AGBriefings August 2021 Edition by Asia Gaming Brief

JURISDICTION UPDATES August 2021 Edition

In focus pg.26

Australia Crown, cashless and casino floor curbs

MACAU

Eyeing Mainland expansion pg.6

VIETNAM The new face of Ho Tram pg.20

CNMI

Untangling the IPI imbroglio pg.38

PHILIPPINES

Online for the masses pg.18

SUPPLIER SPECIAL REPORT pg.42

Asia Gaming Briefings | August 2021

MESSAGE 3

Australia, reloaded

he focus of this August edition of the AGBriefings

local players. Suppliers eager to gain access need to jump

magazine is Australia, where there is certainly a

through a series of regulatory hoops as well as overcome

lot to talk about. The country has shown strong

reluctance from club managers, who prefer to stay with the

resilience in the past few months. It has a strong

tried and tested. We speak with Slovenia- based Spintec,

local market that has been stimulated by government

which has managed to break in, about its experiences.

support, resulting in solid numbers, even up until the

In these pages you’ll also find the most recent developments

most recent state lockdowns. Nonetheless gaming has

across the 22 gaming jurisdictions across Asia.

dominated the headlines for all the wrong reasons.

Starting with Macau, the Grand Lisboa Palace finally

In our first article in this section, Jamie Nettleton, a

opened in Cotai, albeit softly. The massive property opened

partner with law firm Addisons, examines some of the

with 150 new-to-market gaming tables, all exclusively

implications from the findings of the Royal Commission

placed on the mass gaming floor and is expected to

enquiries against Crown and the potential shake out for

host another 118, relocated from other SJM operations.

Australia’s regulatory scene across the different states.

Meanwhile, operators are turning their attention to

We also bring you the thoughts of Paul Newson, a former

opportunities on the Chinese Mainland as Macau steps up

New South Wales regulator, who says what’s needed is more

cooperation in the Greater Bay Area.

power and funding for state regulators and the increased use

In turn, The Philippines is pushing on with efforts to

of modern technologies to help avoid another Crown debacle.

develop its domestic online gambling market, with the

On performance, gaming industry executive David Croft

regulator recently tweaking rules to lift a restriction on

examines the Covid-19 related restrictions, and finds

only accepting bets from VIP players.

that while lower customer numbers and distancing has

In Vietnam, Ho Tram, the country’s first integrated resort

hurt gaming revenue, it hasn’t hurt yields as much as you

has completed its rebranding, which was designed to bring

would expect

in more international travellers and take greater advantage

On the subject of new technology, we examine Australia’s

of the booming MICE space - the grand unveiling has been

first steps into cashless gaming. A club in New South Wales

put on hold due to the Covid situation.

will be trialling digital wallets in the final quarter of this

Also in these pages the Supplier Special Report we bring

year. It will bring the gaming industry up to speed with

you the latest endeavors from the industry’s suppliers from

almost all other forms of retail and entertainment, where

both the land based and online spheres.

Rosalind Wade

Luis Pereira

digital payments are widespread. Happy readings and stay safe!

Problem gambling is always front and centre in Australia, where there is a strong focus on minimizing harm. Our focus section also features research from Sydney’s

On behalf of Asia Gaming Brief

Gambling Treatment and Research clinic, where

Rosalind Wade & Luis Pereira

researchers were given unprecedented access to nearly

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40,000 customers’ account data from six leading sports and race wagering sites in Australia to monitor the efficacy

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of online tools to prevent gambling harm. Finally, we look at the barriers for new entrants into the

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Australia market. Although it’s the sixth-largest in the world in terms of installed units, it’s dominated by just a few

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AUGUST 2021 EDITION SERIES II • ISSUE XIX

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Asia Gaming Briefings | August 2021

CONTENTS 6

GREATER CHINA

SOUTH EAST ASIA

MACAU - MAINLAND OPPORTUNITIES MCCARTNEY INTERVIEW

MACAU - A PALATIAL DEBUT

CHINA

NORTH ASIA

Asia Gaming Briefings | August 2021

CNMI

SUPPLIER SPECIAL REPORT

VIETNAM

CAMBODIA

SOUTH ASIA

AUSTRALASIA

JAPAN

SPECIAL FOCUS

PHILIPPINES

INDOCHINA

INDIA

INDUSTRY OPINION

LAST WORD

58 54

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Asia Gaming Briefings | August 2021

GREATER CHINA

MACAU

Operators eye China projects as governments push integration As Macau and China step up cooperation in the Greater Bay Area, the territory’s operators are paying heed and turning their attention to opportunities on the Chinese Mainland.

Asia Gaming Briefings | August 2021

he island of Hengqin, which has long been touted as key for transforming Macau into a mass-market tourism destination by providing the space for development is in particular focus. Hengqin is connected to the Cotai Strip via the Lotus Bridge and is roughly three times the size of Macau, with a population of about 53,000. There has been talk for decades of greater integration between the two to help drive development of non-gaming amenities. However, progress has been slow, partially due to reluctance among Macau citizens to be engulfed by the Mainland. Covid may have helped to soften attitudes. “I feel that the COVID pandemic has reinforced Macau businesses’ realization that Macau is heavily reliant on the Chinese market for visitors and other supplies, including human resources, although some Macau residents are still resistant to this fact,” says Desmond Lam, professor in integrated resort and tourism management at the University of Macau. “There is already a certain level of social and business integration between Macau and its neighboring Chinese cities. Economic diversity is not just a priority for the Macau government, it is a necessity to ensure continued prosperity for Macau; and so is integration (at all levels) within GBA.” According to Matthew Ossolinski, CEO of GW Investment Consulting, some of Macau’s big six operators are taking another look at opportunities on the island, partly with a view to the upcoming concession renewal process. Land on the island would allow them to expand non-gaming offerings, which some analysts have speculated may be stipulated as a condition in the license tenders. Sands China has already set up back office operations and others are in the process of doing so, while they are also actively seeking out tourism development projects to brand and invest in. Galaxy Entertainment already has a 2.7 sq. km parcel of land on the island, on which it says it plans to develop a “world class, lifestyle leisure resort.” In its 2020 annual report, the operator said it had been encouraged by greater ties between the two locations and was continuing its planning for the project. “Hengqin is effectively Macau’s expansion zone,” said Ossolinski, whose firm provides advisory and business brokering services to integrated resort operators and institutional investors on Hengqin Island. “The vision has been explicit and unwavering for 20 years: to

GREATER CHINA 9

develop Macau into a ‘world centre for tourism and leisure’. Hengqin provides the space and accommodative policy needed to achieve that.” While Macau, Hengqin and the Greater Bay Area initiative are often spoken about as one project, the Macau-Hengqin tourism zone will be its own unique and distinctive market within the Greater Bay, he argues. It’s “an aspiring world class tourism cluster–by revenues the world’s largest–and home to China’s Nasdaq with a Macau label on it,” he says. “It’s like a Las Vegas merging with an Orlando–except with a casino monopoly on 1.4 billion enthusiastic gamblers.” Macau’s tourism industry was brought to its knees by the pandemic and its economy was one of the worst-performing in the world as a result. Eighteen months into the crisis, visitation is nowhere near back to normal and gross gambling revenue for June is forecast to be down some 70 percent from its 2019 levels for the month. It’s been a different story on Hengqin, which is not subject to border restrictions and has benefited from China’s domestic travel boom. Elsewhere in the Greater Bay Area, Melco Resorts & Entertainment’s parent Melco International, has announced plans for a RMB4 billion ($616 million) entertainment complex in Zhongshan, China, in a move seen as likely to benefit its chances of concession renewal. The company has teamed with Chinese property developer, Agile Group, on a premium residential, entertainment and hospitality mixed-use complex. The city is a key hub in the Greater Bay Area and has good connections with Macau, Zhuhai, Guangzhou, Shenzhen and Hong Kong. Ben Lee, managing partner of iGamiX Management & Consulting said it’s a “very clever” move on Melco’s part. “They bypass the usual Macau conundrum of lack of land, labour and government efficiency and have gone straight to the heart. Developing non-gaming diversification in an environment and market which will support that kind of investment,” he said. “They obviously believe that you don’t have to necessarily invest in Macau to win the attention of the true decision makers.” MGM China has also been stepping up activity on the Mainland through its joint venture with China’s Diaoyutai State Guesthouse. The companies have recently announced plans to develop several hotels in Guangdong, including in the cities of Shenzhen and Zhuhai.

GROSS GAMING REVENUE 2020

2021

(units in MOP)

25,000 20,000 15,000 10,000 5,000 0

Jan

Feb

Mar

Apr

Mai

Jun

(Source: DICJ)

GGR 2021E

+144%

GGR 2020E

+77% (Source: Bernstein)

Macau 2025 GGR seen 25% higher than 2019 Macau’s recovery has been slowerthan-expected this year, though analysts at Bernstein still predict a bright future, forecasting the market will be 25 percent higher than it was in 2019 by 2025. They argue that the long-term structural story for the market, driven by mass and premium mass gaming remains intact. In a note on Sands China and Las Vegas Sands, the analysts said they expect GGR in 2022 to reach 89 percent of prepandemic levels and then to see growth of more than 11 percent through to 2025. They said they expect the mass market to be 50 percent higher than it was in 2019. Beyond that date, the analysts said further growth will depend on project development in Macau. Bernstein has an “outperform” rating at both Sands China and its parent company Las Vegas Sands. The firm expects Sands to retain its leading market share of Macau’s mass market and non-gaming revenue. The operator has five properties in Macau and the largest room count, giving it an advantage in the mass market sector. It also has a highly differentiated product offering, with its retail business contributing 12 percent of profit. The company’s mass tables and slots business make up 65 percent of profit, hotels 14 percent and lower-margin VIP just 7 percent. Bernstein notes that Sands has the highest exposure to the mass market of all the operators at 74 percent of GGR compared with the market average of 61 percent. “We forecast Sands to further expand mass GGR contribution to 85 percent of its GGR by 2025 and maintain its market leadership position among all six operators,” it said.

Asia Gaming Briefings | August 2021

GREATER CHINA 10

HK/Macau travel bubble positive, but don’t expect a gold rush The travel bubble that is being discussed between Hong Kong and Macau would be a positive step in opening up the market, but wouldn’t necessarily lead to a surge in gross gambling revenue for the territory, Glenn McCartney, associate professor of gaming and hospitality management at the University of Macau.

cCartney, who has been closely following the recovery of the Macau market explains that any opening will be based on data and science and as a result is likely to be slow and cautious. “You limit the border opening with HK to the few so you can test the system,” he told AGB in a recent interview. “Unless you’re bringing in the high end, the impact won’t be that big for the gaming industry, it will be a positive, but initially not such an impact.” Analysts see reopening with Hong Kong as a major positive for Macau, having accounted for about 20 percent of its revenue prior to the pandemic. However, the former city has had more of a struggle in containing the Covid

Asia Gaming Briefings | August 2021

crisis and officials are treading carefully when it comes to opening the doors. Firstly Macau officials said there needed to be 28 days with no local transmission in Hong Kong. A requirement that has now been met. Then Hong Kong CEO Carrie Lam said she wanted the reopening to coincide with an opening of the Mainland China border, which Beijing says won’t happen until the special administrative region meets certain targets, such as 70 percent vaccination - a level analysts say won’t be met until mid-October. The Macau government has invited health experts from the Mainland to advise it on how to safely reopen. In Macau, vaccination rates have been improving after initial vaccine hesitancy.

GREATER CHINA

(Credit: Unknown Wong)

McCartney says that life in Macau has been fairly normal for most of the last year, with the only inconveniences being the wearing of face masks, which has meant there is no sense of urgency amongst locals to get vaccinated. In a recent study, carried out with a colleague, McCartney found that the inconvenience of getting a vaccine was not a factor in the decision and that the government messaging perhaps needs to change. “There’s a big communication campaign, there’s a lot of messaging, but maybe that messaging should change somewhat,” he said. “It’s a marketing thing, we need to look at what works along the vaccine adoption curve and people at the very end of the product adoption curve will need a bit more messaging to get them to take the vaccine.” “There’s a company in Macau that has people in Macau doing testimonials. It becomes more personal as to why you need a vaccine. The government could perhaps tweak that messaging a little bit to get more people vaccinated.” Despite the evident frustration in the industry and amongst stock analysts that the recovery process is dragging, McCartney urges a more optimistic view. Since a travel corridor

with Mainland China was opened in the third week of September, Macau has seen nearly 4 million arrivals, which is a tourism level few, if any, other destination could match last year. “I think it’s something Macau should be upbeat about. We’ve been very successful in setting up a very safe travel corridor and we’re seeing that recovery in the casino space too.” “I support a cautious approach because if you get any cases because you are going too fast then you’ll have a major setback and no one wants a major setback. We could be backtracked many months from what we’ve achieved right now.” He acknowledged that there has been some slippage due to new outbreaks in Guangdong in June, which saw Macau record its worst month for gross gambling revenue so far this year. But restrictions have eased again as the medical situation has come back under control and analysts are predicting a strong summer. Still, at the end of the day McCartney stresses that in order to have the return of large-scale events, Macau needs to reach herd immunity with its vaccine programme. Increasingly governments are mandating a vaccine certificate as compulsory for travel and large gatherings and ultimately this may help to tip the balance.

“The Foo Fighters concert in Madison Square Garden gathered 20,000 people who all had to show their vaccination certificate. People who do not may be annoyed as they’re a fan and not vaccinated. However, if you want to travel you’re going to have to get vaccinated.”

Asia Gaming Briefings | August 2021

GREATER CHINA 12

MACAU

Grand Lisboa Palace takes its place on Cotai after muted debut SJM Holding’s long-awaited Grand Lisboa Palace made a low-key debut in late July, filling out the offering on the Cotai Strip as the last major IR planned for Macau.

he HK$39 billion ($5 billion) property was scheduled to open in 2017 after beginning construction in 2014. However, it faced numerous delays, including fires and government-mandated halts on construction due to work accidents. As it was, the property opened on July 30th, with just a few days prior notice from executives and little fanfare. On a visit to the property on opening day, AGB noted that there was good interest from the public despite the short notice, with visitors picking up throughout the day. Checks of the casino revealed that about half of the 150 mass gaming tables on the casino floor were staffed, with a steady increase of punters in the hours following the opening. However, given the low profile of the property’s debut, the scene was a far cry from the throngs of visitors witnessed at the opening of the seven other integrated resorts on the Cotai Strip. The property made its debut with 150 new-to-market gaming tables, all exclusively placed on the mass gaming floor. Speaking at the opening, SJM Chair Daisy Ho said that SJM “will be relocating 118 of our own tables

Asia Gaming Briefings | August 2021

from other properties” on the peninsula to its new casino. These will be drawn both from the mass and VIP sections. “It will be a ramp up, and so we will be applying to the government very soon,” she said, noting the group hopes to have the tables

“up, Itandwillsobewea ramp will be applying to the government very soon.

