In this interview with CalvinAyre.com’s Becky Liggero, Kevin Klayton of Galaxy Entertainment gives his insights on how casino operators may be able to attract high rollers into their integrated resorts.
Macau’s revenue has been steadily recovering after China’s corruption crackdown and slowing economy hit the market for more than two years.
Though the recovery in Macau has been a mass-led, much of Macau’s gain can be attributed to the return of the VIP gamblers. Despite China’s efforts to curb capital outflows, high rollers have shown an increasing confidence in spending money in Macau.
“Over the last quarter, we’ve obviously seen growth in the VIP market, we are encouraged by that,” Kevin Klayton of Galaxy Entertainment group told CalvinAyre.com. “Obviously we are awaiting for another quarter’s results which will be out. We are cautiously confident that we have sustainable growth in the market.”
Recognizing the importance of the VIP business, Klayton stressed that casino operators need to come up ways in order to capture the returning VIP gamblers in Macau.
Klayton said casino operators may be able to lure them to their integrated resorts by showing them that their facility is the preferred destination of gamblers.
“To a certain degree, you are dependent on junket operators and there has been some growth in the premium business, which is obviously you have your own rolling customers and therefore people are voting with their feet or with their money in terms of coming into your particular property based on preference,” he said.
Meanwhile, Klayton said that many big operators are keeping a close watch on Japan as it opens up its country to casinos.
He likened the anticipation toward the opening of the Japanese casino market to Singapore since all of the big operators are in play.
“I am looking at it with interest because I’ve been involved in a pitch before in Singapore with Tabcorp back in 2002 and 2003. It’s the case of how you are going to get close to that market,” Klayton said. “How close you are going to get to the regulator, and how close you are going to get to the government. At the end of the day, you are going to be talking their story and not your story. They haven’t necessarily told us everything that they are looking for but they will do overtime.”
