# Baccarat boost for Las Vegas operators with Asian footprint
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HVS International Inc. says Las Vegas is well positioned for growth with the opening of new properties and an increase in Baccarat revenues. This is "a branch of operators that take advantage of Asian marketing opportunities."

But Las Vegas will have to benefit from the growing number of Chinese tourists visiting the United States and "continue to adapt its language, products and services to suit the Chinese market," said HVS, a consulting and services company focused on hospitality, gaming and leisure industries.

According to data from the U.S. National Travel and Tourism Administration, the number of Chinese tourists visiting the United States as a whole rose 23 percent to 1.81 million. Chinese visitors accounted for 2.6 percent of the number of visitors in 2013.

According to the Las Vegas Visitor Profile Study 2013 published by the Las Vegas Convention and Visitors Bureau, the proportion of Las Vegas tourists who identify themselves as Asian or Asian American increased from 2% in 2009 to 12% in 2013.

HVS said game operators with operations in Asia and Las Vegas are "implementing cross-marketing because they can benefit from lower tax rates in Las Vegas compared to Asian markets."

"The strong baccarat play is likely to benefit disproportionately for operators with established Asian sourcing channels such as MGM Resorts International, Wynn Resorts Ltd and Las Vegas Sands Corp," HVS added.

These three companies operate in Macau. Las Vegas Sands also owns Marina Bay Sands in Singapore. Table games are the dominant form of casino games in Asia, and Bakara is the most popular game.

In his 2013 Annual Report, Las Vegas Sands wrote, "In line with his experience in Macau, baccar is the preferred table game for both VIP and popular gaming."

Macau's VIP Baccarat accounted for 63.7% of its gross gaming revenue (GGR) in the first quarter of 2014, down from 66% in 2013.

The main property located on the Las Vegas Strip has been identified as a property with annual gaming revenue of more than $72 million, and is "clearly benefiting and affected by high-end Baccarat play," HVS said. The Nevada Gaming Control Board does not name these properties, but as of 2013, there were 23 casinos in the sector, according to the consulting firm.

"Over the past four years, Baccarat revenues have ranged from 43.5% of table game revenues in 2011 to 48.2% in 2013," HVS highlighted, referring to the 23 largest-grossing properties in Las Vegas.

But a decline in the play of high-end Baccarat will affect earnings. Among Las Vegas Strip's major properties, gaming revenue fell 8.9% to $998 million in the first four months, according to figures from the Nevada Game Management Board.

Baccarat, which accounts for 70% of the declining segment, was the biggest component in the first four months of the year, when table game sales on the Las Vegas Strip fell 14.2% Y/Y to $428.7 million.

One possible stimulus for Las Vegas is that HVS has the potential for Asian operators like Genting to enter the market.

The company, which exclusively operates casinos in Malaysia's home market, expects to begin building a $4 billion resort World Las Vegas with final approval from Nevada's gaming regulator .

Andrew Klebanow, a partner at Global Market Advisors LLC (GMA), told GGRAcia that the experience and large customer base of Asian companies could revitalize the U.S. gaming industry. [슬롯머신](https://www.slotmachinesite.com)

"Don't underestimate the databases these Asian game companies have and what they can offer to customers in different locations. Genting currently has an international database within all its assets," Klebanow told us.