Agbriefings May 2018

Jurisdiction Updates May 2018 Edition

In focus pg.30

Sports betting in Asia

World Cup bonanza, regulatory red tape and the race for millennials

PHILIPPINES

Primed for VIP growth pg.22

CNMI

Rising debt raises eyebrows pg.46

JAPAN

Wooing local governments pg.16

Macau Melco’s metaMorpheus pg.10

G2E 2018 SUPPLIER SPECIALS pg.48

MESSAGE 3

Presenting our project pipeline

W

e open this May edition of AGBriefings’

arguably the region’s largest gaming and entertainment

Jurisdiction Updates with a special feature on

exhibition. Under a banner of diversification of content

the rebranding and expansion plans of Melco

the show returns to the bustling city of Macau, on the 15th

Resorts & Entertainment. The home-grown

to 17th May, 2018 expecting to attract more than 15,000

Macau operator has been extending its feelers into other

visitors. In these pages we bring you what you can expect

markets, such as Cyprus and is keen for a license in Japan.

to find from some of the 220 exhibitors covering a massive

In an exclusive interview with Asia Gaming Brief, Chairman

37,000 square meter exhibition print.

and CEO Lawrence Ho, offers us his perspective on the

Swing by our booth at stand #457 to meet with the Asia

changes taking place and his views on wider market

Gaming Brief team and find out more about the projects we

prospects. Ho shares how the exit from one of gaming’s

have in the pipeline: AGB Nippon, a Japanese language daily

most successful joint ventures early last year, has placed the

editorial service geared toward helping the local Japanese

operator in a position to reap the full potential of its Asian

business community navigate the inner workings of the

properties and to chart its own path into new jurisdictions.

gaming industry and the upcoming conference venture with

While every every operator, supplier and service provider

the Gaming Technology Association to develop Australasia

in the industry is setting their sights on Japan as the new

Gaming Exhibition Seminars.

best thing, we look at another sector of the industry equally

If you’d like to get in touch for a meeting write to us at

as keen to benefit. Gaming consultants are competing to

g2easia@agbrief.com.

offer gaming-related consultancy services to Japanese local

Also, as the Asia gaming industry converges into Macau,

governments as they take their first steps toward becoming

AGB is debuting arguably its most ambitious project to date:

hosts of integrated resorts.

the Asia Gaming Genealogy Tree!

With two major events on the doorstep in the sports betting

After drinks at the Supplier Cocktail Party come and have

world, we take the chance in the Focus section of this edition

a laugh along as we take you down gaming’s memory lane!

of Asia Gaming Briefings to examine some key trends in this

You’ll be offered a chance to eat, drink and be part of the

growing gaming sphere: Could the U.S. Supreme Court’s

Asia Gaming Tree 2018 Inaugural Reunion Party - The time

sports betting decision affect gambling in Asia and will the red

and location for a blast: 16th May @St Regis. For details drop

tape around Russia’s World Cup curb operators’ prospects?

us a line at gamingtree@agbrief.com

The underlying currents of Beijing’s influence are felt across

See you Macau and catch up at the “The Reunion” party on

most of the Jurisdiction Updates in these pages.

Wednesday evening!

Rosalind Wade

Luis Pereira

In Southeast Asia we look at how the Philippines are tipped Connect with us:

as being one of the best-placed jurisdictions to take a slice of the high-roller pie, as China’s VIPs are once again driving

@agbrief

gross gambling revenue across the region.

In Indochina, Macau’s junket operators are increasingly

Asia Gaming Brief

focused on Cambodia, drawn in by growing business ties with China and its location between countries that don’t

Asia Gaming Brief

On behalf of Asia Gaming Brief

allow locals to gamble.

Rosalind Wade & Luis Pereira

Our Special Supplier Report is dedicated to G2E Asia,

Publishers

www.agbrief.com

MAy 2018 EDITION Series II • Issue XIX

PUBLISHED BY Blue Sky Venture Ltd. 16/F China Law Building, 409 Av. da Praia Grande Macau SAR | P.O. Box 1139 t. +853 2871 7267 f. +853 2871 7264 e. enquiries@agbrief.com ADVERTISING ENQUIRIES advertising@agbrief.com SUBSCRIPTION ENQUIRIES memberships@agbrief.com EDITORIAL ENQUIRIES editorial@agbrief.com

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AGBRIEF PARTNER EVENTS

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Asia Gaming Briefings | May 2018

CONTENTS 4

GREATER CHINA

NORTH ASIA

10

MACAU

SOUTH EAST ASIA

JAPAN

16

PHILIPPINES

22

SOUTH KOREA

18

MALAYSIA

26

SINGAPORE

28

CONNECTING PEOPLE AND 20 INNOVATIONS IN THE ASIAN ENTERTAINMENT INDUSTRY 42 40 RUSSIA

SOUTH ASIA

INDOCHINA

AUSTRALASIA

連接亞洲

CAMBODIA

NEPAL

AUSTRALIA

44

CNMI

46

娛樂業界與創新科技 30

special focus

SUPPLIER SPECIAL REPORT

48

LAST WORD

78

Market Trends. Quality Products. Networking.

CONNECTING PEOPLE AND 市场趋势、 优质产品、建立联系 VISITOR PRE-

INNOVATIONS REGISTRATION IS NOW OPEN IN THE ASIAN 觀眾預登記 現已開始 ENTERTAINMENT INDUSTRY

G2E Asia: Informs smart business decisions. 亞洲國際娛樂展：助您作出明智的商业决策

連接亞洲

MAY 15 - 17, 2018 | 2018年5月15-17日 THE VENETIAN MACAO | 澳门威尼斯人

娛樂業界與創新科技 A G2E EVENT

PRESENTED BY

ORGANIZED BY

Market Trends. Quality Products. Networking. 市场趋势、优质产品、 建立联系 VISITOR PRE www.g2easia.com

Asia Gaming Briefings | May 2018

G2E Asia: Informs smart business decisions.

REGISTRATION IS

SPONSORED BY

6

Asia Gaming Briefings | May 2018

7

Asia Gaming Briefings | May 2018

8

COMING SOON

CONTACT YOUR SG GAMING SALES REPRESENTATIVE NOW MACAU OFFICE Phone: +853 2872 2539 www.sggaming.com/asia Asia Gaming Briefings | May 2018

9

Zombie Blackjack is based on regular blackjack, but with a twist. Depending on the dealer’s up-card, you may have the chance to bring a busted hand BACK TO LIFE.

GETTING STARTED To begin, you must make your standard blackjack wager. Once all wagers have been placed, the dealer will give each participating player and themself their fi rst two cards. Once each player and the dealer have received their two starting cards, standard house rules for blackjack are followed.

PUSH 22 If the dealer busts with a point total of 22, any blackjack bets left in action are a push.

NOTE: Player blackjacks are paid before the dealer hits out their hand, and are exempt from the Push 22 rule.

BACK TO LIFE If you bust, and the dealer’s up card is a seven through ace, your original blackjack hand can be brought BACK TO LIFE. The dealer will move your cards and original blackjack wager to the BACK TO LIFE card box. If the dealer busts with a point total of 23, 24, 25 or 26, the player is paid 1 to 1 on their wager. Any other fi nal dealer total and the BACK TO LIFE money is collected. NOTE: Any wager made by the player, such as double down wagers or split hand wagers are eligible to win after a bust.

Asia Gaming Briefings | May 2018

10

GREATER CHINA

10

MACAU

Melco’s meta-Morpheus Melco Resorts and Entertainment exited one of gaming’s most successful joint ventures early last year, putting it in a position to reap the full potential of its Asian properties and to chart its own path into new jurisdictions. The company is building an integrated resort in Cyprus and is pushing hard for a license in Japan.

Asia Gaming Briefings | May 2018

I

t is also undergoing a transformation in its core Macau market, where efforts to rebrand its flagship property are at an advanced stage. Chairman and CEO Lawrence Ho offered us his perspective on the changes taking place and his views on wider market prospects.

AGB: How are you repositioning City of Dreams, Macau?

At home in our core gaming market of Macau, the flagship integrated resort City of Dreams continues to progress towards the launch of its third phase. On track for completion in the first half of 2018, the rollout of City of Dreams Phase III will coincide with the opening of its new signature hotel, Morpheus, the world-first free-form exoskeleton high-rise designed by the late Dame Zaha Hadid, DBE. Also as part of the ongoing revamp of retail, hotel and gaming facilities throughout the property, Melco announced the launch of a new luxury hotel brand, named Nüwa in December, replacing the former Crown Towers at City of Dreams in both Macau and Manila. Conceptualized by Melco, this hotel brand exemplifies our mission to deliver an ever-improving and holistic customer offer that spans the entirety of the gaming, entertainment and hospitality space. NÜWA Macau is the only property with a total of five 5-Stars for its offerings in accommodation, spa and restaurants including Jade Dragon, Shinji by Kanesaka and The Tasting Room.

This extensive upgrade to our flagship property will solidify our leadership in the premium-mass segment, positioning us to offer customers Macau’s most fully integrated and modern gaming and entertainment experience.

Despite multiple new resorts recently opened on the Cotai Strip, we believe that with Nüwa and the soon-to-be-opened Morpheus, City of Dreams will establish itself as a landmark in the Macau strip. Morpheus will add almost 770 new luxury rooms, suites, and villas, on top of new restaurant, retail and entertainment concepts. Together, they capture the increasing non-gaming demands from both gamers and tourists. Meanwhile at Studio City, we will continue upgrading entertainment offers and resort accessibility throughout the year, such as exploring plans for a Phase II expansion.

GREATER CHINA 11

development, adding new elements to our offering in luxury hospitality, entertainment and retail operations, in addition to new gaming tables for both VIP and mass players. In particular, mass luxury tourists and the premium mass segment will be its core demographic.

Morpheus is more than another building in Macau. An icon for quality, taste and vision, it is an architectural masterpiece and will become a tourist attraction in Macau. It signifies our commitment to supporting Macau’s ongoing transformation into a diversified world tourism and leisure destination, as well as our unique ability to imagine and deliver world-first projects that redefine and elevate the landscapes they share.

AGB: What is the timeline for the expansion of Studio City?

We are currently reviewing the development plan and schedule for the remaining land for Studio City. It is expected that the additional development will include a hotel and related amenities.

AGB: How is the Cyprus project progressing?

We are developing our first European integrated resort in Cyprus and recently began our 30-year casino gaming license, the first 15 of which are exclusive.

City of Dreams Mediterranean will be developed in western Limassol and launched by early 2021. A temporary casino will operate

in Limassol until the official launch of City of Dreams Mediterranean.

The Integrated Resort is designed in the Mediterranean style and it will be Europe’s biggest Integrated Casino Resort, with a total of 136 tables and 1,200 gaming machines, a five-star hotel with luxurious villas and 500 hotel rooms, 11 restaurants and cafeterias, a wellness centre, a sports centre, an extensive pool area with river woods and surf pools, a high-end retail area and an outdoor amphitheatre with extensive green areas. Also, in order to attract conference tourism, City of Dreams Mediterranean will offer 9,600-sq. metres of MICE facilities with a convention expo centre.

AGB: Why do you think Melco is the best partner for Japan?

We will do in Japan what we have done since our very first day, what we have delivered in Macau, the Philippines and Cyprus: build with local partners, invest in extraordinary world-first architecture and design, create sophisticated entertainment experiences, and embed stateof-the-art technology into everything we do.

Melco delivers better tourists. Partnering with Melco will help Japan attract higherspending and more discerning tourists, because each of Melco’s integrated resorts is a unique landmark, it is designed to reflect and elevate the particular culture and landscape of the destination. City of Dreams Mediterranean will be built according to the principles of sustainable development and be tailored to fit Cyprus’s natural environment and landscape.

AGB: How will the opening of the Morpheus hotel help the business?

Morpheus will be the anchor of City of Dreams upon the completion of its Phase III

Asia Gaming Briefings | May 2018

GREATER CHINA 12

Melco improves communities, our properties have all-around economic impact immediately and consistently boosts the economy. City of Dreams Mediterranean is a good example, it is expected to attract an additional 300,000 tourists a year and will promote Cyprus internationally as a conference destination. The financial impact of the project on the Cyprus economy is expected to be approximately EUR700 million a year, which is around 4 percent of the country’s annual GDP, after the second year of the Integrated Resort’s operation. It will also offer around 4,000 local job opportunities during the construction phase and around 2,500 permanent jobs once it is fully operational.

AGB: What is your view on the outlook for Macau?

2017 was a turnaround year in our core market of Macau. Rebounding to register consecutive monthly growth throughout 2017, Macau gaming revenues improved in both the VIP and mass market segments, followed by another year of expected robust growth in 2018.

Buttressing the geography’s increasingly favorable visitation patterns will be the deployment of new infrastructure developments making tourism more accessible and convenient, particularly for travelers from mainland China and overnight visitors throughout the surrounding region.

These developments include the opening of the new Pac On Ferry Terminal, the ongoing development of Hengqin Island, the completion of the Hong Kong-Zhuhai-Macau Bridge, the build-out of the Cotai Strip and the rollout of a light rail transit system throughout Macau.

While VIP gaming registered strong performance over the year, we maintain our long-term thesis that future growth in Macau will be driven by the premium-mass and mass segments. Accordingly, we will continue to invest

GROSS GAMING REVENUE GGRE 2017 MOP266.6b 2018 Q1

+20.5%

VIP Q1

+21%

Q1 mass revenue

+20%

Q1 slots

+17.9%

Asia Gaming Briefings | May 2018

in balancing our exposure to both VIP and mass revenues, as well as to entertainment and leisure sales from the ever-expanding non-gaming revenue pie as Macau evolves into a diversified global tourism destination.

AGB: Is the concession renewal process a concern?

The first of Macau’s gaming concessions are set to expire in 2020, and Melco will work closely with the Macau government to renew our concession license.

From my point of view, Melco has always done more than most of our competitors from a diversification/non-gaming standpoint. We listened to the Macau government ten years ago in terms of what they wanted, so I think we want to continue to be good partners and again, continue to do more for our colleagues and do more for the community as well.

Wynn macau Wynn Macau (1128:HK) operates two resorts, with its $4 billion Wynn Palace opening in 2016. The company’s original property is on the Macau Peninsula. The Wynn Palace has 1,700 hotel rooms and 90 percent of the resort will be non-gaming. The company’s Q4 2017 results beat expectations, with adjusted property EBITDA gaining 64 percent to $376 million year on year. Net revenue came in at $1.31 billion, up 43 percent. Both mass revenue and VIP performed strongly, gaining 36 percent and 20 percent respectively. Despite the positive results, the group’s share price has been hit hard after founder and CEO Steve Wynn was forced to step down following allegations of sexual misconduct. Representatives from the Gaming Inspection and Coordination Bureau reportedly met with top executives to discuss the situation.

Paradise loss narrows, seeks expansion ops.

Gaming equipment supplier, Paradise Entertainment, reported its loss narrowed to HK$30.7 million (US$3.9 million) in 2017 from HK$380.4 million the year before and said it will look for expansion opportunities in Macau and elsewhere. The better result was due to an absence of a one-off cash loss of HK$334.8 million which was recorded in 2016 in relation to the assignment and license of patents and associated technology to IGT. Total revenue was down slightly, reaching HK$1.01 billion, down 13 percent compared to HKL$1.2 billion in 2016. Paradise said the decreased revenue was partly due to the change of cooperation mode at the Casino Macau Jockey Club - which changed from the provision of casino management services to revenue sharing from LMG terminals, which took place on January 1, 2017. Paradise also noted a decrease in sales of electronic gaming equipment and systems in the year compared to that of 2016, which saw more flagship property openings. Regarding its two satellite casinos in the Macau Peninsula, which includes Casino Kam Pek Paradise and Casino Waldo, the group said they maintained stable growth in gaming revenue and provided stable and strong cash inflows to the group.

GREATER CHINA 13

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Asia Gaming Briefings | May 2018

GREATER CHINA 14

Sands China Sands China (1928:HK) has five properties in Macau. The new $3 billion The Parisian opened in September 2016 and is now a key driver of group results. It features a scale replica of the Eiffel Tower, nearly 13,000 hotel rooms, two million square feet of retail-mall offerings and two million square feet of MICE capacity. Sands China’s Q4 results beat analysts’ expectations, driven by strong premium mass revenue in Macau, which gained 52 percent year-on-year, compared with a 7 percent gain in base mass, according to Union Gaming analysis. Total net revenues increased 12.9 percent to US$2.10 billion compared to US$1.86 billion in the fourth quarter of 2016 and above The Street estimate for $1.94 billion.

Net income increased 49.1 percent to US$519 million, while hold-normalized EBITDA came in at $758 million, representing growth of 30 percent over the prior year. Bernstein Research noted the company is optimistic about further growth in the premium sector, which is being driven by more younger players coming from provinces outside Guangdong and higher average spend per customer.

MGM china MGM China (2282:HK) is operating a single casino on the peninsula. MGM China’s Q4 revenue gained 10 percent, pulled up by the mass market, which benefited from a gain in both volume and hold percentage. Net revenues were $549 million. Revenue from main floor table games was up 21 percent, helped by a 10 percent increase in volume and a gain in the hold to 21 percent from 19 percent in the same period a year earlier. VIP revenue fell 5 percent, even though turnover was up 23 percent, as the hold fell to 3.1 percent from 3.7 percent the year before.

The HK$27 billion MGM Cotai opened its doors on Feb. 13. The company said the initial demand and customer feedback to the resort has been positive. Like its main competitors MGM is also actively seeking a license to operate in Japan.

Melco resorts & entertainment Melco Resorts & Entertainment (6883.HK) has three casinos and the Mocha Clubs. The company operates the City of Dreams and Studio City in Macau and the City of Dreams Manila.

In January, the company announced a

Asia Gaming Briefings | May 2018

major management reshuffle, with David Sisk named as property president for City of Dreams Macau, replacing Gabe Hunterton, who will leave the company.

Geoff Andres, who is currently president of of City of Dreams Manila, will replace Sisk as property president at Studio City in Macau.

The company is now exploring possible Phase 2 expansion for Studio City and has been granted an extension of the development period under the Studio City land concession contract. It is expected that the additional development will include a hotel and related amenities. For Q4, MLCO reported net revenue of $1.33 billion, a gain of 12 percent, which was in line with expectations. Adjusted property-level EBITDA was $340 million, also up 12 percent. Analysts say City of Dreams is underperforming the company’s other Macau properties.

Galaxy Entertainment Group Galaxy Entertainment Group (27.HK) has three main properties and runs three City Club casinos inside hotels. The company’s Galaxy Macau Phase 2 and Broadway at Galaxy Macau opened on May 27, 2015, almost doubling the capacity of the resort. The property is viewed by analysts as one of the best placed in Macau, having made considerable efforts in recent years to boost its mass market appeal. Galaxy was recently chosen for inclusion in the Nikkei Asia300 Investable Index – a newly created index of Asia’s biggest and fastest-growing

companies, which is designed to be used as an underlying index for financial products such as investment funds.

