AGBriefings February 2022 Edition by Asia Gaming Brief

JURISDICTION UPDATES February 2022 Edition

In focus pg.12

Macau

Junkets on life support and satellites in the balance

KOREA

More pain and no gains pg.32

INDIA

Delta rings in record quarter pg.34

CAMBODIA

Naga defends labor record pg.18

PHILIPPINES

Optimism for a bounce back pg.14

SUPPLIER SPECIAL REPORT pg.40

Asia Gaming Briefings | February 2022

MESSAGE

Reports of Macau junket death exaggerated!

he Macau gaming industry has been on a

Kicking off with the Philippines, which suffered among the

rollercoaster ride that doesn’t seem to end.

most lengthy casino closures in Asia, Okada Manila seems

After the disastrous announcement by the

to have found a silver lining as 4Q21 figures indicate that

Gaming Inspection and Coordination Bureau

demand is still strong once restrictions are eased.

(DICJ) in September last year, which wiped a quarter off

Across to Vietnam, where the potential for new regulation,

the market value of shares in the Macau operators, the

coupled with favourable foreign investment trends, are

government has been endeavouring to repaint the canvas

creating a strong base for the country’s land-based industry.

in broad, bold strokes to brighten up the picture.

Downunder, Australia’s gaming industry moves into

So much so that after the announcement of the new

2022 facing multiple headwinds, with rising Covid

gaming law draft earlier this month the industry took a

cases, staff shortages, and another expected round of

collective sigh of relief. It was short lived.

regulatory scrutiny.

In the focus section of the February edition of AGBriefings

The Supplier Special Report rounds up the edition with

magazine, we bring you insights from the experts on the

the latest product releases from leading manufacturers

implications of the gaming law draft and its impact on

and service providers from both the land-based and

the re-tendering of the gaming concessions - potentially,

online spheres.

some time this year.

We had hoped to bring the industry together in March

Alidad Tash notes that despite warnings that junkets were

at the ASEAN Gaming Summit in Manila. Following

dead, they are still provided for in the law. The managing

consultation with stakeholders, AGB has decided to

director of 2NT8 Ltd. also predicts that satellite casinos

postpone the conference to July 2022, to give more time

will also ultimately survive due to the priority given to

for travel restrictions to ease. Update your calendar, and

local employment.

watch this space.

In the same vein, Carlos Simões, partner at DSL Lawyers,

This February edition also marks the 9th Anniversary of

argues that while junkets aren’t dead, yet, they are on life

AGB’s print magazine. We’d like to take the opportunity

support, and that the legal changes are the least of the

to deeply thank all our readers and patrons for their

industry’s problems.

continued support over the years.

Commenting on the proposed eradication of satellite

On a parting note, the team at AGB wishes you a Healthy

casinos in an interview with AGB, Jay Chun, the head of

and Happy Chinese New Year of the Tiger!

the Macau Gaming Equipment Manufacturers Association,

Enjoy your reading and stay safe.

Rosalind Wade

Luis Pereira

advocates that local casinos are still a good business model and if they are indeed shut down “there will be an

On behalf of Asia Gaming Brief

impact” on the economy.

Rosalind Wade & Luis Pereira

From a macro perspective, Integrated Resort Management

CO-FOUNDERS

Associate Professor Glenn McCartney MBE, writes that attention will soon be focused on the request for proposal

Connect with us:

process and ensuring the pitches are in line with the government’s clearly stated objectives.

@agbrief

In these pages you’ll also find the most relevant

Asia Gaming Brief

developments across Asia’s gaming jurisdictions:

www.agbrief.com

FEBRUARY 2022 EDITION SERIES II • ISSUE XIX

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Asia Gaming Briefings | February 2022

CONTENTS 10

GREATER CHINA

SOUTH EAST ASIA

MACAU

NORTH ASIA

Asia Gaming Briefings | February 2022

INDIA

SUPPLIER SPECIAL REPORT

VIETNAM

CAMBODIA

AUSTRALASIA

SOUTH ASIA

KOREA

SPECIAL FOCUS

PHILIPPINES

INDOCHINA

AUSTRALIA

SAIPAN

LAST WORD

54 54

恭喜發財 Kung Hei Fat Choi

Happy Chinese New Year of the Tiger! Asia Gaming Brief wishes you health and prosperity!

Asia Gaming Briefings | February 2022

GREATER CHINA

MACAU

Macau stocks poised for bounce Investors are taking a second look at Macau stocks after a near 60 percent plunge in 2021, with the publication of the gaming law removing some overhang from the market.

Asia Gaming Briefings | February 2022

GREATER CHINA

he government took on board comments made by the industry and the public after a consultation process in September and October and some of the more draconian measures that had spooked investors weren’t included in the draft bill. However, there were other surprises that emerged to the downside, indicating the operators are not all out of the woods as yet. The bill now passes over to the Legislative Assembly for review and final passage. Only when that has been completed can the government begin to prepare the ground for the re-tender process. It has made it clear in the law that there will need to be more focus on non-gaming investment, as well as support for local industries, employment and social and cultural events. It may well emerge that there are more details on what is expected in the actual concession contracts. The government has said it will be open to a short extension of the concessions should the clock run out on the review and re-tender process. Industry watchers in Macau are expecting a six-month delay. The consensus is that the status quo will be maintained and the same six operators will be in place post-tender, however Ben Lee, managing partner of IGamiX Management, notes that there has apparently been strong interest from other applicants. Share prices surged after the government published the broad outline of its legal amendments in mid-January, which also capped a week of more

ANNUAL GROSS REVENUE

VIP Baccarat

Baccarat

(units in MOP million)

166,097

150,673

135,228

118,960 76,903

bullish announcements from analysts that the upside reward was beginning to outweigh the downside risk, given the beaten-down nature of the stocks. They retrenched slightly after the actual bill was published due to some negative surprises, though J.P. Morgan said that the amendments don’t change its “incrementally bullish” investment thesis. The main surprise was that the government will mandate the number of tables and machines each operator will be able to have. There is already a general cap on table games, but this now extends to electronic gaming. Further, the government will set a minimum level of gross gambling revenue that each is expected to generate. If the operator falls short of this level they will still have to make up the difference so that the government can meet its revenue targets. If the tables or machines fail to meet targets for two years in a row, they are liable to be withdrawn by the government. “While we did expect the so-called Table Cap policy to be formalized (introduced in 2021, but never stipulated in the law), we didn’t expect this,” J.P. Morgan analysts wrote. “This target amount will be published later via the official gazette and this uncertainty does leave room for imagination, we admit.” The firm said it doesn’t believe the levels will be too onerous, as the government’s estimates are usually on the conservative side. In addition, if the operators cannot meet the target, they may

84,283

102,397

120,773

26,280 26,936

2016

2017

2018

2019

2020

28,489

48,410

2021 (Source: DICJ)

Mass sector dominates in Macau in 4Q21 Macau mass market revenue from table games accounted for 72.7 percent of total table revenue in 4Q21, rising from 66.3 percent the prior quarter, according to figures from the Gaming Inspection and Coordination Bureau (DICJ). Total mass gross gambling revenue, including slots, was MOP14.17 billion ($1.7 billion) down 64.4 percent from its pre-pandemic levels, but was up 10.7 percent from the prior quarter. VIP gross gambling revenue fell 84.8 percent from 2019 levels and was down 17.8 percent compared with the prior quarter at MOP4.9 billion. The table game count was up 1.9 percent year-on-year in 4Q21, while the slot count was up 32.0 percent year-on-year and 2.7 percent from the prior quarter. For the year as a whole, mass table baccarat generated GGR of MOP48.4 billion, while the VIP segment contributed MOP28.4 billion. Gaming machine revenue for the year was MOP4.7 billion.

return the tables, which would have an impact on local employment as only locals are able to work as dealers. The law introduces a three-year interim performance review of all the operators to ensure they are meeting pledges made in the contracts. It also imposes restrictions on junket operators, although it doesn’t ban them altogether. Each junket promoter will only be allowed to work with one operator, the government said, leaving question marks as to how such an arrangement will work. J.P. Morgan said the law means the junkets will essentially become “dedicated marketing agents,” which won’t add much value to the operators. The firm is assuming the sector will ultimately die out. Although the gaming law overhang has been taken away, there are still large question marks over the recovery trajectory for Macau given China’s determination to pursue its zeroCovid policy. Hopes had been high for an imminent border opening with Hong Kong, which has historically accounted for more than 15 percent of gross gambling revenue. However, an outbreak of the Omicron variant in the city has stalled those plans and an easing of travel restrictions is not expected until the second quarter at the very earliest. In addition, China has been battling its own Covid clusters throughout January, with an outbreak in Zhuhai, which borders Macau, forcing the reimposition of stricter testing measures.

Cash incentives on offer for Hengqin move Macau businesses and residents are being offered cash incentives to move and set up companies in the Guangdong Macau InDepth Cooperation Zone in Hengqin island, according to local media reports. Employees may receive between RMB5,000 ($786) to RMB12,000 a month for three years, depending on qualifications and a one off payment of RMB5,000. Start up enterprises from Macau will get a one-off RMB50,000 subsidy after three months. Beijing in September unveiled The Master Plan of the Development of the Guangdong-Macao Intensive Cooperation Zone in Hengqin, which calls for intensive efforts to develop the island adjacent to Macau. The focus will be on the “appropriate” economic diversification of the special administrative region. Industries that will form part of the plan include Chinese medicine, high-end manufacturing, MICE, technology and research and cultural tourism.

Asia Gaming Briefings | February 2022

SOUTH EAST ASIA

PHILIPPINES

Okada 4Q21 points to strong recovery when restrictions ease It was another tough year for the Philippines in 2021, which suffered among the most lengthy casino closures in Asia, although 4Q21 figures from Okada Manila indicate that demand is still strong once restrictions are eased.

SOUTH EAST ASIA

he casinos were forced to operate under stringent Covid restrictions for much of the second half of the year as the country battled the Delta variant. On August 5, 2021, the Philippines government placed Metro Manila under Enhanced Community Quarantine, the country’s highest level of restrictions, and announced the temporary suspension of numerous economic activities. On September 16, 2021 the government’s new Covid-19 Response Alert System came into place, with Metro Manila placed on level 4, the second highest alert level until the end of September. This caused casinos to operate only at 50 percent venue capacity, and also imposed a 10 percent limit on the use of indoor restaurant seats, though this was raised to 30 percent at Okada Manila at restaurants with sanitation certification. These restrictions eased on October 16, as the government reduced the pandemic alert from four to three, and then reduced the alert from three to two on November 5. However, that reprieve was short lived as restrictions have been re-imposed again due to the spread of Omicron. Despite the difficulties, Tiger Resort, Leisure & Entertainment (TRLE), which operates the Okada Manila, reported a 68 percent surge in 4Q21 gross gambling revenue from the prior quarter, indicating strong pent-up demand as the casinos emerged from lockdowns. The company, a unit of Japan’s Universal Entertainment, also saw a gain year-on-year in GGR of 23.4 percent. GGR in the quarter was PHP7.01 billion

OKADA RESULTS

(units in million PHP)

Total Revenue 2019

42,381

2020

15,910

2021

19,696

Mass Table Drop 2019

19,675

2020

11,243

2021

14,115

VIP Rolling Chip Volume 2019 2020 2021

607,713 220,662 309,396 (Source: Universal Entertainment)

($137.1 million), while for the year it was PHP18.91 billion, compared with PHP15.32 billion in 2020, which was about 47 percent of its pre-pandemic levels. That’s a much stronger performance than in Macau, where GGR for the market as a whole only recovered to 30 percent of pre-pandemic levels despite the casinos having been open all year. Okada saw revenue from VIP table games up more than 69 percent sequentially in the quarter at PHP3.77 billion, while mass table games generated revenue of PHP1.34 billion, up 58 percent. Gaming machine revenue was PHP1.90 billion, up from PHP1.09 billion in the prior quarter. TRLE reported adjusted segment EBITDA of PHP1.36 billion, compared with PHP443 million in the prior quarter. For the year, EBITDA was PHP2.30 billion, swinging back into profit from a loss of PHP1.26 billion the prior year. Before the pandemic, the group reported full-year EBITDA of PHP6.87 billion. The other operators in Entertainment City have yet to report their results, although if they are in line with Okada, it will confirm the underlying strength of the market in the Philippines. Unlike most jurisdictions in the region, it is supported by a large domestic population where consumer spending power is rising. First Metro Investment Corporation (FMIC) has predicted that this year’s economic growth will be driven by sustained domestic demand, easing inflation, election expenditures, and accelerated government spending on infrastructure projects. “Notwithstanding the ongoing pandemic, and

Omicron sparking the third wave of infections, we are still optimistic that Philippine growth will further accelerate and get back on its trajectory of 6-7 percent in 2022,” FMIC president Jose Patricio Dumlao told a virtual briefing. Dumlao said the economy registered a 4.9-percent growth in the first three quarters of 2021 and the growth momentum likely spilled over in the fourth quarter given further economic reopening and easing mobility restrictions. Presidential elections will be held in May and although political risk has often been a danger for the country’s gaming industry, the candidates in the race have so far not thrown up any red flags. The five hopefuls include the son of former dictator Ferdinand Marcos, a teenactor-turned mayor, a former boxing champ, a police chief once on Interpol’s most-wanted list and the current vice president, who is a firm opponent of Duterte. Ferdinand Marcos Junior, known as Bong Bong, has emerged as the clear front runner in an opinion poll just before Christmas. His campaign got a boost when Duterte’s daughter, Sara Duterte-Carpio, who had been seen as a likely popular candidate in her own right, said in November she would not stand but would be Bong Bong’s running mate. “Bongbong Marcos represents the establishment, and establishment politicians tend to support established industries,” said Andrew Klebanow, founder of gambling consultancy consortium C3 Gaming. “He is probably the most pro-business and progambling candidate in the presidential field.”

