Jurisdiction Updates May 2015 Edition
Indochina Exclusive New law in Cambodia to put the brakes on border town business pg. 32 An insight into Vietnam’s bold casino operations pg. 28
Macau
Table cap to give rise to ETGs pg.06
PHILIPPINES
Competitors hot on the heels of Solaire pg.20
Australia A land of Great Barriers pg.36
G2E Asia 2015 supplier special pg.40
detachable smart-reading shoe
C O N TA C T Y O U R B A L LY A C C O U N T E X E C U T I V E T O D AY ! | P : + 8 5 3 2 8 7 2 2 5 3 9
MESSAGE 3
Much ado about Macau
A
sia Gaming Brief is proud to be a partner of one
of Thursday, May 21st. We hope you’ll pass by to come
of the most important events in the gaming
and cheer for your favorite team.
calendar, especially for the industry in Asia.
AGB MD Rosalind Wade will be chairing the iGaming
Macau, which has played host to this event
Summit at the G2E conference, also on Thursday, which
for nine years now, continues to be a challenging
will address topics such as regulation vs prohibition,
operating environment with low visibility on a number
sports betting marketing and operations, lottery
of key issues.
modernization, mobile and social gaming.
15Q1 EBITDA for the territory’s operators was between
Along with the Sports Betting Community, we will be
-31 to -40 percent lower than a year earlier. VIP play
hosting the next edition of our popular Asian Gaming
has declined 42 percent from a year earlier and, more
Summer Social in Manila on Saturday 23rd at 71
worryingly, mass market play, which has outstripped
Gramercy Lounge & Bar in Makati, so you can continue
VIP growth for several years, fell 27 percent in the first
the networking in style. Come and visit our booth at
quarter.
#ME05 to pick up an invitation.
So is this rock bottom? No one seems to know, which
We are also delighted to be launching the inaugural
is what makes the gambling industry … a gamble. Only
edition of Asian Gaming Lawyer at G2E Asia. A
change is certain; “To one thing constant never”.
partnership with the International Masters of Gaming
Regardless of the doldrums being experienced by
Law (IMGL), Asian Gaming Lawyer covers interesting
Macau’s casino operators, the industry overall in
legal and regulatory matters in the fast-changing
the region continues to be healthy with many new
landscape across Asia Pacific. Again, you can pick up a
investments and properties coming online. In this
copy at our booth.
edition we explore some of the properties in the
AGB sales and editorial staff will be in attendance at the
exciting IndoChina market.
show and the various networking events, so we hope to
As gaming companies adjust and the industry matures,
connect with you at some point.
there is increased focus on the well-being and
Have a great show! l
Rosalind Wade
Luis Pereira
performance of front-line staff, which is why AGB has teamed up with Reed Exhibitions to host the All Asia
On behalf of Asia Gaming Brief
Dealers Championship, being held on the G2E Asia
Rosalind Wade & Luis Pereira
show floor over three days, with finals on the afternoon
Publishers
www.asiagamingbrief.com MAY 2015 EDITION Series ii • Issue VII
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Asia Gaming Briefings | May 2015
CONTENTS 4
Greater CHina Macau MAINLAND CHINA
SOUTH EAST ASIA
SOUTH ASIA
06
PHILIPPINES
20
INDIA
34
10
Singapore
23
NEPAL
35
HONG KONG
11
THAILAND
24
TAIWAN
12
malaysia
26
NORTH ASIA
AUSTRALASIA
INDOCHINA special focus
JAPAN
14
ho tram
28
AUSTRALIA
36
SOUTH KOREA
16
aristo
30
pacific isles
38
RUSSIA
18
bavet
32
SUPPLIER SPECIAL REPORT
40
CALENDAR OF EVENTS
AD
Asia Gaming Briefings | May 2015
60
LAST WORD
62
GREATER CHINA 6
MACAU
ETGs thrive as labor and table cap fuel gains Electronic table games have gained a strong and growing foothold in Macau’s traditionally baccarat-dominated casinos and may prove key in populating the floors of new multi-billion dollar resorts amid a tight cap on tables and ongoing labour shortages.
Asia Gaming Briefings | May 2015
A
ccording to forecasts from Union
the replenishment cycle.”
Gaming Research, the number of
Given an estimated number of 3,150 new table
ETGs in Macau is likely to rise from
games to come online in the new properties in
5,700 at present to 8,500 once all the
Cotai over the next 3 years, comments made
new properties open. Revenue from electronic
by officials last year that they may revisit
gaming machines as a whole, which includes
regulation as regards to cap of these machines
ETGs, has ballooned from just $80 million in
caused considerable concern. However to date,
2004 to an estimated $1.8 billion in 2014.
no new rules have been proposed in this regard.
Part of these gains have been fueled by Macau’s
ETGs also present another significant advantage
2012 decision to cap the overall increase in the
in labor-constrained Macau in that they require
number of table games it allows to 3 percent
less staff. Macau has virtually no unemployment
a year. While ETGs are not exempt from the
and imported workers are banned from taking
cap, regulatory authorities allow a much more
up positions as dealers on casino floors.
favorable player ratio.
Sean Knights, executive general manager - table
While the traditional baccarat table has about nine
games, at Crown Resorts’ Crown Melbourne
players to one dealer, one ETG can accommodate
casino, said part of the original appeal for
as many as 50 to 60:1 for regulatory purposes.
electronic table games was the labor question.
“Operators nowadays are building bigger casinos.
The Melbourne casino has been called the
But if they are not having the maximum amount
“birthplace of fast action baccarat,” introducing
of tables [under the table cap limit], they will
the machines in the nineties.
turn to ETGs,” says Bryan Wu, investor relations
“While consuming a greater footprint than a
manager – Corporate Strategy of Paradise
traditional table, an ETG allows an operator to
Entertainment, whose LT Game unit is the
increase significantly the number of betting
market leader for ETGs in Macau.
areas available from a far smaller number of
“There will be at least two casino openings a
outcome drivers (dealers); that is more bets
year over the next five years, mostly in Cotai,”
leading to greater revenue and less associated
he says, “We are expecting at least 1,000 to
labour,” he said.
2,000 new incremental units for Live Multiple
It has also provided a cheaper entry point for new
Game Systems (LMG), not including those from
table game players, which has also been a key
GREATER CHINA 7
GROSS GAMING REVENUE Y14 $44b -2.6% April $2.4b -38.8% Y15E -26%
Morgan Stanley
-30%
Deutsche Bank -25%
Nomura Y16E
Morgan Stanley
6%
Table-only Market share as of APR. 2015 (Source: Sterne Agee)
to their success in Macau, where minimum bets
has the most ETGs on a percentage basis.
have risen to become the highest in the world.
Macau is dominated by six suppliers, which
“ETGs have to some degree demystified the
together control about 90 percent of the market,
table games environment thus encouraging new
with LT Game in the lead. Its systems, which
players, whether new to the Casino or simply
connect gamblers to a live croupier through
new to Table Games, to participate in a less
touch-screen playstations, account for about
intimidating and less expensive experience,”
60 percent of all the ETG seats in the market.
Galaxy Entertainment (27.HK) 19.2%
Knights adds.
The live element within the game has succeeded
Melco Crown Entertainment (6883.HK) 13.2%
As a result in Macau, operators have tended to
in appealing to Chinese players who are wary
transfer scarce tables to the higher end of the
of fully-automated games.
Wynn Macau (1128:HK) 12.6%
mass market, or VIP markets and pushed the
Sands China (1928:HK) 23.3% SJM Holdings (880.HK) 21.3%
MGM China Holdings (2282:HK) 10.4%.
lower end towards ETGs. “Operators nowadays are increasingly cautious about the return of investment (ROI) of their
OPERATORS
across a gaming floor area of approximately
casino properties. As Macau’s mass market
27,000 square metres. The total production
continues to grow, ETGs offer an innovative
cost is estimated at about HKD$30 billion ($3.8
solution to minimize cost, increase efficiency and
SJM Holdings (880:HK)
billion), although the company has expressed
Holds a 21.3 percent market share as of early April.
During 2014 Casino Grand Lisboa expanded its
stand-alone, which are either fully automated,
with 20 casinos. Its $3.2 billion Palazzo Versace
mass market table gaming operations from
or incorporate a link to a live croupier. Stadium
development is scheduled to come online in 2017.
250 tables as at 1 January 2014 to 274 tables as
games may have as many as 200 seats tied to
Mass market property the Jal Alai is scheduled
at 31 December 2014, whilst VIP tables were
one or more game types. A stand-alone will be
for a mid-2016 opening with 130 rooms and 45
reduced from 181 to 177 during the same period.
five to ten seats attached to a single game type.
gaming tables. The company has also indicated
Q1 EBITDA dropped 43 percent to HK$1.24
Grant Govertsen, principal and managing
it may be interested in opportunities in Japan.
billion, below expectations, according to Union
director of Union Gaming, says that in Macau
The company is currently building The Lisboa
Gaming. Gaming revenue was down 37 percent
Sands China (Venetian, Sands Cotai Central,
Palace on Cotai, which is also scheduled for
to $14.3 billion.
Sands Macao, Plaza) operates the most ETGs on
completion in 2017. The casino will have 700
an absolute basis while Paradise Entertainment
gaming tables and over 1,200 slot machines
thus maximize their ROI,” Paradise’s Wu said. There are two primary ETG types, stadium and
concern over costs.
Asia Gaming Briefings | May 2015
GREATER CHINA 8
Galaxy Entertainment Group (27.HK)
Melco Crown Entertainment (6883.HK)
renovation of the casino floor.
The company is investing $2.5 billion in the second
share. The company’s $3.2 billion Studio City is
Occupancy at the Wynn Macau slipped slightly
phase of its Galaxy Macau development, which
scheduled to open in mid-2015. The resort will
will nearly double the capacity of the resort.
also feature a 5,000-seat multi-purpose theatre, a
The company said its Galaxy Macau Phase 2 and
permanent magic show, jungle-themed river rides,
Broadway at Galaxy Macau are on schedule and
and a Ferris wheel, as well as a Batman attraction.
on budget to open on May 27 this year.
The resort aims to diversify its attractions away
In the latter part of 2015, the company expects to
from pure gaming.
begin site investigation works for Cotai Phases 3
However, the company recently warned that it
and 4, the plans for which are almost complete.
may find itself in default on the project if it cannot
“Cotai Phases 3 & 4 will provide GEG with
secure certain conditions such as a minimum of
thousands of new hotel rooms and a vast array
400 tables. In its annual report, the company said
of leisure and entertainment facilities,” the
it must satisfy certain conditions prior to the
company said.
formal opening of the property on October 1, 2016.
In Q1, the group reported a 32 percent year-on-
“These conditions require, among others, the
year decline in revenue, while adjusted EBITDA
full opening of Studio City for business to the
during this period fell 40 percent.
general public by October 1, 2016, with a minimum
The company announced that its revenue fell
400 gaming tables available for operation, and
to HK$13.7 billion, and adjusted EBITDA, to
a minimum area of public floor space occupied
HK$2.3 billion.
and open for operations. In the event that we
The company is also expected to break ground
are unable to meet these conditions, it may
on its hotel on Hengqin Island this year. Galaxy
constitute an event of default under the Studio
is planning a “Maldives-style” resort.
City Project Facility.”
Has a 19.2 percent market share with six casinos.