The Nikkei Asia300 Investable Index comprises 300 Asian listed companies, with constituents picked by Nikkei as companies to watch in Asia. GEG is the index’s only Hong Kong listed gaming company and one of only 34 Hong Kong companies represented.

SJM Holdings SJM Holdings (880:HK) has 20 casinos on the Macau Peninsula. The company has been losing market share while it completes construction of its Cotai IR, which most analysts now expect to open in 2019.

The company has announced that its Chairman Stanley Ho, known as the father of gaming in Macau, will retire to be replaced by his daughter Daisy. Ho’s fourth wife Angela Leong and Timothy Fok were named Co-Chairmen and Executive Directors of the company with Dr Ambrose So elevated to Vice-Chairman, Executive Director and CEO. Analysts were sceptical the changes at board level would help the company to regain ground in Macau, where it has been losing market share.

Recently, the company’s Grand Lisboa Hotel was the title sponsor of a Dota 2 eSports tournament in December. It was the first international eSports competition held in Macau, with nine teams of contestants coming from around the world.

The 13 opening delayed to June The 13 Holdings says it expects net proceeds of HK292.6 million ($37.2 million) from the sale of its construction unit to help fund the completion of the ultra-luxury hotel project. The company said the opening of the resort has been further delayed and it now expects to receive a Macau Government Tourism Office license somewhere between mid-May and June and to open the property on June 30th. From the proceeds of the sale, about $24 million was used to finance the purchase of furniture and fixtures, and equipment. About $266.1 million has been allocated as working capital and $2.5 million was used to repay principal on a bank loan. “With The 13 Hotel commencing operation, a new revenue stream will be generated,” the company said. “Having considered the above reasons and factors, and having regard to the long term strategy of the group in having The 13 Hotel which is a unique ultra-luxury hotel, the board believes that it is timely for the company to reduce its exposure to the risks relating to the construction business and focus on The 13 Hotel.”

GREATER CHINA 15

Asia Gaming Briefings | May 2018

NORTH ASIA

16

JAPAN

Gaming consultants woo local governments Four major companies, all of them related to the auditing industry, have been competing to offer gaming-industry consultancy services to Japanese local governments as they take their first steps toward becoming hosts of integrated resorts.

D

eloitte Tohmatsu has picked up contracts in Yokohama, Osaka, Nagasaki, and Wakayama. PwC is the main advisor to the Osaka municipal governments. KPMG serves the government of Tomakomai in Hokkaido.

Finally, EY has done some IR-related work for Yokohama. This list could very well change in the next round of bidding as local governments may choose a different partner at different stages of their IR development.

The tasks that these consultancies have been hired to perform have related mainly to basic studies about overseas integrated resorts and the global gaming industry in general, and well as conducting the RFI processes on behalf of some of the local governments.

PwC’s recent contract with Osaka, however, appears to go a little further, including a full RFP process and the fixing of conditions regarding urban development and transportation infrastructure. This contract continues through March 2021, by which time the IR consortium should have been selected and, hopefully, a license granted by the central government.

Theoretically, consultancy services to local governments in Japan might be offered by companies other than the four major auditing firms. However, there are some distinct reasons why they have jumped out in front.

Some of the initial gaming business was funneled to them from overseas due to existing relationships between IR operators and overseas branches of the same auditing firms. They have leveraged these international connections to market themselves inside Japan.

Deloitte’s Japanese-language website, for example, notes, “In our IR business group, we collaborate with our overseas member firms, which possess top expertise and rich experience, in order to provide services utilizing knowledge that has been accumulated globally.”

However, according to Masahiro Terada, senior manager of PwC’s Integrated Resort Team, the only real competitive advantage that the auditing-related consultancies have possessed is their ability to more effectively calculate potential gaming revenues. Tourist-industry related firms in Japan may have superior knowledge about tourism revenues, but they don’t have any clear idea how to calculate the gaming market, which lies at the heart of an IR project.

On the other hand, Terada notes that the practical reality is that the overseas experience isn’t necessarily all that applicable to the Japanese market. In the United States, for example, market size calculations can depend heavily on potential automobile traffic. Japanese,

NORTH ASIA 17

however, rely mainly on public transportation in a way that Americans generally do not. Most Japanese public transport stops operating at around midnight. These and other unique local conditions mean that “Japanese consultants must develop their own ways to calculate the market size.”

The fact of the matter is that since Japan is creating a new industry about which it has little previous experience, the top “expert consultants” themselves tend to have only a few years’ background in gaming-related matters, and they are thus are at best a step or two ahead of the local governments which they are advising. The possibility of receiving “low capability” consulting services runs rather high.

This lack of expertise is compounded by the fact that public employees in local governments tend to circulate to different departments every few years or so. Talented officials should not be expected to long remain where they are now, but rather to be promoted to unrelated but higher status posts.

High turnover Unless unusual steps are taken to rectify this aspect of the typical Japanese bureaucratic culture, most institutional knowledge that local governments may accumulate is likely to be bled away each April 1st as new work assignments are handed out.

IR operators have privately grumbled that it is difficult to find useful consultancy in Japan with only four firms in the field. They have understandable concerns that proprietary information provided to the consultancy companies might end up making it to the desks of competing operators, either because key employees might move to another firm or simply because the gaming consultancy community is presently too small for secrets to be effectively kept.

The advertising industry in Japan, with only two big players, Dentsu and Hakuhodo, presents similar concerns for the competing IR operators.

While it is possible for each consulting firm to set up more than one team under its roof to serve their various clients, concern about how high the walls are between these teams is likely to endure so long as so many local governments and IR operators are forced to knock on the same very limited number of doors as they shop for Japanese gaming expertise.

In time, of course, gaming industry consultancy in Japan will move beyond the walls of the four audit-related firms and will become richer and more experienced.

GROSS GAMING REVENUE GGRE 2030+ $25b (Source: CLSA)

GGRE 2025 $30b - $35b (Source: Spectrum Gaming)

Govt. sets chip reporting requirements The Japanese government indicated that operators are likely to be required to report any casino chip-cash exchanges that exceed 1 million yen (about US$9,500). Moreover, the players who make such exchanges will have their names, birthdays, and addresses recorded and passed on to the Casino Management Board. This is intended as an AML measure, particularly in light of the fact that Japanese newspapers have already reported that yakuza groups are considering how they might use casino chip-cash exchanges for the purposes of money laundering. This reporting requirement is said to be similar to regulations in Nevada and Singapore.

Consumer Association opposes casinos The Federation of Consumer Goods Industries & Consumer Associations, known as “Seidanren” in Japanese says it opposes the legalization of casinos which are likely to demean the country’s rich cultural heritage. Seidanren consists of 553 companies and associations with the stated purpose of securing items like clothing, food, and housing that are essential for Japanese to live stable lives. Seidanren’s argument is that becoming a casino nation will cheapen Japan and will make it less respected in terms of the high culture that Japanese have developed over the centuries.

Japan is not an impoverished nation with few resources, so the promotion of tourism should not be based on the same kind of strategies that might be apt for lesser countries, it says.

Asia Gaming Briefings | May 2018

NORTH ASIA 18

SOUTH KOREA

Signs of recovery seen amidst diversification efforts South Korea’s foreigner-only casinos are showing signs of renewed growth, helped by the Winter Olympic games and operator efforts to diversify their visitor base.

S

ales at the properties were hit hard last year after China banned tour groups to the country in protest at Seoul’s decision to deploy a U.S. anti-missile defence system. Beijing began relaxing that ban in November last year, though it’s unclear whether it has been lifted entirely.

According to industry data released by the Korea Casino Association, sales in January and February reached KRW204.8 billion (US$191.6 million), representing an increase of 15.9 percent from the same period last year.

The figures reflected a boost from additional visitors to Winter Olympics, which were held about 30 miles north of Kangwon Land, the only place in the country where locals are permitted to gamble. The state-owned resort had been widely expected to be a key beneficiary of the games.

However, the data also showed an increase in the number of visitors to the nation’s 16 foreigner-only casinos, up 1.6 percent in the first

Asia Gaming Briefings | May 2018

two months of the year to 366,000 - due mainly to increased visitors from Japan.

The number of Chinese visitors continued to decline, with a fall of 3.2 percent in January and 5.2 percent in February.

We are seeing a “turnaround this year, thanks to a steady increase of tourists from Japan.

”

“Chinese visitors are still the biggest group of customers at foreigner-only casinos, but their number continues to fall,” a casino industry official said. “We are seeing a turnaround this year, thanks to a steady

increase of tourists from Japan.”

The number of visitors from Taiwan also fell 16.7 percent in January but increased 32.3 percent in February, according to the data.

According to Korea Tourism Organisation figures, the number of Chinese visitors to South Korea plunged by 48 percent in 2017.

The sector makes up almost a third of its total tourism base.

Much of the optimism that had surrounded the expansion of the casino sector in the country came from the rising tide of tourists from China, for whom the K-pop phenomena and Korean culture hold a strong appeal.

Seoul is also just a two-hour flight from Beijing, making it much closer for travellers from Northern China than Macau.

The prospects attracted a flurry of interest from foreign investors, including Caesars Entertainment, the Mohegan Sun, Genting and Landing International.

However, an outbreak of Middle Eastern

NORTH ASIA 19

Interblock brings stadium games to Golden Crown Interblock placed its first electronic table games in Korea at Golden Crown Casino Daegu.

The installation is composed of a thirty-seat stadium offering two live baccarat games and one automated roulette that provides players the opportunity to play up to three games simultaneously. “We are very proud to bring our first electronic table games to Korea with our unique stadium product offering. This multigame configuration creates a great introduction to Interblock ETGs for both new and advanced table games players. I am confident Golden Crown Casino Daegu’s players will enjoy this new gaming environment,” said Michael Hu, Vice President of Asia. The gaming space is composed of thirty playstations with 27-inch monitors that allow players to wager on up to three games at a time; four LCD displays that show live game play, game history and trends; one live baccarat table equipped with two shoes that deliver two baccarat games; and one automated generator that delivers roulette.

Respiratory System in 2015 shut down the tourism industry, highlighting the risks of reliance on foreign revenue. The missile spat came just as the operators had begun to rebound.

Genting has since pulled out of its project on the southern island of Jeju, selling to its joint venture partner Landing. Caesars said it broke ground on its project in Incheon near Seoul’s international airport in August last year, though has given few further details on progress.

Mohegan Sun has pushed back the groundbreaking on its project, also near the airport, to the first half of this year, due to delays in receiving necessary permits.

“There is no doubt that, based on the designs, Project Inspire will be a “breakthrough,” one-of-a-kind resort for both Korea and the rest of Northern Asia,” it said in a financial filing. “We continue to target an overall project opening for late 2020/early 2021, and with the benefit of excellent demographics, a prime location, and what we believe will be a world-class development and operations team, we look forward to opening of what we believe will be one of the most iconic and successful integrated resorts in Asia and a game changer for our company.”

Meanwhile, despite benefiting from its proximity to the Olympics site, Kangwon Land still finds itself under government scrutiny following a hiring scandal. It was also told to reduce its opening times from 20 hours a day to 18 hours and will now be open from 10 am to 4 am.

Government fires 226 illegal Kangwon workers The South Korean government has decided to fire all 226 employees of Kangwon Land who were found to have obtained their jobs through nepotism. “President Moon Jae-in ordered the government to take swift and thorough measures against employment-related corruption at public organizations, best known by the Kangwon Land case,” Yonhap News cited Cheong Wa Dae spokesman Kim Eui-kyeom as saying. Last year, Kangwon Land admitted that between July 2011 and February 2014, 95 percent of all staff hired – some 493 people – were selected either for their political connections or because of their personal relationship to former CEO Choi Heung-jip.The probe into the casino operator, which is the only property in South Korea where locals are allowed to gamble, comes amidst rising frustration at youth unemployment levels. Local media reported that 22 of the 4,786 applicants whose job-seeking efforts were frustrated, have now filed suit against the company seeking 10 million won ($9,800) each in damages.

TOURISM ARRIVALS Monthly Visitors Arrivals in 2017 (in million) Jan.

Feb.

Mar.

Abr.

Mai.

Jun.

Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

1.25 1.00 0.75 0.50 0.25 0.00 (Source: Korea Tourism Organisation)

Asia Gaming Briefings | May 2018

NORTH ASIA 20

RUSSIA

Investors dodge tax bullet, discuss development plans Operators in Russia’s Far East have won a reprieve from a potentially punishing new tax regime and are now discussing further development plans with the government of the zone.

I

n November last year, President Vladimir Putin signed into law changes that allow Russia’s gaming zones to double the tax they charge as part of a plan that may see taxes surge tenfold by 2020. As part of those changes, the central government also announced it would force casinos to collect tax on client winnings, though did a subsequent U-turn on that measure following an outcry from the industry.

After listening to representations from operators, the government of the Primorye region, where the Primorye Integrated Entertainment Zone is based, chose to maintain the current tax regime to keep investors happy.

“Since the founding of the gambling zone, residents have invested about RUB11 billion (US$193.8 million) in the economy of the region, created a thousand jobs and about four thousand jobs in related fields,” vice-governor responsible for economy and finance Tatyana Kazantseva said. “The amount of taxes paid from the gambling zone is about RUB322 million a year. In order to provide stable business conditions, the regional Administration suggested not to increase these rates,” said Kazantseva in a statement.

Unlike most other jurisdictions, Russia does not levy tax on gambling revenue, but on each table and machine in operation.

Primorye currently charges RUB125,000 per table and RUB7,500 per slot machine and the relatively low fiscal regime has been a key draw for foreign investors.

The Primorye zone is currently host to Tigre De Cristal, the territory’s first gaming resort which opened in 2015. Two more major gaming and entertainment facilities have begun construction - including Selena, operated

by Diamond Fortune Holdings, and Naga Vladivostok, owned by Cambodian gaming company NagaCorp - both set to open in 2019.

Asia Gaming Briefings | May 2018

The local government met with investors earlier this year to hear their plans. Officials are said to be frustrated at the slow pace of expansion in the zone and want to speed up progress. The company charged with developing the zone is also planning to auction off new plots in the near future after suspending efforts to attract further investment last year.

Tigre De Cristal is the only casino in operation in the zone and its performance is improving after a slow start amidst regulatory uncertainty and geopolitical tension.

For 2017, Tigre de Cristal saw a gain of 32 percent in adjusted property EBITDA from HK$131.5 million in 2016 to HK$173.7 million in 2017. Net revenue from gaming operations was HK$434.1 million, driven mainly by a 33 percent gain in rolling chip turnover. Mass revenue was up just 13 percent.

In the past, management has expressed frustration at rampant illegal gambling in the zone, which is syphoning off local clients leaving the IR reliant on the foreign VIP. G1 Entertainment, the local operator behind Tigre De Cristal, told the government recently that it’s planning the second stage of the casino resort which will focus on nongaming facilities, with a rollout planned for the second half of 2019.

G1 is a unit of Oriental Regent, which is 60 percent owned by Hong Kong-listed Summit Ascent Holdings.

“We want to do more than we have already done,” G1 Entertainment executive director Stylianos Tsifetakis said. “Our management considers the development of the non-gambling sector to be promising and plans to create more entertainment facilities within the second phase. In our opinion, this will be useful both for the development of the gambling zone and for the social and economic development of the entire region. We plan that in summer the draft plan of our new entertainment complex

will be finally approved and we will be able to present it to the Primorye authorities,” said Tsifetakis during the meeting.

According to previously announced information, the second phase of the project development will include 500 hotel rooms, areas for negotiations, as well as restaurants and bars.

Tsifetakis noted that during the second stage of the construction, the expansion of the shopping area is planned, and the possibility of improving the site for sporting events is also being considered.

“We are considering the possibility of creating a golf club and a ski resort. These are the kinds of entertainment that will allow you to relax at Primorye all year round. In addition, our new Taiwan shareholder plans to create one of the largest shopping centres in the Far East in the seaside gambling zone.

He has already successfully launched the work of nineteen major shopping centres in the territory of mainland China and sees the prospect for the development of this direction in Primorye,” Tsifetakis said.

The decision to create a large shopping area was influenced not only by potential demand but also by the possibility of introducing a duty-free trade zone in the region, where foreign citizens would be able to get tax relief.

NORTH ASIA 21

GROSS GAMING REVENUE Tigre de Cristal net revenue 2016

$161.9m

$434.1m $385.5m

2017

H$181.4m $116.9m

rolling chip business

$132.3m

Mass table business

$98.6m

$120.2m

slot business

gaming operations (Source: Summit Ascent)

Azov-City closure reprieve?

The Russian government has reduced the size of the territory of gambling zone AzovCity, which investors view as a sign it won’t be closed as originally planned. The order to redefine the zone’s borders was issued on March 5, said Maxim Smolentsev, head of CJSC Shambala, which operates the Shambala casino in Azov-City. According to Smolentsev, the decree leaves only 34 land lots, of which the Azov-City Development Agency owns 78.2 hectares in infrastructure. Investors have 78.8 hectares, which mostly includes facilities already in operation: three casinos, hotels, restaurants, and concert venues. In January 2018, local residents wrote a letter to Russian President Vladimir Putin, asking him to save the zone, which has been scheduled for closure in Jan. 2019 to make room for another gambling zone in nearby Sochi.

Operators form professional association Casino investors in the Primorye gaming zone have decided to create a professional association of gambling companies of the Far East to protect investors and promote the development of tourism, according to the Primorsky Krai Development Corp. All companies that implement their projects in the resort will become members of the association. This is G1 Entertainment, Naga Corp (JSC Primorye Entertainment Resort City) and Diamond Fortune Holdings Ltd. The association will be led by Sergei Sidorov, Chairman of the Board of Directors of Diamond Fortune Holdings, and Stylianos Tsifetakis, CEO of G1 Entertainment.

Asia Gaming Briefings | May 2018

SOUTH EAST ASIA

22

PHILIPPINES

Rich prospects for VIPs China’s VIPs are once again driving gross gambling revenue across the region, with the Philippines tipped as being one of the best-placed jurisdictions to take a slice of the high-roller pie.

SOUTH EAST ASIA

I

23

n 2017, VIP revenue in Macau staged an from junket operators is also expected to rise unexpectedly strong come-back, gaining with the introduction of more junket rooms at 26.7 percent far outpacing the 10.4 percent Okada Manila through 2018. Yet, it will hinge growth in the mass market. However, since on the property’s ability to open up more hotel China’s crackdown on corruption VIPs are rooms to house these VIP gamblers. increasingly looking at alternative jurisdictions Although Okada is still ramping up and have increasing choice across Asia. its facilities, one of the advantages of the “Most Chinese travelers decide on a destina- Philippines is that its capacity is the largest tion depending on ease of access (visa rules) and in the ASEAN region, with over 2,000 gaming currency (strength of yuan vs. other currencies). tables, 20,000 slot machines around 5,000 Of course for VIP gamblers, these factors may integrated resort hotel rooms, and proxy be less influential. Instead, the biggest draw betting, according to Morgan Stanley. would be a unique, high-end experience that Although analysts are bullish on the would also offer retail, dining and of course Philippines’ VIP revenue prospects, they warn amenities catered possibly for families,” said there will be increasing competition, with casinos Margaret Huang, a research analyst at Bloomberg in Malaysia, Macau, Saipan and Cambodia, Intelligence, who spoke on a panel about VIP all adding capacity and improving facilities. gaming trends at the ASEAN Gaming Summit.

