Inside Asian Gaming

IAG JAPAN APR 2020 30 “The daily cash burn for leading operators during COVID-19 closures was reported as US$3 million to US$4 million per day which is a real burden on the balance sheet and something to be mindful of going forward. “Not unlike the Global Financial Crisis in 2008-09, the latest crisis to hit Macau will present each gaming operator with an ideal opportunity to reengineer its internal processes and simplify its organizational structures. “A crisis can shock a business into taking action that may not have been previously considered. During a period of sustained growth organizations frequently suffer from increased layers of complexity and costs that can choke the business. There’s no time like the present to look much closer at all casino resort operations in realizing cost efficiencies, while also mapping customer journeys in more detail to improve the effectiveness of customer facing operations, particularly with competition likely to intensify.” Ultimately, says Clayton, the coronavirus pandemic will serve as a test not only of the financial resolve of operators but also the values by which they stand – a potentially key attribute forMacau’s six concessionaires as they prepare for their next big challenge: the re- tendering of gaming licenses. “The world will have changed post COVID-19,” Clayton explains. “Gaming operators are members of a global community and central to the local community in which they operate. Actions taken by each resort and gaming operator during a crisis are judged immediately through social media and news channels. “Gaming companies and resort brands are beacons during a crisis and this is much more than simply being local employers. Pride in resort brands is significantly enhanced when witnessed as having values that are consistent with being caring and inclusive. “Successful resort brands go that extra mile in protecting their employees, supporting local communities and putting longer term brand health ahead of short term profits.” COVER STORY