Has three casinos and a 13.2 percent market
In Q1, earnings plunged more than 63 percent, with adjusted net income coming in at $87.1
Sands China (1928:HK)
million and missing analysts’ estimates. Per
Has a market share of about 23.3 percent and
below the expected $0.19. Net revenue fell to
has four casinos. Analysts say the company
$1.05 billion, or 22 percent. The company says
has had a lower room occupancy than rivals
its Studio City property is on time and on budget,
in Cotai, meaning it has more potential for
though UBS analysts see a mid-Q4 opening as
revenue growth if it fills the rooms. The
more likely than Q3.
ADS, earnings were $0.16 down from $0.45 and
company’s new developments include the $3
requested further labor from the government to help bring forward the opening date, which
Wynn Macau (1128:HK)
Has an 12.6 percent market share and currently
was originally planned for late this year. Sands
has one casino. while its $4 billion Wynn Palace is
China also recently expanded retail space at its
under development. Q1 earnings were well below
Sands Cotai central property, with the addition
analysts’ forecasts and the company slashed its
of 150,000 square feet of space, with shops
dividend to $0.50 from $1.50
designed to appeal to families.
Overall net revenue fell to $1.1 billion, missing
In Q1, the group’s results came in weaker
estimates for $1.2 billion, with Macau revenue
than expected, with adjusted property EBITDA
down 37.7 percent. Adjusted earnings for the
at Sands China falling 43.4 percent to $531
quarter were $70.7 million, or $0.70 a diluted
million, while net income at the unit fell by
share, slumping from $236.7 million, or $2.32 a
more than half. Total revenue fell by 34.9
share in the year earlier quarter. That’s significantly
percent to $1.77 billion.
below the $1.33 analysts had been looking for.
Rolling chip volume at its flagship Venetian
In Macau, adjusted property EBITDA dropped
Macau property declined 44 percent to $8.52
almost 45 percent to $212.3 million, mainly due
billion, while non-rolling chip drop was also
to a drop in VIP revenue. Table games turnover
lower, with a 22.5 percent decline to $1.87
in the VIP segment fell by half to $17.1 billion.
billion.
The decline in revenue was exacerbated by a drop in VIP tables in the quarter to 252 units, from 279 in the same quarter a year earlier due to a
Asia Gaming Briefings | May 2015
market segment. Drop in the mass segment was $591.9 million, down 14.5 percent. to 97.5 percent compared with 98.1 percent a year earlier, while revenue per available room slipped 2.4 percent. Wynn said in Q1 it invested about $374.3 million in its new Cotai property, the Wynn Palace, taking the total investment to date to $2.2 billion. The total cost of the project once completed will be $4.1 billion. The company said it plans to open the resort, which will feature a 1,700-room hotel, a performance lake, casino, spa, retail and other outlets, in the first half of 2016. It was aiming for about 500 table games.
MGM China (2282:HK)
Has a 10.4 percent market share while operating a single casino in the peninsula. Its new developments include the MGM Cotai, which is a $2.9 billion project scheduled for completion mid 2016. The company recently agreed with lenders to upsize its credit facility to $3 billion to provide financial flexibility to continue to invest in MGM Macau and develop its Cotai property. It also extended the maturity on the credit. MGM China’s Q1 revenue dropped 33 percent to $630 million with main floor table games revenue decreasing 13 percent and VIP table games revenue decreasing 45 percent. MGM China’s adjusted EBITDA was $148 million, a decrease of 38 percent. l
billion The Parisian, which is now expected to come online in mid-2016. The company has
The company also reported weakness in the mass
Junket operator Iao Kun expects Macau’s already highly competitive VIP gaming promotion business to get even more intense as numerous new projects begin opening from the second quarter of 2015. Macau’s Secretary for Economy and Finance Lionel Leong Vai Tac says the government will stick to its decision to not allow the average annual growth rate of the city’s gaming tables to exceed three percent. The government may also impose a 21 million cap on visitor arrivals from mainland China.
GREATER CHINA 10
MAINLAND CHINA
China clips online lottery wings China’s clampdown on online lottery sales is likely to have a significant impact on the country’s booming lottery market in the short term, but shouldn’t be read as a signal that Beijing is seeking to permanently shut down remote lottery distribution, experts say.
E
-commerce giant Alibaba on Tuesday
anonymous winners of large prizes, delays in
said it was suspending sales of online
draws and reports of misappropriation of tax funds.
lottery tickets in China, following in the
The government began an independent audit of
footsteps of New York Stock Exchange-
18 of the provinces late last year, which concluded
GROSS GAMING REVENUE Y14 Total sales RMB 382.38b ($61.6b)
+23.6%
Welfare Lottery Sales RMB 203.96b
+16.7%
Sports Lottery sales RMB 176.4b
+32.8%
March Y15 RMB 30.81b
-6.3%
Chinese authorities will keep records of its citizens when traveling abroad to ensure they are not misbehaving and that includes gambling. Chinese tourists found to be disruptive and anti-social, which includes damaging public facilities and gambling, will be dealt with by provincial and national authorities to improve their conduct when they return home.
listed online lottery company 500.com, Tencent
in January. One of the outcomes of this audit
and others.
was that in mid-January all the provinces were
Although estimates vary on how much of the
instructed to examine their past practices and
RMB 382.4 billion ($61 billion) in 2014 sales
report on their behavior to the national level
were actually generated online, the amount is
by 1st March, which in turn lead to the current
thought to have been “substantial.” However,
suspensions.
industry insiders say the existing system was
A formal report on the outcome of the audit is
badly flawed and the suspension may pave the
expected to be published in the near future and
way for a much needed overhaul.
that may give official confirmation on what was
Both legal lotteries in China, the Welfare Lottery
wrong with the prior model and how the industry
and the Sports Lottery have a national brand and
will move forward.
national regulation, but the day-to-day operations
“The Ministry of Finance has already stated
are organized at the provincial level. The province
(2013) that they want this channel to exist. And
is also responsible for generating sales.
other stakeholders do too: the provinces want
Both lotteries have one provincial administrative
more tax, the national lotteries want to preside
center per province and these centers approve
over growing sales volumes, the lottery players
individuals, usually mom and pop stores, to sell
want a convenient way to play the lottery,”
tickets. They are usually paid a sales commission
the expert said, adding that the problem is the
of around 5-6 percent which varies according
current system doesn’t work.
to volume.
Due to technological challenges, it’s most likely
In recent years, the administration centers have
that once the audit is completed, the first concrete
augmented their store network by signing retailer
steps to a new remote lottery distribution model
agreements with companies selling online.
will be via provincial smart-phone lottery trials for
Those companies are able to sell a ticket to a
new mobile-only games, as opposed to a national
client anywhere in the country, breaking the link
internet model for existing (in-store) games.
between player location and processing province.
The technological challenge of this model is
Since the marginal cost to the admin centers of
more modest than developing a national internet
internet sales in this model is lower than in the
platform. Trialing such systems in provinces is
store environment, typically the commissions are
also more palatable for the national authorities
set very high, often at more than 10 percent. The
because it is less visible and lower risk, as if one
a national platform that would oblige potential
system has led to higher costs and duplication.
system does not work the damage is limited and
players to create a unique customer account.
“In which other industry has the advent of the
it can be discarded .
Players would use this account to purchase
internet raised the cost of distribution versus
There are plans in place to allow some provinces to
tickets from licensed third-party online retailers
brick & mortar?,” an industry insider said. “There
trial their own approved for-mobile-only lottery
who would process the tickets through the new
is a functioning internet channel in the China
games on mobile smartphone lottery systems.
national platform and receive a commission
lottery market but each and every transaction
Only players from the province in question will
from the national platform – in this model the
is attracting 2x normal commission levels. That
be able to register for, download and play the
provincial admin centers will not be involved
money could be going to prizes or taxes – it
app. However, no trial has yet been approved
other than to receive their share of the tax revenue
need not to go to third-party websites to create
and none will be launched without relevant
as determined by the identity (and registered
needless competition between provinces for
approvals, including the Ministry of Finance.
address) of the player.
identical products.”
As far as the internet is concerned, both the
Both the Welfare and Sports lotteries are working
The system has also been hit by a series of
national Welfare and national Sports lottery see
to deploy such a technology platform. The timing
high-profile scandals, including suspiciously
the web as a national channel and intend to build
of when this will be ready is uncertain, however. l
Asia Gaming Briefings | May 2015
Chinese National Police shut down the PokerStars Asia Pacific Poker Tour, the Nanjing Millions, following suspicions of illegal gambling and have started an investigation. “All the people who took part to the event are now asked to register with the authorities and and cooperate in the investigation,” a note placed by authorities at the entrance of the Jiangsu Wutaishan Sports Centre said.
GREATER CHINA 11
HONG KONG
Hong Kong commingling set for expansion The Hong Kong Jockey Club’s first year of commingling its multi-billion dollar pools with overseas totalizator companies has exceeded expectations and looks set for further expansion.
O
verseas totalizator companies, which
“Getting the deal down is the easy part – it’s
have long-admired the HKJC’s massive
the regulatory approval, legal due diligence that
liquidity, now have the chance to bet
takes time, then working with the tote interface
into their pools for the first time after
and making sure we can link up,” he said, adding
the club began commingling in April last year.
that there were “no boundaries” as far as how
Strictly speaking, there’s nothing new about
many operators could partner with the club. “We
“commingling”, two totalizator operators sharing
are open to any business agreement that makes
a common pool on the same event, but what has
sense for both the guest and the host. It must
been hailed as a “game changer” by horse racing
meet the requirements of the legal framework
officials is the Hong Kong Jockey Club opening
and the technical capability to allow for the tote
up its monster tote pools to foreign operators
interface. There is plenty of room for further
Hong Kong racing has been beamed into other
expansion.”
betting jurisdictions for years, but customers that
Jockey Club turnover is booming and officials
previously have bet into separate and comparably
had limited expectations of what type of impact
small pools now can share in the overall stability
commingling would have on the bottom line
and substantial pay-outs provided by the HKJC’s
from a percentage standpoint. Nader admits
massive liquidity.
commingling was intended more as a promotional
The HKJC’s per race hold is by far the biggest in
vehicle than a search for more money, but he
the world of more than HK$135 million ($17.4
said the numbers had “exceeded expectations.”
million) per race.
