phase 3
launch to be delayed
until mid-2020
The launch of the first stage of Galaxy Macau’s
Phase 3 development will likely be postponed
until mid-2020 due to delays in acquiring various
government approvals, according to Union Gaming
Macau junket workers
analyst Grant Govertsen.
In a note, Govertsen revealed that construction
added to list of employees
work on Phase 3 has “largely maxed out for the time
being” pending the approvals. banned from casino floors
As a result, it is unlikely that Phase 3, including
the first batch of new hotel rooms, will come online
until mid-2020, with the project having previously Macau junket workers have been added to the list of employees to be banned
been expected to open in stages from late 2019. from entering the city’s gaming floors under a law currently being revised by
the Legislative Assembly.
Govertsen added that design work on Phase 4
The latest update to the law was revealed by Ho Ion Sang, Chairman
continues as usual.
of the 1st Standing Committee of the Legislative Assembly, after legislators
Despite the delay, Union Gaming maintains
made the decision to include junket workers during a meeting on Tuesday.
Galaxy as “the best operator in the market today”
The bill, which was given preliminary approval in July but is still being
and well placed to ward off any headwinds in the examined by a working committee, aims at preventing problem gambling
coming years as it waits to add to its Cotai presence among employees – primarily dealers but also cage staff, cleaners and some
with the addition of Phases 3 and 4. food and beverage workers.
Galaxy saw its net revenue grow 6% year-on- The amended law would see those gaming workers impacted banned
year to HK$13.0 billion and Adjusted EBITDA 10% from entering Macau’s casino floors outside of work hours, with the
to HK$3.9 billion in 3Q18, with both mass and VIP exception of three days during the Lunar New Year or for special duties such
performing strongly. as training.
DECEMBER 2018 INSIDE ASIAN GAMING 11MGM COTAI RACING TO OPEN
SOME MANSION VILLAS BY
CHINESE NEW YEAR
MGM CHINA IS racing the clock to finish Executive Director Grant Bowie during with five junket operators expected to be up
some of its highly-anticipated The Mansion MGM Resorts’ 3Q18 earnings call, with the and running at the property in early 2019.
luxury villas in time for Chinese New Year company having earlier announced a 37% “President’s [Club] will be ready before
in early February 2019. But the company year-on-year increase in net revenue to the end of the year, in December,” Bowie
remains on track to launch its premium HK$4.8 billion from its Macau operations said, “and we’re working really hard to get
mass President’s Club gaming area before for the quarter. some of the Mansion villas available for
the end of this year. The Mansion, a private enclave housing Chinese New Year.
The latest update to progress on 27 villas ranging in size from 215 to 570 “We have good grounds to think that’s
MGM COTAI’s high-end offerings was square meters each, is seen as the last piece going to happen, so that’s a big positive
delivered by MGM China CEO and in the jigsaw for MGM COTAI’s VIP plans, for us.”
12 INSIDE ASIAN GAMING DECEMBER 2018Lawrence Ho’s Black Spade issues first
bonds denominated in Macau currency
Black Spade Capital Limited, a company
founded by Melco Resorts Chairman and
CEO Lawrence Ho in 2017, which manages
his personal wealth, has announced the first
issuance of bonds denominated in Macau’s
local currency, patacas.
The bonds are valued at MOP$2 billion
with a maturity of two years and a coupon
rate of 3.1%.
“If you have MOP, what you do is
deposit it in the bank… but we provide
another solution to give investors higher
yield,” said Dennis Tam, President and CEO
of Black Spade Capital.
Tam explained that the coupon rate
of the bonds is particularly attractive for
local investors when compared to regular
deposit rates. Economists and investors
have frequently indicated that Macau locals
have very limited investment options due
to the nature of the city’s economic and
geostrategic situation.
Tam said he now expects “there will be Dreams, Black Spade Capital stated that proceeds will be used for non-gaming
more followers using MOP” as a currency the issuance of its bonds would promote investments within the Greater Bay Area
to issue financial instruments, having the integration of Macau in the Greater Bay including in Macau, Hong Kong and
witnessed Black Spade Capital’s venture. Area and enhance the liquidity of China’s Guangdong province. The bonds
At a launch press conference held at the currency. have local Tai Fung Bank as sole global
Melco’s Morpheus hotel tower at City of The company also highlighted that coordinator and chief structuring advisor.
Dr Rui Cunha says no space for seventh Macau concessionaire
Long-time STDM lawyer and founder The veteran lawyer said he instead The gaming licenses of SJM and MGM
of the Rui Cunha Foundation, Dr Rui supports continuity of the current model both expire in 2020 while the remaining
Cunha has poured cold water on the of six concessionaires – SJM, Sands four all expire in 2022.
prospect of introducing a seventh Macau China, Galaxy, Wynn Macau, MGM “Macau will have to be necessarily
concessionaire. China and Melco Resorts – but warned more calculating, because adopting very
Speaking to Inside Asian Gaming, Dr that regulators may need to consider rigorous measures and the application of
Cunha said, “I don’t think there’s much relaxing the jurisdiction’s strict rules when too heavy taxes when competing locations
space for many more operators … a the re-tendering process begins in the may experience more favorable situations
proliferation of gaming concessionaires coming years due to increasing regional can drive Macau to a decline in visitors and
wouldn’t be very healthy for Macau.” competition. bettors,” he said.
