Jurisdiction Updates August 2015 Edition
Russia
Macau
Investors upbeat in uncertain times pg.14
Looking for a non-gaming changer
Taiwan
Bill stuck in limbo pg.09
pg.06, 30, 58
Thailand
Weighing up the odds pg.22
Australia
Cleaning up dirty money pg.36
AGE 2015 supplier special pg.52
MESSAGE 3
Adventures in Australia
W
e are once again very pleased to be able to
This year, GRWA has stepped away from “What If”
attend the two highlights in the annual
to “What will” talks. Over three days, GRWA will be
gaming calendar for this region - the
covering completely new ways to engage customers –
Australasaion Gaming Expo (AGE) and the
with ideas and lessons learnt from outside the gaming
Gaming, Racing & Wagering Australia (GRWA) conference
industry. It will also be covering new products lines
that take place during the week of 10 August in Sydney.
– by taking a look at other gaming markets and seeing
AGE owner and operator, the Gaming Technologies
what’s possible in this market. At the same time,
Association (GTA), says this year’s Australasian Gaming
the conference will also look at the evolution of our
Expo has “more” of everything – more exhibitor space,
industry here – setting a solid plan for what’s to come.
more products offered, more innovation, and more
AGB Managing Director, Ros Wade, will be chairing
food and beverage space. The 2015 show features 175
the first afternoon of the conference on Monday which
exhibitors, including 35 exhibiting for the first time.
discusses the growth opportunities, major challenges,
With some GTA members becoming larger and more
new regulatory realities and the path to profitability for
‘international’, their expanded product range will bring
Australia’s operators.
new gaming machines and games not seen before to
In addition to our regular jurisdiction updates, this
the event.
edition of Asia Gaming Briefings features a series of
And with two new casinos announced recently for
articles on the development of non-gaming amenities
Australia – and 15 more scheduled in the Asia-Pacific
- a topical subject as Macau attempts to diversify away
region in the next five years – now is the time for
from being a pure gaming hub, primarily for Mainland
buyers to connect with sellers, to think about what the
Chinese customers, to an international entertainment
industry will look like in five years’ time and what they
destination. Does Macau have a definable brand?
will need to succeed.
What are some of the things on offer? And can its
The Australasian Gaming Expo is open from 10am
infrastructure support this evolution? These are some
on Tuesday 11th, Wednesday 12th and Thursday 13th
of the questions that we attempt to answer in our
August. Visitors who attend the AGE are eligible to win
feature articles.
a trip for two to the Global Gaming Expo in Las Vegas
As always, we look forward to connecting with you at
– including airfares from Sydney and 5 nights at the
one or other of the events, or remember to stay up to
Palazzo Venetian Resort and Casino. One trip for two
date with all the developments by following us on social
will be drawn on each day of the Gaming Expo.
media. l
The Gaming, Racing & Wagering conference takes place from Monday 10th - Wednesday 12th August at the Novotel, Darling Harbour. When organizers Beacon Events first started to put together the programme for GRWA 2015, one of the leading questions delegates kept
@agbrief
Rosalind Wade
Luis Pereira
Asia Gaming Brief
Asia Gaming Brief On behalf of Asia Gaming Brief
asking was “Is it really possible for our industry to truly
Rosalind Wade & Luis Pereira
innovate further?”
Publishers
www.asiagamingbrief.com August 2015 EDITION Series ii • Issue VIII
PUBLISHED BY Blue Sky Venture Ltd. Suite 1104 - 11/ F, First Int. Commercial Centre 600E Av. Dr. Rodrigo Rodrigues Macau SAR | P.O. Box 1139 t. +853 2870 1367 f. +853 2870 1366 e. enquiries@agbrief.com
PUBLISHERS & MDS Rosalind Wade, Luis Pereira
ADVERTISING ENQUIRIES advertising@agbrief.com
PHOTOGRAPHY MacauLink, Agencies, Amadeus Photography
SUBSCRIPTION ENQUIRIES memberships@agbrief.com EDITORIAL ENQUIRIES editorial@agbrief.com
MANAGING EDITOR Sharon Singleton ASIA EDITOR George Styllis DESIGN People Press Publishing
PRINTING Hop Sze, Hong Kong Cover photo MacauLink
DISCLAMER All rights reserved. No part of this publication may be reproduced or transmitted in any shape or form, or by any means, or stored in any retrieval system of any nature, without prior express permission. The publishers accept no responsibility for loss or damage to any materials submitted for publication. The views expressed within are not necessarily subscribed by the publishers. For more info, please visit our website.
AGBRIEF PARTNER EVENTS
› ICE Totally Gaming › iGaming Asia Congress › G2E Asia › Russian Gaming Week › iGaming Super Show › World Gaming Executives Summit › Australasian Gaming Expo › Gaming, Racing & Wagering Australia › G2E Las Vegas › European iGaming Congress › IAGR Annual Conference › Macao Gaming Show
Asia Gaming Briefings | August 2015
4
Greater CHina
G2E 2015 SOUTH EAST ASIA
CONTENTS
SOUTH ASIA
Macau
06
PHILIPPINES
16
INDIA
26
TAIWAN
09
Singapore
19
NEPAL
28
malaysia
21
THAILAND
22
SAVE THE DATE SAVE THE DATE G2E 2015 SAVE THE DATE G2E 2015 G2E 2015 INDOCHINA
NORTH ASIA JAPAN
SOUTH KOREA RUSSIA
AUSTRALASIA
10
Cambodia
24
AUSTRALIA
36
13
NEPAL
25
NEW ZEALAND
38
pacific isles 14 SEPTEMBER 29-OCTOBER 1, 2015 • SANDS EXPO & CONVENTION CENTER • LAS VEGAS, NV SEPTEMBER 28: iGAMING CONGRESS, SECURITY & SURVEILLANCE INSTITUTE, G2E 101, THE HOTEL SEMINARS AT G2E, AND MORE!
MACAU special focus
30
SUPPLIER SPECIAL REPORT
52
LAST WORD
NETWORKING, EDUCATION AND BUSINESS INSIGHT.
All Asia Dealers Championship
40
GET THE INSIGHT YOU NEED TO WIN IN THE MARKET. New interactive and technologically dynamic seminars. More industry experts covering the most critical issues. An even bigger show floor filled with everything gaming and non-gaming. GLOBALGAMINGEXPO.COM PRESENTED BY
SEPTEMBER 29-OCTOBER 1, 2015 • SANDS EXPO & CONVENTION CENTER • LAS VEGAS, NV SEPTEMBER 28: iGAMING CONGRESS, SECURITY & SURVEILLANCE INSTITUTE, G2E 101, THE HOTEL SEMINARS AT G2E, AND MORE!
NETWORKING, EDUCATION AND BUSINESS INSIGHT. GET THE INSIGHT YOU NEED TO WIN IN THE MARKET. New interactive and technologically dynamic
SEPTEMBER 29-OCTOBER 1, 2015 • SANDS EXPO & CONVENTION • LAS NV seminars. More industry experts covering the most critical issues. An evenCENTER bigger show floorVEGAS, filled with SEPTEMBER 28:gaming iGAMING and CONGRESS, SECURITYGLOBALGAMINGEXPO.COM & SURVEILLANCE INSTITUTE, G2E 101, THE HOTEL SEMINARS AT G2E, AND MORE! everything non-gaming.
SEPTEMBER 29-OCTOBER 1, 2015 • SANDS EXPO & CONVENTION CENTER • LAS VEGAS, NV SEPTEMBER 28: iGAMING CONGRESS, SECURITY & SURVEILLANCE INSTITUTE, G2E 101, THE HOTEL SEMINARS AT G2E, AND MORE! NETWORKING, EDUCATION AND BUSINESS INSIGHT. PRESENTED BY
Asia
GET THE INSIGHT YOU NEED TO WIN IN THE MARKET. New interactive and technologically dynamic seminars. More industry experts covering the most critical issues. An even bigger show floor filled with NETWORKING, EDUCATION AND BUSINESS INSIGHT. everything gaming and non-gaming. GLOBALGAMINGEXPO.COM GET THE INSIGHT YOU NEED TO WIN IN THE MARKET. New interactive and technologically dynamic seminars. More industry experts covering the most critical issues. An even bigger show floor filled with Gaming Briefings | August 2015 PRESENTED BY everything gaming and non-gaming. GLOBALGAMINGEXPO.COM
39 58
arena berlin | 20 – 22 / 10 / 2015 Excellence in iGaming
Addressing iGaming’s big questions The impact of consolidation, omni-channel gaming, the future of devices and emerging markets top the agenda. Drive the change join thought leaders and decision-makers from around the globe at the iGaming industry’s leading event on 20-22 October 2015 in Berlin
For more information and to register, visit eigexpo.com
GREATER CHINA 6
MACAU
Entertainment and engagement seen as key drivers for Macau machine market Gaming equipment suppliers are upbeat about the prospects for Macau with $27 billion worth of new properties coming onstream in the next few years but, as the market shifts towards the mass player, entertainment value and player engagement may be the key to the winning hand.
Asia Gaming Briefings | August 2015
T
he six Macau operators will all be
for theming and a different style of experience.
opening new properties over the next
That’s probably why Sands has decided to
two years and, with the government
develop a Parisian theme compared with what
indicating it will stick firmly to its cap
it was originally planning to do because they
of not allowing a more than 3 percent annual
know that captures the imagination of the mass
increase in gaming tables, operators will be
player, who is really just a visitor to Macau who
looking at alternatives to fill the floors.
ends up playing because they are in the casino.”
However, the Macau market continues to evolve
Scientific Games was showing off the latest
from the dominance of VIP-driven table games
version of its successful Duo Fu Duo Cai with
to the mass market and to players increasingly
a new Asian-themed progressive link called
looking for interactivity with the games they are
Da Fu Da Gui, which means “big riches, big
playing, creating challenges and opportunities
honors. The game features the original babies,
for suppliers.
but now grown into toddlers. The company
“Even though gross gambling revenue in Macau
has installed more than 6000 of the original
is down, with six new properties opening we’re
game worldwide since it was introduced two
going to get some sales because they need
years ago.
products on floors,” Ken Jolly, vice president
Sabby Gill, senior vice president international
of Scientific Games Asia said in an interview
sales at International Game Technology also
with AGB.
said he was confident the company now has
He said electronic table games and slots will
the right products for the Asian market and
be the obvious winners, however, casinos
is optimistic about the group’s prospects in
will seek to be more creative in an attempt to
the new casinos.
differentiate themselves.
“The games we have now come out with and
“That mass market person is going to be looking
that we are showcasing are a completely
GREATER CHINA 7 different animal from those anywhere else
GTECH in April, with projected cost synergies
around the world. The math is different and
of $280 million by the third year after closing,
they are specifically built for the local market
while Aristocrat Leisure last year said it was
here in Macau.”
merging with Video Gaming Technologies for
“The games that we are finally coming out with
$1.23 billion.
over the past six to seven months are really
“Big companies have different strengths,” Jamie
starting to make waves and gain traction in
Odell, CEO and managing director of Aristocrat
the local market,” he told AGB.
Entertainment said during the panel. “In terms
Gill said Galaxy Entertainment has upped its
of the value chain across the operators and
originally planned purchase order for Phase 2
ourselves, it will come down to the product that
based on the successful performance of games in
gets the best return on investment. If we can
its existing casino. The company is introducing
make more money and the operators make more
several of its linked progressive machines and
money, then you will get the pricing power.”
new games such as San Xing Bao Xi.
Much discussion at the show revolved around
IGT CEO of International Walter Bugno recently
potential new product developments, with the
said the company has high expectations for
possibility of skill-based games, which have just
the San Xing product, which features two base
been approved in Nevada and the convergence
game themes, Dragon Dynasty and Golden Frog,
of mobile and social gaming. The companies
and boasts a series of play mechanics designed
are also looking at tablet style devices that can
to elevate player excitement and encourage
be used anywhere within a licensed casino,
players to bet up.
including restaurants and smoking rooms.
“There’s an entertainment value and more
“With the mobile technology, with the innovation
increasingly so an engagement value. People
in all of these things, that’s where we’re going
want to engage with the game beyond the tapping
to really benefit in the long term,” Gill said.
of a button and that’s where a lot of our efforts
“We are excited about some of the opportunities
go, towards creating a level of engagement
going forward.”
After the recent wave of consolidation in the industry, the companies agreed that they are not
Y14 $44b -2.6% June $2.18b -36.2% Y15 June mass -33.3% June VIP -52.5% (Source: Sterne Agee)
Y15E -27%
UBS
-29%
Fitch Ratings
-32%
BoA/Merrill Lynch
-34%
Morgan Stanley
Y16E BoA/Merrill Lynch
through our various bonus opportunities that are built into the game,” he said.
GROSS GAMING REVENUE
OPERATORS
Morgan Stanley
5.3% 6%
necessarily better placed in terms of bargaining power with the operators, but that economies of scale had allowed for greater depth in the research and development budgets.
SJM Holdings (880:HK)
Holds a 20.3 percent market share as of mid-June
Table-only Market share as of MID-JUN. 2015 (Source: Sterne Agee)
“Scale enables you to focus your R&D on future
with 20 casinos. Its $3.2 billion Palazzo Versace
developments,” Scientific Games president
development is scheduled to come online in 2017.
and CEO Gavin Isaacs said in the panel session.
Mass market property the Jal Alai is scheduled
“You are only as good as your last game. You
for a mid-2016 opening with 130 rooms and 45
want to make sure that the company you are
gaming tables. The company has also indicated it
making the investment with has the content
may be interested in opportunities in Japan. The
to support that cabinet for the life of how long
company is currently building The Lisboa Palace
the operator wants it to be there.”
on Cotai, which is also scheduled for completion
“In the old days, they wanted to keep a cabinet
in 2017. The casino will have 700 gaming tables
for five years and then throw it away, that doesn’t
and over 1,200 slot machines across a gaming
happen any more. These days a customer would
floor area of approximately 27,000 square
like to keep a cabinet on the floor for 100 years.”
metres. The total production cost is estimated
Gill agrees, saying companies now need a big
at about HKD$30 billion ($3.8 billion), although
Sands China (1928:HK) 22.1%
library and an investment plan. “We will be
the company has expressed concern over costs.
SJM Holdings (880.HK) 20.3%
introducing a continuous amount of new games
During 2014 Casino Grand Lisboa expanded its
over the next six to nine months all based on
mass market table gaming operations from
Melco Crown Entertainment (6883.HK) 11.9%
the version 1.1 standard and really getting those
250 tables as at 1 January 2014 to 274 tables as
out to market.”
at 31 December 2014, whilst VIP tables were
Scientific Games, which completed its $5.1 billion
reduced from 181 to 177 during the same period.
merger with Bally Technologies in November
Q1 EBITDA dropped 43 percent to HK$1.24
last year, says it’s on track to achieve the $235
billion, below expectations, according to Union
million in cost synergies expected from the
Gaming. Gaming revenue was down 37 percent
transaction.
to $14.3 billion.
Galaxy Entertainment (27.HK) 25.1%
Wynn Macau (1128:HK) 10.2% MGM China Holdings (2282:HK) 9.7%
IGT completed its $4.7 billion merger with Italy’s
Asia Gaming Briefings | August 2015
GREATER CHINA 8
Galaxy Entertainment
Melco Crown
below the $1.33 analysts had been looking for.
Group (27.HK)
Entertainment (6883.HK)
almost 45 percent to $212.3 million, mainly due
Melco Crown Entertainment (6883.HK)
in the VIP segment fell by half to $17.1 billion.
properties. The company’s new Galaxy Macau
has three casinos and an 11.9 percent
The decline in revenue was exacerbated by a
Phase 2 and Broadway at Galaxy Macau opened
market share. The company’s $3.2 billion
drop in VIP tables in the quarter to 252 units,
on May 27 this year, almost doubling the capacity
Studio City is scheduled to open on
from 279 in the same quarter a year earlier due
of the resort. It was given an allocation of 150
October 27, 2015, it was announced during
to a renovation of the casino floor.
tables by the government, far short of the
a “sneak peak” ceremony on August 5.
400 it had requested. Analysts say so far the
But in a note published a few days before
response has been lukewarm and not given
the announcement, Bernstein Research
much of a boost to GGR so far. That said, the
estimated that it would be 100 days before
company had the biggest increase in market
the property is ready to open. The resort
share in June, up by 3.8 percentage points. In
will feature a 5,000-seat multi-purpose
the latter part of 2015, the company expects
theatre, a permanent magic show, jungle-
to begin site investigation works for Cotai
themed river rides, a figure-8 Ferris wheel
Phases 3 and 4, the plans for which are almost
and a Batman attraction. Melco says
complete. “Cotai Phases 3 & 4 will provide GEG
the resort will be made up of 95 percent
with thousands of new hotel rooms and a vast
non-gaming components. The company
array of leisure and entertainment facilities,”
recently refinanced $1.75 billion in credit
the company said. In Q1, the group reported a
facilities, giving rise to speculation it may
32 percent year-on-year decline in revenue,
choose to buy out its minority partner in
while adjusted EBITDA during this period fell
the Studio City resort. It has warned that a
40 percent. The company announced that its
table allocation of less than 400 at the new
revenue fell to HK$13.7 billion, and adjusted
property will materially affect cash flow.
