AGBriefings April 2022 Edition by Asia Gaming Brief

JURISDICTION UPDATES April 2022 Edition

In focus pg.16

Changing the rules of the game MACAU

Covid sinks operator stocks pg.6

INDIA

Digital drives racing revenue pg.38

VIETNAM

Poised for post-Covid growth pg.10

PHILIPPINES

Teething pain for PIGOs pg.8

SUPPLIER SPECIAL REPORT pg.40

Asia Gaming Briefings | April 2022

CONTENTS 4

GREATER CHINA

SOUTH EAST ASIA

MACAU

AUSTRALASIA AUSTRALIA

SPECIAL FOCUS

Asia Gaming Briefings | April 2022

INDOCHINA

PHILIPPINES

NORTH ASIA

KOREA

SUPPLIER SPECIAL REPORT

VIETNAM

CAMBODIA

SOUTH ASIA

NEPAL

INDIA

LAST WORD

54 54

MESSAGE 5

Changing the rules of the game

sia’s key gaming jurisdictions, namely Singapore

horse racing industry, while the iconic pachinko and

and Macau, are undergoing a major regulatory

pachislot parlors are struggling with regulations that make

overhaul. In the April 2022 edition of AGBriefings

them less appealing to players.

Jurisdiction Updates, the magazine’s focus is on

Through these pages you’ll also find the most relevant

the key changes, and what they will mean for the industry.

development in Asia’s gaming jurisdictions:

Macau legislators are poring over amendments to the gaming

Macau operators now have more clarity when it comes to the

law which will set the course for the city’s casinos for years

regulatory framework affecting their business, though they

to come. It was the first major shakeup in regulation for two

are still in the dark when it comes to the post- Covid recovery

decades and is the precursor to the bidding process for the

prospects, with some analysts predicting another lost year.

casino concessions.

In our “Last Word,” Asia Gaming Brief managing editor,

In our first article, Carlos Simões, a partner with DSL Lawyers,

Sharon Singleton, looks at how Southeast Asia’s tourism

tackles the issue of satellite casinos. Arguably the biggest

authorities are struggling in their path to recovery without

losers in the amended bill, which states that the casino

access to China’s outbound visitor market.

must be in a property owned by the license holder. These

This edition of the Supplier Special Report is rather

not-so-little casinos have been given a three-year period to

exceptional as the industry returns to large-scale exhibitions.

reorganize their businesses.

After a two-year break and a rocky start to the year, ICE

Over in Singapore, a new law will create a new regulatory

London will be returning to the ExCel Centre in London from

authority to oversee all aspects of gambling in the city state.

April 12 to April 14, and suppliers in these pages are ready to

The government argues that the changes were necessary

talk business.

due to rapid changes in technology, which have affected how

On that note, the ASEAN Gaming Summit, the first industry

people bet, as well as the increased blurring of lines between

wide conference in Asia since the start of the pandemic, is

gambling and gaming. Wai Ming Yap, a partner at Morgan,

just around the corner. Mark your calendars for the 25-27 July

Lewis and Bockius, enumerates the changes in detail and

to network with the leading gaming operators, suppliers, key

comments on its implications.

regulators, and advisors at the Shangri-La at the Fort in BGC

In turn, Australia’s gaming industry has been in turmoil

Manila. See you there!

Rosalind Wade

Luis Pereira

over money laundering and immigration violations. Major operators Crown, and more recently, rival Star

Meanwhile, happy reading and keep strong, stay safe.

Entertainment, have become the subject of numerous regulatory probes. Jamie Nettleton and Brodie Campbell of

On behalf of Asia Gaming Brief

law firm Addisons take us through the latest developments,

Rosalind Wade & Luis Pereira

which involve proceedings by Australia’s financial crimes

CO-FOUNDERS

regulator, AUSTRAC. Lastly, while Japan’s slow march toward establishing an IR

Connect with us:

industry inches ahead, other sectors of its well-established gambling industry have seen some interesting changes. Joji

@agbrief

Kokuryo, managing partner of Bay City Ventures, looks at

Asia Gaming Brief

how going online has boosted the fortunes of the country’s

www.agbrief.com

APRIL 2022 EDITION SERIES II • ISSUE XIX

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Asia Gaming Briefings | April 2022

GREATER CHINA

MACAU

Stock optimism collapses as Covid fears gain Macau’s operators now have more clarity when it comes to the regulatory framework affecting their business, though they are still in the dark when it comes to the postCovid recovery prospects, with some analysts predicting another lost year.

Asia Gaming Briefings | April 2022

GREATER CHINA

Executives at Macau’s operators have also he Legislative Assembly committee has just wrapped up its work reviewing indicated they do not expect to see much amendments to the gambling law, change this year. Speaking on a conference call with analysts, which turned out to be more benign than had been initially feared. And, as expected, Melco Resorts & Entertainment CEO Lawrence the government has extended the concessions Ho said he expected the revenue outlook in for a further six months to allow more time for Macau to be “range-bound” again this year, as China, Macau and Hong Kong pursue their the re-tender process. This increased regulatory clarity drove zero-Covid strategies. “I think the Chinese policy is going to be very analysts to predict that the worst was now over for Macau operator stocks, with the upside conservative this year with regards to opening up its borders. Even recently, we’ve seen how potential outweighing the downside risk. However, that rebound reversed course certain provinces view Macau as being close to spectacularly in mid-March after Hong Kong Hong Kong and therefore the COVID outbreak lost control of its Covid outbreak and the in Hong Kong would somehow affect Macau, number of cases in Mainland China surged, so honestly, I don’t have a lot of hope that group prompting the lockdown of cities of millions tours or eVisas are going to be normalized before and putting further pressure on the world’s the Hong Kong-China corridor.” Ho was referring to plans that were in place second-largest economy. The result has been a sharp drop in visitation to establish a travel corridor between Hong to Macau, with gross gambling revenue in March Kong and Mainland China. These have now been pushed back, with more than 80 percent analysts at Bernstein below its 2019 levels, saying in a recent note three years into the that they see late spring pandemic. Analysts are Analysts are or early summer as being predicting another tough predicting another the likely time frame month in April, with the for reopening as long disruptions possibly being tough month as the situation doesn’t felt into May. in April, with deteriorate further. Asaresult,stockshave S&P Global Ratings plunged. Sands China is the disruptions is expecting GGR levels trading at its lowest level possibly being felt this year of only around in about a decade, while 30 to 40 percent of those Wynn Macau and MGM into May. seen in 2019, compared China are near historic with its prior forecasts lows in Hong Kong. for a rebound to 60 to Galaxy Entertainment, which is the top pick for most analysts, has fared 70 percent. That’s very little improvement better but is still at about a five-year low. SJM from 2020 when GGR was at 30 percent of Holdings hit a low of HK$2.83, its worst level pre-pandemic levels. Chinese New Year in Macau was strongersince 2009. Melco Resorts & Entertainment, which is traded on Nasdaq, hit a year low of than-expected in terms of GGR, even though visitor numbers didn’t match forecasts. However, $5.75, its worst since mid-2010. As a result, analysts are scrutinizing any that dropped off over March as travel restrictions signs that China may be preparing to pivot increased on cities across China. Anyone crossing the border from neighboring away from its zero-Covid policy. Beijing has acknowledged that the policy is a strain on its Zhuhai still needs a PCR test within 24 hours economy, but so far it has given no indication of departure, compared with 48 hours before the most recent Covid clusters in that city. easing is imminent. That’s despite growing signs of a change Although such measures don’t prevent visitors in attitude amongst its people, who have been from traveling, they do add an extra layer of highly tolerant of China’s restrictive measures so difficulty, with many reportedly deciding it’s far. According to CNN, China’s popular -- and not worth the effort. Macau’s vaccination rate for those between heavily censored -- social media platform Weibo featured a question in late March about why 20 and 59 is now at about 90 percent. However, China can’t relax its Covid-19 restrictions like authorities have still faced reluctance amongst other countries. It was the top trending hashtag the elderly and most vulnerable, with the rate on the day, racking up over 500 million views. in the over 80s under 50 percent.

“

”

GROSS GAMING REVENUE 2021 GGR MOP86.86b

+43.7%

2022 January MOP6,344 million

-20.9%

2022 February MOP7,759 million

+6.1% (Source: DICJ)

Paradise 2021 revenue jumps 40.5%, EGMs surge Paradise Entertainment posted a 40.5 percent increase in 2021 revenue, driven by an improved performance in its Macau casino and sales of electronic gaming machines. Total revenue was HK$494.1 million ($63.1 million). Revenue generated from the Casino Kam Pek Paradise amounted to $415.7 million, up from $303.1 million a year earlier. Sales and leasing revenue from electronic gaming equipment in Macau more than trebled to $64.7 million, while revenue from the same division overseas surged to $10.9 million, from $2.1 million a year earlier. The company also booked $2.8 million in royalty income from IGT, up from $1.3 million. The loss for the year narrowed to $88.4 million from $192.1 million, while at the adjusted EBITDA level, the loss was $18.4 million, shrinking from $101.1 million. Total GGR generated by Casino Kam Pek Paradise amounted to HK$761.7 million, representing an increase of 36.8 percent. Paradise said its Live Multi Game terminals had generated more revenue than traditional tables at $214.9 million, compared with $187.8 million for tables.

Macau cuts quarantine for residents to 14 days Macau reduced the quarantine period for inbound residents to 14 days from March 28th, in the first signs of any easing in its rigid border controls. The prior requirement, which has been in place since the end of 2020, was for 21 days in a quarantine hotel, one of the longest periods anywhere in the world. Travelers will still need to stay in a governmentdesignated hotel and will need to undergo seven days of self-health monitoring after their stay. During the self-health monitoring period, the traveler will not be able to enter Mainland China. The easing only applies to Macau residents and the border is still not open to visitors from elsewhere in the world.

Asia Gaming Briefings | April 2022

SOUTH EAST ASIA

PHILIPPINES

Dialogue needed for PIGO industry development Operators and service providers in the Philippines want more dialogue with the government over the taxation and regulation of domestic online gaming to help them better compete with rampant illegal gambling.

SOUTH EAST ASIA

he Philippines began issuing Philippines Inland Gaming Operator (PIGO) licenses in late 2020 to help the industry, which had been thrown into crisis by the widespread closures of casinos and e-cafes due to Covid lockdowns. The concept allows the country’s integrated resorts and e-cafes to allow registered players to play remotely and is the first attempt of its kind in Asia to regulate online gaming for locals. The Philippines already hosts an online gaming community through its Philippines Offshore Gaming Operator licenses, which can be based in the country, but can only offer their services offshore. Almost 18 months into the program, industry leaders say that there has been good growth and the scheme has been a “life saver” allowing business continuity during the crisis. However, more discussion and coordination is needed to cut down on business costs and regulatory red tape. The PIGO licensees say the taxation and other expenses mean that margins are in the single digits and leave them with limited scope for business development. This also means that they are less capable of competing against the black market, which has been booming since the onset of the pandemic. Brian Ng, president of PhilWeb, which runs e-Cafes across the country, said that bingo is a highly popular game in the Philippines, though to offer bingo online the operator needs to pay 55 percent of gross gaming revenue to the Philippines Amusement and Gaming Corp (PAGCOR). It then needs to pay a share to the venue operator to which the license is linked

GROSS GAMING REVENUE

as well as fees and royalties on software and platforms. That’s before paying other corporate taxes that may be payable. Speaking at a recent Pop-Up Forum organized by Asia Gaming Brief, Ng questioned whether an online bingo product is commercially viable at this level of taxation. The illegal operators, which don’t have the same costs, are able to pump the money back into marketing and customer acquisition. “The more discussion we have, whether in a closed or open format, is a step forward,” said Calvin Lim, CEO of DFNN on the same webinar. “Regulation is the first step and now we need improvement of the regulation in order to make this a better operating environment that we’re in.” As of end-January this year, PAGCOR had 16 licensees listed on its website as providing E-gaming services and a further seven offering e-Sabong, or cockfighting. Panelists of the webinar said not all were up and running. Amongst the integrated resorts, Bloomberry Resorts’ Solaire is live with an online product, as is Universal Entertainment’s Okada Manila and Resorts World Manila. Melco Resorts & Entertainment’s City of Dreams Manila was offering online gaming, but in its most recent results announcement, it said the site had been closed for maintenance since late last year. According to PAGCOR, Thunderbird Pilipinas Hotels & Resorts and the Hotel Stotsenberg Leisure Park and Hotel have also been issued an online license. Joe Pisano, CEO of Jade Entertainment, which offers sports betting services online, said he expects to see mergers and acquisitions

2021

2022

113.09b 98.79b

Entertainment City Fiesta

Junket supervision still an issue for FATF

(units in PHP)

Philippines GGR 78.95b 65.71b 668.8m 931.2m

Clark

8.72b 7.98b

Electronic Games

in the industry as players begin to realize the high costs and regulatory tiers associated with the business. He had already been approached by some of the smaller licensees, with singleproduct offerings, looking to piggyback on the Jade offering. Despite the high costs all of the panelists agreed that the market potential is huge once the teething problems are ironed out. Pisano said that as the Philippines opens up after the pandemic, Jade is seeing players migrate back to the casinos, but he hasn’t seen a downturn in the online side of the business. In the POGO sector, there have been optimistic rumblings of late that some of the firms that left Manila during the pandemic may be preparing to return. There was an exodus of POGO firms from the country due to overly high taxes and business costs, coupled with issues of getting visas for staff. David Leechiu, president of Leechiu Property Consultants (LPC), a privately owned real-estate services company, told the Nordic Chamber of Commerce of the Philippines that his group was about to close its first POGO office property leasing deal in close to 24 months. It is understood that in the last two years, more than 500,000 square meters of office space had been left empty by the POGO industry. “It is quite possible that they will make a comeback. They’ve already resolved issues with the Philippine government and certainly, it’s going to be less of an issue,” said Leechiu. “If they can resolve the mobility of the region, then I think a big chunk of the POGO market could come back,” he added.

2.99b 2.39b (Source: PAGCOR)

Hann opens Philippines first Swissotel brand The Hann Group has opened the first Swissôtel brand hotel in the Philippines at the newly revamped Hann Casino Resort in the Clark Freeport Zone. in March. The company said 270 Premium and Swiss Advantage Rooms were available for booking during the soft opening period which began on March 1, with the rest of the 372-room hotel complex opening its doors in the last quarter of 2022. “The Swissôtel brand is internationally renowned for its high standard of Swiss hospitality that is infused with the freshness and vibrancy of alpine energy,” Accor CEO for Southeast Asia, Japan and South Korea Garth Simmons said.

The Philippines remains on the Financial Action Task Force’s (FATF) gray list after its latest review, with the anti-money laundering body continuing to express concern over monitoring of casinos and junkets. The FATF put the Philippines back on its list of jurisdictions that are subject to increased monitoring in June last year. The Paris-based organization said that since then the Philippines has taken steps to improve its AML and CFT regimes, but needs to continue to work to implement its action plan. In particular, it needs to demonstrate effective risk-based supervision of designated nonbanking financial businesses and professions, which includes casinos. It also needs to demonstrate that supervisors are using AML/ CFT controls to mitigate risks associated with casino junkets, it said.

Asia Gaming Briefings | April 2022

INDOCHINA

VIETNAM

Growth forecast as borders open and pre-pandemic visa measures return Vietnam is one of Asia’s gaming jurisdictions tipped for a strong recovery, with its borders officially reopening for tourism from mid-March and its pre-pandemic visa systems restored.