Court dismisses fraud charges against former Okada Manila head

Interblock installation at Hann Casino

The Philippines Court of Appeals has dismissed a charge of embezzlement levelled against Japanese mogul Kazuo Okada and his associate, Takahiro Usui. The judge also quashed the warrants for arrest for the two men issued by a regional trial court in Paranaque City in 2019. The complaints against Okada and Usui were filed in 2018 by Tiger Resorts & Leisure, the local unit of Universal Entertainment that operates Okada Manila. Okada is former chairman and CEO of the company, while Usui was chief operating officer. The company accused the executives of embezzling $3 million. However, the Court of Appeals found the lower court had failed to adequately prove its case. “In this case, apart from the procedural defect of failing to issue an order explaining his finding of probable cause, the lower court likewise gravely abused its discretion in issuing the warrant of arrest when the records suggest that there is no probable cause” the ruling said.

Interblock has installed an ETG stadium and Megastar Roulette at the revamped and expanded Hann Casino Resort in Clark, Philippines. The venue was formerly known as the Widus Hotel and Casino complex. The 48-seat ETG Stadium consists of 40 G5 Diamond Play Stations with Live Twin Table Baccarat and Live Roulette, with multigame, multi-denomination and multi-lingual support. An additional Diamond Megastar Roulette 8 was installed nearby. Michael Hu, Interblock President for Asia Pacific, said: “We are thrilled for Interblock’s products to be part of the vision to attract tourism to Clark area. We wish Hann Casino and Resort great success in years to come.”

Asia Gaming Briefings | February 2022

INDOCHINA

VIETNAM

Foreign investment, new regulation, positives for casino industry The potential for new regulation, coupled with favourable foreign investment trends, are creating a strong base for Vietnam’s casino industry.

Asia Gaming Briefings | February 2022

INDOCHINA

However, while the IRs generally attract he country is tentatively beginning to reopen and learn to live with Covid much of the attention, Vietnam also has after a mammoth push to vaccinate numerous VIP clubs situated in five-star hotels its 97 million-strong population over in the major cities. These are foreigner-only and the past six months, which has seen it go from restricted to electronic table games. Shepherd sees these clubs as being key less than 3 percent coverage in July to more beneficiaries of the increased level of foreign than 90 percent vaccinated at present. As a result, it’s opening up its economy and investment and the resulting expatriate gradually looking to resume tourism, with flights workforce, as well as returning Vietnamese permitted from nine countries as of mid-January, who hold foreign passports. “We have invested in a hotel club in the although not all have begun operations. Even prior to the pandemic, Vietnam was north, which did very well until the pandemic, benefiting from China/U.S. trade tensions, but that’s been closed now for two years and we which has seen foreign investment switch out have a VIP club in Hanoi and we’re looking at of the Mainland into cheaper Southeast Asian a VIP club in Ho Chi Minh City as we really destinations, which aren’t subject to U.S. tariffs. like this sector,” Shepherd said. “There is a significant expatriate community According to law firm Dezan Shira & Associates, over the first 11 months of 2021, in HCM and returning Vietnamese, so those Vietnam received about $26.46 billion in foreign clubs will tend to do better, but we are seeing direct investment, mainly from Singapore, significant investment in the north and that’s dragging along with it those South Korea and Japan. increased numbers of Koreans Key beneficiaries were and Malaysians,” he said. the manufacturing and Once international travel processing centres followed There’s does resume, Vietnam’s IRs by electricity, real estate, are expected to do well. wholesale and retail. nothing really Tourism numbers to the In a briefing, the firm untoward [for country had been rising, said it believes that 2022 hitting an all-time high of is an ideal time to invest the gaming 18 million in 2019. in Vietnam. industry]. It was also a popular “With a solid vision destination for the Mainland for the future, Vietnam Chinese and was not thought has created a concrete to be high on Beijing’s foundation to bounce back stronger in 2022, with the amendment of a blacklist of jurisdictions targeting its nationals variety of important laws that help improve for gambling purposes. Vietnam also recently introduced new its business climate.” The government is targeting gross domestic legislation covering its electronic gaming product growth of 6-6.5 percent this year, market, which according to Ben Lee, managing partner of IGamiX Management & Consulting despite potential challenges from Covid. All of this bodes well for some sectors may be a sign the country is moving towards of Vietnam’s gaming industry, even without a central regulator. “There’s nothing really untoward [for the the tourists, says Tim Shepherd, director of gaming industry]. It’s basically concreting Fortuna Investments. “As long as you are close to a big population rules and understandings that were already in and industry and manufacturing, the shift place. Previously there may have been rules and between places that foreign investors can get to regulations but they were never formalized in at the moment is key and things are probably terms of being in the law.” “It’s something they’ve been moving tipping towards Vietnam at present,” he said. “We’re seeing more Korean investment and towards starting with the first gaming decree in more Malaysian investment and potentially 2017. They are slowly but surely working their American and that means foreigners coming way through the maze of provincial laws and in behind it and looking for something to do.” certifications towards a centrally managed one.” Whilst there has been no official announceVietnamese are only allowed to gamble in two integrated resorts as part of a pilot program. ment that a federal gaming regulator will be One is Corona Resort & Casino on Phu Quoc put in place eventually, Lee says the decree is island in the south and the other is a yet to be a sign that is the direction the government completed project in Van Dong in the far north. will be taking.

“

”

TOURISM STATISTICS 2021 157,300

-94.9%

2020 3.8m

-78.7%

2019 18m

IHG announces major Vietnam expansion Intercontinental Hotel Group (IHG) is continuing its Vietnam expansion after forming a four-hotel, 2709-room portfolio deal with Vietnam real estate developer Sun Hospitality Group, across two upcoming integrated resorts. The multiproperty agreement includes a 616-room Holiday Inn Resort Yoko Park Onsen in Quang Ninh Province, the first large-scale hot spring resort in Vietnam. Three hotels will also be built as part of the ongoing development of Ba Na Hills in Danang, known as Crown Plaza Danang Ba Na Hills, an 843-room Holiday Inn Resort Ba Na Hills and a 648 room voco Danang Ba Na Hills. The agreement will make IHG one of the largest international hotel operators in Quang Ninh Province, an area that is home to Royal Ha Long Bay Casino and Sun Group’s upcoming Van Don IR, which will allow locals to gamble through the country’s domestic-gambler pilot program.

Holiday Inn debuts at Intercontinental Grand Ho Tram The new Holiday Inn Resort tower at the Intercontinental Grand Ho Tram made its debut on January 15, 2022, according to an announcement on the integrated resorts’ website. Located within the Grand Ho Tram Strip complex, the hotel will include 561 rooms and suites and features stunning sea views, a gourmet food court, restaurants, bars, and “expansive entertainment options. The Holiday Inn Resort is the brand’s first entry in Vietnam. Last year, the Grand Ho Tram underwent a rebrand following a franchise agreement with IHG Hotels and Resorts. The Holiday Inn was scheduled to open on July 1st but was pushed back as the Covid situation in Vietnam worsened.

Asia Gaming Briefings | February 2022

INDOCHINA 18

CAMBODIA

Nagacorp says union membership played no part in downsizing decisions NagaCorp’s NagaWorld in Phnom Penh has defended its relationship with unionized workers after the treatment of striking employees by local authorities raised concerns amongst human rights organizations and the U.S.

n a public statement published in the Khmer Times, the company stressed that union membership was not a criteria that came into play when making decisions on downsizing its workforce. The company released statistics that showed that it has reduced its employee headcount from 8,371 at the end of 2020 to 6,181 by the end of 2021. It said union membership had dropped from 3,976, or 47 percent of the total to 2,572, or 42 percent, showing little change in the overall level of unionized workers. “In fact, with great emphasis towards protection of interests and right towards staff welfare, the company has always encouraged and emphasized staff to form unions since its inception in 1995.”

In its nine“ month results, the

company reported strong pent-up demand post reopening.

”

Nagacorp, which reported a net loss of $77 million in the first half of last year, said it had been forced to take cost cutting measures due to the impact of Covid and as a result, employees were offered a Mutual Separation Plan, which it said offered better benefits that those required under Cambodia Labour Law. The company said 360 out of 1,329 affected employees refused to accept the plan and issued the company with a strike notification on December 18th. However, Cambodian authorities’ heavy handed treatment of the striking employees

Asia Gaming Briefings | February 2022

risked becoming a cause celebre for civil rights movements in the country. Police arrested nine on New Year’s Day and a further 15 were detained a few days later, including union leader Chhim Sithar. She was reportedly dragged away after stepping out of her car at the demonstration. The U.S. embassy in Phnom Penh expressed its concern through a tweet, whilst other human

rights experts also weighed in on the threat to the peaceful right to protest and to organize labour movements. “We are following closely the troubling arrests of @NagaWorld union members for their peaceful expression and urge authorities to hear citizens, not silence them,” the embassy said in a tweet. “Freedoms of speech, assembly & association are guaranteed in the

INDOCHINA 19

Cambodian constitution. Police have called the strike illegal and a threat to social order. Naly Pilorge, executive director of rights group Licadho, told Al Jazeera the treatment of the NagaWorld strikers was just the latest example of the authorities using criminal proceedings to keep a lid on dissent. “No one who looks at this strike, of hundreds of mostly women union members peacefully gathering to demand their labour rights, can possibly argue that it threatens ‘national security’ or causes social disorder,” Naly said. Nagacorp has stressed that it was business as usual for the company despite the strike and that visitation has been increasing since the resort reopened after Covid lockdowns on Sept. 15. It will report its second-half results in early February. In its nine-month results, the company reported strong pent-up demand post reopening. Despite the fact the property was closed for

more than six months of the reporting period, average daily gross gambling revenue in the premium mass segment was just 7.9 percent lower at $285 million. Electronic gaming machines also performed well, with average daily GGR down 8.2 percent at $294 million. Mass tables GGR fell 36.6 percent to $415 million, while average VIP revenue plunged 62.4 percent to $814 million. Although locals aren’t allowed to gamble, Naga reported that its business had been supported by “quality play” coming from the captive expatriate community living in the city. Local Cambodians are not permitted to gamble. Cambodia was one of the first countries in Asia to reopen its borders to foreign travel, allowing quarantine-free entry to all countries from November 15th. Despite rising Covid cases, that policy remains in place. Authorities have also been in talks about reopening land borders between Vietnam and Cambodia to facilitate trade flows.

Improved infrastructure to boost gaming demand Gaming industry expert Andrew Klebanow, co-founder of C3 Gaming, says he expects transport infrastructure projects in Asia to help boost gaming in the Klebanow said a new four-lane highway connecting Phnom Penh with Sihanoukville, is expected to open in 2023. “Prior to the pandemic, its casino-resort industry enjoyed rapid growth due to its nearby regional airport. The new highway is expected to attract expatriates residing in Phnom Penh, eager to escape the heat, humidity and congestion of the capital city for beachside vacation experiences.” Similarly Klebanow noted the 414km high-speed rail network between China and Laos, which opened on December 3, represents a major milestone in the PRC’s Belt and Road Initiative. The network will eventually connect Southern China and Laos with Bangkok, Phnom Penh, “Transportation infrastructure has long played a critical role in the success of casino development,” said Klebanow in commentary to CDC Gaming reports.

Naga/Wynn at most risk from VIP shrinkage: MS Nagacorp and Wynn Macau are the operators likely to see the most impact from any further reduction in VIP volumes, though for most companies around Asia the risk to EBITDA is not high, Morgan Stanley said in a note. The firm has calculated which Asian operators get the highest proportion of their EBITDA from the VIP sector and how much of that is from the Mainland Chinese VIP segment. Nagacorp’s NagaWorld property in Phnom Penh had the highest exposure of all companies covered by Morgan Stanley at 45 percent in 2019. The firm estimates that 25 percent of that EBITDA came from wealthy Chinese. “This was the result of Naga’s high revenue exposure to VIP (72 percent of GGR) and higher margin (24 percent), reflecting lower tax rates and opex,” it said.

