AGBriefings October 2021 Edition by Asia Gaming Brief

JURISDICTION UPDATES October 2021 Edition

In focus pg.26

Covid as a catalyst for change

PHILIPPINES

A NUSTAR over Cebu pg.16

VIETNAM

Phu Quoc readies for reopen pg.18

MACAU

Calls for regulatory clarity pg.10

RUSSIA

Primorye IR investment heats up pg.40

SUPPLIER SPECIAL REPORT pg.42

TREAT YOUR SPORTSBOOK TO THE BEST IN THE BUSINESS For more information, please visit mts.betradar.com

Asia Gaming Briefings | October 2021

The most flexible and advanced sportsbook management service in the industry

MESSAGE 3

It’s on with the show!!

global pandemic that brought the gaming

The second phase will be rolled out from December 2022.

industry to its knees, closed down international

NUSTAR will be Cebu’s first upscale resort, although others

borders, grounded air travel and crippled

are planned, including PH Resorts’ Emerald Bay Resort.

economies is bound to spark some changes. In

On the country’s online front, PAGCOR is pushing back

fact some people note that it’s often events such as this that

against accusations that it has failed to collect enough

are the catalyst for real innovation. In our Focus section this

tax from its offshore gambling operators at a time when

month, we take a look at some things that will be different

the government is seeking to optimize revenue from the

once the industry fully recovers.

gambling industry. As it stands, the rising cost of doing

We start by looking at the traditional casino floor layout.

business and issues with immigration permits have

The days of long banks of slot machines have gone due to

triggered an outflow of POGO licensees.

social distancing requirements that require every other

Meanwhile Vietnam is taking the first steps to reopening its

unit to be turned off.

tourism industry, allowing international travel to the island

The rules have required casino floor managers to be more

of Phu Quoc from November. The region is home to the

creative and to listen to what the customer wants and

Corona Resort & Casino, which is the only one in the country

how the customer wants to play. People are social, but are

where locals are allowed to gamble and while the resort

more wary than before of people they don’t know and slot

has been open since August 1, it has been operating under

machine set up needs to reflect this change. Those that have

capacity restrictions.

listened have found the changes are paying off in terms of

In our Supplier Special Report you’ll hear from many

more revenue from fewer machines.

of the companies exhibiting at G2E. Las Vegas will

We also look at how Covid has driven the adoption of

welcome one of the world’s largest gatherings of industry

technologies to improve the customer journey. Customers

executives this month with the return of the event.

want frictionless play and the casino of the future will need

Manufacturers, suppliers and service providers outline

to respond if they are to get them to come back through

their new product lineups that will be displayed for review

the doors. This is likely to involve the introduction of more

and fill us in on what they have been doing in the run-up

smart tables and table game systems, as well as no chip, or

to the return of live events.

Rosalind Wade

Luis Pereira

virtual chip play. Also in these pages you’ll find the most relevant updates

Happy reading, and stay safe!

across Asia gaming jurisdictions. Starting off with Macau, investors and operators are seeking further clarity from

On behalf of Asia Gaming Brief

the government over draft proposals that seek to increase

Rosalind Wade & Luis Pereira

supervision over the gaming industry. In the absence

CO-FOUNDERS

of clarity, the day after publication, panic selling wiped almost $20 billion off the value of shares in the six

Connect with us:

gaming operators. In the Philippines, NUSTAR Resort & Casino is on track to

@agbrief

open in March next year, featuring 101 tables and 800 slots

Asia Gaming Brief

and is already attracting interest from junket operators.

www.agbrief.com

OCTOBER 2021 EDITION SERIES II • ISSUE XIX

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

CO-FOUNDERS Rosalind Wade, Luis Pereira MANAGING EDITOR Sharon Singleton ASIA EDITOR Felix Ng DESIGN Liane Honda PHOTOGRAPHY Agencies PRINTING Hop Sze, Hong Kong

DISCLAMER All rights reserved. No part of this publication may be reproduced or transmitted in any shape or form, or by any means, or stored in any retrieval system of any nature, without prior express permission. The publishers accept no responsibility for loss or damage to any materials submitted for publication. The views expressed within are not necessarily subscribed by the publishers. For more info, please visit our website www.agbrief.com.

AGBRIEF PARTNER EVENTS

› ICE Totally Gaming › ASEAN Gaming Summit › Japan Gaming Congress › G2E Asia › Russian Gaming Week › iGB!Live › World Gaming Executive Summit › Australasian Gaming Expo › G2E Las Vegas › European iGaming Congress › IAGR Annual Conference › MGS Entertainment Show › SiGMA

Asia Gaming Briefings | October 2021

CONTENTS 4

GREATER CHINA

SOUTH EAST ASIA

INDOCHINA

MACAU - LAW SHORT ON DETAIL

PHILIPPINES

VIETNAM

MACAU - STOCKS SLUMP

NUSTAR

CAMBODIA

TIM MCNALLY

NORTH ASIA KOREA

JAPAN

RUSSIA

SPECIAL FOCUS

Asia Gaming Briefings | October 2021

SUPPLIER SPECIAL REPORT

LAST WORD

58 54

introduces

THE WINNING FORMULA

STAND 4410

UK I USA I FRANCE I GERMANY I CYPRUS I MALTA I URUGUAY I MEXICO I UKRAINE I SOUTH AFRICA I LATVIA TAIWAN I PHILIPPINES I PERU I ARMENIA BetConstruct is licensed by the UK Gambling Commission for the provision of gambling software under licence number 040767-R-320911-007

www.betconstruct.com

Asia Gaming Briefings | October 2021

GREATER CHINA

MACAU

Investors/operators anxious for detail on Macau gaming laws Investors and operators are seeking further clarity from the Macau government over draft proposals that seek to increase supervision over the gaming industry.

Asia Gaming Briefings | October 2021

GREATER CHINA

n September, the administration published operating as sub-concessions of the other three. The government didn’t explicitly state its long-awaited amendments to Macau’s gaming law. The document puts forward how many concessions will be allowed in nine key points where changes are likely, the retender, but did say that one of its key but provides very little in detail as to what the considerations will be ensuring an appropriate scale for the industry. suggestions will mean in practice. Under China’s prodding, Macau has been In the absence of clarity, investors fled for the exits. The day after publication, panic seeking to diversify its economy, but it still selling wiped almost $20 billion off the value gets about 80 percent of its revenue from the six operators. Therefore most observers of shares in Macau’s six gaming operators. Investors feared that the proposals believe that it will not reduce the number of represent efforts by China to gain tighter licenses it hands out. However, this is by no means certain and control over gaming in Macau, which may face the same kind of draconian restrictions some have argued that the wording of the that have been imposed on other industries government leaves room for interpretation that the number could be reduced. in China in recent months. Most of the other proposals were expected. Analysts have said sentiment towards the sector remains poor and that’s unlikely It wants to see tighter supervision of the junket to change until the government provides industry and more investment in non-gaming amenities. The operators are also expected to further detail as to its intentions. step up efforts to promote The two biggest areas locals and to support of concern appear to be small-to-medium sized a proposal to increase businesses in the territory. operational oversight The longMany analysts have of the companies. Some term bull thesis downgraded their forecasts analysts have suggested that for Macau and its gaming this may involve putting a remains intact, operators in the wake of government member on even if exact the publication of the draft the board of directors of law. However, most say the operators. timing is still that the reason behind the This would give them uncertain. re-rating has been more greater clarity into areas of related to the slow pace operations, such as marketing of recovery than concern activities, raising concern over China. it may add a further drag “The long-term bull thesis remains intact, on the already limited potential to target clients in China. The operators are only able even if exact timing is still uncertain,” Bernstein to promote their non-gaming activities on Research wrote in a recent note, saying the selloff had been overdone. the Mainland. The firm expects 2021 gross gambling The draft amendments, which are out for public consultation until Oct. 29, also revenue to reach 34 percent of its 2019 levels, hint that there may be restrictions on the with mass at 41 percent and VIP at 25 percent of the prior amounts. distribution of dividends. Bernstein notes that the companies are This may range from seeking prior permission before announcing payouts to shareholders still profitable at the EBITDA level with GGR through to limits on what can be distributed. at 30 percent of where it was in 2019. It is now expecting GGR to top 2019 in 2023 The government appears to be trying to ensure that capital is returned to Macau for further and then to achieve low double-digit growth going forward, led by mass and premium investment in the gaming industry. The gaming sub-concessions will also mass. It said that the “long-term structural be jettisoned under the draft proposals. This recovery trumps delay and uncertainty” was expected and most analysts expect the with the stocks now offering an “attractive three sub-concessionaires to be given a full risk-reward” profile after the recent selloff. JP Morgan is not so certain and said there concession license in the re-tendering process. SJM Holdings, Wynn Resorts and Galaxy is “no point in fighting the policy” direction Entertainment were awarded the original for the Macau market. Further clarity on what concessions, while Sands China, MGM China the government intends is needed before and Melco Resorts & Entertainment are making investment decisions.

“

”

GROSS GAMING REVENUE from 2019

Y-O-Y 2021E

+65%

-66%

VIP

+31%

-76%

Mass

+83%

-59%

(Source: Bernstein)

Wynn Macau lenders agree $1.5b financing Wynn Macau said lenders have agreed to a $1.5 billion revolving credit facility, which will be used to refinance existing debt and for general corporate purposes. The facility will consist of one tranche of $312.5 million and one of HK$9.26 billion. The funds will be made available to Wynn’s WM Cayman II unit, which also has the ability to upsize the loan by a further $1 billion. The final maturity of all outstanding loans under the Revolving Facility is 16 September 2025. Each loan under the Revolving Facility, consisting of both United States dollar and Hong Kong dollar tranches, will bear interest at LIBOR or HIBOR, as applicable, plus a margin of 1.875 percent to 2.875 percent per annum based on the leverage ratio of WM Cayman II on a consolidated basis.

AGTech Holdings to buy Macau Pass owner for $100m AGTech Holdings, a Chinese lottery supplier, said it has agreed to buy the owner of Macau Pass for a maximum of HK778 million ($100 million) to diversify its revenue streams. Hong Kong-listed AGTech is buying the entire capital of Macau Pass Holdings Ltd, which owns 99 percent of Macau Pass. It’s also buying the remaining 1 percent in the target company. Macau Pass provides services that enable retailers and other merchants to accept different payment methods from other payment service providers, such as the Alipay e-wallet, so customers can choose their preferred payment methods at checkout. Macau Pass receives commission income from the merchants for processing the payment.

Asia Gaming Briefings | October 2021

GREATER CHINA 12

MACAU

Law changes trigger stock exodus, but should it have been a surprise? Signs China is tightening its grip on the gaming industry in Macau triggered a record sell off in the big six operator stocks, although leading gaming industry consultant, Ben Lee, said the latest edict shouldn’t have come as such a surprise.

he Macau government’s draft legislation for the gaming industry includes proposals that will tighten government supervision over the companies at the operating level, potentially impose restrictions on dividend distributions and increase local share ownership. The law will also do away with subconcessions and will likely reduce the maturity of the gaming licenses, which currently stand at 20 years with the possibility of a five-year extension. Investors voted with a stampede for the exits. According to Bloomberg data, Macau’s operators lost a combined $18.4 billion from their market value, which was a record. The Bloomberg Intelligence Index of the six companies also fell a record 23 percent, with the three U.S. operators being the hardest hit. Lee, who is a 16-year Macau resident and managing partner of iGamiX Management & Consulting, said investors had been lulled into a false sense of security. “They had become too comfortable with the scenario that the government would not

Asia Gaming Briefings | October 2021

touch an industry as large as Macau’s gaming industry,” he said. “There is nothing too big for China to touch.” In recent months, Beijing has turned its attention to sectors from private education, to gaming and food delivery under its “Common Prosperity Plan,” designed to close the country’s

“

There is nothing too big for China to touch.

”

wealth gap. Its initiatives have wiped trillions from the value of Chinese stocks and lead to fundamental debate amongst Western investors as to how to view and value the country’s markets. Billionaire investor George Soros recently

wrote in a Wall Street Journal op-ed that “the regime regards all Chinese companies as instruments of the one-party state” and this “does not augur well for investors.” Macau’s draft gaming bill contains little detail or explanation on some of the points that have raised concern. Deutsche Bank points out that at present the only certainty is uncertainty. However, Lee says there is enough evidence for investors to be wary. The government has stressed the importance of creating an industry of a suitable and sustainable scale, but it gives no guidance as to what that scale should be. Macau hit a record level of gross gambling revenue of $45 billion in 2013 before dropping off following China’s anti-corruption campaigns and scandals involving junket operators. By 2019, it had returned to GGR of $37 billion, but Lee said this level may be above Beijing’s comfort levels for gambling revenue. “We saw a series of responses by the Mainland in terms of anti-gambling edicts and the blacklists. This latest move should be no surprise for people who are expecting moves by China to control the industry.”

Asia Gaming Briefings | October 2021

SOUTH EAST ASIA

PHILIPPINES

PAGCOR defends tax collection record, as government seeks more funds from gaming The Philippines’ market regulator is pushing back against accusations that it has failed to collect enough tax from its offshore gambling operators at a time when the government is seeking to optimize revenue from the gambling industry.

SOUTH EAST ASIA

n its annual report, the Commission will impose a five percent franchise tax on Audit (COA) said the Philippine on the gross gambling revenue of POGO Amusement and Gaming Corp. (PAGCOR) operators in an attempt to raise more money had failed to collect PHP1.4 billion ($28 from the industry. The House Ways and Means Committee million) from online operators. The largest amount of uncollected revenues chair said that the proposed changes should came from Philippine Offshore Gaming raise tax revenues from POGOs by PHP13.4 Operators (POGOs) at PHP1.36 billion, billion ($266.6 million) in its first year of followed by poker at PHP9 million, as well implementation, and nearly PHP 177 billion as electronic bingo, traditional bingo, bingo in five years. The measures were an improvement from raid, electronic gaming, and others. COA said there were 15 POGOs with initial proposals that had sought a tax of 5 due receivables ranging from PHP804,000 percent on turnover. However, the rising cost of doing business and issues with immigration to P462 million. PAGCOR explained that the outstanding permits have triggered an outflow of POGO amounts were due to its “intensive fight against licensees from the country. PAGCOR Chair Andrea Domingo said illegal online gambling and its overzealousness to maximize collections for government coffers.” most of the firms had fled to Cambodia, Laos and Vietnam. Domingo For the years 2018, said there are now 33 2019and2020,PAGCOR operational POGOs intensified its regulatory and 157 POGO service efforts by conducting providers down from research and carrying The rising cost more than 60 and more out investigations on of doing business than 300 respectively. undeclared websites, To counter the loss games and operations and issues with of revenue from POGOs, which are supposedly immigration permits the government has linked to the agency’s has triggered an been ramping up its POGO Licensees, it said. efforts to promote the PAGCOR found outflow of POGO gaming industry. The several websites which licensees from the Philippines became the appear to be mirrors of first country in Asia the declared websites country. late last year to regulate of its operators as they online gaming for the contain their games, with domestic market. While some even containing more recently President their brands or logos. The regulator said it has billed the licensees, Rodrigo Duterte said he was lifting a ban on based on the average income performance of moratoriums on new casino licenses and a the declared website. However, its licensees ban on properties on Boracay. As a result, Alliance Global has said it plans have protested the bills, saying that the mirror sites are being run by illegal operators, who to push ahead with plans to open a casino at its Boracay NewCoast development on the are stealing their live streams. Some of the claims have been resolved and famous holiday island. The company had been some are still undergoing validation, it said. on the verge of installing casino equipment Taxation for the online gambling industry when Duterte imposed the ban in 2018. Leisure & Resorts World Corp., (LRWC) is a sensitive issue in the Philippines, with the Presidential Spokesperson Harry Roque which teamed with Macau’s Galaxy Entertainment, stressing during a virtual presser recently for a $500 million resort, has also said it’s keen that the government would not tolerate tax- to resume the project. The two companies were planning a low-rise eco-friendly resort evading POGOs. Those that have not fully paid up their that would target high-end tourists. News the ban would be lifted sparked taxes will be forbidden from reopening, he said, while the Finance Department is also protests from environmental groups that investigating reports that some have resumed say the island cannot support more tourism. operations following Covid without settling Duterte shut it down completely for six months in 2018 to allow a cleanup. their obligations. Domingo says these fears are unfounded. The government has passed a bill that

“

”

PAGCOR CASINOS GGR Q1

Table Games

(units in million) 752

486

Slot Machines

1,465 1,068

Junket

256 243

Poker In-house Bingo

1.8 1.8 1.3 1.8

(Source: PAGCOR)

Philippines sees herd immunity by February The Philippines expects to have 70 percent of its population fully vaccinated by February next year, according to Department of Health Secretary, Francisco Duque III. Duque said the current vaccination rate in the country of more than 100 million people was averaging at about 400,000 a day, according to local media reports. Like many developing countries, the Philippines’ vaccination drive has been hindered by a shortage of vaccines. Although there is also a high level of vaccine hesitancy in the country. Secretary Carlito Galvez Jr., the chief implementer of the National Task Force against Covid-19, said this situation should improve in coming months, with the government having secured a steady supply from September, the government news agency reports.

