JURISDICTION UPDATES February 2015 Edition
2015, year of mass • AGB Advisors’ gaming industry predictions - pg.28 • Infrastructure key to drive Macau growth - pg. 6
SINGAPORE At a standstill pg.12
PHILIPPINES
Growth to outpace rivals pg.16
KOREA
The next best thing pg.24
ICE TOTALLY GAMING ‘15 SPECIAL REPORT p.36
2
Asia Gaming Briefings | February 2015
MESSAGE 3
Get your skates on
2014
was quite a year for
You’ll also find our regular jurisdiction reports, keeping
Asian gaming. Macau
you updated on the status of each market, their plans,
soared Icarus-like to
and the fortunes of the companies operating in them.
ever greater highs in
By all indications, it’s going to be another breakneck
the first half, then dropped like a stone in the second.
year. Macau will see new openings, the new supply
The Philippines continued its march towards being
hopefully re-stimulating demand, but it remains to
a respected alternative gaming destination with
be seen whether infrastructure will catch up and if the
extensions and new openings in Entertainment City.
promise of Hengqin will deliver. The rest of the region
Japan got everyone excited then failed to deliver.
will also see a rash of new openings, plus several
Australia, Vietnam, CNMI and Russia attracted huge
jurisdictions are debating the regulation of online
amounts of potential investment. And more of the
gaming. Meanwhile, we won’t hold our breath for
same looks set to continue in 2015.
Japan to legalize casinos, and perhaps Taiwan will beat
The year has got off to a great start and we are excited
it to the post.
to participate in the first event of the gaming calendar
One thing is for sure, it won’t be a dull year. AGB has
- ICE TOTALLY GAMING - which marks its 20th
some exciting projects ahead, not least of which the
anniversary of becoming a stand-alone exhibition
All Asia Dealers Championship which will be held
this year. With over 500 exhibitors, more than 23,000
alongside G2E Asia in May 2015. The event will bring
visitors and eight conferences running concurrently,
the regional gaming industry together to celebrate and
the event is the biggest and one of the most influential
showcase the talents of their dealers, who will compete
in the world. The 2015 edition will see several new and
in three games: Baccarat, Black Jack and Roulette.
innovative elements being included such as the Sports
The event will take place on the show floor, with the
Betting Tours and the 2nd Game to Watch competition.
winners selected and announced on the final Thursday.
We have a preview of select suppliers in this edition,
Ask us at enquiries@agbrief.com how you can get
as well as a special feature on predictions for the year
involved, or if you’d like to know how AGB can help you
ahead by some of our most esteemed advisors and
stay ahead of the game in Asia.
friends - David Green, Ben Lee, Steve Karoul, and
Here’s to a great year! l
Rosalind Wade
Luis Pereira
John English. It’s interesting to see how people’s perspectives differ, but also how consensus views
On behalf of Asia Gaming Brief
have formed. Make sure you check out the feature in
Rosalind Wade & Luis Pereira
these pages.
PUBLISHERS
www.asiagamingbrief.com FEBRUARY 2015 EDITION SERIES II • ISSUE VI
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AGBRIEF PARTNER EVENTS
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Asia Gaming Briefings | February 2015
CONTENTS 4
NORTH ASIA
GREATER CHINA
MACAU MAINLAND CHINA
06 10
SOUTH EAST ASIA
REGIONAL SPECIAL FOCUS
JAPAN
20
2015 PREDICTIONS
30
RUSSIA
22
HORSE RACING STRUGGLES
32
SOUTH KOREA
24
SOUTH ASIA
SINGAPORE
12
MALAYSIA
14
SRI LANKA
25
PHILIPPINES
16
NEPAL
26
INDIA
27
INDOCHINA
AUSTRALASIA
AUSTRALIA
34
PACIFIC ISLES
35
SUPPLIER SPECIAL REPORT
36
CAMBODIA
18
CALENDAR OF EVENTS
52
VIETNAM
19
OPINION
54
Asia Gaming Briefings | February 2015
GREATER CHINA 6
MACAU
Infrastructure key to Macau growth Macau’s infrastructure has failed to keep pace with the territory’s rapid rise to become the world’s largest gambling hub, placing pressure on creaking transport systems and creating bottlenecks, industry experts say
Asia Gaming Briefings | February 2015
F
rom taxis, to highways and light rail,
Kong-based gaming analyst, Aaron Fischer,
Macau’s authorities face challenges on
with finance house, CLSA.
a broad front to put systems in place to
Hotel occupancy has been averaging almost 95
support further growth, especially in light
percent and Fischer says a 70 percent increase
of planned added capacity by gambling operators.
in hotel rooms between 2015 and 2017 as
Macau’s average population density is one of the
new properties open will be “one of the key
highest globally at 19,409 per square kilometre.
infrastructure improvements.”
The total population is around 607,000 people
“The additional supply of rooms will give more
living on a land area of 31.5 square kilometres,
choice to those who visit us and, secondly, ease
leaving a density some 2.6 times greater than
the pressure on the peak periods, especially
Singapore and three times that of Hong Kong.
in Chinese New Year and other peak periods,
Visitor numbers were close to 30 million in
when we’re really struggling to get rooms in
2014, with 80 percent from mainland China.
Macau,” De Senna Fernandes said.
Growth in arrivals in 2014 was around 8.0
However, improvement to transport infrastructure
percent year-on-year. But the outlook is for
is needed if Macau is to support additional
more growth in the coming years. A Pacific
visitor numbers.
Asia Travel Association (PATA) report released
A key area of criticism has been over standards
last year forecast Macau’s tourism revenue to
of service from the local taxi industry. Taxis are
reach $269.9 billion by 2018 – from just $43.7
said to avoid regular passengers and instead
billion in 2012.
focus on ferrying tourists between hotels and
The rapid development and rise of the gaming
casinos. Macau has just over 1,000 taxis in
industry in Macau has brought both benefits
service for the local population plus the 30
and challenges, says Maria Helena de Senna
million visitors.
Fernandes, director of the Macau Government
A key development to ease these concerns will
Tourist Office.
be the 21-kilometre Light Rail System, however,
“It always brings questions in terms of
the project is long delayed and over budget.
how sustainable it can be and to make that
First proposed in 2003, work began in 2008,
sustainable, I think a lot of work has to be done
and it is scheduled to begin services in 2015,
some both internally and also externally,” de
scaling up to full operations in five years.
Senna Fernandes said in an interview with AGB.
The system’s initial capacity will increase
Internally, hotel room shortages have been a
from 8,000 passengers per hour (pph), rising
major challenge for the industry, says Hong
to 14,200 pph by 2020. The project has also
GREATER CHINA 7
GROSS GAMING REVENUE Y14 $44b -2.6% Y15E -5% -4% -7%
UBS Wells Fargo Morgan Stanley
-4%
Citi Research
MARKET SHARE AS OF JAN. ‘15 (Source: Sterne Agee)
been dogged by rising costs and conflicts over
Kong government recently said it doubts this
tendering processes.
deadline will be met.
SJM HOLDINGS (880:HK) 22.9%,
The Macau Commission of Audit estimates at
The structure is the first major combined bridge
GALAXY ENTERTAINMENT GROUP (27.HK) 22.9%
least 900 days of delays to the project with the
and tunnel crossing project in China. Among
construction budget likely to total 14.2 billion
the benefits is a reduction in travel time from
patacas, about three times the initial estimates.
Hong Kong to Macau or Zhuhai from over
However, travel industry observers say once
three hours to just half an hour and is seen as
open the location of the line’s 21 stations will
a game-changer for transport in the region.
be a windfall for Wynn Resorts’ $4.0 billion
CLSA’s Fischer said the bridge will allow for
development and Melco’s Studio City project
easy access from Hong Kong’s International
on the Cotai Strip.
Airport to Macau. “Once people land in Hong
The first phase of the development runs along
Kong, they’ll have a choice either to travel to
the eastern coastal corridor and connects on
Hong Kong or to Macau which will also be 30
are we going to actually cope with the new
the north-east boundary with Taipa. Phase two
minutes away. So Macau would be a very viable
number of visitors?” she said. The investment
includes the Western Harbour area with main
option for people landing in Hong Kong,” he said.
in land reclamations, including new roads and
service points at the Macau Peninsular, Taipa
But local taxis from Hong Kong and Macau will
the Light Rail system are an important step to
and Cotai, and stations at the Border Gate, Outer
be unable to transport people over the bridge
solve that problem, she said.
Harbour, Ferry Terminal, Lotus Bridge Border
route and a shuttle bus service is now being
“A lot of transportation infrastructure is under
and Macau International Airport.
considered, according to reports.
way, but obviously it doesn’t come at the same
There have also been long-standing plans have
The bridge’s real potential, analysts say, lies in
time. But still, essentially slowly but surely,
been to expand the Macau’s International Airport.
its role as part of the wider economic integration
the transportation network will improve a lot
The initial aim had been to boost passenger
around the Delta region and Macau. A 2014 report
from what we have right now.”
capacity to 7.5 million a year. At present passenger
by the Hong Kong Trade Development Council,
Another factor expected to help ease bottlenecks
volume, rising about 10 percent a month, was
said while the Pearl River Delta region accounts
is extended border opening hours with the
forecast to reach 5.1 million for 2014.
for just 4.2 percent of China’s population, or
mainland. The relaxation, including all day
But as one analyst told AGB on background, plans
around 60 million people, it accounts for over
access, came into effect just ahead of President
for the airport expansion may be redundant once
9.0 percent China’s gross domestic product.
Xi Jinping’s visit to Macau to mark the 15th
the Hong Kong-Zhuhai-Macau bridge opens.
But another challenge for Macau has been land
anniversary of the handover to China.
The project is to build an up to 50 kilometre,
area. This has led to moves by the government to
The changes are set to result in a sharp rise in
$133 billion bridge across the Pearl River Delta
reclaiming some 350 hectares of land from the sea.
numbers at the Lotus Border and at least a 15
region. It was launched in 2011 and was set
“It’s just a small place after all,” says Macau
percent increase at the Border Gate currently
for completion in 2016. However, the Hong
Tourist Office’s de Senna Fernandes. “So how
processing some 300,000 to 350,000 persons a day.
SANDS CHINA (1928:HK) 18.3% MELCO CROWN ENTERTAINMENT (6883.HK) 14.6% WYNN MACAU (1128:HK) 11.5% MGM CHINA HOLDINGS (2282:HK) 9.8%
Asia Gaming Briefings | February 2015
GREATER CHINA 8 in Cotai, meaning it has more potential for
in the first half of 2016, with approximately
revenue growth if it fills the rooms. The
2,000 rooms and 500 table games. Wynn
Holds 22.9 percent as of early Jan. with 20
company’s new developments include the $3
Macau Q3 revenues dropped 5.6 percent
casinos. Its $3.2 billion Palazzo Versace
billion The Parisian that is scheduled to come
to $942.3 million, while adjusted property
development is scheduled to come online
online in late 2015. It recently expanded retail
EBITDA fell 1.1 percent to $325.5 million. Table
in 2017. The company is currently building
space at its Sands Cotai central property, with
games turnover in the VIP segment was $25.1
The Lisboa Palace on Cotai. The casino will
the addition of 150,000 square feet of space,
billion for the third quarter of 2014, a 17.4
have 700 gaming tables and over 1,200 slot
with shops designed to appeal to families.
percent decrease from $30.3 billion in the third
machines across a gaming floor area of
Sands China total net revenue for Q3 was
quarter of 2013. Table games win in the mass
approximately 27,000 square metres. The
down 0.4 percent to $2.33 billion, while net
market segment increased by 36.4 percent to
total production cost is estimated at about
income rose 4.3 percent to $644.6 million.
$327.2 million. In Q3, it invested about $301.1
HKD$30 billion ($3.8 billion), although the
The company’s Venetian property saw a 10
million in the Cotai project, taking the total
company has expressed concern over costs.
percent gain in non-rolling chip turnover
investment to date to $1.4 billion.
SJM Holdings said its Q3 profit declined 16.4
to $2.2 billion, though rolling chip volume
percent and its share of the Macau market
dropped 28 percent to $10.1 billion in the
slipped as VIP revenues fell, while its mass
quarter. At the Sands Cotai property rolling
market performance lagged rivals. The
chip volume was down 32 percent, while mass
company reported profit attributable to
market revenue jumped by 32.3 percent.
SJM HOLDINGS (880:HK)
MGM CHINA (2282:HK)
Has a 9.8 percent market share while operating
owners of the company of $1.53 billion ($197.3
a single casino in the peninsula. Its new
million). Gaming revenue fell 14.1 percent to
developments include the MGM Cotai, which is
$18.1 billion. The company said VIP gaming revenue dropped 23.6 percent to $10.37 billion, while mass market revenue edged
MELCO CROWN (6883.HK)
a $2.9 billion project scheduled for completion mid 2016. In the third quarter, Macau net
Has three casinos and a 14.6 percent market
revenues came in at $794 million, down
up 3.1 percent to $7.35 billion. Slot machine
share. Melco recently awarded France’s
about 2 percent, and above the consensus of
revenue gained 5.4 percent.
Bouygues a $488 million contract to build a
$765 million. Q3 VIP volumes fell 19 percent,
six-star hotel. The 39-floor building will be
while mass revenue jumped 34 percent. MGM
part of the City of Dreams and will have 783
China’s Q3 EBITDA was $213.8 million versus
bedrooms, a casino, restaurants, conference
the consensus of $191.6 million. l
GALAXY GROUP (27.HK)
room and a sky pool. The company’s $3.2
Has a 22.9 percent market share with six
billion Studio City is scheduled to open
casinos. The company is investing $2.5
in mid-2015. The resort will also feature
billion in the second phase of its Galaxy
a 5,000-seat multi-purpose theatre, a
Macau development, which is scheduled to
permanent magic show, jungle-themed river
come online in 2015. A recent fire prompted
rides, and a Ferris wheel, as well as a Batman
the evacuation of 6,000 workers but isn’t
attraction. The resort aims to diversify its
expected to delay the project. The expansion
attractions away from pure gaming. In Q3,
will nearly double the capacity of the resort.
adjusted EBITDA and revenue both fell
Galaxy Entertainment posted a 6 percent
10 percent due to a decline in rolling chip
gain in Q3 revenue, with gains seen in both
revenues. Net revenue was $1.12 billion down
the mass market and VIP segment. The
from $1.25 billion for the comparable period
group had quarterly revenue of $17.3 billion
in 2013 and in line with estimates. Adjusted
($2.23 billion). Adjusted EBITDA increased by
property EBITDA was $305.7 million compared
1 percent in the same period to $3.3 billion.
to $339.0 million in the third quarter of 2013.
Total gaming revenue grew a market leading
Reported net income was $132.2 million,
6.5 percent year-on-year to $17.1 billion
or $0.24 per ADS, compared with $179.4
driven by a 12 percent gain in mass market
million, or $0.33 per ADS, in the year ago
revenue to $4.8 billion. VIP revenue climbed
quarter. Adjusted EPS was $0.28, missing the
5 percent to $11.8 billion. The company is
consensus view by one cent. The company also
also expected to break ground on its hotel on
recently said it plans to delist its shares from
Hengqin Island this year. Galaxy is planning
the Hong Kong Stock Exchange in favor of its
a “Maldives-style” resort.
primary listing on Nasdaq.
SANDS CHINA (1928:HK)
WYNN MACAU (1128:HK)
Has a market share of about 18.3 percent and
Has an 11.5 percent market share and currently
has four casinos. Analysts say the company
has one casino. Its $4 billion Wynn Palace
has had a lower room occupancy than rivals
development is scheduled to come online
Asia Gaming Briefings | February 2015
MGM China is eyeing an investment in a project on Hengqin island, neighbouring Macau. Mainland authorities are currently considering whether to give the go ahead for the land to be used. The project would not contain gaming facilities as they are not permitted on Hengqin. The island is likely to eventually be able to provide the lower-cost accommodation that is lacking in Macau, helping to further develop the mass segment of the market. Macau regulators are strictly enforcing a rule requiring junket operators to ensure that their agents do not have criminal records. The Gaming Inspection and Coordination Bureau issued a formal notice to junkets on Dec. 19 saying they would be required to file documentation verifying no criminal activities.
GREATER CHINA 10
GROSS GAMING REVENUE (Source: iResearch)
Y14E Y15E
MAINLAND CHINA
Jockeying for a slot in the race Hong Kong-listed companies continue to jockey for position in China’s booming lottery market as the prospect of online and mobile sales edges closer
T
$61b $73.3b
Y13 Lottery sales $51.1b
+18.3%
Nov. sales ‘14 $5.2b
+24.4%
Sports Lottery Nov.‘14
+31.6%
Welfare Lottery Nov.‘14
+18.8%
Sales 11 months to end Nov.‘14 $55.8b
+24.1%
AGTech chairman and CEO calls the acquisition of China’s Score Card “a major milestone.” “As well as strengthening our hardware business, we are now positioned as a potential first-mover in the hugely exciting mobile smartphone lottery system and content supply market in China.”
he New Year heralded a new set of deals,
gradually expanded from an initial base of
with AGTech Holdings announcing its
simple, weekly-draw lotto games to a range
Silvercreek Technology Holdings unit
which includes weekly draw games as well as
has completed the acquisition of Score
high frequency games, scratch cards, video
Value, positioning itself for the opening of the
lottery terminals, sports betting and virtual
mobile lottery market.
sports betting.
The total price was HK$489.5 million ($63.1
Despite the growth, the market is still seen as
million), which is subject to downward
under penetrated by international standards,
adjustments. It comprised an initial consideration
while the illegal market is estimated at between
of HK$189.5 million and a deferred consideration
10 and 20 times bigger than the regulated lottery,
of HK$300.0 million.
showing the potential value. The planned opening
Score Value is involved in research and
of online and mobile distribution channels is
development, quality assurance and the sale
expected to provide a major boost.
of handheld lottery sales equipment, as well
China Vanguard said recently one of its indirect
as the design of lottery games and systems. It
units has reached an accord with the Shaanxi
is currently seeking approval from the relevant
Province Sports Lottery Administration to roll
government authority for the system and content
out interactive self-service lottery solutions
of a lottery game to be played on mobile smart
in the province.
phones in China.