”

on site “shortly, within a month or so.” “As to the allocation of mass and VIP, we are working on it,” she stated. At least two floors within the Karl Lagerfeld hotel tower have been dedicated to VIP Gaming, while one floor within the Grand Lisboa Palace

Hotel tower is also reserved for VIP Gaming. The Palazzo Versace tower was not yet accessible to the public. Both the Karl Lagerfeld and Palazzo Versace hotels are planned to be open – with 270 rooms and suites each, and the “entire Grand Lisboa Palace” is scheduled “to be open by the end of this year,” notes Ho, saying SJM is “looking at a very healthy ramping up”. SJM held the casino monopoly in Macau for decades, but has been gradually losing market share as newer properties opened and the gaming focus shifted to the Cotai Strip. It has lagged all the other operators in establishing itself there and the opening of the Grand Lisboa Palace is seen as key in helping SJM to regain ground. The group’s 2020 annual report indicated that SJM had an 8 percent share of VIP gaming revenue and a 14.1 percent share of Macau’s gross gaming revenue. New property openings in Macau have historically been key revenue drivers for the market, although given the ongoing pandemic and rapidly evolving situation pertaining to travel restrictions with the Mainland, the opening impact may be subdued.

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Asia Gaming Briefings | August 2021

GREATER CHINA 14

CHINA

China soft power packs punch in online gambling crackdown China’s crackdown on online cross border gambling is showing no signs of easing, with Beijing’s increasing deployment of soft power across Asia reducing safe havens for operators.

Asia Gaming Briefings | August 2021

few months back that said that the local online operators are targeting Korea and Japan markets more as a result.” Vietnam and Thailand are also key target markets, though the main pull has been towards India. Many Philippines Offshore Gambling Operators (POGOs) relocated to Dubai in the United Arab Emirates to focus on the South Asia market due to increasingly onerous costs and

(Credit: Markus Winkler)

eijing has pledged to intensify its efforts to eliminate online platforms, websites and mobile applications focused on gambling, with a particular mention of live streaming. It mandated that platforms providing paid promotion services and disseminating relevant information be strictly punished. The government is also encouraging citizens to provide tip offs on online gambling sites. According to government figures, the crackdown has been highly effective, with 110,000 suspects arrested last year, more than 3,400 online gambling platforms closed down and more than 2,800 illegal payment platforms shuttered. However, it’s overseas where Beijing’s campaign is starting to have teeth as regional governments, wary of losing Chinese aid and investment bow to China’s demands. “In short, China’s crackdown this time has been rather effective,” said one industry insider, who declined to be named due to the sensitivity of the subject. “Soft power to Asian governments from China is a real concern and significant. It’s a complex subject that probably involves many different levels of business and cultural contexts, but the result for our industry has been a significant shift in enforcement of China’s policies.” Cambodia, which has been one of the top beneficiaries of Chinese investment, was one of the first to heed China’s warnings and announced a total ban on online gambling in 2019, It had previously tolerated a thriving live dealer industry, centered mainly around the casino hub of Sihanoukville. Despite the ban, business is still booming, but the focus has changed. “I hear many local operators and casino owners groaning about the result in Cambodia,” the source said. “That, along with COVID, has had significant impacts on their businesses.” “Absolutely, fewer companies here are targeting the mainland. I heard something interesting a

business conditions in the Philippines. The UAE has traditionally been a U.S. ally, but lately China has been making inroads in its efforts to improve ties, this month agreeing to supply a COVID-19 vaccine developed in China as well as Chinese technology for fifth-generation (5G) wireless technology to the Gulf state. It was an announcement that raised concern in the industry.

GREATER CHINA 15

“Dubai had been one of the key hotspots for the Chinese operators, but they are on the edge of their seats,” said Danny Too, general manager of Cherry Interactive. “Some of them for safety reasons have stopped their operations.” “UAE was an ally of the U.S. but now China is in the picture so it’s going to be complicated.” Myanmar was another hub for online gambling companies targeting the China market, with billions of investment being poured into smart cities in its lawless border areas. Relations between Myanmar and Beijing have been warming and China is one of the few countries around the world to fail to condemn the February coup. Still, Chinese authorities in the provinces bordering northern Myanmar are seeking to get control of their nationals. According to state media, police in several cities in Southwest China’s Yunnan Province issued notices last week requiring Chinese nationals in northern Myanmar to register their identities at designated sites by the end of July.

They also urged those involved in cross border crimes, such as gambling, money laundering and internet fraud, to return home immediately and confess their sins. To enforce its policies, China is also able to use its Social Credit System to bring pressure to bear on citizens overseas, who in theory should be outside of Beijing’s scope of control. A bad credit score can lead to penalties, such as a flight ban, exclusion from work, or private schools and can be extended to family members residing in China. Another source based in the Philippines said a common punishment is the cancellation of passports for anyone found to be involved in cross border gambling activity. Too said that given the increasing pressure, some Chinese operators who have already made money are deciding to call it a day. However, given the size of the market, others continue to look for innovative ways to stay in business.

GROSS DOMESTIC PRODUCT GROWTH GDP 2020

+2.3%

+18.3%

2021E

+ 8.6%

2022E

+ 5.5% (Source: Reuters’ poll)

China travellers opting for RVs/glamping International travel destinations interested in attracting the Mainland Chinese visitor should be aware of new trends and preferences and tailor their offer accordingly, according to the China Outbound Tourism Research Institute (COTRI). It says there has been a significant increase in luxury camping, or glamping as it’s known, and travel in recreational vehicles last year. COTRI says that more than a 1000 new companies related to RV travel were established in 2020, with millions of Chinese exploring the local countryside through their new vehicles, or through selfdriving organised tours. Popular television series featuring key influencers have sprung up around the idea of “Back to nature” and Western luxury brands have quickly noted the potential. Gucci and Loewe have started selling new collections around the theme.

China cripples crypto mining capacity China claims to have shut down more than 90 percent of its Bitcoin mining capacity after Beijing intensified a crackdown on crypto currency mining. Many mines in Sichuan Province, one of the country’s largest crypto mining bases, were shuttered in June. The country is clamping down on Bitcoin to stop financial speculation, but also to control electricity usage. Beijing has also been stepping up its scrutiny of blockchain for its role in cross border online gambling.

Asia Gaming Briefings | August 2021

SOUTH EAST ASIA

PHILIPPINES

PIGO market gradually evolving, with restriction to VIP bets dropped The Philippines is pushing on with efforts to develop its domestic online gambling market, with the regulator recently tweaking rules to lift a restriction on only accepting bets from VIP players.

SOUTH EAST ASIA

n late 2020, the Philippines became the only launch, but high taxation was hindering the jurisdiction in Asia to allow online gambling development of the market. This would be a familiar refrain to the for locals. The country was also the pioneer in seeking to regulate operators offering Philippines Offshore Gambling Operators services outside of its borders, but targeting the (POGOs), which found themselves squeezed by the government in its attempts to extract as local market had remained a taboo. The Covid crisis, coupled with rampant much revenue as possible from the industry. illegal gambling, forced a change of heart as As a result, many of them upped and left the the government sought to recoup lost revenue country, leaving a further void in government from the shuttered casino industry to fight coffers. According to PAGCOR’s website, the pandemic. The industry generated just only 30 have been given permission to restart PHP25.79 billion ($487 million) in gross operations post-Covid. Lim said the i-gaming platforms are being gambling revenue revenue in Q4 last year, taxed at 42.5 percent of gross gambling revenue, with slightly less for Q1 this year. The Philippines Amusement and Gaming while the integrated resorts will only be taxed Corp (PAGCOR) announced it was allowing its at 25 percent. This is related to legacy issues land-based casinos and two licensed i-gaming involving the initial capital investment to set platforms to accept online bets from VIP members, up the business. “We’re not as efficient or effective in rolling strictly within the borders of the Philippines. out products given the high Since then progress taxation compared with has been slow, with the the unregulated market, major operators, such as or giving out bonuses or Okada Manila and Solaire I do see in rewards to clients as half Resort & Casino still in trial the future more of the revenue goes out as phases for their systems. tax,” he said. An industry insider said operators coming “I do see in the future they were given approval because of the more operators coming for a six-month testing because of the whole phase before going live. whole appeal for appeal for a mobile gaming According to a press a mobile gaming license in a southeast Asian release from Okada’s license. country that is legitimate, parent, Tiger Resorts and but of course you have Leisure Entertainment, high capital outlay and it was the first to receive the GGR sharing restricts such approval on April 15. However, Philippine Stock Exchange-listed the entire industry from really excelling and DFNN’s igaming unit does have its platform being where it should be.” Lim said the issue is not competition with up and running. “It takes time for things to get regulated,” the IRs, who are mainly targeting the VIP DFNN CEO Calvin Lim said in an interview. market, but from offshore operators targeting “For me as long as there is some form of the Philippines. For Lim, the next step should be for the moving forward that’s ok. Some industries require regulation to be approached in a very local industry - from suppliers, to regulators and legislators - to get together to analyse the impact conservative manner.” Lim said two months ago, PAGCOR dropped from the unregulated market. The National the restriction on taking bets from the mass Telecommunications Commission needs to block unregulated gaming sites, while the banking market, which marked a major step forward. “Like I said, when we first started the regulation sector also needs to be held accountable on was very conservative, just VIP players with a payment solutions. “When it comes to unregulated activities certain number of bets in a limited time, but it’s so obvious that’s not effective,” he said. “The it’s not going to be beneficial for anyone, whole mass market that we’re supposed to target especially the consumer who will have zero are not your VIP players so the regulator was protection,” Lim said. DFNN’s Inplay is offering mainly slots and very fast in recognising that and changing the law to allow the mass market player to register random number games, but is seeking to add products, such as live dealer. However, Covid and to be able to play and that’s fantastic.” DFNN, whose online offering is branded has complicated the introduction due to travel as Inplay, said it has seen good numbers since restrictions into the country.

“

”

POGOS APPROVED OPERATORS 41 ABLE TO RESUME 30 SERVICE PROVIDERS ABLE TO RESUME 111 NEWLY ACCREDITED 24 (Source: PAGCOR)

Philippines needs to improve junket supervision: FATF The Philippines has once again been put on the Financial Action Task Force’s (FATF) grey list despite having recently passed legislation to improve its anti-money laundering controls, with supervision of junkets cited as an area of concern. Grey list countries face increased monitoring from the the antimoney laundering and terrorism financing body and need to submit more frequent reports to the organization. They also need to commit to deadlines to quickly resolve the deficiencies that have been identified. It said that since the last report in 2019, the country has made progress on recommended actions to improve technical compliance and deficiencies on targeted financial sanctions. However, it now needs to do more to prove effective risk-based supervision of designated non-financial businesses, including demonstrating that supervisors are using AML and CFT controls to mitigate the risks associated with junket operators.

POGO office demand seen returning Philippine Offshore Gaming Operators (POGOs) are reportedly making a “revenge comeback” to the nation after suffering a mass exodus due to COVID-19 and increased regulations. Leechiu Property Consultants estimates that POGOs are currently in need of 17,000 square meters of office space, after seeing zero demand during the pandemic. Speaking to Rappler, the consultancy’s CEO stated that, while 30 percent of the POGOs have left the country, 70 percent have stayed. The consultancy firm expects more leasing as the nation’s borders reopen to foreigners. At 135,000 square meters, contractions are at their lowest since the second quarter of 2020, as the office market begins to recover, the report said.

Asia Gaming Briefings | August 2021

INDOCHINA

VIETNAM

Ho Tram eyes more international/ MICE business with rebrand Vietnam’s first integrated resort has completed its rebranding, which was designed to bring in more international travellers and take greater advantage of the country’s booming MICE space, although the grand unveiling has been put on hold due to the Covid situation.

Asia Gaming Briefings | August 2021

INDOCHINA 21

Administration of Tourism, the revenue from MICE tourism is about six times higher than from other types of tourism. Pre-pandemic, MICE tourists stayed 3-4 times longer than ordinary travellers and had higher spending as well. On average, each European MICE tourist to Vietnam spends between $700-1,000 per day, while Asian visitors spend more than $400 per day. The Holiday Inn has added additional capacity as well as non-gaming attractions at a slightly lower price point than the Intercontinental, which will focus on the casino and VIP guests. It will eventually contain 15 food & beverage outlets, an entertainment zone, a bowling alley and a water park, but there are no plans to add a casino. “The idea is for us to position ourselves as a leading entertainment complex destination in the south and eventually in the region,” said Moza, who added the company has also applied for five-star certification for the Holiday Inn. Although Ho Tram has seen support from the local market, the lack of access for the majority of Vietnamese to the country’s casinos has been seen as a major concern by foreign investors, made even worse by the pandemic. A number of the IRs, including Ho Tram, have been pushing the government to be included in the pilot program. Currently only Corona Casino & Resort on the southern island of Phu Quoc has been given permission to accept bets from locals, while the second property in Van Don at the opposite end of the country has yet to open. The government has indicated it will extend the pilot program beyond the scope of the initial three years, however, it has not permitted further expansion. Still, Vietnam has been seen as one of Asia’s most promising jurisdictions. It welcomed 18 million arrivals in 2019, prior to the pandemic, an increase of 16 percent on the prior year. The top two source markets were China and South Korea. The country has also seen strong inbound investment, which has boosted the local expatriate population.

Phu Quoc maybe opened to vaccinated travellers The Vietnamese government is studying ways to open up Phu Quoc island to fully vaccinated tourists as a first step in reviving international travel. However, first, 90 percent of the 178,000 living there need to be vaccinated to achieve herd immunity. The island would initially target the Russian tourism market and is likely to open up in September, or early October. Phu Quoc is home to the Corona Resort & Casino, the only open casino in Vietnam where locals are allowed to gamble.

(Credit: Markus Winkler)

he Grand Ho Tram is now known as the Intercontinental Grand Ho Tram following a franchise agreement with IHG Hotels and Resorts. The capacity of the complex has also been doubled with the addition of the 502-key Holiday Inn Resort, which is also an IHG brand and will remain a non-gaming property. The Holiday Inn was scheduled to open on July 1st, but was pushed back as the Covid situation in Vietnam worsened. The resort, which is owned by Asian Coastal Development Ltd., has also refrained from a high-profile marketing and launch campaign, due to sensitivities about the pandemic. Still, Akshay Moza, VP of the commercial division, says the hotel will be ready to open the moment the situation allows, when a wider marketing push is likely. At present the resort and casino is closed, apart from limited hotel guests. Moza said the accord with IHG gives Ho Tram access to the company’s database and its global distribution network. It brings international branding to the property, which has traditionally been more reliant on the domestic market, especially from Ho Chi Minh City. Although local Vietnamese are not allowed to gamble, except in two designated properties as part of a pilot program, many also hold overseas passports, giving the casino a solid base. “We were lucky, the domestic market was very resilient and very strong, not just for the casino, but the hotel has always attracted customers from Ho Chi Minh,” Moza said in an interview, referring to 2020 performance. “While visitors are not confident about taking a plane they will come in a car and our results were pretty buoyant.” But it’s a big property at 543 keys and it made sense to bring in an international name to drive visitation and also to help capitalise on the 1900 square metres of MICE space. This is a fast-growing segment of tourism in Vietnam and makes up about 25 percent of Ho Tram’s revenue. According to the Vietnam National

Government mulls penalties for AML lapses The Vietnam Ministry of Finance is drafting a decree which will stipulate penalties for casino operators operating without a relevant license or having a hand in money laundering. The draft outlines penalties of up to VND 200 million if a casino operates without a Certificate of eligibility. The draft also imposes penalties for violating regulations relating to the prevention and combat of money laundering – with a fine of VND40 to 50 million for failing to report large or suspicious transactions as prescribed by law, or for not conducting proper KYC measures. The draft decree also imposes a fine of between VND90 to 100 million for organizing or facilitating money laundering, such as not blocking accounts, freezing or seizing assets when instructed, or delaying transactions.