Asia Gaming Briefings | April 2022

isitors will be required to have a negative PCR test 72-hours prior to departure, but won’t need to quarantine on arrival. They will have to self-health monitor for ten days and report any Covid-type symptoms. Tourists from 80 countries will also now be able to apply for an e-visa for a period of 30 days, normalizing its entry protocols. The country currently has nine casinos, with all but one of those reliant on foreign tourism inflows. Prior to the Covid crisis, Vietnam welcomed 18 million tourists, though that number slumped to just 157,000 foreign arrivals in 2021 due to border closures. International flight connectivity is also improving. As of mid-March, it had resumed direct flights to several destinations such as the US, Singapore, Thailand, the UK, and Australia, according to a note from law firm Dezan Shira. Industry veteran Dennis Andreaci says Vietnam is one of his top picks in the region. “You have Ho Tram, you have Hoiana, and you have Corona Resort and Casino. Ho Tram has been there a while but they’ve just opened up the Intercontinental and the Holiday Inn making this a large comprehensive integrated resort. Hoiana and Corona just started to get going when Covid hit and I believe these two will really hit it off big as Vietnam now starts to open up from Covid.” “So I see these three major IRs leading the way in Vietnam and I am very bullish on Vietnam.” Andreaci was referring to the newly built Hoiana, which is partly owned by Hong Kong’s Suncity Group Holdings and which held a soft opening in 2021. The Corona Resort & Casino is on an island in the south of the country and is the only one where locals can gamble, while the Intercontinental Ho Tram is on the coast about two and a half hours drive from Ho Chi Minh City. It was the first of Vietnam’s large-scale casino resorts to open. “Those Vietnam integrated resorts we mentioned are all on the coast, so there are beaches, Ho Tram has world-class golf, on the beach and close to Ho Chi Minh City. Corona is located on a stunning tropical island and Hoiana is located in a very historical part of Vietnam, so they all have something unique to offer.” Vietnam has taken a conservative approach to opening up to casinos, compared with the relative free-for-all seen in neighboring Cambodia. However, it is open to expansion and recently announced two new projects, both of which will be permitted to have a locals license. In its 2017 gaming decree, Hanoi established a pilot program allowing two casinos to accept

INDOCHINA 11

Vietnamese players on a three-year trial basis. Last month, the Ministry of Finance said the program would be extended for a further two years to allow more time to assess the impact of local gaming and would be extended to a further two casinos. However, this move shouldn’t be viewed as a precursor to any further imminent easing for locals in the country, warns Ben Lee, managing partner of IGamiX Management & Consulting. He said the license was more likely a reward for the country’s biggest property developers, which have been willing to make major investments to open up tourism in less well developed areas of the country. The two properties to be added to the scheme are Sun Group’s Sun World Ba Na Hills, and a new development from VinPearl on Hon Tre Island in Nha Trang. Both of the local developers were given the go ahead under the original scheme for two of their other developments. Sun Group is developing a large-scale resort in Van Don in the far north of the country, which is still under construction. Spread over 2,000 hectares, it will feature a golf course and a world-standard horse race track, as well as retail, apartments and exhibition areas. The group has also worked to develop infrastructure in the area, which will improve access to Halong Bay, which is a UNESCO Heritage site. It invested VND20 trillion ($870 million) in developing Van Don International Airport, Halong International Cruise Port, and the Halong-Van Don Highway. Work on the Van Don project has resumed post-Covid, though the timetable for opening is unclear. Sun World Ba Na Hills is an existing Frenchthemed resort in the mountains above Da Nang, which currently does not have a casino. The resort is close to the Ba Na Hills Golf Club, which was named as best in Asia in 2021 and the iconic Hands of God, a bridge held over the treetops by a pair of giant hands, which has become an instagram must. Vinpearl, which is the hospitality and leisure arm of the sprawling Vingroup conglomerate, has been given the possibility of a locals license for its planned $2.2 billion integrated resort on Hon Tre Island, Nha Trang City in Khanh Hoa Province. Vinpearl is the developer of the Corona Resort. This new resort would initially include a casino, a five-star 1,200 room hotel, a convention center, and a transportation system that may include cable cars and waterways. The casino would have about 200 gaming tables and 2,000 electronic gaming machines.

Hoiana appoints new chief marketing officer Hoiana has appointed Jit Ng as chief marketing officer to help the resort expand in new and existing markets Ng will report to Steve Wolstenholme, president and CEO of Hoiana. He will be responsible for strategic planning, creative development and execution for marketing. “It’s my belief that the role of a CMO is to set the growth trajectory for the brand, with a clear vision for the brand’s future and to then coach the right talents to bring our vision to life, ultimately achieving all our growth plans,” he said. Ng has 25 years of experience in leading teams and developing data-driven insights to drive brand growth. His past experience includes a senior role in marketing at Macau’s Galaxy Entertainment Group, as well as marketing agencies in Mainland China. “We are excited to have Jit leading the marketing team here in Vietnam,” said Wolstenholme. “I’m certain with his wealth of experience, he would be able to bring a new perspective in luxury marketing and deliver our brand vision. He has arrived at an opportune time as the country is reopening to international tourists and we are gearing ourselves to welcome them.”

Quang Nam province eyes 4.2m tourist Quang Nam province, which is home to the Hoiana Resort, is hosting National Tourism Year, which it forecasts will attract 4.2 million visitors. According to local media reports, the province will organize 62 events during the year and it expects to generate some VND6,000 billion ($263 million) in revenue. The government of Vietnam will fully open the borders to international travel from March 15 and Quang Nam expects about 1.7 million of its arrivals to be from overseas. Locals are not permitted to gamble in Vietnam’s casinos. Prior to Covid, the province had 7.6 million arrivals, generating about VND14,000 billion. Of the total 4.6 million were from overseas.

Asia Gaming Briefings | April 2022

INDOCHINA 12

CAMBODIA

Light seen at the end of the Covid tunnel Cambodia is seeing a slow trickle of tourism return, with optimism that business will bounce back strongly once full normality has resumed.

Nagacorp reported a loss for last year due he country was one of the first in Asia to reopen international borders in to the Covid closures, which forced it to shut mid-November last year, however, its doors for 6.5 months in 2021 compared visitor numbers have been slow to with just 3.5 months a year earlier. However, it had seen a stronger bounce pick up as many travelers are still required to back this time around, with business levels quarantine on their return home. Nagacorp’s NagaWorld property in the higher than they were prior to the second capital is open, as are most of the casinos in closure in March. The daily average of premium the coastal hub of Sihanoukville. There are mass rolling in December was $10.3 million, also talks for a relaxation of border restrictions exceeding the levels of January and February with Thailand, which would allow resorts in 2021. The daily average of EGM bills-in was $5.4 million and also exceeded prior levels, that area to also reopen their doors. This would include Donaco International’s while the daily average of mass table buy-ins of $2.7 million was 87.2 Star Vegas resort in percent of its February Poipet, which has been 2021 levels. closed since April 2021. The mass table buyTourism arrivals to The influx of ins further improved in Cambodia reached a record January to $2.9 million. investment has high of 6.61 million in The mass market 2019, generating some brought with it a made up 49 percent of $4.91 billion in receipts growing legion revenue last year and for the government accounted for 70 percent and making up about a of workers. of gross profit, compared fifth of gross domestic with 29 percent and 59 product. That number percent respectively the fell to just 1.31 million prior year. visitors in 2020. Executive Deputy Chairman Philip In recent years, China has been by far and away the largest source market and although Lee has said that the property is largely longer term the Kingdom still views the Mainland insulated from the lack of outbound China as being key to its tourism sector, it’s likely to tourism as it benefits from a strong domestic be one of the slowest segments to recover as market among the foreign residents living in Cambodia. Locals are not permitted in China maintains its zero-Covid policy. Aside from tourism, Cambodia does have a the casinos. Nagacorp said it’s progressing with the growing expatriate workforce which may help underpin gross gambling revenue, especially development of Naga3, with Chicago-based at NagaWorld, which has a monopoly on Skidmore, Owings and Merrill now having casino gaming within a 200 sq km radius of completed the conceptual design work. However, in March the company said the capital Phnom Penh. Chinese foreign investment into the it had put plans for an integrated resort in country in the first half of 2021 was $17.3 Vladivostok on ice indefinitely. The company said it was citing “force billion, accounting for just under half of the total. The influx of investment has brought majeure” for the suspension in construction works, although analysts at Daiwa cited with it a growing legion of workers.

“

”

Asia Gaming Briefings | April 2022

management as saying that the halt was due to the sanctions in force against Russia as a result of President Putin’s invasion of Ukraine. The analysts said Naga will probably seek to dispose of the project. In February, Nagacorp had said that work on its delayed Russian project was progressing, with the construction of the structure of its hotel tower block now complete. The company had planned to continue work this year, but it gave no update on an expected completion date. Naga Vladivostok’s first phase was to comprise an 11-storey four-star hotel with 279 rooms, a casino and a multipurpose concert hall with 2,000 seats. The first construction stage will occupy an area of almost 55,000 square meters. The total area of all planned facilities of the Naga Vladivostok complex will occupy almost 302,000 square meters and include 2,719 rooms. The project also provided for a water park area.

INDOCHINA 13

NAGACORP 2021 GAMING STATISTICS

(units in US$’000)

Mass Market: Public Floor Tables 2021 2020 2021 2020

2021 2020 2021 2020 2021 2020

66,463 174,281

Mass Market: EGM 43,986 82,360

Premium Mass Market 48,684 78,749

Referral VIP Market 64,366 534,238

Gross Gaming Revenue 223,499 869,628 (Source: Nagacorp)

Cambodia internet gateway postponed, but not dropped

China urges action against illegal gambling

Cambodia’s controversial proposal to introduce an internet gateway to control all web traffic in and out of the country has been delayed, but experts do not believe that it has been abandoned altogether. The proposal was viewed more as a way of controlling political opposition, but is also seen as another negative for the country’s online industry. Under pressure from Beijing, Cambodian Prime Minister Hun Sen announced a ban on the booming online gaming industry in 2019, which came into effect from the beginning of 2020. However, online operators are still running businesses, in particular out of the coastal town of Sihanoukville, although not at the same high volume. “This law is implemented to curb political activists and to silence the voices of dissenters,” said Danny Too, managing director of Cherry Interactive. Nevertheless, if the Chinese government wants to crack down on China-facing operators, “Cambodia will comply in furnishing all the necessary details to big brother China.”

The Chinese Chamber of Commerce in Cambodia has urged authorities to do more to fight against “vicious crimes” involving Chinese citizens in Cambodia, including shooting, kidnapping, and extortion. According to the Khmer Times, the open letter, which was sent in Chinese, English, and Khmer, said the crimes were related to the illegal online gambling and telecommunication fraud groups operating in the country. The Chamber said this has caused immeasurable damage to Cambodia’s business environment and has acted as a deterrent for Chinese businesses and investment into the country. It has urged the relevant departments in both China and Cambodia to take effective measures to address the problem including speeding up the investigation of cases and severely punishing criminals.

Asia Gaming Briefings | April 2022

Shangri-La at the Fort Manila, Philippines

a sea n ga m in g.co m

Asia Gaming Briefings | April 2022

FOCUS 16

Reviewing Asia’s regulatory revamps Some of Asia’s key gaming jurisdictions are undergoing a major regulatory overhaul and in this edition of Asia Gaming Briefings we focus on some of the key changes and what they will mean for the industry.

irstly, Macau. Legislators in the world’s largest gambling hub are poring over amendments to its gaming law, which will set the course for the city’s casinos for years to come. It was the first major shakeup in regulation for two decades and is the precursor to the bidding process for the casino concessions. In our first article, we hear again from Carlos Simoes, a partner with DSL Lawyers in Macau. In this edition, Simoes tackles the issue of the satellite casinos, which were seen as the biggest losers in the amended bill, which states that the casino must be in a property owned by the license holder. They have been given a three-year period to reorganize their businesses accordingly, raising concern over the potential impact on employment in Macau. Over in Singapore, a new law covering the entire gambling industry had its second reading in March. The law will create a new regulatory authority to oversee all aspects of gambling in the city state. The government has said that the changes were necessary due to rapid changes in technology, which have affected how people bet, as well as the increased blurring of lines between gambling and gaming.

Asia Gaming Briefings | April 2022

Wai Ming Yap, a partner at Morgan, Lewis and Bockius, takes us through some of the changes and their implications. Australia’s gaming industry has been in turmoil since a 2019 documentary threw the spotlight on money laundering and immigration violations at Crown Resorts. The company has been the subject of numerous regulatory probes, which have also now extended to rival Star Entertainment. Western Australia has just released the results of its Royal Commission inquiry into Crown, the third high-level investigation, and Jamie Nettleton and Brodie Campbell of law firm Addisons take a look at the latest developments. Lastly, while Japan’s slow march toward establishing an integrated resort industry inches ahead, other sectors of its well-established gambling industry have seen some interesting changes. Joji Kokuryo, managing partner of Bay City Ventures, looks at how going online has boosted the fortunes of the country’s horse racing industry, while the iconic pachinko and pachislot parlors are struggling with regulations that make them less appealing to players.

FOCUS 17

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Asia Gaming Briefings | April 2022

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Carlos Simões

Partner, DLS Lawyers

Assisted by

Paulo Rowett

Satellites seen as having future, despite gaming law conundrum Macau’s gaming law amendments will result in a significant reorganization of its satellite casinos, which account for about 45 percent of the total. However, they are unlikely to be eradicated altogether. Carlos D. Simões, a partner with law firm DSL, and associate Paulo Rowett, take us through some of the likely solutions to one of the key concerns in the new legislation.

n January 18th this year, the Macau government published the draft amendments to its Gaming Law, kicking off the current discussion on the fate of the satellite casinos. Although the term is widely used in gaming industry lingo, there is no legal definition of “satellite casino” under Macau laws.

Associate, DLS Lawyers

Asia Gaming Briefings | April 2022

“Satellite casinos” can be described as arrangements between a concession holder and a third party-owner, under which the hotel owner requests the use of a concessionaires’ license to run gaming operations in a designated area of the hotel, or property. The concessionaire undertakes all gaming operations, namely supervision of gaming staff, leaving the

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operation of other hotel services, such as cleaning, F&B, etc. to the owner. In sum, these are gaming establishments technically managed by the gaming concessionaires but de facto indirectly owned and managed by the independent investors in their properties. Currently, pursuant to Section 7 of Law 16/2001 (Gaming Law), the commercial operation of casino games of chance can only be pursued by one of the three original concessionaires; SJM, Galaxy Casino, S.A. and Wynn Resorts (Macau) S.A., or its subconcessionaires: MGM Grand Paradise, S.A.; Venetian Macau, S.A. and Melco Crown (Macau) S.A.. In reality, satellite casinos are a legacy that goes back to STDM times, which was the predecessor of SJM. During that era there were no integrated resorts, no foreign operators and no Cotai. These satellite casinos were a

simple way to diversify the offer available and to involve other business partners. At the end of 2021 there were 40 casinos operating in Macau: CONCESSIONAIRES

2021

S.J.M.

Galaxy Casino, S.A.

Venetian Macau, S.A.

Wynn Resorts (Macau) S.A.

Melco Crown (Macau) S.A.

MGM Grand Paradise, S.A.

TOTAL

Of those 40 casinos, 18 qualify as satellites. Only 22 are directly owned and managed

by the concessionaires. Of the 18 satellite casinos, a total of 14 satellite casinos are under the umbrella of SJM, while the other four are under Galaxy and Melco Resorts. Fast forward 20 years and it now seems such heritage is to be discarded, or “purged” as some commentators have noted. Under an amendment to Section 5, number 3 of the Proposed Gaming Law, the reality of satellite casinos is being reshaped by a draft that rules that “a concessionaire must operate games of chance in casinos in a location where it holds ownership of the real estate (…).” In one stroke, by inserting this new requirement, the Proposed Gaming Law rules that “satellite casinos” are over and done. Needless to say this provision has proved to be a focal point in the Legislative Assembly discussions, where local business sectors are well represented - the same business sectors that are also well engaged in the existing satellite casinos. The recent announcement of the closure of the four satellite casinos managed by the Golden Dragon Group has also served to build up the pressure in the current discussions. The main controversial point is the transitional period, which will allow some time for the satellite casinos to get adapted to the “new reality.” The government has proposed a grace period of three years to allow the current operators reasonable time to realign with the provisions of the draft law. The “start” of the three-year grace period for satellites will match the start date of the new gaming concessions. However, a further extension is being considered by the Legislative Assembly of up to five years, according to recent government announcements. The

“

In reality, satellite casinos are a legacy that goes back to STDM times, which was the predecessor of SJM.

”

Asia Gaming Briefings | April 2022

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government is conducting site checks on satellite casinos, investigating and inspecting all properties of the concessionaires for the bill amendment to better suit the local needs. But the reality is that some solution(s) will be needed once the transitional period ends. What will happen to the satellite casinos after three, or five years? A possible outcome is the purchase of satellite properties by the concessionaires. Such a solution increases the concessionaires’ responsibilities, granting them full administration and control of non-gaming services and facilities. It is, however, very unlikely that concessionaires will undertake such a considerable investment when the market is performing so poorly.