DECEMBER 2018 INSIDE ASIAN GAMING 13SKYCITY DARWIN SOLD
FOR AU$188 MILLION
SKYCITY ENTERTAINMENT GROUP North – revealed that they plan to enter “We see both International Business and
Limited has found a buyer for its Darwin into a joint venture to establish an online the online space as future growth areas for us,
business with US firm Delaware North casino business based out of the Northern so we see value in this outcome,’’ he said.
agreeing to purchase SKYCITY Darwin for Territory should there be any future change “The sale is consistent with our ‘capital
AU$188 million. The sale will see Delaware in legislation in Australia permitting online lighter’ strategy to sell non-core assets and
North acquire 100% of SKYCITY Darwin Pty gaming activities within the next decade. to allocate capital to assets and businesses
Limited on a cash-free and debt-free basis. Inside Asian Gaming understands there which we feel are aligned with our long-
SKYCITY has also retained the ongoing is currently a concerted push to have term strategic objectives. As always, our
right to access the VIP and premium online poker legalized in the near future top priority is to deliver attractive and
gaming facilities at the Darwin casino for although online casino games are likely sustainable returns for shareholders.
its International Business customers for at many years away. “It also allows us to concentrate our
least two years after completion of the sale. Commenting on the transaction, Australian activities in Adelaide, which is
In an announcement, the two SKYCITY CEO Graeme Stephens said the undergoing an AU$330m expansion, due for
companies – SKYCITY and Delaware sale was a positive result for the company. completion in late 2020.’’
NagaCorp boss increases stake
NagaCorp CEO Chen Lip Keong has further increased
his shareholding in the company with the purchase
of 5.29 million shares for a total consideration of
HK$38.9 million.
NagaCorp revealed that Dr Chen had completed
the on-market purchase of the shares in three
batches between Wednesday 31 October and Friday
2 November, lifting his total stake in the company to
approximately 2.87 billion shares
Dr Chen gained control of the company in August
2017 after exercising conversion rights with respect to
TSCLK Complex Convertible Bonds and NagaCity Walk
Convertible Bonds issued to him in 2016. The TSCLK
Complex Convertible Bonds were originally issued to
him following the acquisition of his former company
TSC Inc by NagaCorp.
TSC holds the rights to the neighboring TSCLK
Complex, better known as Naga2, which launched late
last year. The NagaCity Walk Convertible Bonds relate
to a separate deal which saw NagaCorp acquire City
Walk Inc, the holding company for the NagaCity Walk
project that connects NagaWorld with Naga2.
14 INSIDE ASIAN GAMING DECEMBER 2018DECEMBER 2018 INSIDE ASIAN GAMING 15
16 INSIDE ASIAN GAMING DECEMBER 2018
ASIAN GAMING
DECEMBER 2018 INSIDE ASIAN GAMING 17ASIAN GAMING
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ONWARDS
AND
UPWARDS
Asian Gaming Power 50 enters second decade
By Andrew W Scott Development
IAG Asian Gaming Power 50 selection panel Chairman It’s just over 10 years since we first launched the Asian Gaming
Power 50 in 2008 and not much longer than that since the
Venetian Macao changed the face of the region’s land-based
L
casino industry when it opened its doors in 2007.
AST year Inside Asian Gaming celebrated 10 years of Since then, a small parcel of land measuring just 6.7 square
the Asian Gaming Power 50. This time around we kilometres has become the richest place on earth, home to
kick off the second decade of our industry’s definitive world class integrated resorts City of Dreams, Galaxy Macau,
list of its 50 most powerful people in Asia. MGM Cotai, Sands Cotai Central, Studio City, Wynn Palace and
What began in 2008 as a fun and innovative look at The Parisian Macao.
those who make our industry tick has evolved into an important Not too far away, the Philippines has emerged as Asia’s
annual insight that is anxiously awaited by all. Compiling second gaming hub with Resorts World Manila paving the way
the Asian Gaming Power 50 is an intriguing, demanding, and a new district known as Entertainment City now home to
educational and exhausting task yet one that comes with Solaire, City of Dreams Manila and Okada Manila. In Singapore,
considerable responsibility to “get it right.” Resorts World Sentosa and Marina Bay Sands have changed
It is with this in mind that IAG employs a panel of highly the face of the city while more recently Korea, Vietnam and
experienced gaming veterans each year to pore over and debate Cambodia have opened their arms to the tourism boom that
every candidate, with the whole process taking close to two such high-end casino-resorts can offer. Now all eyes are firmly
months in its entirety. More on this year’s panel shortly. fixed on Japan in anticipation of Asia’s “next big thing.”
18 INSIDE ASIAN GAMING DECEMBER 2018ASIAN GAMING
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50
“We often hear claims of not Yet, as has become the norm, so much has changed over the
past 12 months with the industry’s highs and lows all reflected in
reading the list or not caring about the make-up of our 2018 Asian Gaming Power 50.
From the sudden and shocking fall from grace of global gaming
it, but we are often contacted icon Steve Wynn to the disappearance of Landing International
either directly or through Chairman Dr Yang Zhihui and Crown Resorts figurehead James
Packer stepping away for mental health reasons, there was never a
surrogates to bemoan the injustice dull moment in this fascinating and fast-moving industry.
of a perceived lowly position and to
December
lobby for the following year.” IAG published the inaugural “BIG 50” in July 2008. The following
year it moved to September, so that it was the current issue of
IAG for the G2E trade show in Las Vegas each year. It remained
in September for the next eight years, to 2016. As the years
have rolled on, the importance of G2E in Las Vegas to the Asian
Despite such incredible development, only four people gaming industry has waned (while the importance of G2E Asia in
have sat atop the Asian Gaming Power 50 over the past 10 Macau has waxed), and in 2017 we decided to move the BIG 50
years. They are: to December so that each year’s list can take into account all the
activities and machinations of the preceding calendar year.
