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CEO Interview
still very supportive. As long as we continue to have support, the next 10 years will be vital for us, to make sure the entire infrastructure will be in place ahead of everybody else in the game. We [the gaming operators] should not be competing with each other here. There is no point. All six of us have a lot of space to grow. We are all still growing. Competition, for us, is not to compete with each other, but to compete with the region. Is there a lack of cooperation among the operators here? The association established in 2009 to gather the six casino companies together is inactive.
Desirably, we would like to have an official body to represent us. But that doesn’t mean we are not talking among ourselves. We are. On each level, we do have very good communication among the six of us. It could be better, but it doesn’t mean we are not talking. There are certain reasons why an official body should be established: to make sure some common interests of the industry can be discussed on a more official platform. But it is going to take some time. Are you looking for investment opportunities elsewhere in Asia? Officials of the Philippine Amusement and Gaming Corp have said your company has expressed interest in their country.
We keep exploring. I would be silly to say that we are not interested. Of course we are. It is all a matter of allocation of resources. Our return on investment at StarWorld is 99 percent. Galaxy Macau is giving us a return of 42 percent. I am still unable to find any other market able to give us that kind of sustainable growth. Which jurisdictions are more appealing in Asia?
We would probably be interested in the whole sector. It very much depends on our reading of a lot of parameters such as political risk, policy risk or customer risk. Right now, I haven’t seen any legislation coming out officially in Japan or Taiwan. It is a bit premature to show interest. MARCH 2013
In Korea, we have been asked to go to have a look – not now, many years ago. So far we are still saying no because we don’t see that as a major market, as only foreigners can gamble. Vietnam is the same.
INTEREST IN HENGQIN
What about Hengqin Island? You have previously mentioned interest in non-gaming investment there.
that one day we will hopefully land in Hengqin. In Macau, there are four thirdparty-promoted casinos operating under your gaming licence, the so-called City Clubs. Among them, the Grand Waldo has been underperforming. Owner Get Nice Holdings Ltd tried to sell it last year. Are you worried?
Hengqin is definitely a place we should be interested in because it is close by Macau. One thing that, unfortunately, Macau doesn’t have enough of, is land. If you are looking to the non-gaming side of the business, you probably see that Hengqin could add a lot of strength to promote Macau as a world entertainment destination. We continue to be interested in Hengqin.
I am not a shareholder in Grand Waldo. I am not in a position to make any comments. We are still their partners and we will try our best to help them to get on the right track. I am not a decision-maker there, so I can only support.
When can we expect a decision?
No. Why do we have to take tables? We have always been on good terms. We just got another 50 tables from the government. There is no urgent need to take tables back.
We continue to hold conversations with the Hengqin authorities. It is a matter of gaining common understanding on whether we could be able to do certain things together. I continue to be optimistic
FAMILY VALUES F
rancis Lui Yiu Tung says entering the Macau casino market was a game-changer for the business empire established by his father Lui Che Woo in 1955. His father put him in charge of the family’s gaming interests last year. Mr Lui says this does not mean any change at Galaxy Entertainment Group Ltd, where he is deputy chairman. “I don’t see that our organisation needs to be changed any time soon. So far the system, the hierarchy and the structure is working well for us,” he says. “We come from a very traditional Chinese family. We always respect our older generation. They are wiser and older than us, and we listen. But in the day-to-day operations, we must take more control. That is how we will be in the future.”
Have you taken, or are you considering taking back gaming tables from the Grand Waldo or any other City Club?
City Clubs were important for Galaxy Entertainment for a period. Do you perceive that period may be over?
The City Club model needs to evolve. The market is evolving and so is Galaxy Entertainment. City Clubs should evolve to make sure they find a competitive edge to survive. Certain City Clubs are still thriving. It is a matter of whether these people are able to take advantage of the situation and get better. What are your first impressions on the partial ban on smoking inside casinos, imposed in January?
This is progress that we are making. People want this to happen. At the same time, we are still implementing it. It is premature to say whether we need to do more or less. We should be a little bit more patient and hear all segments of the market. At the end of the day, nobody wants to see that, by having a thorough ban on smoking in casinos, suddenly all business goes away. Do you want to see it happening here, when all these new investments are coming into place? We have to be prudent.