JURISDICTION UPDATES November 2015 Edition
MACAU
Failing to fizz pg.06
AGB Advisors look into 2016 underlying trends
END OF THE IR ‘ARMS RACE’ pg. 28
RUSSIA
Looking into a Cristal ball pg.12
CAMBODIA
Asia’s bright spot pg.24
AUSTRALIA
Taking aim online pg.36
MGS 2015 SUPPLIER SPECIAL pg.40
MESSAGE 3
Viva Macau!
T
he world is changing; Mainland China is
In these pages you’ll also find a Supplier Special
changing; and Macau is now faced with changes
Report dedicated to the Macao Gaming Show.
it was never remotely prepared to undertake.
Organized by the Macau Gaming Equipment
The concept of “recovery” doesn’t seem to
Manufacturers Association, the exhibition features
apply any longer as the market is unlikely to go back
a floor area of over 10,000 meters sq. where major
to its golden ages. The year ahead is undoubtedly filled
suppliers are showcasing their best and latest. The
with challenges for local stakeholders, including policy
MGS show covers six gaming industry segments,
makers, operators and suppliers as the industry adapts to
including gaming equipment and accessories, gaming
a new norm - which has yet to reveal itself.
promoter and VIP clubs, casino fixtures and fittings
Despite all the doom and gloom, the downturn and
and F&B.
crackdown, Macau still remains the epicenter of
In turn, the event’s Summit is set to provide a
gaming in Asia but, as the market develops, the need
varied perspective on the region with the speaker
for transparency, sensible policy, and long term
list drawing on the experience of senior Chinese and
vision is imperative to develop a sustainable version
Macau figureheads, alongside leading players from the
of the sector.
international industry.
Asia Gaming Brief asked its advisors David Green, John
Lastly, AGB will be hosting the Official MGS Networking
English, Luis Mesquita de Melo, Andrew Klebanow and
Party at Spirito Bar, Portofino on the evening of
Steve Gallaway, to look ahead and share with us what
Tuesday November 17. With a host of supporters
they believe are the underlying currents for the Asian
including MGS, Betsoft Gaming, Aristocrat, Bulls
Gaming industry in 2016. Views may differ but the one
Eye Services, Every Matrix, Paltronics, Play’n GO and
common denominator is the shifting of the sands -
Transact Technologies, it’s sure to be the highlight of
something will have to give…
the week again.
In this edition of AGBriefings we also bring you the
As always, we look forward to connecting with you at
latest updates and developments across the different
one or other event, or remember to stay up to date with
Asian jurisdictions. Looking at Greater China we
all the developments by following us on social media.
examine opportunities in lotteries in Mainland
If you would like to book a meeting with us while in
China. In South East Asia, MBS Singapore delivers a
town for the MGS write to us at MGS@agbrief.com
surprisingly positive 15Q3, but the Philippines seems
or look for us at the floor. AGB will be exhibiting at
to have temporarily lost its lustre for analysts. In
booth #W23. l
Vietnam, a study underlines the potential GDP boost casinos would bring the country. In North Asia, the MERS outbreak highlights the risk of tourism dependency for Korean casinos, while Japan’s casino
@agbrief
Rosalind Wade
Luis Pereira
Asia Gaming Brief
Asia Gaming Brief
bill is held up by gambling addiction concerns. Down
On behalf of Asia Gaming Brief
under in Australasia, Best Sunshine aims for the
Rosalind Wade & Luis Pereira
world’s most luxurious resort, and New Zealand reviews
PUBLISHERS
its gambling act amid concern over falling revenue.
www.agbrief.com NOVEMBER 2015 EDITION SERIES II • ISSUE X
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Asia Gaming Briefings | November 2015
CONTENTS 4
GREATER CHINA
SOUTH EAST ASIA
06
MACAU
10
MAINLAND CHINA
MALAYSIA
SOUTH ASIA
18
PHILIPPINES
20
SINGAPORE
22
INDOCHINA
NORTH ASIA
27
INDIA
AUSTRALASIA
RUSSIA
12
CAMBODIA
24
AUSTRALIA
36
JAPAN
14
VIETNAM
26
NEW ZEALAND
38
SOUTH KOREA
16
PACIFIC ISLES
39
SPECIAL FOCUS
28
SUPPLIER SPECIAL REPORT
40
LAST WORD
Event Organizer
Event Organizer Event Co-Organizer
Event Co-Organizer
Asia Gaming Briefings | November 2015
54
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GREATER CHINA 6
MACAU
Bursting stock bubble adds no fizz to Macau GGR When the mainland Chinese government’s anti-graft campaign began to bite into Macau’s gaming revenue last year, many analysts suggested the big players had fled to safer ground in the thenbooming Chinese stock market.
Asia Gaming Briefings | November 2015
B
ut that bubble has now burst, with the
A quick look at the numbers shows the extent of
Shanghai Composite Index seeing its
that bubble. Although the market’s decline since
worst daily fall in eight years in August,
June has been spectacular, with the Shanghai
sending shockwaves through global
Index having lost a third of its value, it is still
bourses. If that boom is now well and truly
up by more than 40 percent from the same
over, is there any argument for a corresponding
period last year, according to Bloomberg figures.
turnaround in Macau?
Deutsche Bank analyst Karen Tang agrees
A recent report from Macquarie Capital Securities
there is a strong relationship between stocks
didn’t contain much reason for optimism, stating
and GGR, estimating a 70 percent correlation
most experts couldn’t say whether Macau’s
between the Shanghai A-share market with
Gross Gaming Revenue (GGR) would recover,
Macau’s VIP gaming revenue.
plateau or continue to plummet.
However, a leading analyst has warned not to
“Over the past two months, we met with over
expect VIPs to flock back to the Cotai Strip’s
two dozen industry participants and nobody had
embattled casinos and claims, despite what
clear visibility on where GGR would head a month
many other analysts say, that there is at best
out. Even for gaming operators themselves,
a “tenuous” link between China’s market
visibility can be as low as just one week,” wrote
movements and Macau’s still-plunging gaming
analysts Kai Tan, Maggie Jiang and Jensen Hui.
revenue.
“We believe the desired GGR recovery is not
“The first thing to talk about with Macau gaming
happening in the fourth quarter 2015, albeit
revenue is that the link between movements
[GGR] is declining at a slower rate of -27 percent
in the Chinese Stock Markets and the wealth
year-on-year versus -37 percent year-on-year
effects in other markets is very tenuous,” said
in the eight months of calendar year 2015.”
the Economist’s regional editor for Asia, Duncan
The Macquarie analysts did, however, find a
Innes-Ker, who has been analyzing China for
perceived link between share markets and GGR.
more than a decade.
“We expect the recent overshoot of Macau GGR
Investing on the stock exchange may be just seen
decline to reverse in the next couple of months.
as a different type of gambling, but Innes-Ker
The [Macau] performance discrepancy since
suggests that the high-roller casino customer
July 2014 seems to coincide with the overheated
isn’t necessarily the type to be having a flutter
A-share market during the period; i.e., affluent
on margins as an alternative to baccarat or poker.
SME [small- and medium-sized enterprise]
“The bigger factor in Macau is the anti-graft
owners spent more money investing in the
campaign from the Mainland and the immediate
A-share market rather than visiting Macau.”
impact of that, as regulators began to crackdown
GREATER CHINA 7 and the VIP high-roller, is that they basically didn’t turn up in the same sort of numbers they used to,” he said, adding that the claim that VIPs turned to the surging markets at that time may also be off the mark. “You can’t have your cake and eat it too,” he said. “If revenue is falling by 30 percent in the last quarter of 2014 because people are investing money in the stock exchange – you can’t then turn around and look at September 2015 numbers falling at 33 per cent and say that’s because of the impact of what is going on in the Chinese stock market. “Arguably there is a position to take that people with money to spend within China – wealthy people with investment cash, that they did channel a large amount of that into the stock market during the boom time and that did have an impact on the domestic housing sector, for instance, but in terms of its impact on the gambling sector in Macau, the effects are very much secondary to what is going on with the
to a record high of more than HK$100 billion ($12.9 billion) in 2013-14, climbing again to
GROSS GAMING REVENUE
$107.9 billion in the season ending in July.
Y14 $44b
However, the first meeting this season saw
-2.6%
only a slight rise in turnover compared to the corresponding fixture 12-months earlier – a hold of HK$1.1 billion on 10 races, up 1 percent on last year - that figure was also helped by
Oct. -28.4%
commingled betting from overseas jurisdictions that hadn’t been on board in the previous year. Commingled bets from New South Wales were added to the pools this week and will be sorely needed, along with simulcast betting, to boost the flat figures. A comparison of turnover from the first 13 meetings of the 83 meeting season
Y15E UBS
-34% -33% to -34%
Fitch
-32%
shows a slight drop in Pari-mutuel betting. In
Maybank Y16E
2014 it had reached $14.93 billion 13 meetings
UBS
in and 12-months later is $14.88 billion. Back in Macau – with the VIPs gone – there
+2%
Y17E
doesn’t look to be much light at the end of a
UBS
tunnel that has now grown into 17-straight
+10%
months of declining revenue.
anti-graft campaign.” Other analysts have also argued that any correlation may be more on the downside than
OPERATORS
the up, with the fall in stocks hitting the personal wealth of the SME owners, making them less likely to take a flutter in Macau. There does, however, appear to be a link between the stock market and Hong Kong Jockey Club betting numbers – so much so that some pundits are calling the HKJC numbers the new “Big Mac Index” - referring to the famous index created by The Economist that measures a country’s economic strength by the comparative cost of a hamburger. The only flat spot on what has been a steep rise in turnover in the last decade coincided with the 2008 Global Financial Crisis – when turnover failed to grow on the previous season, something that could happen again this term if early figures are any indication. Hong Kong Jockey Club chief executive Winfried Engelbrecht-Bresges says totalizator holds have been “resilient”, although the numbers may not be so pretty once you scratch beneath the surface. The Jockey Club’s handle has taken a body blow – most of the stock market losses occurred during racing’s summer break and there were bleak forecasts from some officials when racing returned on September 6. The Jockey Club does not entertain junket operators or offer credit betting and it is an approach that has paid off until now, with betting numbers being somewhat immune to the anti-graft measures. The figures have
MARKET SHARE AS OF OCT. 18TH 2015
SJM HOLDINGS (880:HK)
Holds a 20.5 percent market share as of Oct. with 20 casinos. Its $3.2 billion Palazzo Versace development is scheduled to come online in 2017. Mass market property the Jal Alai is scheduled for a mid-2016 opening with 130 rooms and 45 gaming tables. The company has also indicated it may be interested in opportunities in Japan. The company is currently building The Lisboa Palace on Cotai, which is also scheduled for completion in 2017. The casino plans are for 700 gaming tables and over 1,200 slot machines
GALAXY ENTERTAINMENT 25.4% LAS VEGAS SANDS 24.1% SJM HOLDINGS 20.5%
across a gaming floor area of approximately
MELCO CROWN ENTERTAINMENT 13.9%
27,000 square metres. The total production
WYNN RESORTS 8.1%
cost is estimated at about HKD$30 billion ($3.8
MGM RESORTS 7.9%
billion), although the company has expressed concern over costs.
(Source: Wells Fargo)
SJM Holdings reported a 37.9 percent drop in gaming revenue to HK$11.24 billion ($1.45 billion) in 15Q3 compared to the same period the year before. Adjusted EBITDA during the period decreased by 49.5 percent from 14Q3 to HK$884 million and for the nine months ended September 30 decreased 49.2 percent to HK$3.14 billion. Profit attributable to the owners decreased by 81.4 percent to HK$285 million and for the nine months decreased by 61.8 percent to HK$2.07 billion.
risen year-on-year for the last seven seasons
Asia Gaming Briefings | November 2015
GREATER CHINA 8
GALAXY ENTERTAINMENT
MELCO CROWN
Table games turnover in the VIP segment was
GROUP (27.HK)
ENTERTAINMENT (6883.HK)
the number of VIP tables also declined during
Has three casinos and a 13.3 percent market
year’s period.
properties. The company’s new Galaxy Macau
share. The company’s $3.2 billion Studio City
Wynn said it expects to open the resort in the
Phase 2 and Broadway at Galaxy Macau opened
opened on October 27, 2015, with an allocation of
first half of 2016.
on May 27 this year, almost doubling the capacity
250 tables, short of the 400 requested. All
During the third quarter of 2015, it invested
of the resort. The group was recently granted
tables were allocated to the mass sector, a
approximately $434.9 million in the Cotai
an extra 100 tables, adding to the original
first in Macau. The resort features a 5,000-seat
project, taking the total investment to $3.1
allocation of 150 tables. That’s still far short
multi-purpose theatre, a permanent magic
billion through September 30, 2015.
of the 400 it had requested, but brings it in
show, jungle-themed river rides, Asia’s highest
line with the table award given to Melco Crown
Ferris wheel and a Batman simulated ride. Melco
Entertainment’s Studio City.
says the resort will be made up of 95 percent
In the latter part of 2015, the company expects to
non-gaming components.
begin site investigation works for Cotai Phases 3
The company has warned in the past that a lower
and 4, the plans for which are almost complete.
table allocation than requested may put it in
a single casino in the peninsula. Its new
The company is also expected to break ground
breach of covenants with its lenders.
developments include the MGM Cotai, which is
on its hotel on Hengqin Island this year. Galaxy
The group said it intends to proactively engage
a $2.9 billion project scheduled for completion
is planning a “Maldives-style” resort.
the lenders under its senior credit facilities to
mid 2016.
The group posted 3Q revenue of $12.3 billion
discuss proposed amendments to the terms of
MGM China earned net revenue of $529 million,
and adjusted EBITDA of $2.1 billion in 15Q3,
its loan documentation to reflect the number
a 33 percent decrease compared to the prior
year-on-year declines of 29 percent and 36
of tables allocated.
year quarter. Main floor table games revenue
percent respectively.
CLSA analysts said they expected the property
decreased 30 percent compared to the prior year
Analysts have said the addition of Galaxy Macau
to grow the market, unlike Galaxy Phase 2 which
quarter, while VIP revenue dropped 39 percent.
Phase 2 hasn’t significantly boosted revenue.
largely cannibalized existing casinos. They
Property level EBITDA came in at $128 million
Though the group does claim success in shifting
forecast MPEL’s overall market share to grow
versus Deutsche Bank’s $118 million estimate
focus to the mass market. It says revenue from
from 13.6 percent in 2Q15 to 16.4 percent in
and the StreetAccount consensus of $124.4
the mass market has risen to about half of the
2Q16 before falling back to 15.3 percent in 3Q16.
million.
total, compared with one third in the same
In 3Q, adjusted net income per ADS was $0.11
MGM said its new Cotai project remains on track
period last year.
down from $0.28, beating forecasts by a penny,
to open in the fourth quarter of 2016. It said it
according to Capital IQ.
has reached a milestone with the topping off
Adjusted property EBITDA of $237 million was
of its hotel towers. l
Has a 24.2 percent market share with eight
SANDS CHINA (1928:HK)
above consensus of $202 million, though for
Has a market share of about 24 percent and
came in below the Street’s $217 million.
has four casinos. Analysts say the company
Net revenue dropped 16% to $945.7 million,
has had a lower room occupancy than rivals
missing the average estimate of $958.1 million.
revenue growth if it fills the rooms. The billion The Parisian, which is now expected to come online in late-2016. Sands China also
WYNN MACAU (1128:HK)
Has an 8.2 percent market share and currently
recently expanded retail space at its Sands Cotai
has one casino, while its $4 billion Wynn Palace
central property, with the addition of 150,000
is under development and scheduled to open
square feet of space, with shops designed to
in the first half of next year, with 1,700 hotel
appeal to families.
rooms. Chairman Steve Wynn says 90 percent
Net revenues for Sands China decreased 28.8
of the resort will be non-gaming. Wynn recently
percent in 3Q to $1.66 billion with adjusted
was reprimanded by the Macau government for
property EBITDA down 32.8 percent to $545.0
comments he made criticizing policy, especially
million. Net income decreased 46.8 percent to
over table allocation.
$343.2 million.
The company said the resort will feature a
The Venetian Macau saw a 9 percent occupancy
performance lake, casino, spa, retail and other
drop in the quarter and 20 percent drop in
outlets. It is aiming for about 500 table games.
revenue per available room, and Sands Cotai
In Q3 Macau net revenues were $585.1 million,
Central saw a 17 percent RevPAR drop YoY.
down from $942.3 million a year earlier, while adjusted property EBITDA tumbled by half to $162.8 million.