Belle unit gets $116m contract with PCSO A joint venture with Belle Corp. unit, Pacific Online Systems Corp. has been awarded a PHP5.8 billion ($115.9 million) lease contract with the Philippines Charity Sweepstakes Office. The contract for the lease of a customized lottery system has a five-year term. The winning bidder was cited as a joint venture between Philippine Gaming Management Corp, International Lottery and Totalizator Systems and Pacific Online. The Philippine Charity Sweepstakes Office (PCSO) is the principal government agency for raising and providing funds for health programs, medical assistance and services, and charities of national character. The PCSO holds and conducts charity sweepstakes, races, and lotteries and engages in health and welfare-related investments.

Asia Gaming Briefings | October 2021

SOUTH EAST ASIA 16

Cebu’s first IR catches junkets’ attention NUSTAR Resort & Casino is on track to open on Cebu island in the Philippines in March next year and is already attracting interest from junket operators

he island in the central Visayas is one of the most visited in the archipelago and is already a popular tourist destination. There are currently about seven gaming facilities on the island, several of which are smaller operations known as VIP clubs. The full-scale casinos are being operated by the Philippine Amusement and Gaming Corp (PAGCOR), with the major revenue contributor the Waterfront in Cebu City. NUSTAR will be the first upscale resort, although others are planned, including the PH Resorts’ Emerald Bay Resort.

Asia Gaming Briefings | October 2021

“For any competition that is going up in Cebu, I think it’s most welcome,” said Trevor Hammond, NUSTAR’s vice president of table games, in an interview with Asia Gaming Brief. “The more competition we have will drive and create critical mass for the region.” “We will be the first IR to open up and we’ve had a lot of interest from various businesses and junkets because it is an ideal location. It’s not just another gambling spot. There’s such a variety of amenities.” “The site is ideal, the water is pristine clear, it’s going to be a great spot. International tourists will come in and the mix will be quite wide,” he said.

SOUTH EAST ASIA 17

Cebu, which hosts the new Mactan International Airport, was second to Manila in terms of direct foreign arrivals by air in 2019, accounting for 20 percent of total arrivals, while the city was one of the most visited in the Philippines, according to the Department of Tourism. Visitor arrivals to the Philippines rose 15.2 percent to 8.2 million that year. Koreans made up the biggest segment of the market accounting for 1.9 million arrivals, although China was hot on its heels at 1.7 million and was the fastest growing, up 38.5 percent on the year. Katrina Mae de Jesus, head of business development at parent company Universal Hotels & Resorts, says she is confident that Cebu will continue to prove a strong pull for tourists both locally and internationally once borders reopen. “Cebu is the no 1 tourism destination here in the Philippines because of the international airport that has been developed,” she said. “The easy target for us is Southeast Asia, but there is also a strong pull for the local market. Even in the western hemisphere, Cebu would be the number one destination, so positioning ourselves here is a great advantage.” De Jesus explains that the resort will feature three hotel towers. Tower 1 will be ultra high-end, while Tower 2 will be five star and Tower 3 for the MICE market. It will also feature a commercial and retail centre that will bring in luxury retail and food options, a first for Cebu. “I really take pride in this,” she said. “We have our performing arts theatre, the first of its kind, together with a theme park. Our location is actually an island, so we will capitalize on that with a boardwalk. It will also have a skydeck on the 26th floor,” she said. NUSTAR will be opened in phases with about 101 tables and 800 slots when it debuts. The second phase will be rolled out from December 2022 with more tables, slots and the introduction of junkets. Hammond said he expects the social distancing requirements currently in place to remain into the first quarter of next year, if not the first half. “You can put three or four players per table and only alternative slots are opened up. We have to look at our mix and how we’re going to roll out the floor for the opening few months.”

“If we do open up in the pandemic we can only grow from there as things improve.” Hammond said the casino is expecting to start with a revenue split of 20 percent VIP, mostly in-house and 80 percent mass before moving to the 50/50 split which has been standard in the Philippines. He said he doesn’t expect Covid to alter that revenue mix in the longer term. Although there has been considerable speculation about the VIP market, due to China’s ongoing crackdown on capital outflows for gambling, Cebu has an advantage as it sources a great number of its premium players from Korea and Japan. Hammond said the junkets will be primarily Korean, although there is also a large local premium market, whose players at present are travelling to Entertainment City to gamble. NUSTAR is also expecting to take advantage of the Philippines’ decision to open its domestic market for online gambling. “We are seriously considering online gaming. I think it’s something you really need to include in your offering these days. The online gaming industry has managed to keep the industry alive during the pandemic and showed that propensity to gamble was still there so we are certainly looking at that.” He said both sports betting and live streaming are among the products being considered.

Asia Gaming Briefings | October 2021

INDOCHINA

VIETNAM

Phu Quoc readying for international travel from November Vietnam is taking the first steps to reopening its tourism industry, allowing international travel to the island of Phu Quoc from November.

Asia Gaming Briefings | October 2021

The resort has been open since August 1, but is operating under capacity restrictions. Ahead of the reopening the government is putting a priority on boosting vaccination rates amongst locals. Kien Giang, the province in which Phu Quoc is located, has administered at least one vaccine shot to 23.6 percent of its population 18 or older, according to the health ministry. The figure, while still low, is far ahead of the country as a whole. As of mid-September only 5.2 percent of its 98 million people were fully vaccinated. Elsewhere in Vietnam, some provinces considered as lower risk are preparing to open to domestic tourists. However, the restrictions are stringent and likely to pose a deterrent to travel. The Intercontinental Grand Ho Tram, which is located on the coast about an hour from Ho Chi Minh City, outlined the measures that are in place under the reopening pilot scheme. Travellers need to be fully vaccinated and have a PCR test prior to arrival. The spa, gym and foreigner-only casino are closed and only takeaway is allowed from its Grand Cafe. The Bluffs Golf Course is closed and guests must arrange their own transportation to and from the property. These restrictions are expected to be gradually eased as the situation evolves and vaccination rates in the country rise. However, the resort sources many of its clients from Ho Chi Minh, which is one of the worst hit areas of the country.

(Credit: Jannik Skorna)

ike many countries in Asia, Vietnam is beginning to explore how to live with Covid to mitigate the impact on the economy and on tourism. Foreign arrivals to Vietnam slumped from 18 million in 2019, when tourism revenue was $31 billion, or nearly 12 percent of its gross domestic product, to 3.8 million last year. The latest round of lockdowns caused companies to suspend operations and as a result August industrial output fell 7.4 percent from a year earlier, while exports were down 5.4 percent and retail sales plunged by 33.7 percent. Like many countries in Asia, Vietnam fared well during the first wave of the virus, but has struggled to contain the more contagious Delta variant. Cases have surged since late June, to a seven-day daily average of 12,008 on Sept. 14. It appears, however, that as of the time of writing the numbers were on a downward trend allowing for an easing in restrictions. To travel to Phu Quoc, travellers must be doubly vaccinated at least 14 days and no more than 12 months prior and must have a negative PCR test within 72 hours of departure. The government approved the plan to open Phu Quoc on a pilot basis, citing the damage the prolonged border closures and lockdowns were having on the tourism industry. Phu Quoc is home to the Corona Resort & Casino, which is the only one in the country where locals are allowed to gamble.

INDOCHINA

MoF eyes expansion of sports betting The Ministry of Finance is pushing for more global football tournaments to be added to the list of allowed tournaments for betting. Until 2017, Vietnamese locals had been barred from all forms of gambling. A decree in March 2017 allowed Vietnamese citizens over the age of 21 to place bets on international football matches recognized by FIFA and approved by Vietnam’s sports ministry. According to VietnamNet, the updated list comprises 27 events, which includes 15 leagues in Europe, Asia, North America and South America and 12 tournaments which are held every two or four years. It will also allow betting on matches played by Vietnam, including the World Cup, AFC-U-23 Championship, Olympics, Asian Cup and U-20 World Cup. The minimum and maximum bets on football betting will not be changed at VND10,000 minimum and VND1 million maximum.

Covid closures push Donaco to FY21 loss Australia-listed Donaco International posted an EBITDA loss for FY21 after Covid forced the intermittent closure of its properties in Vietnam and Cambodia. The company said its EBITDA loss was A$0.7 million compared with a profit the year earlier of $10.38 million. Revenue plunged to $10.32 million from $53.49 million a year earlier. It posted a statutory net profit after tax of $25.1 million, down from $58.8 million as a result of a non-competition settlement with the Thai vendors of Star Vegas.The company operates the Star Vegas Casino in Cambodia, which was closed for seven months during the financial year ending June 30th, with a renewed shutdown since April. It also operates the Aristo International in the far north of Vietnam, which has also operated on a limited basis. Donaco said it remains positive about the long-term business outlook for the region as vaccines are rolled out. Aristo, which has reopened, returned to positive EBITDA in the month of July, it said.

Asia Gaming Briefings | October 2021

INDOCHINA 20

CAMBODIA

China warns Cambodia over online gambling operations Cambodia’s online gaming industry is once again in China’s cross hairs, with a senior government official making a thinly veiled threat that the two country’s economic ties might be at risk if action isn’t taken.

hinese Foreign Minister Wang Yi met with He Nanfeng, Cambodian deputy and Chairman of the Cambodia-China Intergovernmental Coordination Committee, on Sept. 13. Wang reportedly brought up the issue of online gambling, saying he hoped Cambodian law enforcement will completely eliminate online gambling to avoid affecting “practical cooperation” between the two countries. China has been cracking down hard on cross border online gambling and in particular on jurisdictions that target its nationals for gambling purposes. In 2019, it called on its regional neighbours for help in clamping down and Cambodia was fast to respond.

Asia Gaming Briefings | October 2021

Prime Minister Hun Sen announced he was banning online gambling from the beginning of 2020. The country’s thriving industry was centered mainly on the coastal town of Sihanoukville, where casinos have mushroomed as a front for live dealer operations streaming table games to the Mainland. The ban sparked an exodus of online companies from the town, although within six months local sources say the industry was back in full swing and in expansion mode. One local resident said online gambling was still thriving, but “not as in your face” as it was before the ban, while companies were actively seeking to recruit staff for their China-

facing operations. The presence of the industry in Cambodia was also recently confirmed by Philippine Amusement and Gaming Corp. Chair Andrea Domingo, who said many of the companies that had been operating in her jurisdiction had fled to locations such as Cambodia, Laos and Vietnam. She was speaking after it emerged that the regulator had been unable to collect PHP1.4 billion ($28 million) in taxes from its online industry, as many companies had shut up shop and left. While Cambodian authorities appear to have been turning a blind eye, Beijing is not. The Chinese state-run media reporting the meeting with Wang reminded that Hun

INDOCHINA 21

NAGACORP 1H21 PERFORMANCE 2021

(units in million)

2020 Revenue

Mass Market: Public Floor Tables Mass Market: EGM

Win Rate

29,870

14.8%

68,449

19.9%

18,944

8.6%

32,689

VIP Market

9.3% 2.8%

80,509 270,870

2.8%

Gross Gaming Revenue 129,323 372,008

Dara Sakor casino expected to open in October

Sen had warned that online gambling in Cambodia risked creating a bubble. Gambling endangers national security and creates a risk for money laundering. Should this happen “large and powerful companies will not invest in Cambodia,” the newspaper said.

Prime Minister “ Hun Sen announced he was banning online gambling from the beginning of 2020.

”

Cambodia’s economy has been a key beneficiary of Chinese foreign direct investment, which totalled $2 billion in the first half of 2021. According to the Council for the Development of Cambodia (CDC), China accounted for 69 percent of total FDI stock. Beijing has been increasingly wielding its soft power in the region and Cambodia is unlikely to upset its giant neighbour.

Hong Kong-listed Century Entertainment said it expects the Dara Sakor casino in Cambodia to open in October and that cash flow from the tables will be sufficient to cover operating costs. The company made the comments in a lengthy note explaining the outcome of discussions with auditors as to whether the business remains a going concern. Century had been planning to operate mass tables at a casino in the gambling hub of Sihanoukville. However, it switched plans to transfer the tables to the Dara Sakor casino. The opening of the resort and subsequent transfer has been repeatedly delayed due to Covid. The company said it has been informed that training and testing of the casino systems will start in Sept, with the gaming business to begin operations in October. In the early stages it foresees operating two tables. The final number of tables to be operated will be decided once conditions met in a Supplemental Framework Agreement are met, it said.

NagaCorp confident on prospects despite 1H loss NagaCorp has swung to a loss in 1H21 as Covid forced the closure of the resort for all but two months of the period, but the operator remains upbeat about prospects. The company posted a loss of $77.2 million, compared with a profit of $20.6 million a year earlier. Revenue declined to $130.4 million from $377.5 million. NagaCorp said it remained profitable on the EBITDA level, due to efforts to cut operating costs and cash expenditure. Adjusted EBITDA was $17.7 million. The company’s NagaWorld property in Phnom Penh closed on March 2 through to Sept. 15 due to efforts to control Covid. The group said prior to the closure it has seen solid support from the local expatriate community. Locals are not permitted to gamble. Gross gambling revenue was $129 million from $372 million, with mass market revenue at $18.9 million, down from $32.6 million. VIP revenue plunged by more than half to $29.8 million.

Asia Gaming Briefings | October 2021

INDOCHINA 22

NagaWorld ramps quietly, expansion projects still on the cards NagaWorld, Nagacorp’s integrated resort in Phnom Penh reopened its doors after more than a six month shutdown on September 15 without its usual fanfare.

t appears that the country’s government, which can be commended for its aggressive vaccination rollout, still needs to keep an eye out for sensitivities in relation to reopening a large-scale facility in its capital city. In an interview with Asia Gaming Brief in midSeptember, McNally confirmed that while the government had given them the greenlight to open, they have chosen to do so more quietly for the time being. “It’ll be a gradual reopening I would expect,” said McNally. The reopening of NagaWorld has been seen by some as being long overdue, given Phnom Penh’s record vaccination levels this year. “If you look over the last six months, the leadership in the Cambodian government has stepped up to the plate and has been very proactive and responsive to the serious problem at hand. They’ve undertaken a very aggressive vaccination program.” Around 79 percent of the country’s adult population has been vaccinated as of August, and in the capital city of Phnom Penh, more than 95 percent of adults have been vaccinated according to McNally. “Much of this has occurred over the last several months. In the initial phases of 2020, vaccinations were not available.” The company has not stood idly by these last six months, said McNally. “I’m proud to say that Naga has played a very instrumental and contributing role while this pandemic has been going on. Our Kind Heart Program, whether it was donations, food banks or our Naga farm, putting together food packages for people in the Ang Snoul district. We also donated surgical masks, hand sanitizers, and temperature equipment.” Dr. Chen Lip Keong, the chief executive of NagaCorp has personally contributed more than 15 million dollars to purchase and acquire vaccinations for the country. “When I talk about a larger picture, our commitment to the country, the growth and development that we’ve seen and also that we’re committed to nation building... You have to be a contributing corporate citizen during tough times.” However, AGB notes that at the same time, NagaCorp has had to reduce its head count in mid-2021 in order to cut costs amid the prolonged shutdown. McNally said as many as 1,200 staff had to be let go during the course of the pandemic and shutdown.