“

Whatever the outcome of this conundrum, the fact is that concessionaires are not overly concerned.

”

So far, there is much speculation over ways to address this option. Must the premises on which a casino is operated be 100 percent owned, or just majority-owned (over 50 percent) by the concessionaire? Would a joint ownership or equity investment of less than 50 percent be possible on those properties? On the other hand, hotel owners may consider dividing the property and transferring the strata area related to the casino, instead of considering a transfer of the entire property, since only the property associated with gaming activity needs to be owned by the concessionaire. This is seen as the best-case scenario and one that will certainly be the case if the third-party operators are allowed to transfer an undetermined share of the overall property and not the specific part where the casino operates. Of course satellite venue owners may simply take the decision to close when faced with such a transition requirement, resulting in jobs being lost. But it is also unlikely that all the existing satellite casinos will close once deprived of the casino part because there is

Asia Gaming Briefings | April 2022

value in the remaining hotel operations. It’s undeniable that there is huge demand in Macau for low-cost or budget hotels and this could represent an opportunity to explore. To this extent, the new Law no. 8/2021 on Hotel Activity, that came into force on January 1st, 2022, already introduced a new concept: low cost and budget accommodation. The new hotel activity law states that low-cost hotels may choose to provide accommodation in single or shared rooms (where a lease can be made per bed). The rooms may lodge four or

eight visitors similar to accommodation in hostels. While offering accommodation in private homes remains illegal, by regulating affordable, legal accommodation solutions, the law amplifies the spectrum of visitors and addresses the usual short nature of their stays in town. This may be an opportunity available for former satellite casinos if they are deprived of their gambling revenues. Whatever the outcome of this conundrum, the fact is that concessionaires are not overly concerned.

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MACAU CASINOS - APRIL 2022 “Satellite Casinos”

SJM RESORTS, S.A. Casino Lisboa

Galaxy Casino, S.A.

Casino Oceanus no Pelota Basca

Casino Waldo

Casino Kam Pek Paradise

Casino Rio

Casino Eastern

Casino Broadway

Casino Diamond

Casino President

Casino Casa Real

Casino StarWorld

Casino Taipa

Casino Galaxy Macau

Casino Million Dragon Casino Landmark

Melco Resorts (Macau) S.A.

Casino GrandView

Casino Altira

Casino Macau Jockey Club

Grand Dragon Casino

Casino Fortuna

Casino City of Dreams

Casino Golden Dragon

Casino Studio City, Macau

Casino Emperor Palace Casino Babylon

MGM Grand Paradise, S.A.

Casino Grand Lisboa

Casino MGM Macau

Casino Ponte 16

Casino MGM Cotai

Casino Le Royal Arc Casino Legend Palace

Venetian Macau, S.A.

Casino Royal Dragon

Casino Sands

Casino Grand Lisboa Palace

Casino Venetian

The existence of “satellite casinos” has undermined a gaming system that is supposed to prevent other investors or operators from entering the gaming market. “Satellite casinos” have been operating in a grey area under the concession model outlined by the current Gaming Law and represent a regulatory hazard. Considering the lack of gaming tourism in the territory due to Covid, the sustained losses, depletion of cash flow and recent travel restrictions for Mainland residents’ trips to Macau, if it were up to the concessionaires,

Casino Plaza

Wynn Resorts (Macau), S.A.

Casino Sands Cotai Central

Casino Wynn Macau

Casino Parisian Macao

Casino Wynn Palace

the satellites would most certainly face closure. This would mean that various service industries would suffer, leading to an increase in unemployment and the closure of some companies. It would also undermine the local hospitality sector, where development of gaming peripheral sectors – businesses that combine leisure and hospitality with retail, such as restaurants, bars, café, spa, etc. - are highly inter-dependent. Although the extinction of “satellite casinos” (as we currently know then) might happen in

the near future under the proposed changes to Gambling Law, it’s not likely we will witness the eradication of these small-scale casinos throughout the territory. These “little casinos” possess a high degree of operational resilience and responsiveness and even with stricter legal provisions, many outcomes are possible. Carlos D. Simões is a Partner at DSL Lawyers. Paulo Rowett is an Associate at DSL Lawyers.

Asia Gaming Briefings | April 2022

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Wai Ming Yap*

Partner, Morgan, Lewis & Bockius LLP

Gina Ng*

Senior associate, Morgan, Lewis & Bockius LLP

Singapore’s new regulations to address tech, gaming boundaries The revision of Singapore’s legal framework addresses two main challenges: technology and ease of access, and boundaries between gaming and gambling. Wai Ming Yap, a partner at Morgan Lewis & Bockius LLP, and senior associate Gina Ng, explain the key changes to Singapore’s gaming bills and what they will mean for the industry, land-based and online.

wo bills were passed in the Singapore Parliament on 11 March 2022 to address the evolving gambling landscape in Singapore. The Gambling Regulatory Authority of Singapore Bill expands the mandate of the Casino Regulatory Authority – a statutory board – by reconstituting it to establish the Gambling Regulatory Authority, while the Gambling Control Bill updates gambling laws and regulatory approaches. The Singapore government has generally adopted a strict but pragmatic approach toward gambling. Gambling is prohibited unless licensed or exempted. Some forms of gambling are allowed in a controlled and safe environment, as the Singapore government takes the view that total prohibition would drive gambling underground and result in greater law and order and other social issues. The GRA Bill and GC Bill do not seek to change the existing approach towards regulation of the gambling landscape in Singapore but have sought to address two significant emerging trends. Firstly, technology has led to an increase in online gambling as gambling now can take

Asia Gaming Briefings | April 2022

place anywhere and anytime through electronic devices and smartphones. Secondly, the boundaries between gambling and gaming have become increasingly blurred, which may lead to the normalization of gambling behavior, if left unregulated. In particular, products that were traditionally not perceived as gambling, such as mystery boxes, have now been adapted to include gambling elements. Establishment of the GRA Gambling regulation in Singapore is currently overseen by various government agencies. The CRA regulates the land-based casinos, the Gambling Regulatory Unit in the MHA regulates online gambling services and fruit machines, while the Singapore Totalisator Board regulates physical gambling services operated by Singapore Pools. The Singapore Police Force is responsible for enforcement, while the Ministry of Social and Family Development is responsible for social safeguards to address the harms of gambling.

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The passing of the GRA Bill will expand the CRA to form the GRA as the single regulator for all forms of gambling to pool and optimize resources and expertise across the Singapore government. The GRA is expected to be established by mid2022. The rationalization and consolidation of regulatory oversight is expected to allow the Singapore gambling regulator to keep pace with trends in the gambling landscape more effectively, and take a more holistic and coherent approach to gambling policies and issues. In addition to overseeing existing regulatory regimes, the GRA will also oversee new regulatory regimes, such as the new licensing regime for gambling in private establishments and class-license regimes for low-risk gambling products. Consolidating existing laws The GC Bill essentially seeks to consolidate the existing laws regulating gambling outside the casinos. The newly passed GC Bill will cover unlawful gambling offenses and regulation of non-casino gambling and replaces existing gambling legislation, namely the Betting Act (BA), Common Gaming Houses Act (CGHA), Private Lotteries Act, and the Remote Gambling Act (RGA), which will be correspondingly repealed. The key objectives of the new GC Bill are to address emerging trends and products, such as mystery boxes and loot boxes in video boxes. It also seeks to ensure consistency in the regulatory treatment of different products. Current regulatory mechanisms for gambling

are distributed across various legislation and are regulated by the type of gambling products and the modality of gambling, rather than being technology-neutral. Finally, the GC Bill also seeks to enhance existing social safeguards. Definition of Gambling The passing of the GC Bill will amend the definition of gambling to make it technologyneutral to cover existing and emerging gambling products. For example, the definition of betting will go beyond horseracing and sporting events to also include the outcome of any competition, event, or process. However, the expansion of the definition will not cover products that MHA has no intention of treating as gambling products (e.g., investments in financial products already regulated by the Monetary Authority of Singapore through other legislation). In addition, to address the transnational nature of online gambling activities, the definition of remote gambling will now also cover situations where the facilities are outside of Singapore, whether in part or in full. The prohibition and offenses under the new law will apply even if the offenders reside overseas, as long as their customers are in Singapore. Social Gambling Physical social gambling is not prohibited under current gambling legislation. The Singapore government recognized that such activities are

commonplace amongst many Singaporeans, such as playing mahjong at home and law-andorder concerns are low. To provide clarity on the legality of social gambling, the GC Bill clarifies that physical social gambling is exempted as long as the following key conditions are met: The gambling activity must be conducted in an individual’s home. This excludes public places (e.g. decks, coffee shops, hotels and chalets); The participants must be members of the same family or know each other personally; Social gambling must not be conducted for the private gain of any person who is not participating, or in the course of any business, and no participant should be able to obtain a benefit other than winning. For example, no commission, charges, or fee, should be sought from the participants. However, online social gambling will continue to be disallowed on the basis that it is difficult, if not impossible, to ascertain whether participants are socially acquainted online. While the police will be practical in enforcing social gambling breaches, enforcement will be firm against criminal gambling syndicates that seek to exploit the exemption to conduct illegal gambling. Licensing regimes With the passing of the GC Bill, the GRA will take over regulation from the different governing agencies for key gambling products. The GRA will be empowered to issue gambling operator licenses for certain gambling products, such as fruit machines or recreational clubs, Singapore Pools’ products (both physical and online), and gambling at private establishments such as recreational clubs and societies. In particular, the GC Bill introduces a new licensing regime for gambling among members at private establishments, such as social clubs and clans. At present, private establishments are not required to apply for a license to have gambling on their premises. They are legally permitted to provide gambling in games such as mahjong for their members within their premises, provided they meet stipulated conditions relating to the types of games and the number of participants. To address concerns of illegal gambling taking root in private establishments, the GC Bill will require a private establishment to apply for a license, which will allow the GRA to screen key personnel for their eligibility to hold a gambling operator license and to introduce surveillance requirements for enforcement at these licensed private establishments. The GC Bill also introduces a class license regime for the GRA to regulate lower-risk gambling

Asia Gaming Briefings | April 2022

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products. Operators offering such products will not need to be individually licensed, including mystery boxes, online games with gambling elements, and business promotion lucky draws. A class license regime differs from a licensing regime in that an operator is not required to apply for a license. The class-licensed operator can operate as long as the stipulated conditions, which will be set out in subsidiary legislation, are satisfied. Penalties for unlawful gambling The GC Bill rationalizes offenses and penalties across the existing pieces of gambling legislation. All gambling activities will be prohibited unless they are licensed or exempted, regardless of whether it is conducted online or physically. Unlawful gambling activity will be an offense for all persons involved, including operators, agents, and punters. A three-tier penalty structure will be applied consistently for unlawful gambling activity and differentiates between operators who set up the unlawful gambling activity, agents who facilitate the conduct of the unlawful gambling activity, and punters who participate in the unlawful gambling activity, The highest penalties will be imposed on operators, followed by agents and

Asia Gaming Briefings | April 2022

then punters (in order of culpability). Penalties for unlawful gambling will also be increased to send a strong deterrent signal to criminal syndicates. The GC Bill imposes mandatory imprisonment for operators and agents of unlawful gambling activities and will also feature higher penalties for repeat offenders who facilitate or operate unlawful gambling services. Ban on proxy betting Proxy gambling in casinos and fruit machine rooms will be criminalized under the GC Bill. Proxy gambling takes place when an individual gambles on behalf of another person, thereby circumventing entry checks which are meant to screen out persons under the entry bans. The offense will only apply to casinos and fruit machine rooms, where law-and-order and social concerns are higher, but not to other settings like the Singapore Pools’ outlets. Enhanced social safeguards Under the GC Bill, the minimum age for gambling will remain at 21 years old, except for gambling at Singapore Pools’ physical outlets, which will remain at 18 years old. Three sets of

offenses pertaining to underaged individuals are introduced with the GB Bill. Firstly, it will be a criminal offense for underaged individuals to gamble, whether with legal or unlawful operators. Secondly, it will be a criminal offense for underaged individuals to enter gambling areas. Singapore Pools’ physical outlets are excluded from this offense as it is not impractical to implement entry checks for these outlets. Opening of online gambling accounts with Singapore Pools by under-aged persons will also be a criminal offense. Thirdly, gambling with underaged individuals that is not social physical gambling, inducing underaged individuals to engage in gambling that is not social physical gambling, or employing underaged individuals to conduct gambling, will each constitute a criminal offense. The offense of inducement has strict liability to allow for more effective prosecution. This means that a person commits an offense once he sends out any inducement to gamble, and with no need for the prosecution to prove the intent to induce. Excluded individuals and entry bans Currently, exclusion orders are issued under the Casino Control Act by the National

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Council on Problem Gambling (NCPG), the Commissioner of Police, and the CRA. Exclusion orders issued by NCPG prevent persons from entering the casinos to mitigate the harm of gambling to the excluded persons and their families. In addition, individuals under NCPG’s exclusion orders are also prevented from entering fruit machine rooms or accessing Singapore Pools’ online gambling services, using operators’ exemption or permit conditions. The exclusions are, however, carried out administratively, rather than by way of provisions in gambling legislation. There are also no legislative provisions to allow the Commissioner of Police and CRA to prevent persons from entering fruit machine rooms or accessing Singapore Pools’ online gambling services. The GC Bill, therefore, codifies the current exemption or permit conditions in law, to allow NCPG to issue exclusion orders to persons to prevent them from entering fruit machine rooms and from betting on Singapore Pools’ online gambling products, in addition to being excluded from the casinos. It will also introduce an entry ban by law enforcement agencies and GRA and empower them under legislation to ban individuals who pose law-and-order or regulatory concerns from entering fruit machine rooms and accessing Singapore Pools’ online gambling products. Advertising and promotion offenses Currently, the existing gambling legislation criminalizes advertising and promoting unlawful gambling. However, the threshold for proving an Advertising and Promotion (A&P) offense is lower for unlawful online gambling than that for unlawful physical gambling. For online gambling, an A&P offense can be made out as long as there is A&P for gambling without the need to prove that the promoted site provides gambling. On the other hand, for physical gambling, the A&P offense must be linked to actual unlawful physical gambling activities, which sets a higher bar and imposes enforcement difficulties. The GC Bill introduces an offense for advertising unlawful gambling and applies the threshold that is currently in place for online gambling to physical gambling as well. * Wai Ming Yap is a partner at Morgan, Lewis & Bockius LLP and is also the Managing Director at Morgan Lewis Stamford LLC, a Singapore law corporation affiliated with Morgan, Lewis & Bockius. Gina Ng is a senior associate.

COMMENTS The passing of the GRA Bill and the GC Bill will lead to wideranging changes to the existing gambling regulatory landscape in Singapore and will have significant implications on all gambling operators operating in Singapore, or who offer gambling activities to persons in Singapore. Operators of land-based casinos and online gambling (including online games with gambling elements) will need to carefully monitor when the GRA Bill and the GC Bill come into effect and consider the implications it will have on their operations. For example, with the new offense of proxy gambling, casinos will be liable to regulatory action, like financial penalties, if they fail to enforce action against proxy gambling in casinos (e.g. by putting in place measures to detect proxy gambling in casinos or training casino staff to detect proxy gambling). Operators of online games with gambling elements (e.g. mystery boxes and loot boxes) will need to consider whether they fall within the class license regime and ensure that they comply with applicable conditions. As licensing standards and details are expected to be set out in subsidiary legislation and regulations, such gambling operators should carefully monitor the passing of subsidiary legislation and issuance of regulations or other official statements to assess the scope of the licensing regime. Private establishments, which were previously permitted to offer gambling on their premises without a license (e.g. recreational clubs and societies) should also consider the impact of the new licensing requirements on their activities. Independent legal advice may need to be sought as to how the new laws impact the business of gambling operators. Interestingly, during the parliamentary readings and debates on the GC Bill and GRA Bill, the Minister of State reiterated that current Singapore law and regulations do not consider chance-based loot boxes as gambling, as long as there are no in-game monetization facilities (i.e. facilities that allow players to exchange virtual prizes for real-world payouts, such as money or merchandise). The Minister made

express reference to the position as set out in the 2015 advisory issued by the Infocomm Media Development Authority (IMDA) on the scope of the Remote Gambling Act. The position was not previously entirely satisfactory as the IMDA advisory is a ministerial statement that is not set out in legislation. It was also not entirely clear whether the IMDA advisory, which was made in the context of the Remote Gambling Act, which will be repealed and replaced by the GC Bill, would continue to apply in the context of the GC Bill. The statements made by the Minister of State in parliament perhaps suggest that the position under the IMDA advisory would continue to apply and that the GC Bill similarly would not target or prohibit social games which do not allow players to convert in-game credits to money or real merchandise. In response to a query from a Member of Parliament as to whether loot boxes will be considered a lottery if virtual rewards cannot be monetized in the real world, the Minister responded that since these virtual rewards have no real-world value, such loot boxes will not be considered gambling under the GC Bill. The Minister, however, also stated that the Singapore government would be reviewing the landscape of online games of chance, including how to regulate advertisements of online games of chance that fall within the definition of gambling under the Gambling Control Bill. It appears that the advertising of online games of chance that may be considered gambling remains a key concern of the Singapore government and we may see additional regulations in the future in this regard. The Minister also clarified that creating, or trading NFTs, is not considered gambling unless there is an element of chance involved in their creation or trading. However, gambling services that use NFTs as a stake or prize will be covered under gambling legislation.