Asia Gaming Briefings | November 2015
the period to 228 units from 251 in the prior
MGM CHINA (2282:HK)
Has a 15.1 percent market share while operating
Macau alone adjusted EBITDA of $213 million
in Cotai, meaning it has more potential for company’s new developments include the $3
$12.2 billion, a 51.3 percent decrease, though
Macau’s health department is forecasting that gross gaming revenue will decline 2.7 percent to 4.6 percent in the event of a total smoking ban in Macau. The legislature has postponed the smoking bill until next year due to time constraints. Macau’s gaming regulator, the DICJ, plans to revise junket regulation “as soon as possible.” The DICJ said its main focus will be on oversight and audit of junket promoters. Specifically, it will look at introducing additional requirements on junket promoter’s capital, shareholders, guarantee deposits, financial reporting and auditing.
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GREATER CHINA 10
GROSS GAMING REVENUE
MAINLAND CHINA
Y14 Total sales RMB 382.38b ($61.6b)
+23.6%
Welfare Lottery Sales RMB 203.96b
+16.7%
Sports Lottery sales RMB 176.4b
+32.8%
August sales RMB 28.09b
-10.9%
Welfare lottery
-11.8%
Sports lottery Jan-Aug. sales RMB 242.82b
China moves to boost efficiency of lottery system, no lifting of online ban yet China’s State Council has taken steps to improve the efficiency of the country’s lottery system, though has not yet taken action to lift a ban on online and mobile sales.
I
n October, the council took action to reduce
However, one industry insider told AGB that
the amount of time required for the approval
the relaxation may not be as significant as
and administration of lottery sales and pay-
some have suggested, pointing out that it only
outs by cancelling 62 central authorization
applies to existing games and not new products,
requirements and devolving responsibility to
which will still require central Ministry of
provincial finance departments.
Finance approval.
U.K.-listed lottery company DJI Holdings
DJI, also in October, announced that its Qingdao
welcomed the move, saying it will allow greater
Baifa Network Science Technology Service
innovation in game development and drive
joint venture had been given permission to
greater demand from players.
commence a trial of sales of Sports Lottery
“We are pleased to see the first major policy
products via mobile phones in Qingdao City
change for China’s lottery industry since online
in Shandong Province.
sales were suspended in March and we view this as
The joint venture’s mobile app provides access
significant progress towards the announcement
to a number of Sports Lottery games including
of new regulation and the recommencement of
Big Lotto, China’s most popular Sports Lottery
sales. It is clear that the internet is recognised as
draw game, ten different digital scratch cards
an important channel for the lottery,” said CEO
and sports betting games Jingcai and Zucai.
Darren Mercer. “Reducing the length of approval
China’s decision to suspend online lottery sales
and administrative processes for operators,
has hit profits at companies operating in the
while allowing provincial lottery centres more
sector. 1H net revenue at DJI Holdings fell to
flexibility in determining their own lottery sales
GBP2.1 million ($3.2 million), down from GBP3.4
and pay-out structures, is a great step forward.”
million in the same period the prior year.
DJI added that the new regulation was a tangible
Rival 500.com said it had no revenue in 2Q
sign that steps are being taken to lift the online
compared with RMB156.1 million ($24.6 million)
ban, which was implemented to root out illegal
for the second quarter of 2014 and posted an
operators in the market.
operating loss. l
Asia Gaming Briefings | November 2015
-9.9% -1.8%
China’s State Administration for Foreign Exchange (SAFE) announced new annual limits on UnionPay cash withdrawals outside of China, an indication that the country is concerned about capital outflow. The new annual limit has been set at RMB100,000 ($15,700) per card for 2016 (and RMB 50,000 for the remainder of 2015). Guangzhou Lottnal Terminal Company, a subsidiary of China LotSynergy Holdings Ltd, has won bids to supply the Heilongjiang and Guangxi Sports Lotteries, giving the company a 30 percent market share of this year’s total Sports Lottery terminal procurement volume nationwide.
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NORTH ASIA 12
RUSSIA
Will Tigre de Cristal add sparkle to Russia’s gaming industry? The first casino in Russia’s Far East, which has been touted as a potential Macau of the north, has officially opened after lengthy delays.
Asia Gaming Briefings | November 2015
T
he Tigre de Cristal held its soft launch
is expected to appeal mainly to travellers from
on Oct. 8th in the Primorye gaming
northern China and Korea, although unlike in
zone near the city of Vladivostok. The
many other Asian countries locals will also be
opening of what is Russia’s biggest
able to participate. About 300 million people
casino was attended by about 1,000 guests.
live within a three-hour flight of Vladivostok.
It will have its grand opening ceremony on
“Money from China is flowing to this gaming
November 12th.
zone. It will be also operated primarily by the
“We are certain that implementation of this
Chinese. They have Macau in the south and
project will attract additional investments to
Vladivostok in the north,” Russian gaming
all spheres of tourism in Primorye Territory and
expert Samoil Binder said.
the Integrated Entertainment Zone. Primorye
The first phase of Tigre de Cristal involves 121
will become a world-level holiday destination
hotel rooms, seven restaurants and bars and
and attract visitors from all APR regions,” Craig
two main gaming floors, with a capital budget
Ballantyne, CEO of developer G1, was cited as
of $172 million. It features 42 mass market
saying at the event.
tables, 759 slot machines and electronic table
The debut of the casino has been postponed
games, and 25 VIP tables.
multiple times since 2011, but the pace of
The current estimated expenditure for the second
development picked up when Asian investors
phase, set to open in 2018 and comprising a
became involved in the project in 2013. The resort
further 100 VIP tables, 70 mass market tables
NORTH ASIA 13
GROSS GAMING REVENUE
and 500 slot machines, as well as a total of 500
foreign suppliers rather than to purchase them
hotel rooms, is $500 million.
in Vladivostok, the local information agency
The companies behind the casino are Summit
Vladivostok Daily News reported.
Ascent controlled by billionaire Lawrence Ho,
Miklushevskiy has said the region stands to
Melco Crown Entertainment Ltd, which Ho also
benefit from about 1 billion roubles in taxes
co-chairs, and G1 Entertainment LLC, formerly
from gaming activities. Binder reckons the
known as First Gambling Company of the East,
target is realistic. “It is enough to have a casino
PRIMORYE Y16E $410m Y20E $1.7b NAGACORP RUSSIA Y20E EBITDA $220m
a majority-owned subsidiary of Summit Ascent.
with 100 working gaming tables and 500 slot
Tigre de Cristal is the first of four resorts
machines, several restaurants, a nightclub, a
(Source: Citi)
scheduled to open in the Primorye Integrated
hotel and other infrastructure,” he said.
Entertainment Zone (IEZ), which will be
According to Binder, if the quality of infrastructure
constructed in three stages until 2022. The zone
and transport connections is improved, Primorye
is situated on the Muravyinaya Bay just 50km
may be of interest for Chinese VIP players,
from Vladivostok and covers an area of about
who are shunning Macau to avoid coming
620 hectares. In addition to eight casinos, the
on to Beijing’s radar amid its ongoing anti-
zone will feature multiple hotels, ranging from
corruption drive.
three-star to seven-star, as well as a yacht club.
In February, a consortium led by Singapore’s
Global Market Advisors estimates that the
Changi Airports International was announced
Vladivostok area gaming market will reach $1.2
as the winner of the tender to acquire shares in
billion in its third year of operation, and $5.2
Vladivostok International Airport. Since then
billion in its tenth year, according to figures
more flights have been introduced, with the
cited by Forbes. That would make it one of the
number in October reaching up to 30 per day,
world’s top four gaming destinations, behind
both external and internal.
Macau, Las Vegas and Singapore.
Primorye IEZ will become the third functioning
The launch of the first casino in Primorye comes
gambling zone in Russia and the only one
just ahead of the introduction of a simplified
which is Asian facing. It is also the one which
visa regime in the region (12 October), which
has attracted the most foreign investment at
will allow foreigners to stay for a period of up
more than $2 billion.
to eight days. Primorye Territory Governor
In addition to Tigre de Cristal three other projects
Vladimir Mikhushevskiy recently said the
have been authorized by the local authorities,
tourism flow to Primorye doubled in the first
and at least two of them have begun work.
half of 2015 compared to the previous year,
NagaCorp Russia, a unit of Hong Kong-listed
with the majority coming from neighbouring
NagaCorp, broke ground on its resort in May
Asian countries.
this year, having selected China Harbour
In the beginning of 2016, a road linking the
Corporation as its contractor.
Muravyinaya Bay and Vladivostok airport is
The first phase will include a casino hotel
expected be put into service, allowing access
complex with 100 gaming tables and 500
to the casino in 10 to 15 minutes instead of the
gaming machines and is expected to receive
current 40 minutes. The regional government
its first guests at the latest in 2018. All three
injected some 800 million roubles ($12.6
stages of the resort are due to be completed by
million at the current exchange rate) into the
2021, with a total investment of $350 million.
infrastructure.
NagaCorp CEO Chen Lip Keong recently told
Russia’s gambling taxes are much lower than
local media that one of the reasons for choosing
in Asian countries, which is seen as a major
Vladivostok was that it’s “a European city in
draw for operators: a levy per slot machine per
Asia. And every Asian man dreams about visiting
month is just 7,500 roubles ($120) and per table
a European city which is situated so near.”
125,000 roubles (about $2,000). Compare that
Russian company Diamond Fortune Holdings
with Macau, which levies an effective tax rate
Ltd announced in early July that work had begun
of 39 percent on casino gross gaming revenue,
on its Selena World Resort. The total amount of
whereas Singapore’s effective rate varies from
investment into the project is expected to reach
12 to 22 percent of gaming revenues.
$913.7 million. Diamond Fortune CEO Georgiy
Despite the low taxes, Vladivostok does not
Kondakov said at the recent Eastern Economic
necessarily offer a low cost structure.
Forum in Vladivostok that his company’s project
Stelianos Tsifetakis, vice president of Hotel
is aimed at tourists with different interests,
and Catering Operations at G1 Entertainment,
“not only gamers.”
recently complained of high prices and the
He also noted some problems with infrastructure
unsatisfactory quality of goods needed for
as part of the territory for construction is
Tigre de Crystal, making it necessary to turn to
situated in the forest. l
EXPECTED JUNKET COMMISSIONS PRIMORYE 1.7% (Source: Citi)
TAX RATE: RUB125,000/gaming table and RUB2,500/slot per month The launch of the Yantarnaya (Amberland) gaming zone in Russia’s westernmost Kaliningrad region has been postponed until the summer of 2016, according to the Vedomosti newspaper. Citing a representative of Royal Time Management, a subsidiary of the project’s investment company, Royal Time Group, the newspaper said the delay is due to the slumping rouble. Russia’s state internet monitoring agency has stepped up its efforts to ban online gambling, recently blocking popular sites 888 Poker and Ladbrokes. The blocking began in late September and also includes Betway, Bwin. party, JackpotCity, Ladbrokes, Marathon Bet, Pinnacle Sports, Titan Poker and Unibet.
Asia Gaming Briefings | November 2015
NORTH ASIA 14
JAPAN
CASINO GGR ESTIMATES
Casino bill held up by gambling addiction concerns
GGRE $6b
In a quiet neighborhood in Yokohama, Japan, about twenty senior citizens gather each day in a facility called Day Service Las Vegas. For hours on end they play at card games, mahjong, slot machines, and pachinko. At first glance this may look like an illicit casino patronized exclusively by the elderly, but on closer inspection the 10,000 yen bills that change hands are not Japanese currency at all, but rather the equivalent of Monopoly money. No one’s wagers make them any richer or poorer. The top winner of the day simply gets their photograph posted on the wall and the losers are equally as happy to have spent an enjoyable day with their friends.
A
(Source: Fitch based on two major IRs)
PACHINKO ANNUAL REVENUE $153b (Source: Japan Productivity Center)
Japanese billionaire Kazuo Okada will have to travel to the U.S. to face questioning over events leading to his ousting from Wynn Resorts’ board after failing to overturn a Nevada court order. The U.S. Justice Department started an investigation into whether he used a Universal subsidiary in Nevada to funnel illegal payments to gaming officials in the Philippines where he’s building a casino resort.
lthough the concept that lay behind
views the bill as important, but it is not his top
this facility was inspired by a visit by
priority. If something else emerges that he sees
the company’s president to the real
as truly necessary to address, the Casino Bill
Las Vegas in Nevada, the purpose of
may continually be delayed.” Kakizawa adds
Day Service Las Vegas is to brighten the lives of
that the biggest factor holding up passage of the
elderly and infirm Japanese who might otherwise
legislation is the lack of consensus about this
live in isolation within their own homes. It
issue within the ruling coalition. In particular,
provides them with a community of friends,
the coalition Komeito Party seems unlikely to
physical exercise, and mental stimulation to
drop their opposition to the bill.
keep them healthy and alert.
Representative Kakizawa feels that the repeated
Kaoru Mori, president of the company that
delays in the passage of the enabling legislation
established Day Service Las Vegas, contends, “The
are having a serious adverse effect on international
first step toward health care is to get them out
investors, whom he believes are gradually losing
of their houses. There are many cases of people
their passion to enter the Japanese market and
who won’t even leave their rooms. So we have
to establish integrated resorts. There is no longer
to think about how to bring them outdoors. It’s
much faith that Japan will overcome its cultural
best that they decide for themselves to go out,
conservatism and pass the bill.
and I believe that everyone enjoys a casino.”
Noriko Tanaka is the charismatic leader of The
But in contemporary Japan, even the apparently
Society Concerned about Gambling Addiction, a
Noriko Tanaka calls for a comprehensive and
harmless form of “casino” represented by Day
citizens’ group which includes about three hundred
serious public policy toward gambling addiction,
Service Las Vegas is viewed as controversial.
mostly female members across the country.
which would include enforcement of rules to
Some people speculate that it could open the
Somewhat counterintuitively, Ms. Tanaka says
keep minors out of pachinko parlors, widespread
door to a serious form of gambling addiction.
that she is not an absolute opponent of the
public education about the dangers and the signs
These fears weigh heavily in the opinion polls
Casino Bill and might find it acceptable under
of gambling addiction, and a robust expansion
showing that the Japanese public is cold toward
some circumstances. She strongly believes,
of knowledge and access to care facilities for
the idea of passing the Bill for the Promotion
however, that Japan has done a poor job dealing
those who have been identified by their families
of Integrated Resort Facilities, known popularly
with serious problems relating to gambling
as addicts.
as the “Casino Bill.” This unpopularity was a
addiction that already exist in society. For her,
Were such policies put into place on a national
key factor that led Prime Minister Shinzo Abe
this is the top priority.
scale, then Ms. Tanaka says that the establishment
to drop efforts to pass the bill in the previous
According to Ms. Tanaka, about one in twenty
of integrated resorts wouldn’t trouble her greatly.
Diet session, and it remains a major hurdle
Japanese adults can already be classified as
Whether or not the Casino Bill will actually be
going forward.
gambling addicts of one kind or another. The
passed remains entirely unclear. What is fully
House of Representatives lawmaker Mito Kakizawa,
form of gambling addiction afflicting about 80
apparent, however, is that its prospects will
a strong proponent of the Casino Bill, has turned
percent of these people is pachinko. Although
rise considerably if it is preceded by, or paired
much more pessimistic about its prospects for
most Japanese do not really associate pachinko
with, legislation that is seen to grapple seriously
passage than he had been previously.
with the word “gambling,” this is where Ms.
with the potential negative effects of gambling
Kakizawa explains, “I do think that Mr. Abe
Tanaka says that the largest problems lie.
in Japanese society. l
Asia Gaming Briefings | November 2015
Japan’s baseball industry has been rocked by a scandal involving some of its leading pitchers betting on pro-games. Although not accused of matchfixing they ran into hot water as betting on pro-sports is illegal. The pitchers played for the Yomiuri Giants, one of the country’s oldest teams.
MGS 2015 BOOTH AQ36 +853-2857-5762
W W W. A R UZ EG A M I N G .COM
INFO@AGAMACAU.COM.MO
NORTH ASIA 16
SOUTH KOREA
GROSS GAMING REVENUE
MERS outbreak highlights risk of tourism dependency for Korean casinos
GGR Y14 (including lottery and racing) KRW19.87 trillion (US$17.64b)
South Korea says its tourism arrivals have now almost recovered following an outbreak of Middle Eastern Respiratory Syndrome in May that triggered a three-month plunge in visitor numbers.
T
Tourism spending Jan - Aug
+1%
-11.2%
Visitors Sept. 1.21 million China arrivals
-3.1%
+4.8%
he outbreak, which caused 37 deaths,
president of Mohegan Tribal Gaming Authority,
led to a more than 40 percent drop in
told the Yonhap News Agency in a recent interview.
arrivals in June, a 53 percent decline in
Soper said the island has great potential to become
July a 26.5 percent slide in August. It
a major tourism attraction in Asia once world-
also highlighted the vulnerability of the South
class resorts are built in the area to encourage
Korean casino market to tourism trends, given
passengers to stay there and have fun.
locals are not permitted to gamble.