Asia Gaming Briefings | October 2021

“Obviously any time you go through a crisis situation where you’re closed for an unknown period of time... you have to do a very serious cost review. We obviously had to deal with staffing issues. In 2020 we were at around 8,200 [staff], we’ve now moved that down to around 7,000.” “Nobody likes to have to let people go. So we did it in what we thought was a rational way. We had a program of separation where the majority of the 1,2001,300 employees that were reduced separated from the company with some additional incentives to leave. Other people have been granted compensation over and above government guidelines,” he said. In regards to recovery, McNally says this will be a gradual process. “Before closure we were quite successful dealing with the local mass market and premium players. I think it will take a while before we see tourism levels come back.” McNally said the Cambodian government is eyeing for

INDOCHINA 23

tourism to reopen in November 2021, though admitted that it “won’t happen overnight.” In 2019, Cambodia welcomed nearly 6 million visitors, 2 million of which were from mainland China. Projections at the time pegged Cambodia’s visitor numbers to increase to 7.5 million in 2020 and 12 million in 2025. “We don’t negate that. In other words, obviously we can’t control or predict what’s going to happen in the next couple of years but we are optimistic based on the very aggressive measures by the government in terms of vaccinations that we’re seeing better days ahead combined with our own very strict measures as it relates to sanitation, testing, vaccination for our employees. All those measures are important and in place as we reopen.” Giving an update on NagaCorp’s other projects, McNally noted that the company’s $3.5 billion expansion of its NagaWorld casino, Naga 3, is moving ahead. “We’ve continued to advance forward. We’ve done a lot of piling work, ground development work. By the end of 2021 we will be going out for bids with different construction groups for the development and construction of the main towers.” “Moving forward we’ll be looking at the totality of the project and making adjustments

based on the market demands and where the world is situated, particularly Cambodia and Southeast Asia.” “But as it stands, we have not wavered from that commitment and we are still targeting a September 2025 opening.” As for Naga Vladivostok, NagaCorp’s planned integrated resort in Primorye currently in construction, McNally said given recent delays the original target of Summer 2022 will not be achieved, and they are expecting a delay of at least a year or so. “As of June 2021, the hotel towers have been topped off, water and sewage connected. But yes, this development started back in 2016 but we are pushing forward and as things improve there, combined with the fact we have a local construction company, things are coming along well.” Asked about whether Naga may take a page out of Tigre De Cristal, which saw strong results following a pivot to domestic patronage during the course of the pandemic, McNally said the strategy will be similar to that of NagaWorld in Cambodia, that is, targeting the local expat community as well as Chinese VIP visitation. “Certainly we will not ignore that local population by any means. They are not only the host country but we know that there’s a

solid customer base. But we know as well that it is uniquely situated on the Russian side of the Russian-Chinese border... We will try to drive Chinese tourism.” Finally, as for NagaCorp’s plans for Sihanoukville and Siem Riep, McNally only noted that the projects are still on the cards, though proposals for these projects are still in the development stages for now, and there is no solid timeline on when things will progress. “We don’t have any concrete plans for that yet but we certainly view it as a future opportunity,” said McNally.

Asia Gaming Briefings | October 2021

FOCUS 26

Covid provides catalyst for change When a once (hopefully) in a lifetime event occurs, it’s fairly clear that some things will never be the same again.

global pandemic that brought the gaming industr y to its knees, closed down international borders, grounded air travel and crippled economies is bound to spark some changes. In fact some people note that it’s often events such as this that are the catalyst for real innovation. Combine some of these changes with advances in technology and exciting times may lay ahead. In our Focus section this month, we take a look at some things that will be different once the industry fully recovers. We start by looking at the traditional casino floor layout. The days of long banks of slot machines have gone due to social distancing requirements that require every other unit to be turned off. The rules have required casino floor managers to be more creative and to listen to what the customer wants and how the customer wants to play. People are social, but are more wary than before of people they don’t know and slot machine set up needs to reflect this change. Those that have listened have found the changes are paying off in terms of more revenue from fewer machines. We also look at how Covid has driven the adoption of technologies to improve the customer journey. Customers want frictionless play and the casino of the

Asia Gaming Briefings | October 2021

future will need to respond if they are to get them to come back through the doors. This is likely to involve the introduction of more smart tables and table game systems, as well as no chip, or virtual chip play. Such a move could trigger innovation in betting types for table games, such as in the run betting. Not all is positive, however. As casinos open up around Asia, operators may find that the Chinese punter doesn’t come flocking back in the same way as had been anticipated. While the world has been focused on Covid and the closure of borders, Beijing has been intensifying its campaign against gambling and cross border capital outflows. It has shown itself to be merciless when it comes to achieving its policy goals, as industries such as technology and education have found out to their cost. We ask again what this might mean for gambling in Asia and those casinos readying to accept Chinese guests. Will they be disappointed and do we need to accept the idea that Macau might also be in the crosshairs. In a similar vein, our last article in the series takes a look at China’s ban on children gaming more than three times a week. We ask whether the ban will have an impact on the esports community of which China is such a large and growing part. If the young are unable to practise, where will the esports stars of the future come from?

The next generation Kascada™ 43” vertical cabinet is built on the legacy and success of its revolutionary portrait cabinet heritage as well as new, cutting-edge advancements. Players will love the immersive game experience provided by Kascada’s innovative double-curve UHD display, enhanced iDeck, enveloping soundbar, and alluring lighting effects.

LAUNCH TITLES:

MACAU OFFICE | Phone: +853 2872 2539 | sggaming.com/asia The look and feel of the games and their individual components and displays are trade dress of Scientific Games and its Subsidiaries. All ® notices signify marks registered in the United States. ™ and © 2021 Scientific Games Corp. and its Subsidiaries. All rights reserved. Scientific Games is committed to responsible gambling. Responsible gambling features are proactively developed to ensure the safety and security of players while using Scientific Games products. Asia Gaming Briefings | October 2021

FOCUS 28

Covid accelerates slot optimization Social distancing rules and changes in consumer preferences due to Covid are helping to prove a theory that slot optimization experts have held for some time.

ewer machines in more private configurations can paradoxically boost revenue per unit, rather than reduce overall yields. As casinos reopen, many operators are noting strong pent-up demand, but also subtle changes in customer preferences and how they want to play. “In the U.S. people don’t want to be near people they don’t know and they do want to be near people that do know,” said Bruce Rowe, a 40-year industry veteran and slot optimization expert. “So people who had recognized this and had their games organized into carousels or pods rather than long banks of games didn’t have to redesign their casino floors as much as

Asia Gaming Briefings | October 2021

those who had long banks of games.” “Once they started to study the data they found they were making more money on that,” he said in an interview. Players want private spaces to play with friends and family, they want a sense of security and they also want to be able to see what else is going on around them in the casino, both from an entertainment and safety point of view. Casino operators in the past had no incentive to provide such arrangements, but the social distancing forced by Covid has given a push to try new ideas. “Take a bank of four and six,” Rowe said. “You take the six and reduce it to four and you take the four and reduce it to three and those games will make as much,

FOCUS 29

or more money than the four to six games you had previously.” Rowe said they are finding that they are able to generate 20 percent to 30 percent more revenue from the same unit with the new configurations. Another change that Rowe has noted is a move to double-wide seats, because you can play with someone you came with, but not someone you didn’t. This kind of preference was already in evidence prior to the pandemic, but operators have been slow to pick up on the trend. He said in Australia, he has seen a customer take a chair from the buffet area and put it on the casino floor to be able to play the same machine as her companion. While some of the manufacturers that have their own machines on the casino floor in the U.S. have recognized this and are providing wide seating, the operators have been slower to react. “It has fascinated me that the operators won’t spend the money on them but the manufacturers will if they’re putting a machine on the floor that they own,” he said. A key question for casino floor managers following the pandemic will be assessing the

risk profile and budget of their clientele and how that may have been affected. All evidence so far points to the fact that customers have saved up cash from 18 months of enforced isolation and are willing to spend on gaming, with the U.S. reporting record revenues. However, not all customers are created equal and for some Covid will have damaged personal finances. “Does our product match the risk profile of these customers as they come out of Covid is a question that’s in my mind and I’m posing to my customers,” he said. Another sector that has undoubtedly performed well during Covid has been the live multi-game terminals. They can provide the excitement of the live table, without the need for plexiglass divisions and can also help the less experienced player to become comfortable without being intimidated by the table experience. However, Rowe said in many cases they could do better. “I just saw one this weekend and was shocked at the lack of theatricality and thought

“

Once they started to study the data they found they were making more money on that.

”

that went into the presentation,” he said, with no lighting on the dealers. “The games are often brought in, but they have not set them up in a way that designs the space to create the energy that we’re looking for.” While Rowe is currently grounded in the U.S. he has spent time in Macau and worked with Genting Malaysia. He expects strong pent-up demand once Resorts World Genting reopens and notes that the local players already had a preference for a more communal-style of play. “I would expect in Macau that when the slot players do come back into the more private salons, which already had distancing and private places, that those areas will probably do very well.”

Asia Gaming Briefings | October 2021

FOCUS 30

Making‌ ‌it‌ ‌easy‌ ‌and‌ ‌making‌ ‌it‌ ‌fun:‌ ‌ a‌ ‌journey‌ ‌through‌ ‌the‌ ‌casino‌ ‌of‌ ‌the‌ ‌future‌ ‌ In this special report, we asked gaming industry executive David Croft, former general manager of product and strategy at The Star Sydney, to put himself in the shoes of a patron visiting a casino of the future. What technology will he come across, what kind of experience will he have? We see the entire customer journey through his eyes.

“T

he customer journey of the future will all be about removing obstacles and annoyances to make the experience seamless.”

Entry points

The journey starts as early as the car park. Upon arrival, I’ll tap my device on the entry gate. Sat Nav interaction will direct me to the nearest preferred car parking space. Before I leave the car, a welcome message will come through, which includes personalized marketing offers. If I’m arriving on foot, instead, I’ll come through a

Asia Gaming Briefings | October 2021

Gantry equipped with facial recognition software. This has the ability to pick up excluded customers. Fortunately, I’m not one of those and my arrival is acknowledged through welcome messages and personalised marketing offers. I’m looking forward to my personalised offer for the visit. It could be: • A discounted meal at my favourite restaurant • First drink free at the bar • Matched bets • Jackpot bonus • Triple Points • Hotel room upgrade Either way, there will be something for everyone on every trip to continue to engage and reward customers.

FOCUS 31

excitement to the property. Lots of winning sounds reverberate across the property and I can play in areas where jackpots are shared between all players in that area. If the tables are full I can find my games on ETG and my choices have now widened. I can choose to sit with many others in a stadium and share the emotion of wins and losses with them. I can sit in a more intimate setting around a device or dealer with a few others. Or if I want some privacy I can find a private pod just for myself where I can control the game speed. Due to the nature of the product I have a great choice of games, sidebets and pricing at my fingertips, or I can use my own device to hook into the live games on the floor whilst sitting at the bar or in front of the big screens watching my favourite team play in a comfortable chair. All possible through the digital wallet and integrated gaming systems. Retiring For the Day

What To Play? Next, I’m stepping onto the busy casino floor. With technology, the frustration of finding my game of choice on this huge, busy floor has been removed. Today, I want to play $50 Baccarat. Easy. First thing I’ll do is open my trusty myCasino app. I’ll see there is one seat available on tables 15 and 16 or three seats on the $75 table - number 18. The app supplies directions on how to find the tables and it also gives me information on the table trends, jackpots and maybe even who the dealer is with a quick tap. Actually, on second thought, I’ve decided to play Dragon Cash instead. No longer do I need to walk around trying to find the empty machines with the jackpot level I like. Again, on my device I’m now able to see where the empty chairs are and what the jackpot is sitting at. I walk directly to my device without disappointment. Getting In the Groove Once seated, my experience will be a seamless tap to bring funds from my digital wallet to the device. I will have the choice to set play limits and bank any larger wins. I can order directly from the device for F&B – no more hoping

the waiter comes past my machine. If I change machines after ordering I am easily found again. I will get suggestions for games similar in structure to the game I am playing and I may have personalised jackpots – funds that only I can win. On the table games, similar to a slot, I will be able to buy using funds in my digital wallet. I will have the choice of playing with chips or playing chipless tables that enable a broader range of bet odds. From the dealer’s point of view, technology will have removed the administration work from the operations of running tables, so the table now opens on the hour, there are no breaks in play for chip counts and the dealers are more attentive to the customers enjoyment due to improved coaching as this is now the focus. With the introduction of smart table technology supervisors are no longer doing hourly head counts and float checks, or estimating ratings. Thanks to smart tables, my ratings are now accurate, relieving a frustration as I get rewarded for my play, get the right number of entries into draws and the personalized messaging is far more relevant. In addition to the game play I now have the chance to win mega lotto size jackpots with all devices connected, bringing a real sense of

When I am ready to leave I can cash out through one of the devices on property, move my funds to my bank account or just leave them there for next time. If I have valet parking I can notify the attendants that I will be leaving and my car will be ready for me when I exit. I am no longer carrying cash or loyalty cards, my access to parking, food and drink is easy, my ratings are accurate, the service is outstanding and no doubt after I leave I will receive the obligatory thank you message with a relevant, personalised offer available on my return.

Asia Gaming Briefings | October 2021

FOCUS 32

China crackdowns loom large over international travel plans As international borders begin to reopen, a key question for the industry in Asia will be whether the preferences of the Chinese outbound traveller have changed.

re-pandemic they were the driving force behind growth in Asia’s IR industry, but Covid has masked policy changes from Beijing that may have a longer lasting impact on the region’s prospects. China clamping down on gambling is nothing new. However, over the past few years the Mainland government has turned up the heat, with a range of increasingly draconian measures. Beijing has also made it abundantly clear in recent months that no target is too big when it comes to achieving its political aims. A crackdown on private education,

“

I think the PRC has shown that it is concerned about the nexus between high stakes gaming and capital outflows.

”

fintech, real estate and gaming has wiped trillions of dollars off the value of Chinese stocks this year. The latest campaign appears to have its roots in early 2019 on concern about capital flight due to gambling, as the online industry was mushrooming in countries such as Cambodia and the Philippines. In August of that year, the Chinese government issued a strongly worded statement through its embassy in Manila urging its neighbours to help crackdown on online gambling, which it said poses a threat to China’s financial stability. The Philippines responded with tighter regulation of its own industry, while Cambodia immediately issued a ban on all online gambling activities. Last month, Beijing once again called on Cambodia to stop gambling amidst reports the industry was quietly thriving. The government didn’t stop there. In 2020, China said it had drawn up a blacklist of nations that were targeting its nationals for gambling purposes and has

Asia Gaming Briefings | October 2021

imposed criminal penalties for marketing to its residents. The list has since been expanded twice, however it has never been published. The latest move has been a ban on all cryptocurrency transactions that was issued in late September. Add to this, Beijing’s “common prosperity” policy, which aims to address the country’s gaping wealth gap through higher taxes, including taxes on property and inheritance and the outlook for Chinese gaming in Asia as travel resumes is highly complex. “(President) Xi Jinping has indeed shot from the

FOCUS 33

hip in all directions in the last few months, bringing down Fintech, cramming schools, game providers etc and now every family that earns more than $75,000 a year is told to face more taxes soon to skim off “excess” wealth,” said Prof. Wolfgang Arlt, founder of the China Outbound Tourism Research Institute. “So after borders open, Chinese will try all kinds of ways to get money out of the country, gambling will certainly be one of them,” he said, adding that he has no doubt the Chinese will continue to gamble for “the next 10,000 years.” However, where will they go? Macau has always been viewed as a special case where gambling will be tolerated, but even here there are question marks. Some observers have questioned as to why China is dragging its feet in reinstating electronic issuance of individual visit schemes and group visas, even though quarantine-free travel has been possible since Sept. 2020.