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INDOCHINA 22

CAMBODIA

Casinos shuttered on resurgent Covid Up until February, Cambodia was one of the world’s Covid success stories, with very few cases and no deaths. That has now changed, with the government in Phnom Penh struggling to control an outbreak, resulting in the widespread closure of the country’s casino industry.

he country had reported as few as 500 cumulative cases, when in late February, a pair of Chinese tourists bribed a hotel security guard to escape quarantine and go on a shopping and partying spree across the capital. As of the time of writing, there are now 73,701 cumulative Covid cases and 1,305 deaths. The country’s biggest casino operator, Nagacorp, shut its doors in March. Before the latest closure, the owner of the NagaWorld complex in Phnom Penh had reported business almost back to normal since reopening last July, despite a lack of foreign visitation. According to its Q1 results, the most recently available figures, average daily buyins on its public floor tables and electronic gaming machines, as well as daily bill-ins had a recovery rate of about 99 percent compared to the same quarter a year earlier. It also recorded sequential growth from the second half. Despite its robust recovery, including plans to pay a dividend to shareholders, it was fast to announce layoffs for staff, drawing criticism from union groups. Elsewhere in the country, the Ha Tien Vegas and other casinos in Kampot province have been closed since May 30, after reopening in September last year. Likewise all casinos Poipet and Bavet, which mainly serve cross-border traffic, have also closed. Cambodia temporarily shut its borders with Thailand and Vietnam in early July to slow the spread of the disease. Sihanoukville, the casino cluster on

Asia Gaming Briefings | August 2021

the southern coast, had been an exception with some properties remaining open in a situation one operator likened to “being half pregnant.” The rules relating to entry were highly varied, running from strict temperature control checks at the door and QR code registration for track and trace, through to a paid-for Covid test at the door, with the result available in 20 minutes. Others are restricting casino access to hotel guests only. The source said that casinos that were totally dependent on Chinese players flying in have chosen not to open, while those with a player base among expatriates had. However, that was prior to the most recent tightening at the end of July, which introduced a 9pm to 3am curfew and mandated the closure of businesses across the country. Local Cambodians are not permitted to gamble in the casinos, though many also hold foreign passports. There is also a large expatriate base in the country, with many Chinese businesses having relocated to Cambodia in search of a cheaper manufacturing base. In the case of Sihanoukville, this involves the 11.1 square km Sihanoukville Special Economic Zone, or the Westport Economic Zone. The online business in Sihanoukville also continues to thrive, despite a government ban announced in 2019. Sources have indicated that the businesses are actively hiring for their live dealer operations, although perhaps not as above the radar as previously.

Likewise all casinos “ Poipet and Bavet, which mainly serve cross-border traffic, have also closed.

”

INDOCHINA 23

Travel body urges opening for vaccinated travellers The Pacific Travel Agent Association (PATA) has called on the Cambodian government to reopen key tourist attractions, such as Siem Reap, for fully vaccinated travellers. PATA Cambodia Chairman Thourn Sinan made the request in a letter to minister Thong Khon, dated June 29th, local media reports. Sinan said that travel agents were grateful for the early moves of the ministry and the government for organizing the vaccination programme for all of the tourism and hospitality industry workforce. “This will provide confidence to our staff and show that we care for them and demonstrate to the public that we are ‘safe’ and ready to welcome back tourism both domestically and internationally,” he said.

SSEZ handles $1b goods in H1, eyes market listing

Despite the current lockdowns, which have included forced quarantine in giant camps for those testing positive, there is optimism that the situation in Cambodia will begin to improve as the vaccine is rolled out. The country has been fast to get its population inoculated when the vaccines have become available and has one of the

highest vaccination rates in the region. As of late July, more than 6.4 million have been fully vaccinated or had received their first jab, out of a population of 16 million. Prime Minister Hun Sen has said he is committed to securing adequate levels of vaccine and expects herd immunity by the end of the year.

The Sihanoukville Special Economic Zone is eyeing a stock exchange listing to attract more international investors, in particular from Europe and the U.S., local media reports. The zone, which is dominated by Chinese investment, handled goods worth almost $1 billion in the first half, despite restrictions caused by the third-wave of Covid in the country. As of November, the SEZ housed 165 businesses employing 30,000 people.

Asia Gaming Briefings | August 2021

NORTH ASIA

JAPAN

Clash of casino titans becomes a damp squib The future shape of Japan’s IR industry is slowly beginning to emerge, but instead of a heated battle between the world’s gaming giants, regional governments have found themselves with limited choice in their potential gaming partners.

Asia Gaming Briefings | August 2021

NORTH ASIA

ut of four potential locations, of natural disasters, and healing. The company’s proposal consists of a facility the governments of two were left with only one operator left in the of approximately 569,000 square meters in total running. One city’s candidacy will size, including international conference halls, depend on local politics in a hotly contested exhibition halls, restaurants, accommodation mayoral election in August, leaving just one venues, and a casino. The initial investment amount pledged by with a field to choose from. In Osaka, MGM Resorts and Orix Corp have Clairvest for the development of the Wakayama officially presented their bid to the local govern- IR is JPY470 billion (US$4.3 billion). No details have yet been provided about how the Canadian ment after finding itself without competitors. It was once one of the most highly contested investment firm will finance this investment locations, with operators such as Las Vegas or who its partners will be. Announcing details of the RFP process, Sands and Melco Resorts & Entertainment in the bidding. But they all dropped the city in the prefectural government also revealed that favour of the bright lights of Yokohama when Clairvest had not been the preferred partner. it announced it was also a candidate location. Clairvest’s proposal was scored at 656 points The MGM consortium has said it will spend out of 1,000 by the selection committee in its $9 billion on the project, which is shy of the report completed on April 30, while the other $10 billion plus figures initially mentioned, operator in the race at that time, Suncity Group, had scored a far superior but given the changed 720 points. outlook due to Covid, Only Nagasaki still still a respectable result. has a healthy field of In terms of the This is the first candidates competing to timeline for opening, indication ever that build an IR at the Huis however, it has now Ten Bosch theme park been pushed back an IR development in Sasebo, Nagasaki. even further, with the in Japan’s first The Niki Chyau proposal suggesting that Fwu (Parkview) Group, business operations may round might not a partnership between commence sometime have its opening in Mohegan Sun and between 2028 and 2030. Oshidori and Casinos This is the first the 2020s. Austria are all in the indication ever that running. an IR development The prefectural in Japan’s first round might not have its opening in the 2020s. government is expected to announce its decision The new plans apparently call for opening sometime in August. The Parkview Group has taken the so far the Osaka IR in stages. Included in the proposal is the consortium’s unusual step in Japan in revealing details of who agreement with the local government’s its partners may be, with most others playing demand that it bear JPY20 billion in costs their cards close to their chest. Parkview named local companies; for infrastructure improvement, in particular the extension of the Osaka Subway to Ikeda Design; Clean Mat; Dual Key System; Fujioka; Nagasaki Security; Sakura; Kyushu Yumeshima island. Despite the lack of choice, local governor Building Environment Center; Media Box Hirofumi Yoshimura has said that the and Kashu Kogyo. The real wild card remains Yokohama, project and investment was in line with the which is seen as the top prize. Although most government’s vision. Wakayama also found itself with one potential bidders, including LVS, have dropped out, the partner after Hong Kong-listed SunCity Group three that remain look set to fight to the finish. Genting, Melco and Sega Sammy are still dropped out unexpectedly. The city has now formally approved Canadian investment firm vying for the license, politics permitting, although analysts are tipping Genting as having the Clairvest’s application. The overall theme of Clairvest’s plan is upper hand. They say its experience operating “The Country of Woods and Water,” and as an IR in the highly regulated Singaporean the name suggests it will have a focus on the market, which Tokyo analysed extensively Wakayama region’s rich natural heritage. It will when framing its own legislation, may be one also emphasize security, resilience in the face of the factors that give it the edge.

Earthquake hit Fukushima racecourse resumes operations Fukushima Racecourse, one of the ten racing venues of the Japan Racing Association (JRA) system, resumed operations in July after being significantly damaged in an earthquake on February 13. Ceiling panels inside the stand fell onto the track, sprinkler damage led to water leakage, and there was an electrical system failure. An event that was scheduled to be held from April 10 to May 2 was relocated on an emergency basis to Niigata Racecourse, the neighboring prefecture. Racetrack Manager Masakatsu Yabu told the local sports media, “The damage was great, especially on the upper floors, and it took time to restore the power system due to the water leaks, so we decided to cancel the event.”

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OneTouch to launch in Japan OneTouch is set to enter the Japanese market with a series of premium, localised casino games in partnership with a well-established Japan-based studio. OneTouch will launch up to 12 localised slots and table games in the first phase with each title’s design, gameplay and feature sets created in line with thorough market analysis and the needs and behaviours of Japanese players. The mobile-first studio’s first two premium games, BeatsEx and Jewelry Cats, launched on 2nd August with 10 more titles released in the coming months. The Japanese online gaming market has experienced stellar growth in the last year with average levels of spend per active player trending well ahead of typical European benchmarks and several large European brands growing revenues by more than 150 percent in 2020. Petra Maria Poola, Head of Business Development and Operations at OneTouch, said: “The first half of 2021 has been phenomenal for us with our push into more strategic markets including LatAm and now Japan, both of which are exploding and offer endless growth potential for our premium games.

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AGE postponed, but Australia remains in focus The Australasian Gaming Expo was forced to take the difficult decision in mid-July to postpone this month’s event until August next year due the ongoing Covid restrictions in New South Wales.

(Credit: Victor Charlie)

he exhibition is now scheduled to be held from the 9-11 August, 2022. It would have been the first live gaming event in the Asia Pacific region since the onset of the Covid crisis, even if ongoing border closures meant it would not be able to welcome international guests. Still, the focus of our magazine this month remains on Australia, where there is certainly a lot to talk about. Although various states have imposed sporadic lockdowns due to Covid clusters, the country’s casinos, pubs and clubs have been mainly open and demand has been strong. Gaming has also been dominating the headlines in Australia for all the wrong reasons. For much of

Asia Gaming Briefings | August 2021

this year and many months of the last, the country’s largest operator has been the subject of multiple inquiries into its corporate governance. Crown Resorts was found to be unsuitable to hold a license in Sydney, but counsel for a Royal Commission inquiry in Victoria, where it holds its flagship property, recommended outright cancellation for that state, suggesting its problems run too deep for restructuring. In our first article in this section, Jamie Nettleton, a partner with law firm Addisons, examines some of the implications from the findings against Crown and the potential shake out for Australia’s regulatory scene. We also bring you the thoughts of Paul Newson, a former New South Wales regulator, who says what’s needed is more power and funding for state regulators and the increased use of modern technologies to help avoid another Crown debacle. On the subject of new technology, we examine Australia’s first steps into cashless gaming. A club in New South Wales will be trialling digital wallets in the final quarter of this year. It will bring the gaming industry up to speed with almost all other forms of retail and entertainment, where digital payments are widespread. The technology will also be a big step forward when it comes to responsible gaming and anti-money laundering efforts. Problem gambling is always front and centre in Australia, where there is a strong focus on minimizing harm. Our focus section also features research from Sydney’s Gambling Treatment and Research clinic, where researchers were given unprecedented access to nearly 40,000 customers’ account data from six leading sports and race wagering sites in Australia to monitor the efficacy of online tools to prevent gambling harm. Finally, we look at the barriers for new entrants into the Australia market. Although it’s the sixthlargest in the world in terms of installed units, it’s dominated by just a few local players. Suppliers eager to gain access need to jump through a series of regulatory hoops as well as overcome reluctance from club managers, who prefer to stay with the tried and tested. We speak with Sloveniabased Spintec, which has managed to break in about its experiences.

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Technology to empower the gaming regulator Former NSW gaming regulator Paul Newson calls for policy makers to give back power and funding to state gaming regulators - or risk another Crown Resorts debacle.

n an interview with Asia Gaming Brief, Paul Newson, a principal at Senet Advisory and former deputy secretary of the NSW department of Liquor and Gaming said that there currently exists a rather large capability gap between the financial services regulator and the typical gaming regulator, and said that technology should be used to bridge that gap. “For too long, regulators have not turned their lens inwards.... They haven’t started to grasp how to use regulatory technology that has been so well put to use in the financial services space,” he said. “Covid has accelerated that thinking and hopefully will see more in the coming months and years.” Newson hoped to see such technology helping to do away with the need for in-person inspector presence at casinos, whose time is usually filled up by mundane administrative tasks. “My view on it is that it is pedestrian, they are generally occupied with mundane administrative tasks, and it’s anything but intelligence or risk-based,” said Newson. “An inconvenient truth is that gambling regulators have been deprioritised over the last number of years and that’s across all Australian jurisdictions. Too often the organization structure and capabilities are being meddled with through machinery of government changes. They don’t get the budget allocation for big

Asia Gaming Briefings | August 2021

IT spend which is really what’s necessary.” Newson said that the unmasking of Crown Resorts’ unscrupulous practices first exposed by the 60 minute investigation may be the catalyst for change in our industry. “That’s probably the kick in the pants that’s necessary to jockey some people’s changing to say that the dilution and de-funding of the gambling regulator has to stop. You can only siphon off adequate funding for so long.” “To be penny pinching with the gambling regulator, and to be constantly meddling in their organizational structures, capability and leadership - well you can see what’s spilling out of the Western Australia royal commission, I think that’s what it is when it’s at its worst. Newson was referring to the March royal commission into the effectiveness of the Western Australia gaming regulator, which found that both the regulator’s chair and chief casino officer lacked experience and training necessary for effective casino regulation, and also uncovered that the culture of the regulator was one in which the directions and decisions made by senior figures were not questioned. Newson expects the results of the Western Australia royal commission and the Victorian royal commission will spark debate on public policy which could see more power given back to the Australian gaming regulator.

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Covid curbs not as-bad-as-expected for floor yields It has been over twelve months since casino properties around the world began reemerging from their Covid-19 related lockdowns. No doubt, limits on customer numbers and distancing has hurt gaming revenue, but gaming industry executive David Croft says the increased spacing hasn’t hurt yields as much as one would expect.

roft, having most recently served as General Manager – Product & Strategy at The Star Entertainment Group has been observing the performance of gaming floors in relation to distancing restrictions over the past 12 months. “Differing jurisdictions have responded in their own unique way to the challenges of keeping staff and customers safe, but for the most part, it is safe to say that gaming floors around the world have become more sparsely populated than before.” Older-style thinking would dictate that table game and slot machines yield should have waned as a result of the reduced capacity, but in fact, quite the opposite has occurred, he says. “Covid-19 restrictions meant that most properties could not run the gaming floor as they historically have done with the key change being the number of customers allowed at a table,” said Croft. The science of optimizing table games yields revolves mainly around achieving and maintaining an optimum number of customers to a table to maximize profit. We’ve learned that having more customers on a table isn’t always better, especially if it means other tables are left empty. The silver lining of Covid-19 restrictions is that customers have been forced to spread themselves out to other tables that may have otherwise been ignored. “Covid-19 protocols have inadvertently given the operators the opportunity to enforce limits on the number of customers on tables – as a result many operators are reporting higher hold and increased profit per open hour as a result of productivity gains (less customers per table) and increased pricing (supply vs demand pushing prices up),” notes Croft. Post pandemic, the dilemma facing operators will be how to continue encouraging customers to occupy other tables, whilst ensuring that their freedoms have been impacted. Another interesting trend from this has been seen in electronic table games (ETGs). Customers that haven’t been able to find a seat at a gaming table (or have been priced out) are now finding themselves playing ETGs instead – helping to drive up occupancy and revenue at greater margins than of traditional tables.