Despite the growing competition, Macau With the IRs in Manila’s Entertainment is not expected to lose its crown as the hub of City now nearing completion, analysts expect VIP gaming in Asia anytime soon.

VIP revenue to increase.

Fitch Ratings is pre“VIP is coming off a dicting 13 percent annual low base and growth in growth for Macau’s gross the Philippines reflects its gaming revenue this year, Risks of a continued ramping up phase,” driven by 16 percent growth slowdown in said Vicky Melbourne, head in the mass-market segment of industrials, property and 10 percent in the VIP proxy betting and consumer, South and segment, a significant could stem Southeast Asia, who also slowdown from last year. participated on the panel.

“Macau is the most from China.

“Low penetration and supply attractive market for Chinese additions will contribute to the VIP given the SAR’s proximity double-digit growth. As will to China and a critical mass favourable policies, improving China-Philippines of world class resorts,” Melbourne said. “Chinese government relations, visa on arrival status VIP’s also look for anonymity, lines of credit, and and proxy betting (through Macau junkets).” well established rules and regulations. Some other “However, Philippines VIP revenue is markets have higher commissions and more small compared to Macau and Singapore and flexible smoking and proxy betting rules, which this growth will be counterbalanced by strong may draw a certain subset of VIPs,” she added. competition in the region,” she said.

Vietnam, which is on the verge of a major According to data from Morgan Stanley, revision to its tightly controlled gambling laws, VIP revenue in the Philippines totaled US$1 could be another one to watch in the near future. billion in 2017, which compares with Macau’s “Vietnam’s opening of local gambling and US$16 billion and Singapore’s US$2 billion. pipeline of new casino resorts should also help to The firm forecasts VIP growth of 36 percent accelerate gaming revenue growth,” said Huang. in 2018 from the existing casinos.

Singapore’s two casino concessionaires Analysts argue much of the recent growth also suffered from the Chinese corruption has come from proxy betting. crackdown, with revenues falling as much “Proxy betting offers the casino operators as two-thirds between 2014 and 2016. With a an alternative revenue stream. Despite the new small local market, Singapore depends more regulatory framework announced in Oct 2017, on foreign visitors, which makes gaming under the AML, proxy betting continues to revenue more volatile. underpin the VIP segment,” Melbourne said.

Another reason for the drop is that “Risks of a slowdown in proxy betting could Singapore’s gaming laws are a lot more stringent stem from China, given its campaign to control than neighbouring countries. illegal capital outflows, and the strengthening “Singapore can not have junkets, so they of government relations,” she added. are using their own credit which means strong According to Huang, gross gaming revenue balance sheet is important,” said Praveen

Choudhary, managing director and head of Asia gaming/lodging at Morgan Stanley.

The drop in incoming VIP traffic led to the development of more accommodation options for budget travelers and the rise of non-gaming entertainment. Despite their woes, the two casino operators were estimated to account for between 1.5 and 2 percent of Singapore’s economy last year.

While the consensus is that the frontrunners are Macau and the Philippines, other countries such as Japan, Australia, South Korea, Cambodia, Singapore and even Thailand may present future competition.

Looking ahead, the future looks rosy. A recent report by Fitch stated “We feel VIP tourism across the region will continue to recover, and ongoing growth in mass-market gaming tourism will support regional expansion.”

“

”

e-Cafes to add live dealer products The Philippine Amusement and Gaming Corp is to allow the country’s eGaming operators to add live dealer table games to their product offering. In a statement posted on the Pagcor website, the regulator set out the accreditation process for live dealer studio and production facilities seeking to offer services to the gaming terminals of licensed electronic gaming sites. Pagcor said the license will be known as a Permit to Possess and applies to providers of a studio gaming setup. The cost of applying for the permit includes a PHP250,000 ($4,792) accreditation fee, valid for one year, with the renewal price set at the same level.

The Permit to Possess costs PHP1 million, also valid for one year, with a PHP1 million renewal fee. The memorandum also sets out a variety of other fees connected with the license. The content/streaming provider will be required to submit a certificate from a certified gaming laboratory that its product is blocked from any Philippine IP addresses other than those accredited by Pagcor.

Asia Gaming Briefings | May 2018

SOUTH EAST ASIA 24

Tiger Resort Leisure and Entertainment

Bloomberry Resorts

Okada Manila, owned by Japan’s Universal Entertainment, is the newcomer to Entertainment City, holding a soft opening for the resort in late 2016. At 44 hectares, the property is by far the biggest in the complex and the rollout of hotels and other facilities is continuing. At its completion of Phase One, Okada will have 994 hotel rooms and operate 500 tables and about 3,000 slots. Its centrepiece is the world’s largest coloured fountain, as well as a giant inner city beach complex, known as “Cove Manila”.

The casino floor will have about 500 table games and 3,000 electronic gaming machines, a 90,000 square-feet nightclub and beach club entertainment complex. It will also have an 8,409 square-meter retail promenade, a world-class spa and 40 restaurants ranging from casual, buffet, and international dining.

Okada recently expanded its sports book offering though an accord with platform provider FSB (UK), Paddy Power and Jade Entertainment and Gaming Technologies.

FSB will deploy its EPOS platform and trading tools alongside the Irish bookmaker’s trading team.

Bloomberry Resorts Solaire is a 16-hectare gaming and integrated resort complex along Asean Avenue in Parañaque City. The Bay Tower of Solaire consists of a casino with an aggregate gaming floor area of approximately 18,500 square meters (including approximately 6,000 square meters of exclusive VIP gaming areas), with approximately 1,400 slot machines, 295 gaming tables and 88 electronic table games.

Bay Tower has 488 hotel rooms and 15 specialty restaurants. Contiguous to the existing Solaire Resort and Casino, the Sky tower consists of a 312 all-suite hotel, additional ten VIP gaming salons with 66 gaming tables and 223 slot machines. It also includes a certified 1,760-seat lyric theatre.

The group reported record results for 2017, though its performance in the final quarter was held back by a low hold percentage.

For the year, Solaire’s gross gaming revenues grew 16 percent to PHP 44.52 billion.

Inclusive of a PHP407 million contribution from Jeju Sun in South Korea, the company’s gross gaming revenues grew 17 percent to PHP44.93 billion this year.

For the full-year. net profit came in at PHP6.06 billion, soaring 161 percent year-on-year.

City of Dreams

Resorts World Manila

The $1.3 billion City of Dreams Manila is owned by Belle Corp and Melco Resorts & Entertainment’s local unit. City of Dreams Manila has six hotel towers with approximately 950 rooms in aggregate, including VIP and fivestar luxury rooms and high-end boutique hotel rooms, a wide selection of restaurants and food & beverage outlets, a 4,612.44 square meters family entertainment center in collaboration with Dreamworks Animation, a live performance stage, two international nightclubs and a multilevel car park. It includes an approximately 260 room Crown Towers hotel, Hyatt City of Dreams Manila, a 365 room hotel managed by Hyatt International Corporation and Asia’s first Nobu Hotel with 321 rooms.

For Q4, net revenue at City of Dreams Manila was US$167.5 million compared to $144.7 million in the fourth quarter of 2016.

Adjusted EBITDA rose to $53.8 from $50.2 million a year earlier.

Rolling chip volume totaled $2.9 billion up from $2.1 billion with a win rate of 3.1 percent versus 3.5 percent in the fourth quarter of 2016.

Mass market table games drop increased to $189.2 million from $149.0 million, while the gaming machine handle was $793.3 million.

Travellers International Hotel Group, a joint venture between Genting Hong Kong and Alliance Global, is the owner and operator of Manila. The hotel room count for the group’s three hotels (Maxims Hotel, Remington Hotel, and Marriott Hotel Manila) remains at 1,226.

The property is currently in the third phase of its expansion. “This new facility will be called Grand Wing while the original facility will be called Garden Wing.” said Kingson Sian, President & CEO of Travellers. “The Grand Wing’s three hotel brands will open in phases beginning mid this year, with all three open by year end.”

Grand Wing will have three international luxury hotels – Hilton Manila, Sheraton Manila Hotel, and Hotel Okura Manila, adding approximately 940 rooms. It will also include new gaming and retail spaces, as well as six basement parking decks.

Further down the road, it will open the fourth and final IR planned for Entertainment City, which is scheduled to open in 2020. As the first IR in Manila, the company has built up a loyal base of customers, especially in the local mass market.

For 2017, net revenues declined to P19.3 billion (US$369.2 million) in the year, due

Asia Gaming Briefings | May 2018

mainly to a nearly month-long closure of the gaming area after the lone gunman attack June.

Gaming revenues fell to P17.1 billion, down 26.5 percent from 2016, while net profit reached P241.7 million, down 92 percent compared to 2016. However, while third quarter results were down as a result of the casino closure, Travellers reported a strong Q4 recovery, with a 5 percent increase in revenues from its non-gaming segment to P4 billion during the year driven by hotel and MICE operations.

GROSS GAMING REVENUE CASINOS GROSS GAMING REVENUES (in million PhP)

2016

PAGCOR (1c)

31,822 34,378

Entertainment City Clark

2017

87,101 109,384 13,403 7,043

Thunderbird

1,729 1,729

Total

134,056 152,554 (Source: Pagcor)

Filinvest gets go-ahead for $200m Clark casino The Philippine Amusement and Gaming Corp has given a provisional license to Filinvest Development Corp and its Mimosa Cityscapes unit for a $200 million IR project close to Clark International Airport. “Filinvest Mimosa + Leisure City is envisioned to become the lifestyle destination north of Manila. Its enviable location close to Clark International Airport makes it accessible to both domestic and international tourists,” FDC President Josephine Yap, was cited as saying. Yap noted that the company plans to work with a “leading casino operator” on the project, which will comprise a casino, a lifestyle mall, a five-star hotel and events venue. The project also includes the renovation of the existing Quest Hotel, the two championship golf courses and villas, the reports said.

SOUTH EAST ASIA 25

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140

140

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Asia Gaming Briefings | May 2018

SOUTH EAST ASIA 26

MALAYSIA

Ramp up seen as theme parks draw in crowds An increase in visitation is expected to drive gaming business at Resorts World Genting this year, although analysts say the two key attractions in its multi-billion dollar revamp are unlikely to be available until the end of this year.

G

enting Malaysia, the country’s only casino operator, is nearing completion of the Genting Integrated Tourism Plan, which included an upgrade to hotel facilities, more retail and casino space, the Skytropolis indoor theme park and a much anticipated outdoor theme park in a venture

with Twentieth Century Fox. The company expects to invest a total of RMB10.4 billion ($2.68 billion) in the project, more than double its initial projections.

Genting has operations in the U.K.; U.S; Bahamas and Egypt, though gets the bulk of its revenue from its Malaysian operations. It

Looking forward, management will “ tailor its marketing efforts to draw foreign visitation in FY18 when the indoor theme park is reopened in 2H and the 20th Century Theme Park opens in end-2018,

”

Asia Gaming Briefings | May 2018

says it expects the new attractions to pull in more tourists from home, but also plans to step up its marketing efforts to expand into regional markets.

“The completion of the GITP expansion will elevate RWG’s position as a premier integrated resort and destination of choice in the region,” the company said.

In Q4, Resorts World Genting attracted 6.7 million visitors, an increase of 34 percent on the same period last year, while its hotels enjoyed a 97 percent occupancy rate.

Revenue gained 11 percent in the period to RM2,544.0 million, however adjusted EBITDA was down 10 percent to RM669.6 million, due mainly to expenses related to the roll out of new facilities.

“Looking forward, management will tailor its marketing efforts to draw foreign

SOUTH EAST ASIA 27

GENTING MALAYSIA 2017 Gaming Tables (units) 2015A

550

2016A

550 700

2017A 2018A

750

2019A

750

Slot Machine (units) 2015A

3600

2016A

3600

2017A

4000

2018A

4500

2019A

4500

(Source: AllianceDBS)

visitation in FY18 when the indoor theme park is reopened in 2H and the 20th Century Theme Park opens in end-2018,” TA Securities said in a note. “More importantly, we expect the increase in visitation to drive the gaming business volume higher this year.”

AllianceDBS said the results were better than it had been expecting, though it cautioned that it may take longer than expected for the group to optimize the return on the GITP, especially given the late rollout of the key attractions.

“Stronger-than-expected visitation and higher-than-expected return from its GITP investment could provide upside potential to our earnings forecasts,” it said.

The brokerage estimates visitation in 2019 is likely to hit 25 million, up from 21.7 million in 2017.

The group has been progressively rolling out upgrades since the end of 2016, when it launched its Sky Avenue and Sky Plaza shopping malls.

It opened the Genting Highlands Premium Outlets in June last year and opened all levels of the Sky Casino by Q3 2017. The first and second floors cater to mass, while third and fourth are reserved for VIP visitors.

“We believe that the RM10.4 billion GITP makeover will come with 200 new gaming table capacity situated in Sky Plaza, up 36 percent from 550 gaming tables currently,” AllianceDBS notes.

Tourism Malaysia and Tencent to create digital ecosystem Tourism Malaysia has teamed with Tencent Holdings to create a digital tourism ecosystem in Malaysia aimed at boosting tourism numbers to the Southeast Asian nation. Malaysia Smart Tourism 4.0 will help the country reach Chinese residents using precision marketing methods, such as market segmentation and targeted advertising, local media reports. “The world is now undergoing the so-called fourth industrial revolution which will see growth being driven by huge amounts of data exchange, advancements in technology and the development of high-tech interfaces,” the reports cited Tourism and Culture Minister Datuk Seri Nazri Aziz as saying. “For the tourism industry, this will have a huge impact on how people travel and in this new demanding environment, tourism-related businesses must either transform the way they operate or lose out on opportunities.”

Berjaya revenue driven by auto unit Berjaya Sports Toto, a Malaysian lottery company and car sales dealer, said its Q3 revenue edged up 2.7 percent as higher sales at the auto unit offset lower revenue from its Malaysian and Philippine lottery operations. Overall group revenue came in at RM 1.40 billion ($357.6 million). Revenue at its Sports Toto unit fell 3.3 percent, partly because the same period last year was boosted by the timing of the Chinese New year and a higher number of draws. Net profit gained 23.6 percent to RM63.1 million, with the results helped by a 19.6 percent gain in pre-tax profit at Sports Toto due to lower prize payouts and operating expenses, despite the lower sales. Results from the Philippine Gaming Management Corporation were hit by the unfavorable exchange rate between the Philippine peso and Malaysian ringgit.

Asia Gaming Briefings | May 2018

SOUTH EAST ASIA 28

SINGAPORE

STC initiatives fire up racing prospects Singapore Turf Club, under new leadership, has embarked on a series of initiatives to help racing in the island state return to its glory days, with a focus on on-track product and attracting international talent.

C

hong Boo Ching took over from long-term president and CEO Yu Pang Fey in March last year and has been quick to make his presence felt, raising optimism amongst industry participants that Singapore may be able to rejoin the race with regional rivals.

While Asian giants Hong Kong and Japan, with heavily protected pari-mutuel models, have remained immune to the challenges facing racing in other parts of the world – most notably plummeting betting handles and dwindling crowds – Singapore has suffered through more than a decade of decline.

Even Korean racing, boosted by a similar system to Japan and thus steadied by a stringent government structure, has built a massive gap in betting figures ahead of Singapore.

In 2009, racing in Singapore looked relatively healthy, helped by a champion horse called Rocket Man, a gifted jockey named Joao Moreira and blessed with a modern facility at Kranji.

Business wasn’t quite booming, but most experts felt the future of the sport looked bright in Singapore, with betting turnover robust by world standards and solid spectator figures.

“In 2009 and 2010 racing was really buzzing in Singapore,” said Peter Twomey, an industry expert and bloodstock agent who spent the best part of a decade based in the city.”When I relocated from Australia, horses like Rocket Man had become household names.”

The biggest challenge for the STC arrived in 2010 with the introduction of Singapore’s first two integrated resorts, Marina Bay Sands and Resorts World Sentosa, giving the club far more competition than Hong Kong or Japan faced at the time.

By 2013 Rocket man had retired, Moreira had bolted for greener pastures in Hong Kong and betting numbers were falling at an alarming rate. Meanwhile, the casinos were already among the most profitable in the world.

In 2010, International Federation of Horse Racing figures stated Singapore turned

Asia Gaming Briefings | May 2018

over in excess of US$1 billion annually, but by 2014 the handle had dropped nearly 40 percent to $716 million.

Prize money was down too, plus the number of races and quality of the horse flesh had fallen considerably. This lack of competitiveness was epitomized by overseas dominance in Singapore’s flags hip races, which were eventually dropped from the schedule after Hong Kong horses dominated the two invitational races for the second straight year in 2015.

Then the STC had to withstand the effects of the 2014 Remote Gambling Act, which in theory should protect racing’s interests, but arguably made promoting the sport even harder in an already tightly controlled environment.

Singapore may not enjoy the same advantages as Hong Kong, Japan and Korea, but Twomey believes an improving on-track product and a fresh outlook from incoming leadership can revitalize racing in the Lion City.

One of Chong’s first moves as chairman was announcing three initiatives aimed at lifting the profile of the sport and boosting betting and the bottom line. A restructure of the racing calendar and system; a boost in prize money at top level to encourage owners to spend more on better horses and, perhaps most importantly, the reintroduction of international racing.

The return of international racing to Kranji is the initiative that has attracted the most attention.

Convincing some officials, and in particular owners and trainers, to pay for overseas horses to come to Singapore can be a hard sell – especially when year-after-year the visitors prove far superior to local horses and dominate the races.

In the early days of Hong Kong racing there was local resistance to the idea of international visitors competing, but experience there has shown at Sha Tin that invitational races boost turnover by creating foreign interest and broadening the local race fans’ knowledge.

At first the two international races, worth more than S$4 million combined, were set to return in the third weekend of May 2019, but a further announcement was made that four horses would be invited for this year’s Group One Kranji Mile.

“I’m a firm believer in the need for aspirational races for connections to aim towards. “The night Dan Excel and Aerovelocity claimed the Group 1 double at Kranji in May 2015 the whole place was buzzing and it will be great to get back there for the same atmosphere and feeling in 2019.”

To curry favour with local connections threatened by the dominance of the overseas raiders, the STC will offer incentives to Singaporean-trained horses, with a bonus of S$100,000 to the first Singapore horse past the post in the Kranji Mile and S$50,000 to the second.

SOUTH EAST ASIA 29

Former champion jockey and now trainer Saimee Jumaat was one local to speak up in favour of the reintroduction of the big money events.

“It will do Singapore racing a world of good,” he said. “For sure, the level of competition is going to be higher, we get to benchmark our horses against international ones... and it will benefit the local market.

“And, with the loss of international races in the last few years, having them back will bring back the exposure to Singapore, too.”