“I think the PRC has shown that it is concerned about the nexus between high stakes gaming and capital outflows,” said one Macau industry veteran, who asked not to be named. “I think it will always accept that people will want to travel to Macau for recreation, but it has drawn a few lines in the sand, not least with criminalising the recruitment of PRC residents for involvement in gambling “tourism.” “COVID-19 has inadvertently provided a pretext for the Central government to reduce the attraction which Macau holds by restricting access,” he said, adding that there is also good reason for prudence from a virological standpoint. “So, in short, two public policy objectives can be met with the same suite of measures.” Professor Arlt points to the recently published draft consultation paper on amendments to gaming law as a clear sign Beijing is seeking tighter control over the industry. “The new “45-day public gaming consultation” will probably not kill gambling in Macau, but result in tighter rules and controls and a bigger

cut for the Chinese central government,” he said. “All “non-gaming” tourism attractions will not be able to compensate for losses in gaming, Macau is simply too small and has been overflowing with Chinese visitors in the last decade during holidays already.” Elsewhere, there are already signs that the industry is preparing to wean itself off over dependence on China as travel resumes. The Philippines has a strong domestic market, which underpins the industry. It has also traditionally enjoyed strong visitation from Korea and Japan and some operators say they will be redoubling their efforts towards these markets. Australia, which also has local support, has seen its international business hit by a double whammy of Covid and the Crown Resorts inquiries, which have resulted in the end to all junket business. As a result, the jurisdiction is also unlikely to be looking to China to fill its casinos. Elsewhere, operators in recent filings have spoken of reviewing their marketing to target the growing Southeast Asian demographic.

Asia Gaming Briefings | October 2021

FOCUS 34

China game restrictions could have upside for esports There has been a general belief that Mainland China’s toughened restrictions on underage video gaming could undermine growth of the fast-growing esports industry, though some experts say otherwise.

ast month, the National Press and Publication Administration (NPPA), the government regulator for video games, issued a new rule that further reduced the amount of time young gamers are allowed to play. Under the rules, minors under the age of 18 are now only allowed to play video games on Friday, Saturday and Sunday, between 8pm and 9pm, effectively giving them a total of three hours of video game time per week. It’s a significant tightening of restrictions from the previous rule set, which gave young people 1.5 hours per day on weekdays and 3 hours a day on weekends and holidays.

Asia Gaming Briefings | October 2021

“What was already quite limited has just become nearly impossible, and the specific hours of 8pm-9pm are important too – because one could imagine that parents might not want their children to have screen time at that hour of the day,” said Niko Partners in an analyst note. The moves are part of China’s attempt to clamp down on video game addiction, a campaign which began as early as 2005. A study conducted in 2020 found at least 17 percent of Chinese adolescent gamers suffered from Internet Gaming Disorder, with traits including high neuroticism and low conscientiousness, spending unhealthily long amounts of time playing, and high expenses.

FOCUS 35

“Gaming addiction among minors in China has been a topic that regulators have wrestled with for more than 15 years,” noted Niko Partners. “While China’s government has been positive on video games recently and has promoted segments such as esports and cloud gaming as key growth areas, gaming addiction among minors is viewed as a negative output of the popularity of video games in society.” As a result, there have been concerns that the blanket restriction on video games is likely to have negative consequences for China’s esports scene. Like any sport, many esport professionals become so through years of training and practice beginning at an early age. However, esports industry expert Hai Ng of Neomancer says that the restrictions may actually be beneficial for China’s esports and esports betting sector. Hai believes that the young gamers who have lesser access to gaming during their down time will move instead to watching streamers and spend more time engaging in esports viewership instead. “If anything, there is an upside that a lot

makes “the Absence heart grow fonder. If you can’t play it, you’re going to find a substitute.

”

of people are missing. Absence makes the heart grow fonder. If you can’t play it, you’re going to find a substitute.” Hai also believes that given China’s push to professionalize the esports industry, the government will put in place exemptions for young esports professionals. Their time playing the game will fall under “professional employment”, thus being exempt from the rules.

“China is also rallying behind the idea of esports becoming an Olympic sport, so there might be further regulations or notices in the future that might prevent negative impact to the whole ecosystem,” said Niko Partners’ Darang Candra. “In the same way they’re going to train gymnasts, they’re going to train esport athletes,” adds Hai. Nevertheless, Niko Partners believes that the new rules will cause a decline in the number of gamers under 18, from the current level of 110 million, which could also discourage minors from taking up gaming as a hobby or career. Though Niko Partners doesn’t believe there will be much of an impact on video gaming revenue, as youth gamers make up between only 1-5 percent of gaming revenue across the board. Hai believes that the segment that will suffer most from these new rules will be “Gacha” style games - generally free-to-play games that rely on loot box-style mechanics to attract real-money spend.

Asia Gaming Briefings | October 2021

NORTH ASIA

KOREA

Kangwon seen as star performer as country opens post Covid Kangwon Land, the only casino in South Korea where locals are allowed to gamble, is expected to continue to outperform its peers as the country reopens after Covid

Asia Gaming Briefings | October 2021

NORTH ASIA

H Investment & Securities analyst although it will be required to make a greater Hazel Lee said the company is the contribution to a fund designed to boost the top pick in South Korea’s casino economy in the remote area of the country in sector. She has a “buy” rating on which it operates. Instead of paying out 25 percent of the shares and a price target of KRW36,000. Kangwon operates the High1 Resort in a profit, the company will be required to pay remote area of the country. It is permitted to 13 percent of gross gambling revenue to the allow locals to gamble under the Special Act on Abandoned Mine Fund. Kangwon Land generates more revenue Development Support for Abandoned Mine Areas, which was enacted in 1995 to help economic than the country’s other foreigner-only operators recovery in seven abandoned mining regions. combined, buoyed by significant local demand. Both Paradise Co. and Grand Korea Leisure Writing in Business Korea, Lee notes that the casino is currently hampered by strict have highly volatile earnings as political spats social distancing rules. It is currently limited and outbreaks of disease, even prior to Covid, to a maximum of 1,800 visitors, which is 30 cut tourism numbers. The locally listed companies have been percent of its capacity. However, she said that the number of people marketing staycations to locals to drive revenue booked on a daily basis has already returned to from their non-gaming activities and both reported improved pre-pandemic levels. revenue for August. “As this proves the Paradise sales were firm’s solid demand, its particularly strong, earnings are expected to As this with total revenue of rebound once operations KRW59.4 billion ($51.3 normalize,” she wrote. proves the firm’s million), compared with The South Korean solid demand, KRW6.9 billion in July government is currently and KRW17.2 billion the in discussions to move to its earnings are month last year. a policy of coexistence expected to rebound sameGrand Korea Leisure with the virus, which is said sales rose 16 percent likely to take place from once operations from the prior month November as vaccinations normalize. to KRW8.8 billion, but rise. This is likely to were down 12 percent mean additional easing from a year earlier. The of casino restrictions. company operates the The company has increased its gaming tables by 10 percent and Seoul Gangnam, Seoul Hilton and Busan its operating hours by 10 percent, meaning Lotte casinos. Jeju Island casinos have also struggled during once operations are normalized sales will the pandemic, with the majority remaining closed surpass their prior levels. Lee estimates Kangwon Land will post in the absence of foreign tourists. However, Jeju 3Q21 sales of KRW272.5 billion, up 256 percent Shinhwa World, operated by Landing International, year-on-year and an operating profit of KRW4.2 was also buoyed by its non-gaming activities. The company operates a foreigner-only billion, with both figures above consensus views. She also notes that under recently modified casino at its IR on Jeju Island, the Landing social distancing rules, even if Covid levels rise, Casino, which generated revenue of HKD58.65 million during the six-months, a near-42 per casinos won’t be shut down. The company reported a major improvement cent fall year-on-year. The loss from the segment also rose in its 2Q21 results, both year-on-year and from the prior quarter, returning to a profit of KRW20.9 drastically, totalling HKD247.98 million, up nearly 250 percent. billion ($18.1 million). But despite the downturn in its gaming In the same period a year ago, Kangwon Land had a loss of KRW45.6 billion, while for segment, overall revenue for the group rose by 1Q the loss was KRW40.9 billion. Revenue in nearly 82 percent, reaching HKD476.62 million, the period surged 487 percent from last year and with non-gaming revenue from Jeju Shinhwa doubled from 1Q to KRW203.6 billion. Casino World totalling HKD350.65 million, up 186.5 percent yearly, supported by its hotels, MICE, sales made up KRW183.9 billion. In August, it announced that the government F&B, theme parks and merchandise sales, as well has extended its license for another 20 years, as leases of retail space at the resort.

“

”

KANGWON LAND SALES non-casino

casino

(units in 100 million won)

198 1,839

141 177 64

1,172

120 854

589

283

2Q20

3Q20

4Q20

1Q21

2Q21

GKL appoints Kim Youngsan as CEO Grand Korea Leisure, a foreigner-only casino operator in South Korea, has appointed Kim Young-san as its new CEO, replacing Yoo Tae-Yeol. Kim’s appointment comes after an extraordinary shareholders meeting, and over two other candidates. His term is set to last for three years. According to a filing from GKL, Kim has been the vice-chairman of the Korea Casino Association from 2019 and was a former director of the Culture and Arts Policy Office of the Ministry of Culture, Sports and Tourism from 2016 to 2019. He has also served time as the director of Korea Cultural Center in Los Angeles from 2012 to 2016. GKL posted a narrower loss for 2Q21 as sales surged both year-onyear and sequentially.

New Silkroad Culturaltainment calls Jeju IR prospects “arduous” New Silkroad Culturaltainment said it recorded zero revenue from its entertainment business in South Korea in 1H21 due to the ongoing pandemic prevention measures. The Hong Konglisted company operates the Megaluck Casino on Jeju Island. In the same period of 2020, the casino generated HK$0.4 million in revenue. New Silkroad, which also operates a profitable wine business in China, said the losses from its entertainment business had narrowed by 58 percent in the first half to $2.1 million due to cost containment measures. The company also said that its project to build an IR on Jeju – known as Glorious Hill – remains stalled due to financing difficulties and Covid. “The prospect of the business in South Korea is arduous. The Board will continue to pay close attention and assess the operational situation.”

Asia Gaming Briefings | October 2021

NORTH ASIA 38

JAPAN

Daniel Cheng*

Politics continue to obscure IR outlook Like a delinquent child who refuses to follow the rule book, going astray is more the norm than exception for the passage of casino gaming in Japan. Notwithstanding the unwaning nurture and resources the Japanese government had poured into it over the past two decades, there was little reciprocation for the love and attention it received. The IR (Integrated Resorts) Act is on track to be the oldest alumnus in Japanese legislative history when the first casino finally opens its doors.

he current best estimate for the latter is 2028 which would mark 30 years to realise a piece of law from ideation to implementation. However, by the looks of what’s brewing in the horizon, this recalcitrant may not be quite done yet and still have some tricks up its sleeves. We witnessed the self-expulsion of Yokohama last month which automatically ejected Genting Singapore, Melco Entertainment and Sega Sammy from the IR race as it currently stands. Nagasaki is bracing a maelstrom in threats of lawsuits from the runner-up bidder accusing the prefectural government of gross improprieties. The situation is reduced to a tarring and feathering slugfest that does no favours for either side. Even a sole bidder, and hence winner by default over at Wakayama wasn’t spared, with unfounded accusations slung at Clairvest’s advisor, Bill Weidner, who boasted stellar gaming credentials as the brains behind the global ascension of Las Vegas Sands’ success in Asia. Comparatively to the west, it’s snoozeville at Osaka where MGM Resorts and their partner, ORIX, are filing

Asia Gaming Briefings | October 2021

their fingernails perfectly happily in ennui. We are heading into two months which could see more gale force winds passing through in an exciting political calendar beginning with the just-concluded LDP presidential election which saw four contenders wrangling to take over from Yoshihide Suga to lead the party and become the 100th Prime Minister of Japan. The Lower House national elections is to follow likely in early November and sandwiched uncomfortably between is the start of the 6-month time window for interested prefectures to submit their IR bids to the national government. The IR train is quite safe in the hands of the incoming Cabinet as the quartet vying for the LDP helm are all supportive of the tourism initiative. Taro Kono offers the best prospects for the long haul with his Western educational background and international depth which augur well with the concept of casino gaming as a form of entertainment; he is also the least hawkish in his views towards China whose citizens represent the key customer demographics for Japan integrated resorts. Seiko Noda

NORTH ASIA 39

was a one-time leader in the bipartisan IR parliamentary caucus while Sanae Takaichi’s election ticket rides primarily on the endorsement of Shinzo Abe and is expected to endorse the pet policies of the former Prime Minister, the IR Law being eminent among them. Fumio Kishida had visited Singapore in his capacity as Foreign Minister and toured the city’s two integrated resorts, and it was Kishida who prevailed on 29 September in a run-off against Kono after both came in neck-to-neck in the first round of voting where there were equal number of votes to be had between LDP parliamentarians and party-wide cadres. Kono was seen to overwhelmingly dominate the latter group, which he did in securing 44 percent of the votes whereas Kishida was a distant second with 29 percent to his name. The big surprise was the storm-back Kishida mounted in the parliamentary votes which finally allowed him to pip Kono overall by 256-255 but neither was enough for an outright win which required 383 votes. The duo’s results might look too close to call but the ground rules of

the subsequent run-off voting round virtually assured Kishida of victory. First, the available party-wide votes shrink eightfold to only 47 which worked against Kono. Also, with Takaichi and Noda bowing out, Kishida will benefit in the run-off from the support of those in the Hosoda faction who had chosen Takaichi in the first round. It was a double whammy which saw Fumio Kishida romping to a 257-170 victory over Kono and in the end, he probably didn’t even need the party-wide votes to win; such was the unassailable margin of support he had among LDP lawmakers. He’ll be most beholden to the Seiwa Seisaku Kenkyūkai, the largest faction in the LDP whose official leader, Hiroyuki Hosoda, is widely acknowledged as the main advocate and conservator for the Japan IR initiative. Hosoda will expect Kishida to make integrated resorts a priority agenda in return for his bloc’s support. Still, don’t expect any clearer directions for the IR story immediately after Kishida is crowned Prime Minister because he is unlikely to make any rash moves until after the Lower House

elections. Barring an unexpected outcome, the LDP is expected to hold on to power in November and what observers will be keenly watching is the margin of victory. An increase in seats or retaining the super-majority is an explicit affirmation for Kishida and bodes lesser headwinds in the IR department. But changes in the balance of legislators representing the bidding prefectures may alter the dynamics in the IR host category. Also, the less than marquee remaining slate of Nagasaki-Osaka-Wakayama host contenders meant it is far from a foregone conclusion that the three bidders will automatically be awarded the three licenses. Osaka will pressure for their license in the present six-month window but brace for one or maybe two licenses kicked down the road to allow for the likes of Tomakomai, Fukuoka, Aichi and Tokyo to enroll in the race. *Daniel Cheng is formerly the Senior Vice President of Development for Hard Rock International. He is the author of The Rainbow Upopo, a novel about the indigenous Ainu People in Japan.

Melco still committed to Japan, despite Yokohama blow

Lawmaker sentenced to four years in 500.com bribery case

Melco Resorts & Entertainment said it will continue to explore opportunities to develop an integrated resort in Japan after politics upended its efforts to obtain a license in Yokohama. The Macau operator formally announced that it was withdrawing from the Yokohama race and closing its office in the city. However, it will maintain a representative office in Tokyo. “For the past several years, we have worked with our partners to devise a superlative, world-class IR proposal that reflects the unique characteristics and culture of Yokohama and which would put the city on the global stage of tourism,” Melco Chairman and CEO Lawrence Ho said. “Melco has been working on the ground in Japan for over a decade. We firmly believe in the country’s longterm potential and remain committed to exploring opportunities to develop the world’s best integrated resort in Japan,” he said.