Incheon International Airport handles more
Paradise Co. said casino sales dropped 50.2
than 45 million visitors annually and is currently
percent in June, while Grand Korea Leisure said
under expansion.
the average daily number of visitors to its Seven
South Korea is also facing growing competition
Luck casinos dropped from nearly 4,900 in May
from other destinations around Asia.
to 3,200 in June and 2,500 in July.
However, comparing the prices of package travel
Authorities have pushed hard to woo back the
products from China to several countries in Asia,
tourists, especially those from Mainland China.
CLSA in recent research found Korea to still have
South Korea waived a $15 visa processing fee
a price advantage.
beginning in July through to December this
“We compared the prices of group (package) tours
year for all group tourists from China and four
to major Chinese tourist destinations (Korea,
southeast Asian nations, including Vietnam, the
Japan, Thailand, Taiwan, Singapore, Indonesia
Philippines, Indonesia and Cambodia.
and Vietnam) in Asia using Ctrip (from Shenzhen)
They also launched aggressive marketing campaigns,
and CITS (from Beijing).”
with popular Korean bands roped in to perform
The average travel cost for these seven countries
promotional concerts and initiated the first “Black
came to RMB931 ($145) per day. The travel cost
Friday” shopping event, timed to coincide with
to Korea is RMB754 per day, or 19 percent lower
the Chinese Golden Week holidays.
than the average.
Other measures included a 10 percent tax refund
Group tour prices to Japan were 105 percent
on cosmetic surgery over the next year and free
higher than to Korea, while semi-tours (a mix
medical insurance.
of package and free travel) and free tour prices
As a result, visitor numbers were down just 3.1
(hotel and flight) were 38 percent and 11 percent
percent in September to 1.2 million tourists.
higher than Korea as well.
About half of those visitors were from China,
“Given the large price gap between Japan and
City casino complex near Incheon International
making up the biggest sector.
Korea, the profile of Chinese tourists visiting
Airport, along with Japan’s SegaSammy.
Growth in China visitor numbers has been one
these two could be different. We have highlighted
The other area seeing a surge in activity is on Jeju
of the main reasons for the interest in casino
Chinese inbound traffic to Korea and Japan could
island in the south, which is a self-governing
operators in bidding for two licenses for integrated
grow strongly in tandem as both countries are
province and as such not part of the request for
resorts. A total of 34 companies have thrown their
popular destinations, and not alternatives.”
proposals process for the two IRs.
hats into the ring, with the winner expected to
Although the 34 proposals for resorts were spread
Philippine-based Bloomberry Resorts Corporation
be announced in December.
across the country, analysts eventually expect the
recently re-opened the casino of its new re-
The Mohegan Sun, a U.S. regional operator is one
government to choose two projects in Incheon,
branded property on Jeju Island in Korea under
of the interested parties for its first foray out of
where two are already underway, creating a hub.
the new management of Jeju Sun Hotel & Casino.
the U.S. It’s eyeing a resort on Yeongjong Island,
LOCZ Korea, a Chinese-U.S. consortium of Lippo
Bloomberry has a 96.23 percent shareholding in
a transportation hub located west of Seoul.
and Caesars Entertainment, won approval to open
Jeju Sun Hotel and Casino, 10 percent held directly
“While we have previously looked at various
a foreigners-only, casino-driven resort by 2018
and 86.23 percent held through its subsidiary
development opportunities outside of North
in Midan City on Yeongjongdo Island.
Solaire Korea Co., Ltd.
America, this is the first opportunity we felt
While Paradise, Korea’s largest operator of
While Lotte Tour Development recently announced
compelling enough to pursue,” Bobby Soper, the
foreigner-only casinos, is building the Paradise
the largest IR plan for the island so far. l
Asia Gaming Briefings | November 2015
Chinese police arrested 13 South Korean casino managers from Grand Korea Leisure and Paradise Co suspected of luring gamblers from China to South Korea. Police launched a probe in June into “criminal gangs” from five South Korean casinos, who “enticed” Chinese with free tours, free hotels and sexual services, Chinese television reported. South Korea’s Jeju Island will get a second major foreigners-only integrated casino resort after Lotte Tour Development took over the Dream Tower Resort from privately held affiliate Dongwha Investment and Development Co. Lotte agreed to pay out 5.7 million shares, worth about $85 million for the injection of the IR.
SOUTH EAST ASIA 18
GROSS GAMING REVENUE (Source: Morgan Stanley)
Y14
Y15E
$1.88 b
$2.04b
Y16E
Genting Malaysia 2Q15 revenue RM1.98b ($468.6m)
MALAYSIA
Genting delays opening of star theme park attraction Genting Malaysia has delayed the opening of its 20th Century Fox theme park until 2017, a development that analysts say is negative for the company as the attraction was expected to be a key driver of visitation.
M
$2.42b
+4%
Genting Malaysia is buying the group’s U.K. online gambling business for GBP7.2 million ($10.9 million) as part of an ongoing effort to streamline the group structure. Genting is competing with America’s Hard Rock International, South Africa’s Sun International, Cambodia’s NagaCorp and French conglomerate Bouygues for a casino license on the European island of Cyprus.
alaysia’s only casino operator is
Genting says it’s reviewing the cost of the
added 1,500 in room capacity by end-June to
in the middle of a major revamp
project due to the sharp deterioration in the
meet the demand and the occupancy rate stood
at its Resorts World Genting
ringgit, which has slumped about 20 percent
at 91 percent in 2Q15 (vs 89 percent in 2Q14).
Highlands property spending
against the U.S. dollar this year.
The company also said the average room rate
MYR5 billion ($1.2 billion) to upgrade hotels
The firm said the meeting with management
was up 7 percent to RM81.
and add shopping and other leisure facilities.
yielded both negative and positive surprises.
The resort saw a doubling in visitation from
The real crowd puller for the renovation project,
On the upside the new shopping mall and
China, while Hong Kong tourist numbers were
however, is seen as the Twentieth Century Fox
additional gaming capacity will come onstream
up 50 percent and Singapore up 3 percent.
World, the first theme park licensed by the US
from mid next year compared to the initial
“In the backdrop of weak Ringgit against
film studio. Sister company Genting Singapore
date of late 2016. This positive however may
regional currencies, we expect visitation to
runs a theme park with rival Universal Studios
be offset by pre-operating expenses, it said.
Genting Highlands to continue growing in 2H15
in neighbouring Singapore.
Again on the upside, CIMB added that the
and 2016,” TA Securities said in a recent note.
According to the plans, the 25-acre park will
recently introduced GST, a consumption
Meanwhile, the group’s U.K. operations,
feature more than 25 rides and attractions
tax, has not affected gaming volumes and
which have been a drag on its results, may
based on Fox films such as “Ice Age,” “Rio,”
consumers remain upbeat.
get a boost with the opening of a major new
“Alien vs. Predator,” “Planet of the Apes”
“Negative consumer sentiment has also not
resort in the Midlands city of Birmingham.
and “Night at the Museum.”
hurt gaming volumes, in line with Genting
The property opened on October 21st, bringing
Twentieth Century Fox Consumer Products
Malaysia’s experience in past economic cycles.
an integrated resort-style experience to the
president Jeffrey Godsick has said that the
This is a testament to Genting Malaysia’s
area for the first time. Attractions include
resort, which had been scheduled to open
economic moat. It is a defensive casino
outlet shopping, bars and restaurants as
late next year, would attract people from
monopoly domestically,” it said.
well as Cineworld, one of Europe’s leading
around the world.
The group is also seen as benefiting from
cinema groups.
After a recent meeting with management,
weakness in Malaysia’s ringgit.
The UK operation suffered losses of RM61.6
CIMB analysts called the delay in the opening
Visitation to Resorts World Genting Highlands
million in 1H compared with RM10.3 million
of the park a negative for the company.
improved 9 percent in 2Q15. The group had
in the year-earlier period. l
Asia Gaming Briefings | November 2015
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SOUTH EAST ASIA 20
PHILIPPINES
Loss of lustre for analysts Bloomberry Resorts Corp’s CEO Enrique Razon has warned against tarring the whole Asian casino industry with the same brush as Macau, saying the situation in the Philippines is nowhere near as bad.
H
e expects losses at his company to
base as one of the reasons for optimism, with
includes a certified 1,760-seat lyric theatre.
narrow this year, with the negative
less reliance on the Chinese than many other
Bloomberry’s Sureste Properties arm is purchasing
results seen in the first half from
destinations around Asia. The Philippines also
a plot of land measuring more than 15,000 square
operators the result of development
has the advantage of local participation, with
meters in Quezon City, Philippines.
costs. He said revenue is still growing.
a growing middle class who are permitted to
The 15,676 sq. m area valued at PHP1.98-billion
“The whole industry has been painted with the
gamble in the country’s casinos.
($43.16-million) was purchased from the National
same brush, but we’re nowhere near the situation
Total international visitors for January to August
Housing Authority’s share in the joint venture
in Macau, where revenue is really falling,” he
2015 was recorded at 3,590,038 for a 9.87 percent
between the NHA and Ayala Land, Inc. in the
told Bloomberg in an interview.
gain compared to its corresponding figure of
Vertis North project.
The company, which opened the extension to its
3,267,542 in 2014.
Bloomberry Resorts Corp reported a net loss
Solaire Casino & Resort in November last year,
Korea is still the top contributor of international
of PHP189.5 million ($4.1 million) in 15Q3,
plans to provision by year-end for all unpaid
arrivals to the country for 2015 with 901,749
compared to a net profit of PHP991.7 million
credit extended to VIP and premium players.
arrivals and a 25.12 percent share of total
in the prior year period. Gross gaming revenue
Still, analysts remain cautious. At the beginning
inbound traffic.
for the third quarter of 2015 increased by 19.5
of the year, most were optimistic about the
The U.S. provided the second largest number of
percent to PHP8.8 billion
prospects for the Philippines, seeing new supply
arrivals at 531,217 visitors, recording growth of
as driving growth. It was also expected to benefit
7.68 percent. Arrivals from Japan grew by 7.71
from the exodus from Macau.
percent, recording 334,881 visitors for the period
However, Morgan Stanley analysts recently
in review. China provided 322,417 arrivals with
downgraded their gross gambling revenue
growth of 4.55 percent for January to August 2015.
estimates, citing lower-than-expected VIP growth. The firm now expects GGR of $1.4 billion for this year. It targets $1.6 billion for 2016, down from its prior estimates of $1.7 billion.
store sales growth” for Resorts World Manila and Solaire would only grow by 3 percent, said MS Research. “Our GGR expectations for the three casinos in the Philippines are 17%-54% lower than consensus for 2016 and 2017. Our reduction is
Belle Corp and Melco Crown held the soft opening of the $1.3 billion City of Dreams casino resort
OPERATORS
project in December and the grand opening on Feb. 2. As of June 30, 2015, City of Dreams Manila has around 272 gaming tables, 1,588 slot machines
Excluding City of Dreams Manila, which was in the initial stages of opening in 2015, “same-
CITY OF DREAMS
SOLAIRE RESORT & CASINO
Solaire, owned by Bloomberry Resorts, is a 16-hectare gaming and integrated resort complex along Asean Avenue in Parañaque City and was the first casino to operate within Entertainment City. In November 2014, the company opened
and 130 electronic table games in operation. The integrated resort features three entertainment venues, namely: DreamPlay by DreamWorks, Manila’s first branded Family Entertainment Center; Centerplay, a live performance central lounge inside the casino; and Chaos and Pangaea Ultra-Lounge, two nightclubs situated within the Fortune Egg, an architecturally-unique
mainly due to lower volume growth in the VIP
its SkyTower, more than doubling the size of
segment.” It adds that demand from overseas
the resort, increasing the room count by 64
VIP remains weak and junket ramp-up taking
percent to 800.
longer than expected.
Bay Tower of Solaire consists of a casino with an
Bloomberry is likely to be affected more than
aggregate gaming floor area of approximately
Resorts World Manila by the lack of Chinese VIPs
18,500 square meters (including approximately
it says, estimating that the Chinese account for
6,000 square meters of exclusive VIP gaming
60-70 percent of total VIP roll for Bloomberry
areas), with approximately 1,400 slot machines,
and 10-15 percent for RWM.
295 gaming tables and 88 electronic table games.
The regulator, Philippine Amusement and
Bay Tower has 488 hotel rooms and 15 specialty
Gaming Corp., continues to be upbeat about
restaurants.
the prospects, in July predicting that revenue
Contiguous to the existing Solaire Resort and
Travellers International Hotel Group, a joint
could reach $3 billion this year, well above the
Casino, the Sky tower consists of a 312 all-suite
venture between Genting Hong Kong and Alliance
consensus expectations of analysts for $2.2 billion.
hotel, additional ten VIP gaming salons with 66
Global, says it has so far put aside about PHP10.86
It points to the country’s diversified tourism
gaming tables and 223 slot machines. It also
billion ($236 million) of the proceeds from an
Asia Gaming Briefings | November 2015
dome-like structure accented with creative exterior lighting. City of Dreams Manila includes an approximately 260-room Crown Towers hotel, a 365-room hotel managed by Hyatt International Corporation and Asia’s first Nobu Hotel with 321 rooms.
RESORTS WORLD MANILA
SOUTH EAST ASIA 21
GROSS GAMING REVENUE Y14 $2.5b
+16%
H1E $1.4b
+16%
Y15E $3b
+20%
Y18E $6b (Source: Pagcor)
$1.46b
$1.6b
$1.69b
Y15E
Y16E
Y17E
(Source: Morgan Stanley)
CONSENSUS VIEW $1.8b
initial public offering to fund the expansion of Resorts World Manila. The company, which is engaged in principally the casino and hotel business, invested PHP2.05 billion in 15Q3 to expand the resort following a November 2013 IPO through which the company issued an additional 1,573,222,300 common shares generating net proceeds of P16.5 billion. The second phase of the property, which includes the expansion of the Marriott Hotel Manila by an additional 227 rooms, is expected to be ready by 16Q1. The expansion will cover a two-hectare area 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 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.
MANILA BAY RESORTS
Y15E
$2.2b
Y16E
$2.53b
Y17E
Tiger Resorts and Entertainment, the Philippine unit of Japan’s Universal Entertainment, held a topping out ceremony in July for part of its Manila Bay Resorts project and said it had been
Tourism arrivals Jan - Aug. 3,590,038
+9.8%
granted an extension to its deadline to complete the project to the end of December 2016. In return for the delay, the company also agreed to up investment to potentially as much as $4 billion. It plans to raise $600 million through a bond sale to help finance the complex. The company recently appointed Steve Wolstenholme as chief operating officer. Wolstenholme has previously served as president and COO of Grand Sierra Resort and Casino in Reno, Nevada.
Bloomberry Resorts Corp. has set up Solaire de Argentina SA to explore investment in a casino in Argentina. The company has appointed the head of the country’s hotel association, Oscar Alberto Ghezzi, as president of the venture.
Once fully operational, Manila Bay Resorts would feature two luxury hotels, a 30,000-squaremeter casino floor with 3,000 slot machines and 500 table games, as well as a number of dining, leisure, and entertainment options. It will include an indoor man-made beach club covered by a huge glass dome, high-end and casual dining restaurants, upscale retail shops, trade halls and cinemas. The group recently overcame a key regulatory hurdle by teaming with local businessman Antonio O. Cojuangco and his All Seasons Hotels & Resorts
Pagcor surpassed its revenue target in the first nine months of the year due to strong gaming income. In its third-quarter financial report, Pagcor reported that gross revenues reached PHP35.73 billion from January to September this year, higher by 16 percent compared with PHP30.68billion target for the period.
Corp. to comply with Philippine regulations on foreign land ownership. l
Asia Gaming Briefings | November 2015
SOUTH EAST ASIA 22
SINGAPORE
GROSS GAMING REVENUE
Marina Bay Sands delivers positive 15Q3 surprise
Y14 $6.05
Las Vegas Sands’ Singapore unit delivered a healthy set of Q3 results, showing the market it was resilient to the downturn in China VIPs and lending weight to the view the market may have bottomed out in the first half.