EBITDA, to HK$2.3 billion. The company is
Deutsche Bank estimated that the resort
also expected to break ground on its hotel on
will receive roughly 150 gaming tables from
Hengqin Island this year. Galaxy is planning a
the government, a figure that will “serve
“Maldives-style” resort.
as the baseline for expectations” for future
Has a 25.1 percent market share with eight
openings in Cotai. In Q1, net revenue fell 22 percent to $1.05 billion, while adjusted
Sands China (1928:HK)
property EBITDA was down 35 percent
Has a market share of about 22.1 percent and
net income attributable to Melco Crown
has four casinos. Analysts say the company
Entertainment was $60.6 million, or $0.11
has had a lower room occupancy than rivals in
per ADS, compared with$239.5 million, or
Cotai, meaning it has more potential for revenue
$0.44 per ADS a year earlier.
which is now expected to come online in mid2016. The company has requested further labor
Wynn Macau (1128:HK)
Has a 10.2 percent market share and currently
from the government to help bring forward the
has one casino, while its $4 billion Wynn Palace
opening date, which was originally planned
is under development and scheduled to open
for late this year. Sands China also recently
in the first half of next year, with 1,700 hotel
expanded retail space at its Sands Cotai central
rooms. Chairman Steve Wynn says 90 percent
property, with the addition of 150,000 square
of the resort will be non-gaming. The company
feet of space, with shops designed to appeal
said the resort will feature a performance lake,
to families. In Q1, the group’s results came in
casino, spa, retail and other outlets. It is aiming
weaker than expected, with adjusted property
for about 500 table games. Q1 earnings were
EBITDA at Sands China falling 43.4 percent to
well below analysts’ forecasts and the company
$531 million, while net income at the unit fell
slashed its dividend to $0.50 from $1.50 Overall
by more than half. Total revenue fell by 34.9
net revenue fell to $1.1 billion, missing estimates
percent to $1.77 billion. Rolling chip volume at
for $1.2 billion, with Macau revenue down 37.7
its flagship Venetian Macau property declined
percent. Adjusted earnings for the quarter
44 percent to $8.52 billion, while non-rolling
were $70.7 million, or $0.70 a diluted share,
chip drop was also lower, with a 22.5 percent
slumping from $236.7 million, or $2.32 a share
decline to $1.87 billion.
in the year earlier quarter. That’s significantly
Asia Gaming Briefings | August 2015
to a drop in VIP revenue. Table games turnover
MGM China (2282:HK)
Has a 9.7 percent market share while operating a single casino in the peninsula. Its new developments include the MGM Cotai, which is a $2.9 billion project scheduled for completion mid 2016. The company recently agreed with lenders to upsize its credit facility to $3 billion to provide financial flexibility to continue to invest in MGM Macau and develop its Cotai property. It also extended the maturity on the credit. MGM China’s Q1 revenue dropped 33 percent to $630 million with main floor table games revenue decreasing 13 percent and VIP table games revenue decreasing 45 percent. MGM China’s Adjusted EBITDA was $148 million, a decrease of 38 percent. MGM China CEO Grant Bowie recently quashed speculation the company is planning a merger with rival Wynn and would sell Mirage in Vegas.l
to $253.3 million. On a U.S. GAAP basis,
growth if it fills the rooms. The company’s new developments include the $3 billion The Parisian,
In Macau, adjusted property EBITDA dropped
Macau’s government has relaxed its policy regarding transit visas, which was tightened in July last year. Chinese passport holders will be able to enter on transit visas for seven days, instead of five for the first visit and can stay for two days, up from one, on the second visit. The impact of a full smoking ban may not have yet been factored into earnings estimates for Macau’s casino operators, Deutsche Bank says. The government is widely expected to bring in a blanket ban on smoking in casinos, doing away with the exemption for VIP rooms and the specially designated smoking rooms that were introduced on casino floors in Oct. 2014.
GREATER CHINA 9
GROSS GAMING REVENUE Tourism arrivals Y14 9.9m Y15E Jan - April Arrivals 3.3m
+24% +3.8%
Y15E 10m Public Welfare Lottery Y14 NT$132.2b ($4.3b)
TAIWAN
Taiwan casino bill remains in legislative limbo The regulator session of Taiwan’s Legislative Yuan has ended for the summer and, despite high hopes earlier this year, the Tourist Casino Administration Act was not passed.
A
Bloomberry Resorts Chairman Enrique Razon says his company would be interested in expanding into Taiwan should the bill to legalize casinos be passed. The owner of the Philippines’ Solaire Resort & Casino has been eyeing overseas expansion opportunities. The head of China’s Taiwan Affairs Office threatened to sever the “three mini links” of direct flights, post and shipping between the mainland and Taiwan’s offshore islands if they seek to establish casinos.
t the time of going to press, it was
Taiwan’s offshore islands would be permitted
unclear as to when the bill that will
to establish casino-based integrated resorts.
set the ball rolling on legal casinos
Eventual casinos in Taiwan will be located on
will next be discussed. There has been
the offshore islands of Kinmen, Matsu and
that a casino license cannot be pledged or
talk of a special summer session of parliament,
Penghu. Before the islands can develop casino-
mortgaged, though industry has commented
but it has not yet been scheduled.
based integrated resorts, they will need to hold
that this prohibition may impact a company’s
Prior to breaking for the summer, the speaker
a referendum. In past votes on the issue, the
ability to finance a project.
of the Legislative Yuan arranged cross-party
island of Penghu defeated the proposal while
There has also been discussion over taxation. In
consultations to resolve articles of the Act
the voters on Matsu, the smallest of the three
addition to the normal corporate income tax rate
that had not previously been agreed, but the
islands, voted in favor. Once the Act is passed,
of 17 percent, the draft Act proposes GGR-based
consultations ended after two hours with no final
it is likely that Penghu and Kinmen will also
taxes of a national-level special permit fee of
resolution on some of the outstanding articles.
consider holding referendums on casino gaming.
between 7 percent and 9 percent, a local-level
Still, with no major opposition to the bill,
Some the most important points of political
special gaming tax of up to 7 percent, a 0.5
proponents are still optimistic it will ultimately
disagreement have centred on the number of
percent contribution to social welfare funding,
be passed.
casino licenses, taxation and license terms.
and a 0.5 percent contribution to a gambling
Comments by the head of China’s Taiwan
The draft act states the number of licenses per
addiction prevention foundation to be formed
Affairs Office, Zhang Zhijun, that China would
island should be determined by the regulator,
by the Regulator. The DPP has proposed taxes
cut the “mini three links” between China
but the main opposition party, the Democratic
which potentially total up to 62 percent of GGR.
and Taiwan’s offshore islands if they were to
Progressive Party, wants a limit of two per island.
Industry has objected to the DPP’s tax proposal,
establish casinos may have actually increased
The Act also provides for 30-year license terms,
as has the Executive Yuan.
the possibility that the law will ultimately pass
whereas the DPP wants 15-year
The Annex of the Act also provides that gaming
the Legislative Yuan.
terms. There is agreement on all sides (other
winnings will be exempt from personal income
Legislators across party lines reacted to the
than industry), that the government can reserve
tax for a period of 20 years after the first gaming
statement by the TAO head by asserting that it
the right to revoke a casino license on a no-
license is issued. The DPP objects to the 20-year
was up to Taiwan, not China, as to whether or not
fault basis. There is also political agreement
exemption. l
Asia Gaming Briefings | August 2015
NORTH ASIA 10
JAPAN
Japan’s Casino Bill champions in political decline The most powerful voices in Japan’s political world, who have been championing the so-called Casino Bill, have suffered reverses that seem to have dimmed the prospects for passage of the legislation.
Asia Gaming Briefings | August 2015
L
ast November, Hirokazu Nakaima, who
a popular referendum. Hashimoto says that he
favored bringing integrated resorts to
will retire from politics later this year.
his southwestern prefecture of Okinawa,
Among Japanese local government leaders there
was defeated in gubernatorial elections
has been no one as outspoken and aggressive
by Takeshi Onaga, who opposes the idea.
about the need for integrated resorts than Toru
Governor Onaga finally made his opposition
Hashimoto. He advocates using a manmade island
unequivocal as recently as July 17 when he told
in Osaka Bay called Yumeshima as a site for a
journalists, “Casinos are not suitable for the
major integrated resort. This land had originally
soil of Okinawa.”
been reclaimed as part of Osaka’s failed bid to
A much heavier blow to the casino project was
host the 2008 Summer Olympics, and Hashimoto
delivered exactly two months earlier on May
believes the introduction of casinos could create
17 as Osaka Mayor Toru Hashimoto suffered
an engine for local economic revival. He even
a humiliating defeat when his plan to merge
declared that the project would create between
Osaka Prefecture and Osaka City was rejected in
70,000 and 240,000 jobs, and that the casino
NORTH ASIA 11 developers might be contracted to fund a new
Yokohama remains keen on building an integrated
train line serving the island.
resort in its Minato Mirai district, which it
Toru Hashimoto’s political defeat in the Osaka
estimates could bring in annual revenues at
unification referendum also gave a black eye to
the 410 billion yen level (US$3.3 billion) and
the Yumeshima casino development project,
create employment opportunities for about
though it is not completely off the table. In
40,000 local residents.
early June, an annual research budget from
None of the local projects will become possible
the city and prefectural governments that
unless the national government passes the
had been proposed at the 114 million yen level
enabling legislation, known popularly as the
(US$927,000) was slashed to only 30 million
Casino Bill.
yen (US$244,000) at the insistence of rival
The bill was reintroduced to the National Diet
political parties.
on April 28, and since the ordinary Diet session
This research budget is to be used to compile a
has been greatly extended until September 27,
feasibility study and to lay the groundwork for
there ought to be more than enough time for it
more specific development plans.
to be debated and scheduled for a vote.
While Toru Hashimoto and his ally Osaka
However, at the national level too the main
Governor Ichiro Matsui remain committed to
champion of the Casino Bill has run into political
the Yumeshima integrated resort plan, their
trouble. Prime Minister Shinzo Abe, who
waning political influence is having a direct
views integrated resorts as useful to stimulate
impact on its prospects.
national economic growth, is watching his
But the picture at the local government level is
own popularity tumble after he forced deeply
not entirely grim. As Okinawa pulls itself out of
unpopular security legislation through the
the running and Osaka’s bid stumbles, Yokohama
House of Representatives.
city has emerged as the clear frontrunner.
Like the security legislation, the Casino Bill is also unpopular with the general public. A recent survey by the Tokyo Shimbun found 65
CASINO GGR ESTIMATES GGRE $6b (Source: Fitch based on two major IRs)
Pachinko annual revenue $153b (Source: Japan Productivity Center)
Dynam Japan Holdings says it will venture into resort development, which it sees as “a promising new business.” The company said it is well placed to move into the resort sphere as it has been operating pachinko halls for 48 years. The company identified Marine Pier Toyoura DYNAM Training Institute in Yamaguchi prefecture as the intended site for a new resort.
percent opposing the bill against only 30 percent in support. About two-thirds of the Japanese public—along with the ruling coalition Komeito Party—fear that domestic casinos will lead to higher rates of gambling addiction and crime, and will also be a bad cultural influence on Japanese children. In spite of his positive stance towards integrated resorts, there is no doubt that the security legislation is a higher priority for Shinzo Abe, as is the survival of his suddenly-faltering administration. As his popularity began to plummet, Prime Minister Abe quickly reversed himself on plans to build a highly expensive national stadium for the 2020 Tokyo Olympics. With his security legislation being so unpopular with the public, the prime minister seems to have calculated that it would be unwise to try to push through a separate unpopular policy.
Fitch Ratings says it believes Japan’s casino liberalization bill stands a better than 50 percent chance of being passed this year. It sees Japan’s casino industry as being modeled on that of Singapore, with limited licenses and an entrance fee levied on locals. Osaka and Yokohama are the likely locations for the two major IRs, which could generate more than $6 billion combined in revenues. This assumes 500 table games and 3,000 slot machines each and respective win per day rates of around $14,000 and $600.
From this point of view, it would seem that passage of the Casino Bill has also become endangered. With most of the Japanese skeptical about the social impact of hosting casinos, Prime Minister Abe may very well decide that he cannot afford to spend any of his rapidly dwindling political capital on passing this bill. The outcome remains uncertain, but the odds seem to be growing that Japan’s ruling coalition will quietly bury the Casino Bill for this Diet session and perhaps try again in the future. l
Asia Gaming Briefings | August 2015
Japan Gaming Congress Tokyo | 7 – 9 October, 2015
#JgC15 japangamingcongress.com
NORTH ASIA 13
GROSS GAMING REVENUE GGR 2014 (including lottery and racing) KRW19.87 trillion (US$17.64b) Foreigner-only casinos $1.25b Tourism arrivals May China arrivals
SOUTH KOREA
South Korea license bidding heats up With the door to casino gambling in Japan still firmly shut, South Korea continues to reap the benefit in terms of interest from foreign operators.
A
ccording to the country’s Ministry of
foreigners market can double from the current
Culture, Sport and Tourism, 34 groups,
base, that would equate to less than 10 percent
both local and foreign, have put
return on investment with approximately $5
forward proposals for new ventures.
billion of capital in the pipeline.
The ministry is expected to review the proposals
Competition for northern Chinese players will
and select around two potential sites in August,
also intensify over the next few years with
followed by a full request for proposal process
legalization looming in Japan and Vladivostok’s
in November. The licenses are likely to be issued
first casino due to open this year.
by the end of this year, local media has reported.
“We believe there is minimal chance of Korea
South Korea is seen as a natural market to
expanding gaming to nationals in the medium
attract tourists from northern China, which
term,” it added.
still remains underpenetrated in terms of
A government plan to allow locals to gamble on
tourism. Chinese visitation to South Korea has
cruise ships flying the national flag has faced
been rising strongly and gained 42 percent to
harsh criticism.
a record 6 million last year.
Critics have said that the maritime ministry’s
However, recently the country’s tourism industry
move will contradict the current near-nationwide
has been hit hard by an outbreak of Middle East
ban on locals gambling in land-based casinos.
Respiratory Syndrome, which prompted travel
The ministry promoting the local casino cruise
warnings from some governments, including
ships idea says there would be tough rules to
Hong Kong and Macau.
protect citizens from addiction and anti-social
Reports have said Macau’s Galaxy Entertainment,
behavior and that South Korean citizens are already
Suncity Group, a consortium made up of Genting
using foreign cruise ships for such activities.
and South Korea’s Lotte and NagaCorp, which runs
Maritime Minister Yoo Ki-june, from the
Cambodia’s biggest casino, have all made bids.
Ministry of Oceans and Fisheries, said locals
Caesars Entertainment, Mohegan Tribal Gaming
using such South Korean cruise ships would
Authority and Sega Sammy are also among those
only be allowed to gamble for five to six hours
interested in developments in South Korea.
at most per day while the ships are sailing in
However ratings agency Fitch was less enthusiastic
international waters. The maximum betting
about the prospects for the market, especially
amount for individuals would be below $100
given locals are banned from gambling in all
for a five-day trip.
but one of the country’s casinos.
Kangwon Land, the operator of the only casino
The agency said it agrees northern China
that allows locals to gamble, is said to be one of
remains underpenetrated, however even if the
the strongest opponents to the plan. l
June GGR E
+1%
+0.3%
+7.6%
+19.5% -20%
Grand Korea Leisure Co. says it has reached an agreement with Incheon International Airport Corp. to locate its latest casino resort on nearby land. The company says the memorandum of understanding between the two parties was signed after a careful study, but no further details were given. South Korea has waived visas for visitors from China and Southeast Asia through to the end of September in an effort to lure tourists after an outbreak of Middle East Respiratory Syndrome, which hit the tourism industry hard.
Asia Gaming Briefings | August 2015
NORTH ASIA 14
RUSSIA
Optimism remains despite regulatory uncertainty Potential investors say they remain upbeat about the prospects for Russia’s gaming zones, despite continuing regulatory uncertainty and the unpredictability of the government, which abruptly announced the shutdown of the Azov area earlier this year.
R
ussia banned gambling in 2009 apart
in this region. And we have resources for
Hoetzinger also mentioned several conditions
from four specially designated zones:
that,” he said.
that would make the zone more attractive
Azov in southern Russia, which to
However, as yet even the zone’s precise
for foreign investors: Russia should lower
date is the only functioning zone,
location has not been determined, with the
taxes and lift all restrictions on marketing
the Primorye region in Russia’s Far East,
final decision to be taken by the newly-elected
and advertising of casinos, and should also
Siberian Coin in Altay Kray and the Amber
governor of the territory.
simplify entry requirements for foreigners.
in Kaliningrad Region. Last year, Russian
“If the gaming zone is approved in the Krasnaya
Tax on gambling businesses is paid by
President Vladimir Putin also signed a bill
Polyana ski resort, then we propose to make
registered gambling outlets at a flat rate per
on the creation of two more zones in Sochi
two casinos there [to provide a choice for
table, or slot machine. For example, one slot
and Crimea.
potential gamblers] and no casinos in the Sochi
machine is taxed at 1,500–7,500 roubles ($27-
Peter Hoetzinger, CEO of Century Casinos, told
centre. If we talk about the centre of Sochi,
$135 dollars) a year, and one table at 25,000–
Asia Gaming Brief during the recent Russia
then up to four casinos may be successful
125,000 roubles ($450-$2,260 dollars) a year.
Gaming Week that he is willing to take a risk on
there,” Hoetzinger, who took interest in the
While zones such as Primorye enjoy simplified,
investing in Russia’s Sochi Gaming Zone, which
zone about three years ago, said.
or visa-free, access for foreign tourists, that
was formed to take advantage of infrastructure
However, due to the political and legal situation
privilege so far has not been extended to
built for the Winter Olympics. However, there
the exact timing of the company entering the
Sochi. Russian law also prohibits advertising
is still a lack of clarity on regulations.
Russian market is unclear, he said, adding that
of casinos and slot facilities.
“We are very interested in receiving directions
Sochi has “very similar potential to the gaming
Over in Primorye in the Far East, which is seen
from political leaders as soon as possible. I know
zone in Denver” with good infrastructure and
by many as the most promising of Russia’s
that my company and others are interested
sightseeing attractions.
gambling zones, Nicholas Middleton, vice
Asia Gaming Briefings | August 2015
NORTH ASIA 15
GROSS GAMING REVENUE Primorye Y16E $410m Y20E $1.7b NagaCorp Russia Y20E Ebitda $220m (Source: Citi)
Expected junket commissions Primorye 1.7% (Source: Citi)
Tax rate: RUB125,000/ gaming table and RUB2,500/slot per month
president of marketing for The First Gambling
zone. These include China, Japan, South Korea,
Company of the East, presented his company’s
Australia and Singapore.
Tigre De Cristal project. After many delays the
Middleton downplayed the delay in opening the
casino is now scheduled to open on August 28th.
resort, which has now been moved back to 28
The First Gambling Company of the East is a
August, saying such delays happen everywhere.
consortium involving Lawrence Ho’s Melco
The only casino in the Siberian Coin has
International Development and Summit
been functioning since December 2014, but
Ascent, Taiwan-based gaming device maker
is still not fully operational as there are no
Firich Enterprises, Hong Kong’s Perfect Giant
hotels and restaurants. On May 18, its owner,
Investments and local partner Elegant City Group.
Yevgeniy Kosikh, announced that the full-scale
According to Middleton, the opportunities for
opening has been postponed till 2016 as critical
gaming operators in Russia are “extraordinary”
infrastructure, including a road to the casino,
and Primorye is “the best among the zones”
has not been finished. The project is aiming to
outlined in the law.
attract Chinese businessmen who have business
“The political headwinds and the economic
in Siberia. As of now, its average attendance is
situation is favourable, as Russia and China
about 3,000 gamblers per month.
continue to build their relationship. We have
In Southern Russia, the situation with the Azov
great positioning, we offer a European-like
gaming zone, remains murky. The government
experience for Asian customers, as well as
announced the closure of the zone earlier this
millions of Russians who live in Primorye,”
year, for reasons that were unclear though, as
Middleton added.
of now, it is still operating.