2008: Dr Stanley Ho
2009: Tan Sri KT Lim
Dynamic
The Power 50 list is not a place for people to rest on their
2010: Mr Sheldon Adelson laurels. While there are some points awarded for company
2011 and 2012: Mr Francis Lui longevity and/or executive tenure, the list predominantly focuses
2013 to 2017: Mr Sheldon Adelson on the activities of the prior 12 months. It’s all about “what are
2018: read on to find out! you doing now?” and “what have you done lately?” not “what
DECEMBER 2018 INSIDE ASIAN GAMING 19ASIAN GAMING
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Las Vegas Sands Chairman and CEO Sheldon Adelson has topped the Asian Gaming Power 50 list for the past five years.
have you done in the last 15 years?” As such the Power 50 list junket operator in Macau versus the CEO of the Hong Kong
is very dynamic as people move up, and down, and on, for a Jockey Club? Or the head of a smallish casino company about
multitude of reasons. As part of this year’s exercise we looked to go public to the President of a casino chain in Korea that
over the lists for the previous 10 years and surprised ourselves doesn’t have locals gaming? These are the types of tough
at how many names are no longer on the list, or the names who questions the selection panel of the Asian Gaming Power 50
were once in the top 10 or 20 and who are now much lower. wrestles with.
A phenomenon that repeatedly presents during the making As with any such ranked list, there are always criticisms
of the list each year is the “My business has grown therefore I and objections, usually from those who feel slighted. We often
should move up the list” fallacy. The truth is everyone lifts in a hear claims of not reading the list or not caring about it, but
rising tide and because, as a general rule, the majority of people we are often contacted either directly or through surrogates to
on the list are managing businesses that grow each year, just bemoan the injustice of a perceived lowly position and to lobby
to maintain a spot on the list requires annual growth. Someone for the following year. Strangely, no-one has ever contacted us to
doing the same thing year after year and achieving similar complain about being ranked too high!
results will slowly slip down the list as the years roll by.
Decisions
Dilemmas This year we welcome two new members to the selection panel:
Although we have become quite adept at putting this list Professor Davis Fong, Director of the Institute for the Study of
together, the task seems to get more complex each year as the Commercial Gaming at the University of Macau and member of
Asian gaming industry matures and becomes more nuanced. Macau’s Legislative Assembly; and Constance Hsu, Director of
How on earth does one compare the sole owner of a smaller Cheng Ying Group and former President of Mocha Clubs.
property to the brand new “hired help” COO of a much larger Over the last decade the Asian Gaming Power 50 has
one? How about comparing a large property that is still in become the definitive list of the industry’s most important
pre-opening to a smaller one that has been active for years? A people and as such we play a vital role in the industry and have
20 INSIDE ASIAN GAMING DECEMBER 2018ASIAN GAMING
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“At the end of the day, in our
industry the concept of ‘power’
generally comes down to direct
or indirect control of money. The
greater the GGR controlled, the
greater the power.”
DECEMBER 2018 INSIDE ASIAN GAMING 21ASIAN GAMING
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a responsibility to simply get it right. Keen followers of the list done this without any predetermined idea of where any person
will remember that in 2016 we completely overhauled the Power should or should not be ranked.
50 ranking methodology and in an effort to be more scientific At the end of the day, in our industry the concept of “power”
and objective in the rankings we introduced a numerical “Power generally comes down to direct or indirect control of money.
Score” for each person on the list. This proved popular and we The greater the GGR controlled, the greater the power. But what,
have continued the tradition since then. exactly, is control? It’s about influence, it’s about who is the
Power Score points arise from a number of factors ultimate decision maker, and sometimes it’s simply about who
including the GGR of the person’s organization (or a surrogate is the person everyone in the room looks to for the answers. In
comparative measure if necessary), a weighted “carving up” the same way that a country is a country because other countries
of those points between the top senior executives with key say it is, some people are powerful simply because other people
policy control of that organization, adjustments for whether the say they are.
person is hired or has a major equity position, their length of Here are some other questions that have arisen during the
tenure, how active in business initiatives the person has been selection process:
in the prior 12 months, the long-term gaming pedigree of the
person, the jurisdiction in which he or she operates and many What countries count as Asia?
more. Some factors are necessarily subjective, but we’ve always As west as India, as south as New Zealand, as east as Saipan
assigned a points value in an attempt to be objective. We have and as north as Mongolia.
22 INSIDE ASIAN GAMING DECEMBER 2018ASIAN GAMING
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What about non-operators who have a strong voice in Score points. After all, the owner can always force an appointed
the industry, like regulators, media commentators, COO out of his job. But in some cases a hired COO can be even
analysts, academics, suppliers, consultants, gaming more powerful than their “boss” when the owner delegates a
lawyers and so on? very large proportion of decision-making responsibility. The
We have looked at the power wielded by all of those, but after answer is decided on a case by case basis.
careful consideration concluded that it was impossible to
include regulators (PAGCOR’s Andrea Domingo’s position Why isn’t Dr Stanley Ho on the list anymore?
on the list is purely as an operator, not a regulator) and after Dr Ho was retired from the list in 2011 after he effectively
considering the power of people in all the other categories it was withdrew from active day-to-day management of SJM. As one
only direct operators who made it into the top 50. seasoned industry professional put it, “You can’t put him in with
normal people.” We agree.
How do you pick between the owner/CEO and the COO of
a company? Finally, I’d like to take this opportunity to thank my
Many gaming companies have a charismatic and entrepreneurial fellow selection panel members for their tireless work and
owner/CEO and a perhaps more seasoned and level-headed excellent insights. And so, without any further ado, we
gaming professional in charge as President and/or COO. By present the 11th edition of the Asian Gaming Power 50.
default, being an owner necessarily ranks many more Power Enjoy!
