MACAU BUSINESS
interested as they have a better understanding about slot machines due to their background.” What Mr. Zhang did reveal was that they planned to open three more similar parlours for high rollers within the year, and did not rule out the possibility of running the new VIP rooms with other junket operators. They also envisaged strategic co- operation with some slot manufacturers to further promote this VIP gaming model, he added. A gaming industry figure, declining to publicly comment on his peers, said the industry “wishes well” the new model. “If the operation proves a success, it’s good news for the industry under these current market conditions,” the insider said. “But I don’t think it will help much in leading the segment to recovery as there’s still a large gap between baccarat tables and slots [in terms of revenue].” Odds are also against Mr. Zhang as some
studies have repeatedly shown that mainland gamblers behave differently to other gamblers, preferring to play baccarat tables more. Slot revenues made up nearly half of the total gaming revenue on the Las Vegas Strip in 2015, according to the Centre for Gaming Research at the University of Nevada, Las Vegas, vis-à-vis a mere five per cent share in Macau. Despite the present lack of interest of Mainland high rollers in slots, Carlos Siu Lam, associate professor of gaming research at
of China’s rich was changing. “[Wealth] creation in China is changing from ‘resources and relationship-based’ in the last five years, as in the coal mining and property industries, to ‘innovation and entrepreneurial-based’, as in the Internet and consumer services, in the next five years,” she said. Acknowledging the failure of slots in
Macau Polytechnic Institute, pointed out that the portfolio of mainland gamblers was evolving. “In the past the rich on the mainland usually came from sectors like manufacturing,” he said. “Their knowledge level is different to the second wave of rich coming out from the mainland now.”
Simple faith
Slots might not have appealed to mainland gamblers in the past but this could change under current market conditions, Prof. Siu noted. “It’s helpful to the sustainable development of the [junket] sector when they are diversifying their products from baccarat tables to catering to the evolving portfolio of gamblers,” he said. Deutsche Bank gaming analyst Karen Tang also said in a report last year that the structure
attracting big mainland spenders in the past, Mr. Zhang believes it was not due to the appetite of the gamblers. “When mainland gamblers come to Macau, the junkets will guide them to play at baccarat tables even though some of them prefer slots. [The junkets] could not get commissions if they played slots,” he explained. “It was also inconvenient for high rollers interested in slots [in the past] as no-one would extend them credit to play for a long time.”
In further promoting slots among Mainland gamblers, Mr. Zhang said they were developing a mobile application, in which users could learn more about the rules and fun of playing slots. The application could be launched this year, he added.
Looking ahead, he was confident that the
Grand Prize club could be a dark horse in the ever-changing gaming market. His confidence is rooted in a simple faith. “The Central Government or the Macau Government will not let the junket sector here keep deteriorating,” he said. “They might introduce some new measures this year.”
22 MAY 2016
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