“Our location [Primorye] is within a two-and-
While over in Crimea, similar to Sochi, investors
a-half hour flight from 300 million underserved
are still waiting to hear where any gambling
northern Chinese customers, as well as an
zone may be located. However, the head of
additional 100 million in north-eastern Asia,”
Russian-controlled Crimea, Sergey Aksyonov,
he noted.
also recently announced that the peninsula may
Other advantages include plans to upgrade
give up on the zone if it proves to be ineffective.
Vladivostok’s airport, which was recently bought
The construction of the first leg of Russia’s
by a consortium including Singapore’s Changi
westernmost zone in Kaliningrad is expected
Airport Group, and the fact that a number of
to be built by the end of the year. No launch
Asian countries have visa-free entry to the
date has been announced yet. l
Russia’s latest decree on the online gambling market failed to provide the clear regulatory framework to legalize online sports betting that many in the industry had hoped for and left more questions than answers. Decree No. 452, published in midMay introduced the concept of an online bet, but Russia experts say it doesn’t make it legal to accept bets through the Internet. Hong Kong-listed NagaCorp has broken ground on its planned resort in the Primorye region. The budget for the first phase of the venture has been put at between $50 million and $70 million.
Asia Gaming Briefings | August 2015
SOUTH EAST ASIA 16
PHILIPPINES
Pagcor remains upbeat on 2015 prospects despite investor gloom The Philippine Amusement and Gaming Corp. remains bullish about gross gambling revenue growth in the country this year, in sharp contrast with stock market investors who have turned sour on local operators’ prospects.
C Asia Gaming Briefings | August 2015
hairman Cristino Naguiat recently
as a potential boon, with new offerings able
reiterated his earlier forecast for
to lure away China’s high rollers.
a 20 percent gain in the Philippine
However, stock market investors have taken
market to about $3 billion, helped by
a different tack. Philippine casino stocks are
Melco Crown Entertainment’s newly opened
among the world’s worst performing year to
City of Dreams Manila.
date, partly amid concern that the country
At the beginning of the year, many analysts
won’t be able to attract the same levels of
had also tipped the Philippines to be one of
Chinese visitation as had been expected.
the world’s fastest-growing casino markets
Political tensions between Beijing and Manila
in 2015. The ongoing rout in Macau was seen
over the disputed Spratly Island chain in
SOUTH EAST ASIA 17
GROSS GAMING REVENUE Y14 $2.5b
+16%
H1E $1.4b
+16%
Y15E $3b
+20%
(Source: Pagcor)
4
Y15E
2
$3.31b
$2.77b
0 (Source: Morgan Stanley)
Gaming table growth: 1,013
1,075
1,152
595
Y14
Y15E
Y16E
Y17E
(Source: Morgan Stanley)
the South China Sea, coupled with a general
million, is expected to report gross domestic
casino resorts.
perception Manila is unsafe make the country
product growth of about 6 percent in the second
The company is planning a VIP resort on
a tough sell for the Chinese.
quarter, helped by government infrastructure
the island of Napayawan in the province of
In the first five months of this year, tourist
spending. That’s below the government’s own
Masbate with investment of about $300 million
arrivals in the Philippines increased 8.2 percent
targets for 7-8 percent growth for 2015, 2016,
and a $650 million mass to premium mass
to 2.23 million, with most coming from South
but an improvement from the first quarter.
property on Mactan, which is situated next
Korea, who accounted for 24.5 percent of the
Melco Crown Entertainment’s Philippine unit
to the popular and well-established tourist
total, followed by the U.S. and Japan. China
opened the third and largest resort in Manila’s
destination of Cebu.
is the fourth largest source of tourists, with
Entertainment City in February this year.
The company is currently in negotiations with
a 7.1 percent share.
The company is offering a broad spectrum of
the Philippine Amusement and Gaming Corp
Naguiat has cited the wider client profile of
leisure facilities, including a DreamWorks-
over licensing for the casino element, but
Philippine casinos as being one of their main
themed interactive play and creativity centre,
doesn’t expect to complete the process until
strengths. The market is currently split fairly
developed together with the DreamWorks
2016 after the next presidential elections.
evenly between local patrons and visitors
film studio.
However, the group has secured the necessary
from overseas.
At a grand opening of the attraction in June,
land and has approvals from local municipalities,
That leaves the question as to whether expansion
company executives said visitation has exceeded
agencies and the church to proceed with the
in the domestic market can support the new
expectations since its soft opening in March.
first stage of development.
casinos coming on line, or whether growth
Elsewhere, Macau Resources, which is
Michael Foxman, a director of Macau Resources
will come from cannibalization of clients from
73-percent owned by Sino-America Gaming
and managing director of Sino-America Gaming,
other properties.
Investment Group, is betting on islands further
said the company has teamed with Las Vegas-
The Philippines, with a population of about 98
afield in the Philippines to develop boutique
based hospitality and nightlife company Macro
Asia Gaming Briefings | August 2015
SOUTH EAST ASIA 18 Management to bring celebrity-branded
table games, catering to both the VIP and
third quarter of 2015. The casino will feature,
products to the two casino resorts.
mass market.
state-of-the-art gaming facilities, and an
Foxman stressed the resorts are not seeking
The company said it had around 20,000 visitors
indoor man-made beach club covered by a
to compete with the mega billion properties
on its first day.
huge glass dome, high-end and casual dining
springing up in Entertainment City and will
Melco Crown Philippines reported Q1 revenue
restaurants, upscale retail shops, trade halls
focus more on the islands’ appeal as a broader
gained to PHP2.34 million from PHP 21,334 in
and cinemas.
tourism destination.
the same quarter a year ago. Its loss per share
The group has also faced regulatory issues and
“In terms of product we are taking a strong
rose to PHP 0.63 from PHP 0.22.
needs a local partner to comply with Philippine regulations on foreign land ownership. l
focus on the leisure and nightlife experience,” he said, although he added that the casino component will be pivotal to making the resorts profitable and without the license the total investment is likely to be lower.
Resorts World Manila
Travellers International Hotel Group, a joint
The group is planning to begin the build out of
venture between Genting Hong Kong and
Phase 1 by Nov. 2016. The company is planning
Alliance, is pushing ahead with the expansion
a third resort in Dalian, China, without a casino
of Resorts World Manila.
and has secured 25 hectares of land.
Travellers president and CEO Kingson Sian told shareholders recently that it plans a PHP
OPERATORS
8 billion spending budget this year, higher than last year’s PHP 5.9 billion, to develop Phases 2 and 3 and kick off Phase 4. The expansion will cover a two-hectare area
Solaire Resort & Casino
Bloomberry Resorts posted a 9 percent rise in Q1 revenue, net of promotional allowances, to PHP6.43 billion. GGR was up 15 percent to PHP8.09 billion, split evenly between VIP and mass. Net gaming revenue, after the deduction of junket and other promotional fees, rose 8 percent. EBITDA in the quarter declined 19 percent, mainly on higher costs. Total expenses rose 42 percent to PHP6.2 billion. In November, 2014, the company opened its SkyTower, more than doubling the size of the resort, increasing the room count by 64 percent to 800. As of December 31, 2014, the group has 64 junket operators that actively bring in foreign VIP players. Solaire Rewards Club registered
currently used as a carpark. This will include a four-star international branded hotel offering 1,000 rooms, sitting atop a full-service shopping mall that will link Resorts World Manila to Terminal 3 of the Ninoy Aquino International Airport. The bridge will be finished next year and the last phase of expansion may be completed in 2019- 2020. The company has delayed the opening of a second Manila resort, the $1.1-billion Resorts World Bayshore along Manila Bay to 2018. Pagcor has approved new gaming capacity of 420 gaming tables and 4,148 gaming machines at the resort. At end-2013, Resorts World Manila housed 287 gaming tables for the VIP and mass markets, 1,822 slot machines and 210 electronic table games.
406,000 members and visitation for the year had reached 4.5 million.
Manila Bay Resorts City of Dreams
Belle Corp and Melco Crown held the soft opening of the $1.3 billion City of Dreams casino resort project in December and the grand opening on Feb. 2. The resort features about 950 hotel rooms under the Crown Towers, Nobu and Hyatt brands, as well as a family-oriented entertainment center designed by DreamWorks Animation. Melco has also teamed with the Ault Group to add two renowned nightclubs -- Pangaea and Chaos The property features about 365 gaming tables, 1,700 slot machines and 1,700 electronic
Asia Gaming Briefings | August 2015
Resorts World Manila is likely to be able to remain profitable because it is more of a casino destination for the premium mass and mass markets, Maybank analyst Rommel Rodrigo wrote in a note to clients. About 51 percent of gross gaming revenue comes from mass market tables and slot machines, the company’s main drivers.
Universal has requested an extension for the opening of its Manila Bay Resorts complex until the first quarter of 2017 and said it will invest a further $700 million. The company plans to increase the gross floor area by 97,000 square meters. The changes will result in “additional guest rooms and parking area and would also contribute to the strengthening of the structure and architectural design,” PAGCOR President and Chief Operating Officer Jorge V. Sarmiento told lawmakers. The company had planned to spend $2-billion on the resort, with a scheduled opening for the
Japan’s Universal Entertainment may have overcome a roadblock that was delaying its $2 billion integrated resort in Manila by selling its stake in a local affiliate that owns the majority of the land on which the casino is being built, according to media reports. Universal, controlled by billionaire Kazuo Okada, has sold its entire 40 percent stake in Eagle II Holdco to local firm All Seasons Hotels & Resorts Corp for $2.9 million.
SOUTH EAST ASIA 19
SINGAPORE
Singapore adjusts to online laws, social gaming still a grey zone Singapore has made its position against online gambling clear, outlawing the practice through some of the most draconian legislation anywhere in the world. However, the law has left major grey areas, in particular when it comes to social gaming.
S
ingapore’s Remote Gambling Act (2014)
maybe taking bets from Singapore citizens or
notice just ahead of the activation of the laws,
came into effect on Feb. 2 and criminalizes
in some way targeting Singaporeans. The laws
clarifying its stance on social games – one
the entire spectrum of remote gambling
also came into effect at reasonably short notice
which seemingly still leaves some grey area
activities. The restrictions are extremely
– it was late 2014 when the law was passed and
and grounds to prosecute certain operators.
broad and will be felt by operators, agents,
there was only a one or two week notice period
The clarification, released on January 28, stated:
brokers, service providers, advertising networks,
when it was known exactly when the law would
“The Act will prohibit casino-style games which
payment processors, financial institutions, ISPs
take effect.”
give players a chance to win money or real-
– and, of course, players.
It seems that most of the changes caused by
world merchandise” and added, “the act does
The legislation included the unprecedented
the laws actually came about through self-
not cover games which do not, as part of the
steps of allowing government agencies to geo-
regulation as nervous betting agencies ensured
game design, enable players to receive money
block websites, stop bank payments and even
they weren’t open to prosecution.
or money’s worth consequent to the outcome
issue extradition orders to offshore parties.
“As a risk management step in anticipation of
of that game.”
So what happened before February 2, prior to
the laws, most reputable operators had already
Gaming software operators with staff or
the law coming into effect, what has happened
taken steps to ensure they were safe,” Pollins
headquarters in Singapore were still concerned
since and, more importantly, what do experts
said. “People took quite a conservative view
– and some say they are still to receive full
expect to happen next?
of it and operators had already started to geo-
clarification of where they stand in relation
Matt Pollins, a lawyer from Olswang who
block Singapore from their sites, and most had
to the laws.
specializes in gaming law, watched closely
started to send emails to Singaporean players
“The whole situation is tenuous at best,” one
from his Singapore base as the industry tried
saying they would shut down their accounts
source said. “The laws are so wide-ranging
to make sense of the far-reaching laws.
and return any funds in accounts.”
and open to interpretation that we have even
“It’s fair to say that the industry didn’t know
Amid the speculation surrounding the laws was
heard that Twitter, because of some related
what to expect and the overwhelming feeling
the suggestion that social games that contain
advertising, is concerned. Even though these
was one of uncertainty in the lead up to the
elements of chance or monetary payment for
types of companies aren’t the intended target
laws being passed,” Pollins said. “There had
“tokens,” rankings or points would be banned
of the laws, they are in the crossfire and it is
never been a law in Singapore like this. There
– and games pushed on social media like Candy
hard to be completely relaxed.”
were a lot of companies that didn’t know how
Crush Saga and Farmville would be under threat.
The Industry of Home Affairs is the driving
it would effect them, not just in Singapore,
Singapore’s Media Development Authority
force behind the legislation and, in conjunction
but companies outside of Singapore that were
(MDA) took the unusual step of sending a
with the Singapore Police Force, is regulating
Asia Gaming Briefings | August 2015
SOUTH EAST ASIA 20 the laws. The Monetary Authority of Singapore
that exemption, that we know of - like having
is responsible for payment blocking while the
to be Singaporean based and distribute profits
MDA deals with site blocking.
to charity, but there may also be certain social
So far there have only been one set of arrests
safeguards in the form of restrictions that need
under the Remote Gambling Act as police busted
to be met as well. We won’t know those details
a suspected illegal gambling ring early last
until they are granted a license.”
month. Nine men and two women were arrested in various locations, but all in Singapore, in early May. Police suspect the group of taking
OPERATORS
GROSS GAMING REVENUE Y14 $6.12b
+1%
Y15E $6.06
-1%
(Source: Citi Research)
S$3million ($2.2 million) worth of bets in the space of two weeks and seized computers, betting records, bank details and more than S$200,000 in cash during a raid on May 2. So what is next? There is no sign that the full extent of the laws, like arrests in foreign jurisdictions and extradition orders, will be enacted by authorities on overseas operators – at least for small cases. Gambling law expert Yap Wai Ming, a director at Morgan Lewis Stamford LLC, believes that unless an overseas operator is particularly aggressive in targeting Singaporean residents, authorities will be content to stick with the mechanisms used so far. “As the arrests show, if they are located in Singapore, they will go after them, but I think if they are offshore they will simply use blocking mechanisms to stop them reaching Singaporean players,” Yap said. Further to that, Yap believes that if an operator has displayed due diligence in key areas, they should have a solid statutory defense should they be investigated. “If the sites have notified customers that betting from Singapore is not allowed, that would give them a full statutory defense under the remote Gambling Laws,” he said. “As long as they have undergone geo-blocking, have sought full verification of customer information and they have actually put notice on their websites, then they cannot be prosecuted.” Under the laws certain operators are able to apply for exemption and apply for special online betting licenses – a loophole seemingly aimed at Singapore’s two established legal operators – Singapore Turf Club and Singapore Pools, both not-for-profit, charitable organizations whose applications are believed to still be pending. “They should qualify for the exemption but I think are the only two,” Yap said. “To qualify for the exemption they must be local operators and they must be for charitable purposes. They are both government-owned and the profits are returned to social causes.” Pollins said there may be even more boxes the Singapore Turf Club and Singapore Pools will have to tick to qualify for the exemption. “There are certain provisions that come with
Asia Gaming Briefings | August 2015
GENTING’S Resorts World Sentosa
Spans 49 hectares and features six hotels, a convention centre, the region’s only Universal Studios theme park, one of the world’s largest aquariums, as well as restaurants and spas. The casino has more
Y14 $6.05 Y15E
-4%
(Source: Morgan Stanley)
Singapore Pools, Singapore Turf Club GGR five-year average $2.39b
than 500 tables and more than 2,400 slots. Genting Singapore said 15Q1 profit plunged 64 percent as VIP gaming dried up and the mass market remained relatively flat, with the company predicting no end in sight to the problems in the high roller segment. Net profit plunged to S$91.7 million from $257.5 million a year earlier. Earnings per share slumped
VIP tax 5% mass tax 15% International visitors Y15 Jan-April 15.1 million
-3.1%
72 percent to $0.52 cents. Revenue declined 23 percent to S$639.2 million. Adjusted EBITDA was $228.1 million, down 43 percent year-on-year. During the first quarter of 2015, the attractions business enjoyed a daily average visitation of about 16,000 and the hotel business maintained a high occupancy rate of 93 percent with the daily average room rate at S$381.
Las Vegas Sands’ Marina Bay Sands
Features approximately 2,600 rooms and
Singapore’s Ministry of Home Affairs is reviewing applications from the The Singapore Turf Club and Singapore Pools that would allow them to offer remote gambling services for their existing products. The Ministry said it will evaluate the applications based on the “strict” criteria set out in Section 26 of the RGA that include whether the entity is based in Singapore and whether the exempt operator is a not-forprofit entity.
suites located in three 55-story hotel towers. Atop the three towers is the Sands SkyPark, an extensive outdoor recreation area with a 150-meter infinity swimming pool and several dining options. The integrated resort offers approximately 160,000 square feet of gaming space with approximately 600 table games and 2,500 slot machines. In Q1, the resort generated adjusted property EBITDA of $415.3 million, a decrease of 4.6 percent compared to the first quarter of 2014. Non-Rolling Chip drop was $1.11 billion during the quarter. Rolling Chip volume decreased 22.0 percent to $10.09 billion for the quarter. l
Morgan Stanley says an upcoming extension of multiple-entry visas for Chinese tourists could help drive visitation but not gaming revenue at Genting Singapore, since the company remains cautious on extending credit. Bad debt provisions could remain high at 19 percent of VIP revenue in 2015.
SOUTH EAST ASIA
GROSS GAMING REVENUE
MALAYSIA
(Source: Morgan Stanley)
Resorts World Genting revamp in full swing, seen driving visitation Malaysia’s only casino operator, Genting, is now one and a half years into a huge RM5 billion ($1.3 billion) renovation project at its 50-year-old Resorts World Genting property, with construction works proceeding mostly to schedule, analysts say.
T
Y14
Y15E Y16E
$1.88 b
$2.04b
$2.42b
NFOs Y14 $2.82b Gaming tables Y14 550 Gaming tables Y16E 587 Share of Asia market Y14 1.9%
he renovation is expected to drive visitation
is crucial as it will be the amenity housing new
and add non-gaming attractions capable
gaming floors and gaming units like electronic
of attracting a wider tourism base.
table games and slot machines,” the analyst said.