Asia Gaming Briefings | April 2022

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Joji Kokuryo

Managing Director, Bay City Ventures

Government gambling sees online boom, pachinko/pachislot suffer When it comes to gambling in Japan, the world has been keenly focused on the development of an integrated resort industry. However, as Joji Kokuryo, managing director of Bay City Ventures writes, the country already has a vibrant and evolving gambling scene.

rom the tea-tasting competitions known as To-Cha, the popular Cho-Han dice game often seen in samurai films, to the bright lights and sounds of the modern pachinko parlor, gambling has always been a part of the social fabric of this island country. These days, Japan has gained international attention with the integrated resorts’ policy that essentially legalizes land-based casinos within its borders. However, casino gaming is a very late addition to the array of governmentmanaged gambling after horse racing, cycling, motorbikes and motorboats. There is also the national lottery, scratch cards and the Toto sports lottery. In a separate category is the “entertainment machine” industry known as pachinko and pachislot. Land-based gaming regulation is still in its infancy and the newly formed Japan Casino Regulatory Commission should have ample time to prepare for the first casinos to open. In the meanwhile, the past few years have

Asia Gaming Briefings | April 2022

seen notable trends in the operation and regulation of gambling in Japan. The first and most obvious trend has been the operational success with digitalization in government-managed racing. The national Japan Racing Association (JRA) recorded a betting turnover of over 3 trillion yen ($25.3 billion) in 2021, the first time it has hit the 3 trillion mark since 2003. This is despite Covid-19 causing intermittent closures of satellite betting stations and most racing days being held with no crowds. An all-time low one-year total attendance of 722,670 at live race tracks is about 11 percent of the expected turnout in a non-Covid year. The JRA owes its success and its 10th consecutive year of growth to the successful transition of users to their online betting platform. Connecting directly with user bank accounts, it became easier than ever for Japanese citizens to bet from home. In 2020 alone, the number of JRA internet members increased by 590,000 and the total number of registrants reached 5 million for the first time.

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In March 2021, Japan was included in Google’s list of countries where gambling apps would now be allowed on Google Play. While ears perked up in the international online gaming industry, this change was made strictly for the aforementioned government-managed forms of gambling. Naturally, similar patterns of digitalization success can now also be seen with all of Keirin cycle racing, Kyoutei motor boat racing, Auto Race motorcycle racing, the national lottery and the Toto sports lottery. In legislative updates, the national Toto sports lottery, which has always been based on professional football results, will soon be adding domestic B-League professional basketball to its purchase options. Known officially as the Sports Promotion Lottery, the law to introduce Toto was passed in 1998 and the lottery began operation in 2001. A revised law passed in December 2020 will soon allow for lottery results based on B-League games. This is the first addition to the event slate since the FIFA World Cup, the English Premier League, FA Cup and Football Leagues, and the German Bundesliga. It is very telling that an up-and-coming developing sport in Japan like basketball was chosen and not the uber-conservative yet immensely popular Nippon Professional Baseball League. The revival and growth of government-

managed gambling has not been applicable to the much-ballyhooed Pachinko/Pachislot industry. The market is facing strong headwinds, as the turnover, player counts, number of machines and the number of parlors have all seen varying degrees of decline in recent years. The total number of machines decreased by 4.5 percent from 4,195,751 units in 2019 to 4,004,611 units in 2020, however the bigger issue was the accelerated closures of smaller parlors. The number of total parlors dropped 6.3 percent from 9,639 in 2019 to 9,035 in 2020. Overall revenue drops are also large corporate issues and another topic on its own. While there are many social, business and Covid factors that have led to a downturn for this bricks and mortar industry, there have also been notable regulatory changes in the operation of the pachinko and pachislot machines that have had an effect on players, parlors and manufacturers alike. One such change was the revisions released in February 2018 and which have already been put in effect for gradual transition. In a nutshell, the changes called for new specification requirements in how gaming machines paid out credits (in the form of pachinko balls and pachislot medals). Anytime a new set of regulations is put into effect, all suppliers need to produce and test their new games under the new regulations, and

all parlors need to eventually replace their machines after a set period of time. Unlike the casino gaming industry, this is not just a change of game media in the same cabinet, a new game means a new box. This in itself takes a financial toll on development, testing and approval costs for suppliers, as well as procurement, marketing and operation costs for the parlors. From a user perspective, both pachinko and pachislot games are to be less volatile and will prevent players from losing large amounts in a short period of time. The pachinko side has had it better with their new P-Machine regulations and it looks like suppliers have found a balance within the regulations to keep their games somewhat interesting. There were also revisions made in 2019 and 2020 to allow for a bit more leeway on pachinko game volatility. The biggest hit, however, is on pachislot games, which under the new Generation-6 regulations are now required to have clear limits on how many medals can be paid out in one consecutive winning feature. On top of all of the regulatory challenges for the entire industry is the everdwindling player numbers and difficulty in attracting younger generations. Joji Kokuryo is the Japan-based managing partner of Bay City Ventures.

Asia Gaming Briefings | April 2022

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Jamie Nettleton*

Investigations into the Australian casino sector are extensive and ongoing, write Jamie Nettleton and Brodie Campbell, a partner and solicitor respectively, with law firm Addisons. In this article, the lawyers outline some of the key updates and their implications.

Partner, Addisons

Brodie Campbell*

Solictior, Addisons

AUSTRAC Crown probes carry potential for major financial pain

n 1 March 2022, the Federal financial crimes regulator, the Australian Transaction Reports and Analysis Centre (AUSTRAC), commenced proceedings against Crown Melbourne and Crown Perth concerning non-compliance with Australia’s anti-money laundering and counterterrorism financing (AML/CTF) laws. Australia’s AML/CTF laws are comprehensive, apply to a wide variety of entities, including casinos, and are directed at ensuring that relevant entities have in place sufficient measures to adequately deter, detect and disrupt money laundering, the financing of terrorism, and other serious financial crimes. Consistent with findings made in connection with evidence given to an inquiry in New South Wales and the Royal Commissions in Victoria and Western Australia, AUSTRAC has alleged systematic noncompliance by both Crown Melbourne and Crown Perth with their obligations under AML/CTF laws. In particular, AUSTRAC has alleged that Crown Melbourne and Crown Perth failed to: • appropriately assess and respond to AML/ CTF risks; • implement appropriate AML/CTF programs and risk-based systems and controls; • establish an appropriate AML/CTF oversight framework; • implement an adequate transaction monitoring program to identify suspicious activity; and • implement an enhanced customer due diligence program and conduct ongoing customer due diligence. AUSTRAC has alleged over 500 breaches by Crown Melbourne and Crown Perth combined in respect of one provision of the Australian AML/CTF Act alone, namely section 36, which relates to requirements regarding ongoing customer monitoring. In some cases, the breaches alleged by AUSTRAC are ongoing and are too innumerable to quantify. The maximum penalty that can apply for each contravention ranges from $18 million to $22.2 million. Similar proceedings have been initiated by AUSTRAC previously, each of which resulted in the imposition of substantial fines. For example: in October 2020, the Federal Court of Australia ordered Westpac Banking

Asia Gaming Briefings | April 2022

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Corporation to pay a penalty of $1.3 billion, while in June 2018, the Commonwealth Bank of Australia reached an agreement with AUSTRAC to pay a penalty of $700 million. AUSTRAC is also looking at several other casino operators in relation to compliance with Australia’s AML/CTF laws. For example, in addition to the Federal Court proceedings against Crown, AUSTRAC has announced that it is currently investigating The Star Entertainment Group, which runs casinos

in New South Wales and Queensland, and SkyCity Adelaide. The potential for money laundering to occur in venues is also being closely scrutinized by the New South Wales Crime Commission (NCC). The NSW Government announced in December 2021 that the NCC was conducting an inquiry into money laundering at licensed premises in NSW. The inquiry will examine the nature and extent of money laundering that may be occurring in NSW pubs and

clubs (particularly through electronic gaming machines) and potential vulnerabilities with NSW legislation governing gaming machines, which could be exploited for money laundering. It is clear that the potential for money laundering to occur in gaming venues is something that will be subject to close attention by AUSTRAC and other Australian regulators. This is also an issue that is likely to be canvassed during the public hearings into The Star, which are currently being conducted by the NSW regulator and which follow alleged AML/CTF shortcomings at Star’s Sydney casino. Before the AUSTRAC proceedings, Crown had already come under intense scrutiny over money laundering risks and alleged infiltration by organized crime through dealings with overseas junket operators. Both the inquiry in New South Wales and Royal Commission in Victoria made damning findings in relation to Crown, each concluding that Crown was not suitable to hold casino licenses in the respective jurisdictions and recommending that extensive structural and governance changes be implemented by Crown before suitability could be achieved. In addition to the NSW inquiry and Royal Commissions in Victoria and Western Australia, Crown was also issued the maximum fine of $1 million by the Victorian gambling regulator in April 2021. This fine was related to an alleged failure to comply with regulatory requirements concerning junket operators. In December 2021, the Victorian gambling regulator again fined Crown the maximum fine of $1 million, also over an alleged failure to comply with regulatory requirements relating to historical junket operations. Following the Royal Commission into Crown Melbourne, the Victorian Government has since increased the maximum penalty that may be imposed by the Victorian gambling regulator to $100 million. In Victoria, the Royal Commission into Crown Melbourne has already resulted in widespread changes to the Victorian gambling regulatory regime. New South Wales similarly has committed to the establishment of a new independent casino regulator. The extent to which the Perth Royal Commission will result in changes to the Western Australian regulatory regime remains to be seen. * Jamie Nettleton is a partner with Australian law firm Addisons and Brodie Campbell is a solicitor with the same firm.

Asia Gaming Briefings | April 2022

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Felix Ng

AGB Asia Editor

Harmony needed in gaming regulations A slew of gaming industry wrongdoings and compliance mishaps over the last two years have sparked calls from the industry for a more consistent approach to gambling regulation.

uring an Australian gaming conference in March, it was argued that the piecemeal approach to gaming regulation has made it extremely onerous for those operating to fight problem gambling and gambling-related financial crime. Australia’s gaming industry regulators, lawyers and operators said that a harmonized approach needs to not only apply between states and territories, but also across different regulating bodies and industry sectors. Crown’s chief risk officer, Steven Blackburn said the operator has been facing “interesting challenges” when the responsibilities of state and federal regulators overlapped. “One of the challenges we at Crown are facing, and that I think many of the other industry players will face in the not too distant future, is that the approach by jurisdictions is different.” “And I’m certainly not the first you will hear say that harmonization is necessary.” “I respect that it’s not easy to do. But state and Commonwealth legislation at this point can create division, where collaboration should exist to truly build a beneficial responsible gaming regime and financial crime regime.” Shared problems “We need to start with an understanding that the challenges in these spaces do not change because of some arbitrary line in the center of the Nullarbor or along the Murray River. They simply don’t change. They are the same problems in each jurisdiction.” Even the NSW Bergin Inquir y in 2020-21 recognised that a uniform national regulatory model could be adopted “to afford greater protection for casino operators to the disadvantage of the organized criminals and money launderers” However, David Green, a veteran in the gaming industry told AGB last year that state governments will be unlikely to relinquish their power to grant and regulate casinos in their territories to the commonwealth government. This lack of uniformity can also be witnessed in the soon-to-be launched self-exclusion program by Australia’s media watchdog ACMA in mid-2022. The NSER, as it is currently named, allows individuals to voluntarily exclude themselves from

Asia Gaming Briefings | April 2022

online or phone wagering across the country, including related advertising. Unify exclusion laws But the register does not apply to retail betting venues, Keno, lottery, or land-based gaming venues - each of whom have their own venue specific exclusion programs. “People experiencing gaming-related harm cannot be

FOCUS 31

assisted if they simply jump from a casino that has tighter controls to another casino across the harbor or to a pub or club in the West End,” said Blackburn during a speech at the conference. Josh Landis, CEO of ClubsNSW made a similar argument in relation to money laundering during a panel discussion on building sector capability - arguing that it did not make sense that a pokies club would not have access to the same information that would lead a casino to ban a certain patron. “It’s no secret that the New South Wales Police identify for The Star casino who they think is at risk of being a money launderer and should not be allowed in the casino.” Widen tip offs Landis said that under “tipping off ” laws, a casino that has banned an individual for

“

And I’m certainly not the first you will hear say that harmonization is necessary.

”

suspected money laundering is not allowed to share these details with other parties, such as other gaming venues. “Change the law. We’ll ban those people too. If it’s good enough to ban them from a casino, then we’ll ban them from a club,” said Landis. Reflecting on the five-day educational

program, Paul Newson, principal of Senet Advisory said that the conference increased the emphasis on collaboration and partnership between regulators and the industry to achieve better outcomes, particularly for responsible gambling and financial crime. “We are thrilled with how Regulating the Game has been received and key themes that have surfaced throughout the week including the dominance of culture in shaping how effectively key RG and AML related initiatives are implemented, the merits of all stakeholders being active in the public square contributing to public policy discussions, the need for better RG training to support early engagement with customers and support a safer gambling experience.” Felix Ng is AGB’s Asia Editor

Asia Gaming Briefings | April 2022

AUSTRALASIA

AUSTRALIA

Eyes turning back to Asia for tourism growth

Australia’s casinos have seen strong support from the domestic market during Covid, but are now hoping for the return of Asian tourists to drive further growth.

