Who’s Ted Chan? He’s gaming giant Galaxy Entertainment Group’s chief operating officer for Japan. In other words, if you want to know about the imminent world of “integrated resorts” in Japan, he’s the man to talk to. An integrated resort is a resort which has a casino integrated with it – a response to Japan’s recent change in gambling laws that will let the big casino operators get a foothold in the country. Japan is a potentially lucrative market – it’s got an aging population, lots of money, and no established competitors. Mr. Chan recently spoke to The Japan Times to explain his company’s interest in the country.
As the trade war between China and the US intensifies, Galaxy and its peers have suffered
Source: Yahoo Finance
Chan, a former financial manager, sees calculated risk, logic, and analysis, as being the key to conquering this new market. He told reporters: “This idea is a misconception, and it depends on how it’s defined. Of course there is risk-taking as a gambler. But as a company, Galaxy takes calculated risks. We create a platform and provide the tools so that customers can come in and enjoy their games. So if your risk is calculated, analyzed and planned, it’s not a risk after all.”
Chan is a veteran of the integrated resort world, having spent the last fifteen years operating within it. If anyone can calculate the risks around Japan’s nascent market, it’s him. Offering examples, he said: “I would say that (applying such skills) has been my greatest achievement over the course of my career. Managing a team of people from seven different countries to invent something that hadn’t been seen before in integrated resorts at one job,” as well as navigating the fall-out from the financial crisis, and building a casino with “the largest volume or revenue of its kind in the world.”
Discussing what the future may hold for Japan’s integrated resorts, Chan has a clear image of what they’ll look like. What is that image? In short, Asia. He told the Times: “Even in Japan, if you consider IR and gaming, many (look to) the U.S. and Las Vegas. But in the last 15 years, (everything) new has happened in Asia. A lot of our U.S. counterparts are actually coming to Asia to learn from Macao. Macao’s (gaming and IR industry is) nowadays five times bigger than Vegas. Outsiders don’t know that. If you work in Asia or in Macao in this industry for one year, it’s perhaps equal to five or 10 years in the U.S. because of the volume handling.”
Disclosure
Dominion holds Galaxy Entertainment Group in its Global Trends Luxury Fund.
Author: Theo Leworthy
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