MGM National Harbor has been an unqualified success in the Maryland casino market. The closest casino to Washington, D.C.—you can actually see the monuments from the deck of the hotel’s podium—National Harbor quickly took the top spot in the revenue race. Bill Boasberg, the general manager of MGM National Harbor, explains how it involved more than “build it and they will come.” The company had to understand the market and respond to its demands quickly after opening, or all would be lost. He spoke with GGB Publisher Roger Gros at the National Harbor property on the shores of the Potomac River early in the summer.

GGB: You’ve been open less than a year and are already dominating the Maryland market. That isn’t a coincidence, is it?

Bill Boasberg: We’re getting better every single day. The business is stabilizing every day. Our service is getting better every day, we’re learning about our customers every single day. When you open something this big, you can do a lot of planning but there will always be things you could have done better. So we’re making tweaks to things that we think we can do better. And we’re listening to our customers, and our company gets great feedback and surveys from our customers, so we’re better able to make adjustments based on the customer feedback. So, we’re real pleased with where we are right now.

How long did the curiosity factor last? And now have you determined who your core customers are?

Probably the first 90 days we had a lot of people really just walking through, coming to see the place. And while it’s not quite as crowded as it was in the first 90 days, the people are still coming to enjoy the restaurants, go to the shows, spend time in the casino, and so forth. And it’s good that it’s not as packed as it was in the first 90 days, because now people who are here can breathe and enjoy the space. Obviously, it’s easier to service the customers, and you can get a better handle on the crowd. We recently had our first concert out on the plaza, and we thought it created a great vibe and energy on the property. I think we’ll continue to be busy. A lot depends on what shows we have, special events and entertainment. And our convention business on property now is really taking off, and so, we’re in a good place.

You have a beautiful 3,000-seat showroom. How has that worked so far?

It’s been fantastic. We do a couple shows a week—sometimes three or four. I don’t think there’s been one show that hasn’t sold out. And we’ve had great acts in here so far—Bruno Mars, Stevie Wonder, Sting, Billy Crystal and others. So we have had comedians and concerts, and we had our first Vietnamese Asian act and it was a huge success. It sold out, and we had people waiting in the lobby, in the conservatory, to get in the show.

You have a very good Asian business—a full pit of baccarat tables. Is that a core business of yours?

It sure is. In our Asian pit, we have 16 midi-games, and we also have midi- and mini-bacc in our high-limit area. Within a 10-mile radius, there are about a quarter of a million Asians, so obviously it’s a core focus of ours. It’s been very successful, and we think it will grow even more.

As the name implies, MGM is in National Harbor, adjacent to an area that was really built around conventions and meetings, with the Gaylord Hotel as the flagship, really a meetings and convention hotel. How do you work with that facility?

Our facility is more intimate, more high-end than the Gaylord. We have about 40,000 square feet of convention space. The Gaylord has 500,000—one of the largest on the East Coast. We have a very good, positive relationship with Gaylord. If there’s a big group—and their groups are generally large-scale—which we could not put on, they’ll come over here, they’ll do dinners or break-out meetings in our rooms or theater. We’ve established a great relationship with Gaylord since we came to town, and we consider them a partner of ours.

Let’s talk about ga

MGM National Harbor has been an unqualified success in the Maryland casino market. The closest casino to Washington, D.C.—you can actually see the monuments from the deck of the hotel’s podium—National Harbor quickly took the top spot in the revenue race. Bill Boasberg, the general manager of MGM National Harbor, explains how it involved more than “build it and they will come.” The company had to understand the market and respond to its demands quickly after opening, or all would be lost. He spoke with GGB Publisher Roger Gros at the National Harbor property on the shores of the Potomac River early in the summer.

GGB: You’ve been open less than a year and are already dominating the Maryland market. That isn’t a coincidence, is it?