Research into why people play ETGs (over table games) leads to five key reasons: Price, capacity, learning to play, speed and privacy. Thus, Covid-19’s impact on traditional tables has certainly boosted interest in ETGs for customers, particularly on the price and capacity front. As properties reopen, operators will need to have a rethink about the ETG’s place on their casino floor. Will ETGs improve the profitability of the casino, given a reduction of average bet but more frequent games? Is there a risk of customer loss as a result of their preference to play traditional tables? And what is the optimum price gap between traditional tables and ETGs to ensure we have the right customers in the right place at any given time? Like tables and ETGs, gaming machines have not escaped government restrictions, which have required either a separation of gaming machines physically, or having every second machine turned off. Either way, the same distancing outcome was created. However, despite the constraints placed on machines, properties have not seen the decline in revenue that was predicted 12 months ago, said Croft.

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Australia continues to prove tough nut for suppliers to crack Australia has more than 8,000 bars, pubs and clubs, with many licensed to offer some kind of gaming product, over and above its regulated casinos, which should on the face of it provide an interesting opportunity for global suppliers.

ccording to figures from IBIS World, the annual revenue generated by these premises is about $15 billion. The country is in sixth position globally in terms of slot machine installations at 192,800, despite only having a population of 25.3 million people. However, both Australia’s clubs and casino market are dominated by a handful of major players - Aristocrat Entertainment and Ainsworth - with high barriers to entrance hindering the introduction of new and innovative product choices. “New entrants into the gaming machine market in

Asia Gaming Briefings | August 2021

Australia face many significant barriers in their efforts to get their products onto a gaming floor and in front of customers,” said Neil Spencer, managing director of Australia-based Gaming Consultants International. “They must convince a gaming manager that their product is worth buying (or in many cases, worth trying).” “In today’s capital constrained market, exacerbated even more so as a result of COVID lockdowns and restrictions, the choice between a whole new machine and game versus a game conversion into an existing box is overwhelmingly in favour of conversions.” Spencer says gaming managers will also be looking

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for guarantees of performance and typically need to justify purchases on the strength of expected upside – something which cannot be easily assessed for a new product. The market leading games have an entrenched position in the eyes of customers and gaming managers and competition between existing suppliers is intense. These companies typically have significant R&D resources and also the financial capacity to offer very attractive terms. A new entrant to the market generally has a weaker financial footing compared to the established vendors, and thus is often not able to compete without extreme pricing discounts. The battle is not over even if a sale (or trial) is settled – maximising exposure to customers is vital to giving a new product the best chance to succeed and this means securing prime gaming floor real estate. “The pressure on gaming managers to produce maximum floor yield, means that ‘taking a chance’ on a new product versus a tried and true performer often results in new products, particularly new machines, having

less than ideal floor positions and this may result in earning constraints,” Spencer says. These are some of the operational barriers suppliers will face, but first they have to overcome the regulatory hurdles to enter the market, which are seen as some of the toughest in the world. Variances from state to state, also push up regulatory compliance costs for businesses. One supplier deciding it was worth it to take the plunge was Slovenia-based Spintec Gaming Technology, which specializes inElectronic Table Games. At just under eleven years old, it’s a relative newcomer to the industry and has made significant inroads into markets in Asia, including Macau. It recognized the potential of Australia’s club market and the lack of any similar product offering to its own and began the process of certification in 2017. It first went live in Sydney’s Epping Club and now has products in four of New South Wales’ more than 1,000 clubs. It has installed its Aura playing stations offering Virtual Baccarat, Virtual Roulette and Virtual Sic Bo in the Epping Club and won approval for an Automated Roulette Wheel at the beginning of July. It also got approval for our compact Karma 6-, 8- and , 10- and 12- seater machines. “We are the only ones with Automated Roulette Wheel in New South Wales clubs,” said Mitja Dornik, Spintec’s regional sales manager, who joined last year to help spearhead the company’s expansion in Asia and Australasia. “Now that we have all these products we can start to sell them but it was really difficult to obtain the certification. I’ve worked in Asean and other territories and this is one of the toughest,” he said. “Australia was the only continent where we were not present. We saw that it was possible to enter with excellent products, but quite frankly, we did not realise it was quite as difficult.” Spintec worked with Independent Gaming to enter the market and Dornik says having a local distributor to help navigate the maze of legislation is essential. Some of the difficulties include the use of different communication protocols in each of the jurisdictions, with four different protocols operating across Australia - X-Series, QCOM, ASP and SAS. The company said there is an Australian and New Zealand national standard, but each state has an appendix with different requirements. And then there

I’ve worked in “Asean and other territories and this is one of the toughest.

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is a different set of rules again to enter the country’s casinos. Spintec’s next step will be to get through the certification process for entering Australian casinos. While player preferences appear deeply entrenched in Australia, Dornik said that feedback so far has been positive. “Our distributor says that players welcomed our solutions with great enthusiasm. You have players that prefer virtual and players that prefer automated games. With our solution, they now have both in one product. So far, the response is very good,” he said. With the stringent regulation, market fragmentation and entrenched positions, the market has not been viewed with as much enthusiasm as some of Asia’s other emerging jurisdictions. However, Covid has highlighted the resilience of Australia’s domestic market, with pubs and casinos reporting a strong snapback once they were allowed to reopen, even with its borders closed.

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Australia takes step towards cashless gaming Digital gaming wallets are finally making their first inroads in Australia after years of stakeholder debate, with Australia’s first digital gaming wallet trial set to take place in an NSW club in the final quarter of 2021.

n the surface, it’s a technology that could bring Australia’s gaming sector in line with virtually all other sectors, allowing customers to use their digital wallets to supplement cash and cashless technologies. Until now, players have been required to bring physical cash into gaming venues, or onto player cards or tickets which are then loaded onto the machine.

Asia Gaming Briefings | August 2021

On a deeper level, this cashless technology is set to bring responsible gaming and anti-money laundering (AML) capabilities out of the dark ages. Nevada, which rivals NSW as the world’s biggest state-wide EGM market, finally made this step last year during the pandemic by approving the use of cashless wagering technology in casinos. The Covid-19 pandemic generated real concerns about

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The cornerstone of the digital wallet technology used in the trial is Aristocrat’s PRIME Mobile system, which allows players to set up gaming limits and determine the venue response for when limits are reached. Thresholds can also be established for session length, frequency of play, the amount spent or won, total bets, bet size, and staff intervention can be enabled. Messages and push notifications are sent to the patron via the venue’s gaming management system. Credit cannot be used, there are limits on funds transfers to the player’s digital wallet, and toppingup on the gaming floor is not permitted. Players can also self-exclude using the app. Additionally, PRIME Mobile structure provides a quarantine wallet to allow players to prevent funds from being used for EGM

One of the key “questions that will

be answered by the trial is around digital wallets’ impact on a patron’s gambling behavior.

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physical bills being a vector for the virus. On the other hand, Australia’s gaming industry push for cashless appears to come from a responsible gaming and AML front, issues that have become the centerpiece of discussion amid ongoing inquiries into Crown Resorts’ practices across the country. Craig Butler, director of commercial strategy at Aristocrat Australia has been chosen to lead the digital wallet trial, which will take place at Wests Group New Lambton venue, in Newcastle NSW. Trial preparations will commence in August and the trial itself will occur in the final quarter of 2021. “This is an exciting development for the industry. As you know, consumers are rapidly moving toward cashless and mobile payments. This is a global frictionless trend that has only been accelerated by the Covid-19 pandemic with patrons seeking cleaner, contactless payment solutions,”

according to Butler in an interview with Asia Gaming Brief. “We know that governments and regulators are increasingly expecting cashless gaming to support industry integrity and stamp out any illegal activity, as well as offer new responsible gameplay functionality to patrons. Aristocrat believes that facilitating cashless payments is a key pillar that will underpin the ongoing sustainability of our industry.” One of the key questions that will be answered by the trial is around digital wallets’ impact on a patron’s gambling behavior. Specifically, whether there is any exacerbation of gambling harm among other considerations. “While a trial research scope is yet to be determined, we believe this will be a factor considered by the regulator in making its decision on whether the digital payment solution is suitable for approval in NSW,” Butler explains.

play for a period of 24 hours. It is a technology that gaming futurist Earle Hall, CEO of AxesNetwork says is imperative for responsible gaming. “Responsible gaming is a fallacy without Know Your Client (KYC) empowerment. Anonymous responsible gaming policies only lock the barn door once the horse has been stolen,” said Hall in an interview with AGB. “With KYC, responsible gaming is real, quantifiable, and traceable. Think cashless smart cards. There are a number of modern jurisdictions that already require players to be verified against some form of national identification. Once the player or patron has been identified, they are issued a player’s card and then can play. Then the fun starts.” Thus a clear question remains. Why has it taken so long for Australia and other jurisdictions like it to take on digital wallets in gaming venues?

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Jamie Nettleton*

Brodie Campbell*

Crown case highlights lack of regulatory communication In early June 2021, the Australian Transaction Reports and Analysis Centre (AUSTRAC) announced that it had stepped up its investigations into possible breaches of Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) laws by a number of the leading Australian casinos, including Crown Perth, The Star Sydney and SkyCity Adelaide. This followed an earlier investigation commenced by AUSTRAC in October 2020 into potential non-compliance by Crown Melbourne.

hese investigations follow the highly publicised inquiry into Crown Resorts conducted in 2020 by the New South Wales casino regulator, the Independent Liquor and Gaming Authority (ILGA) (the Crown Inquiry). The report of this inquiry, handed down by former Supreme Court judge Patricia Bergin in February 2021, highlighted (among other things) severe deficiencies in Crown’s compliance with AML/CTF laws and found that Crown had effectively “enabled or facilitated” money laundering in respect of transactions through its casinos. Separate Royal Commissions into Crown have since been convened (and are in progress) in Western Australia and Victoria. It is therefore unsurprising that the effectiveness of Australia’s AML/CTF laws are being examined

Asia Gaming Briefings | August 2021

closely by the Federal Parliament. AML/CTF laws are being reviewed by the Legal and Constitutional Affairs Committee of the Australian Senate, who are investigating the adequacy and efficacy of Australia’s AML/CTF regime. The Committee’s terms of reference include reviewing ways in which Australia’s AML/CTF regime can be strengthened, the responsiveness of AUSTRAC and the effectiveness of legislation outside the banking sector. This inquiry, which is expected to consider the introduction of additional AML/CTF obligations for reporting entities (such as casinos), has the potential to have major implications for the Australian gambling sector. Despite the increased scrutiny recently of Australia’s AML/CTF laws, the recent announcement of investigations into land-based casinos highlights the difficulties that regulators face when it comes to monitoring AML/CTF compliance and enforcing breaches. For example, the Bergin Report noted that, in many respects, casinos function in a manner similar to banks. However, unlike customers of banks, casino patrons are not required to disclose their business or professional activities prior to making a transaction. As a result, there is often limited capability to distinguish between patrons who are laundering funds and other patrons. Further difficulties arise in relation to junket operations, which are often opaque and may involve a number of anonymous participants. As noted in the Bergin Report, casino operators often do not have proper visibility over dealings between junket operators and casino patrons, nor are casino operators necessarily aware who is behind the corporate entity of a junket. As the Crown Inquiry demonstrates, investigations into junkets are therefore difficult from a regulatory perspective given the lack of transparency and, consequently, regulators face difficulty in obtaining fulsome and accurate documents and records. Some of the problems involved in monitoring compliance with AML/CTF laws may also be likely attributable to the apparently limited cooperation

FOCUS 35

to date between AUSTRAC and casino regulators (which are appointed at the Australian State/Territory level). In 2017, after undertaking a review of junket operations in Australia, AUSTRAC released a report which outlined steps (including changes to the law) that could be taken to mitigate money laundering risks arising from junket operations and recommended a greater degree of collaboration and information sharing between AUSTRAC and casino regulators. However, the 2017 report was not provided to casino regulators, and the report itself was only made public following a Senate production request in late 2020. Following the release of a further, more comprehensive report by AUSTRAC in December 2020, the CEO of AUSTRAC sought to distance AUSTRAC from the 2017 report on the grounds that it is not completely accurate. These reports demonstrate that even AUSTRAC, as the Federal regulator primarily

responsible for AML/CTF intelligencegathering, has difficulties in analysing and understanding the operation of junkets. The degree of information sharing between AUSTRAC and casino regulators was referred to unfavourably in the Bergin Report, which noted that “thirty years of recommendations and reports” regarding the advantages of inter-agency information sharing have not “jettisoned the ever-present attribute of turf protection”. Further, the Bergin Report highlighted that some of the secrecy provisions in AML/CTF legislation have entrenched this attribute. Difficulties regarding the enforcement of AML/CTF laws have also been highlighted in the Victorian Royal Commission into Crown Melbourne. In closing submissions on 20 July 2021, it was noted that any shortcomings associated with the investigation of the casino regulator are partly attributable to the failure of Crown to provide accurate information. In

the words of Counsel Assisting, the Victorian regulator “issued notices for the production of documents which were either not responded to, partially responded to or responded to late or delayed.” Regardless of any changes to Australia’s AML/CTF laws which are introduced following the current review by the Committee, effective enforcement will require a greater degree of cooperation between AUSTRAC and casino regulators and will require casino operators to actively foster a greater culture of compliance. As noted in the Bergin Report, there is a pressing need for casino regulators to have far better access to information concerning suspect transactions before any meaningful change is likely to occur. *Jamie Nettleton is a partner with Australian law firm, Addisons and Brodie Campbell is a solicitor with the same company.

Asia Gaming Briefings | August 2021

FOCUS 36

Sally Gainsbury*

Do online responsible gambling tools work? Findings from a recent study into the use of responsible gambling tools in Australia’s online gambling space will likely have researchers and regulators questioning the effectiveness of current policy.

Robert Heirene*

esearchers from Sydney’s Gambling Treatment and Research Clinic were recently granted unprecedented access to nearly 40,000 customers’ account data from six leading sports and race wagering sites in Australia. With this data on hand, they sought to find out several key questions.

Asia Gaming Briefings | August 2021

How many online gamblers actually use the responsible gambling tools available to them, such as deposit limits and ‘timeouts’ or ‘take-a-breaks’? And once someone sets a limit, do they alter or remove it? And lastly, are players who use these tools different to those who don’t — are they older or younger, male or female, do they wager often or infrequently?