M
arina Bay SandspostedEBITDAof$390
with 19 percent growth. Visitor numbers from
million, which was about 6 percent
Taiwan also gained strength, up 11 percent.
higher than analysts’ estimates and
However, Singapore did see a decline in tourism
came despite a lower hold.
numbers from most of its Association of South
Mass and slots were down 1 percent year-on-year,
East Asian neighbours, hindered in part by the
but on a constant currency basis, they showed a
relative strength of the Singapore dollar against
gain of 8 percent. Total mass win per day of $4.8
other currencies in the region.
million was a new quarterly record. On an earnings call, chairman Sheldon Adelson attributed the solid performance to the “successful execution of our strategy to bring premium mass
than expected, with the mass segment that is less dependent on Mainland China sourcing and is more locally sourced and internationally diversified showing signs of improvement,” UBS said in a note following the release of the results.
-21%
Y16E $4.5b
-6%
(Source: Morgan Stanley)
Y15
-11%
VIP GGR
-26%
Mass GGR
-3%
(Source: UBS)
OPERATORS
customers from throughout Asia to Singapore.” “Singapore was a brighter spot, coming in better
Y15E $4.7b
RESORTS WORLD SENTOSA
Spans 49 hectares and features six hotels, a convention centre, the region’s only Universal
VIP TAX 5% MASS TAX 15% SINGAPORE POOLS, SINGAPORE TURF CLUB GGR FIVE-YEAR AVERAGE $2.39b
Studios theme park, one of the world’s largest aquariums, as well as restaurants and spas.
VIP rolling volume was also strong, showing
The casino has more than 500 tables and more
gains of 25 percent, although analysts warn the
than 2,400 slots. Genting opened a new hotel,
numbers are still likely to be volatile.
Genting Hotel Jurong, in April this year. The
“While we caution VIP in Singapore can vary
15-storey property was designed to help boost
greatly given the concentrated player VIP base
the company’s mass tourism base.
(hundreds versus thousands in Macau), we believe
The company reported Q2 casino revenue fell
3Q15 Singapore results may allow for some renewed
28 percent to $428.3 million. Adjusted EBITDA
optimism from investors for forward growth,”
declined 6 percent to $296.4 million.
Sterne Agee analyst David Bain wrote in a note.
Genting Hong Kong, which operates Star Cruises, has acquired Singapore’s iconic club brand, Zouk, for an undisclosed sum. The club will continue to operate under Benny Heng, the club’s newly appointed managing director and former general manager.
UBS has revised down its forecasts for the Singapore market overall for 2015 due to a decline in VIP traffic, but also notes that the worst may have passed, with the trough hit during the
MARINA BAY SANDS
Features approximately 2,600 rooms and suites
second quarter.
located in three 55-story hotel towers. Atop the
The firm expects overall gross gaming revenue
three towers is the Sands SkyPark, an extensive
to drop 11 percent this year, compared with its
outdoor recreation area with a 150-meter infinity
earlier forecast for a decline of 5 percent.
swimming pool and several dining options. The
UBS expects LVS to have 56 to 57 percent market
integrated resort offers approximately 160,000
share in Singapore this year and next compared
square feet of gaming space with approximately
with previous estimates of 51 percent share in
600 table games and 2,500 slot machines.
both 2015 and 2016.
The property posted upbeat Q3 results. Adjusted
UBS estimates 2015 EBITDA of $1.497 billion
property EBITDA increased 10.8 percent year-
for Marina Bay Sands, down from $1.513 billion
over-year to $389.7 million. Hold-normalized
previously, due mainly to the strength of the
EBITDA increased 12.2 percent to $411.3 million.
U.S. dollar and 2016 EBITDA of $1.464 billion,
The property generated record mass gaming
down from $1.505 billion previously estimated.
win-per-day in local currency terms while hold-
Visitor arrivals to the island in the first eight
normalized adjusted property EBITDA increased
months of the year recorded a dip of 0.6 percent,
22.4 percent year-over-year on a constant-
though arrivals from China picked up strongly
currency basis. l
Asia Gaming Briefings | November 2015
The Singapore Turf Club has discontinued two of its most popular races. The $2.1 million Singapore Airlines International Cup and the KrisFlyer International Sprint have achieved their objectives in boosting the brand of Singapore racing internationally and will no longer be held, it says.
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INDOCHINA 24
CAMBODIA
Nagacorp shines in gloomy Asian casino market On an overcast morning in Cambodia’s capital, Phnom Penh, the country’s flagship casino looks less familiar than it did a year ago as construction obscures the entire front entrance.
Asia Gaming Briefings | November 2015
N
agaWorld, which began as a boat
Asian junkets, which are seeking to diversify
moored on the Mekong River 20
operations outside Macau.
years ago, is undergoing a major
In July, the company said it reached an accord
revamp, which is expected to help
with Jimei International to operate at least
accelerate growth at one of the brightest spots
seven gaming tables, while it also has a more
in Asia’s casino industry.
casual arrangement with Sun City Group.
In the nine months to end-September, Hong
“The group offers better commercial terms
Kong-listed NagaCorp posted a 47 percent
to junket operators and agents as a result of
increase in gross gaming revenue to $399.8
NagaWorld’s low cost structure,” NagaCorp
million, according to preliminary results.
said in a recent filing to the stock exchange.
VIP revenue was up 52 percent, while mass
The contribution from the junkets was already
revenue gained 43 percent.
evident in Q3 results, analysts say, though
For Q3, GGR was up 58 percent to $144.4
they add that going forward the terms paid
million, boosted by an almost doubling in
may not be so generous.
VIP numbers, though mass revenue was
“Overseas junkets continued to contribute
also strong.
more than 70 percent of total volumes. The
“We expect momentum to continue as new
company plans to scale down its revenue
initiatives bear fruit,” analysts at Morgan
sharing with junkets to 70 percent (max) in
Stanley said in a note commenting on the
early 2016 and this could improve margins,”
results. The firm has an overweight rating
Morgan Stanley’s note said.
on the stock.
Compared to other operators - such as Genting
NagaCorp says it’s seeing strong growth from
Malaysia - who have a long track record in
Vietnam, China and South Korea and hopes
attracting Chinese customers, NagaCorp is
to capitalize on the downturn in Macau to
still in the early days, says Union Gaming
further penetrate the Chinese market. It has
analyst Grant Govertsen.
been pushing to improve ties with North
“That said, [Naga] are clearly showing positive
INDOCHINA 25 their VIP clients, who gamble much less than the typical Macau VIPs, are just upper-middle class people who are not the target of China’s anti-graft campaign,” said Nomura. NagaWorld has a monopoly in the Cambodian capital, which means no casino can operate within a 200 kilometer radius for at least another 20 years. As a result, for many
NAGACORP Nagacorp GGR to end-Sept. $399.8 million
+47%
H1 tax revenue $12 million
+20%
gamblers it’s the only casino in the country worth gambling in. The picture is changing, but the alternatives are mostly ramshackle operations along border towns that offer limited entertainment and accommodation and are difficult to access. Tourism arrivals rose by 5 percent to just over 3 million in the first eight months of this year, with Vietnam making up 20.8 percent of the total, China 15.2 percent, Korea 9.2 percent and Laos 7.4 percent. As of the first six months of the year, NagaWorld had 262 gaming tables and 1,600 Electronic Gaming Machines. In May this year, the company
The Cambodian government has granted 10 new casino licenses in the third quarter of this year, raising their number in Cambodia to 75. Ros Phearun, a deputy director general of the financial industry department at the Ministry of Economy and Finance, says most of the 10 new casinos are in the coastal resort of Sihanoukville.
reached an accord with investors to place up to 300 gaming machines in NagaWorld, for growth as it relates to Chinese customers,
which it received a $40 million fee.
which is a rarity these days relative to places
Unlike operators in Macau, which are trying
like Macau, Singapore, and Korea.”
to diversify their business mix to offer more
“Without exception, Naga has been the
non-gaming facilities to attract mass market
one Asian gaming story that continues to
customers, Naga’s gaming and non-gaming
generate strong earnings growth while many
revenue mix has not changed significantly,
other regional gaming markets are mired in
said Govertsen.
decline or limited growth,” Govertsen said
“Although I suspect you’ll see a larger shift once
in a recent note.
NagaCity Walk and Naga2 open (with notably
However, despite the headline focus on the
more non-gaming revenue than before).”
China VIP, analysts point out that the bulk
Non-gaming revenue decreased by 6.1 percent
of Naga’s growth story is from South East
to $10.0 million, in the first half “mainly due
Asia, from IndoChina and also from at home,
to the increase in number of rooms sold to
where strong foreign investment is leading to
junket operators at a lower room rate, and
a growing expat community.
the temporary loss of rental income from five
Michael Ting, an analyst at CIMB said one of
existing luxury boutiques as a result of the
NagaCorp’s strengths is that it does not need to
temporary closure of the hotel main lobby area
rely on Chinese tourists, as a lot of its revenue
for NagaCity Walk’s construction.”
growth is driven by VIPs in Asean. Naga’s VIP
The group is spending $369 million on
is also more akin to Macau’s premium mass
expanding the resort, with the addition of
clients, who have been less affected by China’s
so-called Naga2, which will double capacity.
anti-corruption drive.
The second phase has a total built up area of
China VIPs are estimated at about 20-30 percent
about 110,105 square metres, which includes
of total revenue, with Malaysians seen at about
the NagaCity Walk, which will include luxury
49 percent and 10 percent from Singapore.
retail and public space.
“Also Naga is coming off of a low base for
The TSCLK Complex will feature about 1,000
VIP so the numbers look good,” Ting said in
hotel rooms, 38 luxury suites, a multi-
an email.
purpose entertainment theatre and additional
Brokerage firm Nomura cited NagaCorp’s
gaming space of up to 300 more tables and
management as indicating that more than
500 electronic gaming machines, according
60 percent of the casino’s customers are
to the company’s Web site.
Cambodians holding foreign passports.
The company said the expansion will position
“Management is not concerned about mainland
the Group as the leading integrated gaming
China’s anti-corruption campaign. It believes
and entertainment destination in Indochina. l
Donaco International announced that its VIP rolling chip turnover at Star Vegas Resort and Club casino in Poipet, Cambodia, grew 43 percent in the September quarter to approximately A$1.30 billion ($941.7 million) compared to the same period last year.
Asia Gaming Briefings | November 2015
INDOCHINA 26
Y14 DONACO REVENUE GGR Y14 $61.3m (Source: IISD)
Aristo International FY15 normalized GGR $68.4m
+21%
Total net revenue $30.8m
+51%
Casino visitors 90,663
+28%
VISITATION
VIETNAM
Tourist arrivals to end-Sept. 5.69m
If foreign investment in Vietnam’s casino sector were to increase by $3 billion from current levels, the country’s Gross Domestic Product would rise by 0.58 percent in the first year, according to a major study looking at the potential of the gaming industry.
Michael Kelly has been appointed executive chairman of Asian Coast Development Limited and its asset company, Ho Tram Project Company Limited, taking the reins of one of Vietnam’s biggest casino projects.
Casinos would boost GDP
T
he research was done by The Institute
of gambling and bonus game in large resorts
of Regional Sustainable Development
where are far away from populated urban
(IRSD) under the Vietnam Academy of
areas. These places should have the security
-5.9%
“The Aristo International Hotel in Vietnam is also back on track in recent months, after a difficult first year. Record levels of visitation and strong turnover figures give us confidence in the performance of this flagship business for the coming year,” Donaco International managing director and CEO Joey Lim says.
Social Science (VASS) and presented
system and manage players more strictly. Also
at the end of September. It looked at both
they need to have training programs for staff
the legal and illegal business in the country.
and work with local authority to prevent all
“This is the most complete research project
negative impacts,” the report recommends.
ever on the gaming industry in Vietnam,
The government has reportedly been considering
providing a scientific basis for the government
framework legislation for some time now, but
to consider suitable policies,” Nguyen Quang
there is no clarity on when a final bill may be
Thuan, vice president of VASS, said at the
implemented. While there has been frequent
release seminar.
speculation about major foreign investment in
Vietnam today has 64 lottery companies,
the country, as yet none of the bigger casino
8 casinos, 2 places for sport betting and 43
operators have announced any concrete plans.
centers of bonus electronic games. All of them
According to statistics released by The Institute
are restricted to foreigners only.
for Regional Sustainable Development, Vietnam’s
as well as spur Vietnamese to visit casinos in
The study recommended the government
eight casinos posted a combined revenue of
neighbouring Cambodia.
implement a comprehensive legal framework
VND1.379 trillion (US$61.3 million) last year
The Ministry of Public Security reported a
for gambling that would help to maximize
and paid VND339 billion in taxes last year.
total of 200 bookies for So De -- an illegal
the potential benefits, which include extra
Vietnam now also has 64 lottery companies
numbers game based on the state lottery --
budget revenue, more tourism attractions
and two sports facilities allowing gambling.
in 18 cities and provinces. The game earned
and increased employment, while at the same
Lottery companies paid VND20 trillion in taxes
at least VND500 million every day.
time mitigating potential social ills.
after earning a total of VND64 trillion ($2.85
A survey conducted in Tay Ninh Province showed
“In order to build up a legal framework as
million) in 2014.
that about 200 people crossed the Cambodian
above, the project proposed that Vietnamese
However, the lack of facilities to locals is
border every day to gamble, with that number
players would be allowed to join in some types
helping to drive a huge underground market,
rising to 700-800 on weekends. l
Asia Gaming Briefings | November 2015
SOUTH ASIA 27
GROSS GAMING REVENUE
INDIA
Pushing for clarity on Maharashtra casino act Sayta has alleged that the Executive arm of the
With a huge and rapidly expanding middle class, the potential for casino companies in India knows no limit - apart that is from a lack of a legal framework.
DELTA 2Q GAMING OPERATIONS REVENUE INR 8,481.29 IN LACS VS. INR 7,162.29
government usurped the power of the Legislative by not implementing the law, saying it amounts to a “constitutional fraud.” That was a term coined in 1986 by the Supreme Court in Dr. DC Wadhwa v. State of Bihar in the matter pertaining to repromulgation of ordinances by the executive without legislative approval. “Using this judgment we are stating that nonimplementation of the will of the people as
The North-Eastern state of Arunachal Pradesh has become the latest jurisdiction to restart lottery schemes and has permitted distributors to market various lottery schemes with effect from September 2015.
reflected by the laws passed by the legislative
G
assembly of the state is also a constitutional
Delta says the launch of its casino in Daman is expected to substantially boost both revenue and visitors, resulting in better margins at the property. The hotel opened in March 2014.
ambling is banned in all but three
fraud,” he said.
states, but even then, the situation is
He adds he turned to the High Court rather than
not clear cut.
going directly to the Supreme Court as the higher
High Courts in various states have
body doesn’t generally entertain petitions directly
passed verdicts that appear to offer a glimmer
and is hesitant to exercise its original jurisdiction,
of hope that gambling will one day be permitted,
unless the petition has an impact on Centre-State
starting with games of skill. For example, the
relations or is a grave national issue.
Madras and Andhra Pradesh High Courts have
“Citizens are normally expected to approach the
ruled that rummy was legal as it was a game of
High Court first for constitutional remedies, and
skill, as opposed to a game of chance. The West
therefore I filed my PIL in the High Court and not
Bengal and Karnataka High Courts have also ruled
Supreme Court. Having said that, I have not ruled
health of the Maharashtra government is not very
favourably in cases related to poker.
out the option of appealing to the Supreme Court
good at present, and revenues from gaming and
However a young lawyer has been making waves
in case I am not satisfied with the final order of
casinos can be used to fund various schemes (that
with his attempts to force more clarity on the
the Bombay High Court.”
the government has not been able to implement
legal situation in Maharashtra, the third-most
The stakes may be high. Although figures are
properly due to lack of funds).”
populous state whose capital Mumbai is the
hard to come by, a report from KPMG estimates
Although gambling is popular in India, there are
commercial heart of India and one of the biggest
that about $60 billion may have been gambled
also conservative elements of society opposed
cities in the world.
in the country in 2010. That compares with the
to legalizing casinos, which are only allowed
Law graduate Jay Sayta, 23, unearthed 48-year-
$44 billion in gross gambling revenue reported
at present in Goa, Daman and Sikkim. Goa’s
old legislation when still a law student that shows
in Macau in 2014.
casinos are situated on offshore boats, while a
the state government passed an Act legalizing
Sayta says any move by Maharashtra to legalize
casino planned in a new luxury five-star property
casinos. That Act was never implemented and
gambling would have significant benefits for
owned by Delta Group in Daman is still in limbo.
he wants to know why.
the state economy, would help control crime,
“I do not know the reasons why the government
He filed a Public Interest Litigation in the Bombay
and may create a ripple effect across the rest of
has refrained from implementing the law,” Sayta
High Court aiming to force the government to
the country.
said referring to the mothballed Maharashtra act.
clarify why it has not enacted the law. In response
“There is potential for thousands of crores of
“From the government files examined by me, it
to his prodding the court subsequently ordered
revenues by way of taxes on casinos if the law is
seems that the government has simply left the
the government to clarify its position.
implemented. Further, currently, a lot of black
Act in cold storage and not once thought about
Sayta spoke to AGB about his PIL and the wider
money is generated through gambling and
implementing it. However, I am still waiting for
implications.
betting and this is used by terror organizations
an explanation from the government in response
He said the Bombay High Court has now on two
to fund their illegal activities. A Supreme Court
to my PIL. Once they respond to the points raised
occasions asked the government to explain its
appointed Special Investigation Team (SIT) has
in my petition, there would be more clarity on
stance, which he sees as a validation of his PIL.
also said that gambling and betting is a major
the reasons for non-implementation of the law.
