LAST WORD 74
Gambling on uncertainty Sharon Singleton
Managing Editor, AGB
A quick Google search for the size of the global online gambling industry provides a range of figures so wide that the only thing it really tells you is that no one has a truly accurate forecast for how much is bet through the internet.
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ban on online gambling in some of the world’s Rodrigo Duterte recently seemed to imply he had biggest markets, such as China, means that managed to appease Beijing by his government’s efforts accurate data is almost impossible to come to reign in the industry. Regulatory headaches aside, many companies by. The one consensus is that the market is big -- very big -- and growing, and that Asia is the most stepping a toe into Asia are finding the market highly competitive, with operators cutting margins in an effort exciting place to be. This promise of the online eldorado has led company to grow market share. U.K.-listed Playtech back in August announced after company to develop content and products designed to appeal to the Asian markets, but many are finding it was cutting its revenue forecast for Asia for 2019 it’s not as easy as they had expected to break into these to EU115 million, from its initial outlook for EU150 million ($127.4 million), citing increasing competition, complicated and unregulated jurisdictions. Last year provided a wake up call for those operating especially in China and a clampdown by authorities in in the markets, testing even the strongest nerves. After Malaysia. As a publicly listed company, it’s one of the few that provides details on its years of seemingly turning a revenue from Asia. blind eye to gambling products Then there’s the challenge targeting its nationals, Beijing in in reaching the target audience. August decided to act, warning Last year Asia-facing firms have spent in no uncertain terms that its provided a wake millions in sponsorship packages, patience had run out. especially for the U.K.’s Premier Cambodia, whose economy is up call for those League, in the hope of reaching heavily dependent on investment operating in the the region’s soccer-mad fan base. from China, complied immediately, However, the extent of the practice slapping an all out ban on online markets, testing has raised eyebrows, with the gaming that came into effect from even the strongest U.K.’s opposition Labour Party Jan. 1st this year. recently proposing a review At first some companies had nerves. amidst concern the firms were hoped that once the dust had using the reputation of British settled, the government in Phnom sport as a marketing platform Penh would change its mind, or at least fail to actively enforce the ban. That’s proving not for their own domestic audiences. The affiliate space in Asia is growing, but firms are to be the case and many are now conceding that they need to shut up shop, closing the door on one of only needing to be creative in how they attract and retain two jurisdictions in Asia that allowed online gaming. their clientele. Most online operators are confident that at some The other -- the Philippines -- has created some nail-biting moments for the industry. Hosting the largest point in the future Asian governments, outside China, igaming community in Asia through its Philippine will eventually take steps to legalise online gaming, Offshore Gaming Operator licenses, there were anxious realising the significant potential for tax revenue and the impossibility of stamping it out. However, they also times as Manila mulled its reaction to Beijing. However, it seems at least for the moment that danger concede that regulation is still a long, long way off. In the meantime, after the shockwaves of 2019, the may have passed. The government and the Philippine Amusement and Gaming Corp. have stepped up their advent of the Chinese New Year of the rat may give rise supervision of the industry, seeking to stamp out tax for some optimism. 2020 is the year of the metal rat, which apparently tends to be reliable and live a stable evasion and to document illegal workers. While it’s unlikely to permit rapid expansion, the life. They may hold some power and are able to turn Philippines is still open for business and President unlucky events into fortune.
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Asia Gaming Briefings | January 2020
