2016年-普华永道全球_Is_Europe_ready_for_Integrated_Resort_Casinos__21页_5mb

Summary: Is Europe Ready for Integrated Resort Casinos?

Core Content

The document explores whether Europe is prepared to adopt the Integrated Resort Casino (IRC) model, which has been successful in Asia and the US. It outlines the features, advantages, and challenges of IRCs, and evaluates the potential for their development in Europe.

Key Features of an IRC

An IRC is characterized by three main elements:

• Integration: Combining major casinos with hotels, entertainment, shopping, and leisure facilities.
• Broad Appeal: Attracting both gamblers and non-gamblers, including locals and international tourists, especially high-spending VIPs.
• Scale: Large physical footprint, significant gaming capacity, and substantial investment and revenue potential.

Main Advantages of the IRC Model

For Consumers

• Mass Market: Consumers are willing to travel further to visit IRCs due to the all-inclusive experience they offer.
• VIP Appeal: High-net-worth individuals (HNWIs) are drawn to the luxury and personalized service provided by IRCs.
• Leisure Focus: Millennials and other demographics value experiences, not just gambling, making IRCs a more attractive proposition.

For Casino Operators

• Profitability: IRCs are highly profitable, with examples like Marina Bay Sands in Singapore generating over $1bn in EBITDA.
• Diversification: Operators can diversify their offerings and revenue streams, reducing dependence on gaming alone.
• New Markets: Europe offers a stable political and regulatory environment, and a growing HNWI population, making it an attractive new market.

For Governments

• Economic Growth: IRCs can significantly boost GDP, tax revenues, and employment.
• Investment Attraction: They can draw foreign direct investment and stimulate ancillary industries.
• Tourism Boost: IRCs can increase international tourist arrivals and extend the length of stay, enhancing the tourism industry.

Key Information

• Current IRC Landscape in Europe: There are currently no established IRCs in Europe.
• Consumer Demand in Europe: Europe is the third-largest gaming region globally, with a growing HNWI population and increasing interest in leisure and tourism.
• Tourism Potential: Europe has strong tourism infrastructure, including MICE (Meetings, Incentives, Conferences, Exhibitions) and leisure attractions, which could support an IRC model.
• Political and Regulatory Challenges: The approval process for IRCs in Europe is complex, lengthy, and involves multiple stakeholders, which can delay or deter development.
• Operator Reluctance: Despite the potential, operators have shown little enthusiasm for developing IRCs in Europe, possibly due to the regulatory hurdles and lower potential returns compared to other regions.
• Asia as a More Attractive Option: Many operators are focusing on Asia, where the regulatory environment is more favorable and the market potential is greater, especially in Japan and South Korea.

Europe's Position in the Global IRC Market

• Global Casino Jurisdictions: The leading IRC markets are Las Vegas, Macau, and Singapore.
• European Casino Revenue: In 2013, European casinos averaged $11.3m in GGR, compared to $1,977m in Singapore and $1,267m in Macau.
• European Tourism: Five of the top ten countries by tourist arrivals are in Europe, and it is a major MICE destination, with 15 of the world’s top 20 cities for this type of travel.

Challenges in Europe

• Regulatory Complexity: The approval process is lengthy and involves numerous stakeholders, making it difficult for operators to move forward.
• Political Resistance: Some governments, like Spain, have shown resistance to granting the necessary concessions and exemptions.
• Operator Interest: Operators are hesitant to invest in Europe due to the lack of clear regulatory pathways and lower potential returns compared to other regions.

Conclusion

Europe has the potential to benefit significantly from the development of IRCs, given its strong tourism infrastructure, growing HNWI population, and stable political environment. However, the lack of established IRCs in Europe is due to a combination of regulatory complexity, political resistance, and operator reluctance. While the economic and social benefits are clear, the path to realization is fraught with challenges that need to be overcome for Europe to fully embrace the IRC model.