Asia Gaming Briefings | April 2022

AUSTRALASIA

“I

“The people who are visiting our three ntheshortrunwecancompensatewith domestic travel,” Star Entertainment premises at Brisbane, Gold Coast and Sydney CEO Matt Bekier said in a recent are spending more money. The average spend is interview with Bloomberg. “In the up substantially. There’s maybe a gap between long run, the future of Australian tourism the haves and the have-nots, but the disposable income of those going out is substantially up,” hinges on China and Southeast Asia.” Star and rival Crown Resorts had hoped he was cited as saying by local media. Star’s fiscal first half was affected by to capitalize on the surging Asia VIP market, spending billions of dollars on revamping their Covid lockdowns, but the company has properties over the past decade. Crown’s $2.2 seen a strong recovery on reopening from billion Barangaroo resort in Sydney, which October 11, 2021. Domestic revenues at The Star Sydney opened in 2020, is VIP only, with none of the slot machines that are popular amongst the were up 28 percent from the prior-year period, and were approaching pre-Covid levels in domestic player base. Hopes of capturing that market evaporated November and December, particularly in mass long before Covid. China’s anti-corruption revenues. Non-gaming revenue was up 46.5 campaigns, coupled with trade tensions, took percent from the prior period after reopening. In Gold Coast, domestic revenue was up the steam out of the market. The final straw for Australian operators’ flirtation with the largest 6 percent from the prior-year period, whilst whales came following regulatory probes into non-gaming revenue was up 35 percent despite the operating restrictions Crown Resorts, which upon reopening. forced the severance of It was a similar story at all ties between Australian Crown Resorts, which has casinos and junket operators. In the long a currently non-gaming Still Bekier says he resort in Sydney, a flagship sees a future in China and run, the future property in Melbourne Southeast Asia. of Australian and another in Perth, “In the past, 20 percent tourism hinges Western Australia. of our gross revenue The company reported came from high rollers, on China and that its net loss widened to that’s about 12 percent of Southeast Asia. A$196.3 million ($141.5 earnings. It’s always a high million) in the six months turnover but relatively low due to property closure margin business. “ costs from the lockdowns. “There’s a host of However, statutory revenue was up 34 percent regulatory changes that are happening here. The sale of the jet signals the very top-end junket year-on-year, reaching $778.6 million. Reported type business – well we don’t expect to see that EBITDA loss was $47.5 million, down from a back. So we are adjusting our business model.” profit of $4.4 billion in the prior-year period. Crown noted that Crown Melbourne “But I look forward to welcoming many Chinese mass-market customers and tourists saw more than a two-fold uptick in revenue, back to Australia as soon as possible,” said Bekier. reaching $265 million. This was driven by an Star Chairman John O’Neill has called for increase in main floor gaming revenue and imaginative solutions to try to bring in tourists non-gaming revenue of $187.6 million and $77.4 million respectively. to replace the missing Chinese clientele. The revenue uptick was also despite He said the country needs to go beyond beaches, food and wine and should focus on the property having been closed for 96 days throughout the half-year and reopening with the country’s strong safety record. “The borders will be open [and] this is restrictions from mid-October. Crown noted that the reported EBITDA a great place to visit. You’re not going to get mugged walking down the streets of Brisbane, of Crown Melbourne was a narrowed loss it’s safe and secure,” he said. “It’s such a good of $79.6 million, down from a loss of $87.8 million in 2021. story, we just have to try and tell it.” In Western Australia, Crown Perth saw a Without the overseas tourists, Australia’s casino sector has proved resilient when they slight fall in revenue in the six months compared to the prior-year period, reaching $402.9 million have reopened from lockdowns. O’Neill has said visitor spending has (down 1.5 percent). Reported EBITDA was down 34.8 percent to $105.8 million. been strong.

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GROSS GAMING REVENUE Crown Resorts 1H22 Statutory revenue $778.6m

+34%

NPAT -$196.3m vs -$120.9m Star Entertainment 1H22 Revenue $581m

+23%

NPAT -$74m vs +$51m

Covid triggers rise in online gambling Research from Australia’s communications watchdog ACMA has revealed an increase in online gambling and online sports betting during 1H21, compared to before the pandemic. According to the Online gambling in Australia snapshot, undertaken in June 2021, around 11 percent of Australians have reported participating in online gambling at some stage between 1st January to 30th June, 2021, up from 8 percent in the prior year period. It also showed an increase in sports betting, with 8 percent of Australians betting on sports or racing over the six month period, compared to 5 percent in 2020. The research provides insight into the impact of COVID-19 on online gambling habits, with 16 percent of Australians who gamble online reporting an increase in their gambling frequency compared to before the pandemic.

Crown breaches “serious and systematic:” AUSTRAC Australia’s financial crimes and antimoney laundering watchdog has begun civil penalty proceedings against Crown Resorts for “serious and systematic” breaches in the law. AUSTRAC alleges Crown Perth and Crown Melbourne contravened their obligations under the Anti-Money Laundering and CounterTerrorism Financing Act 2006 following an investigation that began in October 2020. Crown Resorts said its properties had cooperated fully with the investigation and it warned shareholders last year that it was expecting the probe to result in financial penalties. The regulator’s documents are before a court, which will decide on penalties, which could be severe. In October last year, the Federal Court of Australia ordered banking group Westpac to pay a penalty of $1.3 billion.

Asia Gaming Briefings | April 2022

NORTH ASIA

KOREA

Korea reopens borders, but lack of Chinese tourists to weigh South Korea reopened its borders to vaccinated travelers from April 1st, providing some relief for its foreigner-only casinos, but recovery is expected to be a long haul given the lack of Chinese visitation. Asia Gaming Briefings | April 2022

NORTH ASIA

he country has 17 foreigner-only casinos, eight of which are on the southern island of Jeju, with the latter in particular being heavily reliant on visitors from Mainland China. As Beijing sticks rigidly with its zero-Covid policy, China is expected to be the last area in Asia to reopen its doors, with most now looking out to 2023. Only three of Jeju’s casinos are actually open, including Landing International’s Jeju Shinhwa World and Lotte Tour Development’s Dream Tower. Both of these two larger resorts feature significant non-gaming amenities and as a result have generated revenue from the domestic market. The Jeju casinos have sought relief from the government, petitioning for visiting locals from the peninsula to be able to gamble, but their pleas have fallen on deaf ears. “There will come a point where the absence of any meaningful gaming revenue will take its toll as fixed expenses fully deplete cash reserves,” says Andrew Klebanow, founder of C3 Gaming. “No business can survive indefinitely without customers, and Korea’s policy of prohibiting its residents from gambling in all but one casino in the country could spell the demise of several properties.” Another key unknown for South Korea’s

casino sector will be the policies of the incoming administration towards the gaming industry. Little is known in this regard as yet, but what is known is that the new prime minister is conservative and likely to adopt a more hawkish tone towards China and South Korea. Yoon Suk-yeol, a former top prosecutor, was narrowly elected in March and is expected to foster the country’s traditional alliance with the U.S. In the past this has proved disastrous for South Korea’s foreigner-only casinos. Seoul’s decision to install a U.S. anti-missile defense system in 2017 triggered a ban on group tours from China and a subsequent slump in tourism and revenue. Still, Hazell Lee, an analyst with NH Investment & Securities, has a more upbeat view of the sector and sees light at the end of the tunnel. Her top pick is Kangwon Land, which is the only operator where locals can gamble. She sees the second line of recovery as being among the foreigner-only casinos, which have a strong non-gaming entertainment offering that can attract locals, while the foreigner-only casinos will be the slowest to recover. A look at the most recent figures shows the resilience of the resorts that are able to generate non-gaming revenue, especially while

locals are unable to travel overseas. Hong Kong-listed Landing has said 2021 revenue surged 70 percent due to strong domestic demand at Jeju Shinhwa World. Jeju Shinhwa World is the largest integrated resort on Jeju and boasts a wide array of nongaming amenities, such as a theme park and water park. During the year, the company launched a series of marketing campaigns aimed at attracting local tourists. Paradise, which runs the Paradise City IR in a joint venture with Sega Sammy, as well as the Jeju Grand, Paradise Walkerhill and Paradise Busan casinos, also said it had seen strong hotel demand. The company reported a 7.1 percent uptick in sales in 4Q21, supported mainly by a 57.3 percent increase in hotel sales. Sales at its IR business were up 8.4 percent. Jeju Dream Tower also noted significant local demand when it launched a marketing promotion at the end of last year. It said it sold more than 8,500 room packages in just 70-minutes as part of their end-of-year sales. The sale was conducted through the Hyundai Home “With the spread of Corona, group inquiries are rapidly increasing, and sales from rooms to food and beverages and casinos are increasing significantly,” it said at the time.

SOUTH KOREA TOURISM TRENDS 20 15 10 5 0 2000

2005

2010

2015

2020 2021 (Source: Statista)

Midan City promoter granted extension, seeks operator Guangzhou R&F Properties has been granted an extension for another year to complete its project in Incheon, South Korea and has pledged to find an operator partner. According to local media reports, this was the fourth construction deadline extension for the group, which now gives it until March 2023. The company had sought a two-year extension, but the Ministry of Culture only conceded one and said it would be difficult for the group to push the deadline out any further. Guangzhou R&F’s local unit, which is developing the project, has resumed construction after a threeyear hiatus and will seek a casino operator and luxury hotel partner this year. The reports said more than 80 percent of the structure has now been completed and the company plans to invest an additional 47 billion won after selling off land for residential apartments. The project is known as Midan City and it was given a preliminary license in 2014. It was originally a venture between Caesars Entertainment and Hong Kong’s Lippo Group.

INSPIRE looks for luxury lift Mohegan Gaming & Entertainment’s INSPIRE Entertainment Resort has teamed with the Luxury Business Institute Korea to develop a high-end retail strategy for the development. The Luxury Business Group is a consulting firm focused on luxury and premium industries in fashion, cosmetics, food and beverage. “With the signing of a new business agreement between INSPIRE and Luxury Business Group, who are at the forefront of global luxury retail, we expect to set up a successful retail platform strategy and sales marketing for our luxury resort on Yeongjong Island,” said Andrew Billany, INSPIRE’s CEO. “This will not only give an economic lift to Yeongjong Island and Incheon’s economy but also differentiate INSPIRE by offering high quality, curated brands and experiences throughout the resort.” INSPIRE is expected to open in 2023 in Incheon, close to the international airport in Seoul, one of Asia’s busiest. Built over 461,661 square meters, the resort will be the largest in Northeast Asia.

Asia Gaming Briefings | April 2022

SOUTH ASIA

NEPAL

India attraction remains key driver for Nepal casinos Nepal’s casino industry has been attracting foreign investor interest, due to the allure of its proximity to India, though it is yet to breakthrough as a premier gaming destination with numerous setbacks over recent years.

Asia Gaming Briefings | April 2022

SOUTH ASIA

he country has a relatively long casino visa-free entrance to residents from Nepal’s history in Asian terms. The first casino highly populous neighbor. If India’s Uttar opened in 1968, headed by American Pradesh were a country, it would be one of pioneer Richard Doyle Tuttle. the most densely populated in the world with The Himalayan nation now has 11 casinos more than 200 million people. housed in five-star hotels and 11 so-called “People are investing in the border,” Shrestha mini-casinos – effectively electronic gaming said. “People are taking much more interest rooms – in four-star hotels. All were forced to because of the foot traffic. Air traffic to Nepal close due to Covid in March 2020 for 18 months. isn’t so good. We have a problem with access.” They were permitted to reopen at the end Still, the situation is slowly improving. of September last year, but faced another short The new international terminal at the airport shut down towards the end of the year due to in Bhairahawa has been completed after a the spread of Omicron. five-year delay. Calibration flights by AeroThai The industry was attracting relatively strong have been completed and it is expected to open foreign investor interest prior to the pandemic. to commercial traffic on or before Buddha’s Its key attraction is its proximity to India, where Birthday (May 8th) this year. casinos are banned apart from in the southern The airport is about a 10-minute drive from coastal state of Goa and Sikkim in the north. the Tiger Palace and will be a major driver for Analysts have in the past future growth, an industry identified India’s casino market source said. as a $4 billion opportunity, There has also been with Nepal well positioned major investment into Nepal’s People are to attract those players. highways, with much of it Official tourism figures funded through China’s Belt taking much to the country only count and Road Initiative. more interest those arriving by air and C h i n a’s g r o w i n g don’t reflect the numbers of involvement in Nepal’s because of the people who cross the porous businesses is another factor foot traffic. land borders. that is helping to support Indians make up about growth in the casino industry, 90 percent of the market bringing along with it a large in Nepal’s foreigner-only expatriate workforce. casinos and it’s vital to understand their gaming According to figures cited by Xinhua, preferences to succeed, Binod Shrestha, president Chinese investors pledged 11.15 billion Nepali of the Nepal Casino Association, said. rupees ($94.65 million) in Nepal during the first Most of the major Indian casino operators two months of the 2021-22 fiscal year starting now have a presence in Nepal and about three in mid-July, about half of all investment in the to four new premises have opened in the past entire prior fiscal year. two and a half years, Shrestha said. The five-star Hotel Aloft, a brand of The Hotel Mechi Crown, which is about the Marriott Group, opened in the Thamel 5km from the border with India, opened in area of Kathmandu in July 2019 and now October 2020 and is home to Casino Vegas, hosts the Casino Waldo, which is backed by which claims to be the largest in the country Chinese investors. so far. The casino is operated by India’s Big The Nepal government’s efforts to establish Daddy group, which also manages one of the a regulated and stable casino industry have floating casinos in the Mandovi River in Goa. faced numerous setbacks. It shut down all Just before the Covid crisis, India’s biggest casinos in 2014 after the properties failed to casino operator, Delta Corp opened the 15,000 comply with new regulations and licensing sq-ft Deltin Casino International in the five- fees. They reopened in 2015, mostly under star Marriott hotel in Kathmandu, which offers new management, but Nepal was then hit by a more than 220 gaming positions. While India’s major earthquake devastating its tourism sector. Pride Group of Casinos and Hotels has a casino Just as it was rebuilding from the disaster, in the capital’s Hyatt Regency. its economy faced further damage due to an Also close to the border in the Bhairahawa unofficial border blockade from India, on which district is the Tiger Palace, developed by it relies for the majority of its essential imports. Australia’s Silver Heritage Group. Now the industry is reopening once again Shrestha said the main interest from investors following the pandemic and Shrestha says is in the areas bordering India, which allow demand is still intact.

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Nepal says casinos still owe $9.2m in fee arrears The Nepal government has collected Rs810 million in royalties from casinos in Nepal, although arrears of more than Rs1.11 billion ($9.2 million) still need to be paid, according to local media reports. According to the Department of Tourism, some 17 casinos have paid up their royalties, the report said, without specifying a time frame. The government last week canceled the casino licenses at two hotels for failing to pay their royalty fees, according to local media reports. The Yak & Yeti Hotel failed to pay Rs420 million, while the Dreamland Hotel failed to pay Rs3.8 million. The Yak & Yeti’s casino license has been canceled and the five-star classification of the hotel has been revoked. “Now casinos have been in a rush to pay royalties. So far, Rs 810 million in royalties has been collected. Some other casinos have gone through documentation to clear dues,” Khem Raj Joshi, an officer at the Department of Tourism, was cited as saying.

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Rising fuel costs hitting tourism and airlines A spike in aviation fuel costs as a result of Russia’s invasion of Ukraine is hitting airlines and causing holiday cancellations, according to media reports. Nepal Oil Corporation (NOC) has raised prices for petrol and diesel at filling stations several times, but aviation turbine fuel (ATF) has seen the steepest hike. ATF cost in Kathmandu has risen from $715 per kilolitre in June last year to nearly $1,500 after the latest NOC price hike on 17 March, the reports said. The costs are some $600 higher than those being charged in airports in India. The price hikes are affecting the long-haul operators the hardest, with airlines flying in on a full tank and only topping up in Kathmandu. The price hikes, which are being passed on the passengers in the form of fuel surcharges, come just as tourism was picking up after Covid.

Asia Gaming Briefings | April 2022

SOUTH ASIA 38

INDIA

Online gambling, international streaming, support racing industry India’s 200-year old horse racing industry is attracting international interest as online gambling and access to an increasing number of international fixtures bolsters revenue.

ndia has six horse racing clubs, with the first race course being set up in 1777 in Madras. Racing is restricted to Indian-bred racehorses and the country has a well established breeding industry with stallions imported from all over the world. In recent years, the industry has faced a serious challenge due the imposition of a 28 percent goods and services tax on total wagers, which participants have said makes their pools unattractive and had led to a boom

Asia Gaming Briefings | April 2022

in illegal gambling. The Goods and Services Tax (GST) Council, the apex constitutional body, is studying the issue, which also affects other forms of gambling, and is expected to reach a decision this year. The Turf Authority of India has been lobbying for payment of the tax only on the commission, or service fee, retained by the race club. In the meantime, digital gambling and the ability to bet on overseas races has helped to shore up revenue.

In late 2020, The Royal Western India Turf Club, which operates racing out of Bombay and Pune, announced that it had teamed with Paytm First Games in what the club’s chairman, Zavaray Poonawalla, said could be a turning point for horse racing. Paytm Chief Operating Officer Sudhanshu Gupta said the ability to live stream races and bet through a mobile app would help horse racing enter into newer markets and enhance its popularity amongst younger audiences.

