Franco Degabriele, business development director of the Dragonara Casino, speaks to Anthony Manduca about the company’s €10 million investment upgrade project that has just been completed and how land-based casinos can play an even greater role in the Maltese economy.
If the government dedicates the same amount of attention to the promotion of land-based gaming that it has on remote gaming, then casinos in Malta have a great potential for growth and a very bright future, according to Franco Degabriele.
“The government is very supportive of the gaming industry and sees very good results from this sector. In fact, 11 per cent of Malta’s GDP comes from gaming, both remote and land-based. However, we need some policy direction from the government to see how they view land-based casinos going forward, just like they have done for the remote gaming sector,” Mr Degabriele says.
The taxable revenue that is generated by the four land-based casinos in Malta amounts to approximately €35 million per annum and the government gets 38 per cent of that in tax. Mr Degabriele believes there is potential for growth both in the local market and from overseas customers.
11 per cent of Malta’s GDP comes from gaming, both remote and land-based
“The Dragonara Casino customers are split equally between locals and foreigners. The local casino market, although relatively saturated, does have potential for growth, but this requires certain market inefficiencies to be addressed. Casino operators should operate on a level playing with other gaming operators both in the land-based and remote gaming sectors.
“For example, while other land-based gaming operators, such as the national lottery provider, and remote gaming operators can freely market their product on all channels in the local market, casinos are still restricted from doing so. A level playing field between operators from different gaming sectors would allow casino operators to continue to invest in their properties with the aim of improving standards and quality of service.”
Mr Degabriele had words of praise when commenting on the work carried out by the Malta Gaming Authority to ensure gaming is undertaken according to pre-defined regulations and in a responsible manner.
“In Malta we have a very well regulated market and a player is safe when he plays in formal gaming establishments. Players are not safe when they seek informal channels to play. This refers to both online and land-based casinos.” He acknowledges, however, that the main growth for the industry has to come from abroad.
“We need a holistic approach nationally to improve what we can offer to potential customers.
“Agencies that deal with incoming tourism have an important role in marketing casinos in Malta but this is not happening right now. It is really up to the casino to go out and try and bring in groups specifically to come and play in Malta and to promote Malta as a destination for land-based gaming.
“The only area where this is done is poker, and Malta has already proven over the past five years that it can position itself as one of the top poker destinations.
“We feel that with this type of support from all the stakeholders Malta could also be positioned to bring in players from international markets, especially European ones, to come and play in local casinos.
A section of the new VIP Room at the Dragonara Casino. The VIP market, or the ‘private gaming market’ is one of the niches which can contribute to growth.“This needs the support of all the stakeholders and involves airlines, the infrastructure you get when you arrive in Malta and the Malta Tourism Authority. Everybody must team up together.
“We are seeing some growth in the market but we feel there is a lot more to be done to position Malta as a gaming destination. In particular, we need to collaborate with the MTA to market Malta as a gaming destination, very similar to what other destinations such as Northern Cyprus and Slovenia have been doing. This would be a step in the right direction.” He adds: “We need to be on the map, as an alternative to the other competing markets.”
He recognises that with three other players in the land-based casino market – which he describes as “mature” – one has to be on the forefront, whether it’s the latest technology, the people employed or the service you give, in order to retain market share.
An impressive €10 million investment upgrade has put it on the same level as the most modern casinos in the world
The Dragonara Casino has certainly done its part to upgrade its product and services and to make Malta more attractive as a casino destination. It recently completed an impressive €10 million investment which upgraded the entire casino and without doubt put it on the same level as the most modern casinos in the world. The casino is open 24 hours a day, every single day of the year except Good Friday.
“The total investment was of €10 million and this increased our workforce to 200. The upgrade included the complete redesign of the entire casino floor, 250 new slot machines – some of which are the very first to enter the Maltese market and are the very latest you will find in any international market, the complete redesign of the live table games of the casino, a central bar which without doubt enhances the player’s experience, a completely new poker set-up that caters for our poker requirements on the terrace overlooking St George’s Bay, and on the other side of the terrace we have built a new restaurant which now can be accessed by non-casino patrons,” he says with some pride as he shows me around the casino.
“We have also built a completely new sports bar, where you can watch live sports and bet on the live games, and have invested in a new VIP Room which has been furnished to the highest standards. We can go out and sell this VIP Room on the international market for VIPs to come and actually play in an environment which you would find in the very best casinos internationally.”
He believes the VIP market, or the “private gaming market” is one of the niches the industry needs to get into and which can contribute to growth.
“What you have is a few people creating a lot of value. The aim is to cater for the private gaming patron of a certain profile who comes to Malta for a few days to gamble and play in an environment that is right for them.
“They have all the amenities available to them in a nice, posh environment where the ambience is good, where they find the type of games they like and they find the service that they expect for the type of value that they bring.”
The Dragonara Casino, however, caters for all budgets and socio-economic profiles.
“The profiles vary and are consistent with what you find in other markets.
“The slot machine player tends to be of an older age, who comes to the casino for a social outing. Then there are the players who want to come here in groups to play on the tables for a fun evening out.
“And then you have the player of a certain value who comes here, not regularly, but requires certain services and certain environments that are consonant with the value that they bring.”