“It was about exposure, we’ve lifted the standard
What was holding Hong Kong back from allowing
of our racing and we wanted to take it to a wider
outsiders to bet directly into its pools were archaic
audience and to do it in the right way,” said
laws that “double taxed bets ... at both source
Nader, who pointed to the fact the Jockey Club’s
and destination,” explained Jockey Club head of
two meetings per week are now being beamed
racing Bill Nader, who is returning to the U.S.
into 57 million American homes through the
HKJC 2013/2014 Racing turnover HK$103.9b ($13.4b)
+10%
Tax contribution HK$19.58b
+16.7%
Average turnover per races HK$132m Net margin $4.42b
+32.8% +7.4%
The Hong Kong Jockey Club is reorganizing and reshuffling management to support its future expansion plans. With effect from 1 August 2015, the current Racing Division will be divided into the Racing Business and Operations Division and the Racing Authority Division. The club appointed Anthony B. Kelly to the position of executive director, racing business and operations, and Andrew Harding to the position of director, racing authority. Genting Hong Kong posted a 30-percent drop in 2014 profit to $384 million from $551.9 million the year before. The company, which principally operates casino cruise ships, reported revenue of $570.8 million for 2014, up 2.9 percent from 2013. Gaming revenue increased 10.5 percent to $348.9 million “mainly due to a higher blended hold rate despite reduction in gaming volume,” the company said.
when his current contract expires. “Under the
recently merged HRTV and TVG networks. “We
old Hong Kong laws, the bet would be taxed in
wanted people overseas to bet into our pools,
Hong Kong as well as overseas. We met with
but we wanted it done in the right way. If you
multiple branches of Hong Kong Government
are overseas and betting into a smaller pool,
and reached an agreement that the bet should
you aren’t getting the full benefit of the Hong
only be taxed at source, where the bet is placed,
Kong product – which is not just the quality of
in line with the global policy governing simulcast
our racing, it is the great liquidity that is offered
wagering. We’d been looking to do this for years,
in our wagering pools. It now resides at their
and this is a game changer – as the door is now
fingertips.”
open for countries to participate in the biggest
Racing turnover in Hong Kong rose by almost 10
ocean, but those numbers aren’t insignificant,”
per race pools in the world.”
percent last season to reach HK$103.92 billion
Nader said. “Particularly to other jurisdictions.”
First to begin commingling with the HKJC was
– with midweek fixtures now regularly topping
Indeed, HK$84 million per week could represent
the U.S., kicking off late last season, followed
HK$1 billion and turnover hovering around
a feature race weekend in some major racing
by operators from neighbouring Singapore,
$1.3-1.5 billion for a 10 to 11 race weekend card.
jurisdictions.
Australia, Macau and New Zealand joining in at
The turnover from commingling represents around
Nader believes the incoming numbers will
the start of this racing season from September.
3 percent of HKJC’s total handle on horse racing
grow as customers become more familiar with
Nader said the Jockey Club limited the intake to
so far - $32 million on Wednesday nights and
the product – even though the time difference
five totalizators in the first year to ensure that
$52 million on Sundays. “To be honest, at first
between the US and Hong Kong could limit the
the necessary framework was in place.
we thought the numbers would be a drop in the
ultimate upside. l
Asia Gaming Briefings | May 2015
GREATER CHINA 12
TAIWAN
The final piece of the Taiwan casino gaming puzzle Taiwan’s draft act to legalize casino gambling on outlying islands was submitted by the Executive Yuan (EY) of the country’s government to the Legislative Yuan (LY) two years ago, and stands a good chance of being passed in this legislative session or the next. William Bryson*
T
he Tourism Casino Administration Act has had
While there are a number of differences of opinion with
a first hearing, a public hearing and has seen
respect to the Act’s provisions, the most important points
comments/proposed revisions from Taiwan’s main
of political disagreement center on:
opposition party, the Democratic Progressive Party,
as well as Legislator Chen from Matsu, the only offshore island that has approved the development of casinos. After commentary by the DPP, the Act was referred to
Number of casino licenses The draft Act provides that the number
of casino licenses to be issued for each offshore island
cross-party consultations to resolve the articles of the
will be determined by the Regulator and approved by the
Act on which the EY and the DPP disagreed. The time
EY, but the DPP wants a limit of two per island;
period for cross-party consultations has expired, and the Act remains in the Legislative Yuan and on the EY’s priority legislation list. *William (Bill) Bryson is a
1.
Moreover, there is no major political opposition to the
2.
Term of casino licenses The Act provides for 30-year license terms, whereas
the DPP wants 15-year terms. There is agreement on all
creation of a casino gaming industry on Taiwan’s offshore
sides (other than industry), however, that the government
islands. This bodes well for the enactment of the Act
can reserve the right to revoke a casino license on a no-
by the LY in the near term and the creation of a viable
fault basis. There is also political agreement that a casino
casino gaming industry in Taiwan in the medium-term.
license cannot be pledged or mortgaged, though industry
can be reached at wbryson@
However, as noted above, the draft Act is still under
has commented on the effect that this prohibition may
globalmarketadvisors.com
political negotiation, meaning it is likely to change before
have on the tourism gaming business’ ability to finance
it is passed by the LY.
the project;
Senior Advisor at Global Market Advisors and a frequent speaker on gaming topics in Asia. Bill
Asia Gaming Briefings | May 2015
GREATER CHINA 13
GROSS GAMING REVENUE Tourism arrivals Y14 9.1m Y15E 10m Public Welfare Lottery Y14 NT$132.2b ($4.3b)
The casino gambling bill provides for a robust program of self-exclusion, governmentordered exclusion, and thirdparty exclusion, including exclusion of gamblers by family members and creditors to allay concern over problem gambling. Licensees will pay a contribution of 0.5 percent of GGR to a Gambling Addiction Prevention Foundation.
3.
Taxation
issues to an unnamed “designated responsible
In addition to the normal corporate income
agency.” Both the DPP and industry have
tax rate of 17 percent, the draft Act proposes
suggested that the DRA should be designated
GGR-based taxes of a national-level special
in the Act. The most likely DRA is the Tourism
permit fee of between 7 percent and 9 percent,
Bureau, though industry has commented that
a local-level special gaming tax of up to 7
a new agency should be created.
percent, a 0.5 percent contribution to social
Overall, the Act provides for a robust licensing
welfare funding, and a 0.5 percent contribution
and problem gambling regime consistent
to a gambling addiction prevention foundation
with Singapore. The draft submitted to the
to be formed by the Regulator. The DPP has
LY in 2013 is likely to be found acceptable by
proposed taxes which potentially total up to
foreign casino operators and their regulators,
62 percent of GGR. Industry has, of course,
provided that the revisions proposed by the
objected to the DPP’s tax proposal, as has
DPP with respect to paid-in capital, licensing
the EY;
term and taxation are not ultimately approved
4.
Taiwanese low cost carrier V Air has begun operating flights between Taipei and Macau, a route growing in popularity among airlines. V Air, a low cost carrier unit of Taiwan’s TransAsia Airways, will run the service three times a week to begin with then later increase it to a daily operation in early June, Macau press reported.
by the LY.
The Annex of the Act also provides that
Under separate legislation, any offshore islands
gaming winnings will be exempt from
who want to develop casino-based integrated
personal income tax for a period of 20 years
resorts will need to hold a referendum. In past
after the first gaming license is issued. The DPP
votes on the issue, the island of Penghu defeated
objects to the 20-year exemption.
the proposal while the voters on Matsu, the smallest of the three islands that would be likely
The Draft Act also provides that the regulator
to host casinos, passed such a referendum.
for tourism casinos under the Act will be the
Once the Act is passed by the LY, it is likely that
Ministry of Transportation and Communications
Penghu andKinmen will also consider holding
and provides for delegation of certain regulatory
referendums on casino gaming. l
Asia Gaming Briefings | May 2015
NORTH ASIA 14
JAPAN
Japan lawmakers upbeat on casino plan chances Japanese lawmakers have re-submitted a bill for casino gaming to parliament and there is renewed anticipation for the passage of the Draft Integrated Resort legislation. Although the previous special session ended without the passage of the bill, there have been notable developments at both the federal and regional levels.
David Rittvo*
T
he Innovation Group has been tracking the
depending on the location and operational dynamics.
process in Japan for the past three years, including
The smaller regional casinos have been pegged at between
meeting with stakeholders in Tokyo, Osaka,
$350 million and $1 billion, depending on the development
Yokohama and other smaller regional markets.
size and scope.
Earlier this year the Yomiuri Shimbun, Japan’s largest
Seeing as the current legislation includes a lot of moving
newspaper announced that the federal government is
variables, including the potential to limit local access
currently considering draft legislation that includes the
and/or require an entrance fee, as well as potentially
possibility of developing large-scale IR’s in Yokohama
limiting access to junkets and credit, exact estimates for
and Osaka only by 2020, in time for the Olympics.
the market are difficult to ascertain at this time.
The draft legislation did not mention Tokyo as a possible
Regardless of the exact legislation, the potential IR
other development. There was also no mention of a
developments in either the Tokyo Metropolitan Area
regional casino development in this announcement, but
or Osaka will be the single largest property, in terms of
any IR is most likely to be placed in a smaller city away
revenue generation, in the world.
from the large city zones so that the developments do
The regional level effort has seen the most progress since
not cannibalize one another.
the last Diet Session. As most are aware from related press,
president of international division
The sizing of the Japan market remains a moving target
Okinawa, considered by many to be a serious candidate
of The Innovation Group (IG) and
due to the fluid nature of the legislation being considered.
for the first regional casino, has decided not proceed.
an AGB Advisor
Analysts, including Jay Defibaugh from CLSA, have provided
As a result, The Hokkaido prefecture has emerged as the
estimates that ranged between $4 billion and $10 billion
leading regional casino candidate. Similar to Osaka, Hokkaido
*David Rittvo is executive vice
Asia Gaming Briefings | May 2015
NORTH ASIA 15
CASINO GGR ESTIMATES Pachinko annual revenue $153b (Source: Japan Productivity Center)
Y20E (UBS)
$9.4b
Y25E (CLSA) Y30E (UBS)
has initiated its regulatory, development and
in communicating its ability to be the host city
information gathering process. In late 2014, the
for a large scale IR development for the region.
prefecture released a request for information
In 2014, Tokyo Governor Yoichi Masuzoe stated
to over 25 casino companies and developers.
he would like to concentrate on the Olympic
The request included background information
developments and continue his information
regarding the operation of casinos, a view on
gathering regarding the social and economic
potential development sites around Hokkaido
impacts of IR developments.
and background on gaming potential for the
In light of Tokyo slowing down its development
regional market. The outcome of the RFI
process and the renewed interest on federal
should begin to shape Hokkaido’s next steps
level support, Yokohama has continued to
for the development process and position it for
progress. Last week, The Yokohama City
continued momentum once the legislation is
council submitted comprehensive plans for
passed on the federal level.
the waterfront development that would include
Meanwhile, activity in Osaka continues to
an IR. The sites would allow the IR to take
move forward on both the governmental and
advantage of Tokyo Bay, Yokohama’s relative
private sector fronts. A group of Osaka based
location to Haneda International Airport and
businesses, under the umbrella of Kansai
strong transportation access.
Association of Corporate Executives, KACE,
Federal bureaucrats are also continuing their
has released plans for a large-scale IR to be
information gathering trips and research to other
developed on Yumeshima Island.
IR markets. These markets include Singapore,
Both the Osaka City and Prefecture governments
Las Vegas, Atlantic City and Europe. The goal is
are continuing their pre-development, planning
to gather the best practices from established
and information gathering phases. Our impression
IR markets and implement those into the draft
is that Osaka is positioning itself to be ready
legislation and second gaming bill.
to start the lengthy development process once
Whether the legislation is passed is yet to be
legislation is passed on the federal level, with
determined, but 2015 could be a make or break
the hope of being the first Integrated Resort
year for the stakeholders involved. Should the
in Japan.
legislation pass, the scale and energy around
In the greater Tokyo and Yokohama area, it
the development opportunity and resulting
appears that Yokohama has increased its profile
product should be unlike anything seen in Asia. l
$40b
$18.4b
Aristocrat Leisure announced that following a strategic review of its Japan businesses it will close its subsidiary KK Aristocrat Technologies and cease the development of new pachislot games. “After thorough consideration of alternatives, and significant management effort aimed at reducing the performance volatility of the Japan business, we have concluded that our best option is to exit the Japan market,” said Aristocrat CFO Toni Korsanos, adding the pachislot segment has become “less relevant… with no scope for valueadding creative or technical synergies.” Sega Sammy Holdings is restructuring with the loss of 300 regular employees and 100 fixed-term employees in Japan, the company said in a filing. The company, formed after video games giant Sega merged with pachinko machine manufacturer Sammy, has revised its earnings for the fiscal year ending in March from $33 million profit to a loss of $125 million due to the restructuring
Asia Gaming Briefings | May 2015
NORTH ASIA 16
SOUTH KOREA
China promise lures investors South Korea’s casino market continues to attract foreign interest from operators lured by the country’s proximity to China and expectations for a continuing surge in travel from the mainland.
