THE MACAU METRO MONITOR, FEBRUARY 24, 2014
SANDS, MGM COURT HIGH-STAKES GAMBLERS TO CUT JUNKET TIES Bloomberg
MGM China wants to develop its own customers to help manage risks, said Bowie, the company’s CEO. “The junket model is a very successful model in terms of efficiency but we need to diversify,” he said. “No organization should limit themselves to one geographic market or one business strength. It’s too high risk...Direct VIPs give us considerably higher profit margins.”
Meanwhile, LVS is trying to bypass the middlemen by putting its fleet of private jets and limousines at high-rollers’ disposal, night and day, and comps their stays in suites that run to 8,000 square feet and come with on-call concierges.
Junket operators, led by Suncity Group and Jimei Group, have a steady grip on the industry. Still, some are feeling the pressure. “We are being squeezed (by direct VIPs),” said Yu Yio Hung, who operates a single VIP room at Altira casino. SJM relies entirely on junkets to bring in their VIPs and currently has no plan to change its full reliance. “SJM is comfortable with our junket relationships and with the junket system, which operates legally in Macau,” CEO Ambrose So said.
MACAU VISITOR ARRIVALS DSEC
As the Lunar New Year falls on January this year, visitor arrivals totaled 2,503,609, up by 8% YoY, attributable to an increase in visitors from Mainland China. Mainland visitors totaled 1,689,277, with 832,381 (49% of total) traveling to Macao under the Individual Visit Scheme. The average length of stay of visitors stood at 1.0 day.
LAS VEGAS SANDS' ADELSON READY FOR BIG INVESTMENT IN JAPAN WSJ
"We will spend whatever it takes," said LVS CEO Sheldon Adelson. "Would I put in $10 billion? Yes." Asked whether he would team up with Japanese companies, Adelson said he would be "willing to embrace Japanese partners" if they can hold up their share of the work and adopt a risk-taking mentality. He said he would be interested in opening a resort in either Tokyo or the western Japanese city of Osaka, and that his company would be hiring people in Tokyo to expand its presence.
Proponents of gaming hope Japan will start licensing casinos in 2016 and have at least one in operation before the 2020 Summer Olympics in Tokyo.