FOCUS 37

How many online gamblers actually use responsible gambling tools? Unsurprisingly, the study found that the majority of customers (83 percent) did not use any responsible gambling tools available to them such as deposit limits, timeouts, and self-exclusion. For those that did, deposit limits were the most commonly used tool at 16 percent, but the study also showed that many customers (25 percent) using limits ended up increasing their limit amount, making it less restrictive than before, whilst a small percentage (3 percent) removed their limits altogether. These findings will likely have researchers and regulators questioning the effectiveness of current responsible gambling tools and policy. How do those who use responsible gambling tools differ from those who don’t? The study made another interesting find.

Customers who didn’t use any responsible gambling tools, and those who only used deposit limits were similar in almost every way. Whilst those who used timeouts and self-exclusion (and potentially also deposit limits) were more likely to be younger, male, placed more bets, bet more money on average, deposited more money on average, won less, had fewer days without gambling, and had more variability in how much they gambled and won day-to-day. This painted a clear picture: timeout/selfexclusion users appear to gamble in a more problematic way than other customers. What other findings were interesting? However, perhaps one of the most interesting findings from the study was something the researchers didn’t intend to look at when they first obtained the data, and that was the impact

of a new Australian Government policy that required all online gambling sites to make their customers either set a deposit limit or actively opt out of setting one. What the authors found was striking—in May of 2019 (the month when the policy came into effect), the number of limits set rose to 187 from an average of 5 limits per month in the preceding 10 months. What do all these findings tell us about the state of consumer protection for online gambling? Well, it’s clear that many online customers aren’t utilising the protection measures currently offered. This could be for several reasons, including the perception that they’re only for “problem gamblers” or a lack of awareness of the tools, but regardless of the reason more needs to be done by sites to promote these tools. The study shines a light on a key limiting factor of existing tools: the ability to easily change and remove self-set limits. At the time of the study, all six sites ensured a two-week lag period between requesting a limit increase or removal and the change coming into effect, but clearly this wasn’t a sufficiently large hurdle to prevent customers from making these changes. What are the limits? This finding begs several questions (the answers to which are beyond the scope of this article): are site-level limits the answer? Or should banks step in to allow people to set limits on their gambling expenditure that will apply across all sites? The marked effect of the ‘opt-out’ limit setting policy demonstrated in this study has important implications. If such a minor, inexpensive change can result in a dramatic uptick in the adoption of limits, then the use of this strategy should be trialled for encouraging other responsible gambling behaviors, such as opting to ban gambling on one’s credit card(s). Overall, this new study provides a comprehensive overview of how Australian customers are using the protection measures available to them. It’s clear there is much to be done to improve online gambling consumer protection, but this study points regulators and industry in the right direction. * Associate Professor Sally Gainsbury is a leader in gambling psychology research at the Gambling Treatment and Research Clinic. Dr. Robert Heirene is a Postdoctoral Researcher at the Gambling Treatment & Research Clinic, based within the Brain & Mind Centre, University of Sydney.

Asia Gaming Briefings | August 2021

AUSTRALASIA

CNMI

Saipan seeks to unravel IPI mess Authorities in the Commonwealth of Northern Mariana Islands are considering a proposal for two gaming licenses for the island of Saipan if the monopoly permit of Imperial Pacific International is revoked.

Asia Gaming Briefings | August 2021

emocratic representative Tina Sablan, who also vice-chairs the House Gaming Committee, said there is a high probability that the license, which has been suspended indefinitely, will be taken away. She said the company has failed to remedy any of the shortcomings, such as payment of regulatory fees and tax, and more complaints from the regulator are pending. The CNMI issued the license to the Hong Kong-listed company in 2014 in the hopes that a casino industry would help to boost the slumping economy and draw in tourists, especially those from China. However, it has now found itself with an unfinished white elephant of a project in Garapan, the heart of its tourism district and is in a quandary as to how to remedy the situation. “There were always questions from the beginning about how sustainable this industry was going to be with the grandiose promises and the very big numbers that were being thrown around,” she told AGB in an interview. “I think those fears have played out.” “There are some discussions about how we would move forward if and when this license is revoked. There is a proposal on the table for two licenses, it would not be an exclusive license, but I think it would be worthwhile to examine whether we even want casinos on CNMI.” The market has changed significantly since the project was first conceived, with the China VIP market having been hit hard by trade wars and anti-corruption drives even prior to the pandemic. Sablan said the Marianas Visitors Authority has a ten-year strategic recovery plan for the industry and gaming is no longer part of the strategy. IPI has asked for a five-year extension to complete construction of the resort, however, it has been banned by the federal government

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from using imported workers under the CW-1 and H1B visa programs. There is a scarcity of labour in the CNMI, which will continue to create difficulties for the company even if that extension were to be granted. If IPI’s license is revoked and other players come in, there is also a question mark over whether they would want to take over the project. “We can learn a lot from this experience, but at the moment it’s a big mess,” she said. “Everyone is pretty frustrated, the question is if it’s not IPI who can come in and finish this project and what do we do with the site at Garapan and is this even salvageable.” Sablan explained there are serious concerns over safety and building standards at the site, which has remained exposed to the elements for several years as work has not progressed. IPI itself is also embroiled in numerous lawsuits, which are likely to remain tied up in courts for years to come. As the company lurches from crisis to crisis, legislators are stepping up the pressure for a second license on the island. The text of the legislative proposal reads: “It is more than probable that the exclusive casino operator will not be able to complete the construction of its initial gaming facility and overcome all of its financial and legal problems which may result in the revocation of its casino license. If the exclusive casino license is revoked, the CNMI should take the opportunity to overhaul the casino industry by revisiting the casino statutory provisions and regulations to improve the industry.” The company, which is facing multiple lawsuits from contractors for payment failures, has now also been ordered to sell its vehicles and gaming machines in order to satisfy a $2.1 million judgement against it by USA Fanter Corp.

VACCINATION OVERALL SUMMARY Eligible Population Fully Vaccinated 70.6% (Source: VaccinateCNMI)

CNMI agrees travel bubble with South Korea The Commonwealth of the North Mariana Islands has launched a travel bubble for fully vaccinated tourists from South Korea in a bid to revive the island’s tourist economy. According to the Marianas Visitors Authority, this is South Korea’s first such travel agreement. It was signed by CNMI Gov. Ralph Torres and Seong Kyu Hwang, vice-minister of the Ministry of Land, Infrastructure and Transport in person, in Seoul. “The agreement between (the ministry) and the CNMI is the biggest step forward in rebooting the CNMI tourism industry,” said Marianas Visitors Authority Chairwoman Viola Alepuyo, who was part of the CNMI delegation. “This travel bubble is the bridge we need for Korea travelers choosing our destination as tourism resumes worldwide.” Under the travel bubble agreement, those who travel between the two countries will be required to have their vaccinations completed at least 14 days ahead of departure. Those arriving to the CNMI who are fully vaccinated will be able to skip quarantine, as well as those who present a negative covid-19 test 72 hours prior to arriving in the CNMI. Visitors will be required to also take a covid-19 test three days before departing the CNMI on their way back to Korea.

Concern raised over Papua New Guinea casino plans Plans to build a $43 million casino in Papua New Guinea capital Port Moresby have come under fire from social activists who claim the country doesn’t have adequate infrastructure to properly regulate the industry. An agreement to build the property was signed on May 28 between Paga Hill Development Corporation and the National Gaming Control Board (NGCB). The operator said the resort, which will include a hotel and retail space, will help boost tourism to Papua New Guinea.

Asia Gaming Briefings | August 2021

SOUTH ASIA

INDIA

Covid drives online growth, attracting foreign investor interest India’s online gambling market has seen explosive growth during the Covid crisis and that’s showing no signs of slowing down as overseas investors increasingly target the market. Asia Gaming Briefings | August 2021

rom August 2020, to January 2021, the sector attracted inbound investment of $544 million and that’s expected to double over the next 12 to 18 months, according to Maple Capital Advisors. “Real money gaming in games of skill will see continued investments in our view especially where the judicial clarifications on qualifying for games of skill at the highest level of judiciary is pretty clear,” Maple founder and managing director Pankaj Karna said. “Clearly with ~ 15 percent of the global gaming traffic, we believe investments will be a key route to participate in the market.” For KPMG, Covid provided a tipping point for online casual gaming in India, pushing acceptance of gaming into the mainstream as Indians remained locked down at home for much of 2020 and into 2021. There were more than 500 million smartphone users in the country at the end of last year, with a growing number of providers offering affordable data packages since 4G was introduced in 2016. KPMG estimates that the number of gamers rose from 250 million at the end of FY2018 to about 400 million by the middle of last year, making it the second-largest base of online gamers in the world. About 94 percent of those are on mobile phones. In terms of market size, real money games are expected to generate revenue of INR49.8 billion ($670 million) this year, rising to INR61.3 billion by 2025. The firm separates out online fantasy sports, which are expected to see even higher growth, more than doubling from INR24.3 billion to INR54.3 billion. The casual gaming sector is still the largest at INR60.2 billion and is forecast to surge to INR169 billion. “The market is at a once-in-a-generation inflection point,” Salone Sehgal, managing

SOUTH ASIA 41

director of Lumikai, a gaming-focused venture capital fund, wrote in a Maple Capital report. “With 67 percent of India’s millennial audience being active gamers, we have a generation of digital convergence native users who have been exposed to gaming, social media, audio, chat, video content all at the same time, creating a massive white space for new mediums of interactive entertainment.” In the second half of last year, fantasy sports company Dream 11 received a $225 million investment from funds including TPG, marking the biggest deal in the sector. Others included two rounds of funding for Mobile Premier League for a total of $185 million and $68 million in Nazara Technologies. According to Maple, 38 percent of all transactions in terms of total amount went to real money gaming firms, with 35 percent of deals in terms of number. As well as equity investors, a growing number of online firms are launching Indiafacing products. Many who formerly coveted the China market are turning their attention elsewhere as Beijing relentlessly cracks down on online gambling. However, regulation remains an issue in India. Skill-based, real money games are legal, but there is a patchwork of differing approaches depending on the individual states. Some, such as Telangana and Andhra Pradesh, have recently chosen to ban all forms of gambling, skill-based or not. Karna said the resulting lack of an overall legal framework has led to industry self-regulation, with trade associations and operators taking it upon themselves to adhere and establish best practices. “We expect greater regulation over time,” he said. “There is some effort to regulate in certain games of skill but I see this playing out in the longer term.”

GROSS GAMING REVENUE GAMING AND ESPORTS REVENUE 2020 INR11,250 REVENUE 2025E INR24,212 CAGR Mobile esport revenue 2020-2025 CAGR

+16% +31.6% (Source: PwC)

Hyderabad leads the field in shifting to online betting Off-season horse racing in India is set to go online, as the Hyderabad Race Club (HRC) announced spectators can only tune in for the event online during the last week of July. Spectators and punters have been waiting to watch live races since the pandemic struck the nation, causing racing outfits and betting groups to shift their strategies. This includes a recent announcement to show live British and Irish horse racing live for parimutuel betting into pools vai Hyderabad Race Club’s digital platforms. A move which insiders say “wouldn’t have happened” if the lockdown hadn’t shifted racing online. An HRC spokesperson said that the online shift will make the move “dull” for spectators, urging for a return to normal racing and betting.

Delta posts loss as Covid closes casinos India’s Delta Corp swung to a loss of 28.93 crore in the first quarter of the fiscal year, compared with a profit of 57.77 crore in the same period a year earlier as Covid forced the closure of its casinos. Delta is the only listed operator in India and has three offshore casino boats in Goa, a property in Sikkim and is opening a land-based casino in Nepal. It also owns an integrated resort in Daman, which has not yet been granted a casino license. It also owns online gaming platform Adda52. Delta said net sales from the casino division were negative 34.55 crore, while its online skill gaming division posted net sales of 0.42 crore, down from 4.14 crore a year earlier.

Asia Gaming Briefings | August 2021

SUPPLIER SPECIAL REPORT 42 1XBET

Changing the game with Asian innovations

xBet has long been a leading global betting brand. However, it’s not easy to gain such widespread acclaim because each region has its own characteristics and betting culture. According to representatives of 1xBet, the company diligently analyses all factors when seeking new areas of growth. Let’s look at how the brand is developing by using the example of how they operate in Asian countries. 1xBet always invites its players to take part in a variety of promotions with great prizes. Some promotions have a global reach,

but there are also regional promotions that consistently generate the interest of players from a specific country. That’s why the “Risk-Free Bet” campaign dedicated to J-League matches was launched especially for Japanese players. Also, players can bet without risk in Vietnam and Myanmar. Recently, this promotion has also appeared there for top football matches. It’s a known fact that there are a large number of football fans in these countries, and similar promotions from the bookmaker are particularly popular. Even though the vast majority of the world’s population speaks English, it’s always easier to express your thoughts in your native language. 1xBet understands this very well; that’s why the bookmaker offers a support service in 30+ languages. Recently, Japanese has also appeared in the list of available languages. This means that 1xBet players from Japan can contact and ask questions in their native language and receive a prompt response. Players from Malaysia, Vietnam and Myanmar can also get help in their home language through an online consultant on the site. 1xBet offers its players a wide range of

payment systems: from the most famous in the world to local ones that are popular in a specific region. So, in the Philippines, the GCash payment system, which is quite popular in this country, has recently been offered. More interesting options have also appeared in Indonesia, where players can deposit and withdraw winnings through Dana, GoPay and Link Aja payments. In addition, the brand regularly invites Asian players to participate in promotions, where a bonus is given for a deposit using a specified payment system. For example, until August 13th, Japanese users can get 10% cashback for top-ups using Jeton. This appeals to players who wish to see immediate tangible benefits from playing on 1xBet. The previous few months have proven fruitful for 1xBet. The company continues to improve its support service while also adding more options for deposit/withdrawal of funds and making the stay of Asian players on its site as comfortable as possible. The company is committed to players enjoying the ultimate in accessibility, quality and convenience - no matter where they are in the world.

ARISTOCRAT

Scaling up cashless gaming

ristocrat Technologies, a subsidiary of Aristocrat Leisure, is stepping up its partnerships to integrate its Oasis 360 casino management system with digital wallets. The company recently announced accords with Everi Holding and Sightline Payments. Aristocrat will integrate Oasis 360 with Everi’s digital CashClub Wallet. Through this partnership, Aristocrat will offer Everi’s flexible, cost-effective, and secure cashless and contactless commerce and payment solution to operators that utilize Aristocrat’s wide array of customer experience solutions for mobile, electronic gaming devices, and table games. In addition, the integration of Aristocrat’s digital wallet services with CashClub Wallet provides guests another option to fund their play while providing a seamless gaming experience. Oasis 360 offers an award-winning portfolio of casino management technology comprised of mobile, slot management, bonusing, digital, table management, loyalty solutions, kiosk, and a

Asia Gaming Briefings | August 2021

media management hub. Oasis 360 is built with an open architecture that allows for dynamic integration with third-party technologies such as CashClub Wallet. With Sightline, the partnership extends Sightline’s Play+ integrated payment solution with Aristocrat’s Oasis 360 cashless wagering account to enable casino operators new capabilities including digital mobile payment and contactless wallet options for their guests. Sightline and Aristocrat initially launched these new capabilities at several Boyd Gaming properties including Indiana, Nevada, Pennsylvania and Ohio with more planned through BoydPay, which enables guests to use their smartphones to seamlessly fund their gaming and pay for amenities throughout the properties. Aristocrat and Sightline plan to work in tandem across North America to leverage these new opportunities for Sightline’s 70+ partners and the more than 400 North American casinos that utilize Aristocrat’s Oasis 360 casino management

system. Additional property launches combining Sightline’s Play+ solution and Aristocrat’s Oasis 360 casino management system are in development. “If casinos want to truly harness the transformative power of cashless gaming, they must integrate digital payments and loyalty rewards into their casino management system,” said Andrew Crowe, senior vice president, business development for Sightline Payments. “This partnership with Aristocrat will enable players across North America to seamlessly access cashless gaming on a scale that the industry has not seen before.”