RWG announced the “Genting Integrated
Tower 3 and Tower 4 are expected to be two new
Tourism Plan” in December 2013, detailing plans
high-end hotels offering 1,150 rooms each. The
to give Malaysia’s first-and-only gaming resort a
two facing blocks are slated for openings in 2017
much-awaited facelift. The plan includes building
and 2018 respectively, upping the room capacity
hotel Towers 2A, 3 and 4, a theme park, Sky
by another 20 percent, but fail to introduce the
Avenue, Sky Plaza, and a new cable car station.
architectural wow factor some of Asia’s other
The hill resort, located about an hour’s drive
casinos can boast.
away from capital Kuala Lumpur, had 20 million
The day of AGB’s site visit was the start of two-
visitors in 2014. It aims to lure 26 million tourists
week school holidays in Malaysia and Singapore,
by 2018 and 30 million by 2020.
and many parents brought their children to the
On a recent visit to RWG for an update on the
resort for a quick getaway.
renovation, AGB saw the property abuzz with
On the mass gaming floors, the Pontoon and
crowds on a June Monday, despite ongoing
roulette tables were occupied, while the others
construction works in some areas.
were less busy.
The resort is set to raise its total room capacity by
A good indicator of the business was during this
13 percent when a new hotel tower fully opens in
Chinese New Year (CNY) festive period. An analyst
July 2015. Tower 2A, a RM500 million extension
who visited the property on March 1, the second
of First World Hotel, will boast an inventory of
weekend within the 15-day CNY celebration, said
1,286 rooms when fully operational. As many
that the mass crowd was thinner compared to
as 412 rooms, from the lower levels to the ninth
that of last year.
floor, were soft-launched in December 2014.
“While there used to be an average three to four
The bulk of the rooms, from the tenth to 28th
rings of people per table, there were only one to
floors, are scheduled for opening either June or
two rings of people per table this year. However,
July, pending the passage of a fire inspection from
the minimum bets were raised from RM50-RM100
the authorities, an employee told AGB.
last year to RM100-RM300 this year, indicating
Along with First World Hotel, one of the world’s
the mass market is resilient despite recent macro-
largest hotels with 6,118 rooms, and four other
economic challenges,” a second analyst said.
brands including Maxims, Genting Grand, Resort
To boost gaming revenue and ward off growing
project, however, is the Twentieth Century Fox
Hotel and Theme Park Hotel, RWG currently has
competition from its regional peers, RWG recently
World, the first theme park licensed by the US
a total capacity of 9,770 rooms.
added a new VIP club called the Genting Club
studio.
“There is a strong correlation between the
Seasons, said the analyst.
This RM1 billion theme park will be a major selling
number of rooms and revenue at RWG. The timely
It is understood that the club has 10 new VIP rooms
point after the facelift, adding to the overall
opening of the Tower 2A and Sky Plaza is of utmost
themed on four seasons (spring, summer, autumn
appeal of its non-gaming attractions. Resorts
importance as the former will drive patronage
and winter). Most rooms have three baccarat
World Sentosa in Singapore, also developed by
to the latter,” said an analyst with a Malaysian
tables each, while a few have two baccarat tables
RWG’s owner, Genting Group, touts a Universal
firm, who tracks the region’s gaming industry.
and a roulette table each.
Studios theme park.
Construction of Sky Plaza, a lower building located
“Minimum buy-ins are RM3 million for junket
The new theme park, whose launch date has
below the yet-to-be-constructed new hotels
VIPs and RM2 million for direct VIPs; the minimum
been pushed back to late 2016 from early in the
Tower 3 and Tower 4, has reached the fourth floor.
bet is RM1,000,” the analyst said, adding it is a
same year, will feature more than 25 rides from
“At this juncture, we don’t see why Sky Plaza will
worthy addition to RWG’s gaming operations.
the studio genres such as action, animation,
not be opened by this year. Its timely opening
The real crowd puller of the RM5 billion renovation
adventure and sci-fi. l
Genting Malaysia Q1 revenue $575m
+3%
Genting Malaysia plans to sell its entire 17.8 percent stake in the group’s Hong Kong-listed unit Genting Hong Kong for a price of not less than $0.33 a share in cash. The total number of shares being sold is 1,431,059,180, meaning Genting Malaysia will raise at least $472.2 million in gross proceeds. Malaysia’s Chief Minister has dismissed the claim by an assemblyman that the Penang government will build a casino in the state. Lim Guan Eng said it was the policy of the state government not to allow a casino in Penang because it was not suitable for the local economy and the people.
Asia Gaming Briefings | August 2015
21
SOUTH EAST ASIA 22
Thailand
Las Vegas Sands eyes Thai casino, but faces uphill battle
Las Vegas Sands CEO, Sheldon Adelson, has offered to spend up to US$6.0 billion on a 450-room entertainment and casino complex in central Bangkok, but local support for legalizing gambling remains far from certain, even though some senior figures have thrown their weight behind the debate.
T
he talks, in mid-June, were the latest
visitors to border casinos in neighbouring
A key part is the promotion of Meeting Incentive
efforts by Adelson’s Las Vegas Sands
Cambodia and Laos where casinos are legal.
Conference and Exhibition (MICE) business, a
to break into the market, according
According to a study reported in local media
major draw-card in Thailand’s tourism sector,
to sources close to the situation. The
by academic Sungsidh Poriyarangsan, who is
with a development model incorporating a
plans were presented to senior Thai ministers,
also a member of the National Reform Council,
casino, but not dominating the project.
including Finance Minister, Sommai Phasee,
legalizing casinos could generate about 400
But many Thais remain opposed to legalized
who was at the centre of previous discussions
billion ($11.8 billion) to 500 billion baht per
casinos. Recent academic surveys indicated 35
with the U.S. gaming giant.
year. That would create a market almost double
percent strong support for a project similar to
Gambling is illegal in Thailand apart from
the size of Singapore.
that proposed by Las Vegas Sands’, but with
through the state lottery and the Bangkok Turf
Las Vegas Sands’ executives said their latest Thai
55 percent still opposed and the remainder
Club, however, it remains extremely popular
proposal was part of plans to develop several
uncertain.
with numerous illegal gambling dens spread
complexes across Asia, similar to the company’s
After initially remaining on the sidelines, Prime
throughout the country. Thais are also frequent
iconic Marina Bay Sands property in Singapore.
Minister Prayut Chan-o-cha, has now also come
Asia Gaming Briefings | August 2015
SOUTH EAST ASIA 23 George Tanasijevich, according to sources familiar with the negotiations. The possible location for the casino and entertainment project is land owned by the Finance Ministry and the State Railways Authority
GROSS GAMING REVENUE Annual GGRE $11.8b
of Thailand, which faces heavy debts.
Official lottery
Thailand’s latest casino debate has been led by the National Police Chief, General Somyot Paompanmoung. It was also taken up by members of the military-appointed National
Govt. target for reformed lottery
Reform Council (NRC) aimed at putting forward
Underground lottery
proposals for social and economic reform. General Somyot was cited by media as saying a website will be launched on Sept. 1st outlining
THB 20b ($625m)
THB 44b
THB 102b
(Source: Chulalongkorn University)
the pros and cons of casinos. General Prayut has since warned his police chief to stop speaking
30
Y15E 30m +20%
in favor of casinos. The underground casinos in Thailand are largely controlled by local station police. Since the Thai
25
Military came to power, there have been stepped up raids on the illegal casinos with small time operators having to close down operations to avoid arrest.
20
Y14 tourism arrivals 24.78m
(Source: DB)
Since the latest debate emerged, Prime Minister Prayut has largely sidestepped questions on the issue. The Thai media has been awash with rumours over the proposals, including suggestions that a senior Thai military figure was behind the push to lift the ban. In a commentary, “The Nation” newspaper asked whether Thailand needed the funds “to help prop up the economy,” or stop the outflow
Thailand has launched a major crackdown on illegal gambling dens run by South Koreans. More than 40 have been arrested so far this year, with police citing visafree entry for Korean nationals as being one of the attractions of the country.
of money to casinos outside the country, or rid out against the idea, saying the proposal needs
Thailand of bribery from illegal casinos.
further study.
“Before we ask the question whether casinos
Adelson, now 81, had been in talks with former
should be legalized, we should ask if we get
Thai Prime Minister and telecommunications
the expected benefits. If the answer is yes, we
tycoon Thaksin Shinawatra, who was in office
could go ahead with legalizing casinos,” the
from 2001 until being ousted in a September
commentary added.
2006 coup. The plans then were to build a
Debate has also centered over the style of
casino in the seaside resort of Pattaya 150
casino after the proposal by Las Vegas Sands
kilometers from Bangkok at the Ambassador
for an entertainment complex and casino and
City Jomtien Resort.
the extent to which locals would have access.
Since then Adelson has also approached former
Dr Visanu Vongsinsirikul, a lecturer in economics
Prime Minister Samak Sundaravej, who took
at Dhurakij Pundit University, says large
office from 2008. Samak was aligned with
entertainment complexes and casinos are less
Thaksin, who fled Thailand in 2008 to avoid a
appealing to Thai gamblers. Visanu, who gained
jail term for corruption.
his doctorate in the United Kingdom, said if
Adelson also held talks during the administration
Thailand moved ahead to legalize casinos, the
of Thaksin’s younger sister, Yingluck Shinawatra,
British model of small casinos was more likely
elected in 2011 and ousted by the military in a
to succeed with local gamers.
coup in May 2014.
He says the smaller casinos are in line with
A key person in the latest talks is the current
Thais of lower income levels. The middle-to-low
finance minister, Somai Phasee, also a member
income gambler prefers to travel to Cambodia
of the Samak Cabinet in 2008-2009.
and other neighbouring countries. “If they
The most recent Bangkok talks included
want to set up a legal casino I think the small
President and CEO of the Marina Bay Sands,
casino is more suitable than the entertainment
A government move to cap lottery ticket sale prices at THB80 ($2.34) is hitting small vendors hard. A survey of vendors in Chonburi province showed about 30 percent had thrown in the towel as they can’t make a profit at the official price, local media said.
complex,” he told AGB. l Asia Gaming Briefings | August 2015
INDOCHINA 24
GROSS GAMING REVENUE Y14 Y15E
Y16E
CAMBODIA
Analysts upbeat on Nagacorp, Donaco takes control of Star Vegas 500 electronic gaming machines.
Analysts are cautiously optimistic about the outlook for Cambodia’s largest casino operator, NagaCorp, saying improved connectivity with Macau, new junket relationships, an electronic table game agreement and expansion of the resort will drive growth.
“The upcoming opening of NagaCity Walk in 1Q16 bodes well for mass gaming revenue. The new resort could attract strong tourist arrivals to its new gaming facility amid improving accessibility,” analyst Eva Yip of EBS International wrote in a recent report. The company recently put out a positive profit warning, saying it expects its profit in the first half of 2015 to be at least $100 million, boosted by an electronic table gaming accord with a group
Cambodia is currently working on new draft casino the second half of this year. Part of the proposals may include revisions to the gaming tax away
iti analysts held a recent meeting with
from a lump sum payment to a levy calculated
management and reported back that VIP
on GGR, Citi analysts said.
operations at NagaWorld in Phnom Penh
They added that Naga may voluntarily pay more
remain solid. One Macau-based junket,
tax this year to lobby hard for as low a gaming
which began operations a year ago continues to
tax as possible. They said that tax is likely to be
bring in business, while a few more Macau-based
introduced in 2017 and may be as low as 7 percent,
junkets, including Sun City will be soft-launching
among the lowest in Asia.
operations in the near term.
Meanwhile, Donaco International has completed
Also aiding VIP visitation has been increased air
the acquisition of the Star Vegas Club and Resort
links with Macau. Bassaka Air has been running
in Poipet, Cambodia in a deal that it says will be
two weekly flights since May 1, with a load factor
transformational for the company.
averaging 60 percent.
Ben Reichel, executive director of Donaco
With its existing resort operating close to full
International, said Star Vegas is performing
capacity, Hong Kong-listed NagaCorp is planning a
well and expects the casino to sharply increase
$369 million expansion, currently known as Naga2.
revenues for the company.
The new resort area has a total built up area of
“We are very pleased to have successfully completed
110,105 square metres, which includes the NagaCity
this deal. The Star Vegas business is robust, and
Walk, with about 13,248 square metres of retail
is performing strongly. The handover process
and public space. It will have about 1,000 hotel
has been very smooth and seamless so far. We’re
rooms, 38 luxury VIP suites and a multi-purpose
excited to be entering this new era for Donaco,
entertainment theatre. The additional gaming
with Star Vegas set to increase our revenues by
space will involve about 300 gaming tables and
around 500 percent.” l
Asia Gaming Briefings | August 2015
+23%
1H15E profit $100m Y15E profit $205.8m Y16E $187.6m Y17E $238.1m H1 tax revenue $12m
legislation, which is expected to be introduced in
C
Y14 GGR $381m
million for the management of about 300 machines.
gaming machines at a later date.
$483m
NagaCorp
(Source: EBS International)
$10 million with Naga to buy state-of-the-art
$443m
(Source: Morgan Stanley)
of four investors under which it will receive $40 The investors have agreed to deposit a further
$381m
+20%
China LotSynergy said it has teamed with Cambodia’s National Sports Lottery Company to launch a hotline transaction system, betting terminals and lottery games, marking a milestone for the company’s international expansion. Jimei International said one of its units will run a junket operation at NagaCorp’s NagaWorld casino in Cambodia for an initial period of one year. The company said it currently plans to promote at least seven VIP tables, though that may change over time. The one-year contract will be extended automatically for another year, unless either party gives notice of non-renewal.
INDOCHINA 25
Y14 Donaco revenue
VIETNAM
Gaming & hospitality $2.05b
+33%
VIP $2.71b
+67%
Slots $2.71b
+144%
April Y15 Casino visitation
+43%
VIP turnover April $219m
Visitation
Vietnam struggles with sports betting legislation Vietnam, which is debating draft legislation that will update its casino market, is also struggling with separate laws to legalize sports betting.
T
he bill has been under discussion for
from Vietnamese citizens travelling to border
more than five years and, in an effort
towns in Cambodia.
to break the deadlock, Prime Minister
Local access is expected to be allowed on a trial
Nguyen Tan Dung recently ordered
basis in one or more of the country’s large
the Ministry of Finance to consult with related
integrated resorts, such as the Ho Tram Resort
agencies to resolve outstanding issues.
Casino, formerly known as the Grand Ho Tram.
According to a 2007 survey done by U.K.
In the meantime, investors continue to express
bookmaker Ladbrokes and cited by Vietnamese
interest in the country and new projects are
media, the turnover from illegal gambling on
continuing to emerge.
sports events runs at about $3 billion to $4 billion
Prime Minister Dung recently approved the
a year, resulting in significant lost revenue for
construction of a $1 billion complex on Vu Yen
the government.
Island in the northern port city of Hai Phong,
Some of the sticking points include a proposal
which local officials hope will eventually
to cap the maximum daily bet at VND1 million
include a casino.
($46). Some say that limit is far too low and
The island will be developed into an “ecological
will do little to bring those gambling illegally
zone” with villas, a 36-hole golf course, and
into the system.
amusement parks spread over an area of 872
Nguyen Van Hien, chairman of the parliamentary
hectares in the districts of Thuy Nguyen and
judicial committee, has proposed increasing
Hai An.
the limit five times.
Hai Phong Chairman Le Van Thanh was cited
Meanwhile, there is still no clear timeframe for
as saying the development will attract more
when Hanoi will approve new casino gambling
tourists to the city but, to achieve its aims a
legislation. The new laws are widely expected
luxury marina, dock, five-star hotel, a casino
to allow locals to gamble in the country for
and a cable car system should be added to the
the first time, helping stem a loss of revenue
project plan. l
Y15 Jan-June 3.8m
-11.3%
June arrivals 5.3m
-8.2%
Vietnam’s government has approved a new location for a proposed casino resort on Phu Quoc Island off mainland Vietnam’s Kien Giang province. The site to be pitched to investors will be at Bai Dai Ecotourism Area in Ganh Dau Commune on the island instead of Bai Thom Commune, which is expected to be more appealing to foreign investors. The developer of the Laguna Lang Co resort is moving ahead with Phase II of its multi-million dollar resort project and expects to select a casino operator in early 2016. Laguna Lang Co is similar to Laguna Phuket “only master planned on a far grander scale,” said Andrew Klebanow, partner with Global Market Advisors.
Asia Gaming Briefings | August 2015
SOUTH ASIA 26
INDIA
Casino operators eye Indian tourist dollar China’s exploding outbound tourism market and how it will shape the future of the global leisure and luxury industries over the next decade has been well documented but, so far, less attention has been paid to giant neighbour India, which offers similar potential.
I Asia Gaming Briefings | August 2015
ts already 1.2 billion population is expected
2020, a 14 percent annual growth rate, or 8
to expand by 51 percent up to 2050, while
percent in real terms. While the Brookings
China in absolute terms is expected to
Institution forecasts that by 2030, India
begin to shrink from 2030 onwards,
will be the world’s biggest consumer, with
the United Nations World Population report
its middle class spending more than $12.8
forecasts. According to World Bank estimates
trillion per annum.
its middle class is likely to swell to more than
The global middle class is defined as households
1 billion by 2025, or about two thirds of its
with daily expenditures between $10 and $100
forecast population at that time.
per person in purchasing power parity terms.
The Boston Consulting Group says consumer
Add to that a natural propensity to gamble
spending in India is likely to more than triple
and it’s easy to see why the India card is likely
from $991 million in 2010 to $3.6 trillion by
to play an increasingly important role in the
SOUTH ASIA 27 number of Indian outbound tourists in 2013 was 14,924,755, an increase of 11.4 percent over 2012. Figures for 2014 aren’t yet available. According to the Tourism Ministry, the top
GROSS GAMING REVENUE GGR $60b
five destinations were Saudi Arabia, Thailand, Singapore, Kuwait and the U.S. Tourists to Saudi Arabia were most likely making a pilgrimage to the Haj, whereas Kuwait numbers may be skewed by job seekers entering the country as tourists. Macau, seeking to diversify its tourism base away from mainland China, has set out to woo the Indian visitor with some success in recent years. More than 150,000 Indians visited Macau in 2014, according to figures released in May this year by the Macau Government Tourism Office. That pales in comparison with the 21.2 million arrivals from China, but shows explosive growth from the 29,000 recorded in 2006. However, some experts say the Macau offering is too focused on Chinese players whose game (Baccarat), service and entertainment requirements (spa, sauna, and KTV) are almost the opposite of Indian players (Roulette, poker, rummy, and other derivative card games, decent service, and a lively atmosphere within the casino). investment decisions of foreign gambling
Singapore, whose two casinos are among its
operators.
prime tourist attractions, also receive hundreds
Casino gambling in India is restricted mostly
of thousands of Indian visitors every year, with
to Goa and Sikkim states, but betting on horse
the number increasing almost three times
racing and the lottery is legal, as are card
between 2000 to 2013, according to figures
rooms for Poker and Rummy. Consultancy
released by Singapore Tourism Board.
firm KPMG estimates that $60 billion was
Neighbouring Nepal, where gambling is legal,
wagered in India in 2010 on lottery, online,
also gets the majority of its tourists from India,
cricket, and card games. Around $40 billion
with 180,974 visiting in 2013, according to
of that is thought to have been bet illegally.