The group will be responsible for the joint
“The successful completion of this acquisition
planning of marketing, advertising and training,
is a major milestone for AGTech. As well as
as well as the development, provision and
strengthening our hardware business, we are
maintenance of the systems.
now positioned as a potential first-mover in
Shaanxi Sports Lottery Administration Centre
the hugely exciting mobile smartphone lottery
will pay the group a proportion of total sales
system and content supply market in China,”
generated on a percentage basis. To date, the
Bestinfo’s team specializes in the research
AGTech chairman and CEO John Sun said.
group’s lottery-related business has expanded
and development of lottery transaction and
The Chinese lottery market likely swelled to
into 20 provinces and regions in China and the
management systems, and is responsible for
about $61 billion in 2014 and is forecast to hit
board said it sees huge potential in the interactive
a number of firsts in the Chinese lottery sales
more than $73 billion this year, according to
self-service lottery business.
systems market, including establishing the
estimates from iResearch. Lottery sales have
As 2014 drew to a close, China LotSynergy Holdings
first computer ticket game hotline system in
increased at a compound annual growth rate of
announced its Beijing Kexun Tiandi Technology
Dongguan, Guangdong Province and the first
approximately 33 percent between 1987 and 2013.
unit completed the acquisition of Beijing Bestinfo
hotline CTG sales system in China, which was
During this time, the products on offer have
Cyber Technology for $75.4 million.
implemented in Zhejiang Province. l
Asia Gaming Briefings | February 2015
A two-month pre-Christmas clampdown by Chinese authorities resulted in the detention of 30,000 people involved in gambling and pornography, according to state media. Police recently raided an online gambling racket in Huizhou City which involved funds of up to 30 million yuan ($4.8 million).
SOUTH EAST ASIA 12
GROSS GAMING REVENUE Y14E $6.12b
+1%
Y15E $6.06
-1%
(Source: Citi Research)
$6.9b $6.4b $6.4b $6.6b
$7.4b
SINGAPORE
At a standstill
Y14E
Y15E
Y16E
Y17E
Y18E
(Source: JP Morgan)
improve capacity, leading to a 2 percent gain
Singapore’s two casino properties are likely to face another lacklustre year in 2015 as Chinese visitation remains weak and regional competition mounts
in mass GGR in 2015. “Despite the new Jurong hotel opening, the Singapore gaming market remains unexciting, in our view,” it said. Citi expects GGR to decline 1 percent to $6.06 billion this year, while analysts at JP Morgan are slightly more bullish seeing a slight uptick to $6.6 billion. Despite the sluggish growth Fitch Ratings says the two properties are well positioned to weather the downturn, which is unlikely to pose major problems for their underlying credit rating. Analysts are not expecting any initiatives from the government to help provide a boost to the
G
enting Singapore and Marina Bay
casino industry either, with all signs pointing
Sands both reported declines in Q3
to a desire for tighter restrictions.
profit, the latest figures available,
The government sent the online industry reeling
amid a steep drop off in VIP revenue.
with the passage of the draconian Remote
Genting, which owns the Resorts World Sentosa
Gambling Act in October. The legislation is
property, said the Asian gaming and tourism
among the toughest in the world and means
industry is facing “significant” challenges.
that the entire spectrum of remote gambling
One of the main issues facing the Singapore
activities in the country will be criminalized. The
market has been the sharp downturn in Chinese
restrictions are extremely broad and will be felt
visitors, with mainland China arrivals falling
by operators, agents, brokers, service providers,
29 percent in the first eight months of the
advertising networks, payment processors,
year. Tourism numbers were hit hard by the
financial institutions, ISPs and players.
Singapore’s National Council on Problem Gambling has appointed Addiction Advertising as its creative agency for its 2015 campaign targeting gambling addiction. As the appointed agency, Addiction would be responsible for the provision of strategic counsel, creative direction and conceptualization of a brand new campaign, it said. The nationwide campaign is expected to run in Q1 of 2015 across multimedia platforms that include broadcast, print and online. Singapore casinos are mature properties, which will be able to withstand “moderately declining revenues and margin compression without impairing their underlying credit profiles,” Fitch Ratings says in its 2015 outlook.
disappearance of flight MH370, which also cut travel to Malaysia and Thailand. Citi Research said in a recent report that it
GENTING SINGAPORE
expects the decline to stabilize in 2015, but
Operator of the Resorts World Sentosa IR,
doesn’t expect total China visitors to return to
reported a 43 percent drop in Q3 net profit and
the high levels recorded in 2013 any time soon.
warned the Asian gaming and tourism industry
MARINA BAY SANDS
Weakness in the VIP sector is also expected to
is facing “significant challenges.”
Posted a 5 percent decline in Q3 revenue to $735.5
continue and is likely to drop about 3 percent this
The group posted a net profit of $127.1 million
million, while casino revenue was down 8.7 percent.
year, Citi says, though the firm is more optimistic
($98.5 million). Revenue declined 17 percent to
The company posted adjusted property EBITDA
about the prospects for the mass market.
$644.8 million, while adjusted earnings before
of $351.7 million, down 5.9 percent. Rolling chip
That’s mainly because Genting will be opening
interest, tax, depreciation and amortization was
volume was down almost 34 percent, while mass
a new 500-room hotel in Jurong, which will
S$253.9 million.
revenue dipped 1.6 percent. l
Asia Gaming Briefings | February 2015
SOUTH EAST ASIA 14
GROSS GAMING REVENUE
MALAYSIA
Genting’s domestic plans support overseas growth Genting’s ambitious overseas expansion plans are facing headwinds, hitting a snag in the U.S. and delays elsewhere, but analysts remain optimistic over the mid-term prospects for Malaysia’s only operator thanks to a US$1.4 billion plan to revamp its operations at home
T
he company failed to secure a license
Century Fox World theme park scheduled for
in New York state despite submitting
late-2016; two new hotels with 2,300 rooms
two bids, while political uncertainty has
for 2018; as well as the Sky Avenue and Sky
stalled the passage of a bill to legalize
Plaza shopping malls, and a new cable car
Y15E $5.6b
+7%
Y16E $6.12b
+10%
(Source: Citi Research)
$1.7b
$1.8b
$1.9b
$2b
$2.2
Y14E
Y15E
Y16E
Y17E
Y18E
(Source: JP Morgan)
There’s more smoke than fire in Malaysia’s threats to clamp down on online gambling overseas, according to industry insiders. The Attorney General has ordered a review of the Common Gaming Houses Act 1953, one of the main laws restricting gambling, because the Act does not cover betting through the internet. However a gambling company director in Kuala Lumpur discounted fears that the government genuinely wanted to eliminate offshore gambling.
casinos in Japan, where the group also has
station by 2016.
ambitions. Meanwhile a more than $2 billion
Alliance DBS Research analyst Cheah King Yoong
resort planned for South Korea’s Jeju Island
was also positive over the domestic prospects for
still has to break ground following resistance
the group. Cheah recently attended a corporate
from the local governor.
event organized by Genting Group, and was
“Despite fielding two convincing bids (Sterling
updated on the GITP.
Forest Resort and Resorts World Hudson Valley),
“We understand that progress of the GITP
Genting did not win one,” Maybank Investment
remains on track,” he said.
Bank Research analyst Samuel Yin said, referring
With the impending successful implementation
to the New York bids.
of the GITP, Genting is positive that the
The New York Gaming Facility Location Board
number of visitors to Resorts World Genting,
acknowledged that the Orange County proposals
about an hour’s drive from Kuala Lumpur, is
were attractive in terms of gaming experiences,
set to increase from the current 20 million to
loyalty programs and supplemental license
26 million by 2018, and 30 million by 2020,
fees, the analyst said.
Cheah added.
However, local opposition, environmental
Citi Research said the renovations have led to
concerns, traffic issues, the financial strength
lacklustre mass market growth in 2014, down
of certain bidders and its proximity to New York
low single digits. However, with much of the
City resulting in potential cannibalization, were
work due to be completed in 2015, it expects
among the factors prompting the board to drop
an improvement this year as new hotel rooms
a license in Orange County, he added.
become available.
The board on Dec 18th, chose to award only
“We expect this 13 percent increase in hotel
three out of four potential licenses for the state.
capacity will increase local players’ time
Genting’s indirect subsidiary, RW Orange County
spent at the Highlands and lead to a decent
LLC, had proposed to build two casinos -- one
recovery in mass GGR. We currently expect
in Tuxedo and another one in Montgomery.
mass GGR at Genting Highlands to grow 7
However, the analysts noted that the new
percent in 2015 and 14 percent in 2016, but we
casinos aren’t likely to hurt Genting’s existing
maintain our view that VIP volume growth will
racino facility at Aqueduct which offers slots
remain muted.”
and electronic gaming.
It said competition from new properties elsewhere
“On that note, we do not believe the upcoming
in the region, including Macau, the Philippines
Montreign will negatively impact Resorts World
and Cambodia, may dampen VIP potential.
New York City as they are far apart at 2.5 hours
The firm sees overall Malaysian GGR growing
away by road,” said Yin, who maintained a “buy”
7 percent in 2015 to $5.6 billion and 10 percent
call on Genting mainly based on its Genting
in 2016 to $6.2 billion.
Group net profit for the July-to-September
Integrated Tourism Plan (GITP).
Genting on Nov 21, 2014 posted an almost 24
quarter fell to RM352.7 million from RM462
The GITP in Malaysia involves investing
percent drop in third-quarter profit, due to
million in the corresponding period a year
RM5 billion to build a 1,300-room three-star
lower revenue from high-rolling gamblers at
earlier. Genting controls Genting Singapore,
hotel due for completion by mid-2015; a 20th
its Singapore casino.
which saw a 43 percent slump in net profit. l
Asia Gaming Briefings | February 2015
A letter from Malaysia’s Home Minister Datuk Seri Ahmad Zahid Hamidi allegedly supporting gambling kingpin Paul Phua was withdrawn from a Nevada District Court on the request of the government. The government said the contents of the letter were not meant for public consumption and objected to it being used in the defense of Phua, who is on trial for organizing an illegal online sports betting ring during the World Cup.
SOUTH EAST ASIA
Frank Schuengel / Amadeus Photography
16
PHILIPPINES
Growth to outpace rivals
The Philippines is expected to be the fastest growing gaming jurisdiction in Asia in 2015, though as new properties open the market may not be as deep as some had hoped
G
ross gambling revenue is likely
De Niro and Hollywood producer Meir Teper.
of 29.4 percent compared with 28.8 percent
to surge 32 percent in 2015 on the
JP Morgan analysts have also called the
at RWM, it said.
back of new openings, according to
opening of the resort a “game changer” for
The signs of cannibalization are alarming,
a report from Citi Research, taking
the Philippines.
“as it shows that the “pie” might not be big
the size of the market to $2.7 billion in 2015,
“Locally, its diverse non-gaming offering with
enough for everyone to see GGR growth in this
from $2.05 billion in 2014, a gain of 9 percent.
well-branded hotels, as well as clustering effect
growing market.”
“We believe the exceptional growth in the
with Solaire would finally help Entertainment
GGR at RWM is likely to have fallen 9 percent
Philippines gaming market seen in 2014 was
City to build the critical mass,” it said in a
in 2014 and may fall a further 6 percent in 2015
a perfect example of “build it and they will
recent report.
as COD comes on line.
come,” the report said.
Bloomberry Resorts’ Solaire Resorts and Casino
Still, healthy economic growth and improvement
Melco Crown Entertainment recently held the
also recently opened its new Phase 1a addition.
in infrastructure in the country are expected
soft opening of its City of Dreams resort in
The expansion provides an additional 66 VIP
to underpin demand.
Manila in what is expected to be a game changer
gaming tables and 223 slot machines. It will
“On our estimates, City of Dreams Manila will
for Manila’s goal to become an entertainment
also include a 312-room all-suite boutique hotel
become the market share leader and capture 23
hub. Melco will be able to provide its Macau
tower and a 1,760-seat Broadway-style theatre.
percent of total market share by 2018, followed
experience and has a tax incentive to grow
The expansion is important for Solaire as it
by Solaire at 20 percent and Resorts World
the VIP business given the lower rates in the
adds more non-gaming attractions, making
Manila at 16 percent.”
Philippines than Macau.
it into a more all-round resort.
The attraction of the Philippine market hasn’t
By far the biggest resort in the Philippines so
That said, Citi Research has scaled back its
escaped other casino majors, with U.S. casino
far, COD has more than 365 gaming tables,
previous assumptions for the Philippines from
operator Caesars Entertainment recently saying
1,700 slot machines and 1,700 electronic
growth of 42 percent as it is seeing signs that
it would be prepared to make an investment
table games. The integrated resort will have a
the cannibalization rates from the existing
of about $1.5 billion in an integrated resort in
strategic mix of hotel brands, spread across six
Resorts World Manila property may be worse
the Philippines and is eyeing a site next to the
hotel towers, including the 260-room Crown
than had been expected.
international airport.
Towers hotel, which will cater to the high-end
Travellers reported gross gaming revenue of
Comments by executives of their plans for the site
VIP and premium mass market segments, and
PHP 7.2 billion ($159.6 million) in 3Q14, lower
prompted Philippine Gaming and Amusement
the 321-room Nobu Hotel Manila, a project
than the P7.7 billion at Bloomberry Resorts.
Corp. chairman Cristino Naguiat to say that he
spearheaded by celebrity chef Nobu Matsuhisa,
Solaire has become the largest casino in the
doesn’t expect any new licenses to be issued in
and championed by Hollywood actor Robert
Philippines, with an estimated market share
the country until 2016.
Asia Gaming Briefings | February 2015
SOUTH EAST ASIA 17
SOLAIRE RESORT & CASINO
RESORTS WORLD MANILA
Bloomberry Resorts’ Solaire Resort & Casino
Travellers International Hotel Group, a joint
was the first to open in Entertainment City
venture between Genting Hong Kong and
and is now set to open its 200,000 square-
Alliance Global Group, was scheduled to
meter extension in October this year. The
GROSS GAMING REVENUE Y14E $2.05b
+9%
break ground by the end of this year on the
Y15E $2.71b
+9%
$400 million add-on will feature more VIP
$1.1-billion Resorts World Bayshore along
(Source: Citi Research)
gaming sections, 300 all-suite hotel rooms,
Manila Bay. The opening has been delayed
a shopping center with 30 to 40 high-end
to 2018.
shops, a 1,800-seat entertainment theater,
The company is also pushing ahead with the
3,000 parking spaces, a nightclub and more
expansion of Resorts World Manila. It has
restaurants. The initial outlay was boosted
allotted $600 million for the second and third
to $680 million, $60 million more than
phases of the resort to boost retail space by 60
previously announced.
percent. It will add 1,100 rooms to the existing
“This is definitely going to drive visitation
1,226 rooms in Resorts World Manila’s
to Solaire not just from locals but more so
Maxim’s, Marriott and Remington hotels.
from foreign VIPs going forward,” said Leo
In a disclosure to the Philippine Stock
D. Venezuela, director of investor relations
Exchange in April, Travellers said Pagcor
at Solaire Resort and Casino.
approved new gaming capacity of 420
Bloomberry Resorts Corp. Q3 total revenue
gaming tables and 4,148 gaming machines.
was 5.85 billion pesos ($130 million),
At end-2013, Resorts World Manila housed
compared with 4.11 billion the previous year.
287 gaming tables for the VIP and mass
Gross gaming revenue jumped 57.5 percent
markets, 1,822 slot machines and 210
to 7.7 billion pesos.
electronic table games. Travellers says it has
Bloomberry said as of September 30, 2014,
so far used about 1.11 billion pesos ($25.5
the group has 58 junket operators that
million) of the 16.8 billion pesos that it
actively bring in foreign VIP players. Solaire
raised through an initial public offering on
Rewards Club registered 370,000 members
the Phase 2 expansion of the Marriott Hotel
and visitation for 2014 has reached 3.24
and the Maxim’s Hotel and facilities.
million.
CITY OF DREAMS.
MANILA BAY RESORTS Pagcor chairman and CEO Cristino Naguiat
Belle Corp and Melco Crown held the soft
Jr. has said that Universal Entertainment’s
opening of the City of Dreams casino resort
Manila Bay Resorts would not be allowed to
project in December, and the grand launch
open its casino until outstanding issues were
is scheduled for Feb. 2. City of Dreams
resolved, including foreign equity limits on
will also bring luxury brand, Nobu to the
land ownership. The bribery charges filed
Philippines, as well as an educational
against Japanese billionaire Kazuo Okada
entertainment center in a venture with
have recently been dropped following an
Hollywood studio, Dreamworks. Melco has
investigation.
also teamed with the Ault Group to add two
Former joint venture partner, Century
renowned nightclubs -- Pangaea and Chaos
Properties, recently said it wants to resume
In June, Melco upped its estimate for the
talks with Universal on their accord, which
Entertainment City resort by about a third,
was terminated in March, on the original
from $680 million to $832 million.
terms. Successful conclusion of negotiations
The property will feature 365 gaming tables,
would put the Japanese company back in
1,680 slot machines and 1,680 electronic table
compliance with Philippine laws on foreign
games upon opening, catering to both the VIP
land ownership.
and mass market, and 950 hotel rooms.
The company is seeking to open its $2-billion
Melco Crown Philippines posted a net loss of
gaming complex by the third quarter of 2015.
P1.78 billion for the third quarter compared
The casino will feature 2,000 rooms, state-
with P684 million in the year-ago period.
of-the-art gaming facilities, and an indoor
Pre-opening costs were P1.39 billion, an
man-made beach club covered by a huge glass
increase of 313 percent from the prior-year
dome, high-end and casual dining restaurants,
period.
upscale retail shops, trade halls and cinemas. l
$3.7b
$4.1b
$4.5b
$3.2b $2.6b
Y14E
Y15E
Y16E
Y17E
Y18E
(Source: JP Morgan)
Share of global gaming industry Y14 Global share Y18E
3.3%
4.5-5%
(Source: Fitch)
South Korea’s Widus Hotel and Casino plans to spend $100 million to expand its casino operations at the Clark Freeport Zone in the Philippines. The company also plans to seek a stock market listing there, local media cited CEO Daesik Han as saying in a round-table interview. That would take its total investments in Clark to $200 million. Philippine market regulator, the Philippine Amusement and Gaming Corp says it’s unlikely to award new gaming licenses until current President Aquino steps down in mid-2016. Pagcor chairman Cristino Naguiat Jr. said existing players also need time to develop their business in a still-untested market. The four existing licenses were all granted under the previous administration with no new approvals under the current president.
Asia Gaming Briefings | February 2015
INDOCHINA 18
GROSS GAMING REVENUE
CAMBODIA
(Source: JP Morgan)
Nagacorp seen benefiting from increased China visits “Although there is no minimum rolling chips
NagaCorp is expected to continue to reap the benefits from its focus on China’s VIPs in 2015, with revenue from the high roller segment likely to outstrip that from the mass market, Citi Research estimates that VIP volumes at NagaCorp will rise 25 percent in Y15, although it expects a slowdown in the mass market rate to 15 percent for the same period
Y14E GGR $0.5b
NAGACORP 9-month GGR, Y14 $271.8m
+26%
Junket, VIP, Y14E $2.71b
+25%
VIP volumes, Y15E Mass Market, Y15E $2.71b
+15% +15%
volume requirement for these junkets, we believe the attractive junket commission (70 percent gaming revenue sharing compared with about 45 percent in Macau) is sufficient
TOURISM ARRIVALS
incentive for the junket to bring the VIP
10 mo. to Oct. ‘14
players to NagaWorld,” Credit Suisse said in
+5.9%
a recent note. In the first 10 months of 2014 tourism arrivals were up 5.9 percent. That’s a slowdown from the same period the previous year, however inbound visitors from China remained strong gaining 21 percent and making up 12.7 percent of the market. The slowdown was mainly due to weak arrivals from Vietnam, the country’s biggest tourism source, making up about 20.1 percent of the total. The government has also said it may consider opening up its casino market to local residents in light of planned moves by Vietnam to do the same. Phnom Penh fears the loss of millions of dollars
Kiron Interactive and its partner IPG International have launched their new Keno game in Nagacorp’s NagaWorld casino in Cambodia as part of a strategy of supplying products across the region. The two companies signed a multi-year agreement in September 2014 to provide players with a gaming platform customized to conform to Naga World’s local requirements.
a year in revenue that the country currently
T
gets from Vietnamese citizens crossing the he company last August said it had
border to gamble. Citi estimates that players
signed two Macau junkets to escort
from Vietnam represent roughly 15 percent
mainland VIPs to its resort near
of Naga’s total.
