1. Racino: A Solution or A Terminator? Shuang Liu Macao Polytechnic Institute 1-4 December 2013, Gaohsiung, Taiwan

2. Outline Concept Purpose Case Future Macao Polytechnic Institute2

3. What is Racino Macao Polytechnic Institute3 +=

4. (1) racinos in the world US (43): in 14 states Canada (28): in 6 provinces UK: Wolverhampton Racecourse Austria: Magna Racino Philiphins: San Lazaro Leisure Park Macao: Yat Yuen Canidrome Slot Lounge, Macau Jockey Club Slot Lounge Macao Polytechnic Institute4

5. (2) top 10 US racetrack casino markets by annual revenue 2012 Macao Polytechnic Institute5 RankingRacetrack Casino MarketAnnual Revenues 1Philadelphia, Pa.$835.33 million 2New York City, N.Y.$672.57 million 3Yonkers, N.Y.$544.70 million 4Charles Town, W.V.$536.99 million 5Providence, R.I.$477.83 million 6Indianapolis, Ind.$445.40 million 7Dade County, Fla.$427.89 million 8Dover/Harrington, Del.$297.57 million 9Meadow Lands, Pa.$284.38 million 10Grantville, Pa.$282.60 million Total-$4,805.26 million

6. Purpose of Racino Why Racinos? ◦ Broad decline of racing industry Broad decline of racing industry ◦ Boom of gambling alternatives Boom of gambling alternatives land-based casinos, riverboat gambling, cruise ship casinos, lotteries, slot machines ◦ Benefits for the local government tax contribution, job creation… Complement or Competitor? Macao Polytechnic Institute6

7. 7

8. (1) Global horseracing turnover Macao Polytechnic Institute8 Item200620072008200920102011 Turnover111.76115.70110.7693.65114.58106.54 change%-3.53%-4.27%-15.45%22.35%-7.02% Unit: USD billion Source: International Federation of Horseracing Authorities, Annual Report, 2006-2011

9. (2) gambling revenue Macao Polytechnic Institute9

10. Case of Macao Yat Yuen Canidrome Slot Lounge @Macau (YatYuen) Canidrome, 2005-present, owned by SJM 逸園聚寶殿角子機娛樂場 @ 逸園跑狗場內 Macau Jockey Club Slot Lounge, @Macau Jockey Club Racetrack, 2007-2012.11, owned by SJM 澳門賽馬會角子機娛樂場 @ 澳門賽馬會內 Macao Polytechnic Institute10

11. (1) betting turnover 2002-2012 Macao Polytechnic Institute11 Unit: USD million (USD 1 = MOP 8) Turnover20022003200420052006200720082009201020112012 Greyhound Racing 41.7541.0047.0037.8837.7557.38112.38197.00207.38180.00123.13 change% --1.80%14.63%-19.41%-0.33%51.99%95.86%75.31%5.27%-13.20%-31.60% Horse Racing 340.38650.881,021.63410.75281.63260.00325.00214.88284.13283.63228.50 change% -91.22%56.96%-59.79%-31.44%-7.68%25.00%-33.88%32.23%-0.18%-19.44%

12. (2) Share of racing revenue in the total gross gaming revenue 2002-2012 Macao Polytechnic Institute12 GGR20022003200420052006200720082009201020112012 Table Games 2,743.633,554.505,092.255,599.636,821.259,928.5012,889.8814,108.2522,465.6332,055.2536,361.88 % 93.42%93.80%93.63%95.04%94.87%94.73%93.89%93.76%94.80%95.31%95.30% Slots 28.8829.5080.00156.25256.63449.25706.63812.881,077.251,428.131,655.50 % 0.98%0.78%1.47%2.65%3.57%4.29%5.15%5.40%4.55%4.25%4.34% Greyhound Racing 9.509.2510.508.38 12.2523.2540.8842.5037.1325.63 %0.32%0.24%0.19%0.14%0.12% 0.17%0.27%0.18%0.11%0.07% Horse Racing 67.38125.50195.7579.5054.6350.3862.6341.6355.00 44.50 %2.29%3.31%3.60%1.35%0.76%0.48%0.46%0.28%0.23%0.16%0.12% Lotteries 87.6370.6360.3848.0049.2540.5045.8844.2558.1356.7566.88 %2.98%1.86%1.11%0.81%0.68%0.39%0.33%0.29%0.25%0.17%0.18% Total (100%) 2,937.003,789.385,438.885,891.757,190.1310,480.8813,728.2515,047.8823,698.5033,632.2538,154.38 Unit: USD million (USD 1=MOP 8)

13. Future of Racinos in Macao Failed cases Beaten by the“real” casinos Better close Hardly reopen Macao Polytechnic Institute13

14. Any Questions? Susan Shuang LIU Gaming Teaching and Research Centre Macao Polytechnic Institute Email: liushuang@ipm.edu.mo Tel: +853 8893 6224 Fax: +853 2883 1746 Macao Polytechnic Institute14