Bill Boasberg: We’re getting better every single day. The business is stabilizing every day. Our service is getting better every day, we’re learning about our customers every single day. When you open something this big, you can do a lot of planning but there will always be things you could have done better. So we’re making tweaks to things that we think we can do better. And we’re listening to our customers, and our company gets great feedback and surveys from our customers, so we’re better able to make adjustments based on the customer feedback. So, we’re real pleased with where we are right now.

How long did the curiosity factor last? And now have you determined who your core customers are?

Probably the first 90 days we had a lot of people really just walking through, coming to see the place. And while it’s not quite as crowded as it was in the first 90 days, the people are still coming to enjoy the restaurants, go to the shows, spend time in the casino, and so forth. And it’s good that it’s not as packed as it was in the first 90 days, because now people who are here can breathe and enjoy the space. Obviously, it’s easier to service the customers, and you can get a better handle on the crowd. We recently had our first concert out on the plaza, and we thought it created a great vibe and energy on the property. I think we’ll continue to be busy. A lot depends on what shows we have, special events and entertainment. And our convention business on property now is really taking off, and so, we’re in a good place.

You have a beautiful 3,000-seat showroom. How has that worked so far?

It’s been fantastic. We do a couple shows a week—sometimes three or four. I don’t think there’s been one show that hasn’t sold out. And we’ve had great acts in here so far—Bruno Mars, Stevie Wonder, Sting, Billy Crystal and others. So we have had comedians and concerts, and we had our first Vietnamese Asian act and it was a huge success. It sold out, and we had people waiting in the lobby, in the conservatory, to get in the show.

You have a very good Asian business—a full pit of baccarat tables. Is that a core business of yours?

It sure is. In our Asian pit, we have 16 midi-games, and we also have midi- and mini-bacc in our high-limit area. Within a 10-mile radius, there are about a quarter of a million Asians, so obviously it’s a core focus of ours. It’s been very successful, and we think it will grow even more.

As the name implies, MGM is in National Harbor, adjacent to an area that was really built around conventions and meetings, with the Gaylord Hotel as the flagship, really a meetings and convention hotel. How do you work with that facility?

Our facility is more intimate, more high-end than the Gaylord. We have about 40,000 square feet of convention space. The Gaylord has 500,000—one of the largest on the East Coast. We have a very good, positive relationship with Gaylord. If there’s a big group—and their groups are generally large-scale—which we could not put on, they’ll come over here, they’ll do dinners or break-out meetings in our rooms or theater. We’ve established a great relationship with Gaylord since we came to town, and we consider them a partner of ours.

Let’s talk about gaming. Your slot VP (Alex Alvarado

The Sands China empire in Macau is vast and varied. The leadership of the company requires knowledge of all the elements of an integrated resort. And Sands China has multiple IRs. Dr. Wilfred Wong was appointed president almost two years ago, marking the first time an ethnic Chinese was put in charge. Wong has presided over the construction and opening of the Parisian, the latest must-see attraction in Macau. Wong met with GGB Publisher Roger Gros at his offices in the Venetian in May.

GGB: Explain what impact the opening of the Parisian has had on the other Sands China hotels, and on the company as a whole.

Wilfred Wong: This latest addition to the Cotai properties really complements what we already have. The Parisian is a themed resort and particularly targets the mass market. We think that’s where the growth is, and the performance of Parisian after its opening testifies that this is the right approach. We have a retail mall that is targeted at fashion. We have another 14 to 15 F&B outlets. And of course, we have all kinds of non-gaming amenities. We built a half-size replica of the Eiffel Tower. We have a themed swimming pool, and a children’s play area.

What people normally worried about is whether there’ll be any cannibalization of the business, and in fact, what we saw was, there was no cannibalization. There was a net increase in our business volume, the revenue, as well as the overall growth of the Cotai property.

What has been the reaction of the customers to the property?

The reaction has been good, because we really targeted this property as an affordable luxury. It is luxurious but also affordable. And a lot of the visitors come for the MICE business. They like the theme, they like the public space, they also like the gaming and non-gaming facilities. And a lot of them like the restaurant in the Eiffel Tower, which is unique.