SOUTH ASIA 39

The company also has a similar accord with the Hyderabad Race Club. Gambling on games of chance is largely illegal in India, apart from in casinos in Goa and Sikkim, however gambling on elements that are believed to involve a game of skill is permitted. India’s Supreme Court has ruled that horse racing is a game in which winning relies “substantially and preponderantly on skill.” In June last year, Racecourse Media Group and Sports Information Services (SIS) said they had teamed up with Indian pari-mutuel and fixed-odds wagering company, NorthAlley, to begin offering daily betting on U.K. and Irish fixtures. The deal enables British and Irish racing content to be shown live for Pari-Mutuel betting into local pools via the Hyderabad Race Club’s digital platforms. RMG and SIS hold the broadcast rights to 34 British and 26 Irish racecourses, respectively. “We’re delighted to see our racing broadcast

in India thanks to this ground-breaking joint venture with SIS and NorthAlley,” Ian Houghton, director of international at RMG said at the time. “The service has now fully launched and initial turnover levels on British and Irish races have been encouraging. All being well, we very much hope to roll out the service to other regions in India in the future and introduce fixed-odds betting.” Suresh Paladugu, chief executive of NorthAlley, added: “We are excited to bring international races to Indian punters in the most convenient way for the first time in India.” The group also has a similar accord with the Royal Calcutta Turf Club, one of the oldest race clubs in the world, through online wagering platform Betindiaraces.com. In March this year, XB Net announced that it was also entering the Indian market with a distribution rights deal with NorthAlley. Under the deal, XB Net will deliver live pictures and local pool-wagering services from tracks in Australia and North America, equipping NorthAlley with a highly-flexible programming schedule, supported by a steady stream of rapid-cycling wagering opportunities. “It’s a thrill to widen our geographic influence, especially in India’s sports and horse racing territories, whose underserved audiences will soon prove a boon for racing, especially as wider regulation arrives in this sleeping giant of a region,” said Simon Fraser, senior vice president international at XB Net. “NorthAlley have already proven themselves most adept at securing some cornerstone partnerships at the elite Hyderabad and Madras Racing Clubs, while the Royal Western India Turf Club in Mumbai is next on our agenda. It’s an exciting time to be continuing to grow our global audience and products, with our core North American racing service now ably abetted by some cracking racing from Australia.” NorthAlley will be able draw from a product suite of data and streaming services available for over 700 Australian meetings a year, while new U.S. racing rights will soon allow access to more global highlights. Paladugu said XB Net’s services “have really turned our customers on to the merits of international racing, both during and after the pandemic, generating and retaining new revenue streams in the process. It’s a complementary product of rapidly increasing popularity with our key clients at Hyderabad and Madras Race Clubs, particularly before our domestic action winds up.”

REAL MONEY GAMES 2020

2021

(units in INR billion)

Rummy and Poker 31

+28 & +26%*

*Rummy & Poker respectively

Fantasy sports 26

+26%

Total 57

+26%

(Source: FICC/EY 2022 Media Report)

AIGF launches industry information portal The All India Gaming Federation (AIGF), an industry body and self-regulatory organization, has set up an online portal to provide regulatory and other advice on the country’s nascent market. The portal was developed in association with G2G News. news, an India-focused online service. The AIGF service will monitor and provide the latest updates and analysis on court cases, regulations and policy developments, both on a federal and state-by-state level. “AIGF is happy to partner with G2G to launch a new intelligence-based regulatory updates platform,” AIGF CEO Roland Landers said. “The online gaming industry has seen fast-paced developments in various states as well as courts and other forums, but information about the same is not available to all stakeholders in a timely and curated manner.

Karnataka High Court overturns gambling ban In another key victory for India’s skillbased gaming industry, the High Court in Karnataka has struck down an amended government law that sought to outlaw online gambling. “The writ petitions succeed. The provisions are ultra vires of the Constitution and struck down,” Justice Krishna S. Dixit was cited as saying by India gaming website, G2G. The Court said that the entire Act is not struck down but only the offending provisions. The Bench clarified that the judgment will not stand in the way of legislature bringing in a new law in consonance with the Constitution against gambling. The government tabled the The Karnataka Police (Amendment) Bill, 2021 in September last year, attempting to ban all forms of gambling, except lottery and horse racing.

Asia Gaming Briefings | April 2022

SUPPLIER SPECIAL REPORT 40

ICE is back! After a two-year break and a rocky start to the year, ICE London will be returning to the ExCel Centre in London from April 12 to April 14, and suppliers in these pages are ready to talk business.

he organizers, Clarion Gaming, say there will be more than 1,000 products on display from more than 450 suppliers from 55 countries. The conference sessions are scheduled to feature more than 160 speakers from all walks of the gaming world. New this year, will be the ICE365 Live studio, which will be broadcasting live from the exhibition floor in a bid to bring a new hybrid experience to the show. It will feature speakers such as OpenBet’s Jordan Levin, Ithuba CEO Charmaine Mabuza, as well exclusive data from H2 Gambling Capital, YouGov, and eGaming Monitor. The ICE Esports Arena will be returning, complete with a live Rocket League tournament with top tier teams, 00 Nation, Team Queso, SMPR Esports, and Dignitas, which will be slugging it out for the GBP25,000 prize pool. There will also be keynote speeches from some of the leading figures in the esports field, who will share insight on how best to tap into market opportunities. Clarion had originally intended to hold the event in its usual February slot, however, it was forced to postpone after the outbreak of the Omicron variant in the U.K. The new dates have been viewed as less than optimal by some of the largest suppliers, due mainly to the clash with the Easter holidays, with some big names choosing to opt-out of the event. These cancellations include Novomatic, Light & Wonder, Zitro, TCS John Huxley, Abbiati, Merkur

Asia Gaming Briefings | April 2022

Gaming, EGT, and Alphastreet. Novomatic said it was a decision that hadn’t been taken lightly, but a multitude of adverse aspects – including the pandemic, logistical challenges, and, last but not least, the unfavorable and unavoidable alternative date – have culminated in a situation in which participating in the show is no longer viable. More recently, companies such as Slotegrator and Softswiss, have also announced they are also not planning to attend in order to focus their financial resources on aiding Ukraine. Despite the setbacks, registrations for the show were tracking above 2020 levels, which was the last time a live event was held. Clarion says from March 1st to March 8th, registrations were up more than 26 percent from the equivalent period in 2022. “The core message is that despite the difficulties facing the industry and the unavoidable problems concerning our enforced temporary dates, ICE London 2022 will be the biggest gathering of the international industry since the last edition of ICE two years ago,” says Clarion Managing Director Stuart Hunter. “We are in close contact with our community of exhibitors and visitors and to a person they are looking forward to being able to reconnect with their customers and suppliers in a live environment.” In this edition’s Special Supplier Report, companies share some of their plans for the event and what we can expect to see from them in the coming months

SUPPLIER SPECIAL REPORT 41 7777 GAMING

Making international debut at ICE

2B provider 7777 gaming will make an international debut at the upcoming ICE London and will present original inhouse iGaming content, consisting of 50+ games, innovative jackpot solutions and an all-in-one platform. A key focus will be put on the wide range of online games, including instant win games, slot games, table games, themed games, iLottery, sport iLottery, scratch cards, and more. Elena Shaterova, Chief Commercial Officer at 7777 gaming commented: “There is no better place to premiere our company as a provider than ICE London – the largest global gaming hub uniting B2B gaming industry experts in Europe. Our B2B debut comes at the right time, after a long period of absence of live events. “We are fully prepared to offer the complete package of games needed from the online operators to engage and retain the audience, especially now with the influx of online gaming usage worldwide. Our games portfolio offers a next level of gaming entertainment that will surely answer the operators’ requirements and expectations.”, Shaterova added. Having been a technology provider of the leading B2C operators on several highly regulated markets for more than a decade,

7777 gaming’s expertise and diverse portfolio of games has established the company’s reputation for excellence, high-performance and innovation. Key performance indicators for the company’s games are higher average turnover per game by 13 times, higher average GGR per game, 5 times more new users and 2 times more RNG and depleting pool versions. The company is creating its games with the mindset of the new player, who enjoys lottery and scratch games, but do not have the experience in classic casino games and is ready to enter the online gaming entertainment with games that speak to his language. Some of the most preferred and played games are: Sea of Treasure, Golden Pyramids, Egyptian Treasure, Lucky Clovers, Jinn, Fortunes of Rome, and many more. The company has a license as a B2B gaming provider on the Romanian market and has recently renewed its 10-year license on the Bulgarian market as well. Plans of the company for Q2 are obtaining an MGA license. 7777 gaming’s products are GLI certified and cover all online games verticals by also offering a unique look and feel for the end-users. Meet the 7777 gaming team of gaming

experts at the world’s leading B2B gaming exhibition – ICE London, at stand N1-340.

BETCONSTRUCT

Expanding in Latvia and Lithuania after GLI certification

oft Construct (Malta) Limited has successfully passed the GLI certification process for the Live Casino games of CreedRoomz by

BetConstruct in Latvia and Lithuania. As a result of continuous work, BetConstruct, a gaming and sports betting provider, has got

the green light to promote the CreedRoomz live casino offering in the two Baltic countries, Latvia and Lithuania. The approval was received for 10 games - Dragon Tiger; Super Six Baccarat; Casino Hold’em; Russian Poker; Switch BlackJack; Hi-Lo; Swift Roulette; Baccarat; Bet-on Poker and Roulette. This new offer is unique and interesting for the company’s Baltic partners, as CreedRoomz is adapted to various aspects of the business, such as the scale of activities, the region, and the preferences of the players. It allows the clients to use BetConstruct’s live casino key products and services, stay ahead of the competition, and access different player profiles. By adding these new games to their operations, BetConstruct partners from Latvia and Lithuania intend to increase player satisfaction and engagement.

Asia Gaming Briefings | April 2022

SUPPLIER SPECIAL REPORT 42 BBIN

The Gaming Beat and The Future You’d Love

evolving around the annual theme, “The Gaming Beat,” BBIN is returning to ICE 2022 and looking forward to a reunion with the industry. In 2022, BBIN launched its first charitable

campaign “The Future You’d Love” via its TGB Charity to collect the public’s thoughts and ideas about the future. In the post-pandemic era, TGB Charity hopes to create a platform for everyone to show the future they would

like to have and live in. Its efforts have inspired many people to participate, including many of BBIN’s industrial partners, TGB Charity’s partners, and creative artists from all over the world, who have all shown a variety of stunning possibilities for the future. The collected ideas from the campaign will be taken as important references for TGB Charity’s future charitable projects and will provide a meaningful survey of diverse future perspectives. What people are concerned about will be the main focus of TGB Charity’s future events and projects. Furthermore, the collected ideas from this campaign have been well-documented in the highlight video of “The Future You’d Love,” released on TGB Charity’s official website and Youtube channel. From a long-term perspective, BBIN continues to organize new charitable programs, constantly measuring their effectiveness and embedding these values into the core of BBIN’s business. It is firmly believed that meaningful endeavors and care for significant issues will eventually navigate us through the transition period to arrive at a new-normal era, where a prosperous and sustainable future is perfectly balanced.

BMM TESTLABS

Helping clients face new regulatory challenges

MM Testlabs, the world’s original gaming test lab and product certification consultancy, is pleased to participate in the ICE London tradeshow taking place at ExCel in London between April 12-14, 2022. Jon Stuckey, SVP Business Development, commented, “We are looking forward to having conversations about sports betting compliance and online casino gaming approvals at ICE London this year. New regulations for legalizing sports betting and online casino gaming have been surfacing globally, and BMM is prepared to educate our partners on the proper compliance procedures and requirements, as we take them all around the world, especially to the U.S. and Canada now.” Francesco Bianchi, VP of Government Relations and Compliance, EURSAM, continued, “iGaming and online gaming platforms are very common throughout Europe, and there are many emerging companies in this sector that we look forward to meeting at ICE London. Building these relationships early on will ensure that we are all working

Asia Gaming Briefings | April 2022

toward a compliant future for the global gaming industry.” Stuckey and Bianchi will attend ICE London, joined by BMM’s European-based leadership team. ICE London hosts a global network of gaming professionals across the industry at all levels of seniority, and the

BMM team is prepared to provide face-toface connections and support to attendees. Attendees and exhibitors are encouraged to stop by the BMM Testlabs stand (N3-420) to network with our world-renowned product certification, quality assurance testing, and compliance services team.

SUPPLIER SPECIAL REPORT 43 CONTINENT 8

Multi-cloud provider for online gambling

ccording to independent analysis company Canalys, global cloud services spend exceeded $50 billion in Q4 2021, bringing the industry total for the year to $178 billion. With increased demand for cloud infrastructure services, Continent 8 (C8) has positioned itself as the multi-cloud provider for the global online gambling (real-money gaming) industry, and we have achieved some phenomenal growth in our Cloud capabilities. C8 operates a regulatory compliant Cloud environment in Atlantic City, Malta, Gibraltar, Isle of Man and Kahnawake – as

well as community or Public Clouds in Colombia, Dublin, and Taiwan. As C8 expands we can deploy network edge Clouds which can be grown to provide community or regulatory Cloud functions, as well as hybrid or network edge functionality to customer infrastructure, aligning with C8’s multi-cloud vision. A number of our team will be attending ICE London in April including Aidan ReesWilliams, Caroline Moran, Graeme Price and Graham Foster from our Sales team. With a connected network of over 80+ locations globally, Continent 8 is the trusted

infrastructure partner to the iGaming industry, offering market-leading Connect, Manage and Secure solutions.

COMTRADE

Comtrade strikes deal for gCore technology with newcomer Spinza

omtrade Gaming, a leading technology supplier to the gaming industry, announces that it will supply its gCore technology (Remote Game Server) to new game provider “Spinza”.

The deal will see Spinza, a new online slots provider, have its own version of Comtrade Gaming’s RGS hosted in the cloud. “We are delighted to announce the deal with Spinza. Our RGS adds real value for game vendors and puts them in control of their own destiny. New game studios can struggle with the underlying technology to host their games and can be reliant on other partners, our technology bridges that gap. Spinza are a great new games studio with big ambitions, and we look forward to supporting them on that journey,” says Steven Valentine, Comtrade Gaming’s Chief Commercial Officer.

Comtrade Gaming’s RGS is licensed in the UK, Gibraltar, Malta, NJ, PA, and many more jurisdictions. Tom Whistler, Spinza’s Director, comments: “We are thrilled to partner with Comtrade Gaming and their technology. As a new game studio, it was important for us to partner with someone who could provide us with RGS software but also the technical skills to help us build games while we build up our own team. Time to market is key when you are just starting out and the flexibility, they have shown to help in all areas, has been of huge benefit.”

DIGITAIN

New face for live casino

igitain said that Jason Marcelino has joined the company as commercial director for its new, luxury Live Casino, which will be launched at ICE. Built in-house by our own development team, the new Live Casino is an exciting addition to Digitain’s portfolio of products and will be formally launched at ICE in April. Jason has over 10 years of land-based experience having worked at some of the top Mayfair Casinos in London. He also has worked online for more than 5 years, for some of the premium live casino operators and suppliers. Of his new role, Jason said, “Live Casino is in my blood, and I am incredibly excited to join such a great company as Digitain

shortly before the launch of this great, new product. I am surrounded by passion and talent and Yerevan is a vibrant capital city where the founder has built the best iGaming office in the world. The potential for scale is enormous and I look forward to showcasing all aspects at ICE in April.” Matthew Charlesworth, Managing Director of Digitain’s Live Casino commented, “As our Live Casino moves ever closer to a trading-ready position, we sought to bring on board someone with Live Casino passion and expertise combined with solid iGaming commercial experience – and Jason ticks those boxes and many more. We are truly delighted to welcome Jason to the Digitain Live Casino family.”

Asia Gaming Briefings | April 2022

SUPPLIER SPECIAL REPORT 44 EVOLUTION

Going live with Loto-Quebec

volution says Loto-Québec has launched four of Evolution’s Dual Play live gaming tables – two Dual Play Roulette and two Dual Play Baccarat – hosted at Loto-Québec’s land-based Casino Montreal. Loto-Québec is the first Lottery Corporation and the first online game site provider to offer Evolution’s Dual Play solutions in Canada. This latest service extension builds on Evolution’s successful partnership with LotoQuébec, which began in 2018. In its initial move into Live Casino (called Casino en direct in French), Loto-Québec offered its online players six Evolution dedicated tables (including five hosted by French-speaking

game presenters), as well as other Evolution live tables. All of these tables are hosted at Evolution’s live casino studio in Vancouver. The Loto-Québec online casino subsequently expanded to include Evolution’s full suite of live tables, streamed live from Evolution’s European studios. Evolution Dual Play tables embody land-based and online casino convergence by allowing players at the actual Baccarat and

Roulette table in the land-based venue and online players to play alongside each other in the same live games at the same table. Jeff Millar, Commercial Director, North America at Evolution commented: “Live Casino is the natural bridge between land-based and online, and with Dual Play we have developed a product exclusive to land-based casinos that want to explore their online potential.”