“We are not pressing the court to compel the
source of black money in the country. Therefore
“I think in the interest of national security and due
Maharashtra government to notify and implement
legalizing gambling will not only reduce the source
to the obvious economic benefits of implementing
the Casinos Act, but have merely asked them
of revenue of the underworld but in my opinion
the Act, the state government should take a
to make their stand clear one way or the other,
is also a national security concern,” he said.
reasoned decision at the earliest. It is the job
since they cannot keep a law duly passed by the
“Casinos can also help promote Maharashtra
of the state government to get all stakeholders
legislature in abeyance for an unreasonably long
as a favoured tourism destination and provide
on board and convince them about the positive
period of four decades,” he said.
employment to thousands of citizens. The fiscal
effects of implementing this law,” he said. l
Asia Gaming Briefings | November 2015
2016 PREDICTIONS 28
The end of the IR “arms race” 1. David Green*
An end to the IR “arms race”. While the “build
participating in credit-based rolling chip programs will
it and they will come” mantra has generally
continue to decline, at least until such time as confidence
served the i ndustry well, the declining
in the integrity, and sustainability of VIP operations is
investment yields associated with ever more ambitious
restored. I expect that VIP play will account for no more
and expensive projects in markets with either declining
than 45 percent of gross gaming revenue across 2016.
gross gaming revenue, or an unproven market potential,
but it needs a re-appraisal, especially in sophisticated
3.
prospective markets such as Japan, which will likely be
leading gaming companies raises questions about
unwilling to embrace massive investment if the trade
governance, organizational renewal and the ability of
off is commensurately large scale gaming.
such organizations to change. Success has diverted
suggest that investors may be less willing to support outlays matching or above those to which we have become accustomed. The IR model is far from broken,
* David Green is a principal at Newpage Consulting, experts in gambling regulation. The company advises in the three key areas of regulatory frameworks, market analysis, and taxation regimes.
2.
Succession questions likely to exercise the minds of industry stakeholders. The tenure, influence and age demographic of those
occupying the big offices in many of the world’s
attention from these issues…why be concerned about The continuing rise of the mass market in
“best practice” when the gravy train rolls on? However,
Macau. The exposure of the inherent fragility
as investment yields moderate and new market
of the Macau junket business model will likely
opportunities become less attractive, expect this to
cause a re-orientation of properties towards the mass
become a focus for shareholders, financiers, gaming
market. The share of gaming revenue attributable to those
and securities regulators and host governments alike. l
Asia Gaming Briefings | November 2015
2016 PREDICTIONS 29
Global Market Advisors’ Predictions for 2016 the gaming floor.
only sales on their hotel rooms to their databases
The pain in Macau is far from over, but the strong will survive
Ever wonder why every successful high limit
of customers. These pricing tactics are often
slot room still has the old IGT S2000 stepper
employed to keep heads in beds with the hope
slot machines and other forms of old-school
that they will equate to butts in casino chairs.
With the number of properties opening up on
mechanical reels? It is because customers believe
the Cotai Strip from now through the end of
they can trust them and know that they hold less
2016, and the expectation that the VIP segment
than new multi-line video reel machines with
will continue to struggle due to PRC policies
bonus rounds.
Steve Gallaway*
and an overall contraction in China’s economy, sufficient demand will not be there to support additions to supply (a basic concept taught to every student in an Economics 101 class). While various Wall Street and Hong Kong analysts have correctly estimated 2016 gaming revenues (at least as much as possible when trying to project revenues based on a political policy rather than market demand), large contractions in EBITDA margins are to be expected. Operators now have much larger properties to feed in a market whose gaming revenues will at best be flat. The situation in 2016 will be analogous to the situation MGM faced when it opened City Center in the midst of the Great Recession. Put simply, 2016 is going to be a rough year for Cotai 2.0. On the upside, this is not the first time Macau
The importance of gaming in emerging Asian markets will continue
operators continue to find ways to cut costs, such as fewer amenities in hotel rooms, a reduction in labor at hotel registration and the casino cage, and staff reductions elsewhere throughout their resorts. While customer satisfaction levels may see declines, operators will do what is necessary to weather the storm.
Skill-based games will go the way of Odyssey game cabinets, slot machines bolted to treadmills, and other novelties This year the gaming industry was abuzz with the introduction of skill-based games that supposedly enhance the slot machine experience. For example, a multi-line video game may offer a bonus round where the player must grab a joystick and play a round of Space Invaders in order to win a bonus. While a portion of slot players may try their luck (and skill) on these types of games, they will soon discover that getting to the bonus round will take 30 to 100 handle pulls, and once they
One of the most popular topics among casino marketers in 2015 was how to get millennials into the casino and make them loyal casino patrons. Millennials, or Generation Y, are loosely defined as those people who were born from the early
While China’s recession will impact everyone,
1980’s to 2000. The oldest of this generation
casino-resort development opportunities in other
are now approaching 35. What the industry will
Asian countries such as Cambodia, Vietnam and
discover, as it continues to re-tool its mix of
Laos will continue to grow. As these countries’
gaming products to appeal to this generation, is
economies grow and political environments
that millennials still lack the two most essential
stabilize, they will become increasingly attractive
elements needed to be casino patrons: time and
to casino-resort developers. Given the hyper
money. The oldest of this generation are trying
interest in South Korea and Japan, smaller
to pay off mortgages, put kids through school,
emerging markets will become that much more
and build a nest egg. The younger ones are still
attractive. The key for developers will be to build
spending whatever they make on cars, clothes,
casino-resort properties that are attractive but
apartments, electronic devices and whatever it
whose business models do not rely too heavily
takes to attract members of the opposite sex (or
on junkets from China.
same sex if that is their preference). In fifteen years, this generation will eventually
operators have had to deal with an unexpected and significant downturn. As such, we will likely see
Enough of this talk about Millennials
age to the point where their kids are out of the
Andrew Klebanow**
house, the house is paid for, they have some
The days of 70 percent of revenue from junkets is behind us
money in the bank, and they have some extra
The more astute casino operators had long
going to happen anytime soon. While it is
realized they were far too dependent on junkets
important to focus on this generation for the
for the lion’s share of their revenue and EBITDA
long term, the people who will always pay the
performance. While a dollar earned from a junket
bills in the gaming industry will continue to be
customer contributed less to EBITDA than a
over the age of 50. Enough talk then about how
dollar won from a Premium Mass player, the
to attract millennials. Let’s just focus on how to
total volume from junkets was just too great and
attract people with time and money. l
time on their hands. Casino gaming will then become a source of recreation, but that is not
operators had to cater to that segment. Casino operators knew they were vulnerable if that part of the business contracted; now that reality has settled in and they are shifting their focus to other markets that may be less volatile. This includes new efforts by casino marketing departments on attracting mass market players and shifting table game allocation from junket rooms to the main gaming floor. Notwithstanding, if the junket business does come back, operators will gladly re-assign tables back to junkets.
* Steven Gallaway is managing partner at Global Market Advisors ** Andrew Klebanow is a partner at Global Market Advisors and an AGB Advisor Global Market Advisors (GMA) is one of the world’s leading consulting firms serving the casino gaming, hospitality and airline industries. The firm is well-regarded for its independence and
result is that they will become discouraged, walk
Macau casinos will employ pricing tactics with greater frequency
away and go back to their preferred game titles.
As the supply of hotel rooms on the Cotai Strip
Casino operators may put these games on the
increases in the next twelve months, expect
private equity funds, and commercial operators alike. GMA is
floor on a trial basis but they will never dominate
existing operators to offer more limited-time
get there, they will have become rusty from the last time they played the bonus round. The end
quality of thought-leadership. GMA’s feasibility reports for the casino gaming industry have received accolades from banks, highly experienced in the markets of Asia, the U.S. and Europe.
Asia Gaming Briefings | November 2015
2016 PREDICTIONS 30
“New Start for Macau” With a whirlwind 2015 coming to an end and holidays soon upon us, it is time to think about what is next. When the editors asked me for my predictions, they know I don’t possess a crystal ball so I was asked to write this as if somebody asked for my opinion in the pub. They must know me well. Macau will continue the race to reinvent. John English*
A
fter a tumultuous year this becomes a simple
always need for VIP players and high rollers - that’s
prediction as we witnessed gaming revenues
what makes the casino dream exciting, the goal is to
come to a rapid slowdown and the collapse
become less dependent on that market and become
of most of the VIP junket market. So what’s
widely diversified. I see first hand that Macau is doing
next for Macau in 2016? I think it’s going to be another
that and is answering the call.
roller coaster year for Macau and I’m not referring to
For the premium players Macau offers an experience
* John English is President
the stocks, I’ll leave that to the analysts. As most are
that cant be rivaled anywhere in the region and provides
of WEBE Worldwide, a global
aware, there is a lot of frustration echoing throughout
world class gaming and luxury options so they will
gaming, management,
the region and with an unsure and unstable future
continue to come. The population of Southern China still
there is still a massive amount of new properties yet
prefers Macau to other gaming-oriented territories and
to open in Macau. Recent actions with regard to ever-
the visitor count is high enough to creatively monetize
important table allotments, government restrictions and
the mass market players utilizing electronic gaming
a slow decision-making process are driving operators to
alternatives. Some of the world’s greatest marketing
consider a different business mentality, a reinvention.
experts reside in Macau and there is already a major
The opening of the amazing Macau Studio City and
casino effort in play to engage the mass market across
its very diverse features, such as a world class movie
China and surrounding regions to embrace the total
studio and Galaxy Entertainment with its gargantuan
resort experience while still having their gaming
than 28 years. His emphasis
destination resort, are testament to the diverse change
desires met. We will see a “New Start for Macau” that
is on technology, content, and
that’s coming to Macau. Over time sights will be turned
will find its way to a settling point just like Las Vegas is
distribution, as well as public
toward over the top entertainment such as concerts
currently experiencing. The Cotai Strip will have several
relations, government affairs,
and shows, expensive resorts experiences, nightclubs,
new billion dollar plus resorts opening including Wynn
retail shopping and fine dining, creating a reason to
Palace and the Parisian, and on the Macau side there is
stay have fun and play longer. Macau cannot exist
a complete renovation underway at Fisherman’s Wharf
without gambling neither can Las Vegas and there is
including a yacht harbor and a six-star hotel offering
consulting, and operations firm with offices in the US and China specializing in the sports betting, social gaming, and casino industries. John is a serial entrepreneur and veteran Gaming Executive for more
and operational expertise. John is an AGB Advisor.
Asia Gaming Briefings | November 2015
2016 PREDICTIONS 31
lots of new and exciting things to draw both
seems a change is finally on the way. There
year has allowed for several jurisdictions to
local and tourist visitation.
was a huge uprising this year in daily fantasy
approve skill gaming for real money play.
I don’t believe that the Government would want
sports, which had enjoyed an exemption from
This will have huge appeal to the boomers
something with such global exposure to fail,
the law as a game of skill and quickly raked
and the millennials as the titles start to roll
nor do the incredibly invested operators, so I
in millions of entrant fees and caught the eye
out; I know I was thrilled to play Pong and
have a positive outlook on Macau’s future and I
of the US Department of Justice. The state
other classic titles. All the major companies
see 2016 as a good start to a year of cooperation
of Nevada has since deemed that it is in fact
are buying in and buzzwords like eSports are
for a speedy recovery.
gambling and other states are following suit fast
now commonplace in the industry. Two big
with the same determination, requiring daily
gaming states, Nevada and New Jersey, are
Regulated Sports Betting will be Worldwide
fantasy sports operators to obtain a gambling
early adopters in the US and it has become
center stage
license to operate. These companies may have
a fast moving craze in countries around the
We are going to see a lot of movement in global
to cease doing business entirely, merge with
world. This means manufacturers are licensing
sports betting. With two massive mergers
existing licensed operators, or obtain their own
classic and hit titles like crazy and developers
being announced this year, for sure 2016 is
licensing to continue operations. All of this
are converting old games into money games.
going to bring sports betting to the center
recent activity has again opened the door for
Operators and patrons are responding to
stage. Powerhouse companies like Betfair
a 2016 regulation review with regard to legal
this new wave of gaming with applause and
and Paddy Power coming together, and Gala
sports betting. With that being said, I see that
although just getting started it’s going to be a
Coral and Ladbrokes joining forces, its going
there will be a bigger push than ever before to
nice addition for 2016. Look to see everything
to make things super interesting in both the
completely overhaul the Professional Amateur
from golf games, basketball, video games,
online and land-based sectors, and they will
Protection Act (PASPA) and regulate sports
pinball machines, first person shooter, and
be key companies to watch as these companies
betting in the United States in the jurisdictions
so many other thing. The draw for this type
truly span the globe, including some interests
that want it. I have predicted this for many
of product is so great it was the hot topic at
in North America.
years as it is a law that is outdated and does not
almost every booth at the Global Gaming Expo
Government approved lottery companies
work to serve or protect the people. However,
and there was a recent eSports competition
in Mainland China are now allowed to offer
the daily fantasy sports craze and massive
that was so big it had to be held at Madison
mobile sports lottery sales and I expect to
amounts of illegal bookmaking clearly shows
Square Garden.
see large growth in that sector next year as
that the demand for sports wagering is alive
The technology and hardware involved with this
the government looks to fund thousands of
and well across all of America, prohibition has
type of gaming will be an integral part of the
new football camps.
not proven successful in curbing the hundreds
experience, so look to see things like, virtual
In the United States, wagering on sports legally
of billions of dollars that are bet on sports
reality headsets, augmented reality software,
is limited by federal law to the state of Nevada.
illegally each year.
specialized motion seating, joysticks, sensors,
Long time battlers like New Jersey are fighting
pods, and a plethora of immersive technologies.
harder than ever to have it legal in their state,
A new generation of games and gamers
I don’t see it taking over the entire casino
lawmakers that were once opposed to sports
Finally some fun stuff has been injected back
floor anytime soon, but it will definitely have
betting have since changed their minds,
into the land-based gaming industry! This
its place in 2016 and I for one cannot wait! l
Asia Gaming Briefings | November 2015
2016 PREDICTIONS 32
The “golden” gap for emerging jurisdictions I have been asked to give my predictions for 2016 with respect to the gaming industry. I was told that one should cover Macau and the other two could address regional or even international trends. Luis Mesquita de Melo*
This request comes at a time when the last thing anyone
VIP market model which has been based on the junket
wants to do is to make predictions on the gaming industry.
model for too long.
In fact, so much has happened recently that I would
Last, but not least, the entire credibility of the gaming
venture to say that my prediction is that there should
industry – but especially the VIP market - has been affected
be no predictions for the gaming industry.
by a regulator without teeth and a legal framework that
I entertain myself by looking at analysts’ predictions,
has not addressed important changes in the industry
on a weekly, if not daily, basis and how they juggle
and is clearly outdated.
contradictory facts, off the target numbers, excuses and underlying strange market phenomena. They try to find explanations from the weirdest circumstances just to keep selling their predictions as if they were the last form of hope.
2.
The “golden” gap for the emerging jurisdictions. Since the focus has been Macau – as the biggest gaming jurisdiction in the world by numbers and
also because of the high profile of the industry players
The truth is no one wants to admit that the gaming
– with the contribution of very concerned media that
industry is going through very material changes that
have highlighted, continuously, all the bad things about
render predictions almost impossible and will transform
the industry, I believe that the Asian emerging gaming
the key elements of a business model forever.
jurisdictions (and especially the ones that are able to do
Having said this, and apologizing in anticipation for
right with respect to their regulatory regime) will benefit,
the high probability of failing my predictions by a long
for a limited period of time, from the decline of gaming
shot, here we go:
revenue and the market reshape in Macau. They will
1.
somehow improve their numbers and regional exposure
The foundering of the VIP market as we know it.
and that will attract players trying to get away from the
Despite the fact that most analysts still predict a
spotlights in Macau.
recovery in the VIP segment – although, as they
China is actively and in a very determined way fighting
3.
against any illegal flow of funds. The Macau Government
money with them to the casino), added to the fact gaming
has put further nails into the coffin by insisting on some
interest demographics are changing very quickly, I
absurd decisions, or coming up with new, not less absurd,
believe that interactive gaming, social media and more
Coast Development Ltd. Prior
measures that not only lack opportunity and timing but
technologically advanced gaming products, where physical
to that he held similar roles in
are very short of long-term objectives in preserving the
presence is not a requirement, will gain a new life. We
NagaCorp and Venetian Macao.