DECEMBER 2018 INSIDE ASIAN GAMING 23ASIAN GAMING
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50
MEET THE PANEL
Andrew W Scott Muhammad Cohen
CEO Editor-At-large
Inside Asian Gaming Inside Asian Gaming
Inside Asian Gaming’s CEO first entered a Muhammad Cohen has been covering
casino in 1986, fell in love with the surrounds business in Asia since 1995 and focused on
and has been around them ever since. Andrew the casino business for the past decade. He’s
founded World Gaming Group in 2009 and interviewed gaming’s best and brightest, been
launched WGM, took over IAG in 2015 and debuted a third magazine publicly upbraided (at least once, unjustly) by them and in turn has keenly
called High Life in 2016. He is a regular commentator in the media on assessed what they’ve produced. His experience as a diplomat and city
all things gaming. Named the 2014 Macau Person of the Year, Andrew is planner helps him place gaming policies, projects and destinations in
also a regular consultant to institutions investing in Asian gaming stocks, the broader urban and geopolitical context of Asia’s increasingly complex
President of the Macau Taxi Passengers Association, a member of the web of competing domestic and international interests and imperatives.
Portuguese and English Press Association of Macau and a permanent As a former baseball writer, working with some of the game’s top
member of the Macau Gaming Management Association. He is also statistical analysts, he brings a keen appreciation of the power and limits
in the latter stages of completing a Master’s Degree in International of numbers to paint a picture that may be incredibly accurate but also
Integrated Resort Management at the University of Macau. multi-dimensional.
Ben Blaschke Dr Davis Fong
Managing Editor Director of Institute for the Study of
Inside Asian Gaming Commercial Gaming; Professor of
International Integrated Resort Management
University of Macau
Ben began his career as a sports journalist
in Sydney in 1999 before falling in love with
poker. He soon found himself not only playing Dr Davis Fong has been responsible for more
the game but writing about it too – taking on than 40 gambling and tourism related research
the role of Editor for PokerNews Australasia and subsequently visiting projects for the Macao SAR Government. Pursuit of academic interest has
Macau for the very first time in 2008. Having quickly discovered a love of led him to study different aspects of gambling and related issues, such
the excitement of a great casino floor, he jumped at the chance to become as social and economic impacts of gambling, Chinese gambler behavior,
more deeply involved with the industry when he was offered the role of gambling disorder, responsible gambling, visitor profile studies, casino
Managing Editor of WGM in early 2013. operations, tourism management and more.
In 2016 Ben added the roles of Managing Editor of both IAG and On appointment by the Government he has served as a Consultant
High Life and this year was appointed Chief Content Officer at O MEDIA, on the Economic Development Committee since 2017, as a member of
overseeing all content across the company’s growing number of digital the Talents Development Committee since 2014 and on the Consultative
and print media brands. Ben was also the creative force behind IAG Committee of Statistics, Macao SAR, since 2015 (UM Representative).
Breakfast Briefing, – a popular daily gaming industry newsletter hitting Prof. Fong was appointed by the Chief Executive as a Deputy of the Sixth
20,000 inboxes at 8am each Macau business day. Legislative Assembly of Macao (2017–2021).
24 INSIDE ASIAN GAMING DECEMBER 2018ASIAN GAMING
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50
David Green University of Cambridge, and a recipient of the “Emerging Leader” trophy
at the 2016 Asia Gaming Awards.
Principal Desmond has studied and written extensively on gaming-related
Newpage Consulting issues in trade and academic publications and authored the book
Chopsticks and Gambling by Routledge. He is a judge for the International
David Green is founder and Chairman of Newpage Gaming Awards and G2E Asia Awards and a speaker at numerous
Consulting, a company he established in Macau seminars. Desmond has also consulted for the Macau government and
early in 2010. Previously he was Director of the for integrated resorts.
Gaming Practice of PricewaterhouseCoopers
(Macau) Limitada. An Australian citizen, he is also a Permanent Resident
of Macau. He retired as a Partner of PwC in 2004, but rejoined in 2005 to
assist in the further development of the firm’s presence in the Asian gaming
Rui Pinto Proença
industry. He lived in Macau for more than 14 years, and worked with the SAR
Government on liberalization and regulation of the casino industry.
Corporate and Gaming
David is both a qualified lawyer and accountant, with considerable Practice Partner
experience in gaming, including seven years (1995 to 2002) as a member MdME Lawyers Private Notary
and Chairman of the Independent Gambling Authority of South Australia.
He is also a former Commissioner for Consumer Affairs in South Australia. Rui is a partner at the Macau law firm of MdME,
Green holds a Masters degree in Law from the University of Melbourne, where he heads the firm’s Gaming practice.
an MBA with Honors from IMD, Lausanne and a Commerce degree, also He has been based in Macau for the past 10
from the University of Melbourne. He was admitted to legal practice in years, where he is recognized as one of the leading gaming lawyers. Rui
Australia in 1977. He is a Fellow of the Institute of Public Accountants regularly acts for gaming companies in Macau and across the Asia-Pacific
(Australia) and a Fellow of the Australian Institute of Company Directors. region. He also assists governments in emerging markets develop their
gaming policies and regulatory frameworks.