Phnom Penh and expects to sign
Meanwhile, Donaco International still has to
more. It also has a strategic partnership with
reveal details of a planned casino acquisition
Bassaka Air, leasing two A320 planes to bring
in Cambodia.
gamblers to the country.
The Australia-listed company said last year
The company owns the largest casino resort in
that it has signed an exclusive term sheet for
Cambodia and has an exclusive license within
a major purchase of a gaming and hospitality
a 200km radius of the capital. In October, the
venture in Cambodia. In late November, it told
company said the government has confirmed
investors that the target company is highly
those exclusivity rights for a period of 70 years.
profitable, has a good market position and
The first of the two Macau junkets – Asia
generates strong cash flows.
Nation – started contributing to NagaWorld
It said it will pay 6X EBITDA for 2014 through
operations from end-August, while it also has
a mixture of cash and debt and the property
an agreement with Suncity Group, one of the
is expected to generate very strong earnings
largest junket platforms in Macau.
per share accretion. l
Asia Gaming Briefings | February 2015
Koh Puis Investment Group plans to build a luxury resort and casino on Morakot Island off the coast of Sihanoukville. It plans to develop one six star, two five-star hotels and one four-star casino hotel, a VIP casino, marina yacht and beach club, high-end restaurants and bars, a luxury spa and wellness centre, a 150-unit marina village, meeting and conference facilities and various villas.
INDOCHINA 19
Y14 DONACO REVENUE Gaming & hospitality $2.05b
+33%
VIP $2.71b
+67%
Slots $2.71b
+144%
VIETNAM
All in the details Operators interested in the Vietnamese market are still waiting to hear details of the country’s new casino legislation, which may allow locals to gamble for the first time in what could be a game changer for the industry.
L
ast summer, preliminary details of
integrated resort.
the new legislation were revealed
The Ho Tram Strip, Vietnam’s largest integrated
that showed local access was being
resort, also found a new financial partner last
considered. However, some of the
year. Asian Coast Development (Canada) said
provisions were viewed as a potential deterrent
NewCity Capital, a company established by
to foreign investment, imposing conditions on
American investor Chien Lee, will be the new
locals that were seen as largely unenforceable
financial investor, though it gave no further
and unrealistic.
details.
Article 10 of the draft decree stipulates Vietnamese
Vietnam has seven licensed foreigner-only
citizens must have a minimum monthly salary
casinos and allows a limited number of slots
of 15 million Vietnam dong ($700), and show
in five-star hotels for the most part in the
“financial competence” or some valuable assets
capital Hanoi and in Ho Chi Minh City. There
(saving books, etc.). Foreign passport holders
are also Electronic Gaming Clubs in Da Nang
and overseas Vietnamese can enter without
and Vung Tao.
any restrictions.
Five casinos are in the north of the country,
Some of the stipulations in Article 10 of the draft
mainly on the coast or close to the Chinese
decree have raised eyebrows with the vague
border, with the biggest currently at Halong
use of words such as “financial competence.”
Bay, some 150km from Hanoi, which boasts
In the meantime, some long-delayed projects
18 live tables. The remaining two casinos are
appear to be moving ahead despite the lack of
located in southern (Ho Tram) and central (Da
clarity on regulations.
Nang) Vietnam.
Hong Kong jewellery chain Chow Tai Fook
Several other locations around the country are
Enterprises revealed in December that it’s
also being touted as possible casino destinations
considering investing in the $4 billion Quang
as officials seek to boost tourism and the local
Nam casino project in central Vietnam, providing
economy.
a replacement for Malaysia’s Genting, which
A senior Vietnamese banker recently urged for
pulled out in 2012.
a development on the central island of Ly Son
“We are interested,” company director Henry
and an islet off its coast. Tran Bac Ha, chairman
Cheng told Bloomberg in an interview. “We are
of the Bank for Investment and Development of
doing something now to secure this project.”
Vietnam, said the 69-hectare Be Island should be
He gave no further details.
set aside for a “high-end entertainment area.”
VinaCapital, an asset management firm focused
Vietnam’s politburo has also reportedly agreed
on Vietnam, had said in October it was finalizing
to the opening of a casino on Phu Quoc Island in
talks with a foreign investor partner and expects
the Mekong Delta, as part of plans for a special
to start construction soon on the long-delayed
economic zone. l
Y14 VISITATION Tourism arrivals 7.8m China Arrivals 1.9m
Prime Minister Nguyen Tan Dung has recommended that agencies waive visa requirements for more nationalities and urged them to streamline inefficient visa procedures. He asked the ministries of public security, tourism, and foreign affairs to work with agencies to come up with a list of visa waiver countries. Possible exclusions include the U.K. Germany, France, Spain, Italy, Australia and New Zealand. The green light has been given by the local govenment for a tourism and entertainment complex, including a casino in the Phu Quoc Island district in the south of the country. Spanning an area of 583.23 square kilometers and with a population of 96,940, the island district is a special administrative economic zone, an international luxury eco-tourism and entertainment site and a regional financial centre.
Asia Gaming Briefings | February 2015
NORTH ASIA 20
JAPAN
Casino debate throws spotlight on Pachinko industry A consequence of the casino debate is a renewed attention on Japan’s massive pachinko industry, the game that operates on the margins of Japan’s current anti-gambling laws
Asia Gaming Briefings | February 2015
J
apan’s casino bill has been put on the
However, these figures have been in steady
back burner, with no realistic prospect
decline since the industry’s peak year of 1995.
for the enactment of basic legislation
With the ageing of the Japanese population
authorizing casinos until at least the
and years of sluggish economic growth, the
second half of this year.
number of players is now less than half of
However, the re-election of Prime Minister
what it once was.
Shinzo Abe, one of the bill’s key backers, has
With their deep roots in the Japanese gaming
reignited hope that there is still political will
industry, pachinko-related companies could
to establish what is expected to become the
potentially exercise a large impact on the fate
world’s third largest gambling market.
of the casino bill, either by becoming active
A proposal being debated among lawmakers is
participants in developing casinos themselves,
that the rules governing pachinko parlors be
or negatively by throwing their political weight
revised to formally allow players to receive their
against the initiative.
cash winnings. Exchanging pachinko balls for
When AGB originally contacted the Okinawa
cash is the reality of the current system, with
Prefecture Amusement Industry Cooperative
players walking just a short distance “off-site”
they claimed to take a neutral position on
to receive their earnings. The proposal is that
whether or not the bill should be passed. The
this reality finally be acknowledged and that
spokesman for the cooperative, said that their
pachinko parlors begin to pay out in cash instead
assessment was that the customer base for their
of gifts within the establishments themselves.
pachinko businesses and that of future casinos
Such a legal change, though it may accord better
would likely be quite distinct.
with common sense, would be quite unwelcome
This same perception was held by a small, local
to some sections of the pachinko industry if it
pachinko operator in Okinawa Prefecture, who
were accompanied by a requirement that they
anticipated “no impact” on his business as the
then begin paying gambling taxes and lose their
result of the possible establishment of casinos
current formal status as simple leisure facilities.
in future years.
The pachinko industry in Japan is huge: There
Indeed, there is plenty of reason to believe
are about 11,000 pachinko parlors around the
that the establishment of casinos would
nation and it has revenue of about 8.8 trillion
have a marginal effect on the direction of the
yen ($153 billion), according to The Leisure White
pachinko industry.
Paper 2014 published by the Japan Productivity
In the first place, some versions of the integrated
Center. The parlors also employ some 310,000
resort plan suggest that Japanese casinos could
employees, which is approximately 1.5 times
be limited to, or predominantly aimed at,
the number employed by Japan’s top ten
foreign tourists instead of the Japanese people
automotive companies.
themselves, similar to the South Korean model.
NORTH ASIA 21
PACHINKO/PACHISLOT ANNUAL REVENUE
PACHINKO/ PACHISLOT ANNUAL REVENUE
$153b
(Source: Japan Productivity Center)
CASINO GAMING VENUE ESTIMATE Y1
$10b (Industry median estimate)
CASINOS GGR ESTIMATES But even if Japanese citizens are indeed the
However, as is pointed out by Kazuaki Sasaki,
main target customers for future casinos, all
Assistant Professor at Nihon University’s College
indications are that the integrated resorts created
of Economics, the impact of such a development
thereafter will be extremely limited in number.
would likely fall hard on the majority of small
The most likely locations appear to be the Tokyo
pachinko operators, but could open up new
waterfront and Osaka. Okinawa was seen as a key
opportunities for the larger companies with
contender but recently ruled itself out of the race.
substantial capital to invest in renewal strategies.
The skepticism of the Japanese general public
Some of these larger operators are also looking
about hosting casinos could reduce that number
abroad for their expansion prospects.
even further to perhaps one or two—assuming
Hong Kong-listed Dynam Japan Holdings has
that some new legislation is passed at all.
invested about $85 million in Macau Legend
It’s difficult to imagine such casinos posing
Development in the past year and is seeking
any serious threat to the pachinko industry.
approval to locate pachinko machines in the
Every small, local community in Japan boasts
company’s casinos.
its pachinko parlors, even in areas which are
Sega Sammy has teamed up with South Korea’s
otherwise underdeveloped. Pachinko has
Paradise Co. to build a $1.1 billion integrated
become the habit of housewives going to the
resort on the island of Yeongjongdo Island,
market and businessmen on their way home
Incheon. This joint venture partnership expects
from their day’s work. The customer base
to complete the foreigner-only property by
indeed seems that it would be quite different,
July 2017. Paradise has a 55 percent stake in
with only those pachinko parlors that happen
the firm, while the Japanese partner holds the
to be placed in the immediate vicinity of the
remaining stake.
handful of casinos potentially affected.
Sega Sammy has said the venture will help it to
If there is a threat that casinos indirectly pose
learn how to operate casino resorts, suggesting
to the pachinko industry, it is the one already
that they are eager to take their experience back
alluded to above—that the debate may bring
to the home market in future years.
unwanted public scrutiny to pachinko, especially
Dynam says it still sees potential for growth inside
in relation to issues like gambling addiction,
Japan, but says the industry needs to consolidate.
public morals, and the dubious legality of its
“The pachinko industry is highly fragmented
cash prizes.
and hall operators operating networks of over 10
Most of all, the threat is that the spotlight on
halls is limited to the few in the entire industry...
casinos may encourage the tax authorities to
We believe that there is significant potential to
take a hard look at pachinko and wonder if they
expand in terms of both scale of operations and
ought not be demanding a bigger cut of pachinko
market share,” it said in a recent results filing
revenues on behalf of the public interest.
to the Hong Kong Stock Exchange. l
Y20E (UBS)
$9.4b
Y25E (CLSA) Y30E (UBS)
$40b
$18.4b
The prefectural government in Okinawa, Japan won’t seek to attract integrated resorts if the country passes a law legalizing casinos, due to opposition from new Governor Takeshi Onaga who took office in December. The previous administration had been researching a potential casino project for the past eight years, but the government will not now allocate funds in its fiscal 2015 budget. Universal Entertainment says the Philippines has decided to terminate an investigation into claims the Japanese company paid a bribe to officials of the Philippine Amusement and Gaming Corp. There was insufficient evidence to support the allegations after a year-long investigation.
Asia Gaming Briefings | February 2015
NORTH ASIA 22
RUSSIA
Optimism despite economic deep freeze
Russia’s crashing ruble, falling oil prices and an almost doubling in capital outflows, have done little to dampen enthusiasm for two upcoming casino projects in Russia’s Far East, with experts saying the current economic woes will have little impact on their longer-term viability
T
he First Gambling Company of the
to generate $5.2 billion in revenue by 2022, with
facilities. The China mass market and VIP
East is scheduled to open its casino in
a major attraction being the low taxation rate.
business will be very much a part of our overall
Primorye in May 2015, while Hong Kong-
The Russian government has set one of the
strategy,” he told AGB.
listed Summit Ascent Holdings is also
lowest tax rates in the world to attract investors,
With more than 150 million Chinese within a
aiming for the “second quarter” of next year.
at between 3 percent to 7 percent, compared
2-hour flight of Vladivostok, McNally described
NagaCorp is also pushing ahead with its plans.
with 39 percent in Macau and 22 percent in
Vladivostok as “Russia’s gateway to the Far
The First Gambling Company of the East had
Singapore.
East” and “a very important city” in terms of
originally planned to open its resort in the
“To date, we have signed investment agreements
enhanced commercial and political ties with the
Primorye Integrated Entertainment Zone (IEZ)
with two world leaders, namely Melco and
Asia Pacific region. He also showed confidence
in the first quarter of 2013. The company says
NagaCorp. We are also in discussions with other
that “the Russian government, most particularly
its Tiger de Cristal entertainment complex,
key industry players such as Global Gaming
the Ministry of Tourism, recognizes the potential
including a casino and hotel with 120 rooms,
Asset Management,” Vladimir Miklushevskiy,
economic impact with increased tourism from
will be “the largest of its kind in Russia.”
governor of the Primorsky Territory told AGB
China, Korea and Japan.”
Despite the delays, the project now appears to
without giving further details.
Nevertheless, there were only 86,450 overseas
be on track, with representatives of the regional
Miklushevskiy said China was the zone’s
visitors, including over 50,000 Chinese and
government having begun their examination
primary target market, followed by South
about 6,000 South Koreans to Primorsky Krai
of the resort facilities and a recent job fair held
Korea and Japan. “We have a common border
in the first quarter of 2014. Andrew Klebanow,
to recruit staff, including dealers. The fair was
with China and the close proximity between us
principal of Gaming Market Advisors, said that
attended by hundreds.
gives Primorsky Krai an advantage in attracting
the relatively small number was because of the
Primorye IEZ is commonly referred as a “seaside
Chinese tourists,” he said. “We expect that
less than ideal weather, a shortage of tourism
Las Vegas” or “Russia’s Macau” by local media.
there will be 10 – 12 million people coming
activities and a minimal budget for the Primorsky
The zone is located in the area of Muraviinaya bay,
here annually after Primorye IEZ is opened.”
Krai administration to promote tourism.
about 15 km from Vladivostok International Airport
Timothy McNally, chairman of Hong Kong-
Klebanow said the opening of casinos is likely
and 50 km away from the region’s administrative
listed NagaCorp, with plans for a $350 million
to significantly boost visitation.
centre of Vladivostok. Currently there is a railway
integrated resort in Primorye IEZ , was also
“The opening of the IEZ and, more importantly,
network that connects the airport to Vladivostok
optimistic about the region’s potential.
casino-resorts within the IEZ will stimulate
city but does not connect to the zone.
“We are confident of this business decision and
incremental demand to the region. The IEZ will
US-based research firm, Gaming Market Advisors,
firmly believe the China/Korean markets will
substantially increase tourist visitation to the
has estimated that the region has the potential
respond well to our gaming and entertainment
region as the operators will spend significant
Asia Gaming Briefings | February 2015
NORTH ASIA 23
GROSS GAMING REVENUE (Source: Goldman Sachs)
ILLEGAL MARKET (E) $0.5b AZOV Y14E $300m Summit Ascent Y20E
$1.7b
Primorye Y22E
$5.2b
Sochi mayor Anatoliy Pakhomov has said that the Sochi gambling zone will open its doors in May 2015. He says an open sky regime coupled with a possible 72-hour visa-free transit and the zone’s location in Krasnaya Polyana will attract more tourists to Sochi. advertising dollars in key market segments
gambling zone was originally scheduled to
and leverage their relationships with junket
open in 2010 and has been postponed at least
operators to bring in players.”
three times. But the casino finally opened in
However, the resort projects in the Vladivostok
November this year. Located near the border of
area, like those in other Russian gambling
China and Kazakhstan, the casino also targets
zones, have made slow progress.
Chinese gamblers.
Hong Kong-listed Summit Ascent Holdings
Experts also largely dismissed other potential
has also said the construction of its Primorye
problems, such as Russia’s unstable economy,
resort has been delayed “due to unforeseen
the Chinese government’s clampdown on
obstacles.” The opening is now rescheduled for
corruption, which is hurting VIP revenue, and
the second quarter of 2015. Even if the project
visa restrictions.
meets the new target date, it will still be a year
Steven Gallaway, principal at Global Market
behind schedule as its construction was to be
Advisors, stressed that the Primorye IEZ is not
completed in April 2014.
vulnerable to the drastic changes in the Russian
The company says delays in getting re-design
economy as the zone won’t be targeting locals.
approval from the local authorities, slow
“Russia is Russia and there will always be an
certification in the procurement of import
‘instability’ factor. However, as the gaming
“Vladivostok will attract tourists and gamers
materials and equipment, as well as delays in
revenue is coming from the Chinese and other
that simply live too far from Macau and will
getting approval for foreign workers are the
Asian gamers, the poor Russian economy has
find Vladivostok a more convenient gaming
key factors causing the hold ups.
very little impact on the revenue potential for
destination,” Gallaway commented. “At the
McNally acknowledged that NagaCorp’s project
Vladivostok.”
end of the day, the Chinese have the highest
timeline is “conditional upon the Primorsky
In fact the plunging ruble, now at record lows
proclivity to gamble of any group and will always
government’s approval of design and building
against the U.S. dollar despite government
find ways to get to the casino.”
plans.” NagaCorp is expecting a favorable
efforts to support the currency by jacking up
To improve Primorye IEZ and Vladivostok’s appeal
judgment from local authorities in the next couple
interest rates, may make Russia a cheaper
to Chinese tourists, governor Miklushevskiy said
of months and it plans to begin development
destination for those holding foreign currency.
that there is a possibility of up to 72-hour visa-
in the summer of 2015.
Gallaway said the tightened visa restrictions
free entry for Chinese tourists into 11 Russian
“We will start phase I, which will be a hotel
for Chinese citizens visiting Macau as part of
airports including the one in Vladivostok.
and gaming facility. This will be followed by
China’s anti-corruption campaign might benefit
Local media added that it would also apply to
additional phases. If we obtain approval for
some markets as “premium gamers shift their
South Korean, Japanese, Singaporean tourists
phase I in a timely basis, we would hope that
activities to lower profile gaming destinations”.
and visitors from a few other Western countries
we might open the first phase in late 2016 or
He also pointed out that “restrictions on visas
if the bill comes through. Nevertheless, the
early 2017,” he said.
tend to impact frequent gamers living in
72-hour visa waiver would be on a condition
However, despite the delays, there is movement.