A
GROSS GAMING REVENUE GGR 2014 (including lottery and racing) KRW19.87 trillion (US$17.64b)
+1%
$2.76b
$3.0b
$3.25b
Y14E
Y15E
Y16E
(Source: JP Morgan)
lthough locals are only permitted
company through unit Solaire Korea Co.
to gamble in one of the country’s
It is Bloomberry’s second announcement of a
17 casinos, that hasn’t dampened
property purchase in the country this year after
interest in bidding for at least two
the company in January signed four deals with
licenses expected to be offered up by the
landowners on Korea’s Muui Island, which is
government this year.
adjacent to Silmi Island.
Seoul has chosen to embrace the concept of
Solaire Korea also signed a deal with shareholders
integrated resorts as part of a plan to boost its
of Golden & Luxury Co. to buy as much as 92
tourism industry and is expected to try to create
percent of the company, which owns and
a gambling hub in the Incheon area.
operates T.H.E. Hotel & Vegas Casino on Korea’s
A large part of the appeal comes from the
Jeju Island.
growing numbers of Chinese visitors to South
“We are excited at the prospect of Solaire
Korea. About 6.1 million mainland travelers
setting up a base in Korea,” Razon said in the
went to South Korea last year, an increase of
statement. “This is our first venture outside
42 percent, according to data from the Korea
of the Philippines, and the possibilities for
Tourism Organization. Citi Research is predicting
expansion in this country are promising.”
a further 35 percent jump this year.
Jeju Island, known as a honeymoon destination
Last month, the Mohegan Tribal Gaming
for South Koreans, has become particularly
Authority, which operates the Mohegan Sun
popular with Chinese travellers.
casino in Connecticut, became the latest to
Chinese property developer Landing International
throw its hat in the ring for a South Korean
is planning to build a $2.2 billion resort there
license. It plans to partner with Mohegan Sun
in partnership with the Genting group.
Pocono and Resorts Casino Hotel and Incheon
The plans include foreigner-only casino of
International Airport Corporation to develop
10,683m2 area, a hotel with 2,038 rooms,
a hotel-casino resort as part of a “gateway
condominiums with 1,518 rooms, a water park
entertainment city” in South Korea.
and theme park for completion by 2018.
The planned resort will include the world’s
Half of the Korean foreigner-only casinos are
first private jet terminal that connects to a
located in Jeju and operators there have lined
casino resort, a Korean cosmetics and beauty
up Mandarin-speaking staff and VIP treatment
hub, a two-tower luxury hotel complex with
for high-end players. The island has witnessed
1,000 rooms, an indoor-outdoor amusement
an addition of dozens of junket operators and
park, and an entertainment venue with seating
their agents in the past year or two, according
for 20,000.
to a study by Kyunghee University in Seoul.
The company will be competing with Hong
Similar to those in Macau, retail shops have been
Kong’s Chow Tai Fook Enterprises, which wants
set up in the Korean casinos to offer gaming chips
to invest $2.6bn in a casino project in Incheon,
on loan and to circumvent China’s regulations
that will include a hotel, shopping mall and
on transferring currency out of the country.
conference facilities.
Although direct casino marketing is now banned
Construction is expected to proceed in two
in China, junket operators advertise heavily
the overseas casino trips by Chinese visitors,
phases, set to be completed in 2019 and 2022.
on non-gaming amenities such as concerts,
explicitly citing the example of Jeju Island,” it
Billionaire Enrique Razon, head of Bloomberry
nightclubs, and golf tournaments.
said in its 2015 Global Gaming report.
Resorts has also announced major expansion
However, Citi analysts warn that the popularity
The analysts also pointed to the “lurking” risk
plans in South Korea -- the group’s first
of Jeju with Chinese gamblers has not escaped
of a 10 percent leisure tax on net casino revenue.
expansion out of the Philippines.
Beijing’s attention.
However, they said the proposal appears to have
Razon will buy the 21-hectare (52-acre) Silmi
“According to Maeil Business, the Chinese
been delayed for now and they see the risk of
Island to develop and entertainment and leisure
government has recently raised concerns about
such a measure passing as low. l
Asia Gaming Briefings | May 2015
Foreigner-only casinos $1.25b
+0.3%
Chinese inbound travel Y15E $1.25b
+35%
(Source: Citi Research)
Landing International has abandoned plans to buy the Alpensia Casino and Resort in Pyeongchang, saying the sale terms and conditions were not satisfactory. The company had agreed to pay about $112 million for the resort in the area that will host the 2018 winter Olympics. Paradise is planning to increase Incheon capacity by 30 percent in March, Walkerhill by 25 percent in June and Jeju Grand by 100 percent in December, which will be a 15 percent gain for the firm as a whole, Morgan Stanley says. Grand Korea Leisure will expand its COEX site by 40 percent in June, which is a 16 percent increase for the firm’s total capacity.
3-4 EVERYTHING ABOUT GAMING BUSINESS AT EXPO-FORUM
Betting Awards 2015 Chooses the Best in Betting Business
NORTH ASIA 18
RUSSIA
Primorye activity heats up, with $1.1b in planned new investment The gambling zone of Primorye in Russia’s Far East continues to pull ahead of rivals, with the expected summer opening of Summit Ascent’s integrated resort and news of two other major investments worth more than $1 billion.
T
he zone, which boasts one of the
“Honestly speaking, today our people are
Diamond Fortune Holdings Prim, led by
lowest tax rates amongst all global
tightening their belts, so I do not think there
Philipp Ostrovski, a former top manager of
gambling jurisdictions, has proved
will be a mass pilgrimage. But when it comes
the Russian sports car manufacturer Marussia
popular amongst both foreign and
to the Chinese, this is a special case, and
Motors, plans to invest over $900 million
Russian investors, helped by its proximity
Primorye is aimed only at them,” Yevgeniy
into the zone. The project involves the co-
to northern China.
Kogan, managing director of the Moscow
owner of the Liga Stavok betting office, Yuriy
The area is close to the target Chinese feeder
partners investment company said.
Krasovskiy, and a group of undisclosed Asian
markets of Heilongjiang, Jilin and Liaoning
At the beginning of April, Primorye (Maritime
investors, Krasovskiy told Russian business
provinces, as well as South Korea and Japan.
Territory) authorities announced the signing
daily Vedomosti.
The area has a total population of over 100
of an agreement for two investment projects
The project will be known as the Golden Gate
million people, accounting for 8 percent of
with Russian investors Diamond Fortune
entertainment complex, with a total area of
China’s total population.
Holdings Prim and Royal Time.
300,000 square metres, comprising hotels,
Asia Gaming Briefings | May 2015
NORTH ASIA 19 has faced delays. The Russian government agreed on the zone in 2009, but the area lay barren for years until investors began signing on to the project in 2013. The first hotel, that of the First Gambling Company of the East, was supposed to be launched in autumn 2014, but the official
GROSS GAMING REVENUE GGR Y08 $7.8b Illegal market (E) $15b Primorye Y22E $5.2b Azov Y14E $300m
opening has been postponed multiple times. The First Gambling Company of the East, Summit Ascent Holdings, Lawrence Ho’s Melco International and Elegant City are partners in
Summit Ascent Y16E
$375m
the deal, investing more than $700 million. In April 2015, the regional government said the company will now open its four-storey hotel to the public in mid-July prior to the Eastern International Economic Forum in Vladivostok, which will be held in August. However, The First Gambling Company of the East CEO Craig Ballantyne told Vladivostok news that the opening has been delayed to August 1st for the official launch, with the full
Y20E
$1.7b
(Source: Goldman Sachs)
Summit Tigre de Cristal VIP win/table/day $31,000 (Source: Citi)
launch not expected until six weeks later. He blamed “hidden” clauses in the law concerning changes to the project, construction, migration policy, delivery of materials and certification, for the delays. In a Hong Kong Stock Exchange filing this month, Summit confirmed that construction is nearing completion on the resort. Initially, there will be a 140-room hotel and a casino, which will have 25 VIP gaming tables, 15
The Russian government plans to shut three casinos in Azov City this year in a bid to strengthen the country’s other gaming zones, awarding about $145 million to each of the properties to soften the blow, according to state-news service Tass.
mass-market baccarat tables and 800 slots. To complete the project, 500 builders are currently working in two shifts. The recruitment casinos and shopping centres, to be built
of hotel and casino employees began in winter
over a period from 2016 to 2022.
and coaching is underway.
Royal Time Primorye is an affiliated company
Authorities are expected to invest one-billion-
of Royal Time Group, which owns gambling
roubles to help improve infrastructure.
facilities in Azov-city based in Krasnodar
Eventually, the gaming zone is slated to
Region, which is now subject to closure. The
contain 16 hotels with casinos, a yacht club,
company plans to invest more than $200 million
a marina for 65 vessels, a ski trail, a trade and
into the construction of its Phoenix resort in
exhibition centre, and other facilities. It will
Primorye. The company’s sole shareholder is
have three stages, with the first planned to
Cyprus-based Gucen Entreprises Ltd., owned
be completed in 2016. The remaining two will
by Russian businessman Rashid Taymasov.
see their deadlines in 2019 and 2022.
The opening for the first hotel and an
According to officials, the total investment
entertainment centre with a total area of
will be about $2.2 billion dollars.
50,000 square metres is scheduled for 2017.
In January 2015, Citi analysts wrote in their
All three stages of construction are targeted
Global Gambling report that the Primorye
for completion by 2021. The total area of
zone is the most attractive of the Russian
the entire resort, which will include a water
gambling zones due to its proximity to Asian
park and a concert hall, comes to 250,000
markets, low taxes and favourable visa policy.
square metres.
The tax system is based on monthly fees, which
Royal Time was the first to open a casino in
work out at about 125,000 (approximately
Russia after the authorities imposed a ban on
$2,400) roubles per gaming table and 7,500
casino gambling outside specially established
roubles ($140) roubles per gaming machine.
zones in 2009.
The report says that the low taxation will go
Despite the investment interest, even Primorye
a long way to ensure profitability. l
Russian Gaming Week in June will see the industry’s major players compete for coveted Betting Awards. Sports betting industry experts and journalists from Russia and abroad will be acting as judges and voting in each of the 10 categories, including Best Betting Network of the Year and Best Online Bookmaker of the year.
Asia Gaming Briefings | May 2015
SOUTH EAST ASIA 20
PHILIPPINES
Solaire Sky Tower shines as Philippines outperforms Asia The November opening of Solaire Resort and Casino’s new $450 million Phase 1A expansion, including its centrepiece Sky Tower, crowned an impressive year for the first integrated resort in Manila’s Entertainment City.