Asia Gaming Briefings | February 2022

July 2022 Shangri-La at the Fort Manila, Philippines

a sea n gamin g.com

Asia Gaming Briefings | February 2022

FOCUS 22

Asia Gaming Briefings | February 2022

FOCUS 23

Reshaping Macau’s regulatory landscape Events in Macau have been moving at breathtaking speed since the government first published its outline for changes to the gaming law in September. We saw panicked investors heading for the exits on concern over draconian new regulations for the six operators, only to hear a collective sigh of relief when a second outline was published in early January.

ot on the heels of that publication came the actual law itself. The 44-page document again had industry watchers scratching their heads, with some gritty surprises buried in its pages and gaping holes as to how the rules will work in practice. In this edition of our Focus section, we ask some leading figures in Macau’s casino industry to shed some light on the issues. First, Alidad Tash, managing director of consulting firm 2NT8 Ltd and a former executive at both Sands China and Melco Resorts & Entertainment, takes us through some of the key changes in the legislation. He attempts to shed some light as to how some of the amendments might actually work in practice, addressing issues such as how the junkets will operate without their own private VIP rooms. Jay Chun, chairman of Paradise Entertainment and head of the Macau Gaming Equipment Manufacturers’ Association, defends the role of satellite casinos. According to the bill, these will no longer be able to operate in buildings not owned by the concessionaire, raising doubts about how they will survive. Chun argues that these properties, mostly on

Peninsula Macau, help to support the local economy, providing foot traffic to the noodle bars and souvenir shops that surround them. Our third article in this section is written by Carlos Simões, a partner in DSL Lawyers, who acts mostly for developers and international funds with projects in Macau. He takes a look at the demise of the junket sector, which has been in freefall since the arrest of Suncity CEO Alvin Chau late last year. Whilst not dead yet, he explains that the sector is on life support and we should watch for further changes as the regulatory noose tightens. Lastly, but certainly not least, in this section we have an article from Glenn McCartney, Associate professor of Integrated Resort Management at the University of Macau. He looks beyond the gaming law amendments to the next stage in the concession re-tender process, which will be the request for proposals from the various bidders. It’s here we’re likely to see more details about the likely shape of Macau 2.0. However, he warns that in making their pitches, the candidates should pay close attention to the government’s stated vision for the industry.

Asia Gaming Briefings | February 2022

FOCUS 24

Employment concerns may save junkets, satellites Junkets have survived in Macau’s amended gaming bill and satellite casinos are likely to continue to be a part of the landscape due to the government’s concern about local employment, says Alidad Tash, managing director of consulting firm 2NT8 Ltd.

n an interview with Asia Gaming Brief, Tash highlighted some of the key provisions of the law that was published in mid-January and discussed how they may affect the operations of the six concessionaires. The draft bill, which came earlier than most market watchers had been anticipating, stipulates that there will be six concessions, with a ten-year term, down from the previous 20-year duration. Junkets are still allowed to operate, although with significant restrictions, while the government will also carry out a three-year performance review of the operators. Other changes include a cap on both tables and slot machines for each operator. The government will set a minimum level of gross gambling revenue to be met by each table and machine and the operator will be required to make up the shortfall if they are not reached. Failure to meet the threshold for two years may result in a reduction in allocation.

Asia Gaming Briefings | February 2022

Another surprise in the bill was a ban on operating any casino that is not in a building owned by a concession holder. This effectively abolishes Macau’s roughly 18 satellite casinos, which have been given a three-year transition period to come into compliance with the law. Details are scant as to how this might happen, but Tash said he doesn’t see the satellites disappearing. “I think it’s quite reasonable to assume that the satellite casinos, which are very politically powerful, will be able to find a day to wriggle out of the three-year commitment, either by extending it or convincing the government to remove the provision,” he said, pointing to the fact that initially in 2002 Macau had only envisaged three concessions, but somehow that morphed into six. One of the government’s key concerns is job losses in the local community, which is likely to be quite a persuasive force when arguing the case for the satellite casinos, Tash said.

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During the first reading of the bill in the Legislative Assembly, the majority of speakers who chose to intervene, commented on the impact on the employment situation in Macau. This was probably also a factor in deciding not to outright ban the city’s junket operators, instead imposing more onerous restrictions on them that may lead to a more phased withdrawal. Under the new regulations, revenue-sharing accords between junkets and operators have been banned. One junket can only work with one operator, while they are no longer able to operate VIP rooms. Again, the details as to how this will work in practice are scarce and Tash argues it could create some operational challenges. “Speaking as a gaming operator who has headed operations in the past, how are they going to handle the various chipsets?” he said. “Are they all going to be in the same room on different tables with their own chipsets? Also, it’s unclear as to how the junkets will be divided amongst the operators and whether there are also limits as to how many junkets one operator can work with. Is there anything to prevent one large junket splitting into six pieces and working with each operator? “These are all questions that need to be answered. It would have been a lot easier to just strike them out altogether, but the fact that they allowed them to survive a bit longer I believe has to do with the fact that the government doesn’t want to have four, five, six thousand people unemployed on the streets.” Another element of the bill that has raised eyebrows is the government caps and minimum gross gambling thresholds. Tash said it is a way for the government to exert pressure over the casinos, given that table allocations in Macau are some of the casinos’ most precious assets. As to how the minimum threshold will be set is another key question given the current divergence in productivity levels across the market, which could result in some of the lowerperforming properties being severely penalized. “They are going to have to make the goal light enough, or set the bar low enough, so that everyone can clear it,” said Tash, adding that in this sense he sees the measure as being less of a punishment and potentially more of an incentive to those that perform well, especially when it comes to the government’s push for more non-gaming activities. The bill stipulates that the operators need to play their part in the diversification of the economy with the addition of more non-gaming elements and it’s here that Tash sees sticking

points. There are no details in the bill as to what kind of amenities the operators will need to add, or how. However, Tash said it’s just fanciful thinking that Macau could come anywhere near the non-gaming revenue split seen in Las Vegas. There is not enough space to add substantial numbers of new hotel rooms and Mainland travellers don’t come to Macau for fine dining or shopping, which is readily available at home. Big shows are expensive to put on and have had limited success, while art installations on Cotai are largely empty, he said. “Nobody flies from China, goes through the visa process, to come to Macau to see a museum,” he said. “People come to Macau for one reason and that’s to gamble as it’s the only place in China where it’s legal.” The bill has now been passed to the Legislative committees to go through the details before a second reading in the assembly. In summary, Tash said he views the proposed legislation as largely positive. “It’s mostly good news, with some curious ones,” he said. “We’re in a much better place than we would have been a couple of weeks ago, so this is definitely a step forward.”

Asia Gaming Briefings | February 2022

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Satellite casino abolition to harm local economy Jay Chun, chairman of Paradise Entertainment, has warned that a clause in Macau’s proposed gaming law will have a negative impact on the local economy and small businesses.

he amendments to the law, which were made multi-game terminals (LMGs), which it pioneered public in January, include a requirement in the Macau market through its LT Game unit. Chun said the LMGs had been performing well for all casinos to be in premises owned by the concessionaires. They also ban any with the pandemic giving a further boost to the already popular games, providing natural social distancing. revenue sharing agreements. There will be a three-year transition period He said revenue from the terminals is only down 20 for arrangements to be made to comply with the percent from pre-pandemic levels, far outpacing the regulation. Although there are few details, analysts market as a whole. Gross gambling revenue as a whole in Macau have noted that it appears to sound the death knell only reached 30 percent of its 2019 levels last year. for Macau’s satellite casinos. He said he sees further room for strong growth The casinos are run under a third-party license agreement with one of the license holders. There are due to cost efficiencies in that they reduce labour 18 of them in the city, with the majority working with costs for operators, while still providing the thrill SJM Holdings. Although Galaxy Entertainment and of the live table for the players. High dealer costs in Macau require the casinos Melco Resorts & Entertainment to impose high minimum bets, also have such arrangements. usually about HK$1,000, which Paradise Entertainment are out of the reach of the mass runs the Paradise Kam Pek We are always market player the city is trying satellite casino in Peninsula to attract. Macau under a license from SJM. talking about the Chun, who is also head of “Basically, overall it’s good economy, but the Macau Gaming Equipment as it’s more regulated,” Chun Manufacturers Association, said in a recent interview, if the satellites said the group is currently referring to the law changes. are shut down working on developing new and “Several of the items are innovative features for electronic concerning and we have to there will be an table games, as well as a range see exactly what the articles impact. of Chinese-themed slot games are. We don’t understand how that are likely to be released in it works and what percentage the next few months. they should hold.” “We are focused on the Chun argues that the mechanics of the ETG. We believe local casinos are still a good business model. Many are on the peninsula and are that clients like to see the number generator, the dice surrounded by restaurants, hotels and souvenir shops, moving,” he said. “The player still loves this game very much so we are focused on trying to invent new which depend on the casino traffic. “It doesn’t mean that everyone should go to the games like these.” The group is also dedicating more resources to Cotai side,” he said. “We are always talking about the economy, but if the satellites are shut down there expansion in the U.S., where it sees strong demand for slots. will be an impact.” However, Chun acknowledges that the pandemic is Casino Kam Pek Paradise, which opened in 2007, generated gross gambling revenue of HK$416.9 million still creating headaches for shippers and manufacturers. in the six months to end-June last year, the most recent He said products that used to take just 23 days to ship available figures. That represents an increase of 58.9 are now taking up to three months, with the problem particularly acute when it comes to bill validators. percent over that of the last corresponding period. “It’s tough for everyone,” he said The casino was operating 39 tables and 481 live

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Asia Gaming Briefings | February 2022

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Asia Gaming Briefings | February 2022

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Carlos Simões

Partner, DLS Lawyers

Junket operators: One activity, two legal systems Junkets in Macau aren’t dead yet, but they are on life support, argues Carlos Simões, a partner with law firm DSL, who takes us through some of the momentous events of recent months and asks where next?

he warrant issued by the Wenzhou People’s Procuratorate of Zhejiang Province on November 26, 2021 proved to be a biblical event, triggering a major exodus from Macau’s junket industry and VIP gaming. The next day, the Judiciary Police detained Suncity CEO Alvin Chau and 10 other executives, on suspicion of committing crimes in Macau within the operations of the group. This was just the start. What followed was a major collapse in the shares of Suncity stock and other listed junkets, as well as the shares of all the Macau gaming concessionaires, which later became known as the “wipeout.” Then came the closure of all Suncity VIP rooms in Macau by December 1 and the termination of cooperation agreements with Tak Chun. Finally most gaming operators claimed that junkets were no longer welcome in their casinos and terminated existing arrangements. During an AGB webinar on December 9, 2021 most commentators were unanimous in their view that junkets were dead. Two months fast forward and this stark diagnosis has not yet been confirmed, but junkets remain in Intensive Care and the diagnosis is “reserved.” In this article we will focus mainly on the legal aspects of the junket exodus. Junket activity has been regulated in Macau since 2004 under Administrative Regulation no. 6/2002 and Law no. 5/2004, which governs concession of credit for gaming or betting. Their activities are supervised by the Gaming Inspection and Coordination Bureau (DICJ), which runs background checks to confirm the suitability of shareholders and directors and issues licenses every year. The licensing process begins with an application to the DICJ, accompanied by a declaration confirming the suitability (trustworthiness) of the applicant, as well as a statement signed by a legal representative, or director, of a gaming concessionaire stating its intention to cooperate with the applicant, in addition to other relevant documents. However, the number of licenses issued by DICJ has been on a downward trajectory, from a high of 235 in 2013 to just 95 in 2020, 85 in 2021 and 46 in 2022. The reality is that the biblical events that swept through the junket industry and VIP gaming have not been followed by any regulatory changes…yet.

Asia Gaming Briefings | February 2022

The DICJ has been processing all the applications for junket licenses as “business as usual.” The only regulatory change that was implemented was the guideline from the DICJ that junkets (“gaming promoters”), were no longer allowed to grant credit to gamblers (as foreseen by law) and that the concessionaires should be granting such credit instead. A gambling debt is only enforceable in Macau if the credit is granted by a casino concessionaire.

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But the legal march has started. As part of procedures to change the Gaming Law (Law 16/2001) in preparation for the re-tendering of the concessions, the DICJ on December 23 published its final report on proposed amendments following a 45-day public consultation. When it came to junkets, the general public agreed with the need to broaden the scope of verification and regulation of concessionaires/ sub-concessionaires and gaming promoters and their employees, strengthening such mechanisms. The opinions focused mainly on the suitability criteria for gaming promoters and their employees, the increase of share capital of gaming promoters, as well as mechanisms to control their funds & operations in order to combat cross-border gambling practices,

illicit betting practices, illicit online gambling and “side betting.” Views were also expressed on the regulation of the ratio between assets and liabilities in order to prevent financial risks and to avoid illegal capturing of funds and money laundering. These concerns were in line with most recent court cases, which have begun to hold gaming concessionaires co-liable for the debts of the junkets operating in their premises, whenever those liabilities were a direct consequence of gaming operations. These decisions are supported by Section 29 of Administrative Regulation no. 6/2002, which rules that casino operators are jointly liable for any infringement of regulations by the junkets and for the junkets’ activity in casinos. The Court of Last Appeal in November

2021, under Court Case 45/2019, made a decision making the gaming concessionaire and gaming promoter co-responsible when the concessionaire does not fulfill its supervisory duty by allowing, or tolerating, the gaming promoter to acquire illegal financing in its casino. The ruling deemed the concessionaire to be jointly and severally liable for losses arising from that illegal activity. From the above one should conclude that the junkets’ activity in Macau had a proper licensing system and proper regulatory supervision by the DICJ. But the same did not work outside the boundaries of the Macau SAR and the mainland authorities finally patched this major problem. Participation and facilitation of gambling for mainland China customers has been classified as a criminal activity for some years. But from March 2021, helping mainland residents to take part in “crossborder gambling” – whether in person or online – has been defined as a crime under mainland law. The penalties apply to any person who “organises” mainland Chinese citizens to gamble “outside the country (borders)”, when there is a “serious” amount of money involved, or for cases considered to have “grave consequences”, according to the amendment to the country’s criminal law. These were the rules that led to the fall of Alvin Chau and Suncity in mainland China and Macau authorities had to follow. Back to Macau, one of main changes announced in the draft of the Gaming Law, which was approved as a draft on January 24, 2022, was precisely that revenue share arrangements between junkets and casino concessionaires will be prohibited. Furthermore, junket licenses will continue to be issued but will restrict each licensed promoter to only carry out the activity of promoting games with one gaming concessionaire. Another blow to an already frail industry. To conclude, the VIP exodus continues, with problems in all directions. Strict controls in mainland China, namely on the flow of funds, a much weaker market since the pandemic started, the successive closures of borders and finally the strikes against the industry leaders – the junkets. Overall, the legal changes that are affecting the industry would be the most minor problem of all of them. But even this is not settled yet and more is to come. - Just wait for the next episodes of this saga.