Like paying overseas horses to come and compete in Singapore, dropping 100 races from the annual schedule, from 900 to 800, may seem counterintuitive when it comes to building betting turnover.

But there is method to the apparent madness – fewer races can actually equate to more money – with worldwide studies showing that reducing the numbers of races increases the runners per race and that larger field sizes are a key driver of wagering.

“There are fresh and enthusiastic faces in important positions at STC, like B.C. Chong and Alan Ow (STC Vice Chairman of Hospitality), who seem to understand the changes necessary to boost the profile of the sport among Singaporeans,” Twomey said.

“Ultimately, if racing can build its profile, there is opportunity to draw back punters and boost betting pool sizes.”

GROSS GAMING REVENUE

More Singaporeans gambling

Genting

More Singaporeans are participating in gambling compared to three years ago, according to a survey by the National Council on Problem Gambling (NCPG). The survey, which is run every three years, showed that 52 percent of Singaporean residents aged 18 had participated in at least one form of gambling activity last year, up 8 percentage points compared to 44 percent in 2014. The median betting sum was $30, up from $20 in 2014. The increase in gambling participation was attributed to an increase in gambling among the Chinese population as well as players of 4D, Toto and social gambling, said NCPG. However, the number of calls and web chats to the Problem Gambling Helpline dropped to a five-year low in 2017.

Q4 revenue S$580m ($442.8m)

+4.0%

Gaming revenue $417.5m

+5.0%

Adjusted EBITDA $255.1m

+9.0%

Marina Bay Sands Q4 revenue $825m

+14.1%

Casino revenue $652m

+15.8%

Adjusted EBITDA $456m

+24.6%

Tan Tee How to lead CRA Singapore’s Casino Regulatory Authority has promoted Deputy Chairman Tan Tee How to chairman, taking over from Lee Tzu Yang from April 2. “I would like to thank Mr Lee Tzu Yang for his valuable contributions to CRA over the past three years,” K Shanmugam, Minister for Home Affairs and Minister for Law, said in a statement. “He had guided CRA in its efforts to further strengthen Singapore’s casino regulatory regime and forge closer ties with international partners. Under his leadership, CRA has enhanced its standing as an effective and robust regulator,” it said. Tan is a career civil servant and became commissioner and CEO of the Inland Revenue Authority of Singapore in 2014.

Asia Gaming Briefings | May 2018

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Kicking sports betting regulation over the finish line With two major events on the doorstep in the sports betting world, we take the chance in the focus section of this edition of Asia Gaming Briefings to examine some key trends in this growing gaming sphere.

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he 2018 FIFA World Cup will kick off in Russia next month and is expected to fuel a surge in gambling worldwide, both through legal and illegal channels. Within Russia itself, bookmakers are expecting monthly volumes to be 80-138 percent higher than usual.

Though as we discuss in this focus series, Russia’s bookmakers fear they will lose out during the tournament, with bureaucratic red tape likely to deter punters. Although some changes to the law are in the works, the industry fears they will not be passed in time to capture the World Cup traffic.

Despite the excitement of the tournament, there’s another date in the calendar that industry participants are waiting for that will have far wider repercussions. The U.S. Supreme Court is scheduled to rule before the end of June in a case that could result in sports betting being legalized for the first time in the U.S. The American Gaming Association estimates that the current illegal market there is worth some $150 billion.

Some leading industry figures have postured that the legalization of sports betting in the U.S.

Asia Gaming Briefings | May 2018

will trigger a domino effect, with Asian countries likely to grind into action with their own regulation.

Our first article in this series studies the likely spin off effect on Asia’s massive and booming market to examine whether these hopes are founded.

We also look at the world of horse racing and how Asia’s key racing jurisdictions, Hong Kong, Korea and Japan, are moving to make their product more relevant to the younger generation. The HKJC is one of the most successful clubs in the world and has been introducing new technology and club-style lounges to increase its appeal. However, even here, the club faces challenges from rising illegal online gambling.

And lastly we go to India, where a recent sports betting seminar discussed the possibility of potential legalisation of the giant untapped market. Illegal gambling there has been rife, coupled with highprofile match-fixing scandals among its revered cricket players.

Proponents are arguing that a properly regulated and legal gambling industry would help generate revenue for the government and help to prevent further scandals.

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Asia Gaming Briefings | May 2018

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Will U.S. Supreme Court’s sports betting decision affect gambling in Asia?

When in 2016 the U.S. Supreme Court accepted to hear the appeal in the Christie v. National Collegiate Athletic Association case (later renamed Murphy v. National Collegiate Athletic Association) no one expected New Jersey ever to be allowed to offer sports betting to its residents.

F

or years New Jersey had sought to challenge Nevada’s monopoly on legal sports betting, eventually passing legislation allowing the Garden State’s casinos and racetracks to accept bets on sports events played outside the state and not involving state’s college teams.

It was a decision that caused professional sports leagues NFL, NBA, MLB and NHL as well as college sports association NCAA to sue under Professional Amateur Sports Protection Act (PASPA) to prevent sports betting in the State.

In court hearings, New Jersey admitted that its

Asia Gaming Briefings | May 2018

proposed sports betting regulations violated PASPA, a federal law passed in 1992 permanently outlawing sports betting in all but four states: Nevada, Montana, Delaware and Oregon.

In its defence, New Jersey argued that PASPA was against the Tenth Amendment, preventing the federal government from forcing states to enforce federal laws.

Along the way, New Jersey’s received the support of several other US states, many of which started working on their own set of regulations to allow for legal sports betting in case of a favorable Supreme Court ruling.

A possibility no longer remote after the presentation

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That, however, is not as practical as indicated eventual sports betting revolution in Asia, by the wishful thinking of industry stakeholders. is in a similar situation, with a monopoly in In mainland China, where sports lotteries the hands of Macau SLOT. The Sociedade de Lotarias e Apostas have the monopoly on all sports betting activities, the illegal market is understood to be many Mutuas de Macau currently accepts bets on football and basketball at a handful of times larger than the regulated market.

For a system built around betting on locations as well as via phone and through credit through agent sites, the primary a somewhat old website from players that are within the city limits. challenge will not be Having overtaken new sports betting laws, Las Vegas as the casino but the introduction capital of the world, Macau Asians are of readily available has shown little interest payment solutions and not as worried in sports betting. Only a significant shift in about regulation when it has experienced the cultural approach. a slowdown in casino Changes necessary to as operators are revenue growth, there the creation of a new in Europe, has been speculation system where players around the opening up place bets directly with of the sports betting regulated bookmakers. market as a way to raise “Asians are not as worried about regulation as operators are in additional revenues.

Many local industry operators have for Europe,” said one executive at a major sportsbook software provider who did not wish to be named. years tipped the addition of Vegas-style “All you need to operate a sportsbook in Asia sportsbook lounges at land- based casinos in Macau as a way to complement casino is a PAGCOR license,” he added.

State-owned Philippine Amusement gambling and to target new demographics.

Very similarly the Hong Kong Jockey Club and Gaming Corporation (PAGCOR) and the Cagayan Economic Zone Authority has a monopoly on horse racing and football license 100s of offshore Asian-facing online betting in the Special Administrative Region.

Despite the availability of a regulated betting bookmakers. PAGCOR also serves and licenses local operators that accept betting offering, sports bettors in Hong Kong gravitate on horse racing, jai alai, cock-fighting and towards illegal and offshore bookmakers in basketball, making the Philippines Asia’s high numbers, proving, that the opportunity primary igaming jurisdiction and fastest- to bet on credit on a more substantial number of events and at more competitive odds is a growing regulated sports betting market.

“Even if you introduce regulations, what powerful motivator.

Elsewhere, Islamic law governs Indonesia is going to stop players from placing their bets with black market operators offering better and Malaysia, strictly prohibiting most types odds on the few selected sports that bettors care of gambling, although the local governments about. (soccer in South East Asia and cricket are not necessarily putting many efforts into in India),” another industry participant said. stopping residents from accessing offshore “Only way to stop that would be a law like the betting sites.

In a similar situation are bettors in Buddhist one passed in Singapore. Making bettors liable to jail time if they bet on illegal sites,” he said. Thailand, where all forms of sports betting are However in Singapore the state-owned prohibited, except for betting on horse racing.

While there is no doubt that a repeal of tote operator, Singapore Pools, has been operating since the late sixties and all it did PASPA will change the US sports betting market in recent years was to extend its offering to forever, industry observers say that it will have a limited effect on sports betting in Asia. include online sports betting.

Nevertheless, the experience of the citystate is very telling: despite having the ability to place bets at one of many betting outlets or via “For 10 years, Pierluigi ran operations at phone or online, Singaporeans continue to turn BookmakersReview.com, the site he founded en masse to the black market for their sports in 2003 and where he regularly wrote about the bets. Not a week goes by without a report of igaming industry. More recently, he managed arrests for illegal sports betting in the city-state gambling domains marketplace GamblingInvest.

Macau, the other candidate to lead an com and served as Editor at BookmakerList.com.

“

”

of the oral arguments to the SCOTUS last December reportedly went in favor of New Jersey and against the sports leagues.

After arguing for years that prohibiting sports betting was essential to preserve the integrity of their games, the sports leagues first embraced fantasy sports and then completed a 180° turn when they started lobbying state legislatures with their preferred forms of sports betting regulations.

Now if the Supreme Court overturns PASPA, as many as 32 US states are expected to legalize sports betting within the next five years. But the ramifications of such a groundbreaking decision would extend well beyond the US borders, with industry observers believing the radical decision is likely to trigger a domino effect with far-reaching consequences.

Will Asia follow suit?

Speaking to Forbes earlier last month, David Leppo of FootballBet.com, stated: “If sports betting in the U.S. is legalized, others will fall in line.” Several other industry commentators have spoken publicly in recent weeks claiming that Asian countries would follow suit, legalizing and regulating sports betting in the coming years.

Asia Gaming Briefings | May 2018

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Red tape kicks World Cup prospects Russian bookmakers are hoping for a bonanza from the FIFA World Cup, which will be held in the country less than two months from now, but many fear regulatory hurdles and slow-moving legislation will mean that legal operators will lose out.

A

ccording to Rosturism, the Russian tourism agency, about 1.5 million tourists will flood into the country during the tournament, with many of them likely to seek a flutter. However the current laws do not

Asia Gaming Briefings | May 2018

facilitate bets and may even prove a deterrent. This was one of the concerns voiced at the Betting Trends Forum in Moscow in early April.

Amid the ongoing crackdown on illegal online bookmakers, with hundreds if not thousands of websites

FOCUS 35

being blocked on a weekly basis, potential punters have little choice to either go to a physical betting shop or to play with legal online bookmakers.

However, to do this punters need to go through a complex identification process that is likely to be particularly daunting to foreign players.

As a result it may mean that their money goes to well recognized foreign brands, which mostly do not have any official presence in Russia.

Gambling expert Araik Tonyan, who heads the Bookmakers Rating analytical website, estimated the annual turnover of the

Russian bookmaking market at 700 billion roubles ($11.4 billion) and the number of players at 2.5 million. According to special research presented by the website in December 2017, the volume of bets during the World Cup will be 80-115 percent more than the average volume of bets on football a month, but it did not give precise figures.

Speaking at the conference, he pointed out at several major problems facing Russia’s bookmakers, starting with the size of the illegal market, which he said makes up about 65 percent of the total volume of bets. He also pointed to the complex identification procedure for players and a lack of a clear state strategy for regulating the industry.

Under the current system to make a bet, double registration is required, both with the actual bookmaker and with an e-bet processing centre, known as a TSUPIS. Currently, there are two TSUPISes run by two rival bookmaker self-regulating organizations.

Tonyan welcomed a law banning money transfers to illegal bookmakers that will come into force just ahead of the World Cup, but also called for foreigners to be exempt from the requirement for offline identification.

According to gambling lawyer Maria Lepeshchikova, the government has shown little enthusiasm for promoting regulation to benefit the industry. “It’s is obvious that in the current political background the state doesn’t want the bookmaking business to develop” and “no liberalization could be expected,” she said.

She pointed out at several inconsistencies in the law, which are working against Russian bookmakers.

For example, under Russia’s anti-money laundering law a player only needs to be identified if they bet more than than RUB15,000 ($243). However, in reality, that person needs to physically present a passport in a bookmaker’s shop before being able to make a bet.

This makes it impossible for Russian bookmakers to operate online only, because they need to set up centres where client identification can take place.

Participants at the Betting Trends Forum said lifting of the double identification process and replacing it with single identification with a TSUPIS only was key obstacle to growth. There is a bill tabled in the Russian parliament that aims to address the issue, but it will only be considered in June, so is unlikely to be in place before the World Cup kicks off on June 14th.

But there are also some initiatives which may help Russian bookmakers if they are properly implemented.

For example, a law which forbids banks and paying agents to process and transfer money to illegal bookmakers - both Russian and foreign - is expected to come into force just before the World Cup in late May. Lepeshchikova pointed out that this law may be bypassed by using a third-party websites, however this would increase the price of a transaction.

Russia’s recent decision to double taxes on bookmakers is also having an impact on bookmakers in the country, whose numbers had been expected to rise ahead of the soccer tournament. In January there was a 1.5 percent year-on-year increase to almost 7,000 betting shops, however that slid to 6,349 in March as regions around the country began actively enforcing the tax increases.

Currently, there are five active gambling zones in Russia: Primorye situated 50 kilometres from Vladivostok, Azov-City in Krasnodar Territory, Yantarnaya (Amber) in Kaliningrad Region, Siberian Coin in Altai Region and a zone in Sochi. The one in Crimea currently exists only on paper, with local authorities constantly delaying its opening and changing its potential location.

Out of all Russian gambling zones, the ones near Sochi, Rostov-on-Don and Kaliningrad – all situated in western Russia – are likely to benefit from the tournament as they are situated relatively close to the stadiums where games will be held. The zones in the east – Primorye and Siberian Coin – will likely be below the radar of punters as no games will be held there throughout the World Cup. Before the start of the World Cup, it was reported that the Russian oldest gambling zone Azov-City in Krasnodar Region proved to be less popular than its younger competitor, Krasnaya Polyana in Sochi, at the ratio 50,589 vs 39,722 visitors.

Yantarnaya is just 30 minutes away from Kaliningrad, where four games will be played.

It is said to have attracted 15,000 punters monthly as of the end of 2017.

The zone in Sochi has demonstrated steady growth despite initial pessimistic forecasts, having received 340,000 clients in 2017, and deputy manager of its only casino Dmitry Anfinogenov expecting this figure to rise by 25 percent in the coming years.

None of the zones observed appears to be offering special events dedicated to the World Cup.

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Racing to win the millennials Attracting younger demographics has long been the challenge for horse racing and Asian racing clubs are leading the way when it comes to ensuring they corner the hard-to-catch, but much sought after millennial market.

B

aby Boomers, those born from 1946 to the mid-1960s, grew up in an era when horse racing was at the forefront of public consciousness and on the back page – or even front page – of newspapers. It was the sport of kings and jockeys, trainers and horses were household names and crowds crammed into racetracks to watch their heroes and, of course, bet.

Then began a sharp decline in popularity for the sport – at least in the west – with different gambling and entertainment options attracting the attention of Generation X (children born in the late sixties and through to the seventies).

Asian racing, with its gambling monopolies and structured administration, has been spared much of the damage done in the west but the challenges are still mounting as the internet facilitates the growth of sports betting and other online gaming options.

There is a sense that the generation born between 1982 and 2004, known as millennials – or generation Y – would rather bet on football or even eSports.

At least one expert believes that almost all of horse racing’s marketing resources should be focused on attracting millennials, a demographic that by 2025 will represent three-quarters of the global workforce.

“Racing missed generation X, so I think we have to just forget about them, that was an opportunity lost, and make sure we don’t miss the millennials,” said Singaporebased South African Gareth Pepper, a global racing expert and director of Pepper Equine Management.

Part of Pepper’s mission is to bring millennials to the racetrack and have them enjoy the whole experience – and he believes it is more than just beer and music that is required.

“Those entertainment options are fine to get them to the track, but what about getting them to come back?

Unless people feel like they have a connection with the sport and some understanding of what is happening then they aren’t going to want to participate, either through placing a bet or horse ownership,” he said.

Of course the “beer and music” model has worked successfully in Hong Kong, where the Happy Wednesday promotion has brought punters back to the track in droves.

It helps that the iconic Happy Valley Racecourse is situated minutes from downtown Causeway Bay, one of the most heavily populated commercial districts in the world.

Happy Valley is now heaving with fans, live bands, cheap beer and a festival atmosphere. It has ensured

Asia Gaming Briefings | May 2018

that the “Beer Garden” is now packed every week, but it wasn’t always that way.

Getting the kids to the track is one thing but the Hong Kong Jockey Club has attempted to parlay the presence of youthful faces into betting turnover in a range of ways.

Themed nights have included “digital night” where punters were able to experience racing through the eyes of a jockey through a simulator that included a mechanical horse and virtual reality headset.

The Jockey Club also employs “racing experts” – many of them attractive young women – who can explain how to place bets and just as importantly, explain what is happening on the track.

“If people can’t understand the sport, or develop a passion for it it, then why would they want to keep betting? Without that understanding, they are just as likely to play a casino game or bet on sport, something they have an emotional attachment to,” Pepper said.

As such, the Jockey Club has strived to improve the racetrack experience at both Happy Valley and Sha Tin, with its “customer segmentation” marketing strategies creating restaurants and whole sections aimed at younger fans.

This season the Jockey Club launched “Jump”, a cafe featuring upmarket decor, plus touch-screens and tablets that enable fast access to racing information on betting accounts.

Similarly, Sha Tin’s “Digital Zone” is a space designed for younger, tech-savvy fans to enjoy the sport in spacepoor Hong Kong, a town where cramped apartment living means watching at home might not be an option.

The Korean Racing Authority is restricted in how it can promote the sport, among other serious obstacles, in a country where anti-gambling lobbyists hold considerable sway.

At Seoul Racecourse the KRA has not only organized regular appearances from leading K-Pop groups and thrown the gates open for free at times, but provides a space for young couples to enjoy the races away from the smoke-filled public section.

Seoul’s salubrious NOL Lounge, with padded sofas, desserts bars and spacious surrounds feels more like an upmarket shopping mall than a racetrack.

Customers are kept connected with super-fast wi-fi and tablets that are available to rent for free and provide information on the sport.

In fact the only way to bet in the NOL Lounge is through

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an app, there are no cash windows, adding to the modern “non traditional racetrack” atmosphere.

For those just starting out, the NOL Lounge also features 200 seat auditorium that holds “how to bet” lectures before each race, with each seat fitted with a tablet and betting apps.

In Japan, the Japan Racing Association has not only targeted younger customers, but made a special effort to attract female fans.

The JRA’s UMAJO promotion which features female-only sections of the racetrack brought more than one million girls to the track in 2016.

The JRA is also big on educating inexperienced racegoers through the Umabi promotion and

social media platforms, which provide detailed explanations of how racing works, but without an overt emphasis on gambling.