Ministry of Culture Tourism and Civil Aviation
Domestically, the industry continues to be
statistics. However, the data falls far short of
plagued by political bickering and regulatory
the true numbers of Indians visiting Nepal
uncertainty and is thought unlikely to open
as those crossing by land are not required to
further to gambling any time soon.
show a passport and aren’t counted. Many
Delta Corp, the largest and most organized
border crossings are also open 24 hours a day.
player, has received permission to start a new
The three Indian states bordering the mountain
floating casino in Goa, but does not yet know
Kingdom include the capital New Delhi and
where it can locate the ship as the government
have a population of more than 400 million.
wants to move casinos further away from the
They are also well served by the country’s
Mandovi river.
major highway systems, as the East-West
The group opened its ambitious integrated
Corridor and the northern section of the
casino-cum-resort in Daman last year, but
Golden Quadrilateral pass through all of these
the casino has yet to begin operations.
border states.
Jay Sayta, a lawyer and expert on gambling,
The country’s potential attracted Silver Heritage
said it may take up to a decade for the climate
Group, which announced plans in December
within India to become favorable to legalized
last year for a $100 million investment in five-
gambling.
star facilities in phases along Nepal’s borders
However, the pent up demand is there. So,
with India. Its investment rationale was driven
where will this newly rich Indian middle class
by expected Indian demand. l
Illegal betting ($40b) 66% (Source KPMG)
Deltin Q1, Y15 Gaming revenue $11.7m
+10%
Foreign tourist arrivals Y14
+6.8%
Indian outbound tourism Y13 $14.9m
+11.4%
Foreign exchange earnings from Tourism Y14 $19.6b
+6.6%
Goa’s state government has framed draft rules to prevent locals from entering casinos. Any person under 21 and any Goan is subject to arrest under the proposed legislation. Locals working in casinos won’t be affected, according to local media. Goa’s offshore floating casinos are facing an ultimatum to either relocate out of the Mondovi river or not have their operating licenses renewed. The first of the licenses comes up for renewal on August 29th. Other potential sites include Aguada Bay, Chapora river or the Zuari river.
travel to satisfy their desire to gamble? The
Asia Gaming Briefings | August 2015
SOUTH ASIA 28
NEPAL
Back in business
Travel & tourism 8.9% of 2014 GDP (Source: WTTC)
Nepali authorities are in the process of assessing damage to the country’s all important tourism sector after the deadly earthquake that hit the country on April 25, though casino operators say they are already back in business and expect any impact on revenues to be temporary.
T
he earthquake, which measured 7.8
to present to the donors by June 5 for recovery
according to the U.S. Geological Survey,
and reconstruction.
killed nearly 9000 people and injured
“While the massive cancellations (of hotel
20,000. Nepal’s biggest natural disaster
bookings) were natural after such a huge
in 80 years also destroyed half a million houses
disaster, it happened during the off season, so
and buildings and is expected to lead to a big
we were spared of losing the tourists in peak
hit to the economy, which relies on tourism for
season,” Prabesh Aryal, executive manager of
more than 8 percent of Gross Domestic Product.
the Hotel Association Nepal, told AGB. “For a
Nepal’s casino industry hopes to boost tourism
week after the quake, hotels were booked to
and assist with the recovery.
capacity because of the delays in flights and
The initial tremblor was followed by another
incoming journalists. But now all we have is
powerful earthquake measuring 7.3 on the
only a small number of relief workers.”
Richter Scale on May 12, while even a month
However, as reconstruction gets under way,
after the first quake, aftershocks measuring 4 to
the casinos, which reopened in February 2015
5 in magnitude continued to rock Nepal, which
after a year-long shutdown for failure to comply
sits on the seismic fault lines of the Indian and
with new regulations, may benefit as Indian
Tibetan plates.
businessmen continue to enter the country
Insurance and risk management company
for leisure and for business.
Aon has estimated that the quake could cause
Three casinos -- The Millionaire’s Club &
economic losses to Nepal of about $5 billion,
Casino at the Shangri-La Hotel & Resort, Casino
or 25 percent of its GDP.
Mahjong, and Casino Royale -- all closed after
About 800,000 tourists visited Nepal in 2014,
the quake but reopened two weeks after the
according to the Nepal Tourism Board. Nearly
disaster following the Nepali tradition of 13
half of them visited the country for leisure,
days mourning out of respect for the victims.
with 13 percent travelling to the Kingdom for
Casino Royale at the Yak and Yeti Hotel was first
mountaineering and trekking.
to open its doors on May 8, when a handful of
A week after the disaster, the government
Chinese and Indian gamblers heeded the call.
formed a Tourism Recovery Committee to carry
The Millionaire’s Club and Casino at Shangri-
out an assessment of damage to the tourism
La also opened for business on May 9, while
sector, including trekking, mountaineering,
Casino Mahjong at the Soaltee Hotel began
hotels and heritage sites.
operations on May 10.
Headed by Tulasi Prasad Gautam, the director
After the second major shock, The Casino Royale
general of the Department of Tourism, the
and Casino Mahjong remained closed for three
five-member assessment committee has been
days while The Millionaire’s Club & Casino at
consulting stakeholders and making field trips
Shangri-La shut only on the day of the quake in
to prepare a detailed report on the quake’s
consideration of the safety of players and staff.
implications for the industry.
Paul Simmons, senior vice president of casino
“We have sent our teams to 11 districts (affected
operations at Silver Heritage Limited, the Hong
by the quake) to collect data on the damage.
Kong-based gaming company that owns the
We are gathering information on the damages
license and operates The Millionaire’s Club &
to buildings for hotels and restaurants, loss of
Casino, told AGB that he expected the casino
employment and equipments,” Gautam told AGB.
industry to quickly bounce back.
He said the committee’s report would be handed
“The casino industry worldwide is known for
to the National Planning Commission, which
its resilience in troubled times. Locals are not
is working on post disaster need assessment
permitted to play in the casino, so there will be
Asia Gaming Briefings | August 2015
Employment in travel and tourism in 2014, 3.5% of total
Prior to the earthquake, The World Travel & Tourism Council ranked Nepal 26th out of 188 countries on the list of fastest growing Travel & Tourism economies in 2015. The US, the UK and New Zealand have lifted restrictions on their citizens travelling to Nepal, except for districts hit hard by the earthquake, and more countries are likely to follow suit, Nepal Tourism Board officials said.
no loss of business locally, however supplies of building materials and food which are flooding into the country are providing opportunities for Indian businessmen, our target audience, who are now flowing into the country,” he said. Some of the country’s other casinos, which had remained shuttered following the introduction of the new regulatory regime may now be demolished completely. Casino Anna, which failed to pay the lease on land belonging to Hotel Annapurna, had received an order a few days before the quake to vacate the complex, according to Kumar Shrestha, the casino’s operations manager. However, after the April 25 earthquake, the 23 year-old building received a red sticker, meaning that the structure is currently unsafe for habitation. “It is now being demolished. In its place, the hotel plans to build a multi-storey parking lot,” Shrestha told AGB. Hotel Everest is the only five-star hotel with a casino that received a red sticker, although for now it will remain standing pending further assessment. The interior of Casino Tara at Hotel Hyatt has also been damaged by the quake. l
SAVE THE DATE G2E 2015
SEPTEMBER 29-OCTOBER 1, 2015 • SANDS EXPO & CONVENTION CENTER • LAS VEGAS, NV SEPTEMBER 28: iGAMING CONGRESS, SECURITY & SURVEILLANCE INSTITUTE, G2E 101, THE HOTEL SEMINARS AT G2E, AND MORE!
NETWORKING, EDUCATION AND BUSINESS INSIGHT. GET THE INSIGHT YOU NEED TO WIN IN THE MARKET. New interactive and technologically dynamic seminars. More industry experts covering the most critical issues. An even bigger show floor filled with everything gaming and non-gaming. GLOBALGAMINGEXPO.COM PRESENTED BY
SPECIAL FOCUS 30
Macau needs better branding, tourism planning for successful transition Macau, whose meteoric success was fueled by the high-spending VIP gambler, needs to improve its branding and tourism planning if it is to transform to a majority non-gaming model and replace income from the missing high rollers.
W
hile the mass market gambler is more
gaming destination and generate sufficient volume to
profitable for the casino in terms of
recreate the revenue growth seen in the past.
margin than the VIP counterpart, it still
“I doubt that Macau can achieve an image [of a new
requires between 6.25 and 12.5 grind
Las Vegas] among Chinese visitors, which would
mass bodies to replace one VIP, according to CLSA
bring a lot of non-gaming high-spending guests to
estimates. It takes 3.75 grind mass players to replace
Macau. So it will not be an easy task to make the move
one premium mass customer.
towards the Las Vegas model,” said Professor Wolfang
The average visitor is also likely to spend less and
Georg Arlt, head of the China Outbound Tourism Arlt
doesn’t have the same amount of money to splash on
Research Institute.
Macau’s luxury retail outlets and five-star hotels. Add
He said Macau is not “exotic” enough for high-spending
to that government plans to cap the number of Chinese
Chinese visitors and also pointed to the capacity problem.
tourists entering at 21 million and it’s hard to see how
“If non-gaming means less spending per day per visitor, the
the territory will shift to a mass market, majority non-
question of carrying capacity arises -- how many Mainland
Asia Gaming Briefings | August 2015
SPECIAL FOCUS 31 government following one marketing message and the operators largely following their own individual agendas. “You need to have clear distinctive branding. If you look at destinations that are successful, the branding they have is clear, distinctive, compelling and believable.” At present the operators still rely on gambling for almost 90 percent of their income and success in monetizing non-gaming elements has been mixed. Take MGM Resorts International for example: While its US operations have shifted their major revenue stream from casino operations to leisure and entertainment with only 40 percent from gaming, MGM China invested $108 million on non-gaming promotion last year but it only earned $41 million, according to the Financial Times. All six of Macau’s gaming concessionaires will have new projects on the Cotai strip by the end of 2017 and each will boast an array of nongaming elements. Galaxy Entertainment opened its Galaxy Phase II and Broadway Macau resorts in May, but reaction so far has been muted with little impact seen on visitation or GGR growth. Melco Crown Entertainment will be the next to open with its giant cinema-themed Studio City resort later this year. However, the new resorts, which were conceived when Macau GGR was on a steep upward trajectory, also still feature mainly high-end hotels and luxury retail, which will do little to dispel the perception that the territory is not Chinese visitors can Macau accommodate before
within China without value-added-tax, the falling
for the ordinary leisure traveller.
it becomes simply too crowded?”
number of Chinese tourists to Hong Kong may
“It will be difficult to fill the resorts at that
However, with gross gambling revenue falling
provide new opportunities for Macau, Ma said.
price point,” McCartney said. “We will see a
for the 13th consecutive month in June, the
According to Macau Tourist Office statistics,
decline in prices, but it’s difficult to drop the
government is focused on its longer-term aims.
two-thirds of Macau’s visitors in May were from
price that much of a high-end hotel. We will
In this year’s policy address, Macau’s chief
Mainland China. But the cumulative number
see a lot of packaging and marketing.”
executive Fernando Chui Sai-on again stressed
of Mainland tourists has dropped 3.1 percent
He also pointed to the problems of attracting
the need to diversify Macau’s economy to reduce
on a year-on-year basis.
more MICE business to Macau until general
its dependence on gaming -- a transformation
Ma doubted if Macau would be able to compete
infrastructure improves. He said he ultimately
Las Vegas has already achieved.
with neighboring cities, such as resort island
believes there are solutions to the territory’s
The U.S. city’s gaming/non-gaming revenue
Hainan, if operators solely focused on offering
shortcomings, but it won’t be in the short term.
mix changed from 60/40 percent in 1970 to
resort-type experiences. Comparing the number
Professor Altr does not share the same level of
37/63 percent in 2013.
of domestic tourists, Hainan had 35.9 million
optimism. According to him, Macau’s gaming
“Many people compare Macau to Las Vegas
visitors in 2013, almost double the number of
industry is learning a hard lesson about the
but their positioning is not quite the same,”
Macau at 18.6 million.
Chinese consumer.
Hoffman Ma Ho-man, deputy chairman of
Glenn McCartney, an assistant professor of
“More than other markets, large parts of
Success Universe told AGB.
gaming and hospitality management at the
market segments follow the trend of what is
“While Las Vegas mainly targets tourists from
University of Macau, said the transition from
hot and what is not. So the seemingly unending
North America and entertainment appears
a gaming-dependent model is being hampered
growth can abruptly turn south if it goes out
such an important element, Macau mostly
by the lack of a cohesive marketing strategy
of fashion to buy a certain product or go to a
attracts tourists from Mainland China and
and tourism masterplan from the government.
certain destination.”
their appetite for shopping is stronger than
He said the government has adopted the slogan
“There will be a ‘new normal’ but the days
entertainment.”
of calling Macau a “world-class city,” but has no
of frenzied growth seem to be over for the
With Hong Kong and Macau the only two cities
clear definition as to what that means, with the
foreseeable future,” he added. l
Asia Gaming Briefings | August 2015
SPECIAL FOCUS 32
Macau’s luxury malls turn to High Street as VIP spending shrinks Macau’s retail malls, dominated by the luxury brands favored by high rolling mainland Chinese, are turning to more affordable High Street names as VIP revenue falls, but the shift is unlikely to have a major impact on operators’ profits, analysts say.
A
lthough retail revenues have moderated in
Seasons Macao and Sands Cotai Central) and Marina
Macau, the downturn has been less severe
Bay Sands in Singapore reached $134.4 million for the
than the slump in overall gross gambling
second quarter of 2015, an increase of 13.6 percent
revenue, which dropped 36.2 percent in June,
compared to the second quarter of 2014.
declining for the 13th consecutive month.
“Interestingly, despite much talked about overhang
In Q1, retail sales declined 10.7 percent to MOP 16.41
in higher-end spending in Macau, LVS’ mall revenues
billion ($2 billion), according to government figures.
across the portfolio are up strongly, in the range of
Watches and jewellry were the hardest hit, slumping
+15-30 percent this quarter,” UBS analyst Robin Farley
nearly 28 percent.
wrote in a note.
However, Las Vegas Sands, the first of the operators
But the market is changing and success will hinge on how
in Macau to report Q2 earnings, said its Asian retail
well retailers adapt to the tastes of the new client base.
operations had shown considerable resilience, despite
When soccer star David Beckham was in Macau recently
the slump in the luxury market.
on behalf of Las Vegas Sands, it was to promote a
Gross revenue from tenants in the company’s retail
decidedly different image of the city to a different
malls on Macao’s Cotai Strip (The Venetian Macao, Four
class of consumer.
Asia Gaming Briefings | August 2015
SPECIAL FOCUS 33 The sporting superstar who was there earlier
a decline of 18 and 19.2 percent at constant
after a slight decline of negative 1 percent in
in the year as part of an ad campaign in which
exchange rates.
2014. Bernstein Research’s channel checks
he was filmed in LVS’ properties dressed in
“The decrease in local consumption and
indicate sales for luxury goods are down 10
sharp suits and enjoying moments of luxury
tourist flows, especially in Hong Kong and
to 40 percent in Hong Kong with around a 5
was in Macau in June to launch high-street
Macao, prolonged a period of stagnation that
percent additional decline in Macau.
brand H&M’s first store in Macau.
has now been underway for several months,”
However, a shift from high-end to more affordable
The Swedish retailer, whose men’s shirts sell
Prada SpA said in a filing.
goods is not going to have a meaningful impact
for around $25, has plans to open an additional
Similarly, Chow Tai Fook, the largest jeweller
on operating profit, says Grant Govertson at
store later in 2015.
listed in Hong Kong, recorded revenue of
Union Gaming, due to the small component
Linda Switzer, vice president of retail operations
HK$64.2 billion ($8.2 billion) in FY2015,
of total profit that non-gaming represents.
for SJM, said the the pressure on retail should
representing a year-on-year decrease of 17
“As such, changes in tenant mix (and presumably
see operators adjust their product range to
percent. Its gross profit decreased 9.8 percent
changes in rental income) are unlikely to have
accommodate a shift in the customer base.
to HK$19 billion.
a big impact,” Govertson said in an email.
“As more and more retail offerings appear with
Francis Gouten, director of Gouten Consulting,
Govertson said in the long term the mass market
the new properties opening, there will be a
said some brands have already reduced their
will remain the biggest driver of earnings
greater assortment of brands. It’s inevitable.”
prices in Greater China to remain competitive
growth in Macau over the coming years.
“We have to remember that everyone is still
with their European line. However, a better
“With this in mind, we think having more
making money,” Switzer added.
strategy, would be to launch new products
mass market-oriented retail makes a lot of
However, at the top end Cartier, Prada, and
and target the medium-high market, along
sense. In all likelihood, we will continue to
LVMH are just some of the brands that have
with scrapping a culture of gifting, he said.
see more and more non-luxury retail options
cited Hong Kong, Macau and China as the lame
Gouten says H&M’s entry is an example of this
coming to Macau to provide a better fit for the
ducks of their geographic markets.
type of aspirational brand at a lower price point.
future customer base.
Prada’s net revenues in the first three months
Some of the “non-luxury price but luxury
“I don’t think there is a major risk of vacant
of this year amounted to 828.2 million euros
image brands are looking to China and Macau.”
retail spaces as the next wave of resorts come
($909.1 million), a year-on-year increase of
Bain & Co., an adviser to the global luxury
online. However, I think the mix of retail
6.5 percent, while Greater China contributed
market, forecasts the 15 billion-euro luxury
tenants is likely to be different (perhaps quite
net sales of 199.3 million euros, a decrease of
goods market in Mainland China will contract
different) than operators may have envisioned
0.4 percent at current exchange rates, and
2 to 4 percent in 2015 at constant currency,
just a few years ago.” l
Asia Gaming Briefings | August 2015
SPECIAL FOCUS 34
Melco counts on Batman, magic to lure crowds to Studio City With the opening of Galaxy Entertainment’s Phase II development seemingly doing little to generate additional traffic in Macau, the focus has now shifted to the launch of Melco Crown Entertainment’s $3.2 billion Studio City property later this year.