Macau economy’s “bread and butter”: Gaming.
should also note that all these new gaming products still
Luis is an an expert legal advisor
Then junkets have not helped by becoming the subject of
find their way, more easily, around regulatory constraints
news that showed how relaxed and fragile their internal
and jurisdictional oversight and, where there is no geo-
controls are, which affects the credibility of the entire
blocking, become very attractive and easy to access. l
like to underline, “not a V shaped recovery” – I don’t see how the VIP segment will ever recover, even to a small percentage of what it was a few years ago.
* Luis Mesquita de Melo is the Chief Legal Officer of Asian
and a member of the IMGL.
Asia Gaming Briefings | November 2015
A new opportunity for social media and online gaming solutions. As the land-based casinos struggle with players’ accessibility and the
mobility of funds (especially when it comes to bringing
iGaming Asia Congress 21-23 M arch 2 01 6 • M a ca u
LEADING IGAMING EVENT FOR THE ASIAN INDUSTRY iGaming Asia Congress conference and exhibition is taking place between 21– 23 March and will attract over 250+ of Asia’s leading sports betting, online casino, lottery, social and mobile gaming executives to learn about the latest developments in industry, incoming regulations and disruptions, and strategies to stay ahead of the curve in Asia. It is a must attend industry event for all iGaming operators in Asia and the world.
w w w. i g a m i n g a s i a c o n g r e s s . c o m
SPECIAL REPORT 34
Optimizing the cash cycle In July 2015 AGB was invited to visit Giesecke and Devrient (G&D)’s paper plant in Louisenthal, Germany, to witness their state-of-the-art processes for banknote production, printing and cash management. The visit was followed by a number of presentations by senior G&D executives at their headquarters in Munich which highlighted advancements in cash printing, security and management that ensure it continues to be a modern and convenient payment form. Banknotes are still the most used means of payment worldwide - and the only means available to many people in the world.
W
hat makes G&D a leader in the field
Banknotes meet Industry 4.0
is its passion for banknotes. Since its
At any one time there are 460 billion banknotes in
foundation, the company has strived
circulation, and this number is growing at 5 percent per
to develop designs that meet not only
year. The average lifecycle of a 5 Euro note is less than
aesthetic demands but that also revolutionize banknote
one year. It is the process of authentication, counting,
security. Its holistic, forward-thinking approach to
sorting, fitness sorting and serial number reading that
banknote production ensures continuous innovation
banknote processing systems aim to optimize. Any
across the entire value chain which encompasses
reduction in the cost of people and error rates, together
design, raw material preparation, production, security
with an increase in security as well as improved speeds
features, and finishing.
and volume management is attractive to large cash
G&D draws on its knowledge of the cash cycle to provide
handling institutions such as casinos.
efficient and secure banknote processing to commercial
The key requirements for any cash handling institution
banks, cash-in-transit companies, and casinos. The goal
are to know where the cash is, optimize stock levels,
is optimization of processing, tracking and conclusions
combat counterfeiting and manage banknote fitness
for the cash cycle. Improved sorting, packaging and error
- elements which are provided by G&D’s cash center
reduction is achieved through advanced automation.
automation.
Asia Gaming Briefings | November 2015
SPECIAL REPORT 35 Large resort casinos usually take in various
About G&D
From cotton to counterfeit-proof
currencies at each of their operations.
The company was founded in 1852 in Leipzig,
high-tech paper
Traditionally these receipts used to be processed
Germany, and currently counts 11,453 employees
On May 5, 1964 G&D took over Louisenthal in
at different in-house locations, involving the
worldwide, with 4,0632 in Germany and the
1964, the company employed around 170 people.
typical downsides of manual handling, moving
rest abroad. Its total earnings in 2014 were
Today, Louisenthal has about 1,000 employees,
boxes around, coordination, and wait times.
EUR 1.83 billion. G&D holds approximately
300 of whom are employed at the Königstein
With an innovative end-to-end solution,
7,250 patents around the world and spends
plant near Dresden and 700 of whom work in
banknotes are counted, identified and
around 120 million euros a year in research
Gmund, Lake Tegernsee.
authenticated, then sorted by denomination,
and development.
Louisenthal has invested around 300 million
series, orientation, and fitness for circulation
It’s key business units comprise the Banknote
euros in the modernization and expansion of
– all in a single run. Gaming tickets are
business unit, which includes the Banknote
paper and foil production at both its locations
processed in the same run. As an important
Solutions and Currency Management Solutions
over the past ten years.
extra, used player cards and table chips can
divisions, supports the complete cash cycle,
With the reunification of the German states in
be shredded if required.
from banknote substrate production, banknote
1990, demand for paper increased dramatically
The system produces customized, intelligent
design, and banknote printing to secure
and in 1967, Louisenthal became the sole supplier
reports which management and accounting can
processing.
of German banknote paper. For the first time
access at any given time, since cash processing
G&D supplies customers such as central and
ever, the third-generation German Mark was
is integrated with the casino’s back-office
commercial banks, banknote print works, and
produced with the well-known window thread.
systems. To check on the progress of cash
casinos over 150 countries around the world
In 1999, Louisenthal began investing in foil
operations, managers and supervisors just
with its portfolio consisting of banknote
production and commissioned its foil plant
need to log in to the server from wherever
security solutions, substrates, printing and
in 2003. 2005 saw Louisenthal produce the
they are.
processing systems, as well as managed
Bulgarian 20 Lev note, the first to incorporate
The integrated solution is rounded off by
services, and lifecycle services.
the varifeye® see-through window. Louisenthal
customized process design and count room layout
The Mobile Security business unit provides
is now one of the world’s technology leaders
since even the most powerful equipment can
security products and solutions for mobile
in foil-based security elements.
only achieve optimal results when combined
applications in an interconnected society,
The ever-improving quality of counterfeit notes
with smooth and efficient workflows.
while the Government Solutions business
has led G&D and Louisenthal to develop more
Through cash optimization, advanced
unit covers all security-relevant products
sophisticated safety features for printing and
automation solutions, use of Big Data and
and solutions for governments and public
paper, such as optically variable effects, the
managed services, G&D aims to stay at the
authorities, such as passport systems, visa
“banknote window” varifeye Magic®, and the
forefront of the banknote industry.
systems, ID systems, etc.
“RollingStar” security thread. l
Asia Gaming Briefings | November 2015
AUSTRALASIA 36
AUSTRALIA
Government takes aim at online gambling The Australian government has said it will launch a review of the country’s online gambling act, which is expected to look at live-sports betting, the regulation of offshore gambling operations and the regulatory changes required as a result of technological advancements within the industry.
Asia Gaming Briefings | November 2015
A
t present, the Interactive Gambling
and the ever-changing habits of customers.
Act 2001 prohibits the provision and
Edward Beesley, a former Ladbrokes commercial
advertising of online gambling to
development manager and now founder of
Australian residents and prohibits
TSoK consultancy, an international strategy
“in-play” betting for live sporting and racing
consultant in Australia, hopes the review is
events online.
more “wide ranging” and looks forward to
Regulation of gambling in Australia primarily
what might happen in the next two decades
rests with State and Territory governments,
within the sector.
but with many critics labeling Australia’s
“They need to not just look at now, but look
2001 Interactive Gambling Act outdated, the
ahead across the whole industry and try
review aims to develop a “national approach
and predict the trends for the next 15 to 20
to gambling policy ... in a cohesive and
years,” he said.
consultative way.”
England-born Beesley points to the rapid
Part of the pressure for the review has come
developments in the last two decades in his
from the country’s racing industry on concern
home country and around the world as an
over future funding for the sport, due to
example, with the emphasis shifting from
revenue lost to illegal offshore gambling.
retail to online, and from horse racing to
The review was welcomed by the industry,
sports betting and gaming machines.
however, one international expert stressed the
“The landscape changed so quickly in that
need for a long-term view to ensure any new
time – and it will continue to evolve with the
legislation stays up to date with technology
rise of new technologies and gaming options,”
AUSTRALASIA 37 he said. “For a start, you would expect that betting on horse racing will decline, betting on greyhound racing will decline as a younger generation comes through with other interests.” Beesley pointed to the growth of e-Sports as a betting product as an example of a type of pastime perhaps not covered sufficiently by existing legislation. “That’s the “in” product at the moment, all of a sudden we have a group of 18-25 year olds, that are interested in computer games and not interested in horse racing, as they might have been in the past,” he said. According figures figures compiled by the Queensland government for the 2013/2014 year, wagering on horse racing in Australia fell 2.4 percent, while sports betting surged 29 percent, making it by far the fastest growing area of the industry. The review will be led by former New South Wales Premier Barry O’Farrell and will consult representatives from the racing industry, professional sports, wagering organizations, state and territory governments and members of the public, with submissions being taken over the coming weeks and the review to report back on December 18. Australia’s peak horse racing body “Racing Australia” welcomed news of the review, with its chairman Peter McGauran also noting the transformation of the gaming industry needs to be taken into account. “The thoroughbred racing industry strongly supports the government’s action in the face of a rapidly changing and evolving online landscape,” McGauran said in a press release. McGauran said racing not only suffers revenue loss due to offshore wagering but that it is a threat to the sport’s integrity. “If left unchecked, racing authorities believe that the integrity of Australian racing and sports is at considerable risk,” McGauran continued, calling for accountability and transparency from outlaw operators. “Racing regulators must have access to all betting transaction information for integrity assurance purposes, wherever that betting takes place. Racing stewards and investigators must be able to follow an audit trail to ensure integrity. Moreover, the responsible gambling policies of governments, including those of protecting minors, matter nothing to illegal offshore bookmakers.” Racing Australia assesses the economic benefit of the racing industry to the national economy to be more than A$5 billion ($3.5 billion) and 132,000 jobs. Racing Australia will make a submission to the
inquiry with key objectives not only around revenue and integrity, but protections against problem gambling and guards against “the proliferation of online gambling,” including online casinos and poker. Tabcorp also warned of the risks of driving punters offshore. “The rise of unlicensed offshore betting on Australian racing and sport needs to be addressed. Unlicensed offshore operators are not regulated to Australian standards and that poses risks to consumers and the integrity of sport and racing. It also means revenue that would otherwise be returned to the Australian
TOTAL GAMBLING EXPENDITURE All gambling Y13/14 A$21.15b Sports betting $625.95m Racing $2.78b Total gaming (including pokies and lottery) $17.74b
going to unlicensed offshore operators,” it
Casinos $4.38b
said in a statement.
(Source: Queensland Treasury)
racing industry and governments is instead
There are around 30 operators running legal gambling sites in Australia, but the government claims almost 60 percent of the A$1.6 billion gambling industry is going offshore. Some authorized onshore companies have recently found themselves in hot water for trying to push the boundaries when it comes
+1.8% +29% -2.4% +1.7%
+6.5%
REAL GOVERNMENT REVENUE FROM TOTAL GAMING $5.15b CROWN RESORTS MAIN FLOOR GAMING OPS. +10% JULY - OCT.
to the ban on online “in play” betting and capture some of the market’s potential. British operators William Hill, Ladbrokes and Bet365 sparked controversy by releasing betting systems that allow live bets to be placed without a phone call by merely checking if the punter’s computer microphone is on. Ladbrokes has since withdrawn its service. The Australian Wagering Council says: “Permitting online inplay betting will ensure that Australian operators compete on a level playing field with more than 2300 offshore
The Shire of Broome in the north of Western Australia is considering a casino and has hired a consultant to look at the viability of a project in the remote area. A team of advisers from Paxon Group will work to establish the social, economic and heritage opportunities, and risks, of a casino.
illegal operators who already offer this product to Australian customers.” Beesley’s view on the 2001 act and specifically in-play betting laws was that Australia is being left behind. He said it was clear that punters are simply circumventing the current limitations by using Virtual Private Networks (VPNs) to bet with offshore operators on inplay options. “You don’t need to be a computer wiz kid to bet via a VPN,” he said, adding that the option to bet live is still available. “You can
Australian Football League clubs are turning their backs on betting sponsorships by signing up to the Victorian Responsible Gambling Foundation’s ‘Gambling’s Not a Game’ program. The program, which has gained significant political support, aims to remove betting advertising from AFL grounds.
still bet live, if you go into a TAB or speak over the phone. That is where the European bookmakers have pushed the boundaries and re-defined what making a phone call is.” The minister who announced the review, Scott Morrison, refused to state whether legislation would be changed before the next Australian federal election, which must happen before mid-January 2017, saying he would not “prejudge” the review. l
Asia Gaming Briefings | November 2015
AUSTRALASIA 38
VISITATION
NEW ZEALAND
Total gambling expenditure Y14 NZ$2.09b TAB racing and sports betting $311m
Falling revenue prompts review of gambling act New Zealand’s government is reviewing the gambling sector amidst concern about decreasing returns available to fund community projects.
A
s a start, New Zealand Internal
and what changes are needed to ensure that New
Affairs Minister Peter Dunne recently
Zealand’s gambling regulatory system remains
announced an amendment to the
sustainable and fit for purpose,” he said, adding
country’s gambling act, that includes
work is at an early stage.
increasing some gambling operator fees and
“I want to maintain a sustainable community
reviewing the minimum amount that gambling
funding stream delivered by trusted and reputable
trusts must return to the community from class
gambling operators; and I also want an Act that
4 gaming machines.
is flexible enough to meet the future challenges
Dunne said the government is concerned at the
ahead”, he said.
decline in gross proceeds from gaming machines
Dunne also announced that the Department will
over the past 10 years.
conduct a six-week public consultation on the
“Gambling proceeds provide a significant amount
amount that trusts must distribute to authorized
to community causes annually - $620 million
charitable purposes. The current minimum return
($418 million) in 2013/14, with 40 per cent or $250
to the community is 40 percent of gross gaming
million from pokies and 37 percent from lotteries.
machine proceeds, due to increase to 42 percent
Some of the decline is an inevitable consequence
by September 2018.
of the significant reduction in gaming machine
At present the New Zealand government is
numbers in the last ten years, but it is not the
carrying an annual gambling operating deficit
whole picture,” he said.
of $3.8 million as well as an accumulated deficit
Revenue from pokies declined 2.2 percent in 2014
of nearly $13 million. Fees have been unchanged
to $808 million, though proceeds still dwarfed
since 2008 and some fees will now increase from
returns from the country’s casinos, which reported
December this year to help plug the gap.
revenue of $509 million in the same year. When
New class 4 operator licenses (non-club societies)
adjusted for inflation, total gambling expenditure
will rise $3,616 to $15,795; annual compliance fee
in 2014 was down by almost 20 percent from the
(small club societies) goes from $378 to $295.50;
peak recorded in 2004 of $2.6 billion.
the daily monitoring fee per gaming machine rises
The Minister has asked Internal Affairs to report
$1.20 to $1.90; and a new venue license (non-
on the reasons for the decline and future forecasts
club societies) is up $904 to $2,567.
and impacts on community funding. Once this
Overall annual revenue from casino license
has been received, the Government will decide
fees will remain the same but Auckland and
early next year what further steps are required.
Queenstown SkyCity casinos will pay more and
“The Gambling Act has been in place for over 10
Hamilton, Christchurch and Dunedin casinos
years and it is time to assess what it has achieved
will pay less. l
Asia Gaming Briefings | November 2015
+0.09%
+5.6%
Lottery $463m
+7.2%
Casinos $509m
-2.1%
Gaming machines in pubs $808m
-2.2%
(Source: NZ Govt.)
SkyCity 21015 Normalized revenue $1b July revenue International business EBITDA
+8.7%
+11.5%
+35%
New Zealand’s Green Party is calling on the government to withdraw a concession granting SkyCity Entertainment extra pokie machines for its new Auckland resort due to claims it’s not doing enough to ensure responsible gambling. SKYCITY Entertainment’s New Zealand International Convention Centre (NZICC) project has received resource consent approval from the Auckland Council. “Our objective is to turn the first sod of the New Zealand International Convention Centre before Christmas,” says CEO Nigel Morrison.
AUSTRALASIA 39
PACIFIC ISLES
VISITATION
Best Sunshine aims for world’s most luxurious resort Best Sunshine International has detailed ambitious plans for its $7 billion project on the South Pacific Island of Saipan, saying it aims to build the most luxurious integrated resort in the world.