Asia Gaming Briefings | February 2022

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Glenn McCartney

Associate prof. integrated resort management University of Macau

Macau bidders need to pay close attention to government vision With the concession expiry deadline looming the government is pushing ahead with its plans for a public re-tender for the coveted licenses. Glenn McCartney MBE, Associate Professor of International Integrated Resort Management at the University of Macau, writes that the attention will soon be focused on the request for proposal process and ensuring the pitches are in line with the government’s clearly stated objectives.

he dust has almost settled again from the Macau government’s announcement of the details of the draft gaming bill - but it could likely be short-lived. Although the public tender for the six casino licenses is imminent, with six licenses confirmed in the draft gaming bill, there has been limited conversation on the request for proposal (RFP) items. Naturally, they will align with the gaming bill terms and conditions, and through tendering submissions, the winning casino company agrees with these stipulations. Over the years, I have been involved in bidding

Asia Gaming Briefings | February 2022

for Macau government public tenders (not the casino ones). The public tender can help clarify and remove uncertainties, through reinforcing government expectations and casino deliverables. With the publication of a bidding matrix and marking scheme this makes the tender process an important one. But beyond the actuals of the bill (i.e. 10-year license, six casino licenses, and so on), what interests me is the intent and sentiment implied and expressed throughout the gaming bill, and how the authorities will measure and score these - and ultimately ‘close the loop’ on these issues. Essentially converting a gaming

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bill into a governance document. In tandem, it will also be interesting to note the shaping of the casino company pitches - this time around. While not six ‘new’ casino companies, their submissions will differ from two decades previously (and noted that previously three were through sub-concessions). As such, it’s important to reflect back 20 years – I, and Jonathan Galligan (Deputy Head of Research, CLSA (HK)), wrote this almost a year back: “The Macau Government will keep to the game plan to have the tendering process in 2022 (sure with some months here and there to discuss with the industry and consultants). There are several moving parts, but this is a major policy issue - and as such, while there has been the Covid-19, the history of the last 20 years (revenues for example) and 20 years of reference, indicates the government will keep on schedule. The government has been examining this policy for some time already (terms and conditions) - so there is no need to wait.” (page 48. Macau fortunes. Customer evolution accelerates post-covid, CLSA Blue Book, G. McCartney & J. Galligan).

It was one amongst other predictions regarding Macau’s casino and tourism trajectory. Looking at two decades of casino development provides perspective on expectations for the next development cycle to mid-2030. For example, the original casino liberalization had limited metrics, or KPIs, to judge and steer gaming and non-gaming development over 20 years. In 2000, these were largely uncharted waters – the development of The Cotai Strip and the largest gaming economy and integrated resorts in the world. From time to time the government intervened, using mechanisms such as introducing new laws, regulations, and Executive Orders (e.g. providing credit, casino floor smoking ban). Themes such as non-gaming development, economic diversification, CSR, and oversight have been consistent (and not unexpected) from the casino license consultation to the gaming bill. Consequently, this will undoubtedly be illustrated further in the RFP/tendering process. In 2000, the Commission for the First Public Tender to Grant Concessions to Operate Casino Games of Chance of the

Macau Special Administrative Region, was temporarily created. It was made up of Macau civil servants with the aim of promoting the casino tendering process internationally, attracting bids, accepting requests for concepts/RFCs (a few of the scale models are still in the casino properties in Macau), and to finally judge the initial three winning casino tenders. Much has changed in 20 years. Another commission could be temporarily formed this time around as well to judge the bids. This time, the reality of Macau’s leading position globally in terms of gaming revenues is well-established, along with the physical reality of The Cotai Strip, the integrated resort projects, and neighbouring Hengqin Island. The public tender, an extension of the Macau Government’s position outlined in the gaming bill, will also see the winning tender documents adjusted to align with these. It is important for all stakeholders to be on the same page – given the ‘not to miss’ window of opportunity of ‘Macau 2.0’, as Hengqin Island and Greater Bay Area visions become a reality.

Asia Gaming Briefings | February 2022

NORTH ASIA

KOREA

Results highlight second year of pain for foreigner-only casinos South Korea’s foreigner-only casinos suffered another year of pain in 2021 with no meaningful reprieve in sight, triggering authorities on the island of Jeju to search for a lifeline for the industry.

Asia Gaming Briefings | February 2022

aradise Co. reported a 26.5 percent drop in 2021 revenue, while rival Grand Korea Leisure said its sales last year were down by more than half. Both operators said sales for December had seen some improvement. A travel bubble with Singapore came into operation in November, which allowed the quarantine-free return of vaccinated travellers. However, since then South Korea has again imposed strict social-distancing restrictions to stop the spread of Omicron, including a mandate that all bars and restaurants close by 9 pm. For 2021, Paradise said sales were KRW249.7 billion ($208.6 million) down from KRW335.9 billion the year earlier, which was less than half of its pre-pandemic levels. In December however, there had been a significant increase with GGR increasing more than three times over the prior month to KRW29.9 billion. Paradise runs the Paradise City IR in a joint venture with Sega Sammy, as well as the Jeju Grand, Paradise Walkerhill and Paradise Busan casinos. Grand Korea Leisure, which operates three casinos under the Seven Luck brand, said total annual sales were KRW89.58 billion ($74.7 million), with table sales of KRW74.3 billion, a decline of 54.1 percent. For December, casino sales gained 147.7 percent from the prior month to KRW10.13 billion, with table revenue soaring 259 percent. Jeju Island enjoyed a mini-tourism boom in 2021, welcoming more than 12 million tourists. However, the eight casinos saw little benefit as 99 percent of the visitors were Koreans who are not allowed to gamble. In 2020, gross gambling revenue plunged more than 60 percent to KRW69 billion and while figures for 2021 are not yet available, they are not expected to have shown much improvement.

NORTH ASIA 33

Five of the eight casinos remain closed. As a result, the government has been considering measures to help the sector. However, the one proposal that would have significantly improved the outlook – allowing Koreans who aren’t resident on the island to gamble - has been taken off the table. Felix Lee, senior associate of IGamiX Management & Consulting, said the authorities would not allow Koreans to gamble due to strong national anti-gambling sentiment and opposition from the Gangwon region, home to Kangwon Land. Kangwon Land’s High 1 is the only property in South Korea where locals can gamble, having been granted special dispensation under a plan to revive the local economy after its coal mining industry was closed down. The company generates more revenue than all of the other foreigner-only casino operators together and wants to guard its privilege for fear of losing income. Local media in South Korea has said authorities are considering allowing “non-face-to-face” gambling. Although the proposals have not yet been clarified, Lee said his understanding is that this refers more to proxy betting than allowing the casinos to accept online bets along similar lines to the Philippines. Either way, given the main source of clientele for Jeju’s casinos was Mainland China prior to the pandemic, the scheme may be a non-starter. “It will be ineffective, in conflict with the Chinese government’s policy of strongly prohibiting domestic citizens from gambling abroad.” On Jeju, only Landing International’s Jeju Shinhwa World, Lotte Group’s Dream Tower and Paradise Co.’s casinos are open. Jeju Shinhwa has benefited from its significant non-gaming attractions, which have helped to offset a steep decline in its casino revenue.

GROSS GAMING REVENUE GKL 2021 casino sales KRW89.5b Paradise Co. 2021 casino sales KRW249.7b Jeju casinos 2020 GGR KRW69b

-51.8%

-26.5%

-60%

Megaluck casino faces closure after hotel sale Jeju’s Megaluck casino may face closure due to the planned sale of the hotel in which it is located, according to local media reports. The casino is owned by Hong Kong-listed New Silkroad Culturaltainment. The casino is located in the Jeju KAL Hotel. New Silkroad said it posted zero revenue from its Jeju casino in the first half of last year, the most recent available figures. 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.

Midan City promoter in “restricted default” Guangzhou R&F Properties and its unit R&F Properties (HK) have had their issuer default rating cut to “restricted default” by Fitch Ratings following a debt exchange offer. The group is behind the Midan City Project in Incheon, South Korea. Fitch said it considered the recent debt exchange as a necessary transaction to avoid default, given the companies’ limited liquidity. However, the terms of the transaction have materially reduced those of the existing notes, with the price payable per $1,000 note reduced to $850 for immediate purchase. Otherwise the repayment period was extended by six months, with 50 percent payable on January 13 and the remainder on 13 July. Fitch warned in December that the transaction falls within its definition of a distressed debt exchange. The company has been caught up in China’s crackdown on the real estate sector and the subsequent liquidity crunch. Guangzhou R&F became the sole investor in the Midan City Project in Incheon after Caesars Entertainment, its operating partner, pulled out earlier this year. Caesars said it had sold its stake for the price of some barbecued pork. The project is currently stalled.

Asia Gaming Briefings | February 2022

SOUTH ASIA

INDIA

Delta sees bright future as pent-up demand drives record growth Delta Corp, India’s largest gaming group, sees a bright future as Covid restrictions ease after pent-up demand drives its latest quarterly results to record levels.

Asia Gaming Briefings | February 2022

SOUTH ASIA

he company, which runs three picks up that will expand revenue.” floating casinos in Goa, a property He also said that Goa was in a privileged in Sikkim and another in Nepal, position as it was already a favourite holiday said net revenue for the quarter destination for Indians, even before border ending December was 247.2 crore, up from closures elsewhere narrowed their travel options. 120.8 crore in the same quarter a year earlier. However, of the 7 million who visit the Total income from gaming operations state, only about 2 million venture into the came in at 249.6 core, compared with 97.5 casinos, he said, adding that indicates a large crores the year prior, while income from untapped market. the online business was lower at 35.7 crore The company is also replacing one of its from 40.45 crore. smaller vessels in Goa - the Deltin Caravela It posted a profit attributable to owners - with a new boat that will increase capacity of the company of 70.38 crore up from just by about 2.5 times, which will also address 1.28 crore in 2020. the problem of overcapacity at peak times. Chief Financial Officer Hardik Dhebar “In a blue sky scenario there is a lot of said the revenue and EBITDA were historical room for growth,” he told the news channel. records for the quarter and that there are Despite his upbeat projections, it hasn’t all numerous drivers for further growth, pandemic been plain sailing for the operator. The Goa restrictions permitting. state cabinet recently said it has deferred the The company’s Goa operations were decision to set up an investment promotion closed from the third area in Dhargalim, Goa, where week of March last year, Delta Corp is planning to though to October. Sikkim build an integrated resort. was allowed to open from The cabinet decided to In a blue August 16th, while Nepal defer the decision after an resumed operations from objection from Pernem MLA sky scenario September 8th. and deputy chief minister there is a lot The rapid spread of Manohar Ajgaonkar, who Omicron led to the redid not want casinos in his of room for imposition of operating constituency. growth. restrictions in Goa, which The company is looking can only operate at half to set up an integrated resort capacity. However, after over 30 hectares at Pernem, rapidly spiking upwards which industry observers over the Christmas period, infections in have said would be a game changer for India, the main cities of Mumbai and New Delhi introducing the first true land-based IR. have seen a sharp decline with very few The project includes three hotels, a hospitalizations. convention center, and cinema, retail area, As a result, Dhebar said he expects water park, banquet facilities, and a children’s Covid to slow the speed of growth in Goa entertainment area. at the beginning of the year, but won’t derail The application to set up the integrated it altogether. resort in Dhargalim in Pernem was sent He told BloombergQuint in an interview by Delta Corp in December 2019, which that Covid had finally led to a shift in included a request for the Goa Investment gaming behaviour in Goa, which he hopes Promotion and Facilitation Board to notify might ultimately lead to increased revenue. the area as an investment promotion area. Traditionally, the Indian players had The board granted an in-principle only come into the casinos after 7.30 p.m., approval to the project in October 2020, despite the properties being open all day whilst the recommendation to set up an long. In early January, the state imposed investment promotion area was given on a night time curfew from 11 p.m, which September 1, 2021. has encouraged players to visit during However, an objection was filed by the daylight hours. group under the Calangute Constituency “It’s a culture we’ve been trying to build, Forum on December 15, 2021, saying that as if you go to Hong Kong, or Singapore the in-principle approval for the project was or Vegas it’s 24 hours,” he said. “At present not in the interest of the Pernem people, we’re only operating 50 percent of the 24 particularly those of the Dhargal village hours in the real sense of the term, so if it and the state at large.

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DELTA CORP DEC. QUARTER VS PRIOR YEAR (units in crore)

REVENUE 247.2 VS 120.8 GAMING OPS. INCOME 249.6 VS 97.5 PROFIT 70.38 VS 1.28

Tamil govt. pursuing online gambling ban The Tamil Nadu government is reportedly still committed to ban online gambling in the state, including games of skill, online rummy and online poker, even though such a ban was struck down by the Madras High Court last year. Tamil Nadu Chief Minister M K Stalin said there will be an end to online gaming with stakes “soon” when responding to a question raised by a fellow politician. According to local reports, Stalin pointed out that cases related to online gaming are pending in the Supreme Court and that his government will follow a legal route towards ensuring a ban. The state government imposed the ban last year following concern over residents committing suicide after losing money. It was challenged by skill-based online gambling firms, who won their case in the high court.