Asia Gaming Briefings | May 2015
L
ess than two years after launch in
with basic black.
March 2013, it has become the largest
The central focus is a two-storey lobby
casino in the country with a share of
atrium with an enormous skylight, twin
29.4 percent, according to Citigroup
waterfalls and a tropical garden. The lobby
research. But with Melco Crown Entertainment’s
boasts artworks by established and up and
City of Dreams now up and running and two
coming Filipino artists, some of which were
more integrated resorts slated to open in the
specifically commissioned by Solaire. Others
next two years, Solaire may struggle to keep
were from the private collection of Enrique
its current lead.
K. Razon, Jr., the chairman of Solaire owner
The latest phase in Solaire’s expansion aims
Bloomberry Resorts.
to boost the resort’s non-gaming amenities
“The Sky tower elevates Solaire yet another
and has a strong VIP focus. The Sky Tower
step higher to the very top tier of world-
houses a 312-room five-star boutique hotel
class integrated resorts and is a tremendous
tower, with suites ranging from 124 square
game changer in providing best in class guest
meters to as large as 936 meters.
experience,” Bloomberry president and chief
The interior was developed under the helm of
operating officer Thomas Arasi has said.
Solaire director for interior design Samantha
The expansion has also added a 1,760-seat
Drummond, using colors ranging from
lyric theater, boasting a superior audio-visual
sunsoaked orange and earth tones, tempered
experience to the country’s existing venues,
SOUTH EAST ASIA 21
GROSS GAMING REVENUE Y14 $2.5b
+16%
Y15E $2.71b
+32%
(Source: Citi Research)
Y16E $3.31
19%
Source: Morgan Stanley
$3.7b
$4.1b
$4.5b
$3.2b
Y15E
Y16E
Y17E
Y18E
(Source: JP Morgan)
Gaming table growth: 1,013
1,075
1,152
595
Y14
Y15E
Y16E
Y17E
(Source: Morgan Stanley)
a VIP-only Macallan Whisky and Cigar Bar, as
with 95.9 percent of revenue from gaming.
well as a range of up-scale dining facilities.
Non-gaming revenue in the nine-month
It has also expanded gaming facilities with
period rose 53 percent to P784 million.
visitation had reached the 4 million mark by
the addition of 10 gaming salons, with 66
Citigroup noted that Solaire’s growth
the end of the first quarter of 2014.
VIP gaming tables and 223 electronic gaming
fueled the estimated 9 percent increase in
However, the company is facing a strong
machines, bringing its total gaming offerings
the Philippines’ overall GGR for 2014. The
competitor. The City of Dreams Manila, a joint
to 295 gaming tables and 1,200 electronic
firm, which maintained its Buy rating on
venture between the SM Group’s Belle Corp
gaming machines.
Bloomberry, said it expects the growth to
and Melco Crown Entertainment, is widely
Solaire partnered with local property company
continue with the additional capacity from
viewed as a game changer in the Philippines.
Ayala Land to build an upscale retail promenade
the Phase 1A expansion.
City of Dreams had its grand opening in
which features 40 international luxury brand
The company has agreements with 50 Macau
February in time for the Lunar New Year. By
shops.
VIP junket operators to bring in foreign VIP
far the largest resort so far in the Philippines,
Currently Solaire averages 14,000 daily visitors.
players, and has also intensified its marketing
it also boasts a wider array of more family-
Coming back from a slow start, Bloomberry
efforts to attract premium direct VIP players.
oriented entertainment, such as a joint venture
reported net profit surged to P3.3 billion ($75
Solaire expects that the 1A expansion will
with Dreamworks to create an “Edutainment”
million) in the first nine months of 2014, from
lift the share of revenue from foreign junket
centre incorporating the studio’s most popular
a loss of P868 million in the same period in
operators to 70 percent from around 50 percent
animated characters.
2013. Total gross revenues climbed 127 percent
in 2012. Solaire also reported that mass gaming
Solaire also plans further expansion, though
to P22.439 billion from the P9.887 billion,
player sign ups increased to 304,000 and total
the timing may depend on market conditions.
Asia Gaming Briefings | May 2015
SOUTH EAST ASIA 22 Razon has said the Phase 2 expansion will be
Dreams Manila, the company’s total revenue
larger than the Phase 1 and Phase 1A combined.
grew to P430.2 million in 2014, representing
and chief operating officer Jorge V. Sarmiento
This Phase 2 expansion will increase the total
an increase of P377.3 million, from P53.0
told lawmakers.
number of table games to 650 and electronic
million in 2013.
The company had planned to spend $2-billion
gaming machines to approximately 3,000. It
The company said it had around 20,000 visitors
on the resort, with a scheduled opening for
will also add three new hotel towers with 1,500
on its first day.
the third quarter of 2015. The casino will
and architectural design,” PAGCOR president
rooms, an events arena that can accommodate
feature, state-of-the-art gaming facilities,
15,000 people, 35 new food and beverage
and an indoor man-made beach club covered
outlets, and additional meetings, incentives, conferences and exhibitions (MICE) and retail space covering 100,000 square meters.
OPERATORS
Resorts World Manila
by a huge glass dome, high-end and casual
Travellers International Hotel Group, a joint
halls and cinemas.
venture between Genting Hong Kong and
The group has also faced regulatory issues and
Alliance Global Group, has delayed the opening
needs a local partner to comply with Philippine
of the $1.1-billion Resorts World Bayshore
regulations on foreign land ownership. l
dining restaurants, upscale retail shops, trade
along Manila Bay to 2018. The company is however pushing ahead with the expansion of Resorts World Manila. As
Solaire Resort & Casino
Bloomberry Resorts swung to a profit in 2014 as revenue from its Solaire Resort and Casino in Manila’s Entertainment City surged. The company had net income of 4 billion pesos ($89 million), or PHP0.38 a share, compared with a loss of PHP1.3 billion, or PHP0.12 a share a year earlier. Total operating revenue almost doubled to PHP24 billion, of which PHP22.8 billion came from the group’s gaming activities. As of December 31, 2014, the group has 64 junket operators that actively bring in foreign VIP players. Solaire Rewards Club registered 406,000 members and visitation for the year had reached 4.5 million.
of the end of December, it had spent PHP3.3 billion pesos ($74 million) from the PHP16.8 billion raised through a recent share sale on the Phase 2 expansion program, which includes the construction of the Marriott Grand Ballroom with a planned seating capacity of up to 4,000, the construction of the Marriott West Wing, which will cater primarily to VIP guests and Marriott rewards members. It also includes related facilities, such as an underground parking lot, dining facilities and a golfer’s terrace. In total, PHP7 billion was allocated for the expansion plan. The company said it has also spent PHP2.7 billion of the PHP9.5 billion allocated for its Phase 3 expansion program, which involves the expansion of Maxims Hotel, the addition of two new hotels to be managed by Hilton Hotel and Sheraton Hotel, and the construction of
City of Dreams
Belle Corp and Melco Crown held the soft opening of the $1.3 billion City of Dreams casino resort project in December and the grand opening on Feb. 2. The resort features about 950 hotel rooms under the Crown Towers, Nobu and Hyatt brands, as well as a familyoriented entertainment center designed by
related facilities such as underground parking lots and a podium to house the gaming area and retail. Pagcor has approved new gaming capacity of 420 gaming tables and 4,148 gaming machines at the resort. At end-2013, Resorts World Manila housed 287 gaming tables for the VIP and mass markets, 1,822 slot machines and 210 electronic table games.
DreamWorks Animation. Melco has also teamed with the Ault Group to add two renowned nightclubs -- Pangaea and Chaos. The property features about 365 gaming tables, 1,700 slot machines and 1,700 electronic table games, catering to both the VIP and mass market. Melco Crown Philippines posted net losses of P6.30 billion ($141 million) for 2014, an increase of 156 percent on the prior year’s losses of P2.46 billion, due mainly to the impact of foreign exchange movements. Following the soft opening of the City of
Asia Gaming Briefings | May 2015
SunCity will be enlarging its footprint in Manila soon, with fixed room operations in City of Dreams and Bloomberry’s Solaire Casino, according to UBS. The group will commit to a total of 42 tables in the two casinos and plans to invest a total of HK$1 billion ($128.8 million) in initial cage capital in the city, Anthony Wong and Angus Chan wrote.
Manila Bay Resorts
Universal has requested an extension for the opening of its Manila Bay Resorts complex until the first quarter of 2017 and said it will invest a further $700 million. The company plans to increase the gross floor area by 97,000 square meters. The changes will result in “additional guest rooms and parking area and would also contribute to the strengthening of the structure
The Philippine Amusement and Gaming Corp. posted net income of P937.6 million ($21.1 million) for the first quarter of 2015, just over the P920 million reported in the same period last year. Revenues, however, dipped to P10.18 billion in the three-month period from P10.36 billion the year before, possibly on increased competition in the market.
SOUTH EAST ASIA 23
GROSS GAMING REVENUE Y14E $6.12b
+1%
Y15E $6.06
-1%
(Source: Citi Research)
SINGAPORE
Singapore fails to woo VIPs, headwinds seen on mass
$6.05
$6.25b
$6.56b
Y14E
Y15E
Y17E
(Source: Morgan Stanley)
Singapore’s two integrated resorts are showing no signs of benefiting from the exodus of VIP gamblers from Macau, which has boosted results from Cambodia to Australia, while the mass market may suffer this year from weakness in regional currencies.
L
as Vegas Sands’ iconic Marina Bay Sands
gaming revenues from mass-market visitors.
property saw a 4.6 percent decline in
“The weakening of those two currencies further
Q1 adjusted property EBITDA as casino
negatively impacts the tourist arrivals and
revenue declined 7.1 percent. Rolling
hence the revenue potential from the mass-
chip volume in the period fell 22 percent, while
market in our view.”
the non-rolling chip drop declined 4.2 percent.
Agarwal expects Singapore’s mass-market
Analysts see few new drivers for growth in
volumes to grow 5 percent this year compared
the tightly regulated Singapore market, which
with 6 percent in 2014.
appears to have plateaued five years after the
Genting Singapore reported a huge drop in
casinos opened.
net profit after tax in the fourth quarter last
Genting Singapore will expand capacity this year
year, falling 30 percent from S$118.9 million
with the opening of its 550-room Hotel Jurong,
($95 million) to $136 million compared to the
which it expects to help fuel player numbers at
same period in 2013.
its Resorts World Sentosa property, especially
The company’s gaming revenue fell 9 percent
in the mass market segment.
to $368.9 million, while non-gaming revenue
It’s also counting on non-gaming attractions
dropped 4 percent to $140.8 million. Adjusted
to help boost revenue. In the second quarter of
EBITDA declined 24 percent from $200 million
2015, Genting’s Universal Studios Singapore
in 2013 to $152 million last year.
will also launch its latest attraction, “Puss
Analysts at Maybank expect the group to report
In Boots’ Giant Journey,” while in April the
a decline of about 31 percent in Q1 EBITDA to
Battlestar Galactica dueling roller coasters
S$275 million. The company is also expected
returned. “These launches will present
to have ceded some market share in the VIP
opportunities for us to create events to boost
segment to Marina Bay Sands as it curbs credit
visitation to our resort,” executive chairman
to improve management of bad debts. RWS
Tan Sri Lim Kok Thay said in the company’s
had record $82 million in bad debts in 4Q14.
annual report.