Rui was distinguished as “Emerging Leader of the Year” in the Asia
Constance Hsu Gaming Awards 2017 and was subsequently recognized as a leading
gaming lawyer in the Asia-Pacific region by Chamber and Partners. He is
Director
the global chairman of the Lex Mundi Gaming Solution, a network of law
Cheng Ying Group firms covering more than 25 gaming jurisdictions around the world and
a member of the Board of Trustees of the “International Association of
Ms Constance Hsu has over 10 years of direct
Gaming Advisors”.
involvement in a broad set of gaming industry
disciplines. Ms Hsu was with Mocha since
it began in 2003, starting out as a financial
controller and rising through management ranks quickly to become chief Michael Zhu
administrative officer. There, she oversaw finance, treasury, audit, legal
compliance, procurement and human resources. In 2008, she was named SVP, International Operations
president of Mocha, becoming one of only a handful of women to rise to Planning & Analysis
the executive ranks in Macau’s gaming industry. The Innovation Group
From December 2013 to January 2017, Ms Hsu served as the general
manager of Altira Macau, Melco Resorts & Entertainment Limited’s first
casino in Macau. She is a member of the American Institute of Certified With nearly 20 years of experience in the
Public Accountants and the Hong Kong Institute of Certified Public gaming, leisure, and hospitality industries,
Accountants. In 2011, Ms Hsu was honored with the award of Inspiration in 2014 Michael Zhu joined The Innovation
of the Year at the Women in Gaming Awards held in London. Group where he applies a comprehensive analytical skill set while
She graduated with a bachelor of arts degree from Seattle University, exploiting his unique cultural context and leveraging his in-depth
a master’s degree in business administration from the Hong Kong development and operational experience in the related sectors. Michael
University of Science and Technology and a doctorate degree in economics is Vice Chairman of the Macau Gaming Information Association
from Beijing Normal University. (MGIA). His main focus with The Innovation Group is on mid-and
large-scale IR development and operations in the US, Asia-Pacific and
European markets.
Professor Desmond Lam, PHD Michael also expanded his horizons during the GFC as a Leadership
Development Associate with Las Vegas Sands Corporation, where he
Acting Program Director of Hospitality oversaw a broad array of projects to establish and enhance financial
and Gaming Management planning and analysis for the opening of numerous Sands China
Faculty of Business Administration, integrated resorts in Macau and Marina Bay Sands in Singapore among
University of Macau others. He holds a Master of Business Administration in Hospitality
Management from the School of Hotel Administration at Cornell
Desmond Lam is a Professor in International University, as well as a Bachelor of Arts in Philosophy from Peking
Integrated Resort Management and Chair of University in China. He was a Fellow of the United States National
the International Accreditation Committee at the Faculty of Business Committee on U.S. – China Relations in Washington, DC and of the
Administration, University of Macau. He is a life member of Clare Hall, East-West Center in Honolulu, Hawaii.
DECEMBER 2018 INSIDE ASIAN GAMING 25ASIAN GAMING
POWER
2 0 1 8
50
BIG 50
1 Sheldon Adelson 13 Ambrose So 25 David Attenborough 38 Jun Fujimoto
Chairman and CEO Vice-Chairman, Executive Managing Director and CEO Representative Director
Las Vegas Sands Director and CEO Tabcorp and President
and Sands China SJM Holdings Universal Entertainment
26 George Tanasijevich
2 Francis Lui 14 Chen Lip Keong President and CEO 39 Jay Chun
Deputy Chairman Founder, Controlling Marina Bay Sands Chairman and
Galaxy Entertainment Group Shareholder and CEO Managing Director
NagaCorp 27 John Alexander Paradise Entertainment
3 Lawrence Ho Executive Chairman
Chairman and CEO 15 Matt Bekier Crown Resorts 40 Albert Yeung
Melco Resorts & Managing Director and CEO Chairman
Entertainment and Melco Star Entertainment Group 28 Kohei Sato Emperor Group
International Development Chairman and CEO
16 Kevin Kelley Dynam Japan
41 Ji Xiaobo
Saipan Project Director
4 Lim Kok Thay Chief Operating Officer,
Imperial Pacific International
Chairman and CEO Macau 29 Tan Hee Teck
Genting Berhad Galaxy Entertainment Chairman and CEO 42 Thomas Arasi
Group Resorts World Sentosa President and Chief
5 Alvin Chau Operating Officer
Chairman 17 Winfried Engelbrecht 30 Phil-lip Chun Bloomberry Resorts
Suncity Group Bresges Chairman
Chief Executive Officer Paradise Group 43 Clarence Chung
6 Angela Leong Hong Kong Jockey Club Chairman
Co-Chairman and 31 Lee Choong Yan Melco Resorts Philippines
Executive Director 18 Linda Chen President and COO
SJM Holdings Vice Chairman, Genting Malaysia 44 Kingson Sian
Chief Operating Officer President and CEO
7 Wilfred Wong and Executive Director 32 Henry Cheng Travellers International
President and Chief Wynn Macau Chairman Hotel Group
Operating Officer Chow Tai Fook
Sands China 19 Han Chang-woo 45 Yang Zhihui
Chairman and CEO 33 Graeme Stephens Chairman and Executive
8 Rob Goldstein Maruhan Chief Executive Officer Director
President and Chief SKYCITY Entertainment Landing International
Operating Officer 20 David Sisk Group Development
Las Vegas Sands Property President
City of Dreams Macau 34 Daisy Ho 46 Chan Meng Kam
9 Enrique Razon Jr Chairman and Executive President
Chairman and CEO 21 James Murren Director Golden Dragon Group
Bloomberry Resorts Chairman and CEO SJM Holdings
MGM Resorts International 47 Andrea Domingo
10 Pansy Ho 35 Moon Taegon Chairman and CEO
Co-Chairperson and 22 Nicholas Niglio President and CEO PAGCOR
Executive Director Executive Director and CEO Kangwon Land
48 Lee Ki-woo
MGM China Holdings Ltd Rich Goldman Holdings
President and CEO
36 Michael Mecca
Grand Korea Leisure
11 Matt Maddox 23 Ian Coughlan Non Executive Director
CEO and President President and Galaxy Entertainment Group 49 Hajime Satomi
Wynn Resorts Executive Director Chairman and Group CEO
Wynn Macau 37 David Chow Sega Sammy
12 Grant Bowie Co-Chairman, Executive
CEO and Executive Director 24 Levo Chan Director and CEO 50 Sonny Yeung
MGM China Holdings Ltd Chief Executive Officer Macau Legend Chairman
Tak Chun Group Success Universe
26 INSIDE ASIAN GAMING DECEMBER 2018ASIAN GAMING
POWER
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50
1 Sheldon Adelson
CHAIRMAN AND CEO
Las Vegas Sands
CHAIRMAN AND CEO
Sands China
POWER SCORE: 7,598
POSITION LAST YEAR: 1
CLAIMS TO FAME
Market leader in Macau and Singapore
Developed iconic Marina Bay Sands,
prototype for the iconic integrated resort
Pioneered Cotai, creating space for
diversifying Macau’s tourism offering
“Right now we have the unions and we have the gambling, depth to maintain high-end appeal. In Macau and Singapore, as in Las
and those are the best things to have. But narcotics is a thing of the Vegas, retail has been proven a solid profit center.