SUPPLIER SPECIAL REPORT 43 BETCONSTRUCT

Fishing, Dice and Crystal Crush add to Betconstruct line-up

o build a stronger and broader library of betting games, BetConstruct has introduced three new additions to its line of RNG-based prediction games. Fishing, Dice & Crystal Crush stand out with their rich features, such as multiplied odds, provably fairness calculator and engaging storylines. All these advantages make the games highly marketable to players and help operators attract more audiences via attractive and unique visuals. With their user-friendly and smooth UX/UI design and straightforward rules, the

games perfectly target audiences who enjoy quick gameplay and fast payouts. In Fishing, the fisherman throws a bait and catches fish with various odds that multiply the player’s initial bet. Players have 10 chances to try their luck, but they can cash out whenever they want during the round in order to save their winnings. Dice attracts players who enjoy quick rounds of number predictions. Multiple modes are available across the game including range predictions, higher or lower predictions, etc.

Crystal Crush is an RNG hybrid game that includes multiplier gameplay, slot elements and predictions, all designed by BetConstruct to boost player activity on the websites of operators. The right guess of the many-colored crystals leads to win or opens up the bonus round where the chances of winning are higher. Three lucrative games join a gaming portfolio of BetConstruct to acquire and delight players and better support operators’ needs. The game results are licenced by the RNG system, an important fact that guarantees a fair gameplay.

BMM

Bringing experience to the table

MM is the longest-established and most experienced private independent gaming certification lab in the world, providing professional technical and regulatory compliance services to the gaming industry since 1981. BMM is a systems-expert company, which has provided consulting for and tested many of the largest gaming networks and systems over the last 40 years. BMM has been successfully testing and certifying the full scope of Class III, Class II, VLT, AWP, HHR, online, sports-betting, social, parimutuel and lottery products over four decades. BMM authored the first set of independent gaming standards in 1992 and the first set of

online gaming standards in 2001. BMM employs some 500 people in 13 global locations and serves over 460 gaming jurisdictions. BMM’s world headquarters are in Las Vegas (USA) with offices in Moncton (Canada), Lima (Peru), Buenos Aires (Argentina), Barcelona

(Spain), Bologna (Italy), Krakow (Poland), Bucharest (Romania), Midrand (South Africa), Melbourne and Sydney (Australia), Macau (SAR, China) and Singapore. For more information on BMM Testlabs, please visit bmm.com

Asia Gaming Briefings | August 2021

SUPPLIER SPECIAL REPORT 44 BBIN

Up for a Sustainable Future

ounded in 1999, BBIN has dedicated itself to the development and innovation of new technologies and system software. BBIN provides its professional platform integration services throughout Asia, including China, Japan, South Korea, Vietnam, Thailand, Indonesia, Malaysia, the Philippines and more. Currently, the company has successfully provided the market with 14 types of live casino, 40 lottery games, over 100 casino games and more than 50,000 sports betting products per month. Crossing the twenty-year milestone and moving toward the next from 2020, BBIN is demonstrating its ambition for sustainable development and growth. It actively expands itself and branches out to collaborate with world-renowned brands in different fields. This includes world champion car-racing team Theodore Racing/Prema and famous football clubs Dortmund, and Ajax. BBIN has also become a long-term supporter of eSports since 2019, forming

global partnerships with various eSports clubs including MAD Team, and NOVA ESPORTS. Moreover, BBIN foresees the importance of corporate responsibility and founded The Gaming Beat (TGB) charity brand to help raise awareness on different topics. BBIN has brought together the world’s Top 100 DJs to voice their support for charity and worked with Trees for the Future and Water.Org to promote environmental protection. Through these collaborations, BBIN connects with the world beyond Asia, hoping to give back to the society and build a better world for everyone. BBIN welcomes collaboration from all over the world, and provides the advantages of professional resources to partners who aim to map out their business in Asia. BBIN is ready to show the world its capability of bridging the eastern and western iGaming markets. It will continue to communicate its core principle of “growing with partners” and hopes to light up a bright future with its worldwide partners.

DALLMEIER

Speed of detection adds to casino security

ne question that has been asked is whether COVID-19 made security challenges more difficult or easier? Of course, fewer visitors decrease the typical violations and offences. On the other hand, the additional security measures and hygiene plans caused by COVID-19 create additional workload and increase complexity. From our perspective as a manufacturer, the situation has not changed much. More and more customers tell us that they have a much better overview of the casino floor and the pre-context of any incident thanks to the unique overview provided by our 180° and 360° Panomera® W camera series. We have casino customers reporting to us that it now takes an average of only three minutes to find a wanted person instead of the previous twenty minutes – a huge contributor to casino safety and considerably less disruption in case of an incident. Our Casino Automation Technology (CAT) provides casino operators a powerful tool to protect their table games from fraud while maximising profits. CAT uses traditional video cameras and AI-based technologies to recognise playing cards and detect suspicious winning patterns. At the same time, CAT can

Asia Gaming Briefings | August 2021

detect unusual behaviour by dealers and players and can even protect closed tables. Another benefit is the ability for employees from different departments to work together, enabling them to deal with incidents and events efficiently. One difficulty is certainly going to be the staffing situation when the gaming floors are better occupied again in the medium and long

term. So “doing more with less” will be even more important. In addition, cheaters are becoming more sophisticated, taking advantage of technological developments such as spy cams and exchanging digital information in real time. This makes it increasingly difficult for casinos to stay one step ahead of the fraudsters and prevent fraudulent practices.

SUPPLIER SPECIAL REPORT 45 CONTINENT 8

Team up to prevent cyber attacks

he Philippines largest telco neutral data centre operator Beeinfotech PH, has entered into an agreement with global managed hosting, connectivity and security provider, Continent 8 Technologies, to help businesses in the Philippines and across Asia strengthen their security services. The partnership comes at a time where cyber attacks and security risks are at an all-time high, with businesses of all sizes and across all industries requiring effective security measures to combat these threats. Beeinfotech PH will leverage three of Continent 8’s leading cyber security solutions; its scalable DDoS protection, powerful Web Application Firewall (WAF) and market-leading Security Information and Event Management (SIEM) system. These will be offered to major corporations, telcos and service providers in the Philippines and across Asia as three products – BProtect DDoS powered by Continent 8, BProtect WAF powered by Continent 8 and BProtect SIEM powered by Continent 8. The DDoS solution allows organisations to protect their business critical, online environments from volumetric and persistent attacks, the WAF solution defends applications against a wide range of threats, while the SIEM solution is the foundation of a business’s cyber defence strategy, with a fully managed

24/7 SOC monitoring platform. Reynaldo Huergas, President and CEO of Beeinfotech PH, said: “Network security is a technology and support game. Through this agreement, Beeinfotech PH takes charge of the infrastructure, local manpower and coordination while Continent 8 brings in global managed solutions and best practices. “This is a powerful combination that will allow businesses in the Philippines and across Asia to be confident they are doing all they can to mitigate the risk of falling victim to a

security attack.” Peter Williams, Managing Director for Asia Pacific at Continent 8 Technologies, said: “Our decades of experience in protecting the world’s most valuable information has given us vast knowledge on how to best tackle the issue of network IT security. “Our collaboration with Beeinfotech PH enables us to provide businesses with bespoke solutions with local support. With Beeinfotech PH’s telco neutrality, we are able to protect all business across all sectors.”

as 32 Cards and Lucky 7. Ezugi’s games are streamed from a total of nine state-of-the-art studios located around the world, each providing opulent environments with highly trained dealers and modern technologies to deliver a superior live casino experience to operators and their players. Each game has been designed to run seamlessly across desktop and mobile, delivering the most engaging and authentic experience at all times no matter where the player is playing from. Kfir Kugler, CEO of Ezugi, said: “This partnership will strengthen and unite both parties and we are thrilled to be offering our content to operators and players in Italy via a true gaming pioneer and the leading supplier in the market.” “We are confident our localised content will be a great addition to the Microgame portfolio

and will allow its operators to stand out from their rivals and deliver a thrilling, authentic player experience via proven live dealer games.” Marco Castaldo, CEO of Microgame, said: “The constant search for new collaborations and commercial agreements with specialised suppliers and leading international operators allows us to maintain the very high standards that characterise our offer.” “This also allows us to distinguish the Microgame product within the market as the most complete and competitive. It is because of this approach and desire to offer the best solutions to Italian operators that we entered into this partnership with Ezugi.” “The partnership will allow us to add its leading live dealer content to our game portfolio, further establishing ourselves as the number one platform and game provider in Italy.”

EVOLUTION

Expanding Italian footprint

zugi, a live casino specialist that is part of the Evolution Group, has expanded its reach in the Italian market after partnering with platform and content provider, Microgame. Under the deal, Italian operators powered by Microgame will gain access to Ezugi’s full suite of live dealer content which includes more than 20 games across Roulette, Blackjack, Baccarat, Poker and Sic Bo, plus innovative formats such

Asia Gaming Briefings | August 2021

SUPPLIER SPECIAL REPORT 46 FBM

Casting the dice with Banca Francesa

BM Digital Systems recently launched online Banca Francesa in Portugal due to popular demand from players. Banca Francesa has a huge tradition in the Portuguese land-based casinos and FBMDS brought it to the digital universe with a customized gaming experience desired by the local players for a long time. Banca Francesa is a thrilling table game, where the goal is to predict the outcome of three dice rolled by the dealer. This fast and rewarding table game has five bet possibilities and an attractive prize logic. FBMDS made its pioneer Banca Francesa flexible and casino operators have the possibility to change part of the product aesthetics as well as its minimum and maximum bets.

GIESECKE & DEVRIENT

Convego Pearl offers flexible, secure payment solutions

n the past months, customer behavior when it comes to the way we pay, has changed. The main drivers behind are the pandemic with its restrictions to stay contactless, and maturity within payment technology. These two things have created a boom for digital payments in both popularity and the global usage, with many new use cases evolving, which create not only convenient but also secure digital payments.

Asia Gaming Briefings | August 2021

For instance, when looking at casinos, some casinos have already implemented or are considering a digital way for using payments across their gaming floor, their hotels and F&B. For these use cases, Giesecke+Devrient (G+D), as a global leading payment technology company, provides a secure digital payment platform called Convego Pearl. Convego Pearl is already deployed and

used by many renowned retail customers in Asia, and it is extending to the casino market. Convego Pearl offers physical and virtual card issuing and life-cycle management, payment processing and robust loyalty engine. With Convego Pearl, casinos can provide an exceptional experience to players by offering digital payments with a membership card, or with a QR code on mobile phone, to be used on the gaming floor, restaurants, hotel, and shops within a casino resort. It not only provides convenience to players but also increases the security of payment transactions by reducing the risk associated with counterfeit banknotes as well as reducing the cost of cash handling. Furthermore, with Convego Pearl casinos are able to analyse and understand players’ preferences, and can therefore use this intel for increased player loyalty. With a reward system, points and other perks can be incorporated in this digital payment system. Convego Pearl is very flexible and can easily be integrated with - for example - existing casino management systems, payment devices in non-gaming environments and current mobile apps of a casino. A player can choose to top up the wallet with cash at the cage or a counter, or they can top up via their bank account or credit card. Convego Pearl delivers end to end security by following global payments standards, and by providing numerous reports for management as well as for auditing.

SUPPLIER SPECIAL REPORT 47 HABANERO

Content king in player retention

ith lockdowns lifting in countries across the globe, people are enjoying the freedoms they’ve regained. For gamblers, that often means returning to a newly reopened land-based establishment of their choosing. The online casino sector must therefore think hard about how to retain the customers they acquired when such outlets were closed. To that end, content – as always- is king. The most important factor determining your success in retaining land-based and retail players forced online by the lockdown is the quality of your offering. That’s why we’ve continued to equip partners with world-class casino games of the very highest standard. Most recently, we’ve launched Calaveras Explosivas, an electrifying new title taking players down to the town square for an exciting adventure inspired by the popular Mexican national holiday, Dia de Muertos. Featuring mesmerising graphics and a thematic mariachi soundtrack, the game introduces punters to colourfully decorated Calaveras, which cascade down the reels alongside Wilds, Scatters, and other multipliers. Even though we believe that a great game is a great game no matter where you play it, the title’s Latin American roots clearly suit it to players based on that continent. And our newly-acquired accreditation from LOTBA - the regulatory board for the City of Buenos Aires – equips us to introduce the slot to even more of them.

We’ve also wowed the crowds with Marvelous Furlongs, an exhilarating new launch inspired by the wonderful world of horse racing. The title takes players through a season’s worth of races in the build up to the Marvelous Race Day, the most anticipated event in the equestrian calendar. The 5x3 slot title boasts a range of thrilling features, including horse-inspired Wild and Scatter symbols and Free Games bringing

wins of over x50,000 – an enthralling prize for fortunate bettors enjoying a fine day at the races. Each spin brings the customer closer to the Marvelous racing spectacle, where high scores could trigger eye-popping rewards worthy of the Royal Enclosure. So, whether you prefer to enjoy vibrant Latin Street parties, or a fastpaced horse racing experience, Habanero has you covered.

IGT

Teaming up for flexible cashless solutions

nternational Game Technology is fueling its leadership in cashless gaming technologies via a strategic partnership with Marker Trax, makers of an advanced digital casino marker system. This partnership will give IGT ADVANTAGE casino management systems users the option to integrate Marker Trax technology into any variation of an IGT Resort Wallet deployment. The customer experience is the most important thing in this business and IGT shares that philosophy. Working together, we are able to streamline and enhance the customer’s experience as they move across the casino floor,” said Gary Ellis, Marker Trax Founder and CEO. “Working with IGT to expand the market penetration of Marker Trax is an honor. This agreement with IGT reaffirms our company’s

commitment to offering the convenience and safety of Marker Trax to an expanded customer base,” said Charlie Skinner, Marker Trax COO. “In giving our customers the option to add Marker Trax’s specialized technology into their IGT Resort Wallet-powered casino apps, IGT is delivering an even more versatile cashless payments ecosystem,” said Ryan Reddy, IGT Senior Vice PresidentGlobal Product Management for VLT, Systems and Payments. “With the demand for cashless gaming solutions at an all-time high, technology integrations like what we’ve agreed to with Marker Trax will help our customers offer multiple cashless technologies in an intuitive, convenient and safe manner.” When IGT ADVANTAGE, Resort Wallet and Marker Trax are concurrently deployed,

patrons have the option to create safe and secure casino markers on their personal mobile device and to fund an IGT-enabled Cashless Wagering Account. Players can apply for a Marker Trax account either online or via a mobile app; qualified players are approved in less than five minutes. This collaboration enables both IGT and Marker Trax to maximize the opportunities of the fast-growing cashless segment while enhancing player convenience, record keeping, security, casino liquidity and more.