Guangdong province,” and not the Chinese
that visitors would have to travel with Russian
The Siberian Coin casino in the Altai special
gamblers Vladivostok targets.
carriers. l
Ukraine looks set to legalize casinos to reap extra revenue after a bill was registered on Dec. 22nd. Gambling was banned in the country in 2009. Prior to the ban there were more than 10,000 gambling venues in Ukraine, of which 97.7 percent were slotmachine parlors, 1.6 percent bookmaking office counters and only 0.7 percent casinos.
Asia Gaming Briefings | February 2015
NORTH ASIA 24
GROSS GAMING REVENUE (Source: JP Morgan)
$2.7b $2.9b
Y14E
SOUTH KOREA
The next best thing
Y15E
$3.1b
$3.3b
Y16E
Y17E
$3.8b
Y18E
PARADISE CO. Y14 GGR
+3.8%
CASINO VISITORS South Korea is seen as one of the key beneficiaries of Japan’s stalled plan to open its market to casinos, with the government in Seoul keen to boost tourism through integrated resorts
S
ince last summer, the government
intent on Nov. 16 with Incheon City.
appears to have warmed towards the
Chinese property developer Landing International
idea of IRs in a bid to meet its goal of
Development has also said it was stepping up
doubling inbound tourists by 2017.
its investments in South Korea, with a plan to
Standard Chartered said Seoul is seeking to
buy the owner of the Alpensia Casino at the
expedite the license approval process and is
Holiday Inn Resort in Pyeongchang for HK$868.6
preparing a master plan for IR projects. It hopes
million ($112 million).
to create casino clusters, such as on Yeongjong
The company said there is significant potential at
island, where existing plans are proceeding.
the resort given the planned 2018 Pyeongchang
The foreigner-only casino market has been led
Winter Olympics. It said it plans to help the
by the increase in Chinese outbound travel. Citi
company that currently owns Alpensia to
Research said it expects the overall Chinese
expand the casino business from the existing
inbound traffic to Korea to continue to grow
16 gaming tables to 70 gaming tables. It also
in 2015 at a rate of about 35 percent. Overall
plans to help market the resort to VIP clients.
visitor arrivals gained 16.6 percent in the 11
At present, the casino has 3 Blackjack tables, 9
months to November to 13.1 million, according
Baccarat tables, 1 Tai Sai table, 1 Roulette table,
to government figures.
1 Poker table, 42 slot machines and 1 big wheel.
In the meantime, several multi-million dollar
“The acquisition offers a valuable opportunity
projects are moving ahead. In December, a
for the group to broaden its market share in
consortium made up of the Lippo group and
the casino industry in Korea, and to diversify
Caesars Entertainment said they agreed to buy
its investments from Jeju Island to Gangwon-
plots of land in Incheon, South Korea for $95.9
do Province,” it said in a release to the Hong
million to develop a casino. The plots have a
Kong Stock Exchange.
total area of approximately 89,171 sq. m.
The company already has two projects in Jeju
While in November, local operator Paradise and
Island in the south of the country with units
Japan’s Sega Sammy said they have broken ground
of Malaysia’s Genting. The Jeju Hyatt casino
on a $1.1 billion integrated resort and casino
reopened on Jan 18th.
complex in Yeongjongdo Island, Incheon. The
Citi said the companies’ plans for Resort World
joint venture partnership expects to complete
Jeju received regulatory approval on Nov. 28th,
the foreigner-only property by July 2017.
2014 and include a foreigner-only casino of
Hong Kong-based Chow Tai Fook Enterprises
10,683m2 area, a hotel with 2,038 rooms,
has also expressed an interest in developing a
condominiums with 1,518 rooms, a water park
project on Yeongjongdo and signed a letter of
and theme park. l
Asia Gaming Briefings | February 2015
TOTAL 8.4M 5.7m
2.7m
Locals
Foreigners
Prime Minister Chung Hongwon has urged the country’s parliament to pass 14 pending motions aimed at boosting the economy, including one for promoting the cruise business. The bill, initiated by President Park Geun-hye, would expand ports and marina facilities, provide tax relief for tour operators and provide state support to increase the workforce. The bill would also allow Koreanowned vessels to have foreigneronly casinos. South Korea plans to approve two more foreigner-only casinos and the construction of about 5,000 new hotel rooms as it seeks to boost tourism investment by about 3.5 trillion won ($3.2 billion). The government would choose operators to invest around one trillion won each in two integrated resorts by the second half of this year, part of a three-year plan to boost the economy.
SOUTH ASIA 25
Y14 VISITATION
SRI LANKA
Industry in a tailspin the same time – the $300 million Queensbury
Sri Lanka’s fledgling casino industry is in the balance after the opposition candidate Maithripala Sirisena beat incumbent President Mahinda Rajapaksa in a keenly contested poll, called two years before elections were due
resort developed by Sri Lanka’s Vallibel One group and another $850m project by the local conglomerate John Keells Holdings - are likely to include casinos. The Queensbury is planned
Tourism arrivals 1,527,153
+19.8%
China arrivals 128,166
+136.1%
Tourism target Y16E 2.5m
Sri Lanka’s 2015 budget set out proposals for changes to the Betting and Gaming Levy Act, including a $100 entrance fee for casinos as well as a 10 percent gaming levy on turnover. It would also include a 5 percent tax on the gross collections of casinos.
at a location on the same road as the Crown project while the John Keells project is located elsewhere in Colombo. The John Keells Project has begun construction and was expected to be operational by 2018. In April when the Crown Project came up for parliamentary approval, the Jathika Hela Urumaya (JHU) a hard-line Buddhist party, reneged and did not support it. Now the party has officially left the government and is supporting the
“There is a lot of lobbying by the business sector to invest in casinos, but there has also been an equal push the other way by religious groups and hardliners,” said a gaming expert based in Nepal but working on projects in Sri Lanka.
opposition candidate.
T
The announcement by the opposition that he opposition victory at the elections
incentives for the new projects would be
is expected to send all casino new
withdrawn is seen here as a move to appease
in since they are facing stricter regulations
projects into a tailspin. The opposition
religious groups, such as the JHU that have
elsewhere, especially in East Asia.
manifesto released on December 19 said
opposed casinos.
Sri Lanka appears a lucrative investment, more so
that all tax breaks given to new casino related
“There is a lot of lobbying by the business sector
with the government giving handy concessions
projects, including those granted to James
to invest in casinos, but there has also been an
to large investments. All three projects with
Packer’s Crown Resorts, will be withdrawn.
equal push the other way by religious groups
casinos that got parliamentary approval in April
Adding to the uncertainty, parliamentary
and hardliners,” said a gaming expert based
were given ten year tax concessions. It was the
elections are also likely to be called within the
in Nepal but working on projects in Sri Lanka.
tax holidays that mandated the projects get
first half of 2015.
The interest in Sri Lanka is driven by multiple
parliamentary approval.
There are three multi-million projects that
factors including an increase in tourist arrivals
Former President Rajapaksa told a meeting
include casinos that have been approved by the
since the end of a civil conflict in May 2009, and
with the Foreign Correspondents Association
Sri Lankan parliament in the last year.
the gambling industry’s keen interest to tap
in August that there were no plans to give
By far the most prominent was Crown’s $400
into the lucrative Indian market and Chinese
concessions, or approvals for new casinos.
million investment in a new casino on D R
spenders outside East Asia.
He said the concessions were given for new
Wijewardena Mawatha street in the business
India is the single largest source for Sri Lankan
hotel projects.
heart of the capital, Colombo.
tourist arrivals making up 15 percent of the
The casino operations at the new projects are
The Sri Lankan parliament gave approval for the
total, while Chinese tourist arrivals rose by over
expected to use the two licenses issued to Sri
project without a casino on April 25 this year. The
90 percent between 2012 and 2013 to 54,000.
Lankans.
casino is likely to be set up using a license of a local
India’s swelling middle-class is expected to
The Nepal based expert said that delays in
partner. However the project has faced severe
balloon to 580 million by 2025, with about
setting up the projects and especially those
criticism from hard-line Buddhist parties some
50 million likely to travel overseas by 2020,
faced by the Crown project were unlikely to
of whom were constituents of the government.
compared to just 4 million in 2000, providing
dent investor interest in Sri Lanka.
Despite the approval no progress has been made
huge potential for the Sri Lankan market.
“It still remains a good prospect and people will
on the Crown casino project since. Two other
The Nepal based expert said that gaming groups
wait till the political uncertainty eases before
projects that got the government nod during
were also looking for new countries to invest
they make any decisions.” l
Asia Gaming Briefings | February 2015
NORTH ASIA 26
GROSS GAMING REVENUE (Source: WTTC)
Y13 DIRECT TOURISM CONTRIBUTION $714.6m or 3.9% of total GDP Y14E $785.2m Y24E $1.2b or 4.7% of GDP
NEPAL
New year, brighter prospects Nepal’s lawmakers have stepped up pressure on the Tourism Ministry to take the necessary steps to create an environment to reopen the country’s casinos after a disastrous year for the industry and tourism in 2014
T
The Casino Royale reopened in October, only to be closed again in November following a police raid. The casino had resumed business after getting the go-ahead from the Supreme Court, though tourism officials subsequently said it was operating illegally, adding to the confusion in the industry. Nepal’s newest casino -- The Millionaire’s Club & Casino -planned for Q1, will be a boutique casino with 22 live gaming tables and 40 electronic gaming machines.
he Nepal government shut down the
related accidents. As a result, the government
from the growing Indian and Chinese markets,
country’s casinos for the first time in
in July slashed the annual royalties by 10 million
as well as the growing expatriate community
their history last April after their failure
rupees and is said to be considering further
living in Nepal. It is expected to open its doors
to comply with new regulations that
amendments.
during Q1 2015.
involved a significant hike in fees.
The casinos are now expected to slowly begin
The company said it sees a huge potential in
According to the new rules, casinos were required
reopening their doors, though the timetable is
Nepal given its proximity to both India and
to have a paid-up capital of at least 250 million
unclear. The Casino Royale did open up again
China with their large and growing middle-
rupees ($2.6 million), with the minimum set
in September, only to be closed a few weeks
class consumer bases.
at 150 million rupees for slot parlors, known
later following a raid by police.
“We believe the work we are undertaking
as mini-casinos.
In December, the prospects for Nepal’s casino
in Nepal will help the Nepali government
A new annual license fee, to be paid to the
industry were given a major vote of confidence
achieve their goals by encouraging inbound
tourism ministry, was set at 20 million rupees
by news that Hong Kong-based Silver Heritage
tourism, particularly from India and China,
for casinos and 10 million rupees for mini-
is opening a casino in the Shangri-La Hotel
and stimulating the local and national economy
casinos. Similarly, the annual royalty fee, paid
& Resort in Kathmandu as part of a planned
through our planned phased investment of more
to the inland revenue department, was doubled
$100 million in phased investments in five-
than US$100 million in developing a chain of
to 40 million rupees for casinos and set at 20
star facilities across Nepal.
5 star resort facilities across Nepal,” COO Tim
million rupees for mini-casinos and was made
The new casino, The Millionaire’s Club & Casino
Shepherd said at the time.
payable in advance rather than in arrears.
will be a boutique casino operating under the
The casino project needs to be put forward
The casinos cried foul saying the fees were
new Nepal gaming regulations, and will house
to the Tourism Ministry for final approval,
too high.
22 live gaming tables and 40 electronic gaming
though Tulasi Gautam, director general of the
However, the closure had a severe impact on
machines.
Department of Tourism said the company has
the kingdom’s tourism industry, which was
The casino will be primarily aimed at providing
met all the requirements. l
also reeling from a series of mountaineering
expanded gaming opportunities for customers
Asia Gaming Briefings | February 2015
NORTH ASIA 27
GROSS GAMING REVENUE Delta GGR Y13/14
+59%
Tourism arrivals Y14
+7.1%
Foreign exchange earnings $19.6b
INDIA
Floating casinos to stay
The Deltin Group expects to re-launch its Casino Caravela offshore casino boat in the near future after a year of refurbishing to create a luxury floating resort.
T
+6.6%
An Indian Supreme Court panel in November has cleared senior cricketing figure Narayanaswami Srinivasan of corruption and betting scandals, opening the way for his return as the head of the sport in India. Srinivasan, considered one of the most powerful men in world cricket, was among a list of senior officials probed by a Supreme Court-appointed panel looking into scandals in India’s highly lucrative Premier League in 2013. Gauselmann Group removed its Hindu god Shiva-themed slot gambling game titled “Shiva” after a group of upset Hindus protested, calling it highly inappropriate. The “Shiva” slot gambling machine showed a blue, four-armed Lord Shiva with dark red lips carrying a damru in one hand. Aside from the Lord Shiva symbol, the gambling game also showed symbols of cobras, the Taj Mahal and monkeys.
he ship, to be renamed the Deltin
licenses, but the existing businesses will be
Caravela, will be a five-star hotel. It
permitted to stay as a valuable revenue source.
will join sister ships the Deltin Royale
His comments followed threats by the previous
and the Deltin Jaqk. The Royale was
administration to shut down the casino boats.
re-launched in August last year, giving the
Meanwhile Deltin opened its integrated resort
company 2,000 gaming positions at the time.
in Daman in March last year. The property is
“The ship can be operated either in North or
spread over 10-acres with 176-rooms, over
South Goa depending on the availability for
60,000 sq.ft. of gaming space and over 29,000
mooring. We have identified Britona (North Goa)
sq.ft.of indoor event (MICE) space.
as one of the places for mooring the ship, but
The group has obtained five-star accreditation
of several Provisional Licence holders, Indian
nothing has been finalized,” Deltin chairman
from the Ministry of Tourism, which is one of the
lottery giant Future Gaming Solutions (FGS).
Jaydev Mody said, referring to a possible location
final requirements needed ahead of acquiring a
The license will be valid only in Sikkim, one of
for the Caravela.
land-based casino license in Daman.
the smallest and least populated states in India
The hotel will have 15 suites, a spa and restaurant
In the online space the small, north-eastern
with about 600,000 inhabitants, and services
and will also have a small casino onboard. The
Indian state of Sikkim in October awarded
cannot be offered outside of the state’s borders.
company is in the process of getting approvals
its first remote gaming license. After almost
However, it’s seen as an important milestone,
from the government for operating the ship,
seven years of waiting for clarification from
even though many questions remain.
Mody said.
the central government, the Himalayan state
Experts said it’s within the realm of possibility
Goa Chief Minister Laxmikant Parsekar recently
finally granted the first regular license to start
that other states in India will follow Sikkim’s
said that the state won’t allow new casino
online gaming operations on Indian soil to one
example. l
Asia Gaming Briefings | February 2015
SPECIAL FOCUS 28
Russia, China and mobile winning hands for 2015 As a serial entrepreneur in the gaming industry for more than 28 years, John has had a lengthy career specializing in global business development for the regulated gaming industry. Given his expertise in account wagering, mobile betting, IPTV, and most forms of gaming technology and content provision, as well as experience in Asia, U.S.A., Latin America, and the Caribbean, AGB asked John for his predictions for the year ahead, and got a wide-ranging and fascinating reply
H John J. English*
ere is what this veteran gaming executive
operations and expect to receive licenses through the
foresees for 2015.
form of partnering with a resident of the region. With Japan off the table for a while it is expected that eyes will
Cyber Security:
turn to Russia for expansion both for casino developers
This will definitely be a topic of large concern as we
and online operators. This change in the law could prove
move forward to the information-is-easy era. We have
to be a boom situation and hopefully the economy and
witnessed firsthand with the recent hacking of Sony
ruble will hold up to the large investments that will likely
Pictures which proved that not even the biggest of the big
be made given the names joining the race. Also we have
are safe from cyber terrorism. Target, Home Depot, and
to keep in mind what happened in 2009 under the same
Sheldon Adelson ‘s Venetian are all victims. Hackers have
watch. Knowing that these large operators have teams
made it clear that nobody’s data is completely safe and
of analysts, legal advisors, and lobbyists you would have
in some cases dangerously vulnerable. For this reason I
to assume they have done their homework and assessed
expect to see a large rise in the visibility of cyber security
their risk appropriately. We will see all the usual suspects
companies with new and updated software and hardware
line up for licensing and the vendors will be ready to
solutions. Land Based and online gaming companies face
provide new technologies, and with that I am sure we
an ominous issue: They can’t scale fast enough to meet
will be hearing a lot about Russia this year.
growing threats. They can’t easily hire enough people or buy enough technology to be totally secure – usually they will
Chinese Lottery:
need outside help. The stage is not yet set for companies
Last year was an amazing year for the Chinese Lottery,
taking new approaches to this issue. The ramifications of
the operators, and the vendors. The significant growth
these security breaches are getting worse by the hour, and
in both the sports lottery and the welfare lottery were
in some cases are detrimental. A couple of decades ago,
astounding and growing as I write this article. Obviously
a breach was mostly an operational problem that would
having a World Cup year never hurts but numbers have
cost you time and money. Today, it is a huge strategic
remained consistently on the rise. The addition of new
issue that could virtually destroy your business, customer
games, new technology, and a growing player base has
trust, and put your valued subscribers’ finances at risk.
made the Chinese Lottery the one to watch in 2015. The big suppliers and resellers are reaping the rewards and
The Race to Russia:
companies like China LotSynergy, AGTech, and 500.
I can still vividly remember the closing of casinos dotting
com have all seen benefits from the continued growth.
Moscow’s streets in the summer of 2009 when the
Recent technology advancements allow operators to offer
Russian government abruptly put a halt to gambling.
sports and welfare lottery on your mobile Smartphone
Well here we go again! The Race to Russia is on and at full
or computer, however government approvals have been
speed it appears. Casino mogul Lawrence Ho has made
very limited to only two test studies. One such study is
a commitment to build a casino site. So far Russia has
with 500.com and their ability to offer sports lottery and
designated Sochi’s Olympic site and the annexed Crimean
incentives online allowing for ease and convenience to the
peninsula as gambling areas in a bid to boost investment
customer and giving a boost to ticket sales. Approved by
developer, and distributor of
and tourism. By law casinos are restricted to four special
the Chinese Ministry of Finance this model is proving to
sports betting, social, casino, and
areas in Russia, all pretty far away from Moscow.
be very successful and if the government deems that long
lottery products for the regulated
In short order the likes of William Hill, Betfair, Ladbrokes
term this is a viable method of offering content safely and
gaming industry, and an AGB
and others have made their way to Russia, though the
responsibly we can expect to see others join the party.
latter has recently exited the country. These savvy
Operators of land-based locations are also expanding
operators are looking to capitalize on online gaming
and even smaller groups are emerging as either IPO or
*John J. English is president of WEBE Gaming, a global operator,
Advisor.