future. If we don’t get a piece of that action we risk everything we Adelson at age 85, with a fortune of more than US$30 billion
have.” That’s what Corleone family consigliere Tom Hagen warned in and hobbled by neuropathy that makes it difficult for him to stand
The Godfather. Sheldon Adelson hears Hagen. and walk, still burns for more. In Cotai, not content with more guest
Adelson tops the pile in Asia once again because he has the best rooms than his rivals combined, Sands China will spend another $2
things now, Macau and Singapore, money machines on track to billion, mainly remaking Sands Cotai Central into the Londoner,
generate US$5 billion EBITDA this year. But Japan is the thing of the with Big Ben and Tower Bridge replicas to face Parisian’s half-scale
future, and Adelson seems to believe if Las Vegas Sands doesn’t get a Eiffel Tower and Venetian’s version of the Campanile San Marco.
piece of that action, it risks everything it has. “We remain supremely confident in the future opportunity in Macau
Adelson has declared LVS holds the “number one pole position” in and have therefore elected to meaningfully increase the scale of our
Japan, and the cards there seem quite favorable. Marina Bay Sands is investments,” Adelson said announcing third quarter results. Beyond
the IR everyone in the world wants in their skyline. MBS exemplifies Japan, LVS keeps pushing Korea and Thailand (and reportedly Brazil)
what LVS calls its “proven MICE-based Integrated Resort business to give it the chance to build IRs.
model” in the region. Japan’s convention space requirement for IRs Some see Adelson as a negative for Japan, where success will
seems tailor made for LVS. require partnership with the host local government and, in all
Success in Singapore’s fastidious regulatory environment shows likelihood, multiple Japanese companies. “Everybody in the industry
that LVS can meet the similarly demanding conditions likely in Japan. believes that if anybody is going to be successful there, it’s going to be
As in Singapore, Macau-style junket promoters have been cut out, us,” Adelson said during that Q3 call. “Our competitors want to share
heightening the importance of the regional player database and credit with us. I don’t know if I want to share with them.”
risk management expertise LVS has honed. But beyond the drive and braggadocio, there’s hard realism. Along
Cotai, an unwanted, unfinished landfill until Adelson invested with the Londoner remake, Adelson abandoned a nearly decade-long
some US$13 billion, has become the beating heart of the world’s effort to sell serviced apartments in Cotai, converting those sticking
casino capital, with Venetian Macao at its center. Sands China has led points into hotel suites. If the deal is right he’ll take it, and if it’s not
efforts – not always successful – to diversify Macau beyond gaming, – see EuroVegas – he has the confidence and track record to walk away
as local and Beijing authorities urge. Sands China’s bet on the mass and move on to the next thing. And if Adelson’s involved, you can bet
market is a long term winner, while its portfolio has the breadth and it will be the thing of the future.
DECEMBER 2018 INSIDE ASIAN GAMING 27ASIAN GAMING
POWER
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2 Francis Lui
DEPUTY CHAIRMAN
Galaxy Entertainment Group
POWER SCORE: 7,493
POSITION LAST YEAR: 2
CLAIMS TO FAME
Has advantage of being a local operator
Largest Cotai land holdings of the six gaming
concessions
Hengqin island presence with plans for a non-
gaming IR
If there has been one constant in Macau in recent years, it has
been Galaxy Entertainment Group consistently outperforming the
market.
With Francis Lui, the son of Hong Kong business mogul Lui Che
Woo, leading the charge, Galaxy has ridden a tidal wave of success ever
since emerging bruised but not battered from Macau’s mid-decade
downturn. With the exception of Cotai Strip founder Sands China,
Galaxy was the first to expand its offerings with the launch of Phase
2 in 2015 and while some concessionaires have only just arrived in
Cotai – or are still waiting to get their foot in the door – Lui’s Macau
masterplan is already well advanced with Phase 3 to open its doors by
mid-2020.
It’s hard to think of Galaxy as anything but a company with a clear
vision of what the market wants and how to bring it to fruition – a fact and culturally as we have done in the other cities where we operate.”
highlighted by continued strong growth across all segments in 2018. Other expansion plans haven’t been quite so smooth. In March,
And just as flagship property Galaxy Macau sets the gold standard Galaxy announced that it had been granted a provisional casino
for quality and service, StarWorld continues to lead the way on the license by Philippines gaming regulator PAGCOR for a US$500 million
peninsula – defying the gradual market-wide shift by customers over IR in Boracay, only for the country’s President, Rodrigo Duterte, to
the bridge. scupper those plans just a few weeks later with his proclamation that
“Simply put,” said Union Gaming’s Grant Govertsen in a 2Q18 no new casinos would be built under his watch. That situation remains
note, “Galaxy is still firing on all cylinders and we don’t see anything in limbo, yet the Galaxy train rolls on with the company pulling off
on the horizon that should derail the company’s ability to continue to one of the more audacious moves of the year when it snapped up
take share.” 5.3 million shares in Wynn Resorts, representing a 4.9% stake, for
In Japan, the company boasts a similar clarity of direction, having US$927.5 million on the same day Steve Wynn sold off his last shares.
been quick to form a partnership with Monaco’s famous Monte-Carlo “This is a unique opportunity to acquire an investment in a globally
Société des Bains de Mer that is rumored to have impressed Japanese recognized entertainment corporation with exceptionally high quality
officials. assets and a significant development pipeline,” Lui said at the time.