India aims for top tourism spot by ’30 India has launched a new tourism policy that aims to put the country in the top five international tourism destinations by 2030. The plans include increased direct air connectivity, a mobile app for e-tourist visa applications and the creation of special tourism zones. “Idea is that post pandemic, if the tourism sector has to be strengthened, then there should be a long-term vision. There are five main features in the policy, which we will take up as missions. The policy has been circulated among the ministries and state governments; after examining feedback from them, the process to notify the policy will be expedited,” Rakesh Kumar Verma, additional secretary, ministry of tourism, was cited as saying by local media.

Asia Gaming Briefings | February 2022

AUSTRALASIA

AUSTRALIA

Regulation, staff issues to create 2022 headaches Australia’s gaming industry moves into 2022 facing multiple headwinds, with rising Covid cases, staff shortages and another expected round of regulatory scrutiny. Asia Gaming Briefings | February 2022

o recap, last year saw the Bergin Inquiry in Sydney find Crown Resorts to be unsuitable to hold a license for its Barangaroo property, while a Royal Commission probe in Victoria came to the same conclusion regarding its flagship in Melbourne. The company is now awaiting the results from yet another Royal Commission in Western Australia, which is due to report early this year. However, after hearing the same series of allegations regarding its lapses in corporate governance, it’s unlikely it will be spared the same verdict. “There has to be fundamental change to the way Crown is operated and probably fundamental change to the appropriate level of oversight for a major gaming operation like Crown and some of the other casinos in Australia,” said Fred Gushin, managing director of Spectrum Gaming Group. Crown’s rival, Star Entertainment, is also expected to come under the regulatory spotlight with inquiries into its business. On top of that, the country’s top moneylaundering watchdog is also expected to report the results of its own investigation. In June last year, the Australian Transaction Reports and Analysis Centre (AUSTRAC) announced it was looking into the practices of Crown Resorts, Star Entertainment and New Zealand’s SkyCity Entertainment, which also runs a casino in the country. The powerful regulator has the ability to levy high fines, or restrict license conditions. The operators said they had been informed that AUSTRAC was concerned with their management of “customers identified as high risk and politically exposed persons.” “Their sanction, whatever that sanction is, could be very significant,” Gushin said. “If you follow the example of other sanctions around the world, it’s going to be meaningful and significant given the factual predicate that was given out in the New South Wales and Melbourne decisions.” Since the inquiry was announced, Australia’s operators have stopped doing business with junket agents, which were at the centre of regulatory concerns. It’s not just the casino operators who are in the spotlight. Shortly before Christmas the New South Wales Crime Commission announced it was launching a dedicated inquiry into pokie machine money laundering allegations in the state. It comes after calls from Independent Liquor and Gaming Authority chairman Philip Crawford for a “royal-commissionstyle” inquiry into the state’s slot machine industry – which is alleged to have laundered as much as A$1 billion (US$714,000).

AUSTRALASIA 37

As was the case with both Crown and Star, the allegations didn’t originally stem from the regulators, but came about following investigative reporting by The Age, Sydney Morning Herald, and 60 Minutes in November. NSW Crime Commissioner Michael Barnes has called for members of the public, whistleblowers and academics to make submissions to the Electronic Gaming Machine Inquiry. “As part of the inquiry, the commission is calling for submissions regarding the nature and extent of money laundering through licensed venues in NSW. Members of the public, academics with an interest in the area, current or past employees of pubs or clubs are invited to make submissions which can be kept confidential if desired,” he said. The Crime Commission’s actions have been backed by NSW Premier Dominic Perrottet. “Money laundering and organised crime are completely unacceptable in any form. The NSW Crime Commission has the full backing of the NSW Government as they launch this inquiry,” Mr Perrottet said. “Pubs and clubs play key roles in the fabric of their communities and so recent reports highlighting how organised criminals are laundering money through poker machines are deeply concerning. The Commissioner will work in collaboration with the Independent Liquor and Gaming Authority and the Australian Criminal Intelligence Commission.” The Commissioner has released terms of reference for the inquiry and called for public submissions to be made by 28 January 2022. On top of the regulatory burdens and rapidly rising Covid in Australia, the industry is also grappling with serious staffing shortages. “It’s a significant problem,” said Coskun. “Given that people worked from home during Covid and got used to a certain lifestyle, going back to shift work in a smoky dingy club is not that appealing. They will definitely have to offer higher wages and that will affect their bottom line.” Australia already had among the highest staffing costs in the industry. Prior to the pandemic, Star Entertainment Group had staffing costs of $690.9 a day per table and $18.4 per unit per day for its electronic gaming machines. The figures only include dealers and slot attendants and don’t include supervisors or other floor staff. That compares with an average of $448 per table in Macau and $13 per slot machine and around $575 per table and $18 per slot in Las Vegas.

Crown gets second $1m fine from Victoria regulator Crown Resorts has been fined $1 million by the Victoria gambling regulator for non-compliance with its regulatory obligations regarding junket operations and for disobeying an order to stop doing business with one agent in particular who was deemed as unsuitable. It’s the second $1 million fine that the operator has received from the Victoria Commission for Gambling and Liquor Regulation (VCGLR). This one related to events in 2015 and 2016 and does not form part of the more recent probes into the company. The regulator said Crown failed to terminate its relationship with the junket and its associates, despite being formally told to do so. It failed to do adequate due diligence with respect to an associate of that operator and failed to notify the commission of that associate, as a new non-resident junket, before she began her junket program. The names of the junket operator and the associate were not disclosed.

Donaco repays Megabank loan on schedule Donaco International, which operates casinos in Vietnam and Cambodia, said it had completed the repayment of $120 million in borrowings with its creditor Mega International Commercial Bank according to schedule. The Australia-listed company originally borrowed A$131.4 million ($100 million) in 2015. It then redrew ($26.3 million in 2016 and refinanced $74.9 million in 2017. The final instalment of $1.8 million was repaid in December. “The company continues to preserve a robust balance sheet and maintain prudent cost controls as it awaits for the Covid-19 pandemic to ameliorate in Vietnam and Cambodia,” it said. Donaco operates the Aristo International hotel in the far north of Vietnam and the Star Vegas property in Poipet, Cambodia. Both have been hit by border closures and local lockdowns.

Asia Gaming Briefings | February 2022

AUSTRALASIA 38

SAIPAN

IPI battles on in Saipan despite mounting legal woes, zero revenue Saipan’s efforts to resurrect its casino industry and rid itself of the incumbent operator have hit another hurdle, with the regulator saying that stripping Imperial Pacific International of its license would be unconstitutional.

ong Kong-listed Imperial Pacific was given the monopoly over casino gambling on the island in 2014. However, its efforts to finalize construction of its casino have met successive delays and numerous problems leading to mounting lawsuits against the operator. Its license has been suspended indefinitely since April last year for failure to pay fees to the government and the casino has been closed since March 2020. At the time, IPI was ordered to pay $18.4 million in annual licensing and regulatory dues, as well as more than $6 million in fines. But the company has taken its battle to the courts. It’s contesting the need to pay the

As a U.S. “ jurisdiction,

Saipan’s opportunity is strong to be a good gaming market in the Pacific.

”

fees, saying that the Covid pandemic, which brought business to a standstill, should be considered a “force majeure.” It has filed a petition with Saipan’s Supreme Court, which has yet to rule on the case. With no resolution, in October last year frustrated lawmakers sought to take action to strip IPI of the license and instead introduce a bill that would open the market to as many as five operators. To “better provide for the retirees and

Asia Gaming Briefings | February 2022

obtain the goal of increased stability and dependability, we must move away from the current single licensee framework that is totally dependent on one business entity,” the bill states. However, Casino Control Commission head Andrew Yeom, who backed removing

the license, now says the act would be unconstitutional as a local bill cannot supersede Commonwealth law. It’s yet another wrinkle in the ongoing saga and industry consultants said it’s high time for some tough decisions from lawmakers. Aside from failure to pay the fees, the operator has

AUSTRALASIA 39

shown itself to be unsuitable to hold a license, with widespread concern over its AML practices, labor law violations and general governance. “The stakeholders in Saipan are at a crossroads. The only logical answer is to understand what a path forward looks like that would bring the market into regulatory compliance and an operator that understands the market and desires to operate within those regulations,” Global Market Advisors Partner and Director of Government Affairs Brendan D. Bussman recently wrote for AGB. “As a U.S. jurisdiction, Saipan’s opportunity is strong to be a good gaming market in the Pacific. It is up to the stakeholders to decide if they want to take the steps to craft a better market for the future.” The way forward, however, is far from clear. While lawmakers were thwarted in their efforts to strip IPI of its license, the company also managed to win a last-minute reprieve

that would have seen its assets auctioned off to pay creditors. The company’s gaming equipment was put on the auction block in October to raise money to pay back a debt to contractor USA Fanter Corp. However, IPI managed to raise $2.45 million in a “supersedeas” bond to stay the liquidation of the assets pending an appeal. IPI has now been given until the end of January to settle this case, though many others are in the pipeline, including one to a company that provided portable toilets to the construction site. For the six months to June last year, the most recent available figures, the company posted no revenue and said its loss had narrowed to HK$359 million from HK$798 million. However, it has also taken impairment charges on its assets of HK$4.46 billion. IPI has still not filed its 2021 annual report with more detailed financial information.

CNMI DECEMBER VISITOR ARRIVALS 52,297

2,390

2021

177

2020

2019

Japan travel bubble delayed due to virus resurgence Marianas Visitor Association Managing Director Priscilla Iakopo said a planned travel bubble with Japan was delayed due to increasing Omicron cases in that country. “Due to the omicron variant, we are closely monitoring other source markets such as Japan as the daily cases in Tokyo, Japan are increasing,” she told local media. The travel bubble had been expected to launch in mid-December to early January and the timing for any resumption in travel between the two countries is now uncertain.

Omicron derails tourism resumption plans The spread of the Omicron variant has derailed the Commonwealth of Northern Mariana Islands’ Travel Resumption Investment Plan. Several South Korean airlines, which had resumed flights to Saipan under a travel bubble arrangement, cancelled their operations for January. According to local media reports about 27 percent of bookings under the bubble have been cancelled. In October, the Marianas Visitors Association had expected 7,794 visitors under the plan in 2021, however, as of Dec. 16, it had only seen 4,834 visitors. South Korea is one of the most important overseas travel markets for Saipan. The islands began welcoming visitors from the country in July last year.

Asia Gaming Briefings | February 2022

SUPPLIER SPECIAL REPORT 40

2022 still ripe for the return of global gaming shows Whilst the latest Covid-19 strain has forced certain large-scale gaming events further down the calendar, the industry remains optimistic for the return of some of our most-missed global gaming shows, including Clarion’s ICE Totally Gaming, not to mention our very own ASEAN Gaming Summit 2022.

hough some countries have reimposed restrictions, most have remained steadfast in keeping their borders (and economies) open - showing just how far we’ve come since the early months of 2020. Our industry is on the same page, it appears. Though some business may have slowed, our supplier special report is evidence that our suppliers and

Asia Gaming Briefings | February 2022

service providers are not slipping quietly into the night this time. We are finding that many have continued to stay productive and stable despite the pandemic, adding new products, services and new partnerships to their arsenal, entering new regions and markets. We expect the second half of 2022 to be a busy time for networking and global gaming shows.

SUPPLIER SPECIAL REPORT 41 1XBET

Influencing the game in Asia

eading bookmaker 1xBet continues to expand its presence in one of the largest markets in the betting industry - Asia. Millions of potential players and the huge prospects of this region attract the attention of all top betting brands. In the last month alone, 1xBet has made a number of exciting deals and introduced several innovations that are aimed at the Asian market. 1xBet has announced a partnership with Myanmar’s first brand ambassador, Aung Thu Lwin, better known as Kalvin Kate. The popular influencer signed an agreement for a year, with the possibility of an extension. This collaboration aims to promote the brand and at the same time delight the Kalvin Kate audience with even more quality content. The endeavour is already yielding results, with the blogger’s new projects causing a stir, inspiring positive feedback from the audience and 1xBet players. Esports is one of the most popular betting trends in the Asian market. 1xBet understands this very well, and this is confirmed by cooperation with such giants as ESL and WePlay. Previously, 1xBet also signed an agreement with Yangon Galacticos, one of the most popular esports teams in Myanmar. But the bookmaker did not stop there and is now concluding a cooperation agreement with the famous Myanmar streamer Shinelayz. His Facebook audience of millions will soon have even more opportunities to watch the most interesting tournaments. The partnership with Shinelayz is a natural

development of the esports sector, which is one of the most important for the brand. 1xBet players from many Asian countries have already tried out a new product feature on offer - an online consultant that will help you find the answer to any question. Now players have access to a huge, but at the same time convenient and structured, knowledge base in which the brand has collected all the necessary information to use the product. This database is compiled to answer the

most common questions that customers ask support managers. This feature saves significant time and allows the player to easily figure everything out on their own. However, in parallel, the user can still ask support staff questions and get the fastest possible answer - this function has not disappeared. The user can ask for help by going to the brand’s website and clicking on the “Ask a question” button in the lower right corner.