EVERYMATRIX

Back and eager to catch up with friends

veryMatrix will be fielding a 30-strong team at ICE London this year and will be highlighting its services from SlotMatrix through to JackpotEngine. SlotMatrix is the world’s largest casino aggregator. It makes content available from 175+ game studios, including established suppliers and up-and-coming brands. The B2B pure gaming aggregator is present in 17+ markets with 100+ unique and proprietary games, and a wide range of promotional tools

Asia Gaming Briefings | April 2022

for acquisition and retention. All with ZERO platform fees! JackpotEngine helps motivate players by adding an extra layer of excitement to their regular betting and allows operators to create their own jackpots for any selection of games, across any vendors, and for any segment of players. JackpotEngine also allows operators to stay compliant while attracting and retaining players where traditional bonusing is not an option or limited.

The company’s managed services division helps clients from acquisition and retention marketing to responsible gaming and payments management. It provides support to your executive teams, ensuring smooth, transparent, and compliant operations. Just like our products, our Managed Services has been designed in a modular fashion: we can help you with everything or just one specific area. EveryMatrix will be in the North Suite Galleries, on the 1st floor, in NG-10 and NG-11.

SUPPLIER SPECIAL REPORT 45 G&D

G+D: Robust and reliable security

here are lots of changes in early 2022 in Asia’s casino markets, especially the gaming law reforms in Macau and the enhancement of gambling laws in Singapore. The gaming law reforms in Macau look positive for the casino industry in the future. There will be a maximum of six licenses, providing the way for the existing six concessionaires to renew their licenses at end of 2022 for 10 years. Under the amended gaming law, the government put a maximum cap on gaming tables and slot machines, based on usage. Junket operators can only work with one concessionaire, while satellite casinos need to be owned by the concessionaire according to a strata title basis. All the reforms eased concern and casinos can implement strategies for future business investment. Singapore introduced a new single regulator, the “Gambling Regulatory Authority” to manage all forms of gambling, and the new Authority can

address evolving gambling products and business models effectively. The GRA will be more effective in reacting to technological and global trends and will respond faster to emerging products. The reform and enhancement of gaming laws in both Macau and Singapore will promote the healthy development of the gaming industry. Although there is uncertainty under Covid-19, Singapore is open up for visitors and the revenue of casinos is growing gradually. As a casino business partner, G+D offers solutions ranging from small systems to automation solutions with cash management software for maximum efficiency and security. Our wide range of high-quality banknote processing systems will satisfy the requirements of all sizes of casinos. With continued casino growth and healthy casino development, G+D will continue to provide advanced technology, robust and reliable high system security and accounting accuracy products and solutions to cope with the growth of casinos.

ENDORPHINA

Ready to impress at ICE

ndorphina said it’s ready to impress with its nextgeneration AI experience at ICE London 2022. ICE London 2022, the largest global gathering of gaming operators throughout Europe, will be taking place from April 12-14th at ExCel London. We can expect igaming leaders to speak, share and discuss topics that will push the entire industry towards success. Endorphina, the online slots game provider, will also be making an appearance. Every year, Endorphina impresses and entertains with its stand at ICE.

The gaming provider has also announced that it has something special prepared this year for stand N6-320. Endorphina says it knows exactly how to surprise you, so be sure to stop by to find out and meet their entire team: Zdenek Llosa (Senior Sales Manager), Jan Urbanec (CEO), Phil Korinek (CMO), Rashad Karimov (Sales Manager), and Connor Donohoe (Sales Manager). They will all be greatly looking forward to meeting you in person! Book a meeting here - https://endorphina. com/ice-london-2022

GLI

Helping clients seize opportunities

t’s an exciting time for the gaming industry. Opportunities abound in online gaming, sports betting, iLottery, and more, and, as always, Gaming Laboratories International (GLI) stands ready to help suppliers, regulators, and operators seize them. GLI will be on stand #N3-210 at ICE London, where attendees will learn more about the company’s complete suite of integrated compliance solutions tailored to each client’s individual needs. Don’t wait for the future. Be ready for it with solutions that put you in control, save time, and make it easier to report and prove compliance. Additionally, Vice President of Latin American and Caribbean Karen Sierra-Hughes will be speaking on the World Regulatory Briefing panel “Shared Experience: New markets” at ICE VOX. This will take place on April 11 at 1:35 p.m. (GMT) at the Capital Suite in the ExCel Centre London. She will also moderate the ICE panel “Global Markets Masterclass – Argentina Roundtable: An opportunity to connect with those with interest in the LatAm market,” at 4 p.m. on April 12. Then on April 13 at 4:50 p.m., she will speak at “LatAm Masterclass Shared Experience: Does controlling the number of licenses issued fight industry threats or is it just threatening free trade?”. GLI looks forward to seeing old friends at this year’s event and meeting some new ones as well. Most importantly, the GLI team looks forward to helping its clients blaze new trails in 2022.

Asia Gaming Briefings | April 2022

SUPPLIER SPECIAL REPORT 46 IDX/ID NERD

HABANERO

Stepping up to the mark for digital signage

Riding the waves

ith Habanero seeing record numbers and entering several key markets in 2021, 2022 is lining up to be a crucial year for us where we look to utilize last year’s impressive momentum to help us reach new heights and milestones. That said, we plan to do this by sticking to what we have always done – by delivering flexible and engaging solutions to our clients, all with titles built on solid mathematics. We recently saw Chinese New Year pass by, and as part of that, we were delighted to offer our players Lantern Luck, a wonderful gaming experience to celebrate the year of the Tiger! The game has performed hugely well with our players, with immersive graphics, pitch-perfect sounds, and engaging mechanics allowing us to offer players something different from our usual product. In terms of what’s coming up for us, we’re all set for the release of groovy new title Disco Beats at the end of March. Providing players with good vibes, catchy disco beats, and a bonus wheel that awards incredible bonuses and wins, we are delighted with how the product has materialized and can not wait to see how it is received by our audiences. We’re also thrilled by the idea of seeing everyone back together at live industry events, starting with ICE in April, followed by the CasinoBeats Summit in May, which we will

T be sponsoring. We also expect ICE’s muchanticipated return to bolster our networking efforts for our Head of Business Development Arcangelo Lonoce, and bring in new business opportunities, but at the same time, it will just be wonderful to see some faces we haven’t seen for a while! If the events that we attended at the back end of last year were anything to go by, such as the SBC Summit in Barcelona, iGB Live, and SiGMA, then we couldn’t be more eager to attend, and cannot wait to explore more opportunities with new connections! We’re humbled to be seen as part of iGaming’s evolution, contributing to the waves of change that it is currently going through in terms of entertainment and engagement. For us, it’s all about riding the waves and delivering to customers and players exactly what they want when it comes to entertainment. After all, business is all about agility and the ability to evolve to client requirements.

IGT

Supplying Singapore Pools

nternational Game Technology’s IGT Global Services has signed a six-year contract with Singapore Pools to provide IGT’s central lottery system, Aurora, and its related technologies. IGT’s Aurora was built to drive lottery innovation and profitability and will offer reliability for Singapore Pools’ high volume of transactions. “Set up to provide a legal, safe and trusted avenue for people to place bets, Singapore Pools requires the sophistication, reliability and innovation that IGT’s Aurora central system provides to support the Lottery’s significant number of daily transactions,” said Jay Gendron, IGT Chief Operating Officer, Global Lottery.” IGT’s service-oriented Aurora incorporates a suite of flexible solutions designed to manage, transform and further grow the Lottery’s business. This best-in-class technology coupled with IGT’s longstanding lottery leadership will

Asia Gaming Briefings | April 2022

ensure Singapore Pools continues to channel its surpluses to good causes while offering a secure and responsible gaming environment for all.” Along with the new central system, IGT will deploy Aurora Navigator, Data Connector and Aurora Anywhere. Aurora Navigator offers a single place to view, manage and administer all lottery applications and back-office functions to help Singapore Pools manage its business. The Data Connector is the plug-and-play platform for fast, efficient data integration and analysis. IGT’s Aurora Anywhere is the secure gateway that allows for external applications to connect to the core lottery system which creates opportunities for expanded gameplay. Additionally, IGT will provide ongoing maintenance, marketing support and operator training.

hinking of enhancing your public profile or digital space using LED video walls? Looking to get your business noticed and talked about on hundreds of thousands of social media feeds? IDX and idNerd Studios HK can help. There are so many lost opportunities when it comes to static billboard displays or the same old boring content defacing our skyline and buildings. Given the incredible transformations in interactive and immersive technologies, it’s baffling why companies are consistently falling short of the mark for digital signage solutions. For this reason, IDX and sister company idNerd Studio have created a combined service that removes all the headaches for any business, brand, building contractor, architect, or whoever else might benefit from a seamless digital solution. What exactly do we mean by this? 1. Our 3D animation studio, idNerd, creates whatever original, innovative, industrydisrupting, or anamorphic content you can imagine. Or we can provide a discovery journey to find out what’s possible. 2. IDX works with many LED vendors ensuring you get the right product for your budget. Working with technology daily, we can ensure that you’re buying the latest tech at the right price point, helping you to future-proof your investment. 3. IDX designs and develops our own media systems, with proven experience in providing high quality and delivering wow content anywhere. IDX has access to a team of professional technicians, hardware specialists and other maintenance staff to take care of installations and deployment anywhere on the globe. There are so many exciting products available now, including flexible, transparent, even virtual studio sets for streaming events. Gone are the days when you just pick a square screen to deliver flat content. Even gaming floors and ETG stadiums can become so much more interactive and entertaining for guests.

SUPPLIER SPECIAL REPORT 47 JADE SPORTSBET

Promoting responsible gaming

ade SportsBet, the rising retail and remote sportsbook provider in the Philippines, has strengthened its compliance with PAGCOR’s Code of Conduct for Responsible Gaming with the launch of self-regulatory tools on the JadeSportsBet.com website. As remote gaming gains popularity in the Philippines, people become more comfortable putting their money into play on their mobile devices. Jade SportsBet has gone the extra mile to ensure that customers are always within their limits while they enjoy the products and services that the platform offers. JadeSportsBet.com has presented three responsible gaming tools to uphold the highest standards when it comes to providing a safe and fair gaming environment. The self-regulation tool allows players to set the amount of money they can deposit to their accounts, either per day, per week, or per month. Reality check helps customers manage the amount of playing time

they can spend on the website while the selfexclusion tool allows players to lock themselves out of the platform if a player feels the risk of developing a gaming problem. Whether it be for the money, or for the excitement of winning, or the thrill, as most

patrons become more connected, more social, and more mobile, we can expect continued growth in the number of players. And with that Jade SportsBet has committed to look after the safety of its customers, the responsible and entertaining way!

LT GAME

High-denomination slots debut in Macau

ur large portfolio of slot games and state-ofthe-art cabinets provide a unique selection of games that can be tailored to any property’s unique player demographic. LT’s new Jackpot Series, which contains a group of high denomination games, has just been approved for the Macau market. Jackpot Series games are straightforward and perfectly suited for high-denomination areas. The first two games approved in Macau Jackpot Tornado and Jackpot Bonus are having fantastic results in the North American market, with other games in the series due out soon. Jackpot Bonus features classic game styling that embodies the nostalgia of a classical stepper game. It has frequent free game features with exciting payback! Jackpot Tornado features the crescendo win feature. Bonus pays can only be the same or higher. Look for the Jackpot Alley Bonus in the game with retrigger. Non-progressives, stand-alone progressives, and linked progressives are available with all Jackpot Series Games. Bowl of Gold is a Chinese culture-themed Progressive link. It has five levels of progressive and pick progressive features. The game is specifically designed for Asian players and is engaging with unique features which bring the players more

excitement than ever. Bowl of Gold consists of three titles; Door to Riches, Gold Dragon, and Golden Piggies Fortune. They all have unique features, but if there is one thing all three titles have in common it is the five levels of progressive jackpots, as well as five jackpot bonus payouts. Bowl of Gold Link’s maximum bet is 68 credits and all progressives can be won. With the same slot cabinet, LT has introduced a series of Table Game Slot titles. Paradise Roulette; Lucky 6 Baccarat; Golden Frog Baccarat and much more to come. All games are powered with a real dealer and wheel animations! No more CG graphics. The players will experience the same excitement as if they were playing the traditional table games while enjoying their privacy and social distancing. The real dealer appears on the top display to provide players with the illusion of interacting with a real dealer and the players can change the dealer anytime they want for fun or even superstitious reasons. The FAFA SLOT RGX 1000 is a new gaming cabinet with real moving objects. It introduces a fascinating storyline with exquisite animations, and a unique BINGO Jackpot, allowing players to control the gaming speed, but also to enjoy the excitement of both slot games and interactive games.

The game, with titles including Fortune monkey; God of the Sea; Rank up Dragon; Fortune Master, and Savannah King, features diversified culture and story backgrounds. Splendid visual effects of LED objects falling down will surprise and excite game players. Shutter doors interlocking with enhanced visual effects will introduce players to a new and exciting world. Another brand-new LT Slot Game - the Tekken series has hit the market. Being a famous Japanese media franchise, Tekken is centered on a series of fighting video and arcade games, which have been very popular with players over decades. The games include “Heihachi, Askua and Panda.

Asia Gaming Briefings | April 2022

SUPPLIER SPECIAL REPORT 48 LIGHT AND WONDER

Rebranding to tap into gaming of the future

cientific Games Corp has undergone a major rebranding, changing its name to Light & Wonder to reflect a new company direction that will focus on cross-platform game development across land-based casinos, online and mobile, in both the real-money and free-to-play social gaming markets. “It’s the way players play these days… They like to play on phones and play on screens. [While] their parents [like to play on] proper gaming machines,” said Jamie Odell, chairman of Light & Wonder. “We’re already seeing increasing examples of where games are being launched, at the same time, across platforms, allowing all that extra dollar to come through and to get extra excitement of playing the same games on different platforms. “So for us, it’s inevitable that that’s the way that play is going to go and we’re going to facilitate it with great IP, great processes, great technology, and content, which we deliberately

developed to make sure it can work easily across those platforms.” Light & Wonder said the rebrand comes as part of a year-long strategic plan to transform the company into a digital-focused business, a plan which included the divestment of its sports betting and lotteries business in order to focus on digital, which it forecasts would be at the same scale of its land-based business in three years. “We are thrilled to introduce the world to Light & Wonder, a company that will build great games and franchises that offer players a seamless experience across platforms,” said Light & Wonder Chief Executive Officer Barry Cottle in a company statement. As part of this transformation, the Company’s new website featuring iGaming and land-based casino products, technology, and services will now be lnw.com. This new portal to the Company offers an exciting look at player-favorite games, as well as platforms, systems, player account management, and hardware.

Light & Wonder will operate under an assumed name until a legal name change is complete in Spring 2022. At that time, the Company intends to start trading under a new stock ticker it has reserved, LNW.

PRAGMATIC PLAY

Creating innovative entertainment experiences

ragmatic Play is an industry-leading content provider that offers a multi-vertical portfolio of high-quality slots, live casino, bingo, and virtual sports titles. With an unmatched passion to create innovative entertainment experiences that are mobile-friendly and highly immersive. Pragmatic Play develops engaging titles across 31 different languages, operating in all major certified markets and currencies. Pragmatic Play creates five new slot titles

Asia Gaming Briefings | April 2022

each month, which can build upon fan-favorite IPs as seen in the much-loved Big Bass Bonanza and John Hunter series of releases, while also introducing new mechanics demonstrated best in the multi-award-winning Gates of Olympus. Recent hits have joined its extensive portfolio, from a reimagining of the traditional pen and paper game in Tic Tac Take to the innovative Wild Beach Party and the popular Magician’s Secrets. The provider’s Live Casino vertical gives

operators a host of traditional casino titles from Roulette to Blackjack, while also offering operators its game show-inspired hit releases like Sweet Bonanza, Candyland, and Mega Wheel. Unique Bingo titles are also available from Pragmatic Play, which can be customized to drive operator branding. The exclusive Bingo Blast and Reels Room evolve the classic bingo experience to appeal to a broader audience that is also supported by its Virtual Sports content. This gives players a 3D rendering of an RNG-certified sporting event that allows for player engagement between real-life action and high-frequency simulations with a similar betting market. Completing its content provision, which covers all bases, is Pragmatic Play’s newest vertical entry with its Sportsbook, becoming the fifth major content pillar offered. It gives operators access to custom markets and odds across thousands of sporting competitions along with access to official data, maximizing margins. Situated at stands N4-210, N4-230, and N4250 at the upcoming ICE London trade show, Pragmatic Play will be showcasing its upcoming and existing titles from its varied high-quality library and looks forward to meeting new and established affiliates, operators and suppliers.