T
he Hong Kong-listed company, which
The positive traffic figures come despite a
last year won the island’s only casino
devastating typhoon that hit Saipan, forcing the
license, says the rooms will be about
closure of the airport in August to allow room
three times the size of those currently
for relief flights.
available on Saipan.
Visitor arrivals in that month slumped 30 percent
The first Phase of the project at the old Samoan
from the same time the previous year, against
Housing site in Garapan, will include a “huge
projections for a gain of 3 percent.
dragon” making its way down the ceiling of the
Meanwhile, ALTER City Group, which plans to
14-story building, designed by U.S. architect Paul
construct a casino hotel on Tinian, has proposed
Curtis Steelman. The smallest room in the Grand
a $500 million Aerobus transit system between
Mariana casino-hotel will be about 1,200 sq. ft.
Saipan and Tinian.
Phase II will be 10 times larger than the first
Tourism growth on Tinian, the smaller of the
phase at the Garapan site which comprises a
two islands, has reportedly been hampered by
total of about four hectares and will have about
a lack of transport infrastructure.
2,000 to 4,000 rooms.
At a presentation for the proposal, Aerobus
However, the company has yet to secure the
president Dennis Stallings said the system
land for the project and suitable plots on Saipan
would transport passengers between the two
are scarce. It said it will eye a mix of public and
islands in 25 minutes.
private land and will bid for a plot currently
“It will turn Saipan and Tinian into one island,”
leased by rival Mariana Resort & Spa. The land
he said.
is in Marpi, one of the most coveted areas on
Aerobus can accommodate at least 10,000
the island.
passengers per hour and can start with 1,000
As part of its plans, Best Sunshine intends to
passengers per hour, but the numbers can
build the world’s largest water park and state-of-
increase depending on the demand. l
CNMI visitor arrivals Aug 29,996 Arrivals Jan to July 410,423
-30%
+12%
Mariana Entertainment is planning on opening a second electronic gaming venue on Saipan. A consultant for Mariana Entertainment, which has been operating Club 88 at Saipan Ocean View Hotel in Garapan since July, said the company has its sights set on another venue though declined to give details. Samoa is eyeing a piece of the casino market pie, with the government calling for proposals for a 250-room hotel development in the territory to be constructed on the site of the old Rainmaker Hotel. The government wants a major hotel brand and there is an option to include space for a casino.
the-art shopping facilities, an art amphitheatre, convention space and restaurants. “We are searching everywhere, the entire island. We’ve made offers to other areas also. We didn’t concentrate only on Marpi,” CEO Mark Brown was cited as saying. “Because of the parcel of the land—where it is situated—the beauty of it. [It is] the one piece where you could put together an incredible resort. …Name another piece that big, that beautiful on the water. That doesn’t exist on the island, really.” Yan Shen, managing director of Best Sunshine’s parent company Imperial Pacific, told Hong Kong reporters that a temporary casino opened on the island has attracted more visitors than expected. He said the casino had averaged about 5,700 to 5,800 people a day since opening in July. The temporary casino is to allow the company to generate revenue while its larger resort is being built.
Asia Gaming Briefings | November 2015
SUPPLIER SPECIAL REPORT 40
MGS 2015
The future of gaming The Macao Gaming Show is the first large scale gaming and entertainment exhibition organized and run by Macao organizations. MGS will have a floor area of over 10,000 meters sq. Exhibitors and buyers eyeing the Asian market will be coming from all corners of the world. expect to find everything and anything gaming
Macao Tourism and Culture Summit 2015
related across the vast exhibition space.
The Macau gaming industry has reached a
The best gaming operators from around the globe
critical stage in its development plan: it’s ready
are now thriving in Macau. The gaming supply
to jump into phase two – and quickly.
chain is also one of the largest in the world.
The Macao Tourism and Culture Summit 2015
Being an Asian hub with 48 percent of the
with Gaming Topics will be stopping at virtually
world’s population within a 5-hour flight
every stop on this economic regeneration journey.
radius, Macau enjoys the unique advantage of
Delegates can expect to hear a straight talking,
being the epicenter of Asian gaming actions.
uninhibited debate on the future of gaming in
Meanwhile, many Asian countries are now
the new vision for Macau and beyond.
aggressively developing their own gaming
The Macao Gaming Show is set to unveil a
businesses. Attending a gaming show in the
radical three-day program for its associated
he event will cover six gaming industry
capital of the Asian gaming industry will bring
conference and summit in November.
segments, including gaming equipment
boundless opportunities to exhibitors from all
Tackling the major challenges facing the
and accessories, gaming promoter and
around the globe.
industry in the Asia Pacific region, the summit
VIP clubs, casino fixtures and fittings
November is an important month for casino
will become one of the first gaming events to
and food and beverage.
operators. This is the month when they finalize
gain an insight into the Chinese government’s
The world’s biggest and most widely used
their next year budgets. MGS gives casino
One Belt One Road initiative, offering gaming
gaming equipment and accessories suppliers
managers and procurement personnel the
executives from all over the world the opportunity
will be on hand showing off the latest products
opportunity to sample the latest development
to explore the investment and development
to hit the casino floors and those coming very
in gaming equipment and services. It will be
opportunities being driven by the project in
soon. From slots, table games and hybrids to
a great opportunity for exhibitors to foster
Macau and throughout the entire Silk Road
gaming chips and shuffling machines, you can
relationships with this group of eager clients.
trading route. l
T
Asia Gaming Briefings | November 2015
SUPPLIER SPECIAL REPORT 42 AINSWORTH
High-definition line up
ARUZE
Exhibiting over 50 slots
A
ruze will be exhibiting over 50 slot machines at this year’s Macao Gaming
Show with a myriad of new titles being
A
insworth will showcase their latest line-up of product innovations
designed to set new standards for longterm performance, whilst offering players unique and dynamic entertainment experiences. Ainsworth will debut their latest range of Asian themed standalone progressive games, Lucky Ye Ha Hai, Action 8’s and 8 Immortals! Be enthralled by the high definition graphics encased in a spectacular A560 Dual Screen cabinet, brilliantly displaying a unique multi wheel feature. 5 wheels will appear to initialise the 8 Immortals! feature; these visually spectacular wheels will spin to determine special wild symbols linked to reels 1 through to 5. 8 Immortals is sure to build anticipation with 8 exhilarating free games providing guaranteed wild symbols and accumulating wild multipliers. Reels of Wheels is sure to be a hit with players as it continuously rewards with 4 levels of rapid triggering Standalone Progressives. One of Ainsworth’s most successful brands - Quad Shot - will be showing off new Asian-themed titles: Dragon Charm, Dragon Climber, Phoenix & Peony and Wings of Fortune featuring rapid trigger coinciding SAP’s and stacked wilds. Ainsworth will be exhibiting at booth #AV40. l
Asia Gaming Briefings | November 2015
ASPECT GAMING
Revolutionizing online slots gaming
A
spect Gaming, a leading provider of social casino games, will reveal its
latest innovations for casino slots games at
showcased for their video and stepper
the Macao Gaming Show.
products. Revolutionizing the Electronic
Aspect Gaming will present its brand new
Table Game industry, Aruze will also
electronic gaming slot machine, Super
feature the new Virtual Roulette.
Ruby 2, a new slots title, Ba Xian Chuan Qi,
Virtual Roulette is the all-new Projection
and a revolutionary online slots gaming
HD roulette concept delivering hyper-
experience in their mobile and Facebook
vibrant wheel and layout display with an
game and Grand Orient Casino.
exciting side game. The high-res LCD
Aspect Gaming’s brand new Super Ruby 2
interface enhances player interaction
slot machine features a one-wall screen
by providing players intuitive graphics
that connects a player’s slot machine with
displays depending on game play and help
neighboring slot machines, adding a social
screens accessed.
factor to the slots experience.
Virtual Roulette features the electrifying
This one-wall technology allows for
Progressive Jackpot side game, called
graphics and content to be synchronized
“Jackpot Chance”. This exciting new
across multiple slot machines that feature
feature has never been experienced on a
the same slots game title. With high-
roulette table, live or digital.
definition split screens - a stunning
Now in their 4th year of commercialization
42-inch top screen display, and a smooth
and continuing to enjoy record
and sensitive 23-inch touch-screen
placements, Lucky Sic Bo, Shoot to Win
display, players are able to experience a
Craps and Lucky Big Wheel are considered
connected gaming experience with others
the industry’s leading electronic versions
nearby.
of Sic Bo, Craps and Big Six.
Inspired by the traditional Chinese story of
Aruze Gaming’s newest platform, Cube-X,
eight immortals that overcame obstacles
has the highest quality standards in
with their own unique set of abilities, Ba
manufacturing and efficiency, which
Xian Chuan Qi is Aspect Gaming’s brand
created a more streamlined platform.
new slots title with several innovative new
Subsequently, the two row Liquid Crystal
features to give players a more social and
Display Button Panel, will not only be
interactive slots experience.
visually stimulating, but also serve to
Aspect Gaming will be exhibiting at booth
provide future product support with newly
#BA29. l
released content. Aruze will be exhibiting at booth #AQ36. l
SUPPLIER SPECIAL REPORT 43 BETCONSTRUCT
Debuting new BetCloud solution
BETSOFT
At the forefront of technology
B
etsoft Gaming, which will be exhibiting at the Macao Gaming
Show, stands at the forefront of modern
BULLS EYE
Enabling factbased decisions making
H
aving established a solid reputation across competitive Australian
jurisdictions, Bulls Eye Services has enjoyed
iGaming technology. With the advent of
recent success in the broader Asian market
the Slots3 brand in 2008, Betsoft were
in both the land based and online casino
poised to gain a solid market share with
space.
this amazing new style of video slots.
Bulls Eye has developed a suite of business
Betsoft’s proprietary Expandicon
improvement tools that assist gaming
technology set the stage for limitless
executives and investors to overcome
possibility and Slots3 has only improved
problems and leverage opportunities.
with time, creating richer, more immersive
Senior Advisor at Bulls Eye, Brett Jones, said
t Macao Gaming Show 2015,
gaming experiences for millions of players
that “Bulls Eye brings a fresh approach to
BetConstruct will demonstrate its
around the world.
problem solving. With so much information
Asian View Sportsbook and Agent System.
Slots3 is now considered to be the standard
available, and in so many forms, busy casino
Coupled with our industry leading 26,000
by which all other games are judged.
executives struggle to harness, process and
live matches per month, the BetConstruct
Betsoft employs the latest in graphics and
commercialise this valuable resource. We
Sportsbook is the most complete sports
audio technology, constantly researching
provide focus on what is important, and
betting offer for Asia today.
the most efficient methods to bring the
deliver insights based upon fact.”
We will also showcase BetCloud, our recent
content to the player without sacrificing
The team at Bulls Eye are optimistic that
innovation that allows partner operators to
any quality. This minute attention to
the broader Asian gaming market will
share the risk and reward associated with
detail illustrates the level of innovation
be attracted to their service model. Bulls
large bets resulting in increased profits
developed by Betsoft. The company’s
Eye embeds highly skilled professionals
for all. Visit us and be the first to learn the
professional team of creative artists
within a client’s business to drill down to
location of our upcoming Asian regional
originates from the AAA video gaming and
the very core of problems or opportunities.
office.
feature film industries, and they use their
This close relationships enables Bulls Eye
BetConstruct will be exhibiting at booth
talent to its fullest, producing cutting edge
to maximise the existing capability of the
#AH15. l
iGaming content on a demanding release
client to solve problems.
schedule.
Bulls Eye Services is pleased to be a sponsor
Betsoft Gaming is proud to offer the best
of the MGS Official Networking Party. l
A
mobile iGaming content on the market today. Born from the excellence of the wildly popular Slots3 collection of true 3D video slots, the ToGo line of mobile games far surpasses the quality and content of competing games. Betsoft Gaming is Lead Sponsor of the Official MGS Networking Party and will be exhibiting at #AV29. l
Asia Gaming Briefings | November 2015
SUPPLIER SPECIAL REPORT 44 COMTRADE
iCore to engage your players
CPI
EVERYMATRIX
Comprehensive cash solutions
C
rane Payment Innovations, a Crane Co. Company, will be exhibiting the
most comprehensive portfolio of cash
Providing the platform for business
E
veryMatrix is proud to announce that it is one of this year’s sponsors of the
Official MGS Networking Party, one of
management solutions for the Gaming
the most important meeting points for
industry.
suppliers and operators in Asia.
From the MEI brand, the SC Advance
From 17th to 19th November 2015, gaming
note acceptor, EASITRAX Soft Count cash
executives, industry stakeholders and
management system and PPM Advance
some of the biggest junkets in Asia
n the overcrowded world of gaming
support tool will be on display, along
are present at the Venetian Macao to
software it can be very challenging for
with the CashCode MSM BackLoad note
explore business deals and investment
operators to find a suitable platform that
acceptor and a range of Money Controls
opportunities.
would fit their needs.
coin hoppers.
The MGS brings together an important
Comtrade Gaming, a leading independent
The MEI SC Advance note acceptor is
number of iGaming companies, but the
software provider to the gaming industry,
part of a platform that has achieved an
surprises are not limited to the exhibition
is very well aware of that. To ensure that
installed field base of more than 1.5 million
floor. Business connections and deals are
operators can deliver the best player
units worldwide. Equally impressive,
created in the social environment, that’s
experience, they created iCore, an
nearly 150,000 of those units are coupled
why visitors should attend the Official
enterprise gaming platform, designed to
with EASITRAX Soft Count, the integrated
Networking Party on November 17th.
provide a level of player engagement that
software/hardware cash management
At the same time, the schedule on display
is rarely seen.
solution that generates operational
is ready to deliver specific and significant
iCore serves as a complete online
efficiencies from the slot floor to the back
talks, like China’s increasing influence on
operation management tool that offers
room.
the Macau economy, regulation norms and
advanced marketing features, detailed
Operators typically receive a return on
the lessons to be learned from Las Vegas, a
data collection and helps manage all areas
investment within one year – or faster
similar gaming environment.
of an online operation.
with the value-added EASITRAX Web
EveryMatrix’s representatives will attend
Utilising a single central wallet, the
extension that enables customized report
the show to connect with clients, discover
platform enables effective cross-sell
creation and secure intranet access to that
new market opportunities and establish
between multiple products and channels
data from anywhere in the world.
strong connections. l
that is independent of the content
CPI will be exhibiting at booth #AK37. l
I
supplier. The freedom and flexibility of iCore can allow seamless integration with any existing proprietary software and all external 3rd parties. What makes iCore so special are its bonusing and loyalty features that can be delivered during real time gameplay. They promote increased average spending, prolonging the player’s lifecycle in real time and help retain customers in the long term. l
Asia Gaming Briefings | November 2015
SUPPLIER SPECIAL REPORT 45 INCOME ACCESS
Asia focus, more partnerships
F
or over 13 years, the Income Access Group has played an integral role
in supporting the growth of the global
INSPIRED
Inspired to knockout
I
nspired, a leading provider of Virtual Sports, Mobile Games and SBG Video
Lottery, will be exhibiting its latest
INTERBLOCK
Growing in Asia
L
uxury gaming manufacturer Interblock has been growing strongly and steadily
in the Asia Pacific region over the last six
iGaming and land-based casino sectors.
innovations in Virtual Sports at Macao
months. Now the company is bringing 25
As 2016 approaches, the company is
Gaming Show.
years of innovation, technical perfection,
increasingly focused on the Asian market
Inspired is currently the only regulated
and thought-leadership to the Macao
and its recent partnerships with INBET88,
supplier of virtual sports in China and is
Gaming Show.
12BET, and DongCasino.com build on
the largest supplier in the Philippines -
Interblock senior vice president of Asia
long-standing business relationships with
as well as having over 95% share of the
Pacific Cameron Louis said, “We are very
operators such as Victor Chandler Asia.
virtual sports market in UK and Europe.
excited to be coming to the Macao Gaming
Whether supporting brands in Asia or
Delegates can look forward to seeing
Show. Over the past several months, we
in other international markets, Income
Inspired’s highly anticipated new virtual
have significantly grown our presence
Access works strategically to develop and
Rush Boxing game, featuring boxing
in the Asia Pacific region, from key new
manage organizations’ online acquisition
legend Mike Tyson and Rush Football 2,
hires, to office openings, and major new
channels. Through its turnkey tracking
which boasts lifelike Ultra HD graphics
contracts.”
technology and digital marketing services,
and over 30 bet markets.
“The Macao Gaming Show will provide us
Income Access is today partnered with
Harmen Brenninkmeijer, SVP Asia and
with an excellent opportunity to present
more than 300 global brands.
Strategic Markets, Inspired, comments:
our leading electronic table games as well
Beyond the Asian market, these include
“Inspired is fast becoming one of the
as the strength of the Interblock brand.”