ALPHASTREET

Productive and stable despite Covid

espite the pandemic, the factory was operating normally in 2021 and the company has been investing in the development of new gaming cabinets and software solutions, which we are eager to present at upcoming gaming shows. There were also no changes to sales and service support, since we understand how important it is for operators to be able to reach them anytime, 24/7, especially when many of them were opening and closing gaming halls and casinos on a monthly basis. On the whole, Alfastreet was able to maintain stable operations. On the development side, the number of active projects was quite intense, because

Alfastreet wanted to be as productive as possible during the pandemic to be able to show all the novelties at the upcoming gaming shows. The company also hopes that G2E Asia will go ahead. G2E Asia is certainly a very important show for Alfastreet and preparations began months ago. CEO Tjasa Luin Peric said: “The managing of the company was not easy in the last year and we were facing many challenges on different levels, but with the knowledge, experience and dedicated employees we were successfully fighting against pandemic obstacles. In these chaotic times, we learned how to become stronger.”

“We really hope that Covid-19 cases start slowing down in the first quarter of the year and we will be able to travel again all over the world, since we are really looking forward to finally meeting with our partners, customers and friends. Our products are allocated in the most famous and remarkable casinos in Asia and it is certainly our priority to stay focused on the operators’ demands and continue offering the highest quality of ETG’s on the different markets. Our goal is not to lose focus.” Alfastreet remains positive and prepared for growth and believes that together with distributors and partners, it will be able to successfully cover demand from different territories.

Asia Gaming Briefings | February 2022

SUPPLIER SPECIAL REPORT 42 BETCONSTRUCT

BetConstruct adds new poker type Badugi

o help partners boost player engagement on their websites and introduce diversity to the Poker line, BetConstruct has launched Badugi.

Badugi will be of high interest for operators who seek better positioning and spread in the Asian market. This new variant of draw poker

is similar to Lowball, yet significantly differs with its hand ranking system. With its customisable game view and flexible tournaments for Spin&Go, Sit&Go and KnockOut tournament types, Badugi has a full potential of attracting amateur players as well as true poker enthusiasts. The game is available on the web, mobile and in the app in various languages. The brand new addition of Badugi will easily increase the customer base and guarantee long-term success for BetConstruct’s partner operators. Those having BetConstruct’s Poker in the global network can enjoy Badugi by default, while others already have the possibility to activate it and expand their reach.

DALLMEIER

Smart systems to mitigate risk

allmeier, a leading manufacturer for video information technology, is the “Exclusive Platinum Sponsor” of the World Game Protection Conference 2022 at the Tropicana Las Vegas from 15 to 17 February 2022. Dallmeier’s open software platform HEMISPHERE SeMSy is the focus of the company’s presence at the exhibition event. The World Game Protection Conference (WGPC) focuses on “threats, vulnerabilities and risk to casino operations.” This includes current and future challenges for the casino industry, such as compliance with stricter requirements of regulatory authorities, or handling criminal behaviour proactively. With over 20 years of experience in the market of video security and data management for casinos, Dallmeier’s solutions promote secure, advanced casino operations all over the world. Casino operators can use Dallmeier’s open software platform HEMISPHERE SeMSy for improving their security, surveillance, and business processes: Acting as a “data broker,” it enables the integration and processing of data from various third-party security and casino systems: Access control, intrusion detection or fire alarm, as well as slot data systems, point-of-sales, smart shoes, or RFID readers. This allows casino operators to gain three major benefits: First, employees in different departments can use individual widgets to provide them with personalized, functionoptimized tools for completing their tasks. Sophisticated features such as 2D and 3D maps with “Active Elements’’ or pre-defined standard operating procedures (SOPs), guarantee effective

Asia Gaming Briefings | February 2022

response in the event of incidents and alarms. Second, by syncing surveillance cameras with the events of the integrated systems, security and surveillance staff can verify them instantly and take further actions if needed. This means, it doesn’t matter anymore how quickly the staff can fast-forward or rewind in their video management software. And third, operators can create a “digital incident file” containing videos, notes, reports, and other information with just a few mouse clicks. As a result, casinos become much more effective against security threats and can efficiently satisfy compliance requirements

imposed both in-house and by external bodies (e.g., regulatory authorities). “Using Dallmeier’s HEMISPHERE SeMSy platform, many of our customers report enormous time savings for their surveillance tasks such as locating a person of interest in less than three minutes instead of over 20 minutes,” says Marcel Zangger, Vice President, Operations Dallmeier USA, Inc. “The smart combination of cameras with events of various third-party systems allows casino operators to act much more proactively – verifying events in real-time and thus mitigating the risks of undesirable activity.”

SUPPLIER SPECIAL REPORT 43 DR GAMING TECHNOLOGY

Driving operator efficiencies

ny business operation, whether it be private, non-profit, listed, or otherwise has every intention to operate as efficiently as possible – striking a balance between meeting customers’ needs and expectations and the cost associated with at least satisfying those

needs and exceeding those expectations is the never-ending challenge. As we all do our best to manage and navigate the current status-quo and the on-going closing and then opening of land-based casinos, the above ‘balancing act’ has become even more

challenging; as our resources and our players’ time, get restricted. Our system-driven jackpot technology, we believe, addresses both of these challenges and in so doing enhances the player experience and drives operator efficiencies: As part of our casino management system, our jackpot solution can operate on top of existing EGM inventory and as such is less expensive to acquire and operate As it is driven via our integrated Casino Management System (CMS), it affords operators the flexibility to individually serve any number of jackpot configuration options to specific players or types of players, based on those players’ individual game play activity, therefore offering players more ways to win more often. Historically, operators would purchase or lease a jackpot system, with its own patented theme, game and machines and as such be limited to the configuration options and parameters defined by that manufacturer. Whilst that is all well and good, players today are searching for and expecting to find multi-level jackpots and features on every game; a scenario that places pressure on operators and standalone jackpots and prescribes the requisite evolution to also include system-driven jackpots. With a multitude of configuration and theme options that can all be designed and executed in-house in real time at the casino, and the ability to easily and cost effectively integrate our jackpots into existing EGMs on the casino floor – our system-driven jackpot technology is a win-win for players and operators alike.

GARY PLATT

Adding comfort to hospitality

ary Platt Manufacturing is on a mission to bring the legendary and unsurpassed comfort of its casino seating to hospitality with its new Sierra Nevada Hospitality line. More than comfortable, every chair in the collection is pure luxury and pillow soft, for the most lavish sit operators can provide throughout the property – banquet/convention, bar, dining, office, and more. Like its casino chairs, Gary Platt handcrafts each hospitality chair to each individual customer’s exact specifications. There are hundreds of models in the Sierra Nevada Hospitality line. Some highlights include

the Classique Barstool with clean lines, a square back and seat, and an intricate, customizable back. The Chivari is a classic wedding-style chair with an open back and a seat enhanced with Gary Platt’s foam. In addition to being comfortable, the Forum banquet/convention chair is highly durable, stackable, and easily moveable. The Pesaro dining chair elevates the experience in any dining room. Classic lines, an extended back and square shaped seat make the Pesaro a perfect, flexible option. If hospitality is about making people comfortable, why aren’t hospitality chairs more

comfortable? Now they are in the Sierra Nevada Hospitality collection from Gary Platt. Visit garyplatt.com/hospitality for more information.

Asia Gaming Briefings | February 2022

SUPPLIER SPECIAL REPORT 44 GLI

Setting the standards for online testing

nline gaming is growing in leaps and bounds all over the world. As jurisdictions seek to respond to consumer demand, suppliers have responded with a fantastic range of online gaming solutions. GLI has created several standards that help both suppliers and regulators in the development and deployment of online gaming, and testing plays a key role in the larger compliance assurance process. Arguably the Random Number Generator (RNG) is the most important component of an online gaming system, as it is a critical method for game outcome determination. Full, quality testing of RNGs is essential to ensure non-predictability, that no biases exist

toward certain game outcomes, and to boost consumer confidence. GLI has the most experienced and robust RNG testing methodologies in the world. This includes software-based (pseudo-algorithmic) RNGs, hardware RNGs, mechanical RNGs, and hybrid combinations of the previous ones. An RNG Test Suite is applied for randomness testing of the RNG intended applications. Moreover, our analysts perform source code review to make sure all jurisdictional requirements are met. GLI uses custom software written and validated through the collaborative effort of inhouse mathematicians and industry consultants.

GLI’s RNG testing is part of the company’s integrated approach to compliance, which encompasses four crucial areas: regulatory compliance, technical compliance, end-to-end testing, and full lifecycle compliance. With this approach, GLI’s customers are better prepared to navigate the future of gaming with confidence. Visit gaminglabs.com for more information.

HABANERO

Pioneering in newly regulated markets

ith Habanero seeing record numbers and entering several key markets over the past year, as well as the acquisition of our MGA licence, 2021 was a crucial year for us and we expect to capitalise on the growth we saw in the months ahead. Having prepared for entry into newly regulated markets in Latin America, Africa, and Europe, and kept a close watch on the US, we anticipate seeing the results both financially and in terms of footprint as we

Asia Gaming Briefings | February 2022

introduce more players than ever to the wonderful world of Habanero The promise that the US market holds is very exciting to us; it is entirely new, and as is the case with most new markets, there is an attractive opportunity to become a pioneer in a newly regulated space, which is what makes other emerging markets like the Netherlands so exciting. Looking ahead to the coming months, we expect to see more operators investing in

the peripherals of slot products, such as the storytelling aspects and community features that help players to interact with each other. The launch of our in-house UP! Tournaments has also been a resounding success, already processing over 1 billion entries within the first two weeks of the tournament release in October. Modern players expect more entertainment and rewards from casino products than ever before, which means it is imperative for the industry to explore new concepts and investing in these peripherals often results in the creation of a healthy business model that can retain a healthy audience. We’re immensely proud of our tier-one supplier status, with a truly dedicated focus on servicing our global partner base – so much so, we consider ourselves one of the most pro-active slots and table games suppliers in the industry today. Our latest slot release Lucky Durian embodies this, arriving complete with vivid visuals and engrossing sounds that are guaranteed to maximize player entertainment and engagement. The fruity-themed adventure features delicious durians as Wild symbols, which can expand and lock on the screen, and with 15 paylines that pay both ways, the title is guaranteed to provide hours of fun and plenty of opportunities to win big. Our key to standing out has always been providing consistently outstanding content that ticks all the boxes, and our audiences can expect more of the same from us through 2022 and beyond.

SUPPLIER SPECIAL REPORT 45 IDX GAMES

All-board for booming business

ith Macau seeing some clarity with its regulatory landscape, its likely business models need a rethink to stay competitive. Specifically, casinos will need to find ways to capture new demographics in the mass market. In some ways, this bodes well for IDX Games, as our modular intelligent table product, X-Tables, is built for capturing mass segments. X-Trend, for example, is proving to be a beacon for younger players on the tables, as it

brings more entertainment and statistically higher player engagement to table games. Late last year, we launched X-Trend to the Hong Kong (and ‘Macau player segment” when we went live on a regional cruise ship. It was gratifying knowing that we do indeed bring some new excitement to baccarat that not only helps younger players to enjoy the game, but also proves a talking point for well-heeled gamblers. Business aboard has been booming, since travel restrictions entering

Macau were in place. Our computer vision module X-View, among many benefits, basically adds a set of ‘audit meters’ to the table, allowing more accurate measurements of the game and cashflow data. The GUI proves beneficial for real-time analysis and compliance, which is something Macau and other markets may look to improve. We are also working on a series of in-game features and bonusing never seen before, which are gaining interest. With both IDX and idNerd this year we’re offering a ‘one-stop shop’ for creative digital solutions, like immersive art and interactive content, to consultation on digital hardware, working with many tier-1 LED vendors. The aim here is to ensure we deliver the correct canvas and the best content to wow audiences at a competitive price. We have some exciting projects on the go with a few luxury brands in Hong Kong that utilize the latest interactive technologies, and in discussions with a USA distributor, to introduce our innovative gaming products to new markets.

IGT

Adapting and delivering solutions for the future

“I

GT is continuing to adapt to ‘new business normal’ across Asia to deliver business growth and support for our customers,” said Michael Cheers, IGT Sales Director for Asia. “During 2021, we have continued investing in innovative game development, released IGT ADVANTAGE system updates and grown our game portfolio.” Cheers continued: “Our Ying Cai Shen link has performed solidly throughout 2021 and building on this success, we’ve recently hosted two launch events for this product in Macau with players enjoying the exciting WILD feature that’s proved popular with this game.” 2022 will see IGT launching a number of innovations across Asia, including a series of new, locally developed links, including Ying Fu Wa, which takes game play ‘a step beyond’ offering players the chance for extra wins and bonuses. We’ll also be releasing new hardware for our future products. On the systems front, operators are looking for new technologies to help their businesses adapt and grow. There has been a strong adoption of our IGT ADVANTAGE Intelligent Bonusing products, which enables casinos to deliver bonuses floor-wide or for defined player

types – all set by the operators to drive greater patronage and player loyalty. IGT’s Mobile Host provides operators with the ability to customize their service and loyalty offering to players, providing one of the best go-to-market solutions for venues. It allows delivery of bonuses during play and sends promotional offers to players’ mobile phones while on the casino floor. Plus, operators can identify new and existing players and proactively enrol uncarded players. And let’s not forget the players who are

seeking greater convenience when it comes to engaging with loyalty programs and transferring funds between gaming machines and paying for entertainment within the property. IGT’s Resort Wallet product is the perfect solution for these players. Overall, we are very optimistic and excited with what 2022 will bring to gaming across Asia and IGT looks forward to delivering our tailored solutions for the future.” For more information about IGT, please visit www.igt.com

Asia Gaming Briefings | February 2022

SUPPLIER SPECIAL REPORT 46 INTERBLOCK

Asia Pacific expansion despite Covid

hat a turbulent year it was as we count down the days to celebrate Lunar New Year 2022. In amongst the negative impact of COVID-19 wreaking havoc and creating countless human and economic costs worldwide, Interblock is not immune. However, through determination and great support from our operators, we have achieved some notable achievements throughout the Asia Pacific region in both sales and lease opportunities. At the end of 2020 and early 2021, a 64-seat ETG stadium went live at Kangwon Land Casino, South Korea. By September 2021, a 24-seat ETG stadium with a Diamond Roulette 8 and 9 Universal Cabinets went live at Grand Lisboa Palace, Macau. In addition, over 175-seats of G4, G5, Starbar, and Universal Cabinets were added to the Philippines at Winford Manila, Royce Hotel & Casino, NUStar Resorts & Casino, Resorts World Manila, Okada Manila, COD Manila and most recently at Hann Casino Resorts in Clark, coupled with over 30 seats in Cambodia. Through Interblock’s continuous innovations, we will see a new and improved graphical user interface under the code name “Global Version (GV)” roll out to more regions. The

GV allows the flexibility for the player to select from a suite of games to play up to 4 games on split screens at the same time, as well as more

features such as Dual Roulette, Golden Ball Mystery Progressive, Tournament for Roulette, Baccarat & Blackjack, to name a few.