Asian racing expert Adam Lux from Asia Racing Hub says the JRA provides a familycentric atmosphere that is unrivaled in the region.

“The JRA caters for each member of the family,” Lux said. “Dads can place their bets, moms can participate in UMAJO events while the kids are kept entertained at on-course amusement parks.”

Of Asia’s “big four” racing jurisdictions, Singapore Turf Club may face the biggest challenges when it comes to promoting the sport

millennials – or any age group for that matter.

Severe restrictions on signage and advertising mean getting the message out to the general public to raise the profile of the sport is almost impossible.

That’s where Pepper’s group have stepped in, working on a platform that aims to bring the sport to the masses.

“We can talk about and promote the sport in a way the club can’t,” Pepper said. “We are also trying to create pathways to ownership for young people and when we bring them to the track it’s about educating and helping people feel involved.”

Asia Gaming Briefings | May 2018

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Regulatory uncertainty continues to cloud prospects In late February, gaming industry stakeholders converged in Goa at one of India’s first gaming specific conferences: Sports Betting & Gaming India (SBGI). The event, led by Eventus International at the Park Hyatt Goa Resort and Spa, was well attended considering the gaming market is largely in its infancy.

O

ver 150 attendees discussed several Indiaspecific topics, including the market’s value and potential from an online, lottery, sports betting, and land-based perspective, as well as the regulatory and legislative hurdles involved to expand the market. These types of events have become a necessary first step for stakeholders to understand an emerging market’s value and provide guidelines on how to participate.

As Japan and Brazil have taken the mainstage and much of the attention at other industry events, this India specific event allowed participants to educate themselves about the existing and potential gaming opportunity in the market. The conference also provided attendees with one of the first opportunities to hear from various experts focused on recent market developments in India.

While the conference’s attendance was dwarfed by other recent industry events in Macau, London, and Las Vegas, the intimate setting allowed for meaningful discussion

Asia Gaming Briefings | May 2018

and a summary of the uncertain future in one of the world’s largest remaining untapped gaming markets.

Online, skill-based cash games, including rummy and poker, are currently allowed in several states in India.

The legality of these games is primarily due to ambiguous regulatory environments. However, certain states have taken steps to define regulations. In Telangana, no online, skill based games are allowed. In Maharashtra, the Bombay High Court recently declared that poker is not a game of skill, effectively outlawing online poker in the state.

In addition to that ruling, Maharashtra’s Minister of State for Home, Dr. Ranjit Patil, recently stated that the government is planning to introduce new legislation to further address online gaming in the state. In other states, like West Bengal and Karnataka, poker has been included as a game of skill and operators are vying for the wagers of patrons in those markets today.

Sports betting remains illegal in every state, but several stakeholders are working to change that. In an

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attempt to capitalize on the market, a few state agencies have been evaluating legalization since 2008. Nationally, the Law Commission of India has spent the last year and a half reviewing the potential impact of nationwide legalization of betting and gaming in an effort to provide a recommendation to the government. The Law Commission’s initial thoughts on the subject were positive, but recent findings have indicated that the Law Commission is mainly considering legalization in a highly restricted and controlled environment.

As a recommendation has still not been made, the Law Commission recently received a Right to Information (RTI) query. In response, the Law Commission stated that it has no timeline for the issuance of a recommendation, but some experts expect a response could come this June or July. Even so, stakeholders are wary that a recommendation, let alone a positive one, will actually occur. If a positive recommendation is made, pundits fear that it will come with too many restrictions, limiting the market’s potential.

Regardless, a positive recommendation would still need to be approved and accepted by the government.

In Goa, the government has committed to moving the market’s offshore casinos on to land. This move onshore would allow for the first large scale, land-based casinos in India and could provide operators with an opportunity to develop a more attractive product with non-gaming amenities that appeal to the casual gamer and non-gaming patrons.

The policy is still awaiting the approval of the cabinet and legislative assembly.

With political uncertainty in the state, it is still unknown as to if and when the casinos will be allowed to relocate onshore. Meanwhile, all of Goa’s casinos will soon face a hike in licensing fees, with costs expected to jump 2.5 to 4.5 times in comparison to current levels.

In Daman, Delta Corp. Ltd. is still working to garner a gaming license for the 176-room resort it recently opened. It is still unclear whether Delta Corp. Ltd. will eventually receive it.

Several other states are currently contemplating

the land-based gaming opportunity and are taking preliminary steps to discuss the 1867 Public Gaming Act and alternatives, but have not made significant progress.

While the market in India still seems far from presenting large opportunities to major industry stakeholders, existing market movements in India, as well as in other markets like Japan, have created some momentum in the marketplace.

Stakeholders have taken hold of that momentum and have begun to implement strategies to mobilize public opinion. As market developments continue to occur, stakeholder interest will grow due to the immense market opportunity.

However, with a cloud of uncertainty covering the market, stakeholders will need to continue to rally at events like SBGI before India finds a place on the gaming industry’s mainstage. *Kit Szybala is a Partner and the Executive Director of Operations at Global Market Advisors. He can be reached at kszybala@ globalmarketadvisors.com.

Asia Gaming Briefings | May 2018

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SOUTH ASIA

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Mahjong Casino raided for local gambling

NEPAL

Silver Heritage experiences opening hiccups Silver Heritage held the gala opening for its Tiger Palace Resort in March, though the IR has run into problems with a former partner and the country’s bureaucratic licensing regime.

T

he two-day long opening celebrations included Bollywood and international artists, including Bollywood dance sensations, Natasa Stankovic and Poonam Pandey.

Tiger Palace has its eye firmly on the potential of neighbouring India with its large and rapidly expanding middle class and its high propensity to gamble. The immediate target market for the resort comprises of the more than 15 million aspirational middle-class Indian citizens living within six hours of travel from the resort, in states including Delhi, Uttar Pradesh, Bihar and West Bengal.

Spread over 22 acres of land, Tiger Palace Resort offers 100 guest rooms and suites along with two private villas, offering views of the mountains and forests surrounding the resort.

It also features 2,500 sqm of live gaming with 44 gaming tables and more 200 electronic gaming machines.

The resort’s amenities include various F&B outlets, a large swimming pool, and a dedicated kids club with a wide array of entertainment options for children.

It features a spa, gym, meetings and wedding spaces, including a ballroom and an expansive function lawn that can accommodate up to 1,000 guests.

The resort also features a 100-yearold Rana temple.

However, recent months have not been

Asia Gaming Briefings | May 2018

without problems, with the group finding itself in a legal row with a former partner and running afoul of the country’s licensing laws.

The group terminated the contract of its former partner Rajendra Bajgain after he accused management of illegal hiring practices. The executive is now seeking compensation from the company and the case is before the courts.

The Australia-listed group said its confident that the consultancy agreement with Bajgain was validly terminated and has agreed to discussions to settle disputes without the need for further court action.

The company also ran into issues over liquor licenses, with the Inland Revenue Office seizing cases of liquor from the casino floor, alleging it did not have a license to sell alcohol.

The company said it’s engaging with the Nepal government to ensure it has all the requisite permits and licenses for its resorts in the country.

It has an excise license at its Tiger Palace IR for the entire hotel and resort, which it owns, operates and manages. It also has an excise license at The Millionaires Club and Casino Club in Kathmandu, where it manages just the casino.

“We are engaging the government to make sure that we have all requisite permits and licenses in place,” CEO Mike Bolsover said in an email. “Although it is not immediately clear, we may need to add a 3rd such excise license, and if so, we shall add the license.”

Nepal police raided the Hotel Soaltee’s Mahjong Casino in Kathmandu in April arresting eight people, including the property’s CEO and managing director, for allowing locals to gamble. The executives who were arrested have been identified as CEO Om Karmacharya and MD Binod Shrestha, local media reported.

The detained also included six Nepali gamblers. The two casino workers were accused of encouraging and facilitating local gambling. Nepal has one of the oldest casino industries in Asia, but does not allow its locals to gamble. Its main market is neighbouring India, where the expanding middle class is expected to prove a lucrative source of visitors for the Himalayan nation’s casinos.

Nepal enjoys best job creation in South Asia Nepal has an employment rate of 68 percent, making it the best performer by this metric in the south Asian region, the World Bank says. “This has made Nepal an exception, as its employment rate is higher than that of many other countries with a similar income level,” says the latest World Bank report, Jobless Growth?. However, the report also added that Nepal needs to create at least 286,900 jobs a year to maintain its good employment record. As per an economic survey by the government of Nepal, the country’s labour market sees at least 512,000 youth enter the market every year and because of limited opportunities, most of them find jobs abroad in countries such as Malaysia and Gulf.

GGR: THE MILLIONAIRE’S CLUB & CASINO US$ million 3,500 3,000 2,500 2,000 1,500 1,000 500 1H15 2H15 1H16 2H16 1H17

2H17

(Source: Silver Heritage)

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| May 2018

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INDOCHINA

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CAMBODIA

Junkets eye Cambodia’s VIP potential Macau’s junket operators are increasingly focused on Cambodia, drawn in by growing business ties with China and its location between countries that don’t allow locals to gamble.

Asia Gaming Briefings | May 2018

INDOCHINA

S

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unCity Group, Macau’s largest junket, on March 1 launched its first VIP Club at NagaCorp’s NagaWorld property in Phnom Penh, encouraged by the rapid growth in Chinese tourists to the kingdom.

NagaCorp opened the second phase of its resort, Naga2, in November adding a further 300 gaming tables to the property. Analysts say the new extension pushes up the standard of facilities and entertainment in Cambodia, increasing its appeal to VIP gamblers.

In e-mailed comments to AGB, Suncity Group said the operator’s involvement in the kingdom highlighted the “great potential” in Cambodia’s VIP gaming market.

Ben Reichel, executive director of the Australian casino operator, Donaco International Ltd, which has a property in the western province of Poipet, said SunCity’s move to Cambodia was “pretty significant”. “Suncity is a group that has been actively looking to expand beyond Macau,” Reichel told AGB. “Naga does have a fantastic property and the new extension - Naga2 - I think people seem to be blown away by how good it is,” he said.

The positive outlook for the VIP market in Cambodia has been driven by a sharp rise in arrivals from China - up over 40 percent in 2017 - to 1.2 million, surpassing that of Vietnam over the same year, to become the largest source of tourists in Cambodia. Properties across the country, especially in Sihanoukville, are also being upgraded expanding the VIP offering.

The Kingdom is currently in the process of introducing new legislation to cover its casinos, which will reportedly include a tax rate of about

4 to 5 percent of revenue. That’s favorable enough to allow operators scope to offer better commissions than the 1.25 percent rate in Macau, where operators pay 39 percent tax.

Low labor costs, coupled with economic reform are driving a surge in foreign investment, increasing business travel. Based on statistics from China’s Ministry of Commerce, China’s cumulative foreign direct investment in Cambodia increased from US$1.1 billion in 2010 to US$3.7

“

Chinese gamers will definitely be the main source for the VIP market in Cambodia,

”

billion in 2015, representing an increase of approximately 236.4 percent.

“Chinese gamers will definitely be the main source for the VIP market in Cambodia,” SunCity said.

For Q1, 2018, VIP volume at Naga was up 51 percent on the prior year to $5.6 billion.

However, this was significantly lower than the $10.1 billion in Q4 that came on the back of the Naga2 opening. Overall gross gaming revenue surged 181 percent.

Union Gaming analyst Grant Govertsen said he expects the VIP numbers to ramp up

Tourism arrivals Top ten markets arrivals from January to November 2017 China

1,077,70

Vietnam

723,581

Lao PDR Thailand Kora (ROK) USA

432,715 320,940 308,448 227,919

Japan

179,915

Malaysia

156,064

U.K.

154,666

France

148,918 (Source: Cambodia Hotel Association)

again as SunCity becomes more established.

“This will be boosted by the addition of another Macau junket during 2Q. We are comfortable with the trajectory in VIP at Naga but are lowering our estimates to account for the slower start to the year,” he said in a research note.

Cambodia has 65 licensed operating casinos with most located in the provincial areas of Poipet and Sihanoukville, while NagaWorld’s license restricts competition within a 200 km radius of Phnom Penh.

In December last year, junket Amax International entered a three-year accord to operate a VIP room at the Genting Crown Casino in Poipet. Under the agreement, the company will outsource the operation of the VIP room’s 13 VIP baccarat gaming tables to an undisclosed third-party junket operator, which the company described as “one of the top junkets” at its nowdefunct Greek Mythology Casino.

Describing its investment rationale, Amax pointed to the growing business ties with China, but also the location of casinos on strips between border checkpoints, allowing foreign nationals to enter and gamble without requiring visas. A new rail line is also expected to open in 2018, cutting the travel time to the area significantly.

“Due to the excellent geographical location and given the fact that gambling is prohibited in Thailand, Thai nationals have long been the one of the major customers of the casino,” the company said in a stock exchange filing. “Recently, with the economic growth of Cambodia driven by the close business relationship between Cambodia and China, China visitors have become the new growth driver.”

Nagacorp positions for growth

Siem Reap reaches tourism accord with Macau

Nagacorp said it is shaking up its management team, with a new executive deputy chairman and chief financial officer, to help position the company for further growth. Philip Lee Wai Tuck, an executive director and CFO, has been promoted and designated as the executive deputy chairman with effect from 15 March. He will continue to oversee the overall financial and treasury affairs of the company as well as supporting and strengthening strategic direction and oversight. Tan Sean Czoon has been appointed as CFO to replace Lee. Tan, aged 39, joined the group in 2013 and last held the position of vice president of business development. Prior to joining the group, he was attached to the asset management division of Deutsche Bank (Hong Kong).

The province of Siem Reap and Macau have reached a memorandum of understanding (MoU) to build a sister city relationship to promote tourism and trade, local media reports. The agreement was put in place during a recent meeting between Siem Reap governor Khim Bunsong and Macau chief executive Chui Sai On. “Through a memorandum of understanding on sisterhood ties between Siem Reap and the Macau Special Administrative Region of the People’s Republic of China, the amount of Chinese tourists and trade partners will increase because Macau is a land of tourists and investors,” said Bunsong, was quoted as saying by Khmer Times. However, the government will not allow a casino to open in Siem Reap.

Asia Gaming Briefings | May 2018

44

AUSTRALASIA

44

AUSTRALIA

Star and partners bet on China tourism

Star Entertainment Group has expanded its strategic partnership with Hong Kong-based Chow Tai Fook and Far East Consortium as the companies bet on growing Chinese tourism to Australia.

Asia Gaming Briefings | May 2018

AUSTRALASIA 45

GROSS GAMING REVENUE Total gambling expenditure 2017 $23.65b

U

nder the accord, the Australian sharply after China’s crackdown on corruption company will raise A$490 million and the detention on the Chinese Mainland of (US$375.2 million) from the sale Crown employees on gambling-related offences. of shares. Both Chow Tai Fook and However, more recent figures have shown the Far East Consortium will each receive 45.8 VIPs are coming back and Star Entertainment is million new shares at $5.35 per share, and have confident the new development and Queensland’s their shareholdings capped at 19.9 percent. natural attractions will help draw in the crowds.

There will be no change to The Star’s board.

“It will be Australia’s best integrated resort, The strategic partnership will see both a world-class destination competitive with parties jointly pursue and participate in growth anything on offer in the Asia Pacific region, to projects in, or adjacent to The Star’s current attract domestic and international visitors who properties. It will also see the establishment will contribute substantially to the Queensland of a marketing alliance to drive high value economy,” O’Neill said at the ground-breaking tourism to The Star’s properties. ceremony in March.

“The board welcomes Chow Tai Fook and “With our Hong Kong partners, Chow Tai Far East Consortium as shareholders in The Fook Enterprises and Far East Consortium, we Star. Our expanded are very confident strategic partnerin the tourism ship recognizes outlook for southIt will be Australia’s the strength of our east Queensland,” relationships built he said. best integrated resort, a over the last four “Together, we world-class destination years and the shared have projects and vision of investing plansinBrisbaneand competitive with in properties with on the Gold Coast anything on offer in the valuable long-term which represent licenses in sought nearly a third of the Asia Pacific region, to after destinations,” total $14 billion of attract domestic and Star Chairman John Queensland tourism O’Neill said. i n f r a st r u c tu re international visitors.

David Chiu, projects in the chairman of FEC pipeline between said: “Strengthening now and 2022.” the partnership with The Star and Chow Tai The number of Chinese visitors to Australia Fook further leverages our considerable com- is expected to jump three fold to 3.9 million plementary capabilities and helps to maximize by 2026. Queensland had more than half-athe long-term value of The Star’s properties in million visitors from China last year, 3.8 per Sydney and South-East Queensland. cent more than 2016, and direct flights from The three companies are working together China have recently started to Brisbane, Cairns to redevelop a site at the Queen’s Wharf in and the Gold Coast.

Central Brisbane.

For the six months ending Dec. 31st, Star Expected to open in 2022, the $3 billion recorded a 15.9 percent gain in normalized Queen’s Wharf Brisbane aims to transform revenue. Domestic revenue was up 5.7 percent, the Central Business District and the river’s while its international VIP rebate business edge. The project is expected to employ 8,000 jumped 47.7 percent. people once it’s fully operational.

There are a further two casino licenses The group is counting heavily on tourism expected to be awarded in Queensland, one on arrivals from Asia to drive demand. the Gold Coast and one in Cairns. Politicians VIP gaming revenue at both Star Enter- recently denied there were any plans to build tainment and rival Crown Resorts dropped a casino at a site on the Sunshine Coast.

“

”

+3.9%

Casinos $5.19b

+0.4%

Gaming machines $12.07b

+4.2%

Sports betting $920.6m Racing $2.94b

+13% +4.1%

Synthetic lotteries face chop Lottery betting, or synthetic lotteries, will be banned in Australia under new legislation that will cover both domestic and international draws. Communications Minister Mitch Fifield said the government was of the view that synthetic lottery “undermines the longstanding community acceptance of official lottery and keno products.” “Traditional lotteries and keno games are popular and long-standing recreational gambling products that form an important income stream for thousands of small businesses across Australia, including newsagents, pharmacies, pubs and community clubs,” he said. “They also generate significant taxation revenue for state and territory governments, helping to fund schools, hospitals, public transport and roads.” He warned that online gambling companies that allowed betting on lottery outcomes generated “considerable community concern.” The new legislation is set to take place six months after passing through parliament to allow for an appropriate transition period.

Packer steps down on mental health concerns Billionaire James Packer has stepped down from the board of Crown Resorts citing mental health problems. “Mr Packer is suffering from mental health issues. At this time he intends to step back from all commitments,” according to a statement from his private company Consolidated Press Holdings. Crown Resorts thanked Packer for his contribution to the company in a brief statement to the Australian Stock Exchange. “We have appreciated James’ contribution to the Board and respect his decision to step down from his role as a director at this time,” Crown’s Executive Chairman, John Alexander, said. Packer had only returned to the board last year after previously stepping down to focus on international interests.

Asia Gaming Briefings | May 2018

AUSTRALASIA 46

IPI debt levels rise, construction woes persist Imperial Pacific International is facing mounting levels of bad debt due to its practice of extending direct credit to VIPs, while it continues to struggle to make headway on completing its hotel facilities.