Japanese lawmaker, Tsukasa Akimoto, has been handed a four-year jail sentence and told to pay damages amounting to Y7.6 million ($69,000) for accepting bribes from a Chinese company seeking a casino license in Japan. Akimoto was found guilty of accepting payments from 500. com between September 2017 and February 2018. He was also found guilty of offering money to two former advisors in exchange for favorable court testimony in the case. Prosecutors had called on the Tokyo District Court to impose a sentence of 5 years. They accused Akimoto, a Liberal Democratic Party member, of undermining trust in the attempt to establish an IR industry in the country.In highly damaging testimony, former 500 .com adviser Katsunori Nakazato told the court he prepared a JPY3 million (US$27,300) cash bribe in the men’s toilet in the first floor of the House of Representatives office building by putting the cash in envelopes and hiding it in a bag filled with yokan, traditional Japanese red bean sweets.

Asia Gaming Briefings | October 2021

NORTH ASIA 40

RUSSIA

Primorye gets new investors, stalled projects resume The development of Russia’s Primorye gaming zone has taken a major step forward in recent months, with the announcement of two new investors planning integrated resorts in the area.

rimorye, which is located close to Vladivostok, is seen as the most promising of the country’s designated gambling zones. It has a low taxation base relative to many other jurisdictions around Asia and is within a four hour flight of North Asian source markets, such as China, Japan and Korea. During the pandemic, it has also fared surprisingly well, enjoying support from the local Russian market while international borders are closed. In early September, the Primorsky Territory Development Corp. announced that Russia’s Mantera Group has signed an accord to build a RUB14 billion ($192 million) integrated resort. The Mantera Group is a consortium of companies involved in the tourism and hotel industry. It is also developing a residential complex in the Krasnaya Polyana gaming zone in Sochi. Mantera signed the accord on Sept. 2. It intends to build the project within four years, with works expected to begin in 2022. “First of all, the project is aimed at increasing the inbound tourist flow from China, Japan and Korea, the countries within a four-hour flight radius and the market potential of one billion people,” said Dmitry Anfinogenov, director of sales at Mantera. “We already have experience in attracting foreign guests to the Krasnaya Polyana gambling zone – this is an excellent business basis for the next start.” Anfinogenov was a former director for development of the Krasnaya Polyana gambling zone in southern Russia. The casino will be built in Muravyinaya Bay on a 16-hectare plot. “We are pleased to welcome such a major investor as Mantera Group to Primorye, and we hope that the new casino is just the beginning of our great joint work on the development of the

Asia Gaming Briefings | October 2021

region,” said Olga Sun-zhayu, general director of the development corp. “With the participation of professionals in the tourism business, we are creating a new high-class resort, unique of its kind in the Far East.”

The announcement was the second in two weeks for the Primorye zone. The development corporation said a “major Russian investor” has agreed to spend at least 10.5 billion rubles ($142 million) to build a

NORTH ASIA 41

casino and entertainment complex. The corporation has not as yet named the investor, who has agreed to sublease three land plots. “The new resident chose one of the bestlocated sites – on a hill, practically at the entrance to the gambling zone,” said Sun-zhayu said. “In total, about 14 hectares are intended for construction. The company plans to create high-class entertainment facilities, using the rich experience of implementing such projects throughout Russia. Soon the investor will tell you more about his plans.” Under the terms of the signed investment agreement, the project will involve at least 300 hotel rooms of at least four-star quality. There will also be at least 500 units of gaming equipment. The development corporation is planning 12 casino complexes for the zone. The Primorye gambling zone is currently home to Summit Ascent’s Tigre de Cristal and Shambhala, which is owned by

a Russian businessman. NagaCorp, operator of Cambodia’s NagaWorld is constructing a resort, as are Russian companies Diamond Fortune and Primorye Gaming Group. Summit Ascent’s most recent results highlighted the benefits of having support from the local Russian market, which helped to support revenue in the absence of international travel. It posted a 35 percent gain in 1H21 revenue. The loss in the period narrowed to $131,000, from $47 million in the year-ago period. On an adjusted EBITDA level, the company returned to positive territory with $17.2 million compared with a loss in 2020. However, it said that for a return to growth in its premium mass and premium business, international travel will need to resume. NagaCorp’s Russia project has also resumed construction after the government helped the company find contractors. According to the developer, NagaCorp management has chosen a Russian contractor,

having concluded an agreement at the end of August 2021. However, due to the delays the opening will not take place next year. “The new general contractor has already begun preparations for the start of construction and installation work and is expected to start the main work this week. The contractor plans to carry out construction in the winter. The next stage of work will be completed next year,” said Executive Director of the Primorsky Territory Development Corporation Igor Trofimov. According to Trofimov, at the moment the company is looking for another contractor to perform work such as facade construction, stone and carpentry work, interior decoration, laying of engineering networks, exterior work and landscaping. To date, a total of 6.2 billion rubles ($84 million at the current exchange rate) out of 11 billion planned has been invested in the Naga Vladivostok facility as part of the first stage of the construction.

RUSSIA VISITOR ARRIVALS 35m 30m 25m 20m 15m 10m 5m

2Q09

2Q10

2Q11

2Q12

2Q13

2Q14

2Q15

2Q16

2Q17

2Q18

2Q19

2Q20

(Source: CEIC Data)

Completion of Primorye beach landscaping set for 2022 The Primorsky Krai Territory Development Corp. expects the landscaping of the beach in the gambling zone to be completed by 2022. In 2009 the beach area became part of the Primorye gambling zone project. The exact vision for the beach area is still under discussion and the corporation plans to meet with designers to discuss concepts that preserve the “dignity of the recreational zone, while making it more comfortable for vacationers.”

Online gambling clampdown targets payment services The Russian authorities are continuing their campaign to tighten their grip on online gambling, including a new law which will facilitate a crackdown on payment services. The Federal Tax Service (FTS) is taking the lead on many of the enforcement measures. Under the new legislation, the FTS can block the websites not only of illegal gambling and lottery websites themselves, but also the companies that provide them with financial services. All of this can be done without gaining judicial approval for specific enforcement actions. The new law also prohibits banks, payment agents, and telecom operators from entering into agreements with illegal casinos or with those who make related transfers.

Asia Gaming Briefings | October 2021

SUPPLIER SPECIAL REPORT 42

Bouncing back! Las Vegas will welcome one of the world’s largest gatherings of industry executives this month with the return of G2E.

he show runs from Oct. 4th to 7th and will kick off with an opening address from American Gaming Association President and CEO Bill Miller, who will reflect on gaming’s road to recovery. He will be followed up by Nevada Governor Steve Sisolak and U.S. Representative Dina Titus, who will speak on navigating Covid and the role of gaming across the state. “This year’s G2E reflects the resilience, innovation and leadership that’s propelled gaming forward,” Miller said. “We’re excited to welcome a robust lineup of the top names and brightest minds in this industry. These collective insights couldn’t be more important as we forge the path ahead after one of the most challenging years in gaming history.” Late last year, Wynn Resorts CEO Matt Maddox predicted the gaming industry would bounce back with a roaring twenties-style rebound and so far his prediction has proved correct. The industry in the U.S. is on track for a record year in 2021, fuelled by both the land-based and online industry.

Asia Gaming Briefings | October 2021

Maddox will be joining MGM Resorts CEO Bill Hornbuckle and Hard Rock International’s Jim Allen on the keynote stage on the first day of the show to discuss what will drive the industry as we go forward. As sports betting gains traction in the U.S., the show’s organizers have announced that Arizona Cardinals Owner Michael Bidwill will give the final keynote address. “The expansion of legal sports betting is deepening fan engagement and driving new business opportunities for sports leagues and teams,” Miller said. “I look forward to welcoming Michael to the G2E keynote stage to hear his unique perspective on the dynamic, evolving sports landscape.” All participants at the event will be required to show a vaccine certificate and wear face masks at the venue. In the following pages of our Supplier Special Report, we hear from many of the companies exhibiting at the show. They outline their new product lineups that will be displayed for review and fill us in on what they have been doing in the run-up to the return of live events.

SUPPLIER SPECIAL REPORT 43

WILD about WILDS?

5 Dragons Reign is the newest addition to the 5 Dragons dynasty and features STICKY WILDs with a Respin feature!

2021

Asia Gaming Briefings | October 2021

SUPPLIER SPECIAL REPORT 44 1XBET

Online or offline? Both!

he last couple of years have been challenging and turbulent for the entire world. Our lives began to change very rapidly, but not always for the worse- in many ways, it just became different. Many areas of our life (for example, work and communication) have migrated to the digital sphere - but at the same time, we began to appreciate more the parts that remained offline. 1xBet is one of those companies that quickly showed flexibility and adapted to new realities, all while remaining loyal to traditions. Representatives of the brand told us what steps they have taken in recent months to make it convenient for players and partners to communicate with the brand both online and offline. Digital innovations for players and partners Recently, the company completed work on an updated chatbot for players with Telegram, one of the most popular instant messengers in the

Offline activities for players 1xBet understands that digitalization has not yet reached a high level in all regions of the world. For example, not all players can use a credit card or an electronic wallet, and not

all have high-quality devices or stable internet for betting. To help such gamblers bet on their favourite athletes and earn with 1xBet, the company continues to expand its network of betting shops. Every month, the brand opens more betting shops - and many customers visit them. In addition, even those players who are used to betting from a smartphone still continue to come to such places for a memorable experience, atmosphere and communication with like-minded people. To make a trip to the betting shop a pleasant occasion for players, the company also regularly holds special events with the participation of world-famous stars. For example, in Cameroon, players could participate in a competition in their favourite betting shop and at the same time chat and take pictures with legendary football star Rigobert Song. Thus, thanks to fresh ideas for working offline and digital innovations, 1xBet manages to balance these two areas skillfully. With these plans implemented, the company supports its current partners and players, plus continues to find many new fans who want to cooperate and earn money with 1xBet. Flexibility, innovation and top-level service are the cornerstones on which the company’s business is built. With these values, the brand manages to grow and develop even in the most turbulent times.

Debuting at G2E is the Muso Dragon cabinet, featuring the Fu Jin Shu game series. The Muso Dragon creates a deeply themed bank, with proud dragons and lucky coins perched atop the game screens. Enveloping players in a sense of golden luck and luxury, the Muso Dragon is a perfect showcase for Asian themed titles. Improved flexibility is also a feature of the Muso Limited. This premium cabinet now allows for more baking options, with the pod configuration utilizing the Reflection pod package to provide added illumination. A standout series on the Muso Curve-43 Hybrid is X Wheel. Already a stellar performer in initial placements, the four titles on X Wheel are captivating players with two ways to trigger credit symbol collect features. The Coin Collector series takes a straightforward credit symbol collect feature, but on a 4x5 reel

set. This deceptively simple gameplay has already shown to be a new player favorite on the Muso Triple-27 Hybrid cabinet. At G2E 2021, Aruze solidifies its position as a company that redefines what gaming can be. For more information, visit booth# 2659 or aruzegaming.com.

world. The company understands that Telegram has, for many people, become not only a means of communication with friends but also a channel for communication with business partners and a source of news and other useful information. Therefore, for the convenience of players, 1xBet has completely updated its chatbot in Telegram, @bot1xbetBot, in which players can now: • Register and log in to 1xBet; • Link their cards and replenish their game accounts; • Quickly find any event in the massive range of markets; • Place a bet in just a couple of clicks; • Find the actual link to the site; • Download the 1xBet app; • Get some cool branded stickers! As for partners, for their convenience, 1xBet maintains Telegram channels in which partners have the opportunity to constantly receive all relevant promotional materials. Thus, affiliates don’t even need to log into their affiliate account or request materials from a personal manager - everything they need will always be at their fingertips.

ARUZE

Redefining the game

ruze Gaming once again demonstrates its unique strength for delivering the most inventive products to the global casino gaming industry. Aruze has taken a familiar game and reimagined it in a way that creates an entirely new experience. In Go Go Claw Cash Grab, players use a physical claw to attempt to place one of the prize balls in the collection bin. All prize balls are worth the same amount, determined by the Prize Selection at the start of the game. Go Go Claw captures the attention of all who encounter it. Roll to Win Craps generates a similar reaction, creating a focal point. Improved reporting and a variety of options for dealer tipping now enhance this hybrid Electronic Table Game. The over 60 casinos now operating Roll to Win Craps have benefited from the 2x rolls per hour and dramatic labor savings the table can provide.

Asia Gaming Briefings | October 2021

SUPPLIER SPECIAL REPORT 45 ARISTOCRAT

Ready to play

ristocrat Gaming is the clear leader in innovative hardware, games, and customer experience solutions that perform for its customers and help to create memorable gaming experiences for their guests. Now at G2E 2021, Aristocrat will introduce the next evolution of premium products designed to drive market growth through innovation and player engagement. At G2E, Aristocrat will show a vast array of new games, including next-generation evolutions of proven game families such as Mighty Cash Ultra 88, and Gold Stacks 88 and new innovations like Jackpot Catcher, Triple Supreme, and Wild Fireball Rumble. Aristocrat will also show new innovations to player-favorite brands such as Mighty Cash, Buffalo, Gold Stacks 88, Baby Choy, Mr. Cashman, Make That Cash, and more. Core stepper players everywhere love Aristocrat’s RELM and new RELM 5 Reel, and Aristocrat is expanding the game library with new games such as Make That Cash Sensational Stars, Jackpot Hits Red Flame Inferno, Jackpot Hits Sunrise Riches & Twilight Treasures and Gold Stacks 88 Prosperity Pig. Building on its success in high-denom

rooms, Aristocrat will display new products designed for high-limit players with video games including Buffalo High Limit, Pompeii High Limit, and Win Line and new stepper titles including Make That Cash, Wild Wild Wild, Jackpot Hits, and Wheel Max. The most popular game in North America is a focal point at casinos from coast to coast and the instantly legendary Buffalo Link will be a focal point at G2E as well, standing tall amongst other recently released player favorites including Wild Wild Buffalo and Timber Wolf Diamond. Find Aristocrat at booth #1133 The all-new adventure of Game of Thrones™ Kings Landing will be in the booth, shining like oracles of what’s to come from Aristocrat – new titles that will be revealed only when the curtain rises at Aristocrat’s booth. VGT Class II Innovations by Aristocrat Gaming brings recognizable, high-performing Class II-only content on superior hardware combined with top trending features and mechanics. At G2E, Aristocrat will unveil a new Class II MarsX Portrait with a launch title that is available only in Class II. Additionally, Aristocrat will show Class II exclusives, such as Hunt For El

Dorado™, Silver Dollar Shoot Out™, and a new Buffalo™ game created exclusively for Class II. Additionally, the RELM XL™ cabinet brings new MSP versions of Polar High Roller®, Lucky Ducky®, Hot Red Ruby®, and Polar Riches®. And if that weren’t enough, Aristocrat will unveil a new version of the global sensation Lightning Link™ for Class II. For specialty markets, Aristocrat will debut a new line of games built specifically for Washington with upgraded math and new hardware, and the company will showcase innovations for growing markets, such as Historical Horse Racing and VLT with high-performing games and unique hardware.