JADE

Game-changing bonuses and exotic jackpots

ade SportsBet, the fastest growing online and land-based sports betting provider in the Philippines, welcomed 2022 with special offers to its growing customer base. With the ongoing NBA season, JSB is pulling off the best margins and is excited to launch a new free-to-play platform where patrons can enjoy playing basketball mini-games. With the highly anticipated grand slams, Jade SportsBet started offering multiboost which gives players additional winnings with more selections. And with the PHP1,000 sign-up bonus, it has positioned itself as the game-changer offering bonuses like no other. Equally as exciting from Jade is its online sabong, which has a new series of fights in three different locations. Jade Sabong is expected to give nonstop cockfighting action in partnership with Rooster Gaming Inc. This is a strengthened effort to bring remote gaming closer to the traditional players. As the community quarantine continues to ease up as everybody gets vaccinated, the

Asia Gaming Briefings | February 2022

local government has allowed the resumption of cockfighting operations in different parts of the Philippines, but is strictly enforcing and implementing minimum health protocols. It’s a good indication that 2022 will be better and that the industry is slowly getting back in shape.

CEO & Founder Joe Pisano said; “These are just a few of the many promotions and bonuses that Jade SportsBet and Jade Sabong have prepared this year. We are also planning to roll out more entertaining exotic jackpots, something new to the Philippines and to watch out for.”

SUPPLIER SPECIAL REPORT 47 JCM

Providing a full technology roadmap

n 2022, casinos of all sizes need a true technology partner who can listen to their needs and collaborate with them to develop a roadmap with meaningful solutions that will help the property enhance the guest experience, increase efficiencies, and boost security, today and into the future. While each customer’s needs are unique, JCM Global’s (JCM) technology roadmap starts with its core product suite, which comprises the award-winning iVIZION bill validator, GEN5 Thermal Printer, and ICB Intelligent Cash Box system. These essential tools establish a powerful foundation from which to build a larger technology infrastructure. Using iVIZION and GEN5 as a launching pad, JCM’s FUZION is a milestone in total casino peripheral management that boosts security by continually monitoring every peripheral device in each EGM in real-

time, protecting against suspicious activity. FUZION is built with a hyper-encrypted data superhighway for fast, secure communication between devices and CMS. The new ICB ASAP is a network of four robots and industry-standard automation devices and automates the count room, dramatically enhancing productivity in four crucial areas: reducing human contact, strengthening security, improving throughput, and increasing reliability. Leading count/sort equipment from Cash Processing Solutions (CPS) and CPS’s ECM software is a complete count room solution proven to increase cash box processing speed and reliability, bring more visibility over the operation, and enhance security. The software integrates with ICB so that all asset details and cash box contents are communicated directly to the CPS software. A full casino technology roadmap from JCM will position operations of all sizes for success. What else would you expect from the gaming industry’s 3rd largest systems provider and a company born from innovation? Contact JCM for more information.

JUMBO

Multiple products in the pipeline

ast year was harsh for a lot of companies in a lot of industries. With the numbers of positive Covid cases remaining high, numerous casinos around the world were forced to shut down for a period of time or

even for good. With casino revenue being down compared to previous years, machine suppliers like us face a greater challenge to supply an even more unique product to impress the operators in order for them to

want to have the product. Jumbo has definitely outdone the industry in producing distinct and extraordinary games since the pandemic. From the Long Yi Fa slot game to the Ocean Phoenix Fishing game to the J-Multi Series, the Jumbo family product line has still made its entrance into various casinos since the pandemic. Not to mention that the Ocean Phoenix fishing game attracted significant attention at 2021 G2E Vegas and is now live in US casinos. Furthermore, Jumbo is proud to announce that all of its products mentioned above have received Taiwan Excellence Awards in 2021. Like the saying, “what doesn’t kill you makes you stronger,” Jumbo did not get beaten by the pandemic but became stronger than ever. Being one of the top gaming suppliers in Asia with 22 years of experience, Jumbo is ready to take on any future challenges. They have multiple projects lined up for production and guarantees to continue bringing amazing and entertaining products to customers all around the world.

Asia Gaming Briefings | February 2022

SUPPLIER SPECIAL REPORT 48 MICROGAMING

Microgaming celebrating 15 years in Asia

icrogaming is one of the leading content providers in igaming. Having developed the world’s first true online casino software in 1994 and the first mobile casino software in 2004, Microgaming boasts an ever-growing portfolio of innovative games and products and continues to expand its footprint in emerging markets across the globe. Awarded the Guinness World Records title, Microgaming’s progressive jackpot network is the largest globally and has paid out more than EUR1.5 billion to date. In October 2021, a player in Asia triggered Microgaming’s Wow Major jackpot, scooping an enormous prize of $235,000, a true testament that the winning experience with Microgaming is possible anywhere, and for anyone. Pioneering igaming technology to the next level, Microgaming provides its partners with a highly immersive player experience with the effective player retention and growth tool, MG Rewards. MG Rewards is proven to expand player lifetime value and increase profit growth for partners. The extensive promotion tools such as tournaments, retention and multi-currency support are integral to enhancing players’ gameplay experience. MG Rewards offers fuss-free and continuous bespoke promotions for partners to generate a solid and loyal player base. Understanding what appeals to players

is crucial when looking to attract and retain players, and Microgaming undertakes considerable market research to ensure that all of its products and game features are designed to amaze and delight players. As a true leader in slot game innovations, Microgaming introduced the Buy Feature, which allows players to buy straight into free spins for instant, massive win potential. Games such as Lucky Twins Wilds and Break Da Bank Again Megaways are hugely popular, delivering thrilling and action-

packed gameplay. In 2022, Microgaming celebrates a glorious 15 years in Asia and the group is not resting on its laurels. Establishing more localized content, Asia-driven game innovations, promotions and campaigns, Microgaming works with partners to understand the demands of some of Asia’s most lucrative markets. With its dynamic specialist team dedicated to client success and satisfaction, Microgaming seeks to remain at the forefront of iGaming and slot game innovation for years to come.

Love Joker’s visuals are overtly romantic and fe ature a captivating g yros cop e background that moves throughout the game, which complements the theme and pace of gameplay. Simply beautiful. Tales of Asgard: Freya’s Wedding is the next chapter in Play’n GO’s Norse mythology series. Siblings Thor, Loki and Freya reunite in less-than-ideal circumstances. Thrym, the mighty Ice King of Jotunheim, has stolen Mjölnir. In exchange for its return, he demands Freya’s hand in marriage. Freya has other ideas. Of course, the God of Mischief has a trick up his sleeve. Thor will disguise himself as Freya and enter the kingdom, reclaim Mjölnir and sneak back out – which isn’t as easy as it sounds. These three romantic titles are only

blossoming our diverse portfolio of themes, narratives and visuals further for a collection of elite games that players will continue to love.

PLAY’N GO

For the love of fun

lay’n GO’s portfolio of premium titles is renowned for its diversity, covering a broad spectrum of themes from Norse mythology to science fiction. We decided to show our romance-themed slots a little love with three new titles through January and February. For lovers of Arthurian Legend, this one’s for you. The fourth game in this popular series, 15 Crystal Roses: A Tale of Love, tells the story of Princess Elaine and Sir Lancelot. Sir Lancelot has declared his love for Princess Elaine, and as a symbol of true devotion, he must seek out the 15 Crystal Roses, buried deep in the enchanted woods. Who said that chivalry is dead? Love Joker is next on the list. Like other Play’n GO series, the Joker series has resonated well with players across the board.

Asia Gaming Briefings | February 2022

SUPPLIER SPECIAL REPORT 49 PRAGMATIC PLAY

Leprechaun brings luck of the Irish

ragmatic Play, a leading content provider to the iGaming industry, invites its players to harness the luck of the Irish in its dazzling new slot experience, Gold Party. Set in the beautiful landscape of the Emerald Isle, a harmonious background compliments the gold-clad reels in this 3×5 slot, with a lucky leprechaun accompanying players on their journey. The paytable lists nine through to Ace as the low paying symbols, with Harps, Mushroom Houses, Horseshoes, Unicorns, and the Lucky Leprechaun himself taking up

the higher value symbols. Wild Symbols are included to help complete winning paylines and there’s also the Money Respin feature, Copy Reels, a Multiplier and an Extra Spin symbol providing players with numerous modifiers and triggers in this thrilling slot. The Money Respin feature is triggered when six or more Money Symbols are landed in the base game, causing four separate bonus reels to appear. Normal symbols here are replaced with Money, Multiplier and Extra Spin symbols before players are awarded eight re-spins to land a win. The Money Respin feature plays on four 3×5 grids of symbols, for up to 60 possible positions, adding a different feel for players to enjoy a unique slot experience. If any bonus reel is completely filled in the Money Respin feature, a fixed jackpot is awarded, and filling the reels labelled Mini, Minor, Major, or Grand pays out 20x, 50x, 200x, or 5,000x the player’s stake, respectively. The unique Copy Reels mechanic also ensures that when a full stack of the highest paying

symbols lands on the leftmost reel in the base game, it is copied onto one or more of the other reels, enhancing the chance for a bigger payout. Gold Party arrives on the heels of recent releases Wild Depths, Magician’s Secrets and Crystal Caverns Megaways, which reside amongst a collection of over 200 HTML5 titles in Pragmatic Play’s award-winning games portfolio. Yossi Barzely, Chief Business Development Officer at Pragmatic Play, said: “We’ve really kicked off the New Year with a bang, first releasing the underwater adventure Wild Depths and now the vibrant Gold Party. “Variety is key when it comes to producing new titles for our portfolio and at Pragmatic Play, we are always looking to serve our players fresh and relevant content incorporating hugely popular themes.” Pragmatic Play currently produces up to five new slot titles a month, while also delivering Live Casino, Virtual Sports and Bingo games as part of its multi-product portfolio, available through one single API.

SIMPLEPLAY

Looking forward to a great year

implePlay wishes all readers a happy and healthy 2022. This is going to be a year of recovery. To celebrate this, SimplePlay has already launched major products in the first couple of weeks of the year! The eagerly anticipated Fishing Game “Lustrous Ocean” was launched earlier. “Lustrous Ocean” carries unique features that make it one of a kind. It is the first Fishing Game that incorporates a stage system with branching storylines into the game. Players need to catch the required amount of fish, or winnings, to proceed to the next stage. Different options can lead to different scenarios, giving different experiences to players. “Lustrous Ocean” also comes with other amazing features. At the end of Stage III, a Stage Boss will appear – due to branching storylines, there are different Stage Bosses. Defeating the Boss leads to a Bonus Stage where there will be fish with variable payouts up to 1,000x! There are also features like Free Bullet Wheel, where players can spin the wheel to determine the number of Free Bullets they won and the payout multiplier of these bullets. Players can also use three chargeable Gem Powers to increase the chance of catching their favourite fish. The products of SimplePlay do not stop here.

We have also launched an Asian-themed Slot Game known as Guardian of Flame. It features an Asian mythical creature which can prevent fires and other disasters. The game itself is a 3x5-reel, 30-line slot. The Free Game Feature can be triggered by collecting a required amount of any of the two Scatter Symbols. Collecting 80

Scatters 1 leads to Free Games with extra Stack Wilds. Collecting 60 Scatters 2 leads to Free Games with up to multipliers of 24x. This year is going to be a great year for SimplePlay. There are more plans to be revealed, and more games to be released. Operators and players can expect more from the supplier.

Asia Gaming Briefings | February 2022

SUPPLIER SPECIAL REPORT 50 SEGA SAMMY

Waiting for the fruit to drop

EGA SAMMY CREATION has launched a new linked progressive jackpot product called “Lucky Fruits Link” with a four-level jackpot in the Asian market. With two Chinese ancient god themes “Wen Bao” and “Wu Bao”, Lucky Fruits Link introduces a new twist to the player-favorite symbol-driven bonus games with the key feature of a jackpot and/or bonus chance anytime you see a “Wild.” In the Lucky Tree feature, when any “Wild” symbol appears, one or more fruit may be randomly added to the Lucky Tree on the secondary screen. It could be a credit prize, multiplier, or jackpot! Sometimes the tree will shake and drop some fruit with a “Wild” landing on screen, in that case the prize on the fruit

can be awarded to the player. This intuitive game design with plenty of fruits triggering high-value prizes is sure to keep all your players on the edge of their seat waiting for the fruit to drop. Bring harvest to your floor with fruitful prizes!