Despite the general lack of enthusiasm in the
However, analysts say that the strong Singapore
investment community, Las Vegas Sands CEO
dollar in relation to Malaysia’s ringgit and
and Chairman Sheldon Adelson recently warned
Indonesia’s rupiah may put the property out
analysts not to write off the Singapore market.
of reach.
“To quote Mark Twain, the rumours of Singapore’s
“These two countries are significant contributors
demise as a world-class integrated resort
to Singapore’s mass-market volumes,” Macquarie
destination are both greatly exaggerated and
analyst Somesh Kumar Agarwal said.
certainly premature,” he said on a conference
Singapore’s casinos get about half their annual
call. l
Singapore Pools, Singapore Turf Club GGR five-year average $2.39b VIP tax 5% mass tax 15% Las Vegas Sands has expanded a glitzy promotional partnership with David Beckham to Singapore and the company’s US$5 billion Marina Bay Sands mega resort. Following on the heels of a major Macau campaign featuring the celebrity ex-footballer, the multimillion-dollar MBS campaign, dubbed “Never Settle” finds Beckham sampling an array of the iconic resort’s attractions in a two-minute film directed by Anthony Mandler. Lee Tzu Yang, deputy chairman of the Casino Regulatory Authority, took over as chairman from April 2nd. Lee takes over from Richard Magnus who is retiring after seven years. The ministry said Magnus played “a pivotal role” in the development of Singapore’s casino industry.
Asia Gaming Briefings | May 2015
SOUTH EAST ASIA 24
GROSS GAMING REVENUE Official lottery
Thailand
Thailand aims for lottery jackpot
Govt. target for reformed lottery Underground lottery
THB 20b ($625m)
THB 44b
THB 102b
(Source: Chulalongkorn University)
Thailand’s lottery system is facing major changes with amendments to gaming laws that may open the way for online sales to begin as soon as June, and almost double annual revenue to 44 billion baht ($1,354 million).
T
(GLO) estimates saying the “online lottery
Thai Government Lottery Office chairman Somchai
would increase revenue by 1.0 billion baht or 24
Sujjapongse, said the new distributors include
billion baht ($750 million) a year.”
operators of convenience stores, such as the
Gambling is illegal in Thailand, apart from the
units of international chains including 7-Eleven,
he government lottery operators earn
elected governments faced a strong backlash
around 20 billion baht ($625 million)
from thousands of sellers of the paper-based
annually with Government Lottery Office
tickets concerned over loss of income.
30
Y15E 30m +20%
25
20
Y14 tourism arrivals 24.78m
(Source: DB)
Customs Department directorgeneral Somchai Sujjapongse has resigned as chairman of the Government Lottery Office’s board after nine months, saying he will leave the problem of over-priced tickets to someone else. “More stringent measures might be needed. Given the scale of the problem, a government official might not have the mandate to deal with it. A man of [higher] calibre might be able to do a better job,” Somchai was cited as saying.
official state lottery and on horse racing through
Family Mart, Big C and Tesco Lotus.
the Royal Bangkok Turf Club. The official lottery,
The GLO, which has a monopoly over both online
worth about 20 billion baht a year, is based on a
and general ticket sales, issues 72 million tickets
paper ticket system that has seen few changes
for each draw. Totals vary but reports say around
since it was first introduced in 1917.
50 million tickets are sold to the public, while the
The legal lottery is now seen as creaking and
remainder are allocated for “charity purposes”.
antiquated and facing competition from a booming
Government spokesman, Sansern Kaewkamnerd,
illegal market thought to be worth 102 billion
said the legal amendments will maintain the
baht ($3.2 billion), according to Chulalongkorn
existing funds allocation that allow for 60 percent
University’s Center for Gambling Studies.
of revenue to be distributed for prizes. A maximum
But under amendments to the Government
of 20 percent will be allocated to state coffers, 15
Lottery Office Act (1974) steps are underway to
percent for administration expenses and 5 percent
introduce a broad new range of lottery products.
for a fund to buy back unsold tickets, with a
These include online lottery tickets sold through
further 3 percent or so to increase selling outlets.
convenience stores as well as by way of wireless
The Government has also introduced an amendment
portable online lotto vending machines carried
providing for the buyback of unsold tickets in a
by vendors.
bid to overhaul the distribution system. Ticket
The amendments still require approval from the
sales had earlier been dominated by powerful
military-backed National Legislative Assembly
syndicates, known as the “tigers”, who were
(NLA). No date has been set for the legislative
allocated almost 50 million lottery tickets.
changes to be considered.
The issue of unsold tickets was also cited by vendors
Nualnoi Treerat, an economist and author on the
as a reason for high mark-ups on the streets,
Thai gaming industry at Chulalongkorn University,
which in part sparked the military government’s
says the new gaming laws are designed to allow
decision to overhaul the lottery.
for other games of chance, such as an instant
Over the years powerful underwriters have
of 80 baht ($2.5). Tickets can be marked up by
lottery and a football lottery, likely to attract
emerged who buy directly from the GLO by way
as much as 40 percent on the streets. However,
younger gamers.
of quota. Thai gaming analysts say the “Tigers”
the policy failed after vendors complained of
At present the official state run lottery is drawn
syndicates face a challenge as their contracts are
higher costs and that they were unable to recoup
twice a month on the 1st and 16th day.
due to expire mid-year. GLO Chairman Somchai
sales from unsold tickets, which has now been
“There will be many, many products of lotteries
Sajjapong said the 48 million tickets allocated to
addressed in the new legislation.
coming on sale to cater for all tastes,” she said.
the ‘Tigers’ will be reallocated to retailers either
Chulalongkorn University’s Nualnoi says fears
The amendments to the official Lottery Office
as individuals or convenience stores
held by traditional ticket sellers are misplaced
Act have become possible under the military-led
The military-led government also attempted
as the government will increase the number of
government which took power in May last year.
to lower retail prices of the paper-based lottery
tickets sold by the thousands of sellers across
Previous attempts to introduce reforms under
tickets sold by vendors closer to the official rate
the country. l
Asia Gaming Briefings | May 2015
Notorious Bangkok gambling den, Tao Pun, has finally been closed down and may now be turned into a police station. The den has been raided at least five times, though without arrests, local media said. The property is reported to belong to an unnamed “influential figure.”
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SOUTH EAST ASIA 26
GROSS GAMING REVENUE
MALAYSIA
(Source: Morgan Stanley)
GST to crimp Malaysia gaming earnings Malaysia’s gaming industry is expected to report weaker earnings this year as the country’s first ever Goods and Services Tax comes into effect from April 1st, crimping revenue at a time of weakening consumer sentiment.
T
he tax has been under consideration by
“NFOs would continue to see tougher roads
the government for close to a decade
ahead...With GST looming, operators have
and was finally confirmed last October
expected sales to soften further to the tune of
by Prime Minister cum Finance Minister
roughly two percent this year,” said Maybank,
Y14
$1.88 b
Y15E
$2.04b
Y16E
$2.42b
NFOs Y14 $2.82b Gaming tables Y14 550 Gaming tables Y16E 587 Share of Asia market Y14 1.9% Resorts World Genting Q4 leisure and hospitality revenue
-2%
Najib Abdul Razak. The rate was set at six percent.
citing sources from three NFOs.
Berjaya Sports Toto and Magnum -- two numbers
Adding to the headwind is pressure from other
forecast operators (NFOs) listed on the Malaysian
illegal operators, which have cut into the market
stock exchange -- are facing the prospect of
share of Magnum and Berjaya Sports Toto.
lower revenue as well as lower margins this
“Channel checks reveal that in the north of
year, analysts said.
Peninsular Malaysia, illegal operators are operating
“The GST will have the dual effect of both forcing
from rented premises in small towns and in the
gamblers to reduce their bet sizes as well as
south of the peninsular, they are conducting
serving as an additional tax to the operators,
sales with handheld terminals. We understand
cutting earnings by an estimated 10 percent
their prize payouts are 10-20 percent higher than
altogether,” said Maybank Investment Bank
that offered by legal operators,” said Maybank.
in a report.
According to market observers, NFOs are expected
Magnum earlier this month gave its own warning
to bear the brunt of the new consumption tax as
that the tax was likely to have a moderating effect
some moves that had been considered to moderate
on sales. “With the implementation of the Goods
the impact of the GST have been abandoned.
and Services Tax on April 1, 2015 and the higher
One proposal had been to reduce the number of
costs of living from the government’s ongoing
class 4D special and consolidation prizes from
subsidies rationalisation programme, consumer
10 each to nine each, which would have reduced
spending is expected to continue to be weak,”
the theoretical prize payout ratio by about 190
it said. “The GST expense based on net gaming
basis points.
supplies – that will be absorbed by the company
Classic 4D accounts for some 70 percent and
– will have an impact on our profitability for the
85 percent of Berjaya Sports Toto and Magnum
coming financial year,” it said.
sales respectively.
NFOs pay an 8-percent gaming tax on total
However, the idea was killed following opposition
ticket sales and an 8-percent pool betting duty
from two of the three NFOs amid concern it may
on net revenue.
allow illegal operators to gain more market share,
The NFOs had already reported weaker revenue
said one analyst.
even before the GST, as rising fuel prices and
Had the move been implemented, Berjaya Sports
higher electricity tariff rates lead to smaller
Toto and Magnum would have seen their earnings
bet sizes. Last year started with a 15 percent
before interest, tax, depreciation and amortisation
electricity tariff hike on January 1, followed by
(Ebitda) margins improve sufficiently to negate
the 20 sen per litre fuel price hike on Oct 2, 2014.
the impact of the GST, the analyst added.
could further reduce discretionary spending,
Magnum’s 2014 revenue slipped to RM2.88
Alliance DBS in February pegged the Malaysian
which could in turn have a negative impact
billion from RM2.99 billion the previous year.
gaming sector as being sluggish for the foreseeable
on Genting Malaysia’s domestic leisure and
In, the nine months to end January, Sports Toto
future on weaker consumer sentiment and the
hospitality operations, as well as NFO ticket sales.
saw revenue decline 4.3 percent year-on-year.
looming GST threat.
It warned that both Genting and NFOs would
Analysts estimate gross gambling revenue from
“We remain convinced there is little scope for
have to fully absorb the GST.
NFOs last year at about RM10 billion, with Genting
Malaysian gaming stocks to re-rate in the near
However, “the impact will be less severe as
BhD, the only casino operator generating about
term,” said the research house, adding that the
previously feared because the computation
RM6 billion.
extended weak domestic consumer sentiment
would take into account prize payouts,” it said. l
Asia Gaming Briefings | May 2015
Genting says about one third of the 1,300 rooms under its First World Hotel Tower 2A development were opened at the end of 2014, with the remaining rooms to be available by mid 2015. The group expects the next phases in its integrated tourism plan to open in 2016. It is also planning special promotional events to celebrate the group’s 50th anniversary. Malaysian authorities recently disposed of gambling machines and other items worth RM5.4 million ($1.5 million) that were seized in operations to crack down on illegal activity. Eight gambling machines estimated to be worth RM20,000, computer products and telecoms devices were seized in nine operations from July last year to March this year.
