FOCUSING ON INNOVATION

This year, the Macau Gaming Show is placing its focus on new technology and what it terms as “intellectual entertainment” and this edition of Asia Gaming Briefings reflects that theme.

Our Focus Section takes stock of some of the latest trends in gaming and how they are likely to affect operators’ bottom lines. Our first piece discusses some of the latest innovations in technology that are helping to improve operational efficiencies, taking a look at the relative merits of RFID versus optical technologies to manage table performance.

We also discuss some of the issues facing online gaming operators in Asia. While the potential rewards from the multi-billion dollar market are undoubtedly huge, there are also major challenges that can carve a large chunk out of profit margins. From payment processing systems, to the widespread use of agents, through to ever more sophisticated hacking attacks, online operators targeting Asia need to keep on their toes.

Electronic table games have seen strong growth in Macau and some of the larger jurisdictions in Asia, providing a table solution for the region’s baccarat-crazy players at a lower cost point, given the lower labor requirements. While that growth in Macau is expected to slow, ETGs are still expected to see strong expansion as casinos pop up across the zone. We take a look at the latest trends and where that growth is likely to be concentrated.

Lastly, no discussion of technology nowadays can avoid the topic of cryptocurrencies and their possible applications. We argue that Asia may be the leader in incorporating crypto and blockchain into the gaming industry and therefore could act as a catalyst for widespread adoption globally.

In our jurisdiction reports, we focus on some of the political risks that operators will be facing in the year to come. Macau’s gross gambling revenue is feeling the fallout from U.S. President Donald Trump’s trade war with China. Although at the time of going to print, there were some suggestions of a possible thaw, most analysts estimate this will only be a short-term fix and unlikely to satisfy some of the policy hawks in the administration who see Beijing as a geopolitical threat. The resulting slowdown in the Mainland economy will no doubt take its toll on the VIP sector first, though it remains to be seen how much of a dent it will make in the mass market, which now makes up a greater proportion of revenue after operator efforts to diversify in recent years.

And then there’s the Philippines...one of the bestperforming jurisdictions in Asia in terms of GGR growth, though where further expansion is in doubt due to the policies of hardline President Rodrigo Duterte. Galaxy Entertainment and local partner Resorts & Leisure World have been stymied in their efforts to push through an IR project on Boracay, while Landing International’s groundbreaking ceremony for a development near Manila had the rug pulled out from underneath it due to sudden questions about the land lease.

In Japan, efforts to woo both local governments and the hearts and minds of the local population continue apace in the race for a coveted license. Most operators will require the services of local PR agencies to smooth the way, though given the market is dominated by two giant firms, there are considerable concerns about potential conflicts of interest. T

he AGB team will be at MGS and following the seminars. If you’d like to get in touch for a meeting write to us at admin@agbrief.com. See you at the show!

On behalf of Asia Gaming Brief

Rosalind Wade & Luis Pereira

Publishers