Game enhancements drive revenue, cut costs

pintec is one of the major players in the ETG market and its presence in Asia and Australia is growing progressively, having already reached an around 60 percent market share in compact electronic roulettes in Macau. All the company’s games received a major upgrade recently with some additional features and side bets that make them even more enjoyable. Games most popular in Asia and Australia now feature some extremely attractive enhancements. Spintec’s success comes from helping casinos to generate more revenue and to reduce operational costs by providing tailor-made solutions for every casino floor. The recently introduced novelties have been warmly welcomed by players and the operators alike, giving Spintec even more enthusiasm to continue upgrading and innovating. Spintec’s Sic Bo with an extremely life-like animation was enriched with new multipliers and a three-level progressive Dragons Jackpot. Higher-betting players are rewarded with progression to a higher level without placing an extra bet. Also, pay-outs are now taking place daily. Hugely popular baccarat comes in a live and a virtual edition. The game has been updated with different card squeeze types and speed possibilities, and now includes 20 different betting fields,

Asia Gaming Briefings | February 2022

Carnival Cow joins Coin Combo series

SPINTEC

SCIENTIFIC GAMES

upgraded with nine different side bets, including four proprietary bets and the hugely popular Lucky 6. Spintec’s electronic version of the ever-popular roulette in its latest version creates excitement and engagement with several attractive high bet or win multipliers like Hotspot and Crown Roulette. It keeps players entertained even longer with the new single or multi level progressive jackpots. And the synchronized double-wheel roulette allows the players to participate in more than one game simultaneously. The relaxed pace of continuous play can increase the number of bets made by up to 80 percent.

oin Combo is the first of many new game families that will be featured on Scientific Games’ first international gaming cabinet, the Kascada. Carnival Cow adds further excitement to the game family Coin Combo series. An evolution of the hugely successful Fu Babies game series that began with 88 Fortunes. With the highly anticipated grand slams, Jade SporIt includes all the familiar elements that players love, together with many exciting new enhancements. This game features an enhanced TOP UP feature, with expanding reels that award more prizes in this thrilling hold and spin style mechanic with repeating wins. Other familiar Duo Fu Duo Cai and Jin Ji Bao Xi elements are the JACKPOT COIN PICK, FREE GAMES and BONUS features. Coin Combo has a five level JACKPOT feature – the Mini and Minor are fixed bonuses that change with the denomination being played, and the Major, Grand and Fortune levels are all linked progressives. During the JACKPOT COIN PICK feature players can level up the jackpot awarded. There are now three wealth pots that correspond to different bonuses. Common to all games in the series, the COIN COMBO feature is awarded by either one, or a combination of, Blue, Green or Red Wealth Pots closing at the top of the screen and can be triggered by coins landing during the base game. If a combination of two or three pots close simultaneously, an improved Coin Combo feature is awarded with bigger prizes available. The Kascada and Coin Combo are now available for the Philippines, Malaysia, Vietnam, Cambodia and Korea markets, Kascada will be coming to Macau and Singapore early this year. To book an in person or virtual demonstration please contact your account manager to book for more information or visit www.sggaming. com/Asia

SUPPLIER SPECIAL REPORT 51 ULTRAPLAY

Mobile gaming gains dominance

n Asia, eSports is deeply connected to people’s lives and now more than ever, they choose to play mobile games rather than traditional PC games and consoles. This is one of the reasons why there is an even greater interest in UltraPlay’s multi-awarded eSports betting solution – ODDS.GG. This revolutionary product is giving everyone a chance to join the fastest-growing market by offering the widest coverage of games, the best pre-match and live odds. Following the trend and the biggest market in the world, the esports betting provider, UltraPlay will continue to develop its mobile gaming portfolio. The company already added Wild Rift and PUBG Mobile and received a very encouraging player response, both in terms of engagement and as an acquisition tool. The other games which are already in UltraPlay’s portfolio or due to be added shortly, are Mobile Legends, King of Glory, Clash Royale, Brawl Stars, Magic: The Gathering, Call of Duty Mobile, Garena Free Fire.

UltraPlay is closely monitoring the development of some titles in the following genres: racing, tennis, hockey and baseball, where there is still huge potential for engagement with sports bettors. In 2022, UltraPlay’s eSports solution will see some of these titles being added to complement the game portfolio as well as help attract some traditional players to the eSports world. “Mobile games have been gathering pace all across Asia over the last few years and so is mobile betting to an extent where we have over 85 percent of bets being placed from a smartphone. Therefore, it’s a no brainer to try and connect the two verticals, by focusing our attention on eSports mobile titles. We have seen some tournaments on such games overtaking their PC rivals in terms of prize pools and more importantly popularity. UltraPlay’s aim, in 2022, will be to stay ahead of the competition yet again by offering much improved coverage and a better product in the mobile segment,” added Peter Ivanov, head of trading.

ZITRO

Shining through the GLARE

t’s TIME TO SHINE brighter with the worldwide launch of Zitro’s new GLARE cabinet series. Four unique form factors that offer maximum brightness thanks to their LED technology. The new GLARE family – Altius Glare, Illusion Glare, Allure Glare, and Fusion Glare feature the most advanced lighting motion and stunning graphics, for a much more enhanced gaming experience. This innovative cabinet line also features an ergonomic design compatible with the previous ONE platform, and showcases notable upgrades such as playability, accessibility and exclusive game titles. Zitro’s GLARE cabinet line, along with their high-definition graphics, surround sound system and back-lit displays, make them exceptional cabinets for a more vivid and exciting gameplay. Fusion Glare, is a high-class cabinet equipped with two 27” Full HD screens, intelligent LED halo, next-gen processor, easy access for service, wireless mobile charger, surround sound system and a wide game library, making it a must-have in any gaming hall globally. Allure Glare, includes three 27” Full HD screens, where the third screen acts as a sign thanks to its SyncroScreen system. Thanks to its surround sound system, intelligent LED

halo, next-gen processor, easy access for service, wireless mobile charger and extensive game library, Allure Glare is the perfect cabinet for players and operators. Illusion Glare, is a high-end portrait cabinet distinguished for its seamless 43” curved touch screen, which allows an enhanced gaming experience. It looks extremely bright thanks to its smart LED halo. With its next-gen processor, wireless mobile charger, easy access for service, spectacular surround sound system and exclusive game library, Illusion Glare brings elegance and playability to any casino floor. Altius Glare, the tallest one of this family of cabinets, features impressive 55” and 27” Full HD displays providing huge real estate for exciting 4K graphics, and intelligent LED Halo. This high-class cabinet along with a digital smart deck keypad, wireless mobile charger, amazing surround sound system and easy access for service, make it the ideal form-factor for immersive gaming experiences. The GLARE family was designed with the aim to offer a brighter, more immersive and engaging experience for players, thanks to its LEDs that illuminate them more brightly than ever before!

WDTS

Casinos win more, keep more with Perfect Pay

aximizing the revenue generated from every customer trip is more important now than ever with continuing travel restrictions and the possibility of future casino closures. This is a challenge in table games with their traditionally high operating costs and resulting narrow margins. The Perfect Pay Baccarat platform targets the specific challenges of the table games operating environment to enable every table to generate more win and ensure that more of that win becomes bottom-line revenue. Walker Digital customers consistently report higher hold on Perfect Pay Baccarat tables. This is one reason why every Perfect Pay customer has expanded their installation base and why a second casino operator in Macau has selected Perfect Pay and PJM RFID to secure their gaming floor. There are two aspects to higher household and increased bottom line results. First, table automation features increase game speed and table uptime, and mid-hand bet options such as Baccarat Insurance and Baccarat Raise get more money on the table at a higher house edge. Casinos win more. Second, more win falls to the bottom line through the elimination of leakage from dealer error, theft, and other fraud. Casinos keep more of what they win. This dual strategy results in a higher hold percentage and a more efficient operation. Emily Io, SVP Sales at Walker Digital, wants every operator to experience the benefits of Perfect Pay first hand. The latest version features a lightweight architecture suitable for casinos of any size as well as for trial implementations with no upfront infrastructure or custom development investment. “Anyone who spends time with the system is immediately aware of the many ways Perfect Pay adds value, not only including increased table hold but also insights into player behavior and advanced AML tools.” Contact eio@wdtablesystems.com for more information about experiencing the evolution of table games with Perfect Pay.

Asia Gaming Briefings | February 2022

CALENDAR OF EVENTS 52

MARCH

JUNE

REGULATING THE GAME 7-11 March 2022 ICC Sydney, Australia https://www.iccsydney.com.au/whats-on/Regulating-theGame-2022 SIGMA ASIA 20-23 March 2022 Intercontinental Hotel, Dubai https://sigma.world/asia/ SPICE INDIA 23-25 March 2022 Goa, India https://www.sportsbettingevents.com/spice-india

APRIL ICE LONDON 11-14 April 2022 Excel London, UK https://www.icelondon.uk.com/

WORLD GAMING EXECUTIVE SUMMIT 29-30 June 2022 W Hotel, Barcelona https://www.terrapinn.com/conference/world-gamingexecutive-summit/index.stm

JULY ASEAN GAMING SUMMIT Shangri-La Hotel, Manila https://aseangaming.com/ IGB LIVE 5-8 July 2022 Amsterdam RAI https://www.igblive.com/ SPICE SRI LANKA 27 July 2022 Colombo, Sri Lanka

IGB AFFILIATE LONDON 13-14 April 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 | February 2022

AUGUST RUSSIA IGAMING SUMMIT & EXPO 25-26 August 2022 St Petersburg, Russia G2E ASIA 30 August - 1 September 2022 Venetian, Macau https://www.g2easia.com/

SEPTEMBER ALL-IN GAMING UKRAINE SUMMIT 8-9 September 2022 Kiev, Ukraine https://www.eventus-international.com/all-in-gaming

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Gaming Briefings | February 2022

LAST WORD 54

Sharon Singleton

Managing Editor, AGB

Legal changes broadly positive, but no cause for celebration Steve Vickers & Associates, a corporate intelligence and risk mitigation firm with deep roots in Asia, is warning against irrational exuberance in the wake of the publication of Macau’s new gaming law.

n initial read indicated that the amendments the management companies and the concession were far more benign than doomsayers had holders, which Ben Lee of IGamiX Management been expecting after the government published and Consulting says appears to have a direct impact on how the U.S. operators charge for their services. its consultation paper in mid-September. While many of these are flat fees, there are some However, as always the devil is in the details and some of the details could prove to be problematic for that are calculated as a percentage of revenue. For long-term investors being asked to plough billions example, Sands China has to pay Las Vegas Sands 1.5 percent of the gross revenue at the Venetian and its of dollars into the city. The first stated purpose of the draft law is to safeguard other properties for the right to use certain trademarks under the trademark sub license agreement currently the national security interests and those of Macau. It’s a theme that is repeated throughout the 44-page in place, subject to a cap. That fee (for the Venetian, document and is also given as a reason over which the Sands Macau and the Plaza Macau) is capped at $128.3 million this year. chief executive could unilaterally Also still in the vague column cancel a concession. is how the operators will be Unfortunately, the concept expected to contribute to the is vague and there is no detail as The first stated healthy development of Macau, this to what the government plans to includes supporting activities of focus on when it comes to national purpose of the public interest, as well as cultural security and what it would consider draft law is to and sporting activities. to be a grave enough breach for To be sure, all six operators a license to be removed. safeguard the are already involved in corporate “The major risk to gaming national security social responsibility projects in operators is not regulatory but is the city and have been key backers nakedly political,” Vickers says. interests and of the government’s efforts to “The primary factor which the those of Macau. promote vaccinations for example. Chinese and Macau authorities However, there is still room consider when evaluating concession for concern that there may be renewals and new regulations clearer mandates on exactly is clearly the National Security criteria and whether, for example, capital flight can what they are expected to do that don’t necessarily be contained, especially when linked to US operators jibe with the way management feels company cash could be best deployed. seeking to repatriate dividends.” President Xi Jinping’s pet project is the development The new laws didn’t in the end impose restrictions on the distribution of dividends, but did stipulate that of the Greater Bay Area. Galaxy Entertainment the government needs to be informed before major and Melco Resorts & Entertainment have already financial transactions take place. It remains to be seen announced plans for non-gaming facilities on the what level of distribution they will find acceptable. Mainland. However, is this an area into which a U.S. The Macau government could still act on dividend casino company wants to enter? On the whole, the legal amendments as they payments perceived as excessive, particularly if severe capital outflows from mainland China prompt stand appear to be manageable and for the most part national security concerns in Beijing, Vickers warns. provide clarity over the next stage of the industry’s The amended rules also ban revenue sharing, both development. But they’re probably not something to between junket promoters and operators and between warrant investors jumping for joy.

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Asia Gaming Briefings | February 2022

AGBriefings February 2022 Edition

Articles inside

LAST WORD

SUPPLIER SPECIAL REPORT

SAIPAN

AUSTRALIA

INDIA

KOREA

FOCUS

CAMBODIA

VIETNAM

PHILIPPINES

MACAU

REPORTS OF MACAU JUNKET DEATH EXAGGERATED!