Asia Gaming Briefings | August 2021

SUPPLIER SPECIAL REPORT 48 INTERBLOCK

Interblock expands Philippines footprint

nterblock said it has received orders for 123 of its play stations in the Philippines from three casinos, including the soon to open Nustar Resort & Casino on Cebu. The company expects to fulfil the orders, deliver and install over the next few months at each respective property for their openings. “We are humbled and privileged to be able to receive three orders from Hann Resort Casino, Royce Hotel and Casino in the Clark area and Nustar Resort and Casino from Cebu in total of 123 play stations”, commented Michael Hu, President Asia for Interblock. “We wish the developments at each of the respective properties the best of luck and a

speedy adaptation to the new normal.” Interblock said Clark’s first integrated resort, Hann Resort Casino, previously known as Widus Hotel and Casino, is to place its Live Table Roulette, fully automated Roulette and Twin Live table Baccarat stadium to complement their live tables, slots and ETG games. One of Central Luzon’s top entertainment destinations, Royce Hotel and Casino, is to set up a Stadium with Live Table Roulette, Live Table Sicbo and two Twin Live Table Baccarat as well as two sets of Diamond Megastar 8 with the option to run up to six virtual games during low demands. While the new Nustar Resort & Casino, which

will be a three tower hotel with a gaming floor of approximately 21,000 square meters (226,042 sq feet) is to place three sets of Diamond Megastar.

JADE ENTERTAINMENT

Pioneering remote gaming in the Philippines

ade Entertainment and Gaming Technologies (JADE) takes sports betting to new heights. With the recent development of remote gaming here in the Philippines, JADE, will be one of the few platform service providers accredited by the Philippine Amusement and Gaming Corporation (PAGCOR) to offer a remote gaming experience to local players. JADE is a company established in the

Philippines in 2009. A business provider and ultimate resource of gaming technologies covering mainly the Asia Pacific region, JADE produces bespoke solutions, built on a bedrock of betting and gaming knowledge, accrued over many years. This knowledge is mixed with cutting-edge technology to deliver best-in-breed products to its partners in the gaming industry. JADE is a service provider of sports betting systems accredited by PAGCOR. JADE currently operates the Sportsbet offering at the Okada Manila casino resort in the Philippines. JADE is also launching its remote gaming technology in early August. In a recent development on Philippine gaming, PAGCOR has allowed remote sports betting to local residents. Domestic offsite gaming

operations adopt a land-based, or brick-andmortar model of operations, wherein players come and visit a gaming site to play or bet. The remote gaming platform is an added gaming facility to PAGCOR’s land-based gaming site operators/licensees wherein players now have the option of either visiting a physical betting shop or placing their bets via an online remote gaming platform. Pursuant to the new regulation, JADE has applied to PAGCOR to be one of the few service providers to be allowed to develop and maintain such an online remote gaming platform. With the approval of PAGCOR, JADE is now in its final stages of complying with the regulation requirements and will soon launch Jade Sportsbet remote sports betting to its betting shop partners.

JCM

Driving efficiencies through smart data

he FUZION system from JCM Global (JCM) continues to evolve and now has an even greater and more positive impact on real-time peripheral management, boosting the efficiency, security, and profitability of casino operations. FUZION is a network connection to JCM’s iVIZION bill validator and to JCM’s GEN5 printer, giving casinos real-time connection and real-time data from both devices. Its API (application program interface) allows third party applications to securely interface with FUZION technology to bring advanced analytics, marketing, and security capabilities to your gaming floor. With FUZION, casinos can proactively

Asia Gaming Briefings | August 2021

manage casino floor operations with features like predictive emergency drops and printer paper fills, automated firmware upgrades, drop and count room management, AML alerts, enhanced security capabilities with transaction image captures, and real-time performance monitoring of all the peripheral devices on the casino floor. FUZION monitors the contents of each drop box on the casino floor preventing machine downtime. This allows the drop team to pinpoint which cash boxes to collect. FUZION tracks cash box capacity note by note, eliminating wasted time dropping empty or near-empty cash boxes. This process also keeps the most popular

games active during busy times and allows the slot team to focus on tasks other than executing emergency drops. Based on direct customer feedback, most notably from the Hard Rock Hotel & Casino Sacramento where JCM completed its first floor-wide installation and launch of FUZION, JCM engineers have updated FUZION with easier ways to analyze and use data to increase operational efficiencies for a variety of casino departments.

SUPPLIER SPECIAL REPORT 49 JUMBO

Fishing for fun with Ocean Phoenix

lthough the gambling industry is facing enormous challenges due to the pandemic, Jumbo technology has not stopped and has just launched a new fishing game, “Ocean Phoenix”. Fishing games have always been a favourite for all ages. Players can get started easily and enjoy the multiplayer fun thanks to the intuitive interface. Evidently, user-friendly design and entertainment are key reasons why Jumbo technology’s ARK-65 Fishing machine wins wide praise across the world. Jumbo’s ARK-65 GLI six-seater multiplayer fishing game, Ocean Phoenix, features the

fantastic four mythical creatures such as the Mighty Phoenix, the Elegant Mermaid, the Ancient Crocodile, the Flawless Octopus, and three powerful weapons. When the players successfully capture the Phoenix, players will be pampered with a dazzling visual sensation as the phoenix soars high into the universe by leveraging special effects. The Elegant Mermaid is the ocean goddess of love. Upon successful capture, the elegant Mermaid will play the harp and bubble up all the species on the field and players have a chance to award up to 1200 times winning points.

The Ancient Crocodile lives in mysterious Egypt. The Ancient Crocodile will bite the fireball back and forth in the center of the field to earn extra points for players after a successful capture. There is the Flawless Octopus in the Caribbean Sea. A lucky wheel will appear, giving the chance to win up to 800 times points as players succeed in capturing the Flawless Octopus. On top of that, special weapons such as laser cannons, shotguns and gun drills will likely pop up during the game. Players will gain the upgraded free bullets when hit them. The background music of Ocean Phoenix is unique in that it has adopted a “symphony” to create splendid auditory effects which differentiates it from other fishing games on the market that still use a lot of electronic music. Jumbo technology learned that symphony is highly appreciated by players of all ages in various media based on player feedback and the symphony is also frequently seen in AAA games nowadays. Due to the richness of sound and the malleability of the emotions, the symphony can be performed in a wide range of scenes, from delicate layouts to epic scenes. Players will experience the lively and joyful sound effects as if they are in an amusement park, as well as the epic music during the battles with mythical creatures. “We believe Ocean Phoenix will provide the most novel game theme and the ultimate entertainment experience to players”, a Jumbo representative said.

LT GAME

Pandemic speeds innovation in technology

aradise Entertainment, operating under the LT Game brand, strives for excellence in the gaming equipment industry using top-notch and advanced technology to develop table game automation and innovative gaming products that are primarily catered for the mass market. “Technology and innovation, sped by the pandemic, have continued and will continue to

cause a paradigm shift in the gaming industry and enhance casino operational efficiency and meet player specific needs”, said. Jay Chun, Chairman and Managing Director of Paradise Entertainment. To illustrate, in response to the mounting awareness of health issues, the distinctive features of its innovative flagship products, the live multi game machines, performed exceptionally in giving gaming patrons a more private, spacious and, more importantly, safe environment aligning with the specific safety measures and requirements imposed by the relevant authority to maintain a safe distance between gaming tables, and between gaming machines. The outperformance of the LMG machines has highlighted the importance to take the prevailing health issues into account when designing and developing gaming products as

well as on casino management strategy, where technology can facilitate this goal. On the other hand, Paradise Entertainment has also been investing increasingly on research and development on AI and other related products with a view to fulfilling customers’ needs with professional solutions on high-tech products in areas of education, sports and living, etc in which the importance of facilitating and promoting public health awareness is placed. Paradise Entertainment will continue to forge ahead in areas of cutting-edge technologies and always uphold the spirit of innovation to create high-tech products which meet the requirements of the highest level of demanding technical standards, while at the same time exercising prudent control in the midst of the present business environment.

Asia Gaming Briefings | August 2021

SUPPLIER SPECIAL REPORT 50 PINNACLE

Major tournament return sees Handicap markets perform impressively

ans and bettors alike rejoiced in June with the return of some sporting normality as the delayed Euro 2020 and relocated Copa America tournaments finally kicked off. Supporters gathered at stadiums in the tens of thousands to return some of the atmosphere that makes soccer loved the world around and the leading betting pastime in this new normal we now live in. Pinnacle Solution has analysed the data over the past couple of months to see how the betting trends are evolving at these major tournaments. Top-level, it’s clear that the Euros engaged bigger bettors more often, with the mean pre-match bet size 17 percent higher than on the top-tier domestic season, with live average bets also 14 percent higher. Match day betting dominated when it came to the timing of bet placements too, with the busiest periods coming at the business end of the group stages, with meaningful games coming thick and fast. One major discrepancy between domestic and international tournaments appears to be around the favoured market types. It appears that customers looked to back a team or result,

rather than just wishing for goal-mouth action at the Euros, with Handicap betting accounting for almost two-thirds of pre-match bet value, in comparison to just over a third across the English, Spanish, Italian, and German top leagues, while the Money Line share also more than doubled. Some of these trends are likely to tie in

with the specific nature of high stakes, partisan international competition but some may continue into the new season, and our partners can be sure that Pinnacle Solution’s impressive hold performance from both pre-match and live betting action at the Euros will continue into the new season.

PRAGMATIC PLAY

Delivering on content promises

ontent is king and Pragmatic Play is pressing on with its ambition to produce up to five new slot titles a month, while also delivering Live Casino and Bingo games as part of its multi-product portfolio, available through one single API. A recent offering embraced Scandinavian adventures with new slot title, Book of Vikings. Featuring comic book-style visuals and a classical instrumental soundtrack, the highly volatile slot is riddled with symbols of Norse mythology, and includes a mystery Free Spins feature where landing a special expanding symbol will boost chances of big wins. There is also a Scatter symbol that takes the shape of a Magic Book, which only needs to appear three times in a payline to trigger the Free Spins feature. Here, a regular symbol is randomly selected to become the expanding Mystery Symbol before the player is allowed to use their 10 free spins, and every time it appears, the Mystery symbol will expand to fill the entire reel. A huge number of winning combinations can be created with these expanding Mystery

Asia Gaming Briefings | August 2021

symbols, and players who wish to bypass the base game for the Free Spins feature can do so with the Bonus Buy element where available. Book of Vikings joins Empty the Bank, 5 Lions Megaways and Lucky Lightning, which reside amongst 200+ HTML5 titles in the provider’s award-winning games portfolio. Yossi Barzely, Chief Business Development

Officer at Pragmatic Play, said: “Our previous Norse-themed release was dominated by an all-female warrior cast, but this time we see Viking royalty grace the helm of the ship. “Book of Vikings utilizes a gorgeous aesthetic and combines it with simplified gameplay to provide a winning experience for players of all ages and demographics.”

SUPPLIER SPECIAL REPORT 51 PLAY N GO

Motivated to bring players MORE

et’s face it. It’s been an odd couple of years, and the need for entertainment is more important than ever. That’s where we come in. In our mission to become the best gaming entertainment supplier there is, delivering the highest quality of products and services and

innovating industry-leading features are at the forefront of everything we do. This month sees a new character added to the Play’n GO repertoire. The charismatic Yeti. Hotel Yeti-Way takes the mythical Himalayan Yeti out of his frozen environment

and sees him holidaying on a tropical island – we’re a bit jealous. This new slot game gives players more ways to win with every spin. Dynamic Payways mechanics have been around for a while now. So, what do we mean by more ways to win? With every Free Spin on Hotel Yeti-Way, one or more of the reels are selected to have a Multiplier, doubling the number of payways on those reels, and in turn, more ways to win – 262,144 to be exact – heightening the thrill further in an already action-packed game. It can be easy to get swept up in the mechanics of the games, but the visuals are also key. Take when developing Hotel Yeti-Way, for instance, we wanted impressive visuals to complement this bold character. A bright colour palette has been used to radiate a mood-boosting summer feel. Our creative design team (we’re biased, we know) have paid attention to every detail; backgrounds change with the Yeti to match the theme of his attire, one minute he’s scuba diving, the next bungee jumping. Pushing the gaming experience further to immerse players and keep them entertained is what we strive for, and that’s just one of the reasons we’re the best gaming entertainment supplier there is.

RGB

Developing omni-channel solutions

GB prides itself in our successful track record in the industry, where we continually evolve to deliver innovative and high-quality gaming solutions. We recognize the fact that to meet the ever increasing demands of the gaming market, especially now in this new era of digital convergence, gaming solution providers such as us must remain agile and respond to the ever-changing situation. With this firm belief in mind, we have collaborated with top-class digital gaming solution providers to offer best-of-breed solutions which converge land-based gaming operations with engaging digital experience, thus allowing casino operators to provide a truly omni-channel gaming experience to their patrons. Together with our partners, we offer a fully secured, all-in-one open gaming platform with electronic games, live streaming table games and many other online gaming offerings.

This open gaming platform also provides for a simple integration with the operators’ casino management system (CMS) and the entire solution comes as a ‘Casino-as-a-Service’ total package. We also offer a truly unique online gaming offering which allows players to play real physical EGMs remotely through the use of streamed video, thus increasing machine utilization and

profitability. This is not a reproduction of landbased games but an actual real time game play on an actual machine that is equipped with a camera, played via an engaging user interface. These collaborations expand RGB’s wellestablished, value-added solution portfolio, strengthening our focus on offering products that enhance customer experience and operational efficiencies.

Asia Gaming Briefings | August 2021

SUPPLIER SPECIAL REPORT 52 SCIENTIFIC GAMES

Quartz standalone ups the game for the post-Covid world

cientific Games explains how its latest cutting-edge table game technology, Quartz Standalone, will provide a more dynamic experience for players and enable operators to run their business more efficiently and safely in this post-COVID-19 world. Quartz Standalone is the latest Electronic Table Game (ETG) offering from Scientific Games.It has the ability to run a single game on its own, within its own player terminal. The product will launch with Dragon Tail Baccarat, a new baccarat game that provides a unique player experience like never before. Dragon Tail Baccarat includes exciting features such as the Free Hand feature that enables players to find “Hot Shoes” or trends, and an immediate results or “Bang Up” feature on the player touchscreen. Something that we are very excited about with Dragon Tail Baccarat is the 3D animation of the card squeeze feature. This feature will give players an immersive, real-life baccarat gameplay experience. Players control how they want to squeeze

their cards. They can swipe from the corner, the side of the card, or by using the “rotate” or “reveal” buttons. There is also a “play” button if they want the machine to reveal the animation as they watch. Players can further enhance their experience with the available side bets, including Super 6, Lucky 6, Fortune 7 Baccarat™ and Dragon Bonus. Operators can configure a selectable timer option, in addition to scheduled betting, to optimize peak periods. Dragon Tail Baccarat includes game history, statistics, and trend animations that display an eye-catching dragon that changes color as the trend continues and music intensifies. Our Quartz player terminals have been rolling out at a fast pace in other markets because they allow casinos to increase table game play in a more cost effective and safe way for players. Casinos and gaming properties can easily implement social distancing between Quartz terminals, and the smooth, flat surface of the player screen allows for easy cleaning and sanitization. Additionally, the removal of loose cash, chips, cards and other

points of contact with regular gaming tables decreases areas for contamination. Dragon Tail Baccarat on the Quartz Standalone is available at the Scientific Games Asia showroom for live viewing or virtual if you are not in Macau.