M
ost analysts see the cinematic-themed
“We strongly believe that the continuous diversification of
property, which is scheduled to open October
Macau’s leisure and tourism offerings will lead to sustainable
27 this year, as the true game changer when
long-term growth,” Melco Chairman Lawrence Ho told
it comes to boosting non-gaming facilities
AGB in emailed comments. “Therefore, we are continuing
in Macau and therefore a better indicator as to whether
our respective efforts through the development of Studio
the territory can diversify and attract a wider tourist base.
City, which is committed to contribute to the ongoing
Construction on the resort, located next to the Lotus Bridge
transformation of Macau into Asia’s Entertainment Capital.”
immigration point connecting Hengqin Island and a future
“We believe our unique offerings will create unique
station-point for the Macau Light Rapid Transit, is now
entertainment that appeals to visitors from mainland
advanced. The property’s art-deco facade and design is
China, other parts of Asia and around the world.”
clearly visible, with its giant figure-eight ferris wheel
“Having said that, we will also strive to remain competitive
front and center.
in our gaming business, as advancement in the non-
The company says the resort will feature more non-gaming
gaming businesses will depend on success in our gaming
amenities than any properties currently on the market,
business too,” he said.
with 95 percent of its components not related to gambling.
The resort will include Asia’s highest Ferris wheel, Golden
Asia Gaming Briefings | August 2015
SPECIAL FOCUS 35 Reel; the world’s first flight simulation ride based
still don’t expect Melco to obtain all of the gaming
it the financial firepower.
on the Batman intellectual property franchise,
tables it had requested from the government.
Analysts at Sanford Bernstein said the new credit
Batman Dark Flight digital ride; and the Warner
Galaxy Entertainment only got 150 tables of the
facility will provide the company with over $1
Bros. Fun Zone which is packed with rides and
400 it had asked for, as the government sent a
billion in additional liquidity, on top of the $1.7
interactive activities themed around popular
clear signal it was going to stand by its policy of
billion unrestricted cash on hand.
Warner Bros. and DC Comics characters.
capping annual table growth at 3 percent a year.
“We believe the additional liquidity may be used
Other attractions include The House of Magic,
Melco Crown in the latest Studio City quarterly
in relation to the potential acquisition of the 40
hosted by acclaimed illusionist Franz Harary; a
report said that if the new property was allocated
percent JV partner in Studio City, which we argue
5000-seat Studio City Event Center; a working
“fewer than 400 tables,” it would have “a material
could be a near-term catalyst,” analysts Vitaly
TV studio known as Studio 8; and Macau’s first
adverse effect on our cash flow.
Umansky, Simon Zhang and and Bo Wen wrote.
Pacha Macau mega club, which brings Ibiza-style
It could also affect its ability to meet “certain
“By acquiring the minority interest in Studio
nightlife to Macau and Greater China.
conditions and requirements of the Studio City
City, MPEL may be more willing to reallocate
In terms of retail, The Boulevard at Studio City is
Project Facility,” the report said. According to
under-utilized tables from City of Dreams and
a 350,000 sq. ft. immersive retail entertainment
some media reports, the debt covering Studio
Altira to Studio City.”
environment. The operator also recently
City has a covenant that states the casino needs
The analysts estimate it may cost the company
announced that it will offer over 30 food and
a minimum of 400 tables.
$1 billion to buy out the minority interest.
beverage venues located throughout Studio
Galaxy has solved the problem by moving
Apart from Studio City, the fifth hotel tower at
City, including Shanghai Magic, a Shanghainese
tables from other properties, however such an
City of Dreams designed by the award-winning,
restaurant with close up magic, and Cosmos Food
option is unlikely to be as palatable for Melco,
“Queen of the Curve” in architecture, Dame
Station, which will serve dishes amid holographic
which only owns 60 percent of the project and
Zaha Hadid, is under development, and a further
projections of deep space.
therefore would not get the full revenue stream
tourist attraction, says Ho.
“We have planned and developed our property
from the tables.
“Overall, we strive to offer thrilling experiences
to engage a much broader group of leisure
The dilemma has led to speculation that Melco
that our visitors cannot find anywhere else.
entertainment seekers, those who want emotionally
may seek to buy out its minority partner, New
No other operator can boast this type of true
engaging experiences that they can share with
Cotai, in Studio City. Adding to that speculation
commitment to the government’s long-term
friends and family,” Ho said.
was the decision this month by the company to
vision for Macau. And we are proud of this
Despite the clear focus on non-gaming, analysts
refinance $1.75 billion in credit facilities, giving
fact,” said Ho. l
Asia Gaming Briefings | August 2015
AUSTRALASIA 36
AUSTRALIA
Australia regulatory round up: Anti-money laundering body bares its fangs There have been several recent changes to its gambling legislation in Australia that may have wide implications in both the online and land-based sphere, including the first case brought under the anti-money laundering act by AUSTRAC.
Jamie Nettleton*
*Jamie Nettleton, an AGB Advisor, is a Partner at Addisons Lawyers, Sydney
Asia Gaming Briefings | August 2015
O
n 22 July 2015, AUSTRAC, the statutory
The High Court has granted leave recently
body that has oversight of the Anti-
to each of the State of Victoria and Tabcorp
Money Laundering and Counter-Terror
respectively for a hearing to take place in
Financing Act 2006 (Cth), which
respect of appeals against the decisions of the
contains Australia’s anti-money laundering
Supreme Court of Victoria (Court of Appeal)
laws, initiated court proceedings against three
relating to claims arising from the Victorian
subsidiaries of Tabcorp for “extensive, significant
Government’s decision to change the regulatory
and systemic non-compliance with Australia’s
structure relating to gaming machine licensing
anti-money laundering and counter-terrorism
in Victoria.
financing legislation.”
Among the changes effected was the replacement
This is the first time that AUSTRAC has initiated
of the duopoly held by Tatts Group and Tabcorp
Court proceedings under the AML/CTF Act,
relating to the supply and operation of gaming
alleging 100 separate breaches of the AML/
machines with arrangements under which
CTF Act by Tabcorp.
venues would hold operating licenses directly.
This case is expected to set an interesting
At the same time, it was announced that neither
precedent for the Australian gambling sector.
Tabcorp nor Tatts would be entitled to any
It will cause all gambling operators to ensure
compensation arising from the expiration of
compliance with Australia’s anti‑money
their licenses in 2012.
laundering regime and is likely to shake any
The State of Victoria has appealed the decision
belief that AUSTRAC is merely a “toothless tiger”.
of the Court of Appeal that Tatts should recover
Meanwhile, in the State of Victoria, Tabcorp
$500 million from the Victorian Government.
has also been embroiled in litigation, along
While Tabcorp has appealed the seemingly
with rival Tatts.
contradictory decision of the Court Appeal that
AUSTRALASIA 37 it is not entitled to recover $650 million from the Victorian Government.
CASINO GAMING REVENUE
In the interactive sphere, there has been considerable press recently about Australia’s
Y20E
A$6.2b ($4.87b)
leading bookmakers engaging in activity which allegedly contravenes the in‑play prohibitions contained in Australia’s Interactive Gambling Act. These articles have reported that complaints to Australia’s communications regulator have
(Source: IBIS)
Y14 Australia, NZ combined
resulted in the various services being referred to
$4.44b
Y15E
the Australian Federal Police for investigation.
$5.13b
These issues are an indication of the extent to Y16E
which the Australian regulatory regime relating
$5.72b
to interactive gambling is inconsistent with the regimes in other first world countries, such as
Australian regulators are cracking down on foreign bookmakers taking in-play bets by phone, prompting Ladbrokes to take down its Quickcall feature. The services were also being promoted by bet365 and William Hill. Free-to-air television in Australia has also said it won’t advertise the services until their legality can be established in court.
(Source: Morgan Stanley)
the United Kingdom. Indeed, recommendations have been made
Y16E
by various enquiries conducted by Australian authorities calling for reforms to be made to the
AS$4.6b
(Source: Citi Research)
Interactive Gambling Act but, to date, none of these reforms have resulted in any legislative proposals. In South Australia, the government has introduced new taxation that is being closely watched as
Market share as of Jan. (Source: Queensland Treasury)
it could set a precedent for the governments of other states, particularly at a time when these governments are looking for new ways to raise revenue. The South Australian government made public its proposal to introduce a state-based gambling tax that would require online gambling operators located outside of South Australia, including
total gaming $17.4b (including pokies and lottery)
Echo Entertainment Group has won the right to develop a gambling resort in the center of Brisbane, beating rival James Packer’s Crown Resorts and allowing the company to keep its twodecade casino monopoly in the city. Echo and its consortium, which includes Chow Tai Fook Enterprises and Far East Consortium, has been chosen to develop a resort on the river-front site which could could cost as much as $1.5 billion. Work is expected to begin in 2017.
casinos $4.11b racing $2.7b sports betting Y12/13 $484.78m
those located overseas, to pay a state tax if they
In May 2015, the Federal Government passed
offer gambling services to South Australian
legislation that would cause Norfolk Island to
customers.
become a municipality of New South Wales.
In other words, tax would be paid to the South
The Federal Government has since abolished
Australian government by these operators on a
the Norfolk Island Legislative Assembly.
point of consumption basis in a manner similar
As a result of these changes, which were
to the taxes imposed currently on traditional
foreshadowed by the Federal Government last
land-based gambling operators. (This seeks to
year, Norfolk Island is no longer able to self-
follow the UK approach.)
govern. It is unclear whether the legislation
And finally, Norfolk Island can no longer self-
under which Norfolk Island gambling licenses
govern. What does this mean for its wagering
have been granted will remain in effect from 1
operator licensees?
July 2016 onwards (which is the date that these
Most Australian corporate bookmakers are
changes will come into effect in full). This calls
licensed by either the Northern Territory (for
into question whether licenses granted under
example, bet365, William Hill and Sportsbet)
this legislation will remain in effect after 1 July
or Norfolk Island (for example, Ladbrokes).
2016. l
Asia Gaming Briefings | August 2015
AUSTRALASIA 38
NEW ZEALAND
VISITATION
SkyCity convention centre project inches ahead after cost overruns
Y14 TAB racing and sports betting $311m
+5.6%
Lottery $463
+7.2%
Casinos $509m
-2.1%
Pokies $808m
-2.2%
International business is helping fuel revenue growth at SkyCity Entertainment, with turnover in the 2015 year to date up 83 percent to $8.62 billion during the period. The win rate improved to 1.37 percent compared to 1.12 percent in the previous corresponding period.
SkyCity Entertainment, New Zealand’s only listed casino operator, is moving closer to breaking ground on its new convention centre complex in Auckland after being forced to scale down its original design due to cost overruns.
T
New Zealand is conducting a review of its legal approach towards online sports betting amidst concern the country’s horse racing industry may be losing out, with locals gambling as much as $300 million a year through offshore online sites.
he company passed another hurdle in
in funding and it was seeking government help
July, when the city council decided that
to finance the overrun.
the resource consent application for the
Instead, the company and the government
more likely to end up being $450-470 million
New Zealand International Convention
reached an accord on a scaled back plan in
(including land).
Centre can proceed without public input.
May, that will be financed by SkyCity.
“Taking in to account the associated construction
CEO Nigel Morrison says the decision is good
While the revised design is for a slightly
of additional car parks, the laneway development
news for the project and allows SkyCity to move
smaller centre, its design ensures it will be
as well as the planned new 300 room 5-star
ahead with selecting a construction partner
a landmark building for Auckland and New
Hobson Street hotel, this represents a
and finalizing a date for turning the first
Zealand,” said Morrison.
$650m-plus investment in much-needed
sod on the building. “We now await the final
The new design envisages 32,000 sqm gross
public and tourism infrastructure in downtown
resource consent decision, to be finalised by
floor area and a plenary with 2,850 seats -
Auckland,” Morrison said.
the independent commissioners over the next
just 150 fewer seats than originally planned.
The current SKYCITY Auckland, is the group’s
few months,’’ he said. “We are continuing to
The building will also feature an exhibition hall
flagship property and was the best performer
work towards signing a binding building works
able to host banquets of up to 3000 people,
in the first half of its 2015 financial year,
contract for the NZICC by October and then
and a laneway offering cafes, restaurants,
with normalized revenue up 17.2 percent to
commencing construction by the end of 2015.”
bars and retail.
$302.5 million and normalized EBITDA up 15.0
Under a 2013 deal, SkyCity agreed to build a
SkyCity said the key amendments to the
percent to $124.3 million. This strong growth
$402 million convention centre in return for
building’s development included an increase
continues the positive momentum exhibited
concessions on its gambling licenses, including
in the company’s minimum capital investment
during 2H14, with growth across all business
more “pokies”. But late last year it said there
from $402 million to at least $430 million,
segments, delivering four consecutive quarters
was now a $70 million to $130 million shortfall
though the company says the eventual cost is
of EBITDA growth, it said. l
Asia Gaming Briefings | August 2015
AUSTRALASIA 39
PACIFIC ISLES
For Saipan business leaders size does matter When Hong Kong-listed Imperial Pacific announced it was doubling the size of its planned casino development on the South Pacific island of Saipan to $7 billion some analysts began scratching their heads.
I
VISITATION May tourism arrivals 39,955
+22%
China visitors 15,198
+14%
Korean arrivals 16,237
+79%
The owners of Mariana Resort & Spa in Marpi, Kan Pacific Saipan, received a letter from the Department of Public Lands saying the government will be announcing a request for proposals for the lease on their property, which expires in 2018. The DPL indicated the lease will not automatically be renewed.
mperial Pacific envisages a new resort
out of this development,” said Sablan.
co mplex , w hi c h wo uld have ab o ut
He said there is an opportunity for Saipan to
4,000 hotel rooms, 1,600 gaming tables
develop a resort that will meet the need of
and 3,500 slot machines. The resort is
various tourism markets, including the MICE
scheduled to be built over five years with
sector, but at present the island is not capable
the final phase opening in 2020. The first
of handling such large groups.
part involves a town hotel with 254 rooms
“The government has to work with the developer
and gaming facilities, which is scheduled for
to try to expand this opportunity,” he said,
completion late next year.
noting that the local preference is likely to be
But doubts have been raised as to whether
for a lower-scale resort that integrates with
the tiny island, with a population of about
the local landscape than large skyscrapers.
54,000, and tourism arrivals of 459,681 last
There are “a lot of qualms with respect to
year, could support such a mammoth project.
large, tall buildings that block views of the
“I seriously doubt that I will see a $7 billion
landscape and the ocean,” he said.
integrated casino in my lifetime. It will take
Marianas Business Plaza owner Erick Van Der
more than 10 years, or even 15 years, or even
Maas agrees that Saipan needs an integrated
longer, before we see a $1 billion casino on
resort, offering a wide variety of attractions,
Saipan,” said former lawmaker and president
but also agrees on a smaller scale.
of Juan T. Guerrero & Associates, Juan Pan
“I think Saipan needs an integrated resort. We
Guerrero. “Note that I said $1 billion. I do
are a resort island,” he told AGB. “This will
not believe that Macau or Australia or even
not only attract gamblers but also families.
the US have a single integrated casino worth
We need family tourism,” he said.
$7 billion.”
In terms of size, Van Der Maas said he believes
“Considering our CNMI infrastructure and
four 500-room or two 1000-room hotels
manpower, it will be something to see
would be feasible on Saipan instead of a single
accomplished. Call it a miracle or something,
2000-room facility.
if it happens,” added Guerrero, whose Strategic
There has been much debate in Saipan about
Gaming Solutions Inc. introduced the first
the scarcity of available land for large-scale
competitive Asian casino market, they said.
e-gaming facility into the Commonwealth
developments. However, local business leaders
“Together with the casino and all the hotels
of Northern Mariana Islands.
said there is private land that is still available
we need to make a plan for a national airline
Amid the concern, local business has asked
for development.
flying to Guam, Taiwan, Hong Kong, and three
the government to become more involved in
“Why is the government only pushing for
or four destinations in Japan. China and Korea
the development process. Saipan Chamber
public land? The CNMI needs to push the
is already taken care off by Asiana, Jeju Air,
of Commerce president Alex Sablan recently
issues and require the investor to acquire
Century and STI and are growing,” he said.
told a business meeting in Guam that his
more private land. There are plenty of private
Guerrero adds: “A casino needs regular flight
organization has asked the administration
lands so that should not be an excuse. It is
services in place and supported by charter
to take a look at “right sizing” so that any
more on the CNMI government not doing
flights.
project is successful.
much to push the issue,” Guerrero told AGB.
mentioned by our casino developer. Our CNMI
On a recent visit to Singapore, Sablan
However, for both Van Der Maas and Guerrero
lacks sufficient airport and port facilities
noted how closely involved the Singapore
one of the major challenges in introducing
for more carriers. CNMI lacks essential
administration had been in developing the
such a large-scale resort is that the island
infrastructure that includes roads, public
island’s integrated resorts.
lacks sufficient flights to bring in tourists, as
transportation, hotels, water, power, sewer,
“They [Singaporean government] were very
well as other basic infrastructure. That will
hospital and most essential is the necessary
hands on with respect to what they wanted
put it at a disadvantage in an increasingly
manpower to support it.” l
The U.S. Department of the Treasury has the right to regulate casinos in the Commonwealth of Northern Mariana Islands under authority granted by the U.S. Congress, a local judge ruled. U.S. District Court of the NMI Chief Judge Ramon Manglona said the U.S. Treasury has the authority to enact regulations to prevent money laundering by casinos licensed on the islands.
No such infrastructure has been
Asia Gaming Briefings | August 2015
AADC 40
Marina Bay Sands wins inaugural All Asia Dealers Championship Singapore’s Marina Bay Sands took the top prize in the first All Asia Dealers Championship held at G2E Asia in Macau, beating 15 teams to win the All-Asia team award after 3 days of stiff competition.
J
Asia Gaming Briefings | August 2015
udged in baccarat, blackjack and roulette,
NagaWorld, from the Philippines: City of
the team scored high marks in all areas
Dreams Manila, Solaire and RWManila; from
which included technical skills, guest
Singapore: Marina Bay Sands and RWSentosa.
interaction and personal presentation.
The competition, which drew a crowd of spectators
The team’s prize is a trip to Australia.
and raucous applause over three days, was a
The MBS team also scooped best blackjack
chance for the frontline staff of Asia’s major
dealer and best roulette dealer awards, while
casinos to meet and learn from each other while
Resorts World Manila won the award for best
doing their best under pressure.
baccarat dealer.
