GAMING: Freeman says that slowing down is a “sign of maturity”

2014-5-21

From：Macau Daily Times

The American Gaming Association president and CEO, Geoff Freeman, has said that it is not ideal to remain on an upward trend in terms of casino revenue, and that the fact that Macau’s casino industry might be slowing is actually “a sign of maturity.” He also suggested that, based on the Las Vegas experience, the factor that leads to success in diversifying the local economy is the development of the meeting, incentives, conference and exhibition (MICE) industry.
Geoff Freeman claimed that although people should not be complacent about the possibility that the local gaming industry’s development may be slowing down, neither is it healthy for it to grow continuously. “You don’t want to be on an upward trajectory like this all the time because, at some point, you are going to fall down. What you need is to go up and plateau, up and plateau. That’s a safe place to be. I think the fact that Macau may be slowing a bit is actually a sign of maturity. As the market diversifies as new products come online, then you will see that growth pick up again.” He believes that the slowdown is just part of the process.
Moreover, Mr Freeman said that the officials he met were very confident in regards to the continued success of Macau’s gaming industry, and that they had raised no major concerns. Nevertheless, he admitted that the situation has to be constantly monitored, something which he said that the companies and regulators here have already been doing.
He believes that each casino operator has reflected and acted upon a specific area of expertise. “You can see companies making that shift to a mass market; others [are] relying on the VIP market. That’s good, that’s part of the competition. Each [is] focusing on what they do best. And I think we will continue to see that shift and will see certain properties identified as perhaps more VIP-based properties – verse others in more [mass-based] properties.”
The CEO made these comments during the media briefing session of the Global Gaming Expo Asia 2014. During his speech, Geoff Freeman told the media that the development of non-gaming industries is critical to the growth of Macau.
He later told the Times that two-thirds of the revenue accrued in Las Vegas is from non-gaming activities, which demonstrates that the city has successfully diversified its economy. He believes that the most important factor is the development of the MICE industry. “As you bring in the meetings and the customers, their interests vary. Some are interested in gaming; some are interested in using the spa services; someone will play golf; some are [interested] in the restaurants. So I think that the MICE market and all aspects of it are critical to driving a successful non-gaming business.”
He believes that Macau is clearly an area of opportunity due to its facilities, and that it has an advantage over Las Vegas: its proximity to mainland China. “Any destination in the world would like to have what Macau has in terms of access to so many billions of people. That’s where this opportunity is so extraordinary,” the CEO concluded.

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