FLIGHT (Indonesia), International Animal Rescue (UK), International Rhino Foundation (USA), Phoenix Fund (Russia), Rottnest Foundation (Australia), and Toucan Rescue Ranch (Costa Rica). From different countries and areas, they focus on conservation of diverse animals and

natural habitats, holding a variety of fundraising events and activities. With their efforts and your support, it would be possible for the Earth to reach the goal of sustainable development. Go immediately to the campaign page: www. tgbcharity.com/Event/Love-For-All-Kinds-21

BBIN

Love For All Kinds

hrough TGB’s official website, BBIN’s subsidiary TGB Charity recently launched the wildlife-advocacy campaign, Love For All Kinds, which creates a charitable fundraising platform for NGOs that care for endangered animals, wildlife and biodiversity. TGB Charity provides the best opportunity for various NGOs to demonstrate their missions and events, connecting NGOs with potential donors to further support their work. BBIN, a leading iGaming software supplier in Asia, has actively collaborated with many significant charity organizations since 2018. TGB Charity’s efforts have inspired many people to participate in philanthropy. This year, BBIN & TGB Charity drew people’s attention to the other creatures that share the same planet with human beings. Destroying the ecological balance may lead nature to a counterattack that causes tremendous damage for humans. The consequences remind us that we have to live in peace with other animals. In Love For All Kinds, TGB Charity introduces the general public to six animal charities, including

Asia Gaming Briefings | October 2021

SUPPLIER SPECIAL REPORT 46 BETCONSTRUCT

Defining the winning formula

etConstruct travels to major exhibitions -SBC Summit Barcelona, iGB Live! and G2E Vegas -- with a set of its cutting-edge solutions and products under the Winning Formula campaign. What is a winning formula? The company’s CEO and Founder Vigen Badalyan believes it is different for every operator. At the same time he’s a hundred percent certain that, regardless of the size of the business and other factors, every operator can generate one exceptional formula for their business with the help of BetConstruct. “Winning Formula is not a one-size-fits-all equation. The variables are different and so are the constants,” says Badalyan. “When we started, it took us - first, as an operator and only later as a technology supplier - an unmatched ambition and use of trial and error to make it through. We’ve built what the players loved and built everything in-house holding the quality bar up high. That was our winning formula.” For years BetConstruct has been perfecting the components that comprise a winning formula. It’s the sports betting offer with bespoke odds, additional data products, UI/UX designing and customizing tools and other services. It’s the casino

platform that includes 8,000+ games, slots and RNG type, accompanied by a selection of bonus systems and tournament designing tools for operators to attract and retain more players. In view of lockdowns, the land-based development branch was in no way neglected. BetConstruct pushed its Cashier Client application by integrating more products, namely Live Casino games and Virtual Sports, as well as launched Betwallet for

a more comprehensive and organised experience for the visitors of betshops. “Like a Lego model,” continues Badalyan, “our solutions are provided in a variety of colours, languages, modes, so that any operator can mix and match and choose from our selection as well as the portfolio of integrated products from 130+ third party providers. Technology-wise, we are ready for everything.”

COMTRADE

Comtrade enters U.S. with G3 esports partnership

omtrade Gaming, a leading provider of online gaming technology, announces a partnership with G3 Esports, marking the company’s first entry into the U.S. The deal will see them providing G3 Esports with Comtrade’s iGaming Platform – iCore and backend technology for G3’s upcoming betting product aimed at gamers. “When choosing partners for our forthcoming Esports platform, it was critical to find

Asia Gaming Briefings | October 2021

organizations that understand what is required to safely and responsibly operate a regulatorycompliant platform,” said Anthony Gaud, G3 Esports CEO. “Comtrade’s expertise in the online gaming industry is unmatched and we’re very excited to work with them to build a first-of-its-class offering for esports wagering.” Comtrade Gaming delivers value-driven technology solutions. iCore is one of the leading iGaming Platforms already used by the world’s

largest gaming companies. Expanding to the American market is a huge milestone for Comtrade Gaming. Once launched, G3’s new wagering platform will leverage Comtrade’s enterprise-level services, such as player account management, real-time bonusing, dynamic segmentation, real-time push messaging and many more player engagement tools. “We are absolutely thrilled to be working with G3 Esports and providing their igaming platform” said Steven Valentine, Chief Commercial officer, Comtrade Gaming. “It’s very rare to find something truly new and unique in the gambling space but the proprietary esports content that G3 are creating combined with how it will engage with players is absolutely breaking new ground. They have assembled a team of leading experts in many fields and we are very proud that this is our first platform partnership in the USA. At Comtrade we specialise in igaming platform technology for leading operators where player retention and lifetime value is key. This allows our operators to focus their efforts on marketing, knowing that their backend technology is all taken care of.

SUPPLIER SPECIAL REPORT 47 CONTINENT 8

Strengthening cloud offerings

ontinent 8 Technologies has achieved Microsoft Silver Partner status as part of the Microsoft Partnership Network programme, allowing it to further strengthen its cloud offering to operators and suppliers in the industry. The network allows for companies to undergo various tests and close scrutiny to ascertain their ability to deliver high-quality software, solutions and support based on Microsoft technologies. Continent 8 has achieved Silver Partner status for two competencies: Datacentre and Application Development. To achieve this status, the company completed official training tracks and exams, as well as having to meet various performance requirements. In obtaining Silver Partner status, Continent 8 is now considered part of a group of Partner Network members that have “proven expertise in delivering quality solutions”, according to Microsoft. As a result, Continent 8 will augment its existing cloud offering with Microsoft Azure Stack, initially offering Azure Stack HCI. This will allow partners to refresh their virtualisation host using a hybrid and hyperconverged solution

integrated with Azure. The solution will be live in the coming weeks. This strategic partnership forms part of Continent 8’s commitment to be the leading multi-cloud solutions provider to the global gambling industry, which comprises its Public and Private cloud offerings globally, as well as hyperscale solutions. Justin Cosnett, Chief Product Officer at Continent 8 Technologies, said: “Our cloud offering continues to develop, and I’m delighted that Continent 8 has joined the Microsoft Partner

Network having achieved Silver Partner status. “A big thank you to the team involved in obtaining this accreditation. The certification acknowledges our proven expertise in delivering quality cloud solutions to our customers.” Michael Tobin, Founder and CEO of Continent 8 Technologies, added: “Achieving Silver Partner status with Microsoft is a strategic step for Continent 8 and forms part of continued efforts to be the leading multicloud solutions provider to organisations in the global gambling industry.”

DIGITAIN

Rewarding innovation and creativity

igitain is delighted to announce that we have won Best Land-Based Industry Supplier at the Ukrainian Gaming Week Awards in Kiev. The prestigious UGW Awards recognise the betting and gaming companies operating in the region that have achieved the greatest success and shown substantial growth in the last year.

Lilit Azatyan, Digitain’s Head of B2B Marketing Department commented, “We are delighted to be recognised by the prestigious UGW Awards for the high standards of our Land-Based Sports Betting and Gaming products. After such a challenging year, we really appreciate that the professionalism of the Digitain teams, responsible for our

products and platform, has been honoured in this way. The award is a recognition of the ongoing innovation and creativity of the sportsbook and gaming solutions delivered by the teams here at Digitain and we thank them for their hard work and enthusiasm, as well as the Ukrainian Gaming Week awards for this fantastic honour.” The Ukraine award adds to the company’s accolades, after having won Sports Betting Platform of the Year at the prestigious International Gaming Awards, held at the Savoy Hotel in London on the 8th of September. The International Gaming Awards are supported and enhanced by well renowned industry insiders as well as gaming clients from all tiers of the gaming world. “We are delighted to be recognised by the IGA for the high standard of our Sports Betting Platform. It is a recognition of the ongoing innovation and creativity of the sportsbook solutions delivered by the teams here at Digitain and we thank them for their hard work and enthusiasm, as well as IGA for this wonderful honour,” Azatyan said.

Asia Gaming Briefings | October 2021

SUPPLIER SPECIAL REPORT 48 DELASPORT

Adapting and evolving in shifting world

elasport is an internationally known iGaming software company, providing development, support & maintenance of Sports Betting & Online Casino Software & B2B Solutions for gaming operators. In these challenging times, with the ongoing fight against COVID-19 in most nations, Delasport stands its ground, remaining truly committed to providing the best iGaming products for its partners and friends.

We hold firm in our ability to adapt, evolve, and offer a plethora of products and services assuring viable revenue growth even with the ever-shifting needs in the iGaming world. Our constant efforts have enabled us to provide some of the most innovative solutions in the industry, and we continue to push the limits knowing that thanks to this our partners can stay ahead of the curve with ease.

FBM

Xtreme vision for the slots of the future

BM is launching FBM Xtreme – a new brand that expresses the ambition of the land-based slots segment! After a few years developing spin reel games for different markets across the world, FBM wants to reinforce the commitment with this specific game type by launching FBM Xtreme – a brand that personalizes its vision to develop the slots of the future. The first chapters of FBM´s history in the casino industry are deeply connected with bingo games. Nowadays video bingo is still the highest-profile game type for FBM, as it is the leader in different markets. A few years ago, the brand started its slots adventure and, since then, it has developed several titles and product lines – Ways, Easy$Link and Multi-Game. Rui Francisco, FBM´s founder, explains the reason behind the creation of FBM Xtreme.

Asia Gaming Briefings | October 2021

“We are a full solution provider performing in the casino industry for more than 20 years with success. After expanding FBM´s video bingo footprint in different geographies with an innovative approach, we intend to build a similar legacy in the slots segment. This vanguardist, futurist, evolutionist and bold vision that we have for the slots products is the reason behind the creation of the FBM Xtreme brand”, affirms the FBM founder. FBM Xtreme wants to transfer four main pillars from its brand to the product: future, evolution, vanguard, boldness. The FBM Xtreme brand will be visible in all the slots games developed by FBM for the landbased universe. The casino cabinets will also have an appointment referring to this new brand. The slots segment is a priority for FBM in 2021, and the Multi-Game expansion in several markets is the proof of this commitment.

EVOLUTION

Raising the return to players

volution has launched Cash or Crash, a unique online live game show in which players take off on an augmented reality blimp ride and aim to soar high over a metropolis and with the possibility to win up to 50,000x. According to Evolution, the 99.6 percent RTP (Return To Player) game is one of the most generous, player-friendly games ever offered in gaming. Cash or Crash is an immersive game show that requires strategy from the players. In this game there are red and green balls with one special gold ball. A single ball is drawn and if it isn’t red then the player is offered money, which they may take and cash out, take half and keep going, or continue and keep going for bigger prizes, which go all the way up to 50,000x. Players must cash out before a red ball is drawn or the blimp crashes and they lose. There is also a gold ball, which acts as a shield protecting players from the next red ball and increases payouts. A strategic element to the game puts players in control. After a green ball is drawn or after a gold ball shield is broken, players can choose to ‘Continue’, ‘Take Half ’ their winnings and continue with the remaining 50 percent, or ‘Take All’ and cash out all of their winnings and finish their participation in the game round. Todd Haushalter, Chief Product Officer at Evolution, said: “This year we have chosen to introduce more decision-making and strategy into our game shows to expand the space to a wider and new audience. This is not just a strategy game, but it is a skill-based game and at that it is the most generous game players have ever seen online. It has a 99.6 percent payback rate when played optimally and furthermore, with 20 balls advancing players and just 8 red balls, players will have the chance to cash out with a profit 71 percent of the time on average, which is largely unheard of. There are no side bets and no complexity. It’s just a pure gambling experience that keeps you on the edge of your seat.”

SUPPLIER SPECIAL REPORT 49 GARY PLATT

Seating for longer stays

nywhere and everywhere a guest may go on property – the casino, hospitality areas, or their guest room office space – Gary Platt Manufacturing has unsurpassed seating solutions that make guests more comfortable and want to stay and play longer. At G2E Gary Platt will showcase new and classic models, each of which is hand-crafted to perfection by Gary Platt’s teams of artisans. Leading the way is the all-new Gary Platt

Collection for Resorts World. Designed for Las Vegas’ newest resort, the modern pieces in the Resorts World Collection are now available to casinos everywhere, and each model is completely customizable to reflect each individual property’s unique brand. First in the collection is the Aurora, a cuttingedge model that ushers in the dawn of a new age in comfort and design. Its ingenious design features a player-adjustable pedestal base, round footrest, rear seat vent, and a quick-change seat. The Aurora’s deliberately modest arms gently surround players, and the chair back is covered in custom-designed upholstery. The new Dakota, Ezra, and Zephyr models are also included in Gary Platt’s Collection for Resorts World. The Dakota model features a player-adjustable pedestal base, Gary Platt’s signature Epic footrest, and a quick-change seat. Next, the Ezra model features an extended arm, round tapered legs made from authentic wood, gold stretchers and sabots, and a quick-change seat. Lastly, the revolutionary Zephyr model, designed especially for Baccarat players, features

subtle ergonomics that comfortably position the player to naturally lean forward. Sportsbook fans will relax in the comfort of Gary Platt’s Sportsbook Club model with modern amenities including USB ports and electrical outlets that give Resorts World customers the technology difference they expect. Gary Platt’s expanded G2E experience includes an entire exhibit dedicated solely to their new and expansive line for hospitality seating. The Sierra Nevada Hospitality line includes the new Forum model, which was initially created for Caesars Forum. The Sierra Nevada Hospitality line features more than 100 different chairs for a wide variety of needs across the operation, including bars, dining, and banquet/convention spaces. Also on display is Gary Platt’s new Maximus office-style chair. Specifically designed for larger users, the Maximus is BIFMA x 5.11 certified for large occupant seating and passes BIFMA testing up to 500 pounds. Gary Platt provides guests with the comfort they want and deserve. Experience unsurpassed comfort at G2E booths #2618 and #2820.

GLI

Meeting the regulatory challenge

ompliance is the heart of what Gaming Laboratories International does for suppliers, regulators, and operators, all over the world. In more than 480 jurisdictions, suppliers, regulators, and operators turn to GLI for help in overcoming their compliance challenges in the areas of land-based gaming, iGaming, lottery, and cybersecurity. GLI’s compliance offerings consist of four overarching categories that help clients wherever they are on their journey: regulatory compliance, technical compliance, end-toend testing, and full lifecycle compliance, and its cybersecurity services protect operators, regulators, and suppliers across each compliance category. GLI advises on many different parts of the compliance journey for existing and emerging jurisdictions regarding both existing and emerging technologies. Regardless of when and where in the world those projects might happen, or if GLI’s clients need one thing or many, their needs are intertwined, and GLI is the best partner for all of those integrated needs. The company helps clients leverage its decades of experience to help them achieve

their goals—no matter how big or small, or how unique the challenge. GLI aims to be the first call every time and is committed to its clients’ success from beginning to end and every stage in between. GLI’s global expert team of advisors are here to serve its clients during every stage of the gaming and regulatory process. Additionally, with many jurisdictions requiring responsible gaming due diligence and other compliance-related issues such as recertification, ongoing auditing, AML compliance, GLI offers robust solutions to help its clients maintain and understand ongoing compliance obligations. The GLI global team is always preparing for what’s next, with experts on the ground around the world, in terms of technology and cybersecurity. No matter the market or geography, GLI provides the intelligent insights needed to help its clients to get where they want and need to be. Throughout the process, GLI helps mitigate risk, enabling clients to stay focused on the future. To meet continually increasing demand, GLI recently boosted its staffing levels in its

labs, adding more than 100 team members overall, so GLI is better equipped than any other lab to meet the challenge – from precompliance to market launch, sports betting to iGaming – anywhere in the world. Visit the GLI team at G2E at booth #4430.

