BOUNCING BACK, SUSTAINABLY

The world is bouncing back, or at least coming to grips with the fact that going forward not much will be the same as before. Commendably, this industry quickly understood the need to adapt to a new normal, and that the days of targeting the low hanging fruit of the VIP sector are gone. Instead the industry has been taking a mainstream approach and adjusting their offer to cater the consumer market while curbing an unhealthy reliance on international patronage.

The new ‘chapter’ of a post-covid also brought to light the precarious relationship of the gaming industry with sustainability on infrastructural perspective and shift in consumer mentality. It runs deep: Frederic Jean-Marie Winckler, executive vice president and chief creative and brand officer of Melco Resorts & Entertainment highlights sustainability as one of three key issues for the industry going forward. In these pages you’ll also find the most relevant updates across the Asia gaming jurisdictions.

Starting off with Macau, the Londoner is opening its doors after the worst year in modern records and facing the biggest test of the mantra “if you build it, they will come. More than testing current market conditions, the ‘opening’ will also serve to show whether such themed-resorts will continue to appeal to the Chinese traveller looking for the ultimate instagram moment. Nonetheless local operators closed the year tracking much better than in 1Q20 and expectations are high, with Morgan Stanley projecting that all the operators, with the exception of SJM, are likely to be positive on EBITDA for at the end of the quarter. The revamp of Sands Cotai Central comes at a time when the industry mourns the passing of its founder. Sheldon Adelson, whose vision for gaming in Asia helped reshape the skylines of both Macau and Singapore, died in January at age 87.

Meanwhile in the Philippines, competition is adding to covid woes. Operators in Entertainment City had already begun to complain about the impact of rising competition on their margins even prior to the Covid-19 crisis. Now, further to an outlook of high uncertainty due to the erosion of the VIP sector and border controls, they’ll also have to contend with three new developments pressing ahead. On the online sphere, Philippine Offshore Gaming Operators (POGOs) have won a reprieve from a punishing franchise tax, which may reduce departures from the country, but uncertainty over business conditions remains high, industry insiders say.

In turn the country is forging a new path with the introduction of PIGOS where the rest of the region is lagging behind. AGBriefings managing editor, Sharon Singleton, writes that Asia, once the world’s most exciting region, risks being left behind on online convergence. As land-based casinos continue to struggle with Covid-19 mandated closures and social distancing, the big Vegas based operators are snapping billions to acquire sportsbooks and online facing companies in an attempt to diversify the revenue stream. So far only the Philippines has moved into convergence with the introduction of the first licenses that will allow the country’s nationals to gamble online and to allow land-based casinos to accept online bets.

We round up the edition with the traditional Supplier Special Report where you’ll find the most recent offering from landbased manufacturers and online providers.

This February 2021 edition marks the 8th Anniversary of the AGBriefings Jurisdiction Updates magazine. We’d like to take this opportunity to thank our sponsors and advertisers for their unwavering support in these challenging times and reiterate that our commitment to our readers remains as strong, albeit more sustainably, as we first started!

On behalf of Asia Gaming Brief

Rosalind Wade & Luis Pereira

CO-FOUNDERS