“The competition was important to boost the
The best dealer team in Macau went to Sands
morale of perhaps the most important people in
China, which won four awards overall. With
the industry who interact with customers every
the exception of Galaxy Entertainment Group
day,” said Rosalind Wade, managing director of
all other local concessionaries supported the
Asia Gaming Brief, which co-hosted the event.
championship: SJM, MGM China, SCL, and
“It was an opportunity to showcase their skills,
Wynn Macau. Regional teams that took part
meet their counterparts from around Asia and
in the competition included Phnom Penh’s
get the appreciation they deserve.”
AADC 41
Team
Wynn A
Wynn B
Best Macau Baccarat Dealer
Runner up Macau Blackjack Dealer
Name: Lei Weng Kuen (Vicky Lei) Age: 32 Nationality: Chinese Property: Wynn Macau Position: Dealer Length of time in job: 7 years Career history so far: Sales, Waitress
Name: May Chan Age: 32 Nationality: Chinese Property: Wynn Macau Position: Dealer Length of time in job: 4 years Career history so far: Dealer in Altira for around 1 year
Why did you decide to become a dealer?
Why did you decide to become a dealer?
I would like to change my working environment.
Being the leading industry in Macau, the future
What do you think is the role of a dealer?
prospects are great. We have a stable salary and
I want to gain more knowledge through my job and have better development in my career path.
What makes you good at the job? I provide good customer service and brisk dealing skills.
What’s your personal style? I always wear a warm smile and have appropriate interaction with players.
What do you like best about where you work? Wynn Macau provides a working environment with lots of learning opportunities.
What was the best part about participating in the AADC?
a better career path.
What do you think is the role of a dealer?
Wynn
Name
Role
Vicky Lei
Dealer Blackjack
Jimmy Lam
Dealer Roulette
May Chan
Dealer Baccarat
Jimmy Leong
Dealer Blackjack
Chi Fai Tai
Dealer Roulette
Sam Chio
Dealer Baccarat
Xenia Lam
Judge
Wilson Wong
Judge
Macky Cheang
Judge
Baby Ieong
Judge
Jonathan Louie
VIP Guest Judge
Morgan Ho
VIP Guest Judge
Stanley Loi
VIP Guest Judge
Elizabeth Doherty
VIP Guest Judge
Dennis Hudson
VIP Guest Judge
Hoi Kou
VIP Guest Judge
The dealer is the frontline staff in the gaming industry. Our professional customer service and skills could make an impression on our guest.
What makes you good at the job? I always have interaction with the players and keep friendly eye contact with them.
What’s your personal style? I’m a straightforward and careful person. I always provide a harmonious and relaxed atmosphere to our guest.
Vicky Lei
What do you like best about where you work? We have a comfortable, tidy and cooperative
The most fun part was to learn different
working environment. Our company often
competitors’ skills from other countries.
offers different training opportunities, which is the thing I like the most.
What was the best part about participating in the AADC? AADC is a relaxed style of competition. Dealers
May Chan
were able to show their personal style and outstanding performance.
Asia Gaming Briefings | August 2015
AADC 42
Runner up Macau Baccarat Dealer
Runner up Macau Roulette Dealer
Name: Man Weng Ip Age: 24 Nationality: Chinese Property: Sands China Limited Venetian Position: Dealer Length of time in job: 2 years Career history so far: I have 2 years Dealer’s experience in the gaming industry.
Name: Un Wai Kin Age: 26 Nationality: Chinese Property: Sands China Limited – Sands Cotai Central Position: Dealer Length of time in job: 7 ½ years Career history so far: Working as a Dealer in Venetian Macau Limited is my first job.
Why did you decide to become a dealer?
Why did you decide to become a dealer?
I was a waiter in a restaurant inside a Casino; I
At the time that I graduated from high school, I
observed the Dealers and was impressed how they
knew that Venetian Macau was hiring Dealers,
conducted the payments so quickly on the tables.
I realised that this was a great opportunity, so
I thought it was very exciting, and I wanted to
I applied to be a Dealer.
be one of them so I applied to become a Dealer.
What do you think is the role of a dealer?
What do you think is the role of a dealer? Communicate with the guests and ensure they
Man Weng Ip
have a great time.
What makes you good at the job? Delivering service to different people every day, it increases my confidence to continually improve.
SCL A
SCL B
SCL
Role
Man Weng Ip
Dealer Baccarat
Wang Zhen Han
Dealer Blackjack
Ng Chi Kin
Dealer Roulette
Lo Man U
Spare Dealer
Hoi Choi Fong
Dealer Baccarat
Zhong Xiao Huan
Dealer Blackjack
Un Wai Kin
Dealer Roulette
Mak Wai Hang
Spare Dealer
Martin Ieong Lap Kun
Judge
Sarah Lei Sek Ha
Judge
Thomas Ieong Weng Hei
Judge
Anca Slavila
Judge
Christine MacDonald
VIP Guest Judge
Miki Lois
Team Leader
Asia Gaming Briefings | August 2015
The support I receive from Management and great working relationships with colleagues motivates me to do my best.
What’s your personal style?
Active and funny.
What do you like best about where you work?
I like to improve my hands’ skills and payment
Name
What makes you good at the job?
Positive attitude, welcoming feedback, both
calculation, SCL gives us many opportunities
Team
enjoy their time at the casino.
What’s your personal style? What do you like best about where you work? Un Wai Kin
Communicate with guests and ensuring they
for training and skill refreshment.
What was the best part about participating in the AADC? Gained more experience from other casinos’ Dealers.
positive and for improvement. SCL gives me the opportunity to widen my experience and have new opportunities in the future.
What was the best part about participating in the AADC? Meeting and learning from people from all over Asia
Best Team Macau
AADC 43
Runner up All Asia Blackjack Dealer & Best Macau Blackjack Dealer Name: Wang Zhen Han Age: 27 Nationality: Chinese Property: Sands China Limited – Sands Cotai Central Position: Pit Supervisor 2 Length of time in job: 8 Years Career history so far: My first job was to be a Dealer in Venetian Macau starting from 16th July 2007 and progressing to Pit Supervisor 2.
Why did you decide to become a dealer? Since Macau Government increased the Gaming licenses from one to six in 2003, and there was a period of gaming prosperity in 2007, I thought it would be a great opportunity to become a Dealer.
What do you think is the role of a dealer? Meet the company requirements, follow procedures and most of all, provide good customer service.
What makes you good at the job? Praise from Managers and Players encourages me to do a great job.
What’s your personal style? It is my style to provide good service and
Team
interaction with guests, try to make everyone happy and have fun while they are playing on my table.
What do you like best about where you work? There are various opportunities to represent
MCE A
the company to participate different type of competition and also great opportunity to have Cross Department Training.
What was the best part about participating in the AADC? I enjoyed competing against my fellow colleagues to qualify for the competition, and then competing
MCE B
against all of the Dealers from around Asia.
MCE Wang Zhen Han
Name
Role
Kin Lam Fong
Dealer Baccarat
Salina Rafaela de Assis
Dealer Blackjack
Ka Hou Kuok
Dealer Roulette
Pyi Sone Hnin Win
Spare Dealer
Kenneth Chung Yeung
Coach
Wai Pun
Dealer Baccarat
Min Ko Ko Zin
Dealer Blackjack
Sio Lam Pang
Dealer Roulette
Sunny Lam
Coach
Romulous Pereras De Leon
Team Manager
Lee Wee Lin
Team Manager
Sio Vai Pat
Judge
Iut Peng Chio
Judge
Heong Im Hoi
Judge
Mei Fong Chao
Judge
Mark Preece
VIP Guest Judge
Asia Gaming Briefings | August 2015
AADC 44
Team
Name
Role
Chan Chan U
Dealer Roulette
Leong Pak Chon
Dealer Baccarat
Tong Pui Ha
Dealer Blackjack
Fong Mei Wa
Spare Dealer
Kuok Ka Hou
Dealer Roulette
Wan Kin Long
Dealer Baccarat
Lou Man Wai
Dealer Blackjack
Wu Leong Richardo Arturo
Spare Dealer
Jacky Cruz Y Lin
Team Manager
Eva Chan
Team Manager
SJM A
SJM B
SJM
Asia Gaming Briefings | August 2015
45
Runner up All Asia Roulette Dealer & Best Macau Roulette Dealer
Team
Name
Role
Ivan Cheong
Dealer Baccarat
Name: Lim Hong Chai (Jimmy Lim) Age: 30 Nationality: Malaysian Property: MGM Macau Position: Supervisor Length of time in job: 12 years Career history so far: Dealer and Dealer Inspector, Pit Manager.
What makes you good at the job?
Why did you decide to become a dealer?
won’t be easily affected by difficult players.
Because everyday I can meet different customers and may face different challenges from which I can improve my personal skills. I believe the
MGM A
MGM B
MGM
Samuel Lei
Dealer Blackjack
I love to smile and make friends with different people and I enjoy my work. I can work well with my colleagues and will give them a helping hand whenever they need.
What’s your personal style? I am a bit shy, but like to work in groups and enjoy team work spirit. I have good temper and
What do you like best about where you work? I love MGM because it provides lots of opportunities for me to learn and grow. Most of the colleagues
gaming industry will provide lots of opportunities
here are friendly and nice.
for me in my career. Jimmy Lim
Dealer Roulette
What do you think is the role of a dealer?
What was the best part about participating in the AADC?
Ivy Cheang
Dealer Baccarat
To serve customers and create a happy and
I have known people in the gaming industry
pleasant experience for them.
from other countries and in the competition
Gary Lam
Dealer Blackjack
Tata Chan
Dealer Roulette
Celia Lio
Judge
Alan Ao
Judge
Gini I
Judge
Debbie Lam
Judge
David Ip
Judge
I have known more how customer service is delivered by other contestants.
Jimmy Lim
Asia Gaming Briefings | August 2015
AADC 46
Best Team All Asia
Asia Gaming Briefings | August 2015
AADC 47
Best All Asia Roulette Dealer Name: Ria Krisiska Binte Herman Age: 26 Nationality: Singaporean Property: Marina Bay Sands Position: Dealer Inspector Length of time in job: 5 years 4 months Career history so far: First full-time job
Why did you decide to become a dealer? I was previously working part-time, teaching ethnic music to students. My mum told me to get a real job and suggested that I look for opportunities at Marina Bay Sands. Not knowing which job to apply for, I picked the one that was new and different for most Singaporeans.
What do you think is the role of a dealer?
Best All Asia Blackjack Dealer & Miss Congeniality Name: Chow Yoke Hui Age: 28 Nationality: Malaysian Property: Marina Bay Sands Position: Dealer Length of time in job: 8 years Career history I started working in the casino industry in 2005, when I was 18 years old and have since worked in three casinos. The first is Genting Highland Resort, followed by Resorts World Sentosa. I am currently with Marina Bay Sands.
Why did you decide to become a dealer? portrayed in movies and TV dramas, and thought it was a cool job, so I applied to be a
a-lifetime experience for them is important
dealer for fun. After being a dealer, I began
by executing each game with style, accuracy
to recognize the long-term career path of
and confidence. Most importantly, we need to
being a professional dealer. I grew to love chip
ensure that everyone has fun, including yourself.
handling and I continue to hone my skills day
What makes you good at the job?
by day. Since I started working in the casino
at work and simply having fun.
What’s your personal style? My personal style is to deal each game as fast as possible and make sure my players have ample time to place their bets. So I always think of the fastest way to take in the losing bets and pay the winnings in accordance with the company’s procedures. I will also ask my players if they are ready for every game.
What do you like best about where you work? Besides the work itself, I enjoy the staff privileges that I get within the property, such as dining discounts.
What was the best part about participating in the AADC? Meeting new people from this industry.
What do you like best about where you work? I have no regrets in choosing Marina Bay Sands. I have really gained a lot and appreciate what I have now. Being recognized as a best Dealer in Marina Bay Sands and also being recognized as a Champion in Asia too.
What was the best part about participating in the AADC? The best part about participating in AADC is that I got to know a lot of different dealers, and to know a lot of friends. I also got to learn other casino skills and about gaming equipment. appreciate the chances I was given.
I was influenced partly by how dealers are
greeting guests. Hence providing a once-in-
holding grudges about any unpleasant situation
my patrons about.
I don’t regret joining this competition and
We are in the service industry, meeting and
Treating each day as a brand new day, never
I find different topics to engage and talk to
Chow Yoke Hui
line in 2005, I have never stopped training to improve myself. I hope that I’ll be able to impart what I’ve learnt to future dealers.
What do you think is the role of a dealer? For me, the role of a dealer is similar to that
Team
of a singer, dancer or even a magician, as they need to showcase their skills to keep their
Name
Role
Chow Yoke Hui
Dealer Blackjack
Khor Boon Ang
Dealer Baccarat
Ria Krisiska Binte Herman
Dealer Roulette
Long Jiawei
Judge/Team Manager
audiences entertained. The gaming tables are our stage. A dealer requires hand skills, good chip work and must offer good customer service to continuously engage and entertain our patrons when they play.
What makes you good at the job? I continue to improve myself, my skills, my calculation, and my communication every day.
MBS
I observe and learn from the other dealers who are good in hand skills. To help me calculate faster and more accurately, I will count the chips on my table during lull periods. As a dealer, I meet different players every day and the need of each player differs. I always try my best to communicate with the patrons in my own way and provide excellent customer service at all times.
What’s your personal style? I have a sporty and outgoing personality and this is reflected in the way I prefer to deal Ria K. B. Herman
– fast and smooth to keep the momentum going. To keep things more lively at my tables,
Asia Gaming Briefings | August 2015
AADC 48
Team
COD
Name
Role
Era Mia Santos
Dealer Baccarat
Kerwin Chua Reaport
Dealer Blackjack
Juan Rufino Bernado Cequena
Dealer Roulette
Romulous Pereras De Leon
Team Manager
Mary Huon De Navrancourt
Judge
Mr. Congeniality
Kerwin C. Reaport
Name: Kerwin Chua Reaport Age: 26 Nationality: Filipino Property: City of Dreams-Manila Position: Table Games-Dealer Length of time in job: 1 year and 2 months Career history so far: Sales Finance Officer
Why did you decide to become a dealer? Becoming a casino dealer has always been my dream job. I have always been fascinated by the glamorous lifestyle of casino dealers and how they interact with various guests from different cultures as depicted in movies, books and in real life.
What do you think is the role of a dealer? The role of the dealer primarily is to offer an exciting gaming experience to guests as they spend their money during holidays, vacation, or just by simply having a great time while generating
cut above the rest.
What’s your personal style? My own style of dealing is rooted from my personal commitment to deliver what the company expects from me and even more. This is translated by giving my guests on the table a remarkable gaming experience that is truly Filipino – sincere and hospitable.
What do you like best about where you work? City of Dreams-Manila has provided me all the knowledge that I need to be able to compete with dealers internationally. The company has given me all kinds of support that makes me truly competitive, reliable, and noticeable.
What was the best part about participating in the AADC? The best part about participating in the AADC is the fact that I was given the chance to compete with some of the best Black Jack Dealers in the gaming industry and honed my skills as a dealer
revenue for the casino at the same time.
even more. Also, meeting a lot of renowned people
What makes you good at the job?
Overall, AADC reinforced my firm belief that
in the industry has expanded my references.
The skills that I have learned throughout my
it is in the gaming industry where I truly and
stint as a casino dealer in City of Dreams-
rightfully belong.
Manila coupled with my excellent style of
Asia Gaming Briefings | August 2015
providing great customer service make me a
AADC 49
Best All Asia Baccarat Dealer Name: Louie Albert Ramirez Age: 29 Nationality: Filipino Property: Resorts World Manila Position: Inspector Length of time in job: 6 years Career history so far: None
Louie Albert Ramirez
Why did you decide to become a dealer? Actually it was my Girlfriend who applied for dealer and I was encouraged by her because I
Team
RWM
Name
Role
John Eldrick Sunga
Dealer Roulette
Louie Albert Ramirez
Dealer Baccarat
Table awareness and good customer service.
Vincent Raposas
Dealer Blackjack
Work with no pressure.
DJ Aldrin Sosa Ruiz
Spare Dealer
Marietta Rivera
Judge/Team Manager
Elina Bondoc David
VIP Guest Judge
Hakan Dagtas
VIP
Ethel Asido Bernade
VIP
don’t have a job during that time. With God’s grace I was hired and now I’m a supervisor.
What do you think is the role of a dealer? What makes you good at the job? What’s your personal style? Relax, have fun and enjoy.
What do you like best about where you work? The Management and the Company because they know how to take care of their people.
What was the best part about participating in the AADC? The best part is that we went to Macau and the experienced that we gained during the competition.
Asia Gaming Briefings | August 2015
AADC 50
Runner up All Asia Baccarat Dealer Name: Pamela Jules Lai Age: 26 Nationality: Filipino Property: Solaire Resort and Casino Position: Supervisor Length of time in job: 2 years and 7 months Career history so far: Croupier in Resorts World, Manila Team
SOL
Name
Role
Pamela Jules Katigbak Arias
Dealer Baccarat
Anna Margarita Santos Sioson
Dealer Blackjack
Kathryn Cunanan Lagrata
Dealer Roulette
Wallace Canlas
Judge/Team Manager
Rosario C. Chavez
VIP Guest
Why did you decide to become a dealer?
I march to my own drumbeat - my style is untiring, challenging myself and out bettering my performance. I think that’s what sets me apart from everyone.
What do you like best about where you work? The vision it gives me. Solaire saw my potential, it gave me a strong motivation and foundation to start with. My superiors, such a good support group.
unintentional. I landed a job in the entertainment
What was the best part about participating in the AADC?
industry but it reached to a point wherein I had
Meeting individuals who are as driven, competitive
to decide if I should embrace what I have and
and seeing what they’re capable of is just so
where I was. I am happy.
rewarding. Experiencing Macao itself is a win!
Everything was given in a form of a ‘gift,’
What do you think is the role of a dealer? A facilitator and an entertainer. I have to make sure I do everything accurately while maintaining a fun atmosphere.
What makes you good at the job? Consistency. I like to think I’m a project that’s improving every single day, learning nonstop.
Asia Gaming Briefings | August 2015
What’s your personal style?