Asia Gaming Briefings | February 2015
SPECIAL FOCUS 29 acquisition targets. Look for a lot of creativity
the technology. Adding to the excitement for
you definitely want to visit in 2015. Saipan,
in some of the smaller and younger operators
mobile developers is the addition of some
Incheon, Cambodia, Vietnam, and Taiwan
as they work toward offering their own online
great distribution channels like WhatsApp,
also all merit a mention. For all the reasons
ventures in the future. Groups like Happy
Viber, WeChat, as outlets for social gaming
mentioned above, this is the region to watch.
Color and HaHa Lotto are taking advantage of
environments. Companies like Caesars Interactive
technology and are utilizing it to compete with
Entertainment and Playtika as well as many
US Online Gaming:
larger conglomerates. Embracing technology
others have launched their social platform
Online gaming in the United States has been a
like mobile apps, IPTV, and social gaming
across these mobile platforms to great success
trending topic for years now and guess what,
content will make David a Goliath. Licensing or
and growing. Don’t take your eyes off mobile;
it never gets old. After a mediocre start on a
approving these smaller lottery shop operators
most likely it will be impossible to avoid it.
state-by-state offering in Delaware, Nevada,
and arming them with potential online licenses
and New Jersey the hype is settling down and New Asia Model:
realities of critical mass and lack of liquidity
Reports over the last few months are talking
in a limited population base became apparent
Mobile, Mobile, & Mobile:
about the slump in GGR in Macau and how its
in 2014. So what’s happening that’s keeping
Did I mention mobile? Ok so granted mobile
ratings are being cut far below projections.
it on the radar? California for one, New York
has been on my hot list for years but I just
Personally I think Macau has its challenges,
for another, and Washington for kicks. In
can’t get enough and my obsession with my
most recently President Xi’s crackdown on
light of not having a federal bill allowing for
electronic leash has me writing about it again. I
corruption, has been putting a big damper on
nationwide online gaming, states took up their
recently bought my new iPhone 6plus and I am
the junket and high roller rooms and hence
own battle with Delaware offering online gaming,
wondering why I need my laptop anymore? The
the overall performance of the Macau casino
Nevada offering poker and sports betting, and
new technology in smart phone applications is
industry. Macau is not going anywhere anytime
New Jersey offering full casino and no sports
through the roof, your phone could soon control
soon and in fact is just settling in on its first
betting. Although they have leveled off and the
your life, it does mine. Bigger screens, better
real major setback. Mega casinos realize it’s
results are more in line with reality based on
resolution, faster processors, have made super
time to reinvent the junket model and how
the population the future still looks promising.
cool technologies like virtual reality (VR) and
credit is issued, and I can assure you that with
If the federal government never chooses to
Augmented Reality (AR) well… a real world
billions on the line that there are the smartest
regulate gaming and it needs to be a state-
reality! Using hi tech programs like VR and AR
people on earth in a room somewhere in Wynn,
by-state movement the sharing of liquidity
is all the rave at game studios worldwide and
Galaxy, or Venetian surviving on pizza and Red
between states could help alleviate the critical
expect to see it on the gaming floor and right
Bull until the model is modified and it works,
mass issues. Now throw California and its 38
on your mobile phone this year. Having been in
within the law, and to the satisfaction of Beijing.
million people, add New York’s 19 million
the gaming industry for over a quarter century I
Meanwhile, Manila is booming with cranes on
people and Washington’s 7 million and now
feel like a kid all over again when working with
the waterfront and their Entertainment City is
it’s working and worthy and the rush will be
this medium on mobile and I can say it takes
coming to life with mega resorts like Solaire,
on once again. California has sharp and open-
the game to a whole new level.
Manila Bay Resorts, and City of Dreams which
minded regulators but has some issues to be
Innovations in mobile gaming will hit all time
includes big names like Crown and Nobu, and
settled between racetracks, card rooms, and
highs this year with submersive new content
even tying back to the tech I described earlier,
tribal casino operators and how they all work
both in real money gaming and especially in
a Dreamworks Animation play center called
harmoniously together. There is another new
social gaming environments where the user
Dreamplay. The resorts are world class and
bill on the table so I expect a lot of activity this
experience and engagement could really utilize
with the new offerings coming on line soon
year on the US Online front. l
will certainly be something exciting to watch.
Asia Gaming Briefings | February 2015
SPECIAL FOCUS 30
As 2015 kicks off to a flying start, AGB asked some of our most esteemed advisors and friends for their top three predictions for the year ahead. Some common themes emerged, even if opinions differ, such as the future for Macau, Japan, the Philippines and Vietnam, but the advisors also took macro-themes into consideration when making their forecasts. See if you agree with our experts about what might lie ahead for the Asian market, and for the gaming industry as a whole in 2015.
Y15: Year of mass 1.
2.
Vietnam gets its act together, adopts a
back and witnessed phenomenal growth in
gaming regulatory framework, and starts to
Macau as a result of casino gaming. Therefore,
attract attention from casino developers. With
I believe that it may be possible to see a change
casinos, in the context
Crowne Danang leading the market, and news of
in attitude where the China government may
of allowing integrated
a potential mega resort to be developed in Hoi
look to capitalize on the opportunity and open
resort developments.
An by a joint venture which includes the Chow
a second gaming zone either in the North or
Social safeguards, and the
Tai Fook group, Vietnam could be the next hot
possibly on Hainan Island so they may benefit
treatment of existing pachinko and pachislot
spot and a real alternative to Macau. Similar
more from the tax revenues generated from
operations remain key issues to be resolved,
flying times, familiar culture and a super low-
casinos. The pie is huge, so carving out another
but the in-principle decision to legalize will
cost operating environment, are the dynamics
slice will not cripple Macau but may segment
be made.
that have proven to be effective in attracting
the business into two areas. The same thing
The Philippines and Vietnam will both be
junkets to its markets. All it requires is for the
happened in the United States starting with
beneficiaries of the migration of junket
government to finalize its gaming decree, and
Las Vegas, but with continuing growth there
business to jurisdictions out of the direct
the VIP business model would not even require
are now over 1,000 casinos spread across North
purview and influence of China’s anti-corruption
them to grant access to the local market.
America. The same is true of Europe where there
After an incredibly long gestation pe-
riod, Japan will legalize
David Green*
2.
crackdown. This unanticipated externality may give their respective casino industries a shortterm boost, at the expense of jurisdictions such as Singapore, Macau and Australia.
3.
3.
Japan once again gets everybody’s hopes up only to dash them before the end of
the year. T he governors of two prefectures that were previously leading the way in seeking IRs to
are now over 1,000 casinos. So why not China?
2.
Many land-based casino operators do not view online gaming as a threat, but with the
advent of new technology, high speed broadband
With no major new property openings in
boost their local economy (Okinawa and Tokyo)
Internet and new live dealer opportunities,
Macau since April 2012 (Cotai Central),
have now switched their stance, which has got
online casino gaming will grow in popularity in
this year should provide guidance as to the
to be seen as an indicator of the emergence of
jurisdictions where it is legal or allowed. Online
likely impact of the pipeline of new openings
anti-casino sentiments.
casinos do not have the same high overheads
scheduled on Cotai over the next two years, with
Prime Minister Shinzo Abe has been returned
as land-based casino operations and therefore
both Galaxy Phase 2 and Studio City expected to
albeit with a slightly reduced mandate and is still
will be able to operate more efficiently, allowing
open. Don’t expect a “Sands effect,” but there
obsessed with the constitutional amendment
them to be more competitive. They will never
should be a strong positive impact on tourist
he has been trying to push through as part
replace the experience of gaming in a real casino
spend, length of stay and on GGR associated
of his father’s and his own legacy. With his
but the convenience factor combined with new
with those openings.
second priority, the economy now technically
technologies will make them more appealing
in recession and requiring intensive care, it
to players, which will allow them to gain more
Macau stages a minor
would be difficult to see Abe using his political
and more market-share as well as a “share of
recovery in May 2015,
credits to push through a contentious issue such
wallet” from existing players.
led by the opening of
as gaming, when he needs all the leverage he
Galaxy’s Phase 2,
can muster for his two long standing priorities.
1.
w ith the mass growth
3.
A casino is a casino is a casino. A Baccarat hand is a Baccarat hand is a Baccarat hand.
So what really influences a player’s decision as
exposed for what it is ie.
Many of us casino executives
to which casino to visit? Aside from the normal
VIP players hiding in plain
are old enough to remember
list of convenience, casino credit, betting limits,
sight. The performance of the real mass market
the lyrics of Bob Dylan’s
customer service, etc. I predict that more and
can be seen in the year-on-year decline despite
famous song titled “The
more casinos will begin to focus upon creating
ever increasing record visitation numbers.
Times They Are A-Changin.”
“unique experiences” for their players to help
Nothing could be more true
differentiate themselves and become more
today than relating that to
competitive in an already crowded market of
Ben Lee**
With the VIP segment adversely affected by
Stephen Karoul***
both the anti corruption drive and a dearth of capital as a result of the Huang Shan scam
the casino industry. I don’t have a crystal ball
in April, Galaxy’s opening this year will once
but my gut feeling tells me that we can expect
again stimulate the market as it did w hen they
to see some industry-wide changes that will
opened Galaxy Cotai. A fresh round of liquidity
begin in 2015 but also continue into the future.
*Principal, Newpage Consulting
1.
***President & CEO, Euro-Asia Consulting
in the form of new credit facilities on the back of a new Chinese-focused property should see the start of a minor recovery in mid 2015.
Asia Gaming Briefings | February 2015
China’s economy is slowing down just like the rest of the world. Its leaders sat
casinos. l
**Managing Partner, iGamiX Management & Consulting
SPECIAL FOCUS 32
Horse racing industry struggles against online challengers Online betting exchanges CITIbet and AA-Star have come to the attention of racing authorities across the region, which see them as a threat to racing integrity and a drain on betting turnover
T
he secretary general of the Asian Racing
the low margin operations do not pay licensing fees to
Federation (ARF), Andrew Harding, hasn’t
racing bodies.
given up on reaping a financial return to horse
The ARF is the over-arching association chartered with
racing from the so-called “Asian betting
protecting the interests of racing in the Asia region,
exchanges,” but admits it will require a long-term and
including Australia and South Africa. Harding says
systematic approach.
wagering operators should pay to field on racing, wherever
The exchanges are licensed in the Philippines’ special
they are based.
economic zone known as the First Cagayan, which critics
“It’s about gaining recognition of the fact that racing’s
have labeled a “Wild West” of offshore wagering. But
business model is built upon a reasonable rate of return
defenders of the operations within the special economic
from wagering to the sport. If that is broken and you are
zone say that racing jurisdictions are to blame for having
left with what we call the “Free rider phenomenon” - that
take out rates that are uncompetitive with the online
is, wagering operators using racing without contributing
operations.
to its costs. When this happens it is a case of market
Citibet and AA-Star are similar in nature to legalized
failure and if there is nothing done to address that then
betting exchange Betfair in that they allow customers
you end up with under-supply in economic terms and
to match bets and therefore bet on individual horses to
the industry cannot be viable in the long term. The sport
lose. The primary concern for authorities, other than a
will be limited in its growth or go into decline.”
drain on turnover, is that, unlike Betfair, the exchanges
Harding says recent legislation dealing with online betting
do not work with authorities and provide account
in Australia and Singapore has provided an example on
information for use in inquiries, making them a clear
how to gain a return from the exchanges.
threat to racing’s integrity.
The head of a leading Asian bookmaker presented a slightly
A lack of transparency means the total amount wagered
different take on the issue. While agreeing in principle
on the exchanges - which also hold bets on financial
that “betting on a horse to lose is an unacceptable and
markets - is difficult to calculate, but judging from the
damaging proposition”, he said that totalisator operators,
numbers displayed on websites and expert opinion, the
especially a monopoly operation like the Hong Kong Jockey
turnover on racing far exceeds that of Betfair and is equal
Club, only have themselves to blame for the pirated use
to, or more than, the legal totalisator pools in Hong Kong
of its product.
and Singapore. The Hong Kong Jockey Club last season
“The HKJC tote model doesn’t represent ‘Value’ to the
boasted a record betting handle of more than HK$100
Asian Punter – the take out rates are too high and this
billion and is on target to exceed that again this season.
in itself helps to create an alternative market,” he said.
The exchanges use starting odds, race field information
“The HKJC is a premium product – but they should
and television pictures without permission from race clubs
allow international operators to contract with them,
and, unlike Betfair and other more regulated exchanges,
integrate into their pools such that HKJC increase their
Asia Gaming Briefings | February 2015
SPECIAL FOCUS 33
global reach. The bets taken would add value
future, saying if similar legislation was adopted
racing with the smaller betting pools of Macau
to their pools, improve liquidity and therefore
elsewhere it could provide further leverage to
and Malaysia particularly prone to late “bet
reduce volatility.”
the sport.
backs”, with bookmakers managing liability
Chris Eaton a sports betting expert from the
Matt Pollins is a sports gaming law expert and
by “laying off” large bets or manipulating
International Centre for Sport Security is outspoken
associate at Olswang Lawyers in Singapore and
tote prices.
in his criticism of what he says is the low level
says the Remote Gambling Act is less “grey”
Racing officials across Asia have taken to closely
of scrutiny placed on the First Cagayan-based
than the anti-offshore gambling laws in other
monitoring the sites for suspicious activity. The
operations, and called for governments around
Asian jurisdictions.
exchanges are also extending their reach into
the world to unite in holding them to account.
“Even though the law hasn’t come into effect
America, although there the main problems
Eaton also pointed to the fact the exchanges are
the a lot of the sites have shut down Singapore-
are major price manipulation in harness racing
now operating on financial markets and have
based accounts,” Pollins said. “It now stands
and greyhound racing, which the exchanges
“all the hallmarks of criminal organizations:
out as a jurisdiction where it is clear that you
also offer bets on.
a lack of transparency, and structures clearly
can’t take bets from when a lot of countries it is
J. Curtis Linnell is the Vice President of operations
designed to maintain anonymity and secrecy.”
quite grey. In terms of its international reach,
and wagering analysis at the Thoroughbred Racing
“It’s the wild west and out of control,” Eaton
the law is deliberately territorial - which means
Protection Bureau, and says his organization has
said “These operations are turning over billions
if I am based in the UK and operating a site that
been aware of what is termed “price steaming”
weekly and governments are not pursuing them,
takes bets from Singapore, I am committing an
for the past two years.
and no one even knows who owns them - this
offence in Singapore, which means I could be
is outlandish. Pressure should be applied to the
extradited to face charges there.”
exchanges, and have a followed their infamous
Philippines government to do something about
Harding suggested the best chance of eventually
exploits,” Linnell said. “We have seen some
it. They need to be made open up and be made
bringing the exchanges into line in the short
effect, starting about two years ago, with some
transparent. Clearly a joint government effort
term was the Philippines authorities seeing
steam betting on some lightly handled tracks.
is required, perhaps even with United Nations
other jurisdictions receiving a bigger financial
Tracing that steam betting back through accounts,
supervision. The agent-based structures of
return, and asking for the same.
it seemed to trace back to South East Asia, and
these operations are ready made for abuse by
The biggest holds on CITIbet and AA-Star are on
in particular Malaysia. The first instance there
criminals and money launderers.”
Hong Kong racing, and the movements on the
was some very large wagering. The individuals
Harding, in his role as the former head of the
exchanges are thought to be the main catalyst
probably over bet what they needed to - but
Australian Racing Board, was also at the forefront
for late tote fluctuations, or “price stomping”
since then we have seen about 50 or 70 races
of the court battle to force Australian bookmakers
as it is known.
in total affected.
to pay fees to field on racing. Harding said the
Although there is some conjecture over how
“I am trying to get to the actual licence holders
High Court ruling there, which determined that
much the exchanges affect the Hong Kong Jockey
- CItibet, AA-Star - that would be the practical
operators like Betfair would have to deliver a
Club’s escalating year-on-year turnover, the
way to do it, because we want to be in touch
return based on turnover to racing for use of
late price movements have become a headache
where there is liquidity on our events. We haven’t
information, created a precedent that could be
for the club.
been able to, which leads one to suspect that
adopted elsewhere.
Price movements in other Asian racing
there is a lack of transparency - and that’s not
Harding also pointed to Singapore’s recently
jurisdictions are also a major issue, making
a good thing.” l
passed Remote Gambling Act as a hope for the
overseas betting operators cautious of fielding on
“We had heard about the Filipino-based
Asia Gaming Briefings | February 2015
AUSTRALASIA 34
AUSTRALIA
Build and they will come The Aquis project will be located on a 40
Australia’s casino industry attracted billions in potential new investments in 2014 as companies competed for new licenses in Queensland and revamped properties elsewhere, but their success is likely to hinge on attracting Asian high rollers
hectare ‘island,’ surrounded by a 33 hectare
CASINO GAMING REVENUE (Source: Citi Research)
Y14E A$4.4b Y15E A$4.6b
+5.7%
MARKET SHARE AS OF JAN. (Source: Queensland Treasury)
artificial lake. Key features include 7,500 hotel rooms across eight separate luxury hotels; a 23,000sqm convention and exhibition centre; entertainment facilities including two casinos, two theatres, an indigenous cultural centre and a large aquarium. Meanwhile, China-based ASF Consortium is planning a $7.5 billion Gold Coast development. The IR will have 2,885 hotel rooms spread across six hotels, including a six-star property. It will feature more than 20 restaurants, four night clubs and an eco Marine Park. ASF said it expects 1.9 million tourist arrivals a
TOTAL GAMING $17.4b (INCLUDING POKIES AND LOTTERY) CASINOS $4.11b
year on completion with the creation of 15,200
RACING $2.7b
long-term permanent jobs.
SPORTS BETTING Y12/13 $484.78m
The size and scale of the Queensland resorts has raised eyebrows in some quarters, with question marks over whether or not the projects will be viable given their expected heavy reliance on
Q
inbound tourists, especially given the downturn
Crown Resorts and BetEasy have confirmed their plans for a joint venture, combining BetEasy’s sports book business with the sports book business of Crown’s Betfair unit. The venture will be 67 percent owned by Crown and 33 percent by BetEasy’s owners. BetEasy recently beat out larger bookmakers in Australia to win the rights to be the exclusive wagering partner of the Australian Football League for the next five years. It has signed more than 110,000 new registered customers in fiscal 2015 to date.
ueensland is set to decide early
in the China VIP market and weakness in the
this year on who will win a license
local economies.
to redevelop the Queen’s Wharf in
However, Citi Research in its outlook for the
central Brisbane, while two other
year said Australia’s casinos may benefit from
regional licenses are edging through the
the crackdown on corruption on mainland
regulatory process.
China as VIPs seek to avoid the scrutiny of
All of the groups involve Asian investors and
being close to home.
are expected to rely heavily on the capacity to
Citi Research predicts that gross gambling
bring in Chinese tourists.
revenue will rise 5.7 percent in 2015 to A$4.6
Initially there were four bidders for the Brisbane
billion, in large part driven by the VIP sector.
site; James Packer’s Crown Resorts, incumbent
It says VIP revenue is likely to rise 7.6 percent
operator Echo Entertainment; China property
to A$1.33 billion this year, though most of the
developer Greenland and a consortium made
growth is likely to be in the first half of the year.
up of Hong Kong’s Chow Tai Fook and Far East
“VIP is central to the stronger performance as
Consortium.