Sky Gaming & Betting, Betfred, Danske
household names in gaming in the Asian
Interblock will show its industry-leading
Spil, PMU, Sun Bingo, Jackpotjoy, Caesars
market. We have extensive experience
Diamond Roulette game. Diamond
Interactive, Gala Coral, and Bet Victor.
introducing regulated lottery and
Roulette is a fully automated version of
Income Access’ multi-channel tracking
gambling products to eradicate illegal grey
roulette, available with a single or double-
and analytical platform allows companies
markets and ensure tax collection – we
zero roulette wheel. Proven worldwide
to measure their marketing campaign
look forward to showcasing our industry
to be incredibly popular among players,
performance and maximise their overall
leading Virtual Sports products and
Interblock’s Diamond Roulette uses air
marketing ROI. The technology, which
meeting with potential new customers at
pressure to launch the ball onto the rim
has won eGaming Review’s B2B Award for
MGS.”
and a series of optical and proximity
‘Affiliate Software’ for the last three years,
Inspired has over a decade of experience
sensors to track the ball during its path
now includes ad serving and mobile app-
in launching highly regulated gambling
and detect its final position.
tracking functionality. l
and betting products into new
Interblock will be exhibiting at booth
international markets. At the show
#AE-32. l
Inspired will be advising government officials on the process for developing regulations to successfully launch Virtual Sports in their country. Inspired will exhibit at booth #AK32. l
Asia Gaming Briefings | November 2015
SUPPLIER SPECIAL REPORT 46 JCM GLOBAL
JUMBO
Celebrating 60 Years of Innovation
F
or more than 60 years, JCM Global
Everything is possible
umbo is proud to present the upgraded award winning Long Dragon Baccarat this
year. The new and exciting “Long Dragon
industry-leading
Baccarat” enables the operator to link up
solutions that set
multiple baccarat games (up to eight games)
now JCM is bringing
into a single terminal. Jumbo has upgraded the players to try their luck on different
its innovative product
games without moving from one terminal
portfolio to the Macao
to another. It also provides various history
Gaming Show.
marking methods.
The show takes place
One of the most vibrant features of Long
17-19 November at the
Dragon Baccarat is Dragon Bonus. The
Venetian Macao, and JCM
Dragon Bonus focuses on continued banker
will bring a wide range of bill validation,
or player streak within the same table. The
printing, and system solutions that help
players can place a side bet on continued
operators of all sizes maintain the highest
banker or player winning streak. With each
levels of security while also creating
successful win, the payout increases. This
deeper connections with their customers.
feature can go up to as many as 20 rounds,
JCM Asia new business development
paying out 1000x return.
manager Jay Townsend said, “For 60 years,
After years of research and development on
JCM has been humbled by our success,
the behavior of players in Asian markets,
and by the ongoing support of our many
various history making methods fulfills the
customers around the world. We invite the
Asian players’ obsession over the ability to
Asian gaming industry to visit us at the
spot and exploit trends in cards.
Macao Gaming Show, to experience our
Jumbo has earned the reputation of being
award-winning product line first hand,
a trustworthy partner who delivers on our
and to celebrate our past success and the
promises. Jumbo has done so through hard
beginning of our next 60 years.”
work and dedication to the Asian markets.
JCM’s award-winning line of bill
We will continue to do so and improve upon
validation technology is led by iVIZION,
the principles the company is built upon.
the most widely used bill validator in
With Jumbo, everyone is a winner and we
Macao. JCM will also show its iPRO and
cannot wait to show the operators what we
UBA bill validators. Additionally, for
can do for you.
the first time in Asia, JCM Global is
Please visit Jumbo at booth #BA34. l
excited to present a new table product featuring a real time currency validation and reporting solution with TITO for enhancing table operations.” JCM will exhibit at stand #AH-20. l
Innovative gaming solutions
J
has been creating
global standards, and
LT GAME
T
he Company will be displaying a variety of its products at The Venetian Macao
Cotai Expo during the Macao Gaming Show, where visitors will be able to try out all the latest Live Multi-Gaming (LMG) products, as well as brand new Electronic Table Gaming products and a Cash access kiosk that will be introduced to the market soon. Visitors to LT Game’s booth will be able to experience a large range of gaming equipment and a new cash access system. Demonstrating LT Game’s continuous advancements in revolutionizing the casino floor, the Company will exhibit the awardwinning LMG-6 terminal with additional gaming features, the newest Fast Betting Terminal, the innovative E-baccarat table, the brand new Power Dragon, MultiRoulette, Horse Racing terminals and the first ever currency exchange kiosk QFX (Quick Foreign Exchange) Jay Chun, chairman and managing director of Paradise Entertainment said, “The LT Game brand has been well-established on Macau casino floors, and our products have been very well received by the market as they are able to drive solid financial performance for casino operators and bring players a unique gaming experience. The company has over 3,700 terminals deployed across 18 casinos in Macau and over 200 terminals deployed in overseas casinos. We are extremely excited to continue offering different types of innovative gaming and cash handling solutions to the market, and believe that our technology will enhance casino operational efficiency and meet player needs.” LT Game will be exhibiting at booth #AV27. l
Asia Gaming Briefings | November 2015
SUPPLIER SPECIAL REPORT 47 MATSUI
Extra security, more choice
PLAYNGO
The Gaming Pro
M
P
newly designed moulding segments.
performance on smartphones, tablets,
Added to the traditional security features
terminals and websites. By combining
such as Visible & Invisible UV, Matsui
extensive experience with the latest
introduces their exclusive MG EYE security,
technology we create products that are truly
new generation EAS and latest Material
modern, complete & highly flexible. Play’n
Track security.
GO’s premium gaming content, designed for
As well as those new security features,
multi-device consumption stand out from
innovative PEARL decal chips will be
the competition and are greatly appreciated
launched at MGS 2015.
by players worldwide. The Play’n GO truly
Shigeki Machida, managing director of
independent e-gaming platform GAT –
Matsui Asia, Matsui’s Macau office, said,
Gaming Account Toolkit - delivered with a
“We are very excited to introduce those new
complete and comprehensive back-office
gaming chips as well as other core products
gives operators a unique foundation to
of Matsui such as high durable synthetic
tailor their offerings. Integrated games
layouts to our customers at MGS 2015.”
and payment services from a wide range
“We will also announce at MGS 2015 a
of providers – all managed through ONE
licensing agreement for RFID which will
heterogeneous system. We ensure that
provide even more choice and performance
our clients are equipped with superior
for Matsui Chips.”
administration tools for surveillance &
To respond to customers’ very high demand
marketing in addition to premium gaming
for Matsui’s Table Layout, Matsui recently
content. We are Play’n GO – The Gaming
expanded its production capacity. New
Pro! Play’n GO is proud to be sponsoring the
machineries and equipment have been
Official MGS Networking Party. l
atsui has extended its gaming currency portfolio through focused
investment behind the new security and
also strengthened manufacturing security for gaming chips with state of the art technology which leads it to extremely high standards. Matsui will be exhibiting at stand #AK39. l
Bringing it all under one roof
lay’n GO is a gaming specialist and the leading mobile casino gaming
developer. Our games are designed for great
installed to further speed up and improve the quality of products while the facility has
SCIENTIFIC GAMES
A
t MGS 2015, Scientific Games will demonstrate the company is ‘stronger
together’ and uniquely positioned as a global supplier of choice for casino operators’ gaming equipment and technology by bringing the industryleading Bally, Shuffle Master and WMS brands under one roof. Scientific Games offers an unmatched diversity of product and system solutions from across the company’s diverse array of top brands will be on display at The
INTEPLAY
Complete solutions, customized service
I
Venetian Macao. Products on show include Da Fu Da Gui, an Asian Themed Progressive Link geared up with fantastic overhead signage. Da Fu Da Gui, the continuation of the Duo
nteplay is a leading software company
Fu Duo Cai phenomenon with its dedicated
providing cutting-edge gaming platforms
Asian content and math model, offer
and contents for the iGaming industry.
players the anticipation of big wins with its
From start-ups to well-established
Double Luck Jackpot feature. When players
operators, we fully understand that there
reveal three Double Luck coins during
can not be any single solution suitable for
the jackpot feature, they win the current
all. Thus, we are committed to offering
jackpot amount, plus the startup amount
our partners highly customized services
of the winning jackpot level. The Da Fu Da
and making contribution to their growths.
Gui link launches with Rich Traditions and
Innovation and flexibility remain as our
Jade Eternity on the Pro Wave cabinet.
key values and we are always with you to
Also on display is Super Diamond Eternity,
achieve further success. Our LAN casino
which now joins the Super 88 Fortunes in
solution is designed for markets or areas
the SUPER game library. The standalone
which have limited Internet bandwidth and
versions of the proven performer 88
less efficient hardware. As well as online
Fortunes and Diamond Eternity will
casino, we also offer a full range of gaming
entertain players like no other with 1024
products including Mobile, Sports, Live
ways to win.
Dealer, Lottery, and Bingo. l
SG will be exhibiting at booth #AD25. l
Asia Gaming Briefings | November 2015
SUPPLIER SPECIAL REPORT 48 SPINTEC
Karma gains extra certification
V
isitors at the Spintec booth at MGS 2015 will experience the quality that
makes Spintec the major supplier of
TCS
WEIKE GAMING
Saving time, increasing revenue
T
Showcasing jackpot link
W
eike Gaming
CSJOHNHUXLEY, a live gaming
Technology, a
solutions provider, will showcase
leading local Asian
some of its impressive product
automated roulettes on Macau gaming
portfolio at the Macao Gaming Show
gaming manufacturer,
market.
in November. Focusing on leading
once again will
Spintec, whose products are present
edge table technology for baccarat and
participate in the
on the market under the brand name
sicbo, the company will present its key
Macao Gaming Show
Karma, has developed all solutions of the
solutions for optimizing game speeds and
2015.
American roulette: automated, virtual
dealer performance, increasing player
The Weike booth will
and connection to live game. Recently,
excitement and improving security.
feature an outstanding
Spintec has gained a new certificate for
“Listening to, and working with, our
line-up with a
Progressive Gaming Devices in Casinos -
customers has allowed us to deliver
market proven
GLI 12 in Macau.
solutions that drive and grow their
progressive Jackpot
A Progressive Jackpot System is already
business,” said Rebecca Kingswell,
Link and Asian
widely present on Karma roulettes
TCSJOHNHUXLEY’s managing director for
themed standalone
throughout the world, attracts more
Asia Pacific.
games.
players, and gives casinos a considerable
“This year’s Macao Gaming Show will see
Victory, an
advantage against the competitors
a range of Gaming Floor Live modules and
integrated 4-level progressive jackpot
because of the additional incentive for
enabled products that help casinos save
link launched last year together with
the players. It is very eye-catching and
time, increase revenue and improve their
the 50-line games Fortune Meow and
highly visible on LCD screens.
operations.”
Legendary Archer, has emerged as one
It operates in a manner that the system
Visitors to the stand can expect to see
of Weike favourite’s products across the
randomly picks up a lucky number from
TCSJOHNHUXLEY’s real-time gaming
region. And this year Weike brings Victory
the roulette layout and shows it on a
table management system in action. As
back again to the booth, where visitors
screen right after the bets are closed
a part of the Gaming Floor Live (GFL)
can experience its enhanced graphics,
for players but before the ball falls in
platform, the GFL Optimisation module
animation, sound and exciting winning
the wheel. In cases when the winning
will be on display and connected to
celebration.
number is the same as the lucky number,
a Baccarat table, demonstrating how
“Performing products are important
and the player has bet on it, the player
operators can gain visibility into their
to increase player engagement and
wins the Jackpot.
table operations and dealer performance.
entertainment, Weike will continue to
This likeable feature is just one of the
Also on show will be the GFL Bonusing
develop new products and also update its
many customer-oriented features of
module, demonstrating its powerful
existing products to serve the customer’s
all Karma Roulettes. The other most
floor-wide event and mystery progressive
need” said Kup Ferroth, vice president of
distinctive features of Karma Roulettes
capabilities, which enables casinos to
product marketing.
are: unbeatable comfort designed for and
configure side bet contribution ratios,
Also on display will be the standalone
around the player, intuitive interface for
jackpots, payouts etc., depending upon
games, which includes Guan YunChang,
the ease of play, extreme modularity and
regional regulatory requirements.
an exciting new 243 Ulti-Ways game with
custom-made designs.
TCS will be exhibiting at booth #Z24. l
30 credit entry bet. The game was based
Spintec will be exhibiting booth #AV36. l
on the legendary General Guan Yu, and its high multiplier chance produce a highly volatile game for all player demographics. Weike will be exhibiting at booth #AH32. l
Asia Gaming Briefings | November 2015
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SiGMA - SUMMIT OF iGAMING MALTA 4-7 November 2015 InterContinental Hotel, Malta www.maltaigamingsummit.com
ICE TOTALLY GAMING 2016 2-4 February 2016 Excel London, London, UK http://www.icetotallygaming.com/
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APRIL
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Asia Gaming Briefings | November 2015
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MAY
G2E ASIA 17-19 May 2016 The Venetian Macao www.g2easia.com IAGA INTERNATIONAL GAMING SUMMIT 31 May - 2 June 2016 Westin Dragonara, Malta www.theiaga.org www.gigse.com
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JULY
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LAST WORD
Government needs to fine tune policies as Macau market rebalances
54
As the year grinds to a close, no one is now predicting a v-shaped recovery for the gambling industry in Macau.
Sharon Singleton*
G
ross gambling revenue has just fallen for the
that it would be getting 250 out of the 400 requested.
17th-straight month and although analysis of
Shortly thereafter, the government unexpectedly said it
the figures shows a slightly improving trend
would give a further 100 to Galaxy, which only received
sequentially month on month, the numbers
150 in the initial allocation.
are still dropping far short on an annual comparison
There has also been ongoing uncertainty about smoking.
and we’re no longer comparing with record prior year
A partial ban was imposed in October last year, with
numbers.
smoking only allowed in specially designated zones
Most operators now concede that the VIP market that
on main floor areas and in VIP rooms. After the great
made up about two thirds of total revenue may not be
expense of reconfiguring casino floors, more changes
coming back, making it crucial for operators to be able
are now being considered, though when they may be
to attract a high volume of mass market travellers.
implemented is unclear.
Melco Crown Entertainment’s Studio City opened with
Then there have been rumblings about caps on the
much fanfare on Oct. 27th, attempting to bring some
number of Chinese visitors who would be actually
Hollywood magic to Macau to drive revenue. It chose
allowed to visit Macau, coupled with restrictions on
to use its entire table allocation of 250 for the mass
third-country transit visas, which were subsequently
floor, becoming the first in Macau to do so.
eased again in July.
Morgan Stanley in recent research called the opening
Add to that the ongoing mid-term review and uncertainty
the “biggest wild card” for the industry and for Melco,
over concession renewals and it’s perhaps not surprising
highlighting the delicate balancing act that the territory
that Steve Wynn’s frustration recently boiled over very
will be facing in the next phase of its development. Non-
publicly on a conference call with analysts.
gaming is a crowd puller but a margin drag, however
He called the delays in hearing how many tables the new
on the casino side that same mass market should help
resorts will be allocated “outrageous and ridiculous,”
drive higher margins, the firm points out.
outlining how difficult it had become in terms of
Galaxy Entertainment’s Phase 2, which opened in
planning, hiring and training.
May, was disappointing as far as growing the market
The government was quick to respond, summoning
was concerned, though has helped the company’s
local executives to express its displeasure.
market share.
Still, Wynn was joined a week later by SJM Holdings
Next year, Las Vegas Sands will open its Paris-themed
Angela Leong who also called on the government to
property, while Wynn will open its $4 billion Wynn
take action to boost the economy. Her gripes centered
Palace in March.
on delays in decisions over key infrastructure projects,
With so many billions of dollars at stake and the market
such as the Hong Kong, Zhuhai, Macau bridge.
facing a rocky transition away from the high roller that
“Do you know how long we have been talking about
fueled stellar growth in GGR and made Macau one of
the bridge? Ten, 20 years. That’s a long time,” she
the wealthiest places on earth, operators could perhaps
told Bloomberg.
expect more help from the local government.
As Macau attempts to reinvent itself from a gambling
Companies have been left waiting until the very last minute
mecca for China’s billionaires to a broad-based tourism
to hear how many tables they would be allowed to fill their
destination, it faces a delicate balancing act that may
enormous new casinos, with Melco getting notice about
need a greater level of refinement from government
seven days before the opening of its $3.2 billion resort
policymakers than seen in the past. l
* Managing Editor, AGB
Asia Gaming Briefings | November 2015
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