Comments on: Wanna Double-Down On Macau Being Bigger Than Vegas?

By: Chris Carr

Chris Carr — Sat, 06 Oct 2007 05:07:03 +0000

Patrick,

Thanks for checking in.

Good points.

For now, as you note, supply has not created demand as the gaming industry so often does, but perhaps in time in Macau, that will change.

By: Patrick McGuire

Patrick McGuire — Sat, 06 Oct 2007 02:32:41 +0000

Shares of Wynn Resorts (WYNN) and Las Vegas Sands (LVS) took a hefty tumble a couple days ago. Those shares spent the better part of the last couple years skyrocketing. Now there’s a bit of concern about the Macau market. Turns out it’s a whole lot more tourists than they expected. They’re not seeing the big rush of high-rollers they thought they’d have. Could it be that the Venetian’s management at LVS misread the market or made a strategy error?

For the lest 20 years, Steve Wynn and the other masterminds of Las Vegas built up the mega-resorts as entertainment destinations and a place to go for more than just gambling. Turns out, if you make a place fun and photogenic, tourists come. Now they seem a little surprised that their guests are looking for more than just gambling. The artcle here: http://uk.reuters.com/article/consumerproducts-SP/idUKN0325942020071004 has a quote saying that “Visitors to the Venetian seem to be more leisure players, as opposed to more dedicated bettors. ” Who could be surprised when your resort’s attraction is a gondola ride through the canals of Venice? Hard-core gamblers are a strange sort. They tend not to care much about boat rides but more about the gambling. I believe they also tend to be pretty loyal, so it will take time for them to find their way over the the Venetian and form new lotalties. The big bettors will come in time, once the excitement dies down and it’s not just the new kid on the block. For now, it’s got novelty–a huge draw for leisure tourists.

My take on it? LVS knew what it was doing. They’re looking longer term than the company’s investors (or now-former investors?). They’re working on a market shift just like Vegas pulled off after the development of the Mirage.

By: Chris Carr

Chris Carr — Thu, 30 Aug 2007 03:29:23 +0000

Good points, Lonnie. Thanks for checking in.

By: Lonnie

Lonnie — Thu, 30 Aug 2007 03:10:40 +0000

I just spoke to Sandy, the lead singer for the house band at the Venetian, and she said it was complete chaos there. As with the opening of the Crown, they were so hell-bent on opening on a lucky and “auspicious day” so the Chinese would bet more that they did not take care of basics…

I do think the Venetian will now put pressure on the others to actually provide more services, food and entertainment….It is going to be a slow sell as only 40% of the retail shops in the Venetian have been rented so far….

But, Macau is about to change, and in a big way…

Me, I am back in the mainland at ZhongSHAN andf David turned down a contract in Macau to move on to ZhongKAI where Jacky, Ann, Kevin and Coffee study…

It is Much quieter here….