Australia benefits as an alternate destination
A few months into the process and that was
from Macau for VIP gamblers. Mass gaming
whittled down to two, with Crown teaming
growth is also expected to accelerate as large
with Greenland and Echo joining forces with
domestic gaming markets in Sydney and
other properties around the country have also
Chow Tai Fook.
Queensland benefit from stronger household
undergone multi-million dollar face lifts.
Among the regional licenses, Aquis plans an
incomes,” it said in its outlook for 2015.
Crown Resorts’ casino will be a six-star VIP
$8.15 billion ($6.7 billion) resort at Yorkey’s Knob
At present, Australia’s casinos make up just
only resort.
near Cairns, which would be one of the most
3 percent of the Asian VIP market, Citi says.
“Crown Sydney will help bring international
expensive tourism developments in the world.
Though much of the action was focused on
and domestic tourists to Sydney, create over
In December, that project moved a step forward
Queensland, Sydney is also scheduled to get
1,200 jobs and generate significant economic
after winning approval from environmental
a second casino after Crown Resorts paid
benefits for New South Wales,” CEO Rowen
regulators.
$100 million for a license in July, while many
Craigie said at the time. l
Asia Gaming Briefings | February 2015
AUSTRALASIA 35
VISITATION
PACIFIC ISLES
CNMI under the spotlight The casino industry on the Commonwealth of Northern Mariana Islands heated up in 2014, attracting pledges of multi-billion dollar projects, though some analysts express doubts as to whether the islands can support such large-scale investment
A
Nov14 total arrivals
+16%
Korea arrivals 16,277
+31%
China arrivals 13,874
+44%
U.S. Citizenship and Immigration Services denied a petition from Tinian Dynasty to allow its migrant workers to stay because of alleged illegal activities by the casino operator. “This flagrant use by an employer of a USCIS program to facilitate a pattern of law-breaking supports discretionary denials of further petitions filed by your business even if the petitions were otherwise approvable, which for reasons stated above in detail, they are not,” the decision read. The island’s gaming regulator says it doesn’t expect the casino to close as a result.
unit of Hong Kong-listed Imperial
“I don’t think anyone believes that a seven
Pacific won the bidding for a license
billion [dollar] investment would make sense
to build the first casino on the island
in a place like Saipan. It’s unclear what type
of Saipan. The company has since
of revenue they would be able to generate
more than doubled its proposed investment
and returns on investment [achieved],” one
to $7.1 billion.
analyst said.
The company was granted the 25-year license
Imperial Pacific also recently said it was getting
to build and operate a casino on the Northern
less revenue than it had anticipated from its
Marianas island in August, with an option to
investment in Hengsheng as the VIP market
extend for a further 15 years. It plans 4,200
has dried up.
hotel rooms and 1,600 gaming tables.
The company said the actual profit stream received
However, some industry insiders remain
from its investment in the Hengsheng Group
skeptical about the project.
was HK$10.73 million ($1.38 million). That’s
“Imperial will get their junket room that they
less than half of the $24 million guaranteed
can fly VIPs to. The government gets money so
under the original agreement.
they can pay their people the back-wages that
As such the vendor will make up the shortfall.
they owe. But they’re not going to invest US$7.1
Convertible notes have been deposited with
billion,” one insider was cited as saying in local
Imperial Pacific as a guarantee for the payment.
media. “They’re going to say ‘Oh, the situation has
With Imperial Pacific’s Best Sunshine International
changed’… and it will drag on for 20 or 25 years.”
Group owning the monopoly on Saipan, investor
Imperial Pacific, which is also an investor in
interest has turned to neighbouring Tinian,
Macau’s Hengsheng group, said it planned to
which has also attracted multi-billion dollar bids.
finance the project through equity and or debt
Bridge Investment Group is planning to build
financing, but, except for unsecured borrowings
a $130 million, 300-room casino hotel by
of HK$220 million, “has not yet formulated any
the Tinian harbor and Mega Stars Overseas
concrete fund-raising plan.”
is planning to develop an integrated resort
The company said it would pay $20 million within
on Puntan Kastiyu -- another multi-million
60 days of starting construction on its first hotel,
dollar project targeted at China’s high rollers.
and recently bought 155 hectares of public lands
which is due to begin early next year, and $20
Then there’s Shanghai-based Saipan Jinghua
for the development.
million a year after the first full year of operation
Investments Ltd. which aims to develop a $4
The islands’ relative proximity to China, natural
of the first hotel, scheduled to open in 2016.
billion integrated resort on 300 hectares of
beauty and U.S. regulatory environment are all
However, gaming analysts are concerned about
public land located at Pina Plateau on Tinian.
seen as draws for investors, Maggie Ralbovsky,
how the company plans to make it financially
While Alter City Group plans to invest $360
managing director with investment consultant
viable in a location that is quite distant from
million and is ready to begin construction
Wilshire Associates says.
mainland gamblers. Although closer than
following compliance with regulatory agencies.
“Whether the trend continues in the next five
destinations in Australia, Saipan is still a five-
The developer will tap $120 million in working
years will depend on the experience of the first
hour flight from Shanghai.
capital for the initial phase of the construction
group of investors,” she adds. l
Chinese Strategic Holdings says its Tinian Realty International unit is in talks with a Nasdaqlisted operator with operations in Macau over a hotel-casino project on the island of Tinian in the Commonwealth of Northern Mariana Islands. “The parties have been in active negotiations on the key structural framework of the possible engagement,” Chinese Strategic Holdings said in a Hong Kong regulatory filing.
Asia Gaming Briefings | February 2015
SUPPLIER SPECIAL REPORT 36
ICE TOTALLY GAMING
‘Unmissable’ ICE In 2014 ICE secured an independently audited 23,506 attendees who traveled to the ExCeL Centre from a record 156 nations to see the 515 exhibitors who chose the London show as their international shop window
T
Asia Gaming Briefings | February 2015
hanks to the imagination and creativity
taking place at what has become the world’s
that ICE exhibitors apply to their
unmissable gaming exhibition.
presentations, ICE has become an
The ICE 2015 conference program comprises a
adventure where gaming professionals
voyage through eight high-level, targeted events
and entrepreneurs discover new suppliers,
that cover all of gaming’s vertical markets,
discover ground breaking technologies and
including the International Casino Conference,
discover those landmark products which have
World Regulatory Briefing, BetMarkets and
the potential to transform the way the industry
Lotteries for the Future.
does business.
Other events include the Digital Think Tank -
The new dedicated ICE app. will allow visitors
a free-to-attend seminar theatre that features
to access the show’s full event schedule,
product demonstrations, tutorials and master
browse the latest product launches and receive
classes from some of the most respected thought
information on all of the ICE Conference and
leaders within the gaming industry. A total of 15
Seminar speakers. It also features a personal
exhibitors will be holding 30-minute thought
event planner, an interactive floor plan to
leadership discussions and presentations.
help delegates navigate the 60,000+ square
The International Masters of Gaming Law will
meters of floor space, and a social feed that
hold its Masterclass on Wednesday, February
allows visitors to post updates and comments,
4, where key regulatory stakeholders will share
share photos, and earn points and badges for
knowledge on current industry updates.
participating.
Tribal Gaming will also be in the spotlight, as
Although ICE is primarily about seeing the
will a study by Atlantic Lottery Corporation into
most powerful and smartest innovators in
what the lottery and gaming industry might
gaming - all under the same roof, there’s an
look like in 2030, and how a gaming company
awful lot more to the event. There will also be
might respond to remain relevant.
meetings, conferences, seminars and out of
ICE Totally Gaming - leading the way in innovation
hours networking and hospitality activities
and future strategy. l
37
Asia Gaming Briefings | February 2015
SUPPLIER SPECIAL REPORT 38
SCIENTIFIC GAMES
Brave new games Scientific Games' string of acquisitions promises a future of cost-saving strategies, but how will the conglomerate be able to cultivate a cohesive organizational culture and allow the multiple brands to achieve long-term organic growth Gavin Isaacs shares his vision
S
cientific Games completed one of the
calendar 2016. The company also increases its
Scientific Games takes pride in being one of
most significant industry mergers last
target of annual cost synergies from the WMS
the top market players, particularly in the
year – acquiring Bally Technologies at US$5.1
acquisition to US$115 million by the end of
lottery industry. In the United States, the
billion. This followed the acquisition of WMS
calendar 2015.
company has a market presence in 40 out of
Industries at US$1.5 billion in 2013.
Notwithstanding this promising future from a
44 jurisdictions where lotteries are legal.
With the consolidation of WMS, Bally,
cost-saving perspective, the question remains
The company is also eyeing opportunities in
SHFL and Scientific Games, the company
as to whether Scientific Games will be able to
Asia. “Asia has been a high-growth market
has become the industry’s most diversified
cultivate a cohesive organizational culture and
as the market is always underpenetrated,”
supplier, serving lotteries, casinos, and
bring the multiple brands together to achieve
Isaacs notes.
gaming operators across the world.
long-term organic growth.
In Asia, Scientific Games has a strong market
“Scientific Games has transformed itself into
Isaacs, who has more than 15 years of
presence with contracts signed with operators
one of the largest suppliers with the best
leadership experience in the gaming industry,
in Australia, New Zealand, and China among
products, services and facilities in the gaming
was named chief executive officer last year.
others. Last year the company also signed a
industry,” says Gavin Isaacs, president and
Given his extensive past experience as chief
new contract to provide instant games for the
chief executive officer of Scientific Games.
executive officer of SHFL and as executive vice
Taiwan Lottery.
At the upcoming ICE show, Scientific Games
president and chief operating officer of Bally
Scientific Games has also noticed the potential
will exhibit together with Bally Technologies
Technologies, he sees common ground to
in China. As early as 2007, the joint venture
for the first time since the acquisition was
nurture an inclusive, creative, and productive
of Scientific Games and Chinese technology
completed.
organizational culture across the subsidiaries.
company, Inspur, launched instant tickets in
Isaacs says that the company’s “new global
“The transformation starts with leadership
Shandong Province.
organization is unmatched, bringing together
from the top,” says Isaacs. “We reinforce
According to the Xinhua news agency, sales
under one roof the powerful Bally, WMS,
principles that are sensible, create an open
of China’s Welfare Lottery alone, the bigger
Shuffle Master, SG Gaming, Williams, and
workplace without office politics, and
of the two official lotteries, increased 16.67
Barcrest brands, and a suite of products
encourage innovation that will shape future
percent in 2014 to RMB 205.96 billion (US$33.6
and services that address casino operators’
industry trends. We pick the best practices
billion). Other trends such as online lottery
diverse needs across their land-based and
from each company that has joined the
are emerging and the online gambling market
interactive channels.”
Scientific Games family to create even greater
is on the rise.
“We not only diversify our product portfolio
value for our customers.”
To prepare for this brave new world of gaming
by bringing these exceptional brands together,
While the transformation of Scientific Games
in Asia and globally, Isaacs says the company
but also save duplicate costs so that we can
is underway, Isaacs acknowledges that the
will focus on innovation, superior execution,
reinvest in innovation,” he adds.
industry is undergoing some vast changes.
and a client-centric approach.
The integration process is well underway
He notes: “Since the world economic crisis in
Asked about his forecast for the year ahead,
and on track, according to Isaacs. His view
2007, people have been reprioritizing the way
Isaacs says: “As the gaming industry rapidly
is in line with a report released by brokerage
they deal with their income. And the evolving
consolidates, Scientific Games will launch
firm Wells Fargo Securities early this month,
technology landscape continues to transform
some groundbreaking innovations with scale
saying that Scientific Games “is already
players’ gaming experiences.”
which will be better than ever.”
making progress with its synergy program”.
“There are constant needs to innovate new
As the saying goes, the bigger the better. That
The report cites Scientific Games’ Q3 2014
products and provide greater entertainment
may not always be the case but, for a company
announcement that the company targets
as we compete with many other forms of
with a 40-year legacy, there is very good
annual cost synergies ranging from US$220
leisure activities for the consumer spend,”
reason to be positive. l
million to US$235 million by the end of
he adds.
Asia Gaming Briefings | February 2015
SUPPLIER SPECIAL REPORT 40
MICROGAMING
Online guru goes mobile “T
As one of the earliest online casino software providers, Microgaming developed and launched its very first online casino software in 1994. With more than 20 years’ gaming experience the online guru has placed its bet on mobile and other digital channels as the next big thing in the gaming industry.
echnology has to be the biggest trend
“There was no real-money casino app in the
for 2015 for both desktop and mobile”.
– it has been and will continue to be
Windows Phone Store to specifically target
This will include a branded content game
the driving force of our industry,” says Neill
the Windows Phone players. We saw a gap
in the summer, having signed a licensing
Whyte, head of product channels.
in the market and an opportunity to provide
agreement for the breakout Universal
“Take yourself back to 1991 and the
a gaming solution to these players, and we
Pictures comedy, Bridesmaids, according to
introduction of the World Wide Web; a life-
jumped at it,” he adds.
Whyte.
changing creation which has shaped the
Microgaming says there is a handful of
To start off the New Year with momentum,
Internet that we know today. Back then, the
Microgaming and Quickfire operators
Microgaming will be unveiling a new
likes of Amazon and Google didn’t even exist
planning to launch with the app in Q1 2015
development for its Quickfire platform, a
and mobile phones were in their infancy;
and the app will continually evolve with new
game management module, Quickfire iQ,
‘the brick’ phone was even considered
features, new games and updates to ensure
that “enables operators to manage their
revolutionary. It’s hard to conceive that was
it meets the requirements of the Windows
online casinos quickly, effectively and
only 25 years ago,” he adds.
Phone platform.
intelligently”. Quickfire iQ is also capable
To date, the Internet has moved beyond
Whyte notes that player behavior is
of integrating seamlessly with third-party
simply transforming the way we live, from
different between online and mobile. While
systems and providing business intelligence,
communication to commerce and payment.
online players “will engage for longer
game settings, incentives, free games,
We are entering an era where we spend more
periods of time, generally in the comfort of
player segmentation, achievements and
time in the virtual world, through multiple
their home”, mobile is “short bursts of play
recommendation tools.
devices from laptop to tablet to mobile and
throughout the day whilst on the go”.
While Microgaming is optimistic about the
even wearable technology. The number of
However, the rise of mobile does not mean
year ahead, the company is particularly
smartphone users worldwide is estimated
the decline of online. As Whyte puts it:
excited about the potential of the Asian
to reach 1.75 billion in 2014, according to
“What we are seeing more and more is
market.
market research company eMarketer.
that players aren’t sticking to one form
“2015 is set to be another busy year for
Whyte comments: “Most recently we’re
of technology or one way in which they
Microgaming,” Whyte says. “As a whole
seeing it with mobile. It’s estimated that
consume our product - players are becoming
the Asian market is an exciting area to
mobile gaming will account for 31% of
‘multi-device’ and we expect this trend to
monitor, especially with the booming
global gaming in 2015 and that percentage
continue for the foreseeable future.”
smartphone industry. Devices are becoming
is predicted to increase further in 2016.
As the gaming industry goes digital,
more affordable, in turn increasing mobile
Whilst mobile is very much ‘here and now’,
Microgaming has experienced changes in its
adoption, which shows great signs of growth
it will still be a big industry topic for the
customer base.
for mobile gaming.”
foreseeable future.”
“Not only has our number of clients
What makes this industry so exciting
Microgaming takes pride in having launched
grown, but over the years the profile of our
is that no two days are ever the same,
the industry’s first real-money casino
customer base has gone through waves,
and Microgaming is preparing itself for
app on the Windows Phone Store last
from entrepreneurs, to listed companies,
inevitable regulatory changes. Whyte
December. The app features more than 35 of
to government and more recently, media
concludes: “Regulation will play a huge
Microgaming’s premium games, including
companies,” says Whyte.
part in how the iGaming landscape evolves.
online slots, progressives, table games and
Driven by the changing customer base,
Further regulation is inexorable; it’s just a
video poker.
Microgaming has been adapting and shaping
matter of when and how.”
Asked about the rationale of developing
its product offering accordingly.
Microgaming will be at Stand N5-220. l
an app specifically for the Windows
Despite evolving industry landscape and
Phone market, Whyte explains: “We are
customer expectations, Microgaming still
continuously analyzing the mobile phone
positions itself as a software provider who
market and recent data shows that the
develops “market-leading software” for
Windows Phone market share is growing
operators.
in several large European countries, and is
Speaking of 2015, Whyte says the company
projected to continue to increase.”
has “an exciting roadmap of new content
Asia Gaming Briefings | February 2015
SUPPLIER SPECIAL REPORT 42 ALFASTREET
Building momentum
ARISTOCRAT
Hollywood star studded lineup
B
Wonder Wheels dual-seat immersive pods.
new Spring platform.
The company will be demonstrating
The platform will offer BetConstruct’s
recently launched attractions, as well as
partners additional capabilities to
those for imminent release and those under
power their continued growth, with new
development for European gaming floors.
products offering access to new verticals
Pending imminent release in Europe, the
and increased manageability with a new
first title in the Wonder Wheels series is
powerful back office suite of tools.
the Batman Classic TV Series slot game,
In the past year, BetConstruct has expanded
featuring characters and animations from
its global footprint opening additional
the original 1960s hit television series,
offices in the USA and Latin America.
with the legendary Adam West and Burt
Additionally they have launched new
Ward fending off The Joker, The Riddler
verticals such as Fantasy Sports and Free
and Catwoman.
Play betting to complete their product
Follow-up titles in the towering Wonder
portfolio and become a “one-stop-shop”
Wheels range will also be displayed
for operators looking to set up from scratch
on Aristocrat’s ICE stand. The first
or to build on their existing product base.
involves Superman The Movie and Ted,
BetConstruct has expanded its live sports
featuring actors Mark Wahlberg and Seth
betting to cover over 20,000 events every
MacFarlane and a real-life teddy bear.
month, and has continued to roll out new
Ted’s close to the knuckle capers helped
games such as OGWIL, an innovative online
the film became the highest-grossing
lottery game which could see a player
R-rated comedy of all time upon its release
winning up to $6 million in an instant, and
in 2012, grossing $550 million worldwide.
more recently Open Face Chinese Poker, the
Another eagerly-awaited arrival, the first
fastest growing poker variant and popular
link game in Aristocrat’s hugely popular
with professionals and amateurs alike.