Asia Gaming Briefings | October 2021

SUPPLIER SPECIAL REPORT 50 HABANERO

Flying away from mature themes

ith people around the world finally enjoying the freedom that they sacrificed for the past 18 months, we made sure to build a backlog of innovative content that would assist in the retention of players from both online and those who migrated from land-based spaces. However, with game design playing as big of a role as ever in attracting new players, we have made sure to develop a collection of games that perform just as strongly as they look aesthetically. It’s essential to strike the right balance! As always, content is king, and simply reskinning a successful series or popular mechanic is no longer enough to attract new players. Which is exactly why we have broken from our usual tradition of providing games with mature themes in a bid to display the versatility and flexibility of our offering. The recently launched, fully animated title Fly! takes players on an adventure through

cotton candy clouds and playful surroundings to deliver a 5x5, highly volatile slot filled with ground-breaking mechanics, eye-catching visuals and huge win potential! Inspired by innocent fun, Fly! keeps players in high spirits with its cascading symbols and guaranteed Free Games feature that is triggered every 160 paid spins. Our recently acquired MGA licence means the game will be offered to an ever-growing operator network which stretches across a wealth of European and Latin American markets. We’ve also impressed audiences with the recent hit Mystic Fortune Deluxe, which requires players to navigate their ethereal environment to unlock exclusive prizes. Marking a decisive move from the more mature themes of previous Habanero releases, these titles have been designed to cater to wider audiences and allow players to embrace their

IGT

JADE

Raising the eSabong bar

“It’s Game Time!”

nternational Game Technology will be appearing in Las Vegas with the theme, “it’s Game Time.” It will feature performance-tested solutions that are attuned to player preferences of today and market opportunities of the future. The company will also leverage the three-day event to unveil two new form factors, the DiamondRS cabinet and the Peak65 cabinet, which will feature a new Wheel of Fortune theme as part of the Company’s 25th anniversary celebration of Wheel of Fortune Slots. IGT’s partnership with Sony Pictures Television on Wheel of Fortune Slots set a landmark precedent in gaming. For 25 years, the strength of the Wheel of Fortune brand and widespread appeal of the game have set the standard for how licensed brands can translate into compelling slot themes. “IGT’s G2E 2021 theme ‘It’s Game Time!’ celebrates our excitement for the gaming industry to reconvene and our opportunity to demonstrate compelling, future-forward solutions that engage and entertain players and meet the needs of the evolving gaming industry,” said Renato Ascoli, IGT CEO Global Gaming. “IGT’s research-backed G2E portfolio is anchored in next-generation games and cabinets, never-before-seen innovations such as the DiamondRS cabinet and growth-

Asia Gaming Briefings | October 2021

fantasies, demonstrating the versatility of our game design team. So, whether you’re looking for a gritty playing experience, or a more light-hearted, fast-paced gaming experience, Habanero has got your back.

driving products such as the Resort Wallet with IGTPay cashless gaming solutions.” “G2E 2021 provides a prime platform for IGT PlayDigital to showcase its digital and sports betting innovations and illuminate how our solutions for these fast-growing segments can deliver incremental growth and complement land-based gaming enterprises,” said Enrico Drago, IGT CEO Digital & Betting. “IGT continues to evolve our PlaySports solution with new platform and self-service betting features, and we continuously expand our PlayCasino library with in-demand omnichannel games and compelling business analytics tools.” IGT can be found at booth #3659.

t’s no secret that the thrill of cockfights (or sabong, as we know it), lies in the energy that fills an arena, with the sound of the crowd cheering and standing on the edge, waiting to find out what luck lies ahead. Things have been different though, as the pandemic put the world on hold, but that didn’t stop Jade Entertainment and Gaming Technologies, Inc. in finding ways to keep the same exhilaration for sabong, which brought about the recent launch of Jade Sabong last September 7, 2021. Jade Sabong is a rising success, being one of the 5 licensed operators in the Philippines, which raises the bar as they become the only multinational Gaming company based in the Philippines that is off to a great start. With a kickoff event in Bicol, moving to different provinces in Luzon, then soon a nationwide scope of fights that can all be accessible online. Apart from the usual cockfights that are presented by others, Jade Sabong is a cut above the rest in terms of gaming offers, player-centric entertainment, and a system that offers bonus credits upon registration and is the only one in the market to offer both jackpots and cash out, which is an experience that puts Jade Sabong at the top of their game. Jade offers both Online Sports Betting via www.jadesportsbet.com and Online e-Sabong via www.jadesabong.com.

SUPPLIER SPECIAL REPORT 51 JCM

Automating the count room

CM Global’s (JCM) new and innovative ICB ASAP is the biggest technological advancement to come to the count room since JCM first introduced its ICB system to the industry more than a decade ago. ICB ASAP is an acronym for Intelligent Cash Box with Automated Secure Asset Processing, and it automates the count room, dramatically enhancing productivity in four crucial areas: reducing human contact, strengthening security, improving throughput, and increasing reliability. It’s the reduction of human contact that makes ICB ASAP particularly valuable at this time of pandemic. It is not unusual for the average count room to be crowded with as many as 20 to 30 people, counting and processing banknotes of all denominations. ICB ASAP allows count teams to maintain social distancing and reduce the number of

staff in the count room. Staff can be reassigned because ICB ASAP effectively does the repetitive movement tasks instead of humans, making it an ideal choice during and post pandemic. ICB ASAP features a network of four robots and industry-standard automation devices performing repetitive tasks that are necessary but physically demanding for humans. It reduces the number of employees handling cash box contents and helps the casino meet social distancing requirements. ICB ASAP also enhances security with time and date stamps and secured cash box keys, effectively reducing the risk of theft. It accommodates JCM’s UBA and iVIZION cash boxes and processes up to 240 cash boxes per hour. ICB ASAP processes up to 4,000 bank notes/TITO tickets per minute, almost twice as fast as the highest speed count sort machines, meaning count sort processes can

be accomplished significantly faster. Conveyor preloading ability means there is never down time during the normal count process. Its components are field proven, industrial grade, and designed to run around the clock.

KONAMI

DIMENSION cabinets make debut

onami Gaming has announced a competitive lineup of premium slot entertainment, core game releases, and casino systems technology premiering at the Global Gaming Expo. From fresh DIMENSION cabinet formats to new SYNKROS features, Konami is focused on adding greater value to proven successful innovations, to drive reliable gains within the industry. Gaming executives and professionals at this year’s event can see award-winning SYNKROS features such as SYNK31 Title 31/Anti-Money Laundering (AML) and technology such as cashless wagering and TITO support at games; cardless login by player phone number, QR code, and/or Near Field Communication (NFC); new Konetic employee mobile features such as Jackpot processing, and more. And building upon the success if its award-winning DIMENSION slot cabinet series, Konami is marking the G2E debut of its top popular DIMENSION 49 portrait cabinet, DIMENSION 27 stacked screen cabinet, and additional, never-before-seen premium machines. “Konami is delivering winning developments to the casino floor in the immediate months and years ahead, in an effort to achieve meaningful gains for operators and continuous advancement for our industry as a whole,” said Tom Jingoli, executive vice president & chief operating officer at Konami Gaming, Inc. “From expanded SYNKROS contactless technology to new DIMENSION premium formats, Konami is adding even greater

value to what is proven successful in the space.” New DIMENSION cabinets are arriving at G2E Las Vegas for the first time—all of which include the same sheen silver finish, relaxed slant top, dual spin buttons, dual cupholders, and wired and wireless phone chargers featured in the original award-winning DIMENSION 49J. “Our expanded line of DIMENSION cabinets has helped launch some of the industry’s most popular new slots,” said Jingoli. “With series such as Treasure Ball Duo Luck, Panda Power, Celestial Riches Eclipse, Bull Blitz, and more soon to be added, we’ve only just begun exploring the DIMENSION line’s potential.” Similar to Konami’s popular All Aboard, Bull Blitz is arriving to G2E Las Vegas following demonstrated success in the Australian market. The slot series is featured on DIMENSION 49J during G2E 2021, along with Lucky Envelope—an entirely new premium linked progressive inspired by the gift giving tradition common in Chinese culture. In addition, a new premium licensed series premieres at Konami’s 2021 exhibit with the G2E debut of BattleBots slots, based on the popular robot combat sport and reality TV show broadcast in over 150 countries. The world’s first BattleBots themed slots are displayed throughout the show on DIMENSION 49J with custom sign display options. Attendees are encouraged to visit booth #1256.

Asia Gaming Briefings | October 2021

SUPPLIER SPECIAL REPORT 52 NOVOMATIC

Voodoo Magic conjures players excitement

t’s raining jackpots! A new THUNDER CASH Link progressive game, Voodoo Magic will enhance the popular multi-level jackpot offering and give operators a new theme to add to the already exciting link. Using the new Signature Tower Design, the beautiful Voodoo Priestess comes alive with the magic of the bayou. Feel wonderfully witchy-wild and win magic rewards. For the Ultra entertainment experience, NOVOMATIC Americas will launch the ULTRA BOOST Link progressive, giving a new boost to the popular lock and spin feature. This family of games has three exciting titles to raise your jackpot winnings! Visitors can also see the game that has remained #1 or #2 on the Eilers Report small supplier list since July 2019. Always sweet, the MONEY PARTY Link, with Fruity Fruity and Juicy Juicy themes, has made quite a fruitful splash on US gaming floors nationwide. NOVOMATIC has also released several stunning families of stand-alone progressive

titles. The attractive mix of games, including Eternal Mandarin Ducks, Royal Crane and, Noble Peacock progressives available on multiple cabinets. This ensures flexibility for operators and attracts a wide range of players. Leveraging the success of the Dancing Series of games, enter the Dancing Tiger Gold and Dancing Lantern Gold. With its desirable rising lantern jackpot mechanics and entertaining trigger features, these games will keep players laughing and playing while their jackpot totals pays. If you like Mythology jackpot madness, play the Mythological Creatures family of games, with the Mighty Minotaur and Enchanted Pegasus paying Power Prizes galore. The JI DENG GAO ZHAO Link has so much player appeal! Shown on the Signature Tower, with two themes available, the enchanting Foo Baby, Jade Dragon and smiling Happy, Lucky Cats watch over you and bring much luck and prosperity to all who play Lucky Rick Meitzler, CEO and President of

NOVOMATIC Americas, says: “To be successful, we needed products that deliver long term customer value. G2E is the biggest stage to present our best. We have focused on diversifying our progressive offering. Voodoo Magic and Charming Lady’s Boom our new THUNDER CASH™ Link progressive themes allow our customers to expand the popular brand on their floors. We look forward to the launch of our new sports betting kiosk, the NOVOMATIC ActionBoo Mini. It will change the sports betting kiosk landscape.”

PLAY’N GO

Tis the season to be thrilled

ove it or hate it, Halloween has arguably become one of the most enjoyable holidays of the year. Why? It’s the one day where you can dress up as your favourite character, and you won’t hear boo (well, you might). A time for reruns of classic ‘80s slashers and fireside ghost stories; and an awesome theme

Asia Gaming Briefings | October 2021

for iGaming too. A theme that can be taken in many different directions, Halloween is a great opportunity to explore darker narratives, characters and visuals. September saw slots that were a little more on the spooky side as we geared up for Halloween. Here’s a taste.

Fans of ‘80s horror movies are in for a treat (or trick) with The Wild Class which is set in a haunted amusement park with the full moon ever-present. Inspired by Teen Wolf, the characters take on the classic aesthetic of movie senior grads in the ‘80s: the cheerleader, the football captain, and the bookish student – but trust us, these are anything but your typical university students. Ghost of Dead is sure to send a shiver down your spine. Ancient Egyptians believed that, in death, vitality and soul combine to create the spirit Akh, who can take on any form and is free to roam the world. Players of the Dead Series will see familiarities throughout the game. It’s worth mentioning that this is a game with huge potential as players can win up to x10000 their bet. Then we have a Jekyll and Hyde scenario with Dr Toonz. This Dynamic Payways game shows the origins of Reactoonz. Shunned by the scientific community, Dr Toonz chose the vibrant life that his creations ensue and as the great philosopher Aristotle said, ‘There is no great genius without a mixture of madness.’ The scares don’t stop there. Keep your eye out this October as we have plenty more games on the horizon that explore the spookier side of slots – watch this space.

SUPPLIER SPECIAL REPORT 53 PRAGMATIC PLAY

Pragmatic gives back to community with $47K in donations

ragmatic Play, a leading content provider to the igaming industry, has recently donated more than EUR40,000 ($47,000) to charities and non-profit organizations in Malta, Gibraltar and Romania, saying it always strives to give back to the local communities where it is based. The following are some recent initiatives. Homeless Animal Hospital (Romania) After a previous contribution, Pragmatic Play gave a further donation of €7,000 to the team at the Homeless Animal Hospital just outside Bucharest, Romania. The team there does immense work in caring for and providing medical treatment to homeless animals that do not have anyone to look after them. Representatives from Pragmatic Play saw first-hand, how a small amount of love and affection goes such a long way in giving these animals a better quality of life.

ANAIS Association (Romania) The ANAIS association was founded at the end of 2011, with its main purpose being to promote, respect and defend the rights of abused women, children, and young people. Pragmatic Play recently donated the amount of €10,000 to this incredible association. The Anais Association’s team was so generous to offer in return for the ladies at Pragmatic Play, an information and education workshop to prevent and combat violence against women. Pragmatic Play hopes their donation can assist the ANAIS organisation in their fight both at local and national levels of government to have the rights of women prioritised. Step Up For Parkinson’s (Malta) Pragmatic Play was delighted to visit the Step Up For Parkinson’s team at their centre in Malta. The team there does terrific work in raising awareness for and supporting those who suffer from the effects of Parkinson’s disease in their lives. One innovative approach the team uses is to host free specialized movement classes for sufferers of the disease. These classes involve light exercise, dance and general movement for the group, creating a feel-good factor and plenty of smiling faces in the room! Pragmatic Play donated €5,000 to the foundation in the hope it can bring a better quality of life to all those affected by Parkinson’s in the local community. YMCA (Malta) Pragmatic Play recently supported the YMCA Malta, an NGO that offers shelter and

other services to the homeless and socially disadvantaged community, by making a €10,000 donation. Offering a spectrum of services to the underprivileged, including opportunities to help find work, food schemes, counselling services and so much more, YMCA Malta is at the forefront of assisting and reintegrating the homeless community in Malta. Julian Jarvis, Pragmatic Play Chief Executive Officer, said: “The past 18 months have been a leveller for people from all walks of life, but none have suffered more than the homeless community. “With mental health being put in sharper focus than ever before, YMCA Malta is a fitting destination for our donation, appreciated for the wide range of services they provide to disadvantaged people.” Calpe House (Gibraltar) Pragmatic Play teamed up within Calpe House in Gibraltar and donated £11,000 to the team there. Calpe House provide accommodation and support for patients and escorts sent to the UK under the Gibraltar Health Authority. Pragmatic’s donation will be used by Calpe House to build a dedicated business suite at their premises at 19-23 Norfolk Square, London. The business suite will allow sponsored patients and/or their escorts to have a space in which to carry out remote working whilst they are away from Gibraltar. As a digital business, enabling remote working and tech capabilities very much aligns with the values of Pragmatic Play.

SPORTRADAR

Adding star power with Michael Jordan board appointment

portradar has announced that NBA legend Michael Jordan will serve as a special advisor to the board of directors and will also increase his investment in the company, effective immediately. “Not only is Michael Jordan one of the most iconic sports figures of all time, but he is a legendary leader who believes in Sportradar’s mission to enhance fan engagement through our fully-integrated technology and services platform,” said Jeffery Yabuki, Sportradar’s Chairman of the Global Board of Directors. “We are thrilled to have Michael contribute to Sportradar’s business efforts moving forward.” Sportradar, which provides sports betting

and sports entertainment products, made its market debut on NASDAQ on Sept. 14th. The company didn’t provide any details on Jordan’s initial or increased investment. In his new advisory position, Jordan will provide the board and management with guidance and strategic counsel, with a focus on the US market, product development, marketing activities and other key business initiatives. “I invested in Sportradar years ago because I believed in the vision and passion that Carsten (Koerl) and the rest of the team had for transforming the sports technology industry,” said Michael Jordan. “I am looking forward

to having a formal role with the company as it begins its next chapter.” “Over the past several years, the worlds of fandom, sports betting, and media have converged and, through his accomplishments on the court and in the boardroom, Michael sits at the intersection of these industries,” said Carsten Koerl, Global CEO, Sportradar. “As an early investor in Sportradar, Michael saw the potential in our company. We are thrilled to now tap into his entrepreneurial savvy and business acumen as we develop the next wave of solutions and offerings that will maximize engagement across sports.”