SUPPLIER SPECIAL REPORT 49 PINNACLE

Malta license underpins growth plans

innacle Solution, the B2B arm of pioneer sportsbook Pinnacle, has been licensed by the Malta Gaming Authority (MGA) to provide its services to sportsbook partners within its jurisdiction. The highly-regarded MGA license, along with a new esports product that will be showcased for the first time at ICE 2022, will underpin the supplier’s ambitious growth plans for 2H22 and beyond, with the company looking to unlock partnerships in a number of new territories, with particular focus across Europe and Latin America. Recognition by the MGA is the latest milestone for the risk management experts, having grown exponentially in recent years by adapting Pinnacle’s B2C sports betting and trading heritage into an award-winning, revenue-driving B2B product that now services more than 50 operators globally. The granting of the license follows a thorough process that placed Pinnacle Solution’s technology and working processes under intense scrutiny, with the end results showing that the sportsbook supplier was operating transparently,

within EU rules, and with no technical changes required for approval. Pinnacle Solution will now look to use its flexible product suite, which will include its recently-expanded esports offering, to target new partners looking for an accredited supplier capable of extracting the full potential out of their sports betting brands. Paris Smith, CEO of Pinnacle, commented: “We’ve made great efforts to ensure our trading practices and technology stack can be scaled quickly, openly, and transparently in order to give our sportsbook partners a first-class service

that delivers the enhanced hold and revenue performance they’re after. “Obtaining the MGA license is proof that our expert teams have developed products that meet the market’s demands and high standards, and we’re now looking forward to servicing new partners in more markets with the ultimate sports betting, esports, and risk management solutions.” Pinnacle Solution will be exhibiting at ICE 2022, from April 12–14, showcasing its iFrame Solution, Risk Management API, and awardwinning esports product to all interested parties looking to boost their sportsbook’s performance.

released players will already have a gauge of who the characters are, giving a buzz of familiarity. If you were to step back and look at all of our titles chronologically, you will physically see our carefully curated timeline of thumbnails that

play their part in the bigger Play’n GO picture. This is just part of the reason Play’n GO games are elite in their standing in the industry and why players choose our games time and time again.

PLAY’N GO

Standing the test of time

hen we think of our favorite film, book, or music, there’s the current box office hit, bestseller, and top of the charts. But there are also those that hit that nostalgic part of our brains that we can’t help but return to time and time again as they give us a buzz of familiarity. This is our philosophy when it comes to our games. Despite time gone by and what seems to be an endless stream of new content to tickle your fancy, at Play’n GO we endeavor to create titles that give the same buzz as the latest and greatest no matter how many times they’re played. We design games that stand the test of time and take entertainment to the next level. Rise of Olympus, for example, was released way back in 2018 and as we careen towards the middle of 2022 it still holds one of the top spots as a favorite among players. Placed within our Greek Mythology ‘world,’ Rise of Olympus tells the story of Zeus, Poseidon, and Hades as they deal with the aftermath of overthrowing their father, the titan Cronus. On the horizon, a new Greek Mythology slot is set for release at the beginning of May, Rise of Gods: Reckoning, which sees Zeus, Poseidon, and Hades in a new reality and with a whole new challenge ahead. Before the game is even

Asia Gaming Briefings | April 2022

SUPPLIER SPECIAL REPORT 50 SPORTRADAR

Match-fixing on the rise as sports betting hits record

atch-fixing betting profit amounted to about EUR165 million ($182 million) in 2021 as sports betting turnover reached record highs, according to a report from Sportradar. The report, Betting Corruption and Matchfixing in 2021, found there was suspicious activity in 903 matches last year, the highest level in Sportradar Integrity Services’ 17-year history. The report looked at activity across 10 sports in 76 countries worldwide. The number of reports was up 2.4 percent from the previous high in 2019. The greatest number of suspicious reports were generated in Europe with 525, followed by Asia with 161. The rise in illegal activity came as global sports betting turnover reached more than EUR1.45 trillion, according to Sportradar estimates. The company said calculates that organized crime syndicates and illegal betting outlets made profit to the tune of $165 million, but added the figure may be even higher as it

doesn’t include other potential financial schemes, such as money laundering. “There is no easy short-term solution to the match-fixing issue, and we’re likely to see similar numbers of suspicious matches in 2022, if not more,” said Andreas Krannich, managing director, Sportradar Integrity Services. “As the market has developed, so the threat of matchfixing has evolved. Now, would-be corruptors take an increasingly direct approach to matchfixing and betting corruption, with athletes messaged directly via social media platforms. “We can take what we observed in 2021 and ask ourselves as fans of sport, what lessons can we learn? At Sportradar, we believe in adopting a progressive approach to integrity protection, through bet monitoring and intelligence gathering. This has been proven to deliver sanctions against those involved in match-fixing. Preventative measures, such as educating athletes and stakeholders, are also crucially important in the long-term fight

against match-fixing.” The report found that soccer had the highest frequency of suspicious matches at a rate of one in every 201 fixtures, followed by esports at one in every 384 and basketball at one in 498. Lower level competitions in soccer are significantly affected with 50 percent of cases in domestic leagues coming from third-tier or lower divisions, such as regional and youth soccer. The months of September and October saw the highest number of suspicious matches detected with 105 and 104, respectively. This corresponds with the start of the traditional soccer season. Assessing the year ahead, the report forecasts a further increase in the number of suspicious matches set to be detected in 2022.

Pok Deng is a card game where the banker plays against five players. Each player compares the hand values of the two cards to the banker separately; the one closer to 9 points wins. Bets can be placed on any player but not on the banker. Special betting

options on individual player pairs are also available, with odds of 11 to 1. Some combos are considered special patterns in this game, like pairs, cards of the same suit, and some other special combinations. Winning with, or losing to pairs, cards of the same suit, and special combinations, doubles the odds – meaning players could win more than their bet amount! There are five special combinations, taking a hand’s value from 7.1 to 7.5 points. Having two cards of the same suit with a hand value of 0 points is counted as 7.1 points. Any face card (K, Q, or J) and a 10 make a combination of 7.2 points. For 7.3 points, it would be having two face cards. There are special pairs (A, 5, 6, 10) worth 7.4 points. Having an A and a K of the same suit makes an AK Flush, which is counted as 7.5 points. These special combinations are counted as between 7 points and 8 points, meaning that they are of the highest values, other than naturals. As a regional favorite, SA Gaming hopes to help its operators attract new players in the region where the game is played, and introduce it to places where the game is less known.

SA GAMING

Introducing Pok Deng

riginating in Southeast Asia, Pok Deng is a popular table game, which is spreading to other parts of Asia. SA Gaming, as the leading platform in the region, is adding this game into the lobby, hoping to introduce it to players around the world.

Asia Gaming Briefings | April 2022

SUPPLIER SPECIAL REPORT 51 WALKER DIGITAL

Driving win through novel analytics and predictive modeling

DTS, the technology leader for table games automation, game protection, chip security, and loss prevention, now adds novel analytics and predictive modeling so casinos can win more and keep more using Perfect Pay Baccarat’s bet-by-bet player tracking feature. Historically, understanding player value, risk, and profitability in table games has relied on intermittent, error-prone and highly subjective manual ratings occasionally weighted by assessments of player speed and skill. Despite the drawbacks and labor expense needed to collect manual player ratings, it has been the

only way to attempt to target and develop the most profitable player segments while avoiding loss and protecting scarce marketing dollars. Today, automated RFID-enabled bet-bybet payer tracking has made manual player tracking obsolete and eliminated every barrier to collecting precise, real-time data that exactly captures actual and theoretical win per player and powers AI-driven predictive models, which gain greater accuracy over time and with more data. Stephen Moore, CEO of WDTS, explains that “RFID takes analog data like player

behavior and converts it to digital. Once digital, the granularity of data allows us to deploy exciting new business intelligence products and solutions integrated into casino floor operations as part of the Perfect Pay suite of applications.” Perfect Pay’s real-time analysis solutions can determine player segments that drive win versus player segments that drive loss; quantify the impact of free hands-on player profitability across player segments; assess the impact of money-management behaviors on player win rates, and identify player betting patterns that shape player decisions influencing hand count and average bet. Additionally, a specialized side-bet vulnerability model maintains the optimal ‘true-count’ system for every side and propositional bet to identify high-risk players and shoes. Contact Emily Io, Senior Vice President of Sales, at eio@wdtablesystems.com for an overview of player segmentation and predictive modeling solutions available with Perfect Pay.

ZITRO

Legendary performance for new progressive

itro has introduced a new and exciting gaming experience with its latest release in the progressive group: Wheel of Legends – a 4 level – Multi-game Progressive Link with four exclusive games and unique themed features. Wheel of Legends, featured on the superb Altius Glare cabinet, has grown to become one of slot players’ favorite multi games, thanks to its stunning graphics, its advanced LED lighting technology, and its premium sound effects. What’s more, all four games in Wheel of Legends include 4 levels of jackpot, with 243 ways to win, and exclusive features such as Free Games, Multipliers, and Extended Wild Multipliers. During the game, when any of the legend-themed characters are charged with energy, the bonus jackpot is activated. A new layout with 2x5 reels is shown and direct prizes, additional free games, or the mini or minor, can be awarded. With only 10 symbols, a giant wheel appearing at top of the screen will be activated and will randomly land on the MEGA or the SUPER jackpots. Thanks to its cutting-edge performance and its impressive 4K images, Zitro’s premium multi-game – Wheel of Legends – offers a truly immersive player experience.

Asia Gaming Briefings | April 2022

CALENDAR OF EVENTS 52

APRIL

JUNE

AUGUST

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

IAGA INTERNATIONAL GAMING SUMMIT 27-29 June 2022 Fairmont Copley Plaza, Boston https://www.theiaga.org/2022-gaming-summit

AUSTRALASIAN GAMING EXPO 9-11 August 2022 ICC Sydney, Australia https://austgamingexpo.com/

INTERNATIONAL GAMING AWARDS 11 April 2022 Savoy Hotel, London https://gaming-awards.com/international-gaming-awards/ iga-tickets/

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

G2E ASIA 30 August - 1 September 2022 Venetian, Macau https://www.g2easia.com/

IGB AFFILIATE LONDON 13-14 April 2022 Excel London, UK https://london.igbaffiliate.com/

MAY

JULY IGB LIVE 5-8 July 2022 Amsterdam RAI https://www.igblive.com/

IGAMING NEXT NEW YORK 12-13 May 2022 Convene, Manhattan https://igamingnext.com/nyc22/

ASEAN GAMING SUMMIT 25-27 July 2022 Shangri-La Hotel, Manila https://aseangaming.com/

CASINO BEATS SUMMIT 24-26 May 2022 Intercontinental, Malta https://sbcevents.com/casinobeats-summit/

SPICE SRI LANKA 27 July 2022 Colombo, Sri Lanka https://www.sportsbettingevents.com/spice-sri-lanka

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Asia Gaming Briefings | April 2022

LAST WORD 54

Sharon Singleton

Managing Editor, AGB

Asia tourism authorities to struggle to fill China hole After two long years and numerous stops and starts it appears that Southeast Asia’s reopening to tourism is becoming a reality as more countries drop their inbound quarantine requirements.

So far Beijing has shown no signs of making any rom April 1st, Singapore dropped all restrictions on fully vaccinated travelers, requiring only a changes to its zero-Covid policy, with borders expected negative test before departure. There are no more to remain closed throughout the rest of this year. That entry quotas, or vaccinated travel lanes, while the leaves a very large hole in the global tourism market. Just a few years ago, the China Outbound Tourism Research busy land border with Malaysia has also reopened. Thailand and Bali have been welcoming tourists Institute (COTRI) was forecasting that the number of for some time. But from April 1st, Thailand will scrap Chinese traveling overseas would have passed the 200 pre-departure Covid tests, only requiring one on arrival million mark this year. Many of the large integrated resorts across the region instead as it seeks to kick-start a sector that accounts for were clearly geared to cater for this travel segment, a fifth of the economy. The Philippines has announced quarantine-free entry hiring Chinese-speaking staff and providing Chinese for foreign tourists, while Vietnam announced it was restaurants. They of course were also the ones who were reopening for business from mid-March. Cambodia was filling the casinos. The tourism industry has been scrabbling to try to pivot an early mover, welcoming travelers back from late last year and South Korea will allow quarantine-free travel its marketing strategies, but it’s hard to see any segment that could come anywhere close to also from April 1st. plugging such a large gap. Wealthy Early indications are that there Thais, Malaysians, Indonesians, is pent-up demand. In Singapore for and South Koreans are likely to find example, Expedia said it had seen a Mainland themselves in hot demand. doubling of flight searches after the China is It’s worth asking whether lifting of restrictions was announced. another year or so of lackluster All of this will be welcome news struggling with its gaming revenue may increase for Asia’s integrated resort markets, worst outbreak pressure on governments to lift their which are almost wholly reliant on locals ban, but it seems unlikely at foreign visitors, with locals banned since the early present. Tourism authorities on from entering casinos. days in Wuhan. South Korea’s Jeju Island have been However, it’s not expected to be reviewing measures that might help plain sailing. Airline schedules have its casino industry, which is on its been severely disrupted for two years knees with only three out of eight now and that takes time to reboot. As Gary Bowerman, director of Check-in Asia, recently reopening, but it has ruled out a proposal that would have told AGB, this means inter-regional travel in the ASEAN allowed South Koreans from the peninsula to gamble. As the rest of Asia looks forward to a brighter, if not markets is not as easy as it was prior to the pandemic. Governments are keen to recapture those tourism yet a stellar year, Macau is again looking at much of the dollars, but there could be more in terms of regional same. Its zero-Covid policy means it will remain virtually cooperation to get people moving again. The focus since closed off to the outside world. Quarantine-free travel is only allowed from the the pandemic has been on promoting domestic tourism as much as possible to try to fill the void and a shift in Mainland, as long as there are no localized restrictions. Residents who return to the city after traveling still need mindset might be necessary to turn outwards again. Tourism experts aren’t really expecting a large-scale to undergo a 14-day stay in a government-mandated recovery until the second half of the year, barring major hotel. That was recently cut from 21 days, though is setbacks, but note that there is a sense of optimism and a still too restrictive to permit all but essential travel. And travelers from outside the Greater China area are banned clear starting point from which to build. What will of course be missing is the Chinese. China from entry at all. Macau’s gross gambling revenue will be lucky if it is struggling with its worst outbreak since the early days in Wuhan. It has locked down cities affecting millions reaches half of its pre-pandemic levels this year, while of people and has embarked on large-scale mass testing, S&P Global Ratings is gloomier suggesting it will only reach 30-40 percent of 2019. including the whole of Shanghai.

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Asia Gaming Briefings | April 2022

VIRTUAL CRICKET IN-PLAY Hit a six for your customers

To its billions of fans in South Asia and beyond, cricket is life. And we’ve modelled our latest virtual sport on its most popular league. T20: all the joy of cricket, none of the waiting around. But there’s one problem: the off-season. Which is where Virtual Cricket In-Play comes in. It’s 24/7, all year round, with no season breaks. So fans get to watch and bet on their favourite sport, non-stop. It includes India’s top 8 teams, playing in a T20 league that’s powered by our world-beating sports data. That data makes the matches so real, you’ll forget they’re simulations. There’s nothing else like it on the market.

Asia Gaming Briefings | April 2022

AGBriefings April 2022 Edition

Articles inside

SUPPLIER SPECIAL REPORT

LAST WORD

INDIA

NEPAL

KOREA

AUSTRALIA

FOCUS

CAMBODIA

VIETNAM

UPDATE ON PIGOS

MACAU

CHANGING THE RULES OF THE GAME