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SPECIAL FOCUS 28
VIETNAM
Ho Tram eyes locals license, major expansion *George Styllis is the Asia Editor for AGB based in Phnom Penh. He authors this issue’s Focus on the IndoChina jurisdictions.
Asia Gaming Briefings | May 2015
George Styllis*
Along Vietnam’s coastline in Ba Ria-Vung Tau Province, the verdant hills of The Bluffs golf course rise and fall to form undulating shapes on either side of a road that leads into one of Vietnam’s newest and most spectacular casino resorts, The Grand on the Ho Tram Strip.
SPECIAL FOCUS
J
29 ust two years old and beset by problems
and non-gaming facilities to capture a diverse
prior to its launch, the Grand Ho Tram
market in particular the Viet Kieu – ethnic
integrated casino resort is expanding
Vietnamese with foreign passports.
fast and looking to be at the forefront
McCamley says the resort has stepped up
of the country’s industry.
efforts to tap into the more than 300,000
“It’s the only integrated resort on a beach
expats that live in HCMC and Viet Kieu. Last
in Asia. There’s nowhere else I know that
year, Vietnam recorded 7,874,312 tourist
has a facility of this standard and standing
arrivals, an almost 3 percent increase from
on a beach location. So that makes it very
the prior year.
attractive to us,” said the Grand Ho Tram
“We offer the biggest limits in Vietnam. If a
President Shaun McCamley.
player wants a decent bet he can come to Ho
The integrated resort currently has a casino
Tram. There is no other casino in Vietnam
with 90 tables and 500 slots, a 541-room
that offers the same level of presentation.
hotel, a variety of restaurants and an 18-hole
But even though they may not have the same
golf course that opened in October last year -
appearance and offer the same quality as
all just a short walk from the beach. But the
we do, the mere fact that they offer gaming
project is only in its first phase of an ambitious
makes them competitors.”
development to turn the 2.2 km stretch into
Earlier this month the resort announced
a fully-fledged resort destination.
that it will host the new $1.5 million Asian
The Ho Tram Strip’s masterplan includes another
Tour event later this year at its par-71 Bluffs
559-room tower that will have condominiums
golf course, as well as signing European golf
available for purchase. Once it opens next year
Champion Robert Rock to be the golf course’s
the total number of rooms at the Ho Tram
brand Ambassador. The resort is also hosting
Grand will rise to 1,100. There will also be a
the Asian Poker Tour this month.
further four five-star resorts set to launch
Though things appear to be going smoothly for
in the next five years, another of which will
the resort for now, it encountered a period of
have a casino. Asian Coast Development Ltd.,
turmoil early on when MGM Resorts, the first
the parent company of the Ho Tram Project
management company, pulled out for reasons
Company, estimates its total investment to
undisclosed in 2013 ahead of the launch.
be $4.2 billion.
“There was probably a month where everybody
“The idea is to drive volumes of resort-
had to work out what they were going to do
minded groups where each service can meet
and they decided to self-manage and opened
those various requirements,” said McCamley.
about a month-and-a-half to two months
Amid such rapid expansion, the company is
after that,” said McCamley,
looking to become something of a pioneer in
“When you have a significant transition from
the industry by positioning itself to be one of
a major management company making a very
the first casinos to be awarded a pilot license
quick decision to withdraw it’s never easy
to open to Vietnamese locals if and when a
but there was a lot of talented people here
much-anticipated bill on legalizing gambling
who remained and did a very good job,” he
for nationals is passed.
said, adding that logos and branding had to
“Locals allowed to participate with gaming is
be redesigned in the wake of MGM leaving.
very important and we are working very hard
But McCamley says the company has put its
with the government to have the first pilot
past behind it and is moving at an exciting
license with Vietnam. Rather than the money
pace in line with the country’s growing
leaving the country and going to places like
tourism sector. Though it will be a challenge
Cambodia it’ll stay here,” he said, citing Phnom
to bring such a new property with a high
Penh’s NagaWorld as a major competitor.
level of presentation to fulfill its potential,
“If they do allow us the pilot license it opens
for McCamley, there lies an opportunity to
up a host of opportunities. We can have a lot
experiment with what works and have fun
more entertainment and bring in superstars
in the process.
and host grand events. So it’s a huge benefit
“I don’t mind taking a risky decision. We run
for Vietnam and tourism.”
with the flow. If we have to make changes we
But until that time comes, the resort, despite
make changes. We are an evolving business
being unique to other casinos in the country,
and the formula that we use every day may
is aggressively looking to publicize its gaming
not be the same in five years.” l
Y14 Donaco revenue Gaming & hospitality $2.05b
+33%
VIP $2.71b
+67%
Slots $2.71b
+144%
Visitation Tourism arrivals Y14 7.8m
+4%
China Arrivals 1.9m Jan - April Y15 2.7m
-12.2%
Vietnam’s Ministry of Construction has asked the Prime Minister to approve a new location for the casino proposed on the resort island of Phu Quoc, moving it from northeast to northwest of the island. The proposed new location covers 37 hectares as part of a zone for luxury tourism facilities in the northwest of the country’s biggest island. The casino is expected to have 200 to 400 live tables and 2,000 gaming machines. It will also have a conference center and five-star hotels with 3,000 rooms. Macau junket operator Sun City and Hong Kong’s Chow Tai Fook are teaming up with VinaCapital on a long-delayed $4 billion resort in the central province of Quang Nam, replacing Genting which pulled out of the project in 2012.
Asia Gaming Briefings | May 2015
SPECIAL FOCUS 30
VIETNAM
Aristo poised to cashin on Lao Cai’s growth Located amid the misty mountains and lush greenery of Lao Cai is the site of Donaco International’s Aristo property, its latest and upgraded site boasting more than 400 rooms in the border town between Vietnam and China.
T
he towering five-star Aristo Hotel and Casino, a
“For VIPs, the minimum bet size is RMB4000 ($650);
joint venture between Donaco and the Vietnamese
premium is RMB 600 to 2000; and main hall patrons,
government, which owns 5 percent, has 428
RMB50 to 400.”
hotel rooms and 40 gaming tables – a bold
In Donaco’s half year results presentation published in
step up from the 34 rooms and eight gaming tables it
February, the company said normalized results for its
had at its previous site a few minutes away at Lao Cai
Vietnamese casino operations show a 55 percent increase
International. The new site also has 58 electronic gaming
in operating revenue and 52 percent increase in EBITDA,
positions, with 34 linked jackpot slot machines and 24
driven by the soft opening of the Aristo.
electronic roulette seats. The casino’s license allows
There was a 13 percent increase in table game turnover
up to 300 EGMs.
with revenue of $9.04 million, a 74 percent increase in
Aristo is the only casino for about 200 km and is positioning
slot machine turnover and 822 percent increase in non-
itself to take advantage of a mini boom taking place in
gaming revenue to 3.33 million.
the city.
In May, the company said its win rate, however, continues
Sources with knowledge of the city say it has undergone
to be volatile with VIP gross win rate of 1.3 percent in
significant development in the last year. A highway built
March and 2.11 percent in April, below the theoretical
by the Vietnam Expressway Corporation and funded by
win rate of 2.85 percent.
the Asian Development Bank now cuts the journey time
The company added that the hotel’s occupancy is
from Hanoi Airport to Aristo from about 8 hours to just
consistently at 70 percent, which Aristo’s management
over three.
expects to improve with the overall development of the
All along the highway in the city are shiny new cafes
province and increasing investment and tourist numbers.
and retail outlets as well as construction sites where
Aristo is close to Sapa, a renowned tourist destination
developers are building residential and office space to
50km away that is seeing an increase in tourist arrivals.
capitalize on the increase in trade between Yunnan and
In 2013, Sun Group began construction of the Fansipan-
Lao Cai provinces. According to sources, the city now has
Sapa cable car system in Sapa. Once completed this year,
about 10 banks compared with about 6 last year.
the cable car system will go from Sapa town to the peak
Another significant emergence is the relocation of some
of the Fansipan Mountain – the highest in Indochina –
government departments to the city to take advantage
seven kilometers away.
of cheap and abundant land. It is hoped the increase in
In the first four months of this year, total tourist arrivals
officials residing and working in the area will lead to an
to the province of Lao Cai reached nearly 665,000, a
increase in the demand for meeting and convention space
year-on-year rise of 21.7 percent, reported the Lao Cai
at the hotel, while diversifying the company’s customer
News. April was a bumper month for the province as
base from predominantly Chinese.
the 2015 Sapa Culture and Tourism week coincided with
Since launching mid-last year, the company has reported
the National Reunification holiday and May Day. Sapa
healthy financial results, with Edison Investment Research
welcomed 138,000 visitors in April, while Lao Cai city
describing the hotel’s performance as “all the more
and Bac Ha received 80,000 and 17,100, respectively.
creditable since the hotel was still in soft opening mode
Along with tourism, the province has become popular among
and faced the temporary negatives of China/Vietnam
mining companies. Private investors have pledged around
tensions, the World Cup and the Yunnan earthquake.”
$4 billion in committed capital investment since 2008.
The hotel and casino is propped up by residents from
In September last year, Vietnam inaugurated its largest
Yunnan province who are permitted to visit Lao Cai using
factory to produce steel from iron ore in Lao Cai province.
a border pass as opposed to a visa.
The Lao Cai Cast Iron and Steel Plant, a venture between
“Patrons are typically sourced through junket operators.
Vietnam Steel Corporation, Lao Cai Mineral Joint Stock
Primarily VIPs who check in with a minimum of $98,000
Company and China’s Kunming Iron and Steel Group Co.
plus,” Donaco said in its May presentation.
Ltd, was put into operation after three years of construction
“Aristo VIP players would be premium mass market
and has an initial capacity to produce 500,000 tons of steel
players (at best) in Macau.”
per year, according to the Vietnamese government. l
Asia Gaming Briefings | May 2015
SPECIAL FOCUS 32
CAMBODIA
Border casinos face challenges with new gaming law It’s 9 a.m. and the Crown casino in the Cambodian border town of Bavet is booming. Hordes of Vietnamese gamblers cram themselves around card games drinking coffee and chewing on cigarette ends*
W *Additional reporting by Kang Sothear, a business reporter at The Cambodia Daily newspaper.
hile some may have caught some sleep
economies at the border, said Ros Phirun, spokesman
since the night’s session, for others, the
for the Ministry of Economy and Finance.
24-hour opening cycle has kept the chips
But as the industry grows and pressure mounts on
and cards rolling all night.
the government to take a more active approach to
On the surface this wild-west town 160km from
collecting taxes in all sectors of the economy, Phirun
Phnom Penh appears to be thriving and the numbers of
said the casino business needs to be more transparent
Vietnamese strong.
and better regulated.
In 2014, about 905,801 Vietnamese nationals entered
“The casinos in Cambodia are increasing in quantity
Cambodia, up 6.1 percent on the year before. Most of
but not quality that’s why we need new regulations that
them would have crossed overland.
are strong enough to regulate it properly,” Phirun said.
But Bavet, which has long been a haven for gaming
Phirun declined to go into detail of the law, which has
operators looking for an easy way to set up a casino and
been drafted and is due to appear at the National Assembly
cash-in on the thousands of Vietnamese eager for a
later in the year, but said it will ensure there will be a
flutter, could see its luck change.
more thorough tax collection system.