E*Series, Pixie Wishes will be making its
Vigen Badalyan, founder and chairman
first showing in Europe at ICE 2015. Two
of BetConstruct, has observed that
of this entertainment segment’s most
“ICE Totally Gaming has always been a
successful games of 2014.
particularly successful show for us, and
The company will be at
we’re expecting this year to be bigger and
S2-250 in the South
better than ever. “
Hall of the ExCeL
BetConstruct has a full team available at
Centre. l
Booth S1-350. l
place at ICE will be three globally
known brands that will be hosted on its new
A
London will be a great opportunity
to present its new product line and to position the company on a different competition level. 2014 was a very important year for Alfastreet as there were many projects that the company needed to complete by the end of the year. Most of the projects were related to launching several new products, some being very much outside of its electronic table games product line. The new product line is expected to open new markets for Alfastreet and upgrade the existing ones, with the first orders already in even though some of the new products are not being revealed at this time. Due to the additional product lines Alfastreet needed to reconfigure its manufacturing facilities. A considerable upgrade was completed in 2014 in most of the departments, but mainly in production, development and storage. This change was needed for Alfastreet to keep up with the ongoing demand for their established products, and also, to prepare and accommodate a new product line. Albert Radman, sales director for Alfastreet commented: “The new developments that we are about to release will open many new doors for us and will also help us enter a new level of manufacturing. I am more than positive that Alfastreet will gain more ground in the 2015 and make another step towards re-confirming its leading position in the world of the electronic table games.” Alfastreet is exhibiting at S5-130. l
Asia Gaming Briefings | February 2015
Spring platform breaks the ICE
A
ristocrat Technologies says pride of
lfastreet says this year’s ICE show in
BETCONSTRUCT
etConstruct will be using ICE to showcase its new products and services
which have been developed as part of its
SUPPLIER SPECIAL REPORT 43 BETRADAR
“Benchmarksetting” innovations
BMM
European expertise for a global industry
CAMMEGH
Cammegh to deliver a fabulous spread at ICE 2015
B
B
C
the introduction of its Managed Trading
Austrian and Spanish offices, as well as key
recently approved by the UK Gambling
Services, the launch its new Live Channel
leaders from the South Africa, Australia and
Commission, at ICE 2015. The unveiling
Online and Betting Software, as well as
US businesses.
of Cammegh Spreadbet Roulette gives
the development of new virtual gaming
The experts will be available at the show to
operators the opportunity to offer a wider
solutions in combination with its new
offer advice and assistance on compliance,
range of roulette bets with exciting new
Game Server.
certification, testing and training services
payout levels. Operators with existing
The company provides all the necessary
for both land-based and iGaming.
Cammegh 360 wheels and Billboard
services to run a bookmaker operation,
“BMM has gone through a significant global
displays can offer the thrilling new
such as fixtures, results, odds compiling,
expansion over the last three years, with
roulette-based side bet, with configurable
trading tools, in-running services, front-
specific emphasis in Europe,” said Kirk
payouts from even money up to 1,200 to 1.
end content solutions and live streaming.
White, executive vice president & general
In addition to Cammegh Spreadbet
In particular, the company says the launch
manager - international. “In 2014 we
Roulette, a brand new range of
of Managed Trading Services represents
opened new offices in Vienna and Bologna,
Billboard display panels will be shown.
a key milestone in the execution of its
employing both local and international
Complementary to the current range, the
strategy of becoming the industry’s unique
staff in those locations. In Europe we are
new slim double sided screens conceal a
“one-stop-shop” provider, offering a
seeing the gaming industry really embrace
host of new features together with pin
diverse portfolio of turnkey sports betting
technical innovation and competition to
sharp, customizable graphics. Cammegh
solutions.
lower costs and improve efficiencies, and
will also be showing its EyeCard Plus card
Managed Trading Services helps to
BMM is filling this demand with quality
recognition system, Slingshot 2 automated
optimize the profit of each bookmaker by
testing, compliance and certification
wheel and a roulette bundle which
externalizing labour-intensive tasks and
services,” he said.
combines Cammegh’s renowned Mercury
dealing with them efficiently and cost-
BMM is able to test online, land-based
360 wheel, with Bally Technologies’
effectively.
social and mobile in European jurisdictions.
Chipstar, roulette table and colour wheel
The service puts Betradar’s experts in
It has been certifying gaming products for
checks as part of a single source solution.
global betting markets to work for their
more than 33 years.
All this will be on show alongside the
clients and enables them to completely
BMM Testlabs will be at booth N3-420. l
Billboard MediaPro, MultiBoard and
etradar, a brand of Sportradar, says 2014 saw “benchmark setting
innovations” for the company, including
MM Testlabs will be represented from across the globe at this year’s ICE
show, with staff attending from its Italian,
ammegh, makers of the world’s finest roulette wheels, will debut Spreadbet
Roulette; dynamic new roulette side bet,
or partly outsource their trading. From
complete array of analysis options from
providing the fixtures to compiling the
Cammegh.
odds, monitoring the liabilities to finally
The ICE 2015 show in London will also
confirming the results.
mark the 25th anniversary of Cammegh
Betradar also claims to offer the most
and the whole team looks forward to
comprehensive and reliable Live Odds
welcoming everyone to their stand to
& Live Scouting service and is the only
celebrate this very special occasion.
supplier in the market that controls the
Cammegh will be at stand S6-120. l
entire chain of its in-running offer – from the data collection at the venue right through to the compilation and delivery of odds. In total, the coverage amounts to over 18,000 live events in 18 sports around the clock each month, providing over 350 unique odds types. The company can be found at Stand S1-150. l
Asia Gaming Briefings | February 2015
SUPPLIER SPECIAL REPORT 44 DLV
CPI
Payment solutions for the industry
EVERYMATRIX
Celebrating 20th anniversary
Turnkey software solutions in focus
C
PI Payment Innovations will be displaying what it claims is the largest
portfolio of payment systems in the gaming industry, including the new MEI SCR note recycler, which has been yielding impressive results across multiple field trials. SCR will be released to the European AWP market, beginning with Germany, in the first quarter of 2015. CPI is now entering commercial agreements with the OEMs. SCR is the latest extension of the SC product line, which has achieved an installed base of more than 1.5 million units worldwide. The product provides a more secure and cost-effective way to handle cash. By combining proven components with new technology, SCR opens new possibilities for what note recycling can offer as part of a total cash management solution. Its value proposition begins with the reliability associated with the same acceptor head and 600-note cashbox as the SC Advance. Two 60-note recycling drums also provide SCR with the capacity to meet the needs of diverse applications within a small footprint. In games that traditionally pay jackpots in coins, SCR virtually eliminates hopper starvation by paying out higher value notes instead – using the same notes it accepts and stores on its recyclers from previous transactions. As a result, SCR requires less maintenance and can run for longer periods of time, lowering the overall cost of operation. In addition to SCR, the CPI booth will feature a variety of solutions for casino slot machines, AWP applications, VLTs and more. CPI will exhibit at booth N3-320. l
Asia Gaming Briefings | February 2015
D
LV is celebrating its 20th anniversary with a busy year planned, including
the creation of subsequent versions of its series of games, and work on online offers for its clients. At the ICE exhibition in London, DLV will showcase its modern STD, DWS and HD cabinets and jackpot series Dragon Jackpot, Jewel Jackpot III, Gauya Quest and Vollinstars, as well as its series of multi games for standalone machines with the most recent versions - Diamond Games Premium VII, VIII and IX. Its 25-games multi game Diamond Ultra will also be featured with a novelty for ICE show – its continuation Diamond Ultra II. DLV also plans to present its new online totalizator dlvbet, which will provide clients with the possibility to make bets 24/7 on the outcome of a great number of sports, political and other kind of events. The company will be at booth N4-160. l
E
veryMatrix, an iGaming software provider with offices across Europe,
Asia and North America, says it will be showcasing its award-winning software solutions at ICE. These include OddsMatrix, a fully-managed sportsbook providing more than 15,000 live events monthly, GamMatrix, a complete gaming and payment processing platform integrated with more than 80 third-party software APIs, and CasinoEngine, the largest casino content aggregator on the market offering a world-beating selection of games from top providers. Visitors are invited for chat and unwind over a cocktail on Tuesday and Wednesday, between 4 and 6 pm, and on Thursday, between 2 and 4 pm. EveryMatrix will also organize its second annual Pre-Ice Party for its esteemed clients and partners on Monday, February 2nd, 2015, at the exclusive venue Hawksmoor Spitalfields in London. “We are thrilled to be attending the most exciting gaming event of the year, where we look forward to meeting new prospective partners, greeting esteemed colleagues, and finding out the latest trends in this fast-changing industry,” said Ebbe Groes, Chief Executive of EveryMatrix. The company will be at stand S1 – 110. l
SUPPLIER SPECIAL REPORT 45 GAMING INCUBATOR
Industry Advisory makes ICE debut
T
GLI
GTECH
Shining a spotlight on auditing services
The Money Drop makes global debut
G
he Gaming Incubator, an established
TECH will be introducing several
advisory company with extensive
additions to its True 3D game library at
experience in land-based, online and
ICE that are specifically designed to appeal
social gaming to cover the broad spectrum
to different player segments.
of the gaming industry, will be making its
Titles include Bejeweled 3D, Dragon´s
debut appearance at ICE 2015.
Temple 3D, Dreams of Asia 3D and Aladdin’s
The company has a physical presence in the
Fortune 3D. Emphasizing its expertise in
UK and Hyderabad, India, with a number of
linked gaming products, GTECH will also be
partners located in the U.S. and Asia.
featuring several new linked products in its
The company, whose mission is to help
booth. Peruvian Riches and Secrets of the
entrepreneurs navigate from start-up
Sea are two powerful multi-level mystery
through growth to exit, says it aims to find
jackpots. These concepts allow operators
“raw diamonds.”
to select nearly any title from GTECH’s
These are companies or individuals with a
core game library and insert them into a
winning combination of the talent and drive to succeed, together with a gaming concept/ product with the potential to develop into a scalable and profitable business. Ben Dodds, founder and the general manager, explains: “Our focus is on unique gaming technology, business models and operating opportunities. We believe that in mature markets with limited product differentiation our ability to recognise, qualify and support the growth of innovation makes us an ideal strategic partner, advisor and investor.” For investors, Dodds says the company’s attraction lies in its ability to provide packaged opportunities with the aim of delivering the ‘diamonds’ whilst supporting and leveraging growth”. He says that The Gaming Incubator works hard to support teams and companies that have the potential of having an immediate and long-term impact. The company will be at booth N7-366. l
G
aming Laboratories International will shine a spotlight on its auditing
services at ICE, which range from WLA compliance to IT security. The company says these services help regulators, operators and suppliers to improve governance, risk and compliance processes across the entire operation. In addition to auditing, GLI offers its clients an extensive portfolio of services, including lottery testing, gaming device and systems testing, online gaming systems and security testing, rule writing, consultation and professional services. GLI’s professional services division has four main areas, each specifically designed to make doing business in the lottery and gaming industries faster and more effective. Those categories are: Project Management; Governance, Risk and Compliance; Technical Services; and GLI University Training. At an average of 120,000 per month, GLI issues more certifications than any other lab for more than 475 global gaming global gaming jurisdictions worldwide. GLI University conducts training for many groups all over the world. Most recently GLI University completed its first Master’s Level Commissioner Certification Training for the National Indian Gaming Association (NIGA). GLI is also a leading gaming consultancy,
progressive bank. The Money Drop will be making its global debut at ICE. The multi-level progressive is a title licensed by Endemol and features an innovative risk-based progressive play-off. GTECH will also present a new suite specifically adapted to U.K. requirements. On the interactive gaming side, visitors will be able to experience GTECH’s total iGaming solution, including entertaining interactive casino games, bingo, poker, sports betting, and iLottery products, as well as exciting new mobile additions for players on the go. GTECH´s open architecture platforms allow fast integration of third-party products to easily create a successful online solution tailored to customer needs. New casino games include favourites from the popular SPIELO casino games library, with many new titles launched for desktop and mobile devices, such as Moving Moments, Goldify, Egyptian Dreams and Treasure Blast. GTECH’s networked bingo and poker solutions will also be on show. GTECH will be at Booth N3-160. l
and GLI President James Maida will offer insights on the panel “How to do Business in Indian Country,” which takes place Tuesday, 3 February at 12 pm. GLI will be on stand N3-210. l
Asia Gaming Briefings | February 2015
SUPPLIER SPECIAL REPORT 46 IGT
IGT launches “Out of the Blue”
INSPIRED
Multi-channel innovations
I
I
from “Out of the Blue.”
The company’s Virtual Sports portfolio
The CrystalDual cabinet
has undergone huge expansion in the last
has won praise for
year, supporting the development of a €1b
boasting “beauty, brains
annual market in Italy alone.
and brawn.” It embodies
Inspired prides itself on offering the best
modern cabinet design,
Virtuals content library with the widest
delivers the ideal player
range of sports and bet markets.
experience and gives
Inspired’s Virtual Sports Bet Management
operators superior levels
System, BetBOX, allows an operator to run
of serviceability and
a virtual sportsbook with multiple content
reliability, IGT argues.
feeds and new events to bet on every
The CrystalDual is backed
three minutes.
by an industry-leading pipeline of themes
Mobile omni-channel gaming is a
including IGT-favorites such as Di Vinci
strategic priority for Inspired. It was one
Diamonds and Siberian Storm and new
of the first suppliers in the industry to
releases including The Fates, Golden Eagle
launch new games simultaneously on
and King Reels.
VLT, online and HTML5 mobile. Leading
IGT’s S3000 cabinet will also make its
titles include White Knight, Goddess of
international debut at ICE. The S3000 is
the Amazon, Merlin, Drop it, Spirit of the
the evolution of the spinning-reel slot
Samurai and Centurion.
experience - preserving the essence of the
The company’s Remote Game Server,
spinning-reel cabinet that continues to
Virgo, allows operators to integrate
appeal to genre purists, while also piquing
Inspired and selected third-party games
the interest of video slot players seeking a
with its current platform and offer players
new gaming experience.
access to new hits and player favourites
“Our ICE 2015 portfolio is a direct
from land-based gaming.
reflection of our commitment to our
In order to strengthen its international
customers and IGT’s leading role in
expansion in distributed VLT markets,
cultivating thrilling gaming experiences,”
Inspired is launching two new gaming
said Eric Tom, IGT EVP of Global Sales.
machines - “Optimus” and “Inceptor”.
“The cross-platform content, hardware
Optimus is a modern and customisable VLT
advancements and casino management
cabinet, optimized for multiple market
systems that IGT will spotlight at ICE will
tiers. With dual 21.5” screens, bottom
speak volumes about our laser focus on
touchscreen and customisable Plus, Pro
meeting our customers’ demands of today
and Elite variations.
and capturing the opportunities of the
Inceptor is designed for lottery point of
future.”
sale in emerging markets and can easily be
Continuing IGT’s legacy of bringing
manufactured in-country, resulting in a
Hollywood to the casino floor, the
very cost-effective and versatile product,
company’s latest blockbuster hit Sherlock
using 21.5” monitors with a 16:9 ratio.
Holmes Video Slots will make its world
Inspired will be at stand S2-310. l
GT says its focus at ICE will be the introduction
of two pioneering cabinets
debut. The all-new Premium Plus title is housed on IGT’s Triple Wheel hardware and will put players right in the middle of their favorite movie moments. IGT’s stand is at N2-240. l
Asia Gaming Briefings | February 2015
INTERBLOCK
Diamonds come in multi formats
nspired Gaming Group will be exhibiting its innovations in mobile omni-channel
entertainment and Virtual Sports at ICE.
I
nterblock says it will be presenting its upgraded diamond products at ICE, a
series of poker games that feature a variety of titles that can be displayed in two distinct formats. They are available as a single game, or part of a multigame or even multiplay setup. An important advantage is that the game is also available on a StarBar - a new play station which is playable directly from the bar’s counter and has been specially designed to maximize casino space and fit into any bar area. “All the products that will be displayed at ICE London 2015 show are our latest, newest and most innovative design ever in the industry,” it says. The products include MiniStar Roulette with five Play Stations with Single Sided PID and LED Sign Straight Single Sided: MiniStar Roulette with eight Play Stations with Double Sided PID and LED Sign Round: MiniStar Roulette with 10 Play Stations with Double Sided PID and LED Sign Round and Progressive Jackpot System named Golden Chip. The Interblock booth is at # S3 - 310. l
SUPPLIER SPECIAL REPORT 47 JCM
Connecting the gaming world
KONAMI
Versatility and variety lead the way
J
K
printer technology and systems solutions.
Rapid Revolver for the first time, together
On display will be JCM’s bill validation
with a range of titles designed to highlight
technology featuring iVIZION, iPRO and
“versatility and variety.”
iPRO-RC.
“Over the past year, Konami has achieved
The company says iVIZION has the most
continued momentum across Europe,
advanced validation security features and
especially for the SeleXion multi-
anti-stringing technology available.
game product with advanced language
iPRO has a high first-time acceptance
settings and operator-configurable
rate, a fast note-to-note acceptance rate,
game packages,” said Matt Reback,
and JCM’s innovative sensing and anti-
vice president, marketing at Konami.
stringing package.
“Versatility and variety are two key
It will also showcase printer technology
factors for our development strategy
and the PayCheck 4, GEN2 Universal,
internationally. Konami has earned a
TableXchange and Coupon Express.
reputation for reliability and performance,
TableXchange brings the convenience of
allowing our customers to recognize more
TITO to the table by both accepting and
value from our products at each and every
paying out with TITO tickets, allowing full
gaming position.”
two-way transactions compatible with
Each SeleXion machine at ICE 2015 will
existing casino TITO systems, increasing
showcase different game packages for
convenience for players and streamlining
Spain, Sweden, Holland, and other unique
operations by virtually eliminating the
configurations by jurisdiction, including
need to replenish chips at table games.
a variety of new multi-language, multi-
JCM will also be presenting its system
currency titles like Inari Riches, Exotic
solutions, including Dynamic Network
Princess, Glamorous Peacock, Spellbound
Applications (DNA), PromoNet and
Princess, and Solstice Celebration.
Ticket2Go.
Konami will also bring its tall-top Podium
PromoNet intelligent couponing identifies
Monument cabinet and video/mechanical
valuable players, targets both carded and
hybrid machine Rapid Revolver to ICE for
non-carded players, links promotions to
the first time.
game-play and delivers promotions where
“Our first international release on Podium
and when they are needed.
Monument is an arctic sports-themed
Ticket2Go is a retrofit ticketing solution
game called Snow Stars: White
for gaming and AWP devices that do not
Winter, and our two debut
support standard ticketing protocols
titles on Rapid Revolver
and delivers a single ticketing
are Rising Dragon and
solution across the
Northern Treasure,” said
gaming floor.