P

Furthermore, the company disclosed that 8 roblems for Saipan’s only operator continue to mount, with the company percent of its credit risk was concentrated on one recently denying persistent reports it sole high roller, while 23 percent of receivables has been the subject of a Federal Bureau were attributable to the top five customers.

The provision for impairment of trade of Investigation raid.

In its most recent results, the company receivables due from the group’s largest and posted stellar topline growth, though its the ten largest debtors amounted to HK$1.09 outstanding receivables and debt provisions billion and HK$1.86 billion, compared with nil also gained in tandem, with the figures showing and $83 million in 2016.

The credit term for customers is generally a high degree of credit risk concentration on 30 days for gaming operations, with each given just a handful of clients.

The company reported an almost three- a maximum credit limit. For new customers, payment in advance, or fold rise in gross revenue certain forms of guarantee for the year to HK13.2 are normally required. billion ($1.68 billion), Due to CNMI’s The company has although net profit fell had a relationship with by almost a third to lower tax regime, one junket operator since HK$637.5 million. VIP we believe we will August 2016, though at table games rolling of present it only accounts for HK$385.9 billion was be able to offer a small portion of revenue. up 53.6 percent yearvery competitive IPI says that as gaming on-year. Mass, slots facilities are expanded and ETG revenue edged commission rates and the resort is able to slightly higher. to our gaming offer more VIP amenities, The results were hit it expects to attract more by rising bad debts, as promoters, gaming promoters, once well as higher operating they receive a license to expenses, with most of operate on Saipan. the company’s business “Due to CNMI’s lower tax regime, we believe coming from direct marketing, rather than we will be able to offer very competitive comthrough junket operators.

“The growth in VIP gaming revenue is mission rates to our gaming promoters,” it said.

However, some in the industry are less attributable to the group’s effective marketing campaigns and increasing tourist visitation to optimistic about the appeal to junket operators.

“The one official junket is a really, really CNMI,” the company says. “Our VIP customers primarily consist of credit players. Geographically, small Korean guy,” said Ben Lee, Managing most of our direct VIP customers are come from Partner of gaming consultancy firm iGamix China, Hong Kong, Macau and Korea,” it adds. Management and Consulting. “They were IPI says its “seeks to maintain strict control” trying to get the big Macau junkets interested over outstanding receivables. However, at the but none of them were.”

Before the opening of the casino in end of 2017, the company had VIP gambling debts of HK$8.5 billion, up from HK$5.3 billion Garapan in July last year, Imperial Pacific was in 2016. Impairment losses came in at HK$4.75 operating out of a temporary facility with just billion, a nearly nine-fold increase on the HK$547 48 gaming tables and 141 slot machines. Since the transfer to the new property that has risen million the company booked in 2016.

“

”

Asia Gaming Briefings | May 2018

to 77 tables and 242 slot machines at present with maximum capacity of up to 193 tables and 365 slot machines upon completion.

From the outset, the high level of VIP rolling volume being generated from such a small number of tables raised eyebrows in the industry, as did the level of pledged investment.

The company beat out Marianas Stars Entertainment for the right to operate the casino in 2014 and shortly thereafter promised to invest $7.1 billion on the South Pacific island, which has abundant natural beauty, but limited tourism infrastructure.

A lack of available hotel space has been identified as a key factor holding back tourism growth.

AUSTRALASIA 47

U.S. orders contractors to pay $14m in back wages The U.S. government has ordered four Chinabased construction contractors behind Imperial Pacific’s new casino resort on Garapan to pay a collective $13.9 million in back wages and damages to employees who came from China to work on the casino’s construction site.

The U.S. Department of Labor said its investigators with the department’s Wage and Hour Division determined that the foreign-based construction contractors paid their workforce less than the minimum wage and overtime pay required by the Fair Labor Standards Act or FLSA. The China-based construction companies, including MCC International Saipan Ltd. Co., Beilida New Materials System Engineering Co. Ltd., Gold Mantis Construction Decoration, and Sino Great Wall International Engineering Co. LLC have been asked to pay $13,972,425 in back wages and liquidated damages to more than 2,400 employees.

Senator pushes for gaming on the fly Senator Jude Hofschneider has proposed that casino gaming be allowed at the Saipan International Airport, as well as those on Rota and Tinian due to long waiting times, local media reports. Hofschneider introduced a measure to authorize the Commonwealth Ports Authority to enter into an agreement with a licensed operator for airport casino operations. He said gaming at airports should also be allowed to promote the gaming activities of Rota and Tinian and to generate revenues for CPA and the CNMI government.

He added that the struggling economies of Rota and Tinian need a boost and allowing licensed casino operators to operate at the airports could result in growth for both the operators and the local economies.

According to the Hotel Association of the Northern Mariana Islands, the average hotel rate reached a new high of US$145.93 per night in 2017, with an average hotel occupancy rate of 90.89 percent.

Visitor arrivals to CNMI recorded a new high in last year, rising by 24.3 percent to 659,741. Korea was the number one source market with a 50.4 percent market share and strong growth of 65.81 percent for the year.

In second place was Mainland China with growth at just over 11 percent.

Imperial Pacific currently has 3 villas and 5 yachts in place for VIP clients as well as hotel rooms secured from local high quality hotels.

However, the rollout of its own hotel has been

plagued by delays, with construction slowing significantly after its prime contractor, MCC International, left the island after hiring illegal Chinese workers for the project.

According to its casino license accord, the company was scheduled to have completed a minimum of a 329-room four or five star luxury hotel, 14,140 square meters of gaming area and other associated support components by the end of August this year but the hotel is still at a skeletal stage.

As a result of the delays, the company plans to request an extension to that deadline.

“I don’t think it will ever be finished, it’s a big lemon that is waiting for the FBI to come in and everything will be frozen,” Lee said.

GROSS GAMING REVENUE 2016

2017

(in HK$’000) VIP gaming operations

7,130,167 12,728,872

Mass gaming operations

261,880 302,665

Slot machines and Electronic Table Game gaming operations Food and beverages

57,294 66,861

39,638 57,210 (Source: Imperial Pacific )

Asia Gaming Briefings | May 2018

SUPPLIER SPECIAL REPORT 48

G2E 2018

Diversified content G2E Asia, the region’s largest gaming and entertainment exhibition, returns to the bustling city of Macau, on the 15th to 17th May, 2018.

H

eld at The Venetian Macao, the threeday show will attract more than 15,000 visitors and 220 exhibitors over a massive 37,000 square meter exhibition floor.

G2E Asia 2018 will feature four key industry segments across sprawling and interactive event halls, including: Digital Content & Technology, a combined exhibitor showcase of online game development and technology providers; Integrated Resort Technology & Business Solutions, a display of the field’s newest IR products, technologies and services that drive revenue and value from non-gaming sources; as well as a Parts and Components Pavilion, Asia’s first and only trade platform dedicated to the exhibit of parts and components of the electronic gaming machine manufacturing industry.

The event is also co-located with the Asia Lottery Expo and Forum, a multi-faceted event that delivers an unprecedented business, learning and networking platform exclusively designed for lottery professionals.

This year’s conference program is led by a lineup of high-level industry leaders and influencers, including Mr. Lawrence Ho, chairman and chief

Asia Gaming Briefings | May 2018

executive officer of Melco Resorts & Entertainment Limited, and Mr. Paulo Martins Chan, director, Gaming Inspection and Coordination Bureau, and many more.

Speakers across the three-day conference will discuss regional developments and practical, costeffective insights relevant to the challenges facing Asian operators today.

Finally, the President’s’ Reception, an exclusive, invitation-only cocktail, will gather the industry’s most prominent participants. It will offer senior executives networking opportunities and brand exposure at the highest level.

“Over the past decade, G2E Asia has improved and expanded with each successive edition, and 2018 will be no exception. This year will broaden its reach even further with highlights of four key segments. We will continue to internationalize the event and enrich the exhibition by diversifying the content. It is my utmost pleasure to welcome our industry leaders & peers from Asia Pacific and around the globe to be part of G2E Asia 2018!” said Josephine Lee, chief operating officer of Reed Exhibitions Greater China.

P R I N T ER A N D S O F T WA R E S O LU T I O N S F O R

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CASINO, GAMING & LOTTERY

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LOTTERY PRINTERS

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STAND 719

Asia Gaming Briefings | May 2018

49

SUPPLIER SPECIAL REPORT 50 ABBIATI

High security products

A

bbiati Casino Equipment will take part in the G2E Asia this year to present its products to the Asian market.

“Asia represents a strategic market for us in which we intend to expand our business in the next years,” said Giorgio Abbiati, CEO of Abbiati Casino Equipment, “the exhibition is an important opportunity to present our innovative products to Asian operators and to increment our business relationships.”

During the expo, the Italian company will present all of its casino currency solutions, in particular Abbiati’s line of patented “Tie” chips featuring multiple injections, see-thru inserts and a combination of intricate and innovative rim and edge inserts.

At the same time, Abbiati will present its range of plaques with an impressive collection of new patterns, designs and materials.

All casino currency products come available with security features such as 13.56 MHz PJM RFID, 8-color UV pigments, 3-in-1 UV security feature, Laser Tracer technology, Optical Variable Ink, high security holograms.

This year, visitors must not miss the chance to see the Abbiati Baccarat Asian Style table exhibited at their stand: the table is made with a unique high-end design with an elegant and refined finish.

It is manufactured for the Asian market and it is originally featured to be a Baccarat Asian Style table with a Contrast Bonus-

Alfastreet

Lucky 8 certified for sale

A

lfastreet is set to showcase Multi Touch Roulette, Lucky 8, and the Royal Derby horse race machine at G2E Asia.

Each of these products is unique in its own way, and this year all these products are certified to be sold in Macau.

Multi Touch is already operated in numerous places around the world. This table simulates the operation and the feel of the live roulette table and is a definite attraction in a proper casino environment.

Lucky 8 is a compact and durable 8 station roulette. This product is competitive in any gaming environment, ranging from small club to the most luxurious Casino setting.

Roal Derby is a mechanical horse race game that brings additional revenue to the operator, creates a positive attraction on any gaming floor.

Wiky is Alfastreet’s best seller single terminal that rules the gaming floor around the world. Unique 32’ display with 4 game simultaneous betting is an assurance of success for the operator.

New concept of betting, different design and well-known Alfastreet quality created lots of interest among the operators in Asia and particularly Macau, so this year Alfastreet is ready to step up.

In addition, Alfastreet will also bring a newly developed game, something different and unique in the land based gaming market, and something that is a start of a completely new line of products made by Alfastreet.

Alfastreet will offer additional incentives for the interested operators during the show, and all are welcome to visit them at stand 303.

Asia Gaming Briefings | May 2018

Baccarat game by Stephen Au-Yeung.

Abbiati Casino Equipment will also exhibit the Intelligent Shoe directly connected to its Punto Banco Baccarat Display and its GLI-25 certified American roulette wheel, which incorporates the upgraded Abbiati patented invisible laser technology (Class 1A). Abbiati wheels can connect to and run winning number displays, online gaming terminals and management systems and due to their open protocol, Abbiati’s American roulette wheels have become the preferred choice for many of the leading “live online” gaming operators.

Visitors are encouraged to meet the Abbiati team at stand 519.

SUPPLIER SPECIAL REPORT 51

Asia Gaming Briefings | May 2018

SUPPLIER SPECIAL REPORT 52 Ainsworth

ARISTOCRAT

S

A

Designed for Asia howing its solid commitment to delivering products designed for the Asian market, Ainsworth will showcase its products in a dynamic booth, with dedicated Asian titles at the upcoming G2E Asia exhibition.

Ainsworth will also display innovative cabinets including the A640 and EVO. At G2E Asia, a range of link progressives and SAP packages will be shown on the EVO that complement the variety of products developed for the region. Titles including: Lucky 8 Treasures, Fire Power, Golden Link, Golden Cash, Oriental Express and Quad Shot.

This further demonstrates the company’s commitment to a long-term pipeline of successful content.

In regards to the A640 cabinet, Ainsworth is displaying its stunning cabinet with PACMAN WILD EDITION, Super Charged 7’s and Triple Challenge and Rumble Rumble Bison.

“The Asian market has an appetite for the best in class games and at Ainsworth we are dedicated to satisfying these demands with highly innovative technology, cabinet flexibility, product performance and a wide range of game options.”

Be sure to visit Ainsworth at G2E, stand 501.

Asia Gaming Briefings | May 2018

It’s all about what’s inside

ristocrat continues to strive to lead the gaming industry in creating combinations of innovative cabinets and games that really entertain. At G2E Asia 2018, Aristocrat’s stand will feature themed destination areas, specifically designed to showcase the company’s new games and cabinets, and allow attendees to interact with the products in a meaningful way.

“We are honored to welcome our valued customers and friends from Macau, across Asia Pacific and around the world to G2E Asia. Destination areas on the Aristocrat stand will help attendees experience all of the innovation we have put inside our games and cabinets, to help our customers give their patrons great gaming experiences every day,” said Aristocrat APAC managing director Chris Rowe.

Aristocrat’s stand design invokes an actual casino floor, with dedicated areas including a 5 Dragons zone; a Mass Market Gaming area; a High Limit Room and an Innovation Room. 5 Dragons is Aristocrat’s biggest Asian brand and one of the best loved and recognized slot brands in the world. Attendees will experience a joyfully themed 5 Dragons area that shows how operators can place these products on the floor to create gravity around the brand. This area features Aristocrat’s latest 5 Dragons games.

Aristocrat’s global slot sensation Lightning Link is expanding at G2E Asia with new games that have been customized to the Asia-Pacific market, complete with tailored graphics, jackpots and bet options.

The fourth title of our new hit Link – Emperors Treasures - will be on display to support our first three titles Happy Lantern, Dragon Riches and Eyes of Fortune.

The company also continues to innovate for players who enjoy table games, with the added fun of a slot environment In this segment, attendees will enjoy learning more about Games of Fortune; Multiline Baccarat, Baccarat 88, Baccarat Streak and Baccarat Zhuan Zuana Fa which are played on Aristocrat’s exciting Arc cabinet.

Aristocrat is also extending its line of standalone games for players who enjoy a higher volatility gaming experience. While in the Innovation Room, we will debut several new concepts for the Asian market, spanning both games and cabinets. It’s all about what’s inside.

Aristocrat can be found at stand 629 at G2E Asia.

SUPPLIER SPECIAL REPORT 53

Asia Gaming Briefings | May 2018

SUPPLIER SPECIAL REPORT 54 aruze gaming

asia gaming

X-Station launch

C

asino operators will witness the launch of Aruze Gaming’s X-Station at G2E Asia this year.

The new product line is an electronic table games terminal on the Cube-X platform.

X-Station comes equipped with new graphics capabilities, a larger screen, and is designed with ergonomic perfection to fit ETG game viewing angles and shared gaming experiences.

The centerpiece of Aruze’s booth will be Lucky Roulette, a new version of roulette with X-Station.

Lucky Roulette combines high-definition projection graphics with an automated wheel and a live roulette ball, uniquely merging virtual animation and live elements. Aruze has added a bonus game titled “Jackpot Chance” that is triggered randomly. Lucky Roulette has some fascinating new elements that will compel players and some of the classic conveniences of roulette are re-designed to further enhance

Asia Gaming Briefings | May 2018

Innovative strength the experience.

Also utilizing the new X-Station is Super Big Wheel. With a new presentation of seven terminals and batwing high-definition monitors on either side of the big wheel, it is a commanding physical presence that has been built to entice and enthrall players. Super Big Wheel features 54 bet winning locations and payouts that range from 1:1 to 52:1. It also features two bonus concepts: one bonus is triggered randomly and may provide increased odds prior to the end of a wheel spin; the other bonus feature sends a player to a bonus screen to select from various icons once a “Jackpot Chance” meter has reached a configured amount. Like many of Aruze’s ETGs, the player still gets the thrill of pulling the handle to set the Super Big Wheel in motion.

Visit Aruze Gaming at stand 1029 at G2E Asia to check out their new ETG line up and their other products.

A

sia Gaming is pleased to announce that it is exhibiting at G2E Asia 2018, offering Live Dealer Games and a complete E-Game portfolio to its clients.

This year, Asia Gaming has teamed up with XIN Gaming, YoPlay, and their in-house casual game - FishHunter.

XIN Gaming is launching a brand-new RPG slot, “King of Glory”. Vivid game settings and distinctive characters create best RPG slot experience. Players can select 3 out of 5 fighters to strive for free games and mega wins.

Multiplayer game “Birds and Beasts”, developed by YoPlay, is a roulette game where players can chat with the other players at the same table. The game interface has three major types of animals to bet on: birds, beasts, and sharks. Placing the bet on the winning animal will cause the player to win a reward equal to the betting amount multiplied by the odds.

In addition, there are also “party time” grids on the roulette. Special rewards are triggered if the player lands on these grids.

Finally, “Fish Hunter” is the most popular fish hunting game in Asia. It offers a list of innovative features and unrivaled gaming excitement which can be played at your fingertips. There are over 20 types of fish, 6 levels of the game to choose from. Trigger the jackpot and get the huge prize!

Visit Asia Gaming at stand 1605 to see their gaming business offerings, or go to stand 2905 for land-based casino offerings.

SUPPLIER SPECIAL REPORT 55

MEET US AT

G2E ASIA MAY 15-17

Asia Gaming Briefings | May 2018

SUPPLIER SPECIAL REPORT 56 BBIN

betconstruct

A

B

Staircase to the world

s the leading iGaming software supplier in Asia, BBIN has stimulated new energy in the industry and strengthened its leading position through exhibitions and other international events.

BBIN presents yearly brand value through visual images or stand designs. This year, the red rotating staircase will become the focus of the exhibition. It comprehensively conveys the full advantages of the brand, service, technology, and product. The profound industrial bases are stacked upwards, which corresponds well to the “Up For World” theme and leading partners to success.

In addition to the impressive visuals, BBIN provides outstanding services to corporate partners, providing customized assistance in proprietary branded app and game development, as well as exclusive corporate services that provide active confirmation of platform operations and eliminating immediate operational problems.

The completed backend system is not only a comprehensive tool for management but also the strongest form of support for BBIN’s partners.

BBIN fully demonstrates their ability to integrate resources by collecting a wide range of popular products from the East and the West under its brand, and continuing to work with different providers. Currently, the four major categories of products have been successfully implemented in as many as 17 famous European and Asian brands such as Microgaming, Playtech, iSoftbet, Habanero, Pragmatic Play, Asia Gaming, ONEworks, JDB, and VR Gaming. BBIN will continue to collaborate with these brands using advanced industrial strategies and expand the overall product diversity. In addition, all products support cross-platform, APP applications and HTML5 interface.

BBIN can be found at stand 1901 during the show.

Asia Gaming Briefings | May 2018

Innovations workshop etConstruct, an award-winning software provider, will be visiting Macau this year to host Innovations Workshop and attend G2E Asia.

Held on May 14 in Macau, this will be the third event in the Innovations Workshop series conducted by BetConstruct. As always, the evening will combine informative showcase of the company’s latest launches and solutions, great food and fantastic entertainment.

BetConstruct has a number of compelling solutions for the Asian market. This includes SpringBME with its gaming products marketplace, FeedConstruct’s data feed solutions and Friendship platform for streaming distribution and many more. The participants will have a chance to learn about new launches of BetConstruct.

With the slogan Connecting People and Innovations in the Asian Entertainment Industry, G2E Asia is an outstanding opportunity for industry professionals to network and tap into the regional market. Alongside with enhanced data feed solutions and its renowned Asian view Sportsbook, Betconstruct will feature its Virtual Football Penalty Kicks, a new game added to its Virtual Sports solution and its Live Casino

Software with a recent launch - Dragon Hall for Baccarat. However, the absolute highlight of their showcase will be their innovative virtual reality solutions: VR Casino, VR Live Dealer and VR Slot.

To enhance expo visitor experience, Betconstruct is also encouraging attendees to play VivaroGo, a location-based game. Hunting for QR codes and scanning them, guests can win real prizes! Not only VivaroGo is a highly engaging game, but also a powerful customizable tool for commercial campaigns and business promotion in general.

BetConstruct has a huge showcase of its novelties prepared for the expo at stand 2841.

betsoft

Beyond the reels

B

etsoft is moving beyond the reels at this year’s G2E Asia with the next generation of igaming - MaxQuest.

Part of their new Interactive Gaming genre, this action-adventure, multiplayer gaming experience allows players to fully immerse themselves in gameplay like never before.

Players all over the world have the option to log on and experience Betsoft’s games through Betsoft’s VAULT engine, which offers access to one of the world’s largest desktop and mobile catalogues in slot gaming.

In the last few months, Betsoft have built on their already impressive collection of games which are the groundwork for the revolutionary titles to come.

One new application of this technology, the “trail system,” has already appeared in Legends of the Nile, Sugar Pop 2, and Reels of Wealth.

These advancements are made possible by our progressive SHIFT engine, that allows for high-quality game development over multiple platforms at an incredibly small file size.

Building off what Betsoft have already

accomplished, MaxQuest will allow players to explore an ancient Egyptian tomb, facing fearsome foes and finding fabulous treasure.

Similar to console gaming RPGs, players encounter enemies, find collectables, and work together in order to win BIG. With item collection, achievements, and leaderboards, Betsoft are bringing the world of social games to their players.

This integrated gamification allows the fun and excitement of gameplay to last beyond just a single win and is guaranteed to have players coming back for more.

Visit Betsoft at G2E Asia stand 925 for a demo.

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2E Asia remains the key gaming and entertainment business hub for the Asian market and the event provides the perfect environment for Betradar to present its broad range of market innovations and new products.

Still the only supplier in the market that delivers an end-to-end in-running offer – from data collection at the venue to the compilation and delivery of odds – we remain the go-to supplier for those requiring the most comprehensive and reliable Live Odds & Live Data service.

Our coverage showcases over 25,000 live events per month from over 20 sports each month, providing over 600+ unique odds type.

Betradar’s Managed Trading Services (MTS), which we launched in 2015, is already the most effective risk, liability, and player management service available for sports betting operators and lotteries. It is the only solution based on the full control of all components necessary to power a modern and effective sportsbook: from data collection to ticketing, trading and content.

Operators looking to offer bets 24/7, across multiple channels can also call on Betradar’s Virtual Sports portfolio featuring Football (now including a dedicated World Cup Version), Tennis, Basketball, Horse Racing and Dog Racing. With parameters derived from real sports data, our products include all the main bet markets and offer a betting experience similar to that of real sport – adding significant

incremental revenue to all our clients. Out latest innovation - Virtual Tennis in-Play - offers punters the opportunity to place live bets on full, continuous matches – in any way they want.

For those wanting another proven method of retaining customer attention, Betradar’s award-winning Live Channels, available for online and retail, provide over 38,000 events per year to bookmakers.

Come by our stand #2941 at G2E Asia.

BMM Testlabs

Continent 8

B

T

Rapidly expanding test lab MM Testlabs, the world’s best gaming testing laboratory and technical consultancy, is proud to be expanding its testing services teams across all of its three Asian businesses.

Kirk White, executive vice president and general manager, Australia Asia-Pacific and Africa, commented, “BMM has seen unprecedented growth in Asia over recent years and we are investing heavily in resources to support the increase in demand for our compliance testing services. Over BMM’s many years in Asia, we have become an expert in Asian gaming technical and regulatory requirements for both land-based and online gaming. Having a test lab in Macau, a test lab in Singapore and a business partnership with the Macao Polytechnic, BMM has an unmatched commitment to the Asian region.”

White continued, “As part of our commitment to the market, BMM is excited to return to G2E Asia, one of the biggest and most important shows in the region. We have had the pleasure to work with many innovative companies throughout Asia and we look forward to meeting our existing and new clients one-on-one at G2E Asia. I encourage show attendees to visit BMM’s booth as our experts will be providing information and advice on how to successfully enter the region as well as assistance in understanding the technical compliance and regulatory requirements of the different Asian markets.”

BMM Testlabs will be exhibiting at G2E Asia, stand 930.

Asia Gaming Briefings | May 2018

Unprecedented global expansion

he team at Continent 8 Technologies are gearing up for a busy G2E Asia this year, following an unprecedented period of global expansion.

For the first time, the company has taken a small booth at the event where they will be showcasing their range of data hosting and connectivity services tailored specifically for the eGaming market.

In a year of continued expansion Continent 8 is now present in over 30 globally connected locations, and provides a range of data centre services to hundreds of eGaming companies including operators, software suppliers, game aggregators, payment processors and affiliate software suppliers.

What makes Continent 8’s solution different though is that the company’s services are provisioned from secure data centres across Europe, Asia and the Americas, all uniquely linked to a global private backbone, enabling secure, private communications around the world – between operators, payment processors, affiliates and software providers.

This network links the world’s major global telecoms hubs with eGaming regulated jurisdictions, and provides a level of reliability, redundancy and reach of internet access - which remains unrivalled in the sector.

In Asia, the company now has presence in Hong Kong, Taipei, Tokyo and Manila. In fact, two of the primary service providers in the Philippines now offer Continent 8’s DDoS mitigation and MPLS connectivity services to their clients throughout the Philippines, this is proving a successful route into this market.

The team at Continent 8 will be ready to discuss their growing range of data hosting, managed services and security and can be found at stand 3025.

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One-of-a-Kind Currency and SMART RFID Solutions Our newest and highly innovative currency security features offer customers the most advanced security options available in the industry. Our full line of chips, plaques and jetons provide unmatched design options for stunning gaming currency with a high level of counterfeit deterrence. Include our fast and accurate SMART RFID and Casino Inventory System (CIS) for one of the most robust, anti-counterfeit currency security solutions available.

Visit Us at G2E Asia at the Venetian Macao, Stand #1141

www.gpigaming.com

Asia Gaming Briefings | May 2018

SUPPLIER SPECIAL REPORT 60 Comtrade Gaming

Differentiation through CRMs

C

omtrade Gaming is a high-end software and technology supplier to the gaming industry delivering open platforms, systems and services for land-based and online sectors. Comtrade Gaming’s strengths are the development of technology solutions based on industry standards and legislative requirements.

As competition between operators continues to increase, the capability of their CRM systems will be the differentiating factor on how they improve GGR. Managing customer acquisition and retention is simplified with CRM systems since they integrate all player spending and behavioural data across multiple touchpoints and channels. Industry-leading systems are designed to track events as they happen (eg. hotel room reservation, casino activity) and store new information for customer profiling and awarding opportunities.

One of the newer systems leading the CRM

pack is Comtrade Gaming’s iCore: Engagement Edition. The product addition upgrades slot machines into a promotional channel that communicates personalized incentives, venue promotions and player account information on the game screen. Additionally, it enriches the player experience on G2S standardized gaming machines using an award engine with predictive modeling to evaluate and communicate bonus eligibility in real-time.

Casino operators need to target a particular and growing market segment within the landbased sector and CRM systems provide a straightforward and elegant way for operators to engage and reactivate all player segments.

Casino CRM as an omni-channel solution (as is Comtrade Gaming’s iCore extension) displays all activity information via pre-defined customer pages on the web or a mobile app to monitor their recent offers, messages, bonus

and loyalty updates, or search through their promotional history. Event-based messages such as e-mails, SMS or push messages are also handled by iCore, providing quick feedback to the customer and ensuring new rewards are offered as soon as the customer is eligible for them, even during gameplay. Most importantly for the operator, the data collection portion of the CRM system grows at the same rate as the gaming operation.

talented graphic artists to ensure that your games meet your particular tastes and needs.

The company’s selection of Asia focused games will bring brave warriors, icons of luck and fortune, and beautiful fighters to the screen.

Its Western themed games feature scenes such as the mountains of Olympus to the scare of an old manor, which resonate all the flair of a Hollywood blockbuster.

For those players who want true grit and real experience, you can opt for a realistic design that portrays characters out of a blockbuster production.

Come experience the best of DGx HUB with our latest games: Three Kingdoms, Emperor’s Treasure, God of Wealth, Koi Garden and Lucky Panda at G2E Asia.

See them at stand 1805 at the show.

DGx Hub

From east to west

P

hilippine-based Digital Graphix Hub Technologies, Inc. (DGx Hub) fully specializes in world-class digital game design.

The company brings together talented digital artists and skilled, experienced game developers.

Leveraging the innate creativity of the very best Filipino artists and developers, DGx Hub offers: beautiful and eye-catching 2D still art and animation for online, digital games; Top of the line, highly secure front end and back end applications for games to ensure smoothness of play and security; Multi-lingual support so you can reach more audiences across different markets; and Highly ebet

Introducing Blockchain Baccarat

I

ndustry leading mobile casino supplier eBET, returns to G2E Asia to showcase their latest innovation in iGaming. eBET’s latest award-winning redesign will further capture the attention of G2E visitors with innovations in blockchain technology, Baccarat and RNG. eBET is combining Asia’s favorite game of Baccarat with blockchain technology to announce the industry’s first Blockchain Baccarat.

The game will combine the transparency of the blockchain with the world’s fastest game of Baccarat. The announcement comes only

Asia Gaming Briefings | May 2018

weeks after eBET announced the launch of their highly successful Baccarat Race, which has sent revenue soaring.

“Our team continues to be laser focused on successfully executing our strategic plan to transform the iGaming space through innovation while providing value and exceptional quality products to our partners,” said Evan Spytma, eBET’s CEO. Also to be announced at G2E will be eBET’s seamless integration of Pragmatic Play’s RNG products.

“This integration represents the first time eBET has opened its gaming platform to a RNG provider. The evolution of eBET’s gaming platform creates a unified gaming experience that will further maximize player bets during all betting cycle,” Spytma said.

In addition to the full catalog of Pragmatic Play’s RNG titles, eBET will launch their newly designed eFISH game.

Visit eBET’s at stand #2101.

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SUPPLIER SPECIAL REPORT 62 EveryMatrix

GLI

F

G

Cybersecurity solutions

Engine for growth or local operators seeking to improve their operation, increase game offering, or find ways to deliver the most relevant content, EveryMatrix exhibits CasinoEngine and the iGaming Integration Platform, alongside our sports data feeds services, the agent management system, and the payment processing platform at G2E Asia.

Our expertise in the European iGaming regulatory space and our partners in Asia, positioned EveryMatrix as a key supplier for operators that want to achieve a rapid growth.

With proven expertise in the regulated European iGaming space and working with brands like Norsk Tipping, Tipico, 188BET or K8 UK, EveryMatrix is a multi-award winning iGaming software provider, delivering a full product suite including a modular iGaming integration platform, a fully managed sportsbook, a market leading one-stop casino content aggregator, a cross-product bonusing engine, an in-house payment processing product, and a multi-brand affiliate/agent management system. Our products work independently and can be easily integrated with existing platforms and wallets.

At the show, visitors can take a tour of CasinoEngine and the iGaming Integration Platform to see how you can improve your operation, game offering, and deliver relevant content.

Learn how to get fast access to new and innovative gaming products and features.

A full featured back-office, tools to manage your gaming content, various APIs & feeds to fully control your users’ experience.

To assist Asia-facing operators, our popular choices for Asia include more than 22 casino providers (out of 70+ integrated into our platform) with plenty of RNG and Live Dealer options.

EveryMatrix preserves a team in Philippines and development centres in China and Vietnam while establishing hosting facilities in Asia to operate in parallel with our European data centres to ensure the best user experience for local players.

Find the EveryMatrix team at stand #3041.

LI’s team of Asian experts will be on hand at G2E Asia to showcase the company’s broad expertise in the Asian market.

Regulators, gaming suppliers, government representatives, and operators who visit the GLI booth will have the opportunity to gain invaluable insights into the emerging trends and challenges affecting the APAC region.

With cybersecurity challenges driving the global conversation, GLI will provide real-world solutions to protecting consumer information, mitigating security risks, and effectively tackling the complex, mission-critical vulnerability concerns throughout the APAC region.

To underscore these core competencies in the cybersecurity arena, GLI will present an array of advanced and affordable IT and cybersecurity solutions through Bulletproof, a GLI Company, at this year’s conference.

“We are enthusiastic about sharing how GLI’s unsurpassed knowledge of the Asian market can help new and existing clients and customers succeed during a time of unprecedented growth in this key gaming sector,” said Ian Hughes, GLI’s vice president of global services.

“Please stop by our stand 904, spend time with our team of Asian experts, and learn how our locally-focused, high-quality solutions can make the difference.”

GPI

New currency security solutions

G

aming Partners International is bringing its newest and some of the industry’s most innovative products to this year’s G2E Asia. .

The company will be showcasing its extensive collection with an emphasis on its cutting-edge currency security features, range of playing cards and SMART RFID solutions.

GPI is the only gaming supplier to develop and introduce a completely brand new line of gaming currency, its Bourgogne et Grasset (BG) V-Series injection molded chips. The V-Series offers a wide range of chip and decal security features and for customers who order the V-Series with four or more color shots, the chips also come standard with an infra-red security feature exclusive to GPI. GPI is also introducing several new, highly advanced currency security options to its already vast suite of currency security offerings. BG customers can now include the new Focus feature into their injection molded chips. Incorporated into the injection material, Focus is an advanced covert security feature that will be demonstrated to some of our select customers.

Asia Gaming Briefings | May 2018

Not available anywhere else, GPI has also developed two new advanced currency security features that also complement the chip’s design.

The first is GPI’s unique Hollow Shot, an indentation in the chip’s outer ring that serves a dual purpose in the chip’s overall design and counterfeit deterrence.

The second is GPI’s Intricate Edge Inserts.

Using the latest manufacturing techniques, customers can now include multiple, more complex designs into their chip edge inserts.

SMART RFID is GPI’s exclusive high frequency RFID technology. GPI’s SMART RFID products and solutions is available on all GPI currency brands. SMART offers faster and more accurate chip reads and when used with our Casino Inventory System (CIS) software, SMART delivers a complete currency tracking and authentication solution and one of the most robust, anti-counterfeit security solutions available.

For table layout needs, GPI’s full graphic EGC layouts will be covering all the tables and will be on display. Ideal for all game types, EGC layouts provide an exceptional playing surface

and are a durable and economical choice that provides extraordinary design flexibility.

For customer playing card needs, GPI’s offers its casino quality Gemaco brand line of playing cards which includes both paper and plastic card types. With a variety of stocks and finishes, Gemaco playing cards provide ideal handling and dealing for all types of table game play.

For more information, visit GPI at stand 1141 during the show.

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Asia Gaming Briefings | May 2018

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WEDNESD AY 1 6 M AY 2 0 1 8

Asia Gaming Briefings | May 2018

SUPPLIER SPECIAL REPORT 68 Ganapati

The Europe/Japan fusion revolution

G

anapati will be showcasing its newly launched CrypBattle at G2E Asia, a game that highlights the company’s mission to bring the colourful culture of Japan to the online casino market.

Based on the highly-popular Japanese phone game CrypTract, CrypBattle is set on the continent of Centrea, where the Empire of Gilsania holds incredible power. Terrifying monsters are threatening the lives of the once peaceful kingdom, and it is up to the player to negate their onslaught. The 5 x 3 slots game (with 20 win lines) offers several special features that set it apart from other slot games – such as allowing players to choose three characters (out of five), with each offering their own animations and game features, a mechanic not yet seen in the market.

In addition, Ganapati has released three

more innovative slots to the market: Pikotaro’s Pineapple Pen (starring the YouTube sensation, Pikotaro, who has performed for the likes of Donald Trump and can claim Justin Bieber among his fans), CrypCrusade, and She Ninja Suzu (which is featured in Enrique Iglesias’s latest music video, the El Baño remix!).

These four initial games illustrate the strengths of Ganapati and highlight the company’s development capabilities and the strong cultural media influences it is able to access.

Ganapati was established in 2013 and was primarily focused on producing phone apps for the Japanese market. It entered the iGaming world in 2016, quickly breaking the mould of traditional iGaming development with its global group of experts in game development, film and entertainment.

So what’s next for this budding force?

Already making waves in the European market, they are now more than ready to enter the Asian market. As the Ganapati saying goes, “Welcome to a new era of gaming.”

To find out more about Ganapati, visit stand #3119.

IGT

IGNITE

U

nder the theme “IGNITE”, IGT’s product portfolio will be anchored in approved, localized content, new versatile hardware, mobile solutions for land-based casinos and the company’s market-leading systems innovations.

A must-see product will be the HyperHits link on the CrystalDual cabinet. Approved for distribution in Macau, HyperHits is a linked

Asia Gaming Briefings | May 2018

progressive with an engaging ball mechanic that awards jackpots and bonus prizes. The link will launch with two base games - Lotus Princess and The Golden Bow. IGT will also launch Macau-approved games from its Prize Disk family of linked games. Prize Disk games offer players prizes that scroll right to left above the reels that awards free games,

bonuses and jackpots. It will launch with two games, Elephant King and Wolf Ridge with a third, Tiger Fortune, also on display.

Making their G2E Asia debut will be IGT’s CrystalCurve cabinet and content.

Featuring a 43-inch, curved, ultra-HD, 4K display, the CrystalCurve cabinet is backed by a strong portfolio of core and premium games.

The company will highlight the vibrant multilevel progressive title Fortune Gong with base game titles Dragon Dynasty and Phoenix Rising.

The company will also showcase standout core games from the Fury family, such as Golden Fury and Fortune Fury – both featuring math models designed for regional player preferences G2E Asia will also mark the Asia-debut for the company’s Crystal Dual 27 cabinet.

Representing an evolution of the CrystalDual series, the refreshed cabinet features dual, highdefinition, 27-inch displays, a mobile device charging port, and more. The cabinet will be demonstrated with titles such as Imperial Prince and Imperial Princess.

Highlighting the company’s position as the leading casino management systems (CMS) provider in Asia, IGT will create a live casino experience in a custom-built theatre within its stand - taking customers through real-world scenarios for managing their patrons.

See more of IGT’s latest products and solutions at stand 801.

CONNECTING PEOPLE AND INNOVATIONS IN THE ASIAN ENTERTAINMENT INDUSTRY

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連接亞洲

娛樂業界與創新科技 Market Trends. Quality Products. Networking. 市场趋势、优质产品、建立联系 VISITOR PREREGISTRATION IS

G2E Asia: Informs smart business decisions. 亞洲國際娛樂展：助您作出明智的商业决策

NOW OPEN 觀眾預登記

現已開始

MAY 15 - 17, 2018 | 2018年5月15-17日 THE VENETIAN MACAO | 澳门威尼斯人 A G2E EVENT

www.g2easia.com

PRESENTED BY

ORGANIZED BY

Asia Gaming Briefings | May 2018

SPONS

SUPPLIER SPECIAL REPORT 70 JCM Global

Solutions for cash-heavy markets

J

CM Global will showcase its innovative and award-winning transaction solutions at G2E Asia, exhibiting industry-leading products that are field-proven in cash-heavy markets worldwide.

“In cash-heavy markets like Macau, the need for safe, secure transactions is amplified.

That’s why operators throughout the AsiaPacific region rely on JCM Global’s innovative and field-proven products to provide the perfect balance of security and customer convenience,” said JCM general manager of Asia Pacific Ian Payne.

JCM’s exhibit at G2E Asia will include the iVIZION bill validator. Its powerful CIS technology scans more than 9.5 million data points of every note, twice that of the nearest competitor. Its powerful combination of optical and mechanical sensors and mechanical anti-fishing technology offers supreme protection.

Also on the stand is the UBA bill validator

RTG Asia

Taiwan model featured

R

TG Asia is making their online slots more appealing to millenials by bringing popular celebrities into the game this year.

RTG Asia will be the first slots provider to incorporate a popular ‘Web J’ personality in its new game.

“Every online casino has a mermaid game,” Charlotte Tang, RTG Asia’s CEO says. “We’re the first to take a live, popular and, frankly, beautiful, web personality and incorporate her image, as video, right into the game.”

A taste of the game video will be unveiled at a press conference in early May in Sprite’s hometown of Taipei, Taiwan.

The following week, at G2E Asia in Macau, Sprite will appear to unveil her new “game persona” at 3pm at the RTG Asia booth.

The event will broadcast live on major web channels.

Please visit stand 1753 for your invitation to party with Sprite on day two of G2E Asia.

Asia Gaming Briefings | May 2018

and the ICB Intelligent Cash Box, which works with both iVIZION and UBA and has been field-proven to reduce drop operational costs by hundreds of thousands of dollars annually.

Additionally, JCM will show its fast and flexible GEN5 and GEN2 thermal printers; the floor-wide promotional couponing system PromoNet; and the new FUZION technology, which enables real-time currency exchange with exchange rates, along with a wealth of other functionality.

JCM has had a great deal of success in the APAC region recently. For example, Jeju Shinhwa World Landing Casino is protected

by JCM’s iVIZION bill validator, GEN5 thermal printer, and ICB Intelligent Cash Box. Additionally, JCM has an agreement with Jade Entertainment and Gaming Technologies Inc., under which Jade provides local support and service for JCM products throughout the Philippines.

Visit JCM on stand 1319 at the show.

MATSUI

MG Eye Security

M

atsui will be showcasing the latest additions to its gaming chip product line at G2E Asia 2018.

The company will launch new designed gaming chips and new security feature which were recently expanded in their product portfolio.

Adding to the traditional security features such as UV marking, Matsui introduces its exclusive MG EYE security, MG Eye Edge, Laser Trace and new generation EAS gate check system.

Their new casino chip series, including Heavy Weight Inner Ring Style decal chips, will also be introduced this year.

Shigeki Machida, managing director of Matsui Asia, at Matsui’s Macau office commented; “We are very excited to introduce these new gaming chips as well as our other core products such as highly durable heavyweight layouts to our customers at G2E Asia 2018. We will provide the demo of the latest technologies of security feature for gaming chips including RFID. We believe that these new development will surely provide even more choice and better performance for our customers.”

In response to the high demand for Matsui’s gaming chips and table layout, the company is planning to expanded its production capacity again with new machinery and equipment to further speed up the production.

“We have been re-investing a lot of our revenue to improve the quality of our products and upgrade our production facility.” said Machida.

Visit Matsui at stand 1325 at the show.

SUPPLIER SPECIAL REPORT 71 Sega Sammy Creation

New Sic Bo game begins Macau rollout

S

ega Sammy Creation was established in 2013 in Japan to produce and manufacture gaming machines. With Sega Sammy Group’s creativity and cutting-edge technologies cultivated throughout the years of experience in the entertainment business, the company’s mission is to create innovative and entertaining, fun-to-play gaming machines.

This year we have released our new product “Sic Bo Bonus Jackpot Maximum Fortune” which has begun to be installed in MGM Cotai in Macau SAR. In addition to the features in our original Sic Bo game, the “Odds up” feature has been added as well as the new jackpot feature of “Maximum Fortune Side Bet” to deliver players a more exciting game experience.

“Maximum Fortune Side Bet” is a side bet game whereby players are awarded a prize if the dice outcome matches the bet area where the pot appears, regardless of their bet position in the base game. This side bet is designed so that players can enjoy the chance to win big until the pot will open after the dice has been rolled, and build anticipation until the very end of each game. We believe that by this product

we are able to add a new and exciting playing experience to the classic game of SIC BO. With the “More Fun! More Excitement!”

concept, we will continue to provide casino games that give players a fun and exciting experience.

Sega Sammy is not exhibiting at G2E Asia.

SUZOHAPP

Cash handling innovations

S

UZOHAPP will be presenting the highlights from its portfolio of world-class products, including individual components for gaming machine manufacturers as well as complete solutions.

Cash handling equipment is a strategic offering for SUZOHAPP and a broad range of components will be showcased at G2E Asia.

Visitors will get the latest information on the Comestero coin validators that offer excellent coin discrimination and market-leading antifraud technology. SUZOHAPP is also the expert for coin payout devices and visitors will appreciate the advantages of a variety of hoppers. Special focus will be given to the new Intelligent Coin System (ICS) that is a real step ahead in multi-denomination coin pay-out technology.

A rich assortment of cash handling solutions will also be displayed and the innovative CashComplete SDS-35 will be taking center stage at the SUZOHAPP stand. This is a brand new Smart Deposit System which represents

a cost-effective method of securing notes and reducing labor time associated with counting notes. At the SUZOHAPP booth, significant focus will also be placed on the SCAN COIN back-office solutions, including the SC-8220, SC-8100, VC-100D note counters and the SC-360 coin counter.

At this year’s G2E Asia, SUZOHAPP is proud to introduce its new global partner Nanoptix to the Asian market. The vast range of Nanoptix printer solutions will be presented, including the Paycheck NextGen, Paycheck Slim, Paycheck Terminal, Spill Proof with cutter, HSVL Advance and High Speed Coupon Printer.

Find SUZOHAPP at stand 1219 at the show.

Asia Gaming Briefings | May 2018

SUPPLIER SPECIAL REPORT 72 Spintec

Gaming in luxury and comfort

S

pintec’s highlight at this year’s G2E Asia will be their Aura multigame amphitheater, a state-of- the-art gaming solution distinguished by unparalleled comfort, designed to answer all the players’ needs.

The amphitheatre allows for a place for drinks and personal belongings, an ergonomic chair offering the best view of the game and the possibility to move the chair back and forth. It includes a wide sunken screen and the prestige of wood and leather offering the highest comfort while playing.

In addition, the Aura amphitheater gaming solution is completely customizable, which means that the operator has virtually limitless options to choose different colours and set-ups.

Compact electronic table games are Spintec’s flagship on the Asian market.

Spintec’s Karma Electronic Roulette has become one of the most popular electronic roulettes in Macau, now holding a majority share among all new Electronic Roulette installations. At G2E Asia Spintec will showcase their Karma Roulette GEN2 for the first time in Asia, and additionally the company will be

showcasing a compact solution of one of the most popular games in this market, Sic Bo. The core innovation that Spintec will showcase this year at G2E Asia is a blend of LED technology and top design, which enhances visual effects of the ETGs. The result

is a gaming solution that will not go unnoticed.

Additionally, Spintec has added many new features to their top-notch gaming solutions that will make any casino more attractive and appealing to customers.

Spintec can be found at stand 941.

operators to configure bespoke event-driven and mystery jackpots via a secure centrally controlled platform. With the ability to intelligently customize games and provide multiple jackpots, the increased chances of winning keeps players at the table for longer and casinos achieve the best hold possible. Now with the addition of GFL Bonusing Rewards, operators can utilize casino

promotion budgets to fund mystery jackpots, creating an exciting ‘in it to win it’ prize pool which sits independent of the base game.

“We are excited to introduce the addition of GFL Bonusing Rewards to our platform. By providing operators with the ability to offer a highly configurable system that allow players the chance to win casino funded prize pools by just taking part in the game, is a compelling draw for any anyone,” says Rebecca Kingswell, managing director APAC. G2E Asia sees a new addition to the Qorex Electronic Gaming Solutions range. The ergonomically designed Qorex Terminal now has a smaller 23” cabinet in addition to the existing 27” version. Powered by the GFL Gaming module which provides exciting live and automated game content, the new 23” cabinet incorporates all the features of the original larger terminal, but has been designed to provide a more compact footprint – ideal when space is at a premium or there’s a restriction on the number of tables.

Visit the company at stand 1241.

TCSJOHNHUXLEY

Hitting the jackpot

T

CSJOHNHUXLEY, the leading edge supplier of end to end live gaming solutions will debut some exciting new additions to its portfolio at G2E Asia, such as GFL Bonusing Rewards which unlock the potential of progressive and mystery jackpots, providing an exciting twist to the existing Bonusing system.

The powerful progressive system allows

Asia Gaming Briefings | May 2018

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SUPPLIER SPECIAL REPORT 74 TransAct

Real-time printing

T

ransAct designs award-winning Casino, Gaming and Lottery printers chosen by operators around the world.

With the flagship Epic 950® and new Epic Edge® slot machine printers along with TransAct’s robust Epicentral® software, casino operators can print targeted promotions and offers to players from the slot machine – in real-time.

Transact can be found at stand # 719

UltraPlay

Beyond eSports

E

Sports betting giant UltraPlay will present its latest developments and innovative concepts as interest and demand for eSports betting continues to rise.

“Asia is one of the UltraPlay’s top priority markets and keeps on offering enormous business opportunities. We are delighted to attend G2E Asia – the heart of the Asian gaming industry where UltraPlay will once again show the innovations designed to deliver incremental revenues for the betting brands,” UltraPlay CEO Mario Ovcharov said.

Continuing its strong positioning in the Asian marketplace, UltraPlay will present the recently enhanced eSports live betting model - a focal point of the company’s participation at this year’s gaming show.

The new model is already available through the company’s match-predicting system Odds. gg, which serves hundreds of leading iGaming operators across the globe entering or expanding their eSports betting coverage.

Building on what UltraPlay has already

achieved on the eSports betting scene, Odds. gg is constantly upgraded to new levels by offering the widest eSports coverage including 25 game titles of the most popular eSports, 3000 eSports events a month and more than 1500 in-play events.

UltraPlay has expanded its odds feed with Heroes of the Storm Live, and King of Glory as well as covering live betting as FIFA Interactive World Cup and GWENT. UltraPlay’s team will answer why eSports betting holds great potential, and how the iGaming brands can benefit.

The new iframe solution will be presented to show new and exciting features for players to enjoy and the enhanced Sports betting offerings powered by UltraPlay. From providing its turn-key gaming platform with cutting-edge technology features to the alternative way of wagering through cryptocurrencies, UltraPlay will share insights on how to create, position and grow a betting brand to become a global leader in the gaming industry.

Visit UltraPlay at stand 908.

Weike

METG Real Card Virtual Chips

W

eike Gaming Technology will be presenting its new line of electronic table gaming products; including Multi Electronic Table Game - Real Cards Virtual Chips and Virtual Multi-Game in the coming G2E Asia, stand 741.

The METG RCVC is a newly released SemiLive Baccarat Dealer Table using Real Cards Virtual Chips technology; an add-on module to the METG Emperor for “Real Card” experience in an electronic table gaming environment. It replaces the RNG simulated outcomes with live results of the Baccarat game using real poker cards which are barcoded.

Asia Gaming Briefings | May 2018

The product also includes a high definition camera to stream ‘live’ action of the card games to the METG Emperor’s table. METG RCVC dealer table is equipped with an intuitive user interface and peripherals to aid the dealer in facilitating the Baccarat game with absolute ease.

The VMG is a fully automated electronic table gaming product which offers players with 3 virtual table games to play, namely Roulette, Baccarat and Sic-Bo. Player can choose to place bets on any or all of the available virtual games simultaneously. This gives players a variety of game options as well as the flexibility on the

number of games they want to play concurrently.

VMG eliminates the risk of human dealing errors and fraud, and it is a more efficient and cost-effective solution when compared to using semi-automated electronic table gaming products.

“We are very excited of our new range of electronic table gaming products. It shows our commitment to our customers in providing innovative technology and a wide array of gaming options” said Daven Tay, executive director of Weike Gaming Technology.

See these products and more at Weike’s booth, stand 741.

CALENDAR OF EVENTS 75

MAY Japan Gaming Congress 10-11 May 2018 Conrad, Tokyo http://www.japangamingcongress.com/ IAGA Annual Conference 14-16 May 2018 Four Seasons, Macau http://www.theiaga.org/2018-summit-overview G2E Asia 2018 15-17 May 2018 The Venetian, Macau https://www.g2easia.com/ Asia Lottery Expo 15 May 2018 The Venetian, Macau https://www.asialotteryexpo.com/zh-cn.html

Cyprus Gaming Show Conference 29-30 May 2018 Grand Resort, Limassol https://www.cyprusgamingshow.com/

JUNE Millennial Gaming Forum 1 June 2018 Melia, Vienna https://viennagamingexpo.com/register/seminars/ millennial-gaming-forum/ Asian Gaming Networking Social 15 June 2018 Antidote, Manila https://www.facebook.com/AsianGamingNetworking/

AUGUST Australia Gaming Expo 14-16 August 2018 ICC Darling Harbour, Sydney https://10times.com/australasian-gaming-expo

SEPTEMBER International Masters of Gaming Law (IMGL) Autumn Conference 5-7 September 2018 Prague, Czech Republic https://www.imgl.org/conferences/autumn/ overview/2018 http://www.globalgamingexpo.com/

October

JULY

Affiliate Grand Slam 17-19 May 2018 Hong Kong http://affiliategrandslam.com/

World Gaming Executive Summit 3-5 July 2018 W Hotel, Barcelona http://www.terrapinn.com/conference/world-gamingexecutive-summit/agenda.stm

CoinGeek Conference 18 May 2018 Four Seasons, Hong Kong https://coingeek.com/conference/registration/

iGB Live 17-20 July 2018 RAI, Amsterdam http://www.igamingsupershow.com/

Global Gaming Expo 9-11 October 2018 Las Vegas Sands Expo & Convention Center, Las Vegas http://www.globalgamingexpo.com/

NOVEMBER Macao Gaming Show 13-15 November 2018 Venetian, Macau https://10times.com/mgs

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Asia Gaming Briefings | May 2018

LAST WORD 78

Change in the air?

Sharon Singleton

Managing Editor, AGB

The FIFA World Cup will trigger football frenzy across the globe and a sports betting bonanza along with it, but governments in Asia are still not benefiting, seeking to crackdown on gambling activity rather than regulate and reel in the tax revenue.

T

he last event was held in 2014 in Brazil and Sports Lottery, although online betting was outlawed generated a record volumes of bets. It also in March 2015 due to rampant abuse. In theory, the triggered a massive crackdown across Asia, government is drawing up new regulation, but it has been with governments showing a rare degree of a long time in the works.

Still, the idea that they may open the door a crack collaboration to stamp out black market gambling.

Interpol teamed with nine countries, including China, is an interesting one and will likely be viewed with Malaysia, Thailand and Vietnam to shut down illegal interest elsewhere.

In India, another giant potential market, the Law gambling rings, arresting about 1,400 people who were estimated to have handled more than $2.2 billion in wagers. Commission has been asked to analyse the potential impact In reality, given the growth levels in the region, that’s of legalizing gambling and to provide a recommendation likely to have been the tip of the iceberg. For example, to the federal government. The country has been dogged the amount bet on a game by game basis during the by sporting scandals involving its prized cricket team and European Championship in 2016 was 50 percent higher proper regulation has been touted as one way of cleaning up sport as well as providing a significant revenue stream. than during Euro 2012.

The Commission is expected to provide its response This year the World Cup will be in Russia, kicking before July, however, industry off in Moscow on June 14th, and participants are concerned that Asian authorities are once again even if it does returns a favorable expected to gear up to stamp out Operators in verdict, its recommendation will illegal activity. Vietnam already include a considerable number has announced major busts, with Macau would love one involving a former highto introduce sports of restrictions.

Vietnam last year introduced ranking police officer. betting lounges, new rules that will allow betting However, there are glimmers on soccer, horses and greyhounds. of hope around the region that but are prevented The rules were far from perfect the regulator y tide may be from doing so and didn’t go as far as the industry beginning to turn. would have liked -- they don’t allow Before the end of June, the under the law. online gambling for example and U.S. Supreme Court is expected to restrict football betting to a handful rule in a case brought by the state of FIFA-recognized matches -- but of New Jersey, which could result in the lifting of a ban that prevents betting on sports in it is another step in the right direction.

In some jurisdictions around Asia, such as the all but a handful of states.

The American Gaming Association estimates the Philippines and Cambodia, casinos are able to offer sports illegal market there at $150 billion. According to Global betting options to their clients and they are proving highly Market Advisors those figures could potentially translate popular. Okada Manila recently expanded its sports book to $8.25 billion in taxable gaming revenue, assuming an offering though an accord with platform provider FSB (UK), Paddy Power and Jade Entertainment and Gaming average 5.5 percent hold for sports books.

Although not necessarily directly relevant to Asia, it’s a Technologies to take advantage of strong demand.

Operators in Macau would love to introduce sports major domino to fall and some experts have speculated that it will ultimately hasten the advent of regulation elsewhere. betting lounges, but are prevented from doing so under One interesting recent development was China’s the law. Macau Slot, an affiliate of SJM Holdings, holds announcement that it was exploring the possibility of the monopoly on sports betting and provides a far from more sports betting on the southern island of Hainan modern experience for punters.

At G2E Asia in 2017, MGM China chief operating amongst other options to boost tourism numbers. Few details are available, but the government has said it will officer, gaming, John Shigley acknowledged the wide support horse racing and “explore the development of desire to bet on sports in Asia. “We would love to have sports lottery and instant lottery on large-scale international a piece of it and pay a whatever tax rate is most relevant to develop reinvestment and pay the best salary for our games,” the state news agency Xinhua reported.

The country does allow betting through its state-run employees,” he said.

“

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Asia Gaming Briefings | May 2018