SIMPLEPLAY

“Mother of Dragons” gives players a wild ride

“M

other of Dragons” is a 5-reel slot. The game comes with 3 different scenes, each with its own reel pattern and ways to win, as well as its own Wild features. Scene 1 features a 3-4-4-4-3-reel pattern, giving 576 ways to win. Scene 2 features a 4-3-3-3-4-reel

Asia Gaming Briefings | August 2021

pattern, giving 432 ways to win. Scene 3 features a 3-3-4-3-3-reel pattern, giving 324 ways to win. In this game, the princess herself is the Wild Symbol. She can rally the dragons for greater winning chances! The dragon eggs are the Scatter Symbol. 3, 4 or 5 Scatters award 8,

15 or 20 Free Spins. Different Wilds (Extra Wild, Extra Reel Wild, and Bomb Wild) are featured in different scenes. “Mother of Dragons” contains a Free Game Feature, where the Reel Extend Feature adds an extra row above the original structures of each scene. Scene 1 becomes 4-5-5-5-4-reel, giving 2,000 ways to win. Scene 2 becomes 5-4-4-4-5-reel, giving 1,600 ways to win. Scene 3 becomes 4-4-5-4-4-reel, giving 1,280 ways to win. In “Mother of Dragons”, different Wilds are featured in different scenes, and are available in both Base Game and Free Game. In Scene 1, the game will trigger Extra Reel Wild, where one of the reels among Reels 2 to 4 may be filled with Wild Symbols in all positions. During Free Spins, up to 2 reels will be filled. Bomb Wild is featured in Scene 2. Once triggered, Bomb Wild Symbols will appear on one of the positions on Reels 2 to 4 randomly. All surrounding positions on these 3 reels will become Wild Symbols, increasing the chance of winning. Extra Wild is triggered in Scene 3. A maximum of 7 Wild Symbols may be applied randomly on any of the positions on Reels 2 to 4.

SUPPLIER SPECIAL REPORT 53 ULTRAPLAY

Esports for all: Best practice for product development

ne of the most important considerations for eSports fans is authenticity. This means operators looking to reach that fan base will need to tailor their betting products around their preferences, whether that’s data-driven content, professional players, or influencers in the sector. That’s what was mainly discussed

during the ICE365 Think Tank Series dedicated to eSports, which is sponsored by UltraPlay. UltraPlay’s CEO Mario Ovcharov took part in Esports for all: Best practice for product development Think Tank and shared his insights and opinion about the topic. Based on his years of experience in the industry and the eSports betting sector in particular, Ovcharov shared what makes a successful gambling product that targets the eSports fans base. As a sports betting provider for over 10 years, UltraPlay started offering eSports in 2014 and was among the very few that actually had it back then. Actually, the company was the first to offer live betting on eSports. Since then UltraPlay has enhanced the product and the UX a lot in order to answer

the new generation of bettors’ requirements. “It’s very important to understand the eSports itself, not only the betting side of it”, says Mario Ovcharov. Esports has to be covered as any other sport. Multiple different markets, game coverage, live streaming should be provided. What’s one thing that many eSports product developers get wrong? “For many years the most known betting website was very basic. After that when operators tried to make something very fancy, colorful, with lots of images, it wasn’t working.”, he added. In Ovcharov’s opinion, simplicity in building an eSports product is key and everyone starting in this business needs to understand that and act upon it.

WDTS

Walker Digital goes live at Resorts World Las Vegas

alker Digital Table System’s PJM3.0 RFID solutions power gaming chips, table games, and casino cage locations at the Las Vegas Strip’s newest resort, Genting’s Resorts World Las Vegas. The property also features the first North American implementation for WDTS’s Perfect Pay Baccarat as well as Baccarat Insurance and Lucky 6, two popular baccarat side bets. Walker Digital Table Systems continues its long and successful partnership with Genting as they bring the Strip’s first complete RFID smart tables to Resorts World Las Vegas. Walker Digital CEO Stephen Moore said, “We are honored to be a part of the newest resort on the Strip. Genting pioneered the most advanced casino floor in the world in Malaysia, and today they remain at the forefront of gaming innovation with the most technologically sophisticated integrated resort in North America.” A key component of Resorts World Las Vegas’s next-generation gaming experience is the selection of PJM3.0 RFID, the industry-standard worldwide for fast, reliable and secure casino solutions. The comprehensive implementation includes WDTS-supplied components for RFID gaming chips, chip trays, bet tracking antennas, dealer antennas and casino cage readers. Resorts World Las Vegas also features WDTS’s Perfect Pay Baccarat system, the only smart table that tracks wagers, game outcomes, payouts and perfect player ratings in real-time while delivering a live table game experience.

Casinos using Perfect Pay experience a dramatic increase in game security and dealer accuracy while minimizing losses from human error, collusion and theft. Resorts World Las Vegas is also the first to introduce two new baccarat side bets to Las Vegas that are popular today with players across Asia. The first is Baccarat Insurance, a new play option after the first four or five cards have been offered to players who are ahead at

that point in the game to “insure” or hedge their advantaged hand. This feature raises baccarat’s low house edge while increasing both the volume of wagers on the table and player excitement. The Lucky 6 side bet pays either 12 to 1 or 20 to 1 on a winning banker total of six. “Resorts World was our first customer in Asia and so it is fitting that they are our first customer in North America.” said Neil Crossan, Chief Commercial Officer at Walker Digital.

Asia Gaming Briefings | August 2021

INDUSTRY OPINION 54

Gary Bowerman*

Covid sparks innovation in domestic tourism Covid has triggered a major tourism reset across Asia, with governments forced to pivot to the domestic market, which prior to the pandemic received little support in terms of finance and marketing.

or example, Malaysia’s 44-page National Tourism Policy 2020-2030 (published in December 2020 by the Minister for Tourism Arts & Culture) doesn’t make a single reference to domestic tourism. This meant that most countries were seriously under-prepared when COVID-19 forced the shutdown of international travel. Through COVID-19 necessity, with international borders closed, official attitudes have shifted over the past 16 months. Governments and tourism boards have implored residents to travel and spend more domestically almost as a civic duty to help keep the tourism industry afloat and support the national economy. Over recent months, we have seen significant innovation in domestic travel services by private sector tourism players, particularly in the areas of health and wellness travel, soft adventure, F&B, trekking, photography and mountain biking tours. In Vietnam, Cambodia and Laos, we have seen strong growth in hiking, camping, nature trekking, mountain biking, road and hill cycling, ziplining and river sports.

Asia Gaming Briefings | August 2021

The visible results of this eagerness for new outdoor experiences has been available for everyone to see on social media platforms – but it remains uncertain whether tourism boards will tap into this huge resource of new and exciting user-generated destination content to further develop the domestic sector. As we are seeing from the reopening proposals in Phuket, Thailand, governments and tourism boards still view inbound tourism as their overriding priority. In advance of welcoming back foreign visitors, significant marketing spend is being invested into video content promotions exclusively for international markets. In some ways, this simply reflects economic reality. Over the past 16 months, finance ministers have noted that domestic tourism simply cannot fill the void in terms of trip numbers and expenditure – and, therefore, is unlikely to attract much-needed foreign investment to support post-pandemic economic recovery. Inbound tourism brings more than just national cachet to tourism board target setters, it is a viable route to foreign exchange and capital investment.

INDUSTRY OPINION 55

China, of course, is an entirely different story, where domestic tourism infrastructure – particularly high-speed railways, airports, airline fleets and hotels, as well as car rental, rural tourism – have been heavily invested and promoted. The country has reaped the benefits of this over recent months. Strong and supported, its domestic tourism sector will continue to thrive once international outbound travel is permitted once again. Much of the expansion in domestic travel has been supported by government financial incentives, promotional voucher programmes and heavy discounting. The fact remains that in many countries of Southeast Asia for example, pricing for international tourists in a country is beyond the reach of domestic tourists. Throughout much of Southeast Asia, the pricing and expenditure differentials between domestic and inbound tourists remains an impossible circle to square. Heavy discounting was also noticeable for luxury resorts in Malaysian holiday destinations like Langkawi, while city hotels and resorts instead offered extra add-ons, like free meals, spa treatments and discount extra night stays rather than heavily reducing their core rate. Singapore is an interesting case study, given its small size and having only one major airport there was no domestic tourism sector to rely on as a safety net. The government launched the SingaporeRediscovers voucher scheme to encourage citizens to spend more at tourism attractions, and hotels offered a range of staycation

packages – but the most successful innovation has been the Cruises to Nowhere initiative. Operated by two cruise companies, these 2, 3 and 4-night cruises have no port calls, but ramped up the range of entertainment, activities and dining on board, and proved hugely popular. Similarly, the Duty Free Flights to Nowhere, which take off and land at the same airport in South Korea, cross temporarily into Japanese airspace. This enables passengers to purchase duty free items at the airport before boarding as if they are taking an international flight, and resulted in significant per-passenger spend. It is still early to predict the recovery of international travel in the region, but it seems likely that domestic travel will remain an important part of the mix for some considerable time. Reasons for this include the extra ancillary costs and inconvenience of overseas travel, fear among many people about the health risk of travelling, different speeds of vaccination rollout, as well as localised economic factors – many people have lost their jobs or are on reduced salaries. A major issue that has not altered during the pandemic is that in most countries of Asia, domestic tourism is still primarily focused on public holidays, school holidays and weekends. So how do you incentivise people to travel domestically beyond public holidays – and thereby create much-needed year-round demand and bookings. This will be especially difficult if the promotional focus shifts back towards inbound tourism.

There has been talk of staggering school holidays in some countries to prolong peak tourism periods – but that would be controversial and a huge logistical issue, especially in larger population countries. A secondary issue is that heavy discounting of hotel and resort rates and add-on tour & travel activities has been necessary to attract large volumes of domestic tourists during the pandemic, but that won’t be possible once international visitors return. Personally, I think tourism boards should think both imaginatively and long-term, and develop the learnings they have accumulated about the shifting aspirations, expectations and destination choices of domestic travellers during the pandemic. They should encourage and provide incentives, such as tax breaks and tax holidays, for investors that focus on domestic travel and tourism services in secondary and tertiary areas and untapped natural locations of a country – away from the tourism crowds. These services would cater to the needs of domestic travellers, but may over time drive visits by adventurous international travellers thereby graduating the expansion in a more organic way. *Gary Bowerman is the director of Check-in Asia, a tourism-focused content, marketing and trends research company with bases in Hong Kong, Shanghai and Kuala Lumpur – and co-host of The South East Asia Travel Show podcast.

Asia Gaming Briefings | August 2021

CALENDAR OF EVENTS 56

SEPTEMBER IAGR BOSTON CONFERENCE 12-17 September 2021 Boston Marriott Copley Place https://www.iagr2021.com/ SIGMA AMERICAS VIRTUAL EXPO 13-14 September 2021 Virtual https://www.sigma.com.mt/en/events/americas

GLOBAL GAMING EXPO 4-7 October 2021 Sands Expo, Las Vegas https://www.globalgamingexpo.com/ SBC SUMMIT CIS 13-14 October 2021 Parkovy Kyiv International Convention Center, Ukraine https://sbcevents.com/sbc-summit-cis/

NOVEMBER

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Gaming Briefings | August 2021

LAST WORD 58

Sharon Singleton

Managing Editor, AGB

Should Beijing’s economic rampage concern Macau? Melco Resorts & Entertainment Chairman and CEO Lawrence Ho says he’s not expecting any nasty surprises from the upcoming concession renewals in Macau, although stock market investors are not so sure.

Either way, the point here is that at present the Mainland eijing’s latest regulatory crackdowns have spooked the markets and raised questions as government doesn’t seem to be concerned about the impact to whether anything is sacred. The mantra of of its actions on foreign investment, or indeed its own “too big to fail” is certainly not one chanted by economy. While for decades capitalism has appeared to have taken the upperhand, the Communist characteristics the Chinese government. After going after the country’s tech giants and seem to be reasserting themselves with a vengeance. You might also argue that Hong Kong, Asia’s premier crushing the $35 billion initial public offering of Jack Ma-backed Ant Group in November, the government financial centre, has been sacrificed to satisfy Chinese has now focused its attention on sectors such as private politics. The one-country-two-systems model under education and food delivery. Ma himself has been barely which the U.K. handed the territory back to China has effectively been jettisoned with the introduction seen in public since. According to Bloomberg data, these government of a new national security law last year. Smart money has been moving capital out of Hong actions have wiped more than $1 trillion off the value of Kong for years to alternatives such China’s tech and education stocks as Singapore, where private banking since February this year and that’s for the wealthy is booming. There despite the fact that developing is no doubt that the government’s a self-sufficient, world-leading Beijing says actions have inflicted a severe technology industry has been one wound to the special administrative of the central planks of the economy its actions are region’s international reputation for many years. designed to help as a place to do business and it Since former leader Deng remains to be seen whether it Xiaoping travelled to southern decrease the can recover. China in 1992 and proclaimed to inequalities in This should be a concern for get rich is glorious, “Capitalism Macau. Although its residents have with Chinese characteristics” has society. not taken to the streets demanding powered the Mainland to become democracy as its neighbours did in the world’s second-largest economy. Hong Kong, its economy is built The country has 626 billionaires on gambling, which is another as of this year, second only to the U.S., according to Forbes. More than 800 million have sector firmly in Beijing’s crosshairs. So far, most observers have opined that Macau will been lifted out of poverty and about 1.2 billion of its population are likely to be considered middle class by be exempt from the cross border gambling crackdown 2027, or a quarter of the world’s total, U.S. think-tank that the government has been relentlessly pursuing and with some success. the Brookings Institution forecasts. Lawrence Ho says that with 80 percent of Macau’s Despite all this the wealth gap is still rising and the average disposable per capita income in 2020 was government revenue coming from the gaming industry, which is also the largest employer, the casinos are too just $4,961. Beijing says its actions are designed to help decrease important to the economy to be thrown under a bus. In fact, analysts still believe the long-term future the inequalities in society. Although it appears to be doing so with all the economic subtlety of a sledgehammer. in Macau is rosy, with Bernstein predicting that gross Next year, current President Xi Jinping will face a gambling revenue will be a whopping 25 percent above twice-a-decade leadership reshuffle heightening the pre-pandemic levels by 2025. However, it will be a nail biting few years for pressure to tackle the issue. Outside observers see the actions more as a government international stock investors until the overhang from the concession process is cleared. attempt to ensure nothing falls outside of its control.

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Asia Gaming Briefings | August 2021

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Asia Gaming Briefings | August 2021

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