Reback. “Both machines
JCM will be at stand
demonstrate our continued
N3-220. l
commitment to robust
CM Global says it’s helping operators create better connections with better,
smarter, faster bill validation technology,
ORTIZ
Redefining floor metrics
onami Gaming, Inc., a leader in casino gaming and systems, will be presenting
games such as Podium Monument and
game content combined with novel entertainment experiences that empower casino operators to get more from their floor.” Konami will be at booth S5-110. l
O
rtiz Gaming, a multinational gaming manufacturer, says it’s seeing strong
demand for its products, with a white paper recently demonstrating how its Ortiz Standard increases win- per-unit, slot floor average, and time-in-chair. The paper showed the Standard’s combination of complex mathematical models and engaging player-centric features increase slot floor revenue. “The Ortiz Standard, found on Ortiz Gaming machines, has redefined slot floor metrics and as a result has created additional demand for the Ortiz Gaming products,” it says. ICE Totally Gaming attendees will have a chance to see the Ortiz Standard in action as well as the newest O-Future and O-Circle cabinets. O-Circle has a 42” evolutionary immersive curved high definition display, reaching toward the sky and wrapping around the player for full immersion into the game. The O-Future has a cutting edge design, adaptable lighting for different types of games, and HD dual-array screens. The O-Future provides Ortiz Gaming games and animations with amazing realism and definition. The new O-Gaming platform of online/ mobile products will also be on display. The company says its gaming concepts are a proven model in more than 14 countries, encompassing North America, Europe, Latin America, and Asia. Ortiz is at booth N3-360. l
Asia Gaming Briefings | February 2015
SUPPLIER SPECIAL REPORT 48 PLAY’N GO
Play’n GO launches in Philippines
SBTECH
Chameleon shows its colors
SCIENTIFIC GAMES
Stronger together
P
S
C
Investment (PGI) and its subsidiary IEST,
products at this year’s ICE.
brands - Bally, WMS, Shuffle Master, SG
the operator of the (PAGCOR) authorized
Chameleon 360 is a fully comprehensive
Gaming, Williams and Barcrest - at ICE
INSTAWIN outlets in the Philippines.
gaming and betting platform and
2015. The company will showcase more
Players are able to enjoy a large selection of
management system, allowing multi-
than 125 gaming products that address
Play’n GO games together with four system
product and multi-channel control of
casino operators’ diverse needs across
wide Mystery Jackpots via the INSTAWIN
operations, with a portfolio of leading
all of their land-based and interactive
outlets throughout the Philippines. The
gaming titles from providers such as
channels, thereby demonstrating the value
system is already in successful operation in
Microgaming, Net Entertainment and
of the Company’s recent merger with Bally
several outlets and will be launched shortly
others on top of a premium sportsbook
Technologies. Gavin Isaacs, president and
on the remaining and upcoming outlets.
offering.
CEO of Scientific Games, said, “ICE 2015 is
Johan Törnqvist, CEO of Play’n GO, said:
The platform’s single sign-in allows players
our first global opportunity, as a combined
“We are very pleased to see our gaming
a seamless gaming experience across
company, to demonstrate our ability to
system and games available to PGI as well
multiple providers, content and channels,
leverage high-earning product brands and
as our Mystery Jackpot system and I look
while the payment gateway integrates all
leading technology solutions that benefit
forward to the additional installations
leading payment methods from a variety of
our customers and help them grow their
being completed. Our server based gaming
jurisdictions.
businesses.” Highlights of new for-sale,
system and games are perfectly suited for
SBTech will also present its new suite of
gaming operations, systems and interactive
the players in the INSTAWIN outlets, and
mobile products, including SBTech Touch,
products on display in Scientific Games’ ICE
the addition of four system wide jackpots
which has been designed specifically for
2015 exhibit include, from WMS, the Blade
gives the players even more entertainment
tablet and touch screen terminal devices.
s23, a hybrid slant cabinet that combines
and fun with our games.
The retail/land-based section will introduce
the key player-favorite features of the
Play’n GO is a gaming specialist and
SBTech’s new solution for sports betting
Blade cabinet and dual 23-inch HD displays
leading developer of smart systems
terminals, which offers top-of-the-
along with the latest Blade cabinet content.
and content especially designed for
range pre-match and live sports betting
Bally Systems is highlighting its award-
performance on mobile phones, tablets,
capabilities via touch screen terminals
winning Elite Bonusing Suite which, when
game terminals and websites. Play’n GO
that allow players to bet quickly and easily,
combined with iVIEW Display Manager,
independent e-gaming platform GAT –
while operators can manage the entire
enables player-centric bonusing events
Games Account Toolkit - delivered with a
system from a single console.
that add dramatic new levels of excitement
complete and comprehensive back-office
“We’re really excited to be showcasing all
and anticipation to the slot-play
gives operators a unique foundation to
our latest developments at this year’s
experience.
tailor their offerings. Play’n GO ensures
ICE Totally Gaming expo and we expect
The Shuffle Master will be featuring the The
that its clients are equipped with superior
to see a lot of interest in our fully
Tablemaster running blackjack. The e-table
back-office administration tools for
comprehensive new gaming platform,
transports the fast-paced excitement
surveillance & marketing in addition to
Chameleon 360. It’s like a one-stop-shop
of live table gaming to a fully electronic
premium gaming content. With 60+ games
for real and true gaming and betting online
platform on enhanced graphics.
in 30 languages and especially adapted for
and retail operations but with full control
Scientific Games’
use on most smartphone and tablet devices
and flexibility for every business owner,”
group of companies
using Apple iOS, Android, Blackberry &
CEO Itai Zak said.
is exhibiting at
Windows 7/8 - Play’n GO is the undisputed
SBTech will be at stand S2-210. l
#N1-440. l
lay’n GO is supplying it’s server based gaming system with system
wide Mystery Jackpots to Pacific Gaming
market leader when it comes to Mobile Casino Games. Play’n GO is at stand N6-340 l
Asia Gaming Briefings | February 2015
BTech plans to showcase its turnkey gaming platform, Chameleon360,
and new generation of mobile and retail
asino operators will experience first-hand the strategic benefits of
the combination of Scientific Games’
SUPPLIER SPECIAL REPORT 49 SUZO HAPP
Celebrating 60 years in the gaming industry
TRANSACT TECHNOLOGIES
Ask us how
T
VERMANTIA
The lottery connection
ransAct Technologies, a global leader in printers and software for the gaming
and other industries, invites ICE attendees to “Ask Us How” Epicentral increases casino revenues by enabling operators to deliver real time promotions and bonus offers directly to their players at the slot machine or electronic table game. “Epicentral deployment is delivering fabulous results,” said Bart Shuldman,
I
CE Totally Gaming is set to be a memorable occasion for Suzo-Happ, as the company
celebrates 60 years in the gaming industry. “We are in celebratory mood,” commented Harald Wagemaker, Suzo-Happ executive VP sales & marketing, gaming and casino EMA. This will be the first ICE that Comesterogroup will be exhibiting as part of the Suzo-Happ family. The Italian expert for change machines and cash handling was brought into the Suzo-Happ Group in 2014. ICE will also mark the first international exhibition for Suzo-Happ as exclusive global distributor for TransAct with the agreement having being extended to Europe as from 1st January 2015. The Epic 950 printer from TransAct is the perfect solution for ticket-in, ticket-out (TITO) applications. Currently installed in over half a million slots in casinos throughout the world, its success stands out significantly in Europe. Operators are invited to see just how many benefits the Epicentral, the promotional software system can offer. The extended Suzo-Happ product range will be on display, including the Bill-to-Bill bank note recycler that is the preferred choice in a whole range of applications around the world. Suzo-Happ is known as the ‘hopper and topper company’, with products including the Cube, Flow and Evolution hoppers and the Xenon LED, Towerlight and Video Topper alongside a number of RBG lightstrips to brighten up any slot machine. Naturally
chairman and CEO of TransAct Technologies, “as it creates innovative, real-time promotions and bonus offers which have been proven to generate results such as a 34 percent increase in customer return visits and a doubling of average daily theoretical.” TransAct’s promotion and bonusing software suite is an enterprise-level solution that allows casino operators and their marketing teams to deliver targeted coupons and bonuses to players directly at the slot machine or electronic table game, all in real-time, and all at the click of a button. Deployed in conjunction with both ServerPort and Epic 950 ticket printer installed in each gaming device, Epicentral connects to all slot machines and electronic table games, regardless of manufacturer, providing flexibility and allowing operators to address their entire floor with a single solution. “Epicentral has demonstrated its ability to deliver significant benefits to slot floor marketing programs. These benefits are crucial differentiators in today’s industry environment, allowing operators to best optimize their marketing efforts to drive revenue growth,” Shuldman adds. TransAct will showcase Epicentral and its other printing solutions for gaming devices and self-service kiosks at ICE Totally Gaming 2015 in conjunction with its exclusive global distributor Suzo-Happ at Stand N4-110. l
V
ermantia will present a full suite of virtual sports, lottery, casino and
social games that it has developed for the China Sports Lottery at ICE Totally Gaming 2015, alongside its other product lines and services. 2014 was a transformative year for Vermantia with significant corporate and content development undertaken, and several Tier 1 operators signed up to its content services. Alongside the heavy investment into the company’s products, Vermantia has also brought in an international experienced and proven executive to bolster the management team. Vermantia’s stand promises visitors an immersive, interactive experience, centred around the company’s core offering of virtual sports, available to both retail and interactive operators. The company is excited to showcase a range of new sports for release in 2015 with a focus on groundbreaking 3D graphics that enhance the player experience. The recently completed development of Badminton, Table Tennis, Cycling and Archery, in partnership with the China Sports Lottery, represents the most advanced quality graphics in the industry to date. Filippos Antonopoulos, CEO of Vermantia said that “ICE is the annual meeting place for the Gaming Industry and we are very excited to present our new product portfolio to our current and future partners. The introduction of our newest products will
Suzo-Happ will be exhibiting the solutions
allow retail and interactive operators to
of further key distribution partners, such as
deliver a market-leading offering to their
ELO, Innovative Technology, MEI and Assa.
customers whilst simultaneously boosting
The Suzo-Happ team invites visitors to
their gaming revenues.”
Stand N4-110. l
Vermantia can be found at stand S3 – 110. l
Asia Gaming Briefings | February 2015
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CALENDAR OF EVENTS 52
FEBRUARY ICE TOTALLY GAMING- ROS 3-5 February 2015 ExCel, London www.icetotallygaming.com EGR AUSTRALIA POWER SUMMIT 18 February 2015 The Shangri-La Hotel, Sydney www.egraustraliasummit.com
MARCH IGAMING ASIA CONGRESS (IGA) 17-19 March 2015 Grand Hyatt, Macau www.igamingasiacongress.com CARIBBEAN GAMING SHOW 18-19 March 2015 Caribe Hilton, San Juan www.caribbeangamingshow.com ENADA SPRING 18-20 March 2015 Rimini Italy Expo Centre, Rome www.enadaprimavera.it
GIGSE 21-23 April 2015 Hyatt Regency, San Francisco www.gigse.com
MAY GTI ASIA TAIPEI EXPO 7-9 May 2015 World Trade Centre, Taipei www.gtiexpo.com.tw SAGSE CENTRAL AMERICA AND CARIBBEAN 13-14 May 2015 El Panama Hotel, Panama City www.sagsecc.com
EAST COAST GAMING CONGRESS 27-28 May 2015 Borgata Hotel Casino & Spa, Atlantic City www.eastcoastgamingcongress.com G2E ASIA 19-21 May 2015 The Venetian Macao www.g2easia.com
JUNE
IMGL 2014 SPRING CONFERENCE 29-31 March 2015 St Thomas, U.S. Virgin Islands www.gaminglawmasters.com/conferences/spring/overview/2015
RUSSIAN GAMING WEEK 3-4 June 2015 Sokolniki, Moscow http://rgweek.ru/en
INDIAN GAMING TRADESHOW 30 March - 2 April 2015 San Diego Convention Center www.indiangamingtradeshow.com
PERU GAMING SHOW 10-11 June 2015 Centro de Exposiciones, Lima www.perugamingshow.com
APRIL IGAMING NORTH AMERICA (IGNA) 14-16 April 2015 Planet Hollywood Resort & Casino, Las Vegas http://www.igamingnorthamerica.com/ ANDEAN GAMING TRADE SHOW 8-9 April 2015 Corferias, Bogota http://www.fadja.com
Asia Gaming Briefings | February 2015
N. AMERICAN GAMING REGULATORS ASSOCIATION (NAGRA) ANNUAL CONFERENCE 15-18 June 2015 The Inverness Hotel & Conference Center, Denver www.nagra.org CANADIAN GAMING SUMMIT 16-18 June 2015 Caesars Windsor, Ontario www.canadiangamingsummit.com
IGAMING SUPER SHOW & AMSTERDAM AFFILIATE CONFERENCE 23-26 June 2015 RAI Amsterdam www.igamingsupershow.com
JULY WORLD GAMING EXECUTIVE SUMMIT 8-10 July 2014 W Hotel, Barcelona, Spain www.terrapinn.com/conference/wges CASINO MARKETING & TECHNOLOGY CONFERENCE 14-16 July 2015 Rio, Las Vegas www.casinomarketingconf.com
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SEPTEMBER 10TH EUROPEAN CONFERENCE ON GAMBLING STUDIES & POLICY ISSUES 9-12 September 2014 Helsinki, Finland www.easg.org/website/conference GLOBAL GAMING EXPO (G2E) 30 Sep - 2 Oct 2014 Sands Expo & Convention Center, Las Vegas www.globalgamingexpo.com
OPINION
Is phone betting legal?
54
António Lobo Vilela*
AGB sought the legal counsel of a Macau based lawyer to answer the question everyone has been asking: Is phone betting/proxy betting legal in Macau? AGB Advisor António Vilela’s professional opinion is a resounding no. IF it were legal, the concession would be autonomous from that of the casinos.
I
s phone betting/ proxy betting for casino
Macau Legislative Assembly, there was a clear
In fact, one of the grounds specially and expressly
games of chance currently legal in Macau?
intention to not only relegate the legal regulatory
stated in the gaming concession/sub-concession
The short answer is no.
framework on interactive [or remote] gaming for
contracts that may lead to the unilateral termination
Phone betting / proxy betting is a system
casino games of chance to a later stage, but also
by the Macau SAR is the deviation of the gaming
that allows patrons outside the casino premises
to prevent the casino gaming concessionaires
concession/sub-concession scope by way of the
to place bets through a phone, by proxy.
from exploiting interactive games.
exploitation of unauthorized games.
Under Macau law, phone betting/ proxy betting for
The initial draft bill proposal of the Macau
The unilateral termination of a gaming concession/
casino games of chance is a form of interactive,
Gaming Law submitted by the Macau government
sub-concession is one of the forms of extinction
or remote gaming.
to the Macau Legislative Assembly provided
of the concession/sub-concession. It leads to the
Law 16/2001 (Macau Gaming Law) defines
not only for the possibility for casino gaming
immediate reversion of all casinos and gaming
interactive games as the games of chance in
concessionaires to be awarded an interactive
equipment to the Macau SAR and carries for the
which: (i) a prize in cash or equivalent is offered,
[or remote] gaming concession, but also for the
gaming concessionaire/sub-concessionaire a
or may be won in the terms of the respective
grant of a priority right to that effect. Yet, those
contractual duty to indemnify the SAR.
rules, (ii) a player enters or participates in the
provisions were removed from the final draft bill
The Macau government may also resort to the
game via telecommunication means, namely
proposal submitted following discussions with
first demand autonomous bank guarantee
phone, fax, internet access, data network,
a Legislative Assembly commission that was
provided by the gaming concessionaire/
transmission of video signals or digital data,
specially set up to analyze the draft bill proposal.
sub-concessionaire to guarantee, inter alia,
making or agreeing to make payments in cash
This said, the exploitation of interactive games
the exact and prompt fulfillment of all legal
or equivalent; and (iii) the game is equally
by the current casino gaming concessionaires/
and/or contractual obligations to which the
offered, or approved as a game of chance, or as
sub-concessionaires is a clear violation of the
concessionaire/sub-concessionaire is bound.
a gaming machine game in the Macau casinos.
Macau Gaming Law, as well as of the respective
On the criminal side, under the Law on Illicit
The commercial exploitation of every modality
gaming concession or sub-concession contract,
Gaming the exploitation – in casinos – of
of gaming in Macau -- casino games of chance,
being an unlawful practice.
interactive games by an entity not holding the
pari-mutuel betting, operations offered to the
When it comes to consequences there is a
proper legal entitlement, in casu a concession
public and interactive gaming for casino games
probable direct, negative and adverse impact
granted by the Macau SAR to that specific effect
of chance -- is reserved to the Macau Special
on the continuous and permanent assessment
might be configured as a criminal offense
Administrative Region and can only be carried
conducted by the Macau gaming regulator on the
punishable with up to 3 years imprisonment
out by an entity other than the Macau SAR by
suitability of casino gaming concessionaires/
or with a pecuniary penalty.
means of a concession.
sub-concessionaires, its qualified shareholders,
Furthermore, the impossibility to identify
As of today, the Macau SAR has not granted any
directors and key casino employees. Aside
the ‘real’ patron placing the bets through the
concession for interactive [or remote] gaming
from that, such a violation is deemed as an
phone/by proxy raises significant AML concerns
for casino games of chance, thus the exploitation
administrative infraction.
and does violate the AML legal regulatory
of any type of interactive games is illegal.
So far there is no pecuniary penalty for such an
framework currently in force, in particular the
The Macau Gaming Law also specifically states
infraction, since no administrative regulation
KYC rules. The violation of these constitutes
that a casino gaming concessionaire cannot
dealing with administrative infractions for
an administrative infraction sanctioned with
exploit any type of interactive game and asserts
violations of the casino gaming legal regulatory
a pecuniary penalty ranging (for legal persons)
that the concessions to exploit interactive
framework has been enacted, despite the
from MOP$100,000 ($12,820) to MOP$5,000.000
games are autonomous from those for casino
mandatory precept for such enactment enshrined
($640,000) or equivalent to twice the economic
games of chance.
in the Macau Gaming Law.
benefit obtained in case this benefit exceeds
Reflecting this legal injunction, the gaming
It may however trigger the unilateral termination
MOP$2,500.000 ($20,000). l
concession/sub-concession contracts stipulate
of the gaming concession/sub-concession by
--
that the concession/sub-concession granted
the Macau SAR on the grounds of a violation of
for the exploitation of casino games of chance
fundamental legal and/or contractual obligations,
does not cover the exploitation of interactive
in particular the obligation to exploit the
games, i.e., such exploitation is outside the
concession/sub-concession in the terms and
scope of the said concession/sub-concession.
conditions set forth in the gaming concession/
For further reading on interactive [or remote] gaming for casino games of chance and other gaming modalities in Macau, see Carlos Lobo and António Lobo Vilela, Chapter 42 – Macau, “Internet Gambling Report – An Envolving Conflict Between Technology and Law”, Eight Edition, Mark Balestra (Editor) and Anthony Cabot (Founding Editor), River City Group, p. 615.
In fact, by the time the draft bill proposal of
sub-concession contract, which expressly bans
the Macau Gaming Law was discussed in the
the possibility of exploiting interactive games.
Asia Gaming Briefings | February 2015
*António Lobo Vilela is an AGB Advisor, Partner at LVT Lawyers and former legal advisor to the Macau Gaming Commission