How did you handle staffing the resort?

We have a mix of about two-thirds experienced staff, and one-third newly recruited. So, of the 6,000 employees, 4,000 had worked in our properties before. And this really gave us the opportunity of assembling a very effective team, from day one. We started training six months before opening, so, from day one, there were very few hitches.

Let’s talk about the rebound of revenue in Macau. Luckily, Sands China wasn’t hurt as badly as some of the other properties, because you didn’t depend on the VIP market as heavily as some of the other properties did. Now that it’s coming back, where do you see most of your revenue coming from?

The mass market is still very much the growth area. The market has been growing very fast, and we grow faster than the general market. So, we are focusing still a lot on the mass market, where the contribution to profit is better. But, we never forget about the VIP segment, which is equally important. We remain very competitive. We still try to improve our services to our VIP customers. So I would say that we’re trying to cover both the VIP and the mass segments, but obviously, with all the non-gaming facilities available, we have a better chance of growing the mass market than the other competitors.

The Hong Kong-Macau-Zhuhai bridge is getting close to completion. When the bridge opens, how do you expect that to operate, in terms of how the ferries have operated in the past?

We are in constant touch with the Macau government. I think at this stage, they are still talking to the Hong Kong government on how the bridge would operate. I envisage that there will be a limit on the number of private vehicles being allowed into Macau, because Macau is a small place, but there should be licensed shuttle bus routes, which will be able to take passengers straight from the Hong Kong airport to Macau. And hopefully, that is going to overcome one of the major hurdles that the MICE event organizers normally face, and that is you have to clear customs twice.

I think Zhuhai is going to be another important

The Sands China empire in Macau is vast and varied. The leadership of the company requires knowledge of all the elements of an integrated resort. And Sands China has multiple IRs. Dr. Wilfred Wong was appointed president almost two years ago, marking the first time an ethnic Chinese was put in charge. Wong has presided over the construction and opening of the Parisian, the latest must-see attraction in Macau. Wong met with GGB Publisher Roger Gros at his offices in the Venetian in May.

GGB: Explain what impact the opening of the Parisian has had on the other Sands China hotels, and on the company as a whole.

Wilfred Wong: This latest addition to the Cotai properties really complements what we already have. The Parisian is a themed resort and particularly targets the mass market. We think that’s where the growth is, and the performance of Parisian after its opening testifies that this is the right approach. We have a retail mall that is targeted at fashion. We have another 14 to 15 F&B outlets. And of course, we have all kinds of non-gaming amenities. We built a half-size replica of the Eiffel Tower. We have a themed swimming pool, and a children’s play area.

What people normally worried about is whether there’ll be any cannibalization of the business, and in fact, what we saw was, there was no cannibalization. There was a net increase in our business volume, the revenue, as well as the overall growth of the Cotai property.

What has been the reaction of the customers to the property?

The reaction has been good, because we really targeted this property as an affordable luxury. It is luxurious but also affordable. And a lot of the visitors come for the MICE business. They like the theme, they like the public space, they also like the gaming and non-gaming facilities. And a lot of them like the restaurant in the Eiffel Tower, which is unique.

How did you handle staffing the resort?

We have a mix of about two-thirds experienced staff, and one-third newly recruited. So, of the 6,000 employees, 4,000 had worked in our properties before. And this really gave us the opportunity of assembling a very effective team, from day one. We started training six months before opening, so, from day one, there were very few hitches.

Let’s talk about the rebound of revenue in Macau. Luckily, Sands China wasn’t hurt as badly as some of the other properties, because you didn’t depend on the VIP market as heavily as some of the other properties did. Now that it’s coming back, where do you see most of your revenue coming from?