Discussing the benefits of that partnership during this year’s It’s all quite an achievement for a man with a background in civil
Japan Gaming Congress, Galaxy board member Michael Mecca and structural engineering rather than gaming.
said, “Our partnership promises something truly unique for Japan. The 63-year-old has closed to within touching distance of Sheldon
Together, we possess the financial capability, integrity and strength Adelson for the number one spot on the Asian Gaming Power 50 list
of vision to bring integrated resorts to Japan successfully, using them this year and on the current trajectory has every chance of moving to
as a powerful catalyst for growth, not only economically, but socially number one in 2019.
28 INSIDE ASIAN GAMING DECEMBER 2018ASIAN GAMING
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3 Lawrence Ho
CHAIRMAN AND CEO
Melco Resorts and
Entertainment
CHAIRMAN AND CEO
Melco International
Development
POWER SCORE: 4,825
POSITION LAST YEAR: 3
CLAIMS TO FAME
Melco’s City of Dreams and Studio City are
the only properties directly on the Cotai Strip
not owned by Sands China
Opened landmark US$1.1 billion Morpheus
Tower, designed by the late Dame Zaha
Hadid, underscoring Melco’s premium focus
Philippine presence with City of Dreams
Manila partnership
Mark 2018 as a year of revision and consolidation for Lawrence flagship IR. It’s one of three new hotel brands as Melco converts Crown
Ho, his first full year running Melco Resorts solo without any remnant Towers to Nüwa and Hard Rock to Countdown, en route to Libertine.
of the old Crown Resorts partnership and his second year taking a Both properties are due for major renovations. These changes portend
direct role in day-to-day operations. The choppy ride is emblematic disruptions and negative impacts on City of Dreams results.
of Melco – Nasdaq listed and controlled by Ho via Hong Kong listed Studio City is also undergoing wholesale changes. In share
Melco International – complicated but forward thinking, with a markets, an October Wall Street IPO raised US$345 million in fresh
penchant for innovation and experimentation, and, if it doesn’t work, capital. The offering valued the property at US$3.2 billion, its factory
a willingness to rip it up and start again. sticker price, and shares rose 43% in their first week of trading. But
When the Macau government offered Cotai land to operators not the share sale doesn’t clear a path for Melco buying out its now 36%
named Adelson, Ho was reportedly the only one who said yes. Melco hedge fund partner or for proceeding with the property’s second
got the City of Dreams site at the head of Cotai’s main north-south phase. Greater clarity on Studio City’s first phase could help, too. In
spine. It took control of Studio City, envisioned as a TV production recent months, Studio City opened a new eSports stadium, announced
center before gaming liberalization, at the foot of Cotai in 2011 and a limited-run vehicle stunt show to replace short-lived House of Magic
opened the IR in 2015. Each has a Macau light rail station on its and closed nightclub Pacha.
doorstep but Melco’s strategy for these assets is, like the mass transit The CoD Manila joint venture with the Philippines’ richest family’s
project, a work in progress with an uncertain completion date. investment vehicle has proven a great addition to the portfolio
The June debut of Morpheus Tower headlines Melco’s 2018. (Cyprus, where Melco and a local partner are opening temporary
The US$1.1 billion addition to City of Dreams, designed by the late casinos while building Europe’s biggest IR, may become a similar gem
Dame Zaha Hadid, aspires to become Macau’s modern architectural or, like Ho’s former stake in far eastern Russia’s Tigre de Cristal, a
landmark, in the mold of Singapore’s Marina Bay Sands. Morpheus’ temporary distraction).
eye-catching exoskeleton design with a hole in the middle indisputably Melco Resorts Philippines’ ham-fisted attempt to go private
breaks new ground for Macau. But its equally fresh hip luxury position has it offering to buy out shareholders but staying listed. Successful
may prove a niche in search of a market. partnerships may bode well for Melco’s Japan ambitions, but
Morpheus debuted in the context of an overhaul of Melco’s persistent complexity keeps its undervalued.
DECEMBER 2018 INSIDE ASIAN GAMING 29ASIAN GAMING
POWER
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4 Lim Kok Thay
EXECUTIVE CHAIRMAN AND CEO
Genting Berhad
CHAIRMAN AND CEO
Genting Hong Kong
POWER SCORE: 3,165
POSITION LAST YEAR: 4
CLAIMS TO FAME
Lim unites a sprawling global gaming group
represented in North America, Europe and
Asia, plus the high seas
Largest Asian casino group not represented
in Macau
Took reins from his father, founder Lim Goh
Tong, grooming son Hui Lim as successor
Genting Group continues to lurk – hulk may be a better with Resorts World Bimini, which it someday hopes to pair with an IR
term – quietly on the margins, in contrast to its status as the most in Miami on vast property holdings there, and the US$4 billion Resorts
global gaming company with some US$5 billion in revenue and US$1.7 World Las Vegas on the Strip. It’s also a partner in Resorts World Manila
billion EBITDA. It may not retain that low profile once Resorts World with local billionaire Andrew Tan’s Alliance Global.
