IAG December 2015

REGIONAL
BRIEFS
MGS 2015 also saw its floor space expand by 20% on the
previous year to around 12,000 square meters while boasting
representatives from all six of the world’s populated continents.
Mr Chun said, “The Macao Gaming Show has made a significant
step forward. The exhibition has signalled its intent to grow in
numbers and expand in sectors and the positive response from all
the exhibitors and visitors suggests that MGS must continue with
its vision through 2016 and beyond.
“The show saw major innovations on the floor from both the
gaming and entertainment sectors; key product launches across
the board; a strong input from the Macau concessionaires and the
local business community; an increasing overseas contingent; and
notable commitments to sign up for 2016.
“Equally important is the impression MGS and the Macao Tourism
and Culture Summit left on our key partners at the Macau SAR
Government. MGS 2015 proved that Macau can really make its mark
on the international stage through both quality trading opportunities
and ideas and debate that will drive the industry forward.”
“Our task – which starts immediately – is to build on the success
of 2015 and push forward with the show’s development as one of
the world’s ‘must attend’ gaming events.”
MGS has announced that the fourth edition of the show, to take
place from 15 to 17 November 2016, would include a greater focus
on Macau’s growing mass market segment.
Melco-Crown reaches agreement
to amend loan terms
Melco-Crown Entertainment Ltd and its partners have reached an
agreement with lenders to amend the terms of a US$1.4 billion
project loan for its recently opened Studio City integrated resort
in Macau.
Due in January 2018, Melco Crown stated in a filing to the US
Securities and Exchange Commission that it “has received the
requisite lender consent to amend the loan documentation as
proposed by the Studio City borrowing group.
“The amendments … include changing the Studio City project
opening date condition from 400 to 250 tables, consequential
adjustments to the financial covenants, and rescheduling the
commencement of financial covenant testing.”
Melco Crown required consent from more than 50% of lenders,
which include Bank of China Ltd and the Industrial & Commercial
Bank of China Ltd, to be granted the amendment.
Studio City opened its doors on 27 October 2015 with 200 newto-market
gaming tables, with another 50 becoming available for
use from January. It also announced that it would operate with no
VIP tables – opting instead to focus on the growing mass market
segment which provides better margins on its tables.
The decision is also in line with the property’s array of nongaming
attractions which show a clear desire to diversify beyond
the gaming floor. They include a Batman Dark Flight magic motion
ride, Franz Harary’s House of Magic, a 5,000 seat multi-purpose
arena and the Golden Reel – a figure eight Ferris wheel starting 23
stories high.
Macau’s casinos wouldn’t have even contemplated having no
VIP gaming 12 months ago but with the VIP segment continuing
to shrink on the back of the Chinese Central Government’s anticorruption
crackdown, the reliance on high rollers isn’t what it
used to be.
It “should work,” said Union Gaming Securities Asia
analyst Grant Govertsen. “VIP as it stands today is approaching
meaningless as a percentage of profits.”
International Poker Open
spreads its wings
The latest poker tour to try and make its mark in Asia, the
International Poker Open (IPO), held its first-ever Philippines event
in November having previously operated solely in South Korea.
IPO, which is owned by Allwinstar Entertainment based in
Maryland, USA, held its first event in Jeju last December and its
second, also in Jeju, in May this year. However, it recently signed
a three-year agreement with Resorts World that will see it run
tournaments in Resorts World properties with Manila the first to
welcome the fledgling tour.
Resorts World has properties in Singapore and the Philippines
while Resorts World Jeju is currently under construction and due to
open in 2017.
IPO is also in talks with Resorts World’s parent company
Genting Group to take the tournament series international. Genting
Group’s casino empire includes multiple locations across the USA,
the UK and the Caribbean among others.
The biggest challenge for IPO will be finding its niche in the
already crowded Asian poker calendar. Tournament poker in the
region has traditionally been dominated by the Asian Poker Tour
(APT) and the Asia Pacific Poker Tour (APPT) while the popular
World Poker Tour (WPT) has also made moves into Asia in recent
years with events in Manila and Sanya.
Nevertheless, the partnership with Resorts World could prove
hugely beneficial in helping IPO gain a foothold – particularly given
the fact that none of its rivals currently has a stop in Singapore.
Poker in Asia has been gradually breaking boundaries in recent
times with Vietnam’s first ever international poker festival, APT
Vietnam, held at Ho Tram Resort Casino in May followed by the
country’s first home grown poker series – the Vietnam Poker Cup
– in August.
IPO3 at Resorts World Manila has a busy seven day schedule
boasting 16 events in its first foray outside South Korea.
December 2015 inside asian gaming 43