The mass market is still very much the growth area. The market has been growing very fast, and we grow faster than the general market. So, we are focusing still a lot on the mass market, where the contribution to profit is better. But, we never forget about the VIP segment, which is equally important. We remain very competitive. We still try to improve our services to our VIP customers. So I would say that we’re trying to cover both the VIP and the mass segments, but obviously, with all the non-gaming facilities available, we have a better chance of growing the mass market than the other competitors.

The Hong Kong-Macau-Zhuhai bridge is getting close to completion. When the bridge opens, how do you expect that to operate, in terms of how the ferries have operated in the past?

We are in constant touch with the Macau government. I think at this stage, they are still talking to the Hong Kong government on how the bridge would operate. I envisage that there will be a limit on the number of private vehicles being allowed into Macau, because Macau is a small place, but there should be licensed shuttle bus routes, which will be able to take passengers straight from the Hong Kong airport to Macau. And hopefully, that is going to overcome one of the major hurdles that the MICE event organizers normally face, and that is you have to clear customs twice.

I think Zhuhai is going to be another important link, because the high-speed rail i

The GGB Podcast features a discussion with David Lopez, the president and CEO and Julia Boguslawski, the vice president of marketing, for the gaming equipment manufacturer, AGS, on how the company is doing things differently for its customers.

The GGB Podcast features a discussion with David Lopez, the president and CEO and Julia Boguslawski, the vice president of marketing, for the gaming equipment manufacturer, AGS, on how the company is doing things differently for its customers.

Lawrence Ho has been a major player in Macau and other Asian gaming markets since before the handover of Macau to China in 2002. He formed Melco International to forge his own casino company in partnership with Crown Resorts. The recent departure of Crown from the joint venture means a new era for Ho and Melco. Ho spoke with GGB Publisher Roger Gros from his offices in Hong Kong in May.

GGB: Tell us about the recent departure of Crown as co-owners of your company.

Lawrence Ho: We think it is the conclusion of the most successful gaming partnership ever, because in the gaming space, there aren’t many partnerships that last very long. And most of the time, when they end, they end in very bitter disputes and major lawsuits. James (Packer, Crown executive chairman) and I are still great friends. We’re both young. We’re both optimistic about the future, and we still might do something down the road together. So, who knows?

But at the same time, for Melco and myself, it’s extremely exciting. Because I really see the market turning around, not just in Macau, but literally, in all markets driven by Chinese economies and China’s export of tourism.

We just got a chance to see Studio City for the first time and it’s a pretty spectacular property. How is that performing now?

Studio City is doing much better. Studio City opened in October 2015 at a time where Macau was going through a much tougher time. And so if you look at Studio City, and the company that opened before, the Galaxy Phase 2, both of those properties really opened during some kind of tough times in Macau. Studio City is doing better.

But Studio City’s main investment thesis was always based on the coming of Lotus Bridge, which is the second border gate between China and Macau. But today you see the footbridge that the Macau government is currently building is not completed. And between us and the immigration building, the government is also building a massive light rail station. And so, the Lotus Bridge, which was supposed to be the most popular route to Studio City, is still blocked, and it has been blocked since its opening. Hopefully, sometime in the second half of this year it will be completed.

The new tower at City of Dreams also looks pretty spectacular. What’s the opening date on that tower?

Morpheus Tower, which is the last phase of City of Dreams, is due to open before next April. We’re less than a year away, and we really look at the opening as CoD 2.0. When City of Dreams opened in 2009, it was a very different market, and a different property, but over the last few years, we’ve solidified our position as the top premium mass and premium direct property. And with the unveiling of Morpheus, it really completes the retail loop, and we’ve done a lot of work on upgrading and improving the retail proposition. And so, it’s a significant moment for City of Dreams.

We’re very proud that this was one of the last properties designed by the late Zaha Hadid. She was amazing. But at the same time, what she designed was very difficult to build, and that’s why it’s taken as long as we have, and really taken a lot of resources, capital and expertise.

You mentioned the rebound of the gaming revenues in Macau. What do you think is driving this?