Las Vegas opens in 2020, perhaps followed by winning a coveted Dream Cruises is Lim’s play for mainland China’s middle class,
Japan casino concession. For now, though, Genting has an eclectic the first cruises specifically designed for that market with tailor-made
collection of assets and a Dream. leisure, food and gaming options. Dream Cruises has two ships operating
It all started with Lim’s father, Lim Goh Tong. The group and two more due for delivery in 2020 and 2021. It’s positioned as a
inaugurated Founder’s Day last February 28, the centennial of Lim value entry beside Star and luxury segment acquisition Crystal Cruises.
Goh Tong’s birth, declaring core values of Hard Work, Honesty, Genting’s structure is not designed for transparency or clarity. For
Compassion, Harmony and Loyalty. “By instilling these core values, now, RW Las Vegas is under main holding company Genting Berhad,
the Genting Group will emulate the Founder’s determination and listed in KL along with Genting Malaysia, comprising the Malaysian
dedication to achieve the company’s goals and bring the organization and UK assets plus RW New York City and RW Bimini. Singapore-
to greater heights,” Lim declared. listed Genting Singapore owns RW Sentosa. Genting Berhad owns
The group takes its name from the town where the elder Lim shares in all of the above, but sold its stake in Genting Hong Kong, the
began cutting a road through the jungle up to the Highlands retreat Hong Kong-traded vehicle for the group’s cruise assets and RW Manila
outside Kuala Lumpur that’s now known as Resorts World Genting. The stake. The Catskills property, 150 kilometers north of New York City,
simple narrative is that Genting was comfortable there and bid on the is held via a Lim investment arm. At the apex of it all sits Lim, with his
Singapore IR license as a matter of self-preservation. In truth, Genting son Hui Lim posed to extend the dynasty to a third generation.
had a footloose – and cash rich – quality that led to investments in US It’s a pretty good bet that recent structural tweaks relate to Japan,
tribal casinos and Australia, then the purchase of UK gaming assets and where RW Sentosa serves as a potential model, and the group’s history
Star Cruises, where Lim Kok Thay reportedly cut his teeth in the family of successful collaboration make it a very desirable partner. Genting is
business. Its North American footprint has spread to New York with the biggest Asian gaming operator that’s not in Macau, and that could
Resorts World New York City and Resorts World Catskills, the Bahamas prove a crucial differentiation among rival aspirants.
30 INSIDE ASIAN GAMING DECEMBER 2018ASIAN GAMING
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5 Alvin Chau
CHAIRMAN
Suncity Group
CHAIRMAN AND EXECUTIVE DIRECTOR
Suncity Group Holdings
POWER SCORE: 2,247
POSITION LAST YEAR: 7
CLAIMS TO FAME
Heads Macau’s dominant junket promoter
Setting trend of expanding junkets into
casino ownership and operations
Highest ranked Macau native in city’s leading
industry
Suncity Group customers reportedly rolled HK$52 billion
(US$6.6 billion) in Macau during the October 1-8 Golden Week
holiday. More than ever, Alvin Chau’s team leads the Macau junket
parade, controlling upwards of half the market. Macau’s VIP rebound
over the past two years has brightened Suncity’s standing, and that
of Chau, arguably the top Macau native in the city’s top industry. But
these days, there’s much more to Suncity than Macau.
Suncity led the way into expanding both the geographic reach
and functional depth of junket services from Macau casino hosting to
wealth management and immigration, plus a website where you can
book a VIP spot in Manila or Melbourne. Now it’s leading the way into
casino ownership and operations. A filing by the listed company, previously a vehicle for Chau’s
There’s Vietnam, where Suncity owns 34% of the US$4 billion mainland property known as Sun Century, reveals Cambodia deal
Hoiana IR project in central Vietnam in partnership with Henry Cheng’s details. The project is excepted to open in early 2020 with a casino
Chow Tai Fook Enterprises and local investment fund VinaCapital. The measuring 120,000 square meters (1.3 million square feet) amid a
US$650 million first phase is due to open next year with some 1,100 550,000-square meter development that includes hotels, residences,
guest rooms, 200 condos, a golf course and a casino with 140 tables and retail and MICE. The contract grants Suncity rights to operate the
more than 1,000 electronic gaming machine positions. casino floor, cage and ancillary services, including food and beverage.
Union Gaming Group Managing Director in Macau Grant Suncity’s fee will be 3% of GGR paid monthly, plus 5% or 6% of
Govertsen suggests success as an owner in Vietnam could pave the gaming EBITDA, depending on whether margins exceed 20%.
way for Suncity to obtain a Macau gaming concession. Suncity has If the Sihanoukville casino has GGR of US$100 million at a 21%
already been linked to a takeover of Imperial Palace in Taipa, which margin, Suncity will receive US$4.26 million. At a 25% margin, it
had 550 rooms and Greek Mythology casino before it was shuttered would be $4.5 million and at 30%, $4.8 million. That’s not far from
in late 2015. the junket promoter’s take on equivalent VIP play in Macau.
Under its Hong Kong listed arm, Suncity Group Holdings, Chau’s stake in the listed company – Fame Select Limited,
separated from the junket business, Suncity has management and a 50-50 partnership between Chau and Cheng Ting Kong,
consulting contracts with Hoiana as well the Van Don IR project in chairman of Hong Kong-listed home furnishing manufacturer
northern Vietnam. In October, it announced a similar deal with and moneylender Imperium Group, owns 72% of Suncity Group
Golden Sun Sky, constructing a US$360 million casino-hotel in Holdings, plus convertible bonds – is valued close to US$400
Sihanoukville, the Cambodian shore resort town that’s become a hub million. According to filings, Chau also personally owns the 34%
of mainly mainland Chinese casino investment. stake in the Hoi An project.
DECEMBER 2018 INSIDE ASIAN GAMING 31You can also read
