MACAU BUSINESS
with the Rat Pack, Siegfried and Roy, and several other entertainers. Now, it is legendary for its concerts, fights and other major events. It also became very resort-based, with Mirage and MGM Grand, plus all those resorts that stretched the envelope. Then it became the retail capital, with the Forum Shops at Caesars and the Via Bellagio fashion mall.
Dining became very powerful, when it was all but
non-existent on a quality level as recently as 25 years ago. And, of course, we are taking all that now to spas, golf, nightlife, day life. All this speaks to the evolution of Macau over time and all this is perfectly aligned with who we are. There’s no one out here [in Las Vegas] that has the diversity of amenities that we do. We have the best shows, we own two arenas while our competitors have a grand total of zero, we have spas – all the right amenities. As a result of that, we have the largest market share of high-end gaming here. We have created, in the form of the City Center, the
largest green project that has ever been built and we have evolved design, architecture and operations to a new level.
Looking squarely within the future of Macau, the
city will focus, emphasise and demand of its operators to extend the boundaries of what they do and not simply build windowless casinos with tables and slots. There has to be much more to it. Newer generations of casinos are doing that and I think we will be part of a generation that takes that further.
In a US government diplomatic cable released
One of the business risks to evaluate is whether or not the government will be a constructive partner and allow you to do what you think is needed to generate a good financial return on the investment you are willing to make.
So far, has the government been a constructive
partner? Yes, we could say it has been a very good experience for us.
Sheldon Adelson likes that the government is pushing gaming operators to have more non- gaming amenities. The same applies to MGM China in Cotai? [That development path] is quite clear in Las Vegas. Let’s not make any mistake here. Macau is already
more successful than Las Vegas has ever been. In terms of its gaming revenue and its growth potential, it is vastly better off in the long term than Las Vegas. But there are parallels that I think bear examination. Las Vegas in many regards did begin along the same lines. Initially, casinos represented a big percentage of each property’s revenue and investment. Over time, we evolved into the current business model. Las Vegas first became the entertainment capital
30 FEBRUARY 2012
by Wikileaks, it is mentioned that MGM Resorts tried to sell its stake in MGM China during the 2008-2009 global financial crisis. Do you confirm that information? We never looked at that once.
No changes post-IPO
After a long process, MGM China was finally publicly listed in Hong Kong in June. That also meant Ms Ho reduced her stake in the company to 29 percent from 50 percent, while MGM Resorts’ slice went up to 51 percent from 50 percent, gaining management control. Have there been any operational changes since this restructuring? No change. We have expanded the board to accommodate the rules of the Hong Kong stock exchange but the executive committee remains the same size. The definition of duties between personnel is the same. Mr Bowie was the CEO before the change in ownership and he is still the CEO today. He has our full support. No changes whatsoever post- IPO, post the reorganisation of the ownership.
And any major changes in the role of Ms Ho, either on the operational or on the strategic side? None whatsoever. She is obviously still the managing director. She is a chairperson and she has the same level of responsibility in contributions as she had before the change.
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