First of all, mass-market, for the last 12 months, has already taken over. Mass has taken over. It’s over 50 percent of the revenue. Since mass is four times as profitable as VIP, for operators, that’s very significant. And I don’t see that trend going away.

Deep down, when you look at Melco Resorts, it really is a company that is focusing on the growing middle class. We think of ourselves as pioneers, focusing on the growing middle class of the world. That’s really what this company is about. And we’ve had this feeling over the last 10, 12 years, which is, China is going to be the biggest contributor to that growing middle class, and we should take advantage of that.

A few years ago, Macau CEOs kep

Lawrence Ho has been a major player in Macau and other Asian gaming markets since before the handover of Macau to China in 2002. He formed Melco International to forge his own casino company in partnership with Crown Resorts. The recent departure of Crown from the joint venture means a new era for Ho and Melco. Ho spoke with GGB Publisher Roger Gros from his offices in Hong Kong in May.

GGB: Tell us about the recent departure of Crown as co-owners of your company.

Lawrence Ho: We think it is the conclusion of the most successful gaming partnership ever, because in the gaming space, there aren’t many partnerships that last very long. And most of the time, when they end, they end in very bitter disputes and major lawsuits. James (Packer, Crown executive chairman) and I are still great friends. We’re both young. We’re both optimistic about the future, and we still might do something down the road together. So, who knows?

But at the same time, for Melco and myself, it’s extremely exciting. Because I really see the market turning around, not just in Macau, but literally, in all markets driven by Chinese economies and China’s export of tourism.

We just got a chance to see Studio City for the first time and it’s a pretty spectacular property. How is that performing now?

Studio City is doing much better. Studio City opened in October 2015 at a time where Macau was going through a much tougher time. And so if you look at Studio City, and the company that opened before, the Galaxy Phase 2, both of those properties really opened during some kind of tough times in Macau. Studio City is doing better.

But Studio City’s main investment thesis was always based on the coming of Lotus Bridge, which is the second border gate between China and Macau. But today you see the footbridge that the Macau government is currently building is not completed. And between us and the immigration building, the government is also building a massive light rail station. And so, the Lotus Bridge, which was supposed to be the most popular route to Studio City, is still blocked, and it has been blocked since its opening. Hopefully, sometime in the second half of this year it will be completed.

The new tower at City of Dreams also looks pretty spectacular. What’s the opening date on that tower?

Morpheus Tower, which is the last phase of City of Dreams, is due to open before next April. We’re less than a year away, and we really look at the opening as CoD 2.0. When City of Dreams opened in 2009, it was a very different market, and a different property, but over the last few years, we’ve solidified our position as the top premium mass and premium direct property. And with the unveiling of Morpheus, it really completes the retail loop, and we’ve done a lot of work on upgrading and improving the retail proposition. And so, it’s a significant moment for City of Dreams.

We’re very proud that this was one of the last properties designed by the late Zaha Hadid. She was amazing. But at the same time, what she designed was very difficult to build, and that’s why it’s taken as long as we have, and really taken a lot of resources, capital and expertise.

You mentioned the rebound of the gaming revenues in Macau. What do you think is driving this?

First of all, mass-market, for the last 12 months, has already taken over. Mass has taken over. It’s over 50 percent of the revenue. Since mass is four times as profitable as VIP, for operators, that’s very significant. And I don’t see that trend going away.

Deep down, when you look at Melco Resorts, it really is a company that is focusing on the growing middle class. We think of ourselves as pioneers, focusing on the growing middle class of the world. That’s really what this company is about. And we’ve had this feeling over the last 10, 12 years, which is, China is going to be the biggest contributor to that growing middle class, and we should take advantage of that.

A few years ago, Macau CEOs kept telling us that Macau has only penetr

The GGB Podcast sits down the Steve Walther, the senior director of product management and marketing for Konami Gaming on the changing world in slot manufacturing.