Asia Gaming Briefings | October 2021

SUPPLIER SPECIAL REPORT 54 SCIENTIFIC GAMES

Tackling the future of gaming

he future is on display at this year’s expo, showcasing the company’s industryleading products, systems and technologies that players and partners love across gaming, iGaming and sports. “Excitement has been building for months now as our teams crafted a product lineup to showcase this year at G2E,” said Barry Cottle, President and CEO at Scientific Games. “After months of virtual gatherings, we’re ready to get together safely, and to show everyone what we’ve been working on. This is truly a dynamic moment for the industry and for our company as we’re progressing rapidly in our strategy and our vision to become the leading cross-platform global game company.” Scientific Games continually captivates the player as a collaborative team of creators that turn every extraordinary game into an expansive world through new stories and thrills. Whether glittering on a casino floor or displaying eye-catching graphics on your mobile or desktop, the company has built a world of content that players love across licensed and home-grown brands including 88 Fortunes®, Monopoly Lunar New Year and Coin Combo®. This omni-channel approach grants players the flexibility to find the games they know and love, when

and where they want. OpenGaming is the world’s leading end-toend iGaming ecosystem, providing immersive player experiences with easy, direct access to an unmatched global network of studios, operators, games, features and technology. The company’s most notable games will be at attendees’ fingertips, including the highly-polished space-themed title, Invaders Megaways. Taking inspiration from the company’s much-loved Invaders from the Planet Moolah slot theme, The game is just one of the more than 4,400 titles available from the global network of in-house and third-party game studios that OpenGaming offers. Scientific Games elevates the player experience by investing in research and design to bring compelling content and innovative products to its partners. The company will display Kascada and Mural show-stopping cabinets that are already available on the gaming floor. Kascada is the company’s first, truly international cabinet and the next generation of the top-performing TwinStar J43 cabinet while Mural captures players’ imaginations as the company’s most visually dramatic gaming cabinet. Mural cabinets are already debuting on the gaming floor with strong performances. The company’s full suite of global systems

products empower partners and enables them to attract, engage and retain players while gaming responsibly. For operators looking for an easy way to attract and reward players through promotions, the industry first Player Boutique allows players to earn and redeem valuable rewards points right at the gaming machine. Displaying a true table games ecosystem, Scientific Games reveals the full scale of its electronic table games (ETG) product suite, progressives, game favorites and industryleading shufflers at the show. The Quartz cabinet demonstrates the company’s passion to cultivate unique gaming experiences in the rapidly growing ETG sector, with four new Quartz titles making their G2E debut, including Stadium Craps, Stadium Ultimate Texas Hold’em, Roulette X and Dragon Tail Baccarat. Scientific Games delivers thrilling sports betting entertainment and offers a unique combination of content, technology and services while delivering success for the world’s largest operators. At G2E, the full scope of its sports offering will be on display in a specialized environment that highlights the platform’s 25 years of success and features exciting innovations for the future. Scientific Games can be found at booth #1116.

SIMPLEPLAY

Lustrous Ocean ups fishing fun

lot supplier SimplePlay has launched some great games earlier this year and more are coming. These titles have performed well, and have been welcomed by the operators. “Myth of Phoenix” was SimplePlay’s Q1 hit. A 4x5-reel, 50-line slot where Stack Top Pay Symbol may appear on the reels, it allows players to win up to 1000x. As the phoenix is an auspicious creature in Asian myths, the game received great recognition from Asian players, and has been one of the best-selling games of SimplePlay in 2021. In Q2, the supplier has launched its own app to provide premium gaming experiences and brought gaming to a new level. There was also “Vanessa”, a Slot Game featuring a schoolgirl with special powers in a futuristic, low-life and high-tech world, where a lady villain threatens everyone’s survival. Using

Asia Gaming Briefings | October 2021

the Power Wheel Feature, Vanessa can change to different forms during free spins to fight against the lady villain. The game was also warmly welcomed by players, and has been doing well in the charts. The long-awaited “Mother of Dragons” was launched in Q3. The game is a major project, and features 3 different scenes, each with its own reel pattern and ways to win, as well as its own Wild features. The story features a princess who could rally dragons and she was determined to take revenge on those who killed her family and seized the throne. Without a doubt, the game has ruled the charts since its launch. Other than Slot Games, the supplier has enjoyed a great reputation over its Fishing Game, Fishermen Gold. And in Q4, SimplePlay is going to launch one of its

largest projects since the establishment of the brand. It is introducing Lustrous Ocean, its second product of the line. Operators have been expecting this game, for it contains brand-new features that the industry has yet to experience. Stay tuned for SimplePlay’s latest updates – you’ll be amazed.

SUPPLIER SPECIAL REPORT 55 TRANSACT

Enhancing the player experience

ransAct Technologies will demonstrate how its line of gaming products enhance the player experience with its Epic technology. The booth will highlight the company’s full lineup of casino and gaming printers and software solutions, including the latest version of its innovative Epicentral Software Bonusing System which includes the all new Epicentral Mobile Host feature running on iPad or Android Tablets and its TITO and roll-fed printers. “TransAct has long offered print and player bonusing solutions that allow casino and gaming operators to get an edge over their competition. There’s no better proof of this than our showcase of the new Epicentral Mobile Host feature of Epicentral giving Casino Slot Floor Managers the ultimate tool to identify and reward their

most valuable players on the property in realtime. With our Epic Edge printer and Epicentral solution, we are bringing to casinos worldwide the most advanced printing technology that takes gaming capabilities to the next level,” said Bart C. Shuldman, Chairman and Chief Executive Officer of TransAct Technologies. “Most importantly, we’re thrilled to reunite with our colleagues, clients and other industry leaders in person.” Epicentral and Epicentral Mobile Host Delivers Casino Revenue Growth and Drives Loyalty Epicentral extends time-on-device, increases player spend, and generates increased customer loyalty – all leading to more revenue for casinos. Also on display will be the Epic Edge TT made especially for table games, players’ club desks and

cash desks. It packages a printer and internally mounted power supply in a tidy, compact design that is easy to deploy. In addition, thanks to its dual port capability, the Epic Edge TT allows operators to expand the bonusing environment created by their Epicentral deployments to nongaming device applications. The Epic printer offering is rounded out by the Epic 880®, a compact printer for all types of gaming and sports betting machines (including video lottery terminals) which features a modular design that is configurable to nearly any space, a variable length ticket presenter and ticket retract capability. It also offers auto paper loading and can accommodate 4-inch or 6-inch paper rolls. Transact can be found at booth #2423.

Launching ODDS.GG, Inplaynet will offer to its wide network of operators more than 34 eSports titles, over 6,000 pre-match events, 5,500 live events, and a selection of over 200 markets. The clients of Inplaynet are trusted and advanced betting websites with operations in many iGaming jurisdictions worldwide. Commenting on the newly launched partners, Mario Ovcharov, CEO of UltraPlay said: “We are excited to welcome aboard two new partners and grow the network of clients using our multiawarded eSports betting product - ODDS.GG. We believe that with these strategic partnerships

we will further extend the usage of ODDS.GG on a global scale. Most importantly we will be able to reach their end-users by providing our quality and exciting products such as ODDS.GG.” UltraPlay is known for its eSports betting provision on the iGaming market, and over the last 3 years, the company has been recognized with over 16 awards in this vertical. The company has been recently recognized as the Esports Betting Software of the Year Winner at the International Gaming Awards and the 2021 WIG Diversity Awards winner for Best Use of Technology category.

ULTRAPLAY

Welcoming new partners

ltraPlay has announced that its multiawarded eSports betting product ODDS. GG was successfully launched on two of the company’s partners - 1win and Inplaynet. 1win is a popular sports betting website and online casino with an intuitive interface and modern design, localized for more than 50 countries. It offers betting entertainment both on mobile and desktop. Through UltraPlay’s ODDS.GG all eSports punters at 1win will have the opportunity to enjoy a wide selection of their favorite events and choose from a broad range of betting markets.

Asia Gaming Briefings | October 2021

CALENDAR OF EVENTS 56

OCTOBER CYPRUS GAMING SHOW 4-5 October 2021 Limassol, Cyprus https://www.eventus-international.com/cyprus-gaming-show 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/

SBC SUMMIT NORTH AMERICA 30 Nov - 2 December 2021 Meadowlands Exposition Center, New Jersey https://sbcevents.com/sbc-summit-north-america/

DECEMBER

BETTING ON SPORTS EUROPE 9-11 November 2021 Stamford Bridge London https://sbcevents.com/betting-on-sports-europe/ SIGMA EUROPE 16-18 November 2021 MFCC, Malta https://www.sigma.com.mt/en/events/europe

ASEAN GAMING SUMMIT 22-23 March 2022 Shangri-La Hotel, Manila https://aseangaming.com/

ALL AMERICAN SPORTS BETTING SUMMIT 7-8 December 2021 New York, USA https://www.eventus-international.com/gaming-events

SPICE INDIA 23-25 March 2022 Goa, India https://www.sportsbettingevents.com/spice-india

2022 FEBRUARY ICE LONDON 1-3 February 2022 Excel London, UK https://www.icelondon.uk.com/ IGB AFFILIATE LONDON 2-5 February 2022 Excel London, UK https://london.igbaffiliate.com/

Become a member EXCLUSIVE ACCESS TO AGB INTELLIGENCE BE THE FIRST TO RECEIVE OUR DAILY BRIEFS PRIORITY REGISTRATION FOR OUR EVENTS

Asia Gaming Briefings | October 2021

REGULATING THE GAME 7-11 March 2022 ICC Sydney, Australia https://www.iccsydney.com.au/whats-on/Regulating-theGame-2022

WORLD GAMING EXECUTIVE SUMMIT 6-8 December 2021 W Hotel, Bracelona https://www.terrapinn.com/conference/world-gamingexecutive-summit/index.stm

NOVEMBER G2E ASIA 9-11 November 2021 The Venetian Macau Cotai Expo https://www.g2easia.com/

MARCH

Become a member

SUBSCRIPTION FORM, PLEASE TICK AS APPROPRIATE, USE CAPITAL LETTERS

STANDARD MEMBERSHIP BENEFITS TOP NEWS HEADLINES

SINGLE MEMBERSHIP

E-BRIEF CONTAINING IN-DEPTH FEATURE ARTICLES SEARCHABLE ARCHIVE OF GAMING NEWS

US$ 128.00/ MONTH, 6 MONTHS - US$ 768.00

DISCOUNTED ACCESS TO EVENTS AND OTHER AGB PRODUCTS

US$ 108.00/ MONTH, 12 MONTHS - US$ 1,296.00

$615 $1,035

CORPORATE STANDARD MEMBERSHIPS THREE (3) MEMBERSHIPS: 10% DISCOUNT

FIVE (5) MEMBERSHIPS: 20% DISCOUNT

6 MONTHS: US$ 690 EACH Total: US$ 2,070 (Save: US$ 234)

6 MONTHS: US$ 615 EACH Total: US$ 3,075 (Save: US$ 765)

$ 552 each

12 MONTHS: US$ 1,165 EACH $ 932 each Total: US$ 3,495 (Save: US$ 393)

$ 492 each

$ 828 12 MONTHS: US$ 1,035 EACH each Total: US$ 5,175 (Save: US$ 1,305)

* Sign up and pay in full for 12 months and get the 13th month free!

TEN (10) MEMBERSHIPS: 35% DISCOUNT

$ 399

6 MONTHS: US$ 499 EACH each Total: US$ 4,990 (Save: US$ 2,690)

$ 672 12 MONTHS: US$ 840 EACH each Total: US$ 8,400 (Save: US$ 4,560)

* The above discounts cannot be used in conjunction with any other discount

CONTACT INFORMATION FIRST NAME :

LAST NAME :

SKYPE NAME :

COMPANY

ROLE

ADDRESS

STATE

CITY

USER NAME :

PROVINCE : POSTAL CODE

MOBILE

COUNTRY : +

PHONE

PAYMENT DETAILS: HSBC HONG KONG | “BLUE SKY VENTURE LTD” | #658-046347-838 | SWIFT: HSBCHKHHHKH I WOULD LIKE TO SETTLE VIA CREDIT CARD. PLEASE SEND ME A DEDICATED PAYMENT LINK TO THE EMAIL ABOVE

WHAT IT IS

WHAT YOU GET

AGB serves as a platform for multiple levels of information about the Asian gambling industry in the form of feature articles, latest news headlines, network-

AGB consists of a weekly eBrief reporting on recent regional news and developments in the Asian gambling industry. Articles are written by experts living and

ing events, directories of key authorities and players, bespoke research, introduction services, and access to experts who can answer your questions.

working in Asia and cover a range of legal, operational and market issues, offering in-depth analysis of the opportunities these developments provide for operators and those who work with them.

WHAT’S DIFFERENT

WHY YOU NEED IT

Our extensive network of regional advisors ensures that the intelligence you receive is real, topical, and based on fact. No other service gives you such comprehensive insights into the political, legislative and competitive developments affecting the markets in this region, and what they mean for you. Get your information from the horse's mouth, not from third parties

Gain access to the vast knowledge and experience of those who actually work in and with the Asian gaming industry and get the inside scoop on the next great opportunities, as well as answers to your everyday operational challenges. By becoming a member, you also connect with other like-minded people who want more than just surface-level information.

Gaming Briefings | October 2021

LAST WORD 58

Sharon Singleton

Managing Editor, AGB

Exploring economic disconnects Just seven years ago during a panel at G2E Asia, analysts and operators alike were predicting that Macau would be a $100 billion market by 2021.

The day of reckoning for investors in Macau’s six heir rationale was the improved product offering from the new properties coming online on gaming operators came the day the local government Cotai and the fact that the Mainland was under published its long-awaited amendments to the gaming law. There was very little detail in the proposals, but they penetrated with just 2.8 percent of its population visiting Macau compared with 16 percent of the U.S. raised enough concern to wipe more than $18 billion off the value of the shares in the biggest-ever one-day fall population visiting Las Vegas. Infrastructure has been improving, creating ease of for the sector. Some analysts were swift to point out that the sell-off access from a wider number of Chinese cities, while a rising middle class was forecast to double their disposable was overdone and the long-term drivers remain intact. However, for an institutional investor sitting in one of income during the period. Roll on eight years and what has changed? Taking the world’s financial capitals, suggestions that the companies Covid out of the equation the same big picture economic may face restrictions on the distribution of capital, that drivers remain in place, but no one would suggest Macau’s there may be requirements for greater local shareholding ownership and direct supervision of operations was enough gross gambling revenue will hit $100 billion. In fact, forecasting where GGR in Macau might to hit the panic button. There was also a clear inference that to regain a gaming be five years from now is at present like pinning a tail concession companies would be on a donkey. required to invest more in non-gaming The uncertainty stems from the amenities and potentially in projects Chinese government and its vision in the Hengqin Cooperation Zone for its own and Macau’s economy. The to fulfill the Mainland government’s Political risk was always going to be vision to create a hub for international a factor for any investor in Macau uncertainty stems tourism and leisure in the Greater given the city’s majority reliance on from the Chinese Bay Area. a sector its giant neighbour sees as This may turn out to be a great a social evil. government and investment, but there is a niggling risk That risk had been seen as its vision for its that companies may plough funds worthwhile given the potential into a project to satisfy a political goal rewards. However, there had also own and Macau’s when that capital could produce a been a presumption that the gaming economy. higher return if invested elsewhere. industry was too important for Macau recorded gross gambling Macau’s economy to be at serious revenue of $37.7 billion in 2019 and risk from Beijing. according to Bernstein, the operators As China began to wield its axe on the Mainland, taking down its tech giants with a resulting only need to hit 30 percent of that level to remain profitable loss of some $1.5 trillion off the shares, turning its sights at the EBITDA level. This is a clear indicator of the strength on private education, clamping down on food delivery and and resilience of the gaming industry. However, at present there appears to be a disconnect ride sharing, Macau seemed to be curiously unaffected. The focus was on the recovery from Covid and the between the underlying economic potential and the potential for pent-up demand once visitors return. This ultimate reality. Without further clarity as to what exactly myopic vision continued even as some of the biggest the government means by the proposals put forward in its and brightest lights in the investment community held a discussion paper, it’s difficult for an institutional investor public sparring match over whether U.S. funds should be to consider funnelling new funds into the sector. Analysts from JP Morgan have pointed to the difficulties investing in China given the current climate. One long-term China watcher recently told AGB, of putting a potential floor on earnings multiples and “the checks and balances between the two seats of power, hence the stocks, saying that without further clarity it sees the government and the party, have been destroyed by Macau as being “nearly un-investible.” It expects it to be at least six months before the President Xi Jing Ping and now politics have full control dust settles. regardless of economic and social consequences.”

“

”

Asia Gaming Briefings | October 2021

Congratulations on the

Anniversary of the People’s Republic of China

Asia Gaming Briefings | October 2021

AGBriefings October 2021 Edition

Articles inside

LAST WORD

SUPPLIER SPECIAL REPORT

RUSSIA

JAPAN

KOREA

FOCUS

INDOCHINA

VIETNAM

SOUTH EAST ASIA

PHILIPPINES

MACAU

IT'S ON WITH THE SHOW!!