BACK ON BLACK

In this April edition of Asia Gaming Briefings we take the pulse of how the North Asia jurisdictions of Japan, Korea and the Russian Far East have fared.

Firstly we go to Japan, which had been counting on the Asian VIP market for about a quarter of its gross gambling revenue for its planned multi-billion dollar IRs. Spectrum Gaming takes us through some of the key developments that have taken the gild off the VIP lily and suggests the course Japan may need to steer to ensure it doesn’t incur China’s ire. While also in Japan, although IRs are unlikely to open their doors for years to come, the online segment is quietly booming, ever under the radar.

The next North Asian market under the spotlight is South Korea. The jurisdiction was seen as highly promising and attracted high profile investment from global players such as Caesars Entertainment and Mohegan Sun. However, gradually the appeal has diminished as Covid and other geopolitical events highlighted the risk of foreigner-only markets.

The third jurisdiction is the Primorye gambling zone in Russia’s Far East. The gaming hub has been slow to develop, however does appear to be gaining traction. A second resort opened last year and NagaCorp has said it’s on track to open its delayed property in 2022. O

n the online sphere this edition’s focus is the latest trends in live dealer. It has been the most popular online vertical in Asia for many years, but as the field gets increasingly crowded, we ask what trends are emerging and what stands out in the pack.

In these pages you’ll also find the most relevant market updates across the Asia Jurisdictions.

Starting with Macau, operators have come back to black and are now looking towards a steady recovery. A combination of concerted cost cutting since the beginning of the pandemic, coupled with steadily improving visitation, has helped Macau operators post positive EBITDA, save for SJM. The market consensus is to get back to two thirds of its 2019 levels by the end of the year, led by the premium mass segment. MorningStar analyst Jennifer Song expects Macau’s full recovery by the first half of 2022.

Meanwhile in the Philippines the outflow of online gaming operators is expected to slow, at least for the time being, following amendments to tax regulations and due to uncertainties in neighboring alternative jurisdictions, such as Dubai or Malaysia.

On to Cambodia, despite having announced a blanket ban on the country’s thriving online gambling scene just over a year ago, the industry is still going strong, particularly in Sihanoukville, supporting casinos.

Across to Australia, and outside of the global pandemic, the trade war between Australia and China is casting another dark shadow over Australia’s already-strained VIP gaming industry, prompting operators to start looking elsewhere for recovery. We also hear from Darwin Casino Resort CEO, Avril Baynes, who is mandated to lead the facility through and beyond the era of the Covid pandemic where it plays a central role within the local community.

Also in these pages is the Supplier Special Report where manufacturers and service providers share their commentary on market trends and expectations going forward, as well as new products range and offerings.

Managing editor Sharon Singleton closes the edition on a high note writing that “although there will be no V-shaped recovery to this crisis, which is dragging on longer than anyone predicted, there is light at the end of the tunnel.” Here! Here!

Happy reading and stay safe!

On behalf of Asia Gaming Brief

Rosalind Wade & Luis Pereira

CO-FOUNDERS