Pamela Jules Lai
AADC 51
Team
RWS
Team
NAGA
Name
Role
Seang Thona
Dealer Baccarat
Ket Sopronita
Dealer Roulette
Seng Sineht
Dealer Blackjack
Chang Chai Khoon
Judge/Team Manager
Chris Tessitore
VIP Guest
Name
Role
Ong Kian Meng, Marvin
Dealer Baccarat
Mak Suet Si
Dealer Blackjack
Chua Kok Boon
Dealer Roulette
Than Khong Lim
Team Manager
Godfrey Chong Tze Vui
Judge
Asia Gaming Briefings | August 2015
SUPPLIER SPECIAL REPORT 52
Australasian Gaming Expo
Amazing Australia The Australasian Gaming Expo taking place from 11 to 13 August at Sydney Exhibition Centre @ Glebe Island is one of the four major global gaming industry trade shows annually. At 15,600 square metres it’s also one of the largest trade events in Australia and easily the largest gaming event. A finalist in last year’s EEAA Awards for Excellence, the event attracts exhibitors and visitors from around Australia and internationally. from around the region to experience the latest,
will be transported from Darling Harbour to the
cutting-edge gaming design and technologies.
event on a complimentary Sydney Harbour ferry
And with 17 new casinos scheduled to open in
cruise, or they can ride on shuttle buses from
the Asia-Pacific region by 2020 – including two
Central Station, Pyrmont or Sydney airport, all
in Australia – now is the time for suppliers to
free of charge. Limited car parking is available
engage their customers.
at the venue and taxi services are available to
New gaming technologies are not the only attraction,
and from the event.
wned and operated by the Gaming
with more than 165 exhibitors (including 31 for
There they’ll see over 750 poker machines and
Technologies Association, the Gaming
the first time) proudly showcasing Audio Visual
hundreds of truckloads of signage and equipment
Expo is the ultimate showplace for
equipment, ATM Equipment, Building Services,
which is moved in to Glebe Island, installed,
new gaming technologies for casinos,
Cash Handling & Equipment, Consultancy Services,
connected, tested, used and compared by the
clubs and hotels. The biggest attraction is the
Entertainment, Financial Services, Food and
most demanding critics and then moved out
new machines and games from poker machine
Beverage, Furniture, I.T., Interior Design & Fitout,
again – all in only a few days.
suppliers, who look forward to August each year
Marketing Services, Membership Management,
Last year well over 2,300 visitors attended the first
to unveil their best products.
Paging & Communication, Point of Sale Systems,
day, with 2,500 on the second day and 1,000 on
The Association’s primary members Ainsworth,
Retail, Security, Signage & Displays and Staff
the third day. They came from every Australian
Aristocrat, Aruze, Bally, Ebet, IGT, Konami are
Uniforms. So there’s definitely something for
State and Territory, along with a big contingent
world-best at their trade and the Gaming Expo
everyone in the hospitality world.
from New Zealand and international guests
presents a great opportunity for their customers
Visitors to this year’s Australasian Gaming Expo
from America, Europe and around the Asia-
O
Pacific region. 97 percent of visitors surveyed last year saw the Expo as an opportunity to see new products and technology, while 99 percent said the exhibition stand quality was good or excellent and the event itself was satisfactory or excellent. One quote was “the best trade show I have been to!”. The event website includes the interactive floor plan which is updated in real time, along with a list of exhibitors which can be sorted by company name, stand number or category – and provides contact details for each exhibitor and their website address for further information. Exhibition entry is complimentary to gaming industry executives, courtesy of the Gaming Technologies Association. The exhibition is open from 10am on Tuesday 11, Wednesday 12 and Thursday 13 August and closes at 5pm on the Tuesday and Wednesday (closes at 3pm on the Thursday). Trade suppliers are not eligible to attend the event unless exhibiting and nobody under 18 years of age (including infants) may enter the Exhibition. l
Asia Gaming Briefings | August 2015
“Gaming is our business. But we leave nothing to chance with our currency handling needs.”
Creating Confidence. In people focused operations, you need the time and flexibility to provide those people – your customers – with the services they want. Our compact, efficient and highly secure solutions for your count room offer a range of advanced processing features, including banknote authentication, denomination sorting, and ticket processing, plus a portfolio of service packages tailored to your needs. Saving you time to concentrate on your customers. www.gi-de.com
SUPPLIER SPECIAL REPORT 54 BMM TESTLABS
Celebrating a successful year
CRANE PAYMENT INNOVATIONS
Automated payment systems
IGT
New systems innovations in the spotlight
B
A
another successful year in Australia, in the
global strength and customer-first focus
run up to AGE.
of the newly formed company. IGT will
With unprecedented technology innovation
present cabinets, content and systems
in 2015, along with regulatory changes in
innovations developed specifically for the
various gaming markets, BMM continues
casino, club and hotel markets in Australia
to play a significant role in the Australian
and New Zealand.
gaming industry, providing independent
The marquee product on IGT’s stand -
MM Testlabs, the world’s leading gaming testing laboratory and technical
consultancy is pleased to be celebrating
product testing services to all the major gaming manufacturers; state and venue monitoring and system operators; wagering operators
t the 2015 Australasian Gaming Expo, gaming leader IGT will showcase a
suite of innovations that speaks to the
C
number 130 - will be the CrystalDual-i
rane Payment Innovations (CPI), a
cabinet. Making its global debut at AGE,
Crane Co. company, will be exhibiting
the CrystalDual-i is a sister product to the
on booth #522 at AGE 2015 with the most
widely praised CrystalDual cabinet. Sharing
Kirk White, executive vice president and
comprehensive portfolio of automated
many of the CrystalDual cabinet’s dynamic
general manager of BMM International, said:
payment systems in the Gaming industry.
design elements, including a mobile device
“The Australian gaming market is growing
Among the products on display will be
charging port, sleek black chrome paneling,
more sophisticated every year as it delivers
the combination of the SC Advance note
advanced ergonomics and state-of-the-art
greater innovation in gaming product design
acceptor and EASITRAX Web, as well as the
light and sound capabilities, the CrystalDual-i
and changes to address social and community
Cyclone Hopper and the Condor Premier
offers players an exciting new interface
commitments. With the increasing complexity
coin acceptor.
designed with multi-game functionality.
of products being released into the market,
SC Advance is part of the reliable SC product
The CrystalDual-i will launch with nine titles
BMM’s customers are seeing increased value,
line that has achieved a global installed base
including one link and four player-selectable
as the quality of our testing lowers their
of more than 1.5 million units. Its value
multi-denomination games.
overall product revocation risk.”
proposition revolves around the key performance
IGT will also present new games for the
“BMM is providing an additional quality
attributes responsible for operator profitability
existing bluechip Neo-N+ cabinet by
level across our offices globally by ensuring
and customer satisfaction – acceptance, jam
releasing new multi-game packages that
our highly skilled and experienced testing
rate, security and cost of ownership. Even
maximize gaming investment and floor
engineers qualify to ISTQB standards. This
as currencies evolve, operators can remain
space. Show attendees can see the new
falls in line with BMM Australia’s ISTQB
confident in SC Advance for reliable note
Multistar Champion
Gold Level partnership,” he added. l
acceptance. It has the expansive memory to
Series - Gold game,
accommodate new banknote introductions,
in addition to the new
including those that will soon be released
10-game package,
and online platform and game developers.
Asia Gaming Briefings | August 2015
in Australia and New Zealand. CPI plans to
Mightystar 2
provide updated software well before the new
featuring IGT legends
notes actually enter circulation.
Siberian Storm and
When used together, SC Advance and
Cooee Country. IGT
EASITRAX Web represent one of CPI’s most
will also spotlight
comprehensive cash management solutions.
Eastern Treasures 2
EASITRAX Web is a recent software extension
and Mighty Dragon
of the EASITRAX Soft Count system, which has
2, each including the
now been installed in more than 150,000 games
new “Firecracker
worldwide. It links the slot floor to the back
Bonus” feature that
room, collecting performance data from SC
can trigger jackpots
acceptor heads that can be used to streamline
and free games.
the drop process, facilitate asset evaluations and
In total, IGT will
conduct preventative maintenance programs.
highlight more than
The Cyclone Hopper and Condor Premier
40 games across the
coin acceptor will be among the coin
new and existing
products shown on the CPI booth this year. l
platforms. l
SUPPLIER SPECIAL REPORT 55 INTERBLOCK
Luxury arrives in Australasia on Interblock’s Stand at AGE 2015
JCM
JCM Global products make Australian premiere at AGE 2015
A
ll over the world, JCM Global’s award-winning and industry leading products help gaming operators make better
connections with their customers. Now JCM, which is celebrating 60 years in business, is deepening those connections when the company’s GEN2 Universal thermal printer, Ticket2Go system and PromoNet system make their Australian premiere at AGE 2015. JCM will be on stand 722 at the Sydney Exhibition Centre, where the company will show these products, along with its industry-leading portfolio of award-winning peripheral products. JCM Australasian sales and business manager Matt Collaros said, “This is an exciting time at JCM. For 60 years, we have created innovative solutions that have changed the way entire industries do business. Now at AGE 2015, we are thrilled to introduce the latest in our history of innovations that will help gaming operators across Australasia make even better customer connections.” The GEN2 Universal printer is equipped with ITH (Intelligent Ticket Handling) technology that makes the cashout ticket available only after the ticket is fully printed internally and automatically burst. Ticket2Go is a retrofit ticketing solution designed specifically for gaming and AWP devices that do not support standard ticketing protocols. Multi-lingual and multi-currency, Ticket2Go can be installed across multiple sites, enabling operators to replace coin payout technology with a simple ticket-based solution. PromoNet is an intelligent couponing solution that identifies valuable carded and non-carded players, links promotions to game-play, and
L
uxury arrives in Australasia in grand style when Interblock brings its line of electronic table games to AGE 2015. Interblock
is celebrating 25 years of market leading innovations and will be on stand #506 at the trade show, displaying the newest in its Diamond Line of products, including the MiniStar. Interblock senior vice president of Asia Pacific Cameron Louis said, “We are excited for AGE 2015, where we will be showing independently
delivers promotions exactly where and when they are needed. JCM Global, stand 722 Three JCM products will make their Australian premiere at AGE: the GEN2 Universal thermal printer, the Ticket2Go TITO system and PromoNet promotional couponing system. JCM will also discuss its successes in and plans for the Australasian market. Interview is with Australasian sales and business manager, Matt Collaros. l
on our own stand. We have been carefully building an Asia Pacific team, and we are in an excellent position to provide direct sales and service with a passion that equals our products’ luxury.” Interblock will exhibit its latest luxury gaming innovations including MiniStar Roulette with 5 play stations, Diamond Roulette Generator with 5 play stations, 4 Diamond play stations with Multigame connection to MiniStar Roulette Wheel and Diamond Roulette Wheel. Interblock, stand 506 Interblock has been growing strongly in the region and will be showing its latest innovations from its Diamond line, as well as discussing its recent successes and aggressive growth strategy for Asia Pacific. Interviews are with CEO, John Connelly, and Sr. VP of Asia Pacific, Cameron Louis. l
Asia Gaming Briefings | August 2015
Become a member SUBSCRIPTION FORM, PLEASE TICK AS APPROPRIATE, USE CAPITAL LETTERS
STANDARD MEMBERSHIP BENEFITS TOP NEWS HEADLINES
SINGLE MEMBERSHIP
E-BRIEF CONTAINING IN-DEPTH FEATURE ARTICLES
$615
SEARCHABLE ARCHIVE OF GAMING NEWS
US$ 128.00/ MONTH, 6 MONTHS - US$ 768.00
DISCOUNTED ACCESS TO EVENTS AND OTHER AGB PRODUCTS
US$ 108.00/ MONTH, 12 MONTHS - US$ 1,296.00
$1,035
CORPORATE STANDARD MEMBERSHIPS THREE (3) MEMBERSHIPS: 10% DISCOUNT
FIVE (5) MEMBERSHIPS: 20% DISCOUNT
6 MONTHS: US$ 690 EACH Total: US$ 2,070 (Save: US$ 234)
6 MONTHS: US$ 615 EACH Total: US$ 3,075 (Save: US$ 765)
$ 552 each
12 MONTHS: US$ 1,165 EACH $ 932 each Total: US$ 3,495 (Save: US$ 393)
$ 492 each
12 MONTHS: US$ 1,035 EACH $ 828 each Total: US$ 5,175 (Save: US$ 1,305)
* Sign up and pay in full for 12 months and get the 13th month free!
TEN (10) MEMBERSHIPS: 35% DISCOUNT
$ 399
6 MONTHS: US$ 499 EACH each Total: US$ 4,990 (Save: US$ 2,690)
$ 672 12 MONTHS: US$ 840 EACH each Total: US$ 8,400 (Save: US$ 4,560)
* The above discounts cannot be used in conjunction with any other discount
CONTACT INFORMATION FIRST NAME :
LAST NAME :
:
SKYPE NAME :
COMPANY
:
ROLE
ADDRESS
:
STATE
:
CITY
:
:
PROVINCE :
USER NAME :
POSTAL CODE
:
MOBILE
:
COUNTRY : +
PHONE
:
+
PAYMENT DETAILS: HSBC HONG KONG | “BLUE SKY VENTURE LTD” | #658-046347-838 | SWIFT: HSBCHKHHHKH I WOULD LIKE TO SETTLE VIA CREDIT CARD. PLEASE SEND ME A DEDICATED PAYMENT LINK TO THE EMAIL ABOVE
WHAT IT IS
WHAT YOU GET
AGB serves as a platform for multiple levels of information about the Asian gambling industry in the form of feature articles, latest news headlines, networking events, directories of key authorities and players, bespoke research, introduction services, and access to experts who can answer your questions.
AGB consists of a weekly eBrief reporting on recent regional news and developments in the Asian gambling industry. Articles are written by experts living and working in Asia and cover a range of legal, operational and market issues, offering in-depth analysis of the opportunities these developments provide for operators and those who work with them.
WHAT’S DIFFERENT
WHY YOU NEED IT
Our extensive network of regional advisors ensures that the intelligence you receive is real, topical, and based on fact. No other service gives you such comprehensive insights into the political, legislative and competitive developments affecting the markets in this region, and what they mean for you. Get your information from the horse's mouth, not from third parties
Gain access to the vast knowledge and experience of those who actually work in and with the Asian gaming industry and get the inside scoop on the next great opportunities, as well as answers to your everyday operational challenges. By becoming a member, you also connect with other like-minded people who want more than just surface-level information.
AGB - Asia Gaming Brief | Trading as Blue Sky Venture - Reg#43675 SO | enquiries@agbrief.com Suite 1104, 11/F, First International Commercial Centre, 600E Av. Dr. Rodrigues, Macau SAR, P.O. Box 1139.
Thank you for being part of the three-day event that celebrated the best of the BEST Dealers in Asia. Macau 19-21 May 2015 See you at AADC ‘16! ORGANIZERS
MAIN SPONSORS
SUPPLIERS
SUPPORTING ORGANIZATIONS
MEDIA PARTNERS
EVENT MANAGEMENT
PRODUCERS
Keep up to date with news, videos and photos at facebook.com/AllAsiaDealersChampionship
AV SPONSORS
LAST WORD
China stock crash, weak PMI signal further VIP gloom
58
With gross gambling revenue in Macau recording its 14th consecutive month of declines in July, analysts are combing through the figures looking for potential cause for optimism. Sharon Singleton*
M
ost agree that July GGR has stabilized,
correlation coefficient of 0.82—as spending on gaming
while recent policy reversals by the
by high-rollers is affected by the wealth effect due to
government, such as its decision to ease
changes in business and sentiment.
transit visa requirements, lit a fire under
While China’s PMI stabilized in July, the figures were
gambling sector stocks.
not robust.
After a fall of about 50 percent over the past year, they
The official manufacturing Purchasing Managers’ Index
gained 10 percent the day after the visa changes were
likely stood at 50.2 in July, on par with the previous
announced in early July.
month’s reading, according to the median forecast of
However, it may be too early to crack the champagne
20 economists in a Reuters’ poll. But growth was tepid,
just yet. Certain historical correlations between Macau
with the reading just above the 50 point mark that
and the performance of the Chinese stock market and its
separates contraction from expansion on a monthly basis.
economy make the rally appear to be on very shaky ground.
The flash Caixin/Markit PMI released earlier showed
Deutsche Bank analysts, who have been among the
China’s factory activity contracted by the most in 15
most aggressive in writing down their expectations for
months in July.
Macau’s prospects, were quick to point out in a recent
While the official survey looks more at larger, state-
note that the crash in the Shanghai Stock Market is
owned firms, the Caixin/Markit survey focuses on
likely to put a further dent in the VIP market.
smaller firms and therefore may be a better indicator
The stocks had their worst one day fall since 2007 on
for gauging how the businesses run by VIP gamblers
July 27th, shortly before this article went to press,
are faring.
despite government efforts to stabilize the market.
“While we think the liquidity squeeze in the junket
Analyst Karen Tang wrote that there is a 70 percent
system is still small at this stage, we think the negative
correlation between the Shanghai A-share market with
wealth effect will dampen VIP and premium mass demand
Macau’s VIP gaming revenue and, as such, damage to
for longer,” Deutsche Bank analyst Karen Tang wrote.
the sector is to be expected.
Bernstein Research was of the opinion that July GGR
“The Shanghai A share index has fallen 23 percent
figures would show signs of stabilization and improvement
from its peak in mid-June having climbed 60 per cent
month-on-month.
from early January. Many junket agents are Mainland
“Although 2015 will be a challenging year in Macau, we
Chinese. According to our channel checks, many have
view the Macau gaming industry as a secular growth
lost much money in the Chinese stock market in the
story driven by the paradigm shift from VIP to Mass. We
past three weeks”, she said. “In the extreme cases,
expect to see a bottoming by the latter part of the year
some have even withdrawn their deposits with junket
with rejuvenated growth beginning in 2016,” it said.
operators to cover margin calls for their A-share
However, in its disclaimers it also notes that its
investments in China.”
assumptions are based on the belief that China’s gross
However, the liquidity squeeze is not the most immediate
domestic product will continue to grow in mid-to-single
problem, which rather comes from lack of demand
digits, with a critical risk factor being a significant
due to China’s ongoing anti-corruption drive and the
deterioration in China’s economic backdrop.
slowdown in the economy.
That deterioration, it points out, could come from stock
Another historic correlation has been between the
market losses and a decrease in disposable income,
performance of China’s Purchasing Managers’ Index
among other factors.
and VIP revenue.
Neither the Chinese stock market, or its PMI indicators
According to Credit Suisse, high-roller GGR growth
at present give rise to believe we will be off to the races
is led by the China PMI by three months with a good
any time soon. l
* Managing Editor, AGB
Asia Gaming Briefings | August 2015
Love Sydney. Love The Star. The glittering harbour, glamorous nightlife, world-class restaurants, designer shopping, luxe hotels and heavenly spa. You’ll find the best of Sydney at The Star.
80 PYRMONT STREET, PYRMONT
STAR.COM.AU
/THESTAR