Cambodia is expected to pass a new gaming law later this
“To collect tax we just call on them to have a discussion
year that may change the face of gaming in the border
and then we require them to settle their obligation every
areas. It may also lead to greater foreign investment in
month based on the size of the casino, its location and
the country, analysts say.
player levels…. We currently do not collect the tax based
Up to now Bavet has thrived on loose regulation and
on real revenue,” he said.
little oversight as the government sought to boost the
The government collected $25 million in taxes from
Asia Gaming Briefings | May 2015
SPECIAL FOCUS 33 gaming revenue in 2014, a 15 percent jump
Grant Govertsen, an analyst at Union Gaming
from the previous year.
Group, said a much-needed regulatory framework
According to Uon Sok Samoeun, director of
will draw investors who are currently cautious.
administration at the $100-million Titan King
“First and foremost, an improved regulatory
Casino, the government has begun training
environment will open the door for greater
workshops for casino staff ahead of a series
investment in the country.”
of new taxes and licenses that will be required
“There is a lot of investor interest in Cambodia
of operators.
that resists entering the market due to a lack of
Samoeun said operators will have to pay taxes
regulations. The establishment of a regulatory
on their individual revenues - such as on their
framework should therefore incentivize increased
hotel, restaurant, casino and karaoke operations
gaming and hospitality investment.”
- and require separate licenses for each form
There were 59 casinos as of 2014 in Cambodia.
of entertainment.
There are currently 10 in Bavet compared to just
“Having to pay separate tax on each business
four - Le Macau, Moc Bai, Crown and New World
will make things harder than before and could
- in the border town in the mid 2000s, which
drive revenues down,” said Samoeun.
operators say was Bavet’s golden age before
Another big obstacle to growth would be a
the financial crash turned the industry sour.
regulation to eliminate money laundering,
Along Bavet’s dusty strip several shuttered
requiring big spenders in the casino to provide
casinos such as the Winn stand as reminders
identification when changing up several
of the vulnerability of weaker operations that
thousand dollars. Operators say trying to get
cannot keep up with market and economic
gamers to comply would be almost impossible
changes.
as anonymity is part of Bavet’s allure.
Phirun and operators expect the market will
“Some of these players don’t even want their wives
shrink and evolve, much in the same way it
knowing so you can imagine they won’t want to
did following the crash, once the new law is
give us their personal details,” said Samoeun.
introduced. Marginal operators will be forced
Though tightening the industry to make it
to pack up as the stronger ones flourish
compliant with international standards will
through diversifying both their gaming and
ruffle some feathers, the sentiment for the
entertainment facilities.
long-term is that it will create a stronger,
“The small casinos will just die out,” said Crown
healthier industry.
casino manager Sao Vanna. l
GROSS GAMING REVENUE Y14 Y15E
Y16E
$381m
$443m
$483m
(Source: Morgan Stanley)
NagaCorp Y14 GGR $381m VIP volumes. Y15E Mass revenue
+23% +25% +15%
(Source: Citi)
The exodus of VIPs from Macau is benefiting Cambodia’s largest casino operator. NagaCorp said Q1 gross gaming revenue soared 48 percent $113.5 million for the first three months of the year, driven by high rollers. Gross revenue from VIPs increased 101 percent yearon-year to $65.5 million from $32.5 million, while mass table buy-ins rose 12 percent to 129.9 million. Australia-listed Donaco International says the $360 million purchase of the Star Vegas Resort and Club in Poipet, Cambodia has been delayed by about two months until July due to the need to satisfy administrative procedures related to the financing of the venture.
Asia Gaming Briefings | May 2015
SOUTH ASIA 34
GROSS GAMING REVENUE GGR $100m (Source: PriceWaterhouse Coopers)
Deltin Q1, Y15 Gaming revenue $11.7m Foreign tourist arrivals 2014
INDIA
Opening delays seen crimping Delta Revenue Delta Corp, India’s leading gaming company, continues to face delays in opening a casino at its luxury integrated resort in Daman, raising concern over the operator’s revenue prospects and dampening hopes for land-based gaming in the country.
C
Foreign exchange earnings from Tourism Y14 $19.6b
+10%
+6.8%
+6.6%
“They continue to be strong in Goa but after quitting the realty sector, their additional profits were to come from the Daman casino. It is imperative for them to get a licence. Continuing delay would also affect the overall gaming sector in India,” analyst tells AGB.
asinos are only legal in three Indian
pending receipt of the five-star certification
percent of revenues and hospitality to contribute
states -- Goa, Sikkim and Daman
that was a requisite for the casino operation,
11 percent; there would be no contribution from
-- with Goa taking the lion’s share
which has since been awarded.
real estate,” the report stated.
of the market at about 95 percent.
“The opening of The Deltin is a milestone
However, an analyst who worked on the report
Delta Corp dominates the sector and recorded
for us and underlines our efforts to provide
told AGB on condition of anonymity that
gaming revenue of about $41 million last year,
luxurious yet accessible gaming and hospitality
the delay was likely to affect the company’s
representing about half of total revenues from
destinations in the country. I am confident
prospects “adversely.”
the business.
that it will reshape the face of the industry in
“They continue to be strong in Goa but after
Delta Corp presently runs two offshore casinos
India,” Chairman Jaydev Mody said.
quitting the realty sector, their additional profits
in Goa called the Deltin Royale and Deltin JAQK.
In its report, MOSL said the launch of the Daman
were to come from the Daman casino. It is
It also has the license to run a third in the
casino was going to be the “key trigger” for
imperative for them to get a licence. Continuing
coastal state -- another offshore casino boat
the company, as it would almost double its
delay would also affect the overall gaming sector
called the Deltin Caravela -- which has also yet
gaming capacity. It currently has 2000 gaming
in India,” the analyst said.
to start operations, a company spokesperson
positions and the new casino, along with start
While the Asia Pacific region accounts for
confirmed. There are six licenses in total for
up of its third license in Goa, would have taken
about 43 percent of the world’s gaming
off-shore casinos in Goa, out of which Deltin
capacity to 3,400. The casino has a total floor
market, India’s share remains tiny at just $100
owns three.
space of 60,000 sq.ft.
million from casinos at present, according to
However, its land-based property in Daman was
MOSL said it had expected Delta Corp to be a
estimates from PriceWaterhouse Coopers. The
touted as the real game changer for the company.
“debt-free, net cash” company by 2017, but
MOSL report estimates that Delta Corp’s total
The casino was supposed to be operational in
the continuing delay is unlikely to help the
revenues might double by 2016-17 at a CAGR
the second half of last year, according to a
company achieve the target. Delta exited the
of 30 percent, although the potential for the
report published by Motilal Oswald Securities
real estate sector last year and is now counting
market as a whole is unknown.
Ltd (MOSL) in September 2014.
on the gaming sector for nearly all its revenue.
The reason for the opening delay is unclear and
Multiple sources in the company confirmed
“In FY14, gaming contributed 45 percent of
may be linked towards attitudes to gambling
that the casino has yet to open, but Delta did
revenues, hospitality contributed 1 percent,
in India. Speaking to AGB, the Member of
not provide any official reason for the delay
and real estate contributed 52 percent. Delta
Parliament from Daman and Diu, Lalubhai
when contacted by AGB.
has decided to strategically focus on its gaming
Patel said that he was against the opening of
The 176-room property, called The Deltin, opened
business and has exited its real estate business.
the casino as it was likely to make the youth
in March last year without the gaming facilities,
In FY16, we expect gaming to contribute 89
of the Union Territory addicted to gambling. l
Asia Gaming Briefings | May 2015
SOUTH ASIA 35
Y13 Direct tourism contribution $714.6m or 3.9% of total GDP (Source: WTTC)
“While putting a number to cancellations is difficult, it could potentially be in the thousands. This is going to impact tourism in Nepal for at least a few months,” Subhash Goyal, president of the Indian Association of Tour Operators (IATO) told Business Times. PokerStars and Full Tilt are calling on the poker community to support relief operations in earthquake-hit Nepal. Parent company Amaya has said it will match dollar for dollar any donations made by players or staff to charity CARE International. The company set up multiple ways – tournament lobbies, player transfer and FPP donations – for players to donate.
250 million rupees ($2.6 million), with the minimum set at 150 million rupees for slot
NEPAL
Earthquake dims tourism hopes On April 25th Nepal was hit by its deadliest earthquake since 1934, measuring about 7.8 on the Richter scale and triggering fatal avalanches on Everest.
T
parlours, known here as mini-casinos. A new annual license fee, to be paid to the tourism ministry, was set at 20 million rupees for casinos and 10 million rupees for minicasinos. Similarly, the annual royalty fee, paid to the inland revenue department, was doubled to 40 million rupees for casinos and set at 20 million rupees for mini-casinos and
he disaster is known to have killed
In early February, Hong Kong-based Silver
was made payable in advance rather than
at least 6,000 people at the time of
Heritage Limited (SHL) opened The Millionaire’s
in arrears.
going to press, with relief agencies
Club & Casino at the five-star Hotel Shangri-
At the time of going to press it was unclear
forecasting that the death toll will
La in Kathmandu, becoming the first casino to
what the impact of the earthquake has been
rise as rescuers reach outlying villages in this
come under Nepal’s new gaming regulations,
on the country’s casinos.
impoverished Himalayan nation.
while India’s Mahjong Entertainment, which
The tourism industry, one of the main foreign
The earthquake struck just as Nepal’s casino
operates Casino Mahjong at the five-star
exchange earners in Nepal, had already been
industry was beginning to show signs of life
Hotel Soaltee in Kathmandu followed suit,
reeling from a series of recent natural disasters.
after shutting down for nearly a year for
opening its doors to gamblers on February 6.
Last year about 43 were killed in unusually
failing to comply with new regulations. New
According to the new rules, which came into
severe snow storms, with almost 1.8 metres
foreign investment had also been announced
effect in July 2013, Nepal’s casinos were
(5 ft 11 in) of snow falling within 12 hours
in the sector.
required to have paid-up capital of at least
on or around Annapurna and Dhaulagiri. l
Asia Gaming Briefings | May 2015
AUSTRALASIA 36
AUSTRALIA
Is Australia suitability bar set too high?
A
n attempt by Tony Fung’s Aquis
Applications of Genting HK’s type in Australia,
Group to buy the Reef Casino Hotel
and similar applications in other gambling
in Cairns failed because Queensland
sectors are strictly governed by legislation.
casino regulatory approvals were
For the most part, the legislative intention
not obtained in time. The deal was publicly
is clear – to get the licence or approval, the
announced in February 2014 and more than
applicant has to pass a suitability test. The
nine months later, it lapsed. The reason is that
test is usually based on a mix of the following
Aquis had not responded to requests by the
factors, covering not only the applicant but
Queensland casino regulator for interviews and
also close associates: good reputation (having
information in a timely way. Notwithstanding
regard to character, honesty and integrity);
this, Aquis ultimately obtained approval to
sound and stable financial background;
acquire the Canberra Casino.
satisfactory ownership structure; suitable
The second recent example was Genting Hong
financial resources; and sufficient relevant
Kong Limited’s application for approval to
experience.
acquire up to 25 percent of the shares in Echo
The suitability test is usually underpinned by
Entertainment Limited, which has been with
general objectives of the regulatory structure,
the New South Wales casino regulator for more
such as ensuring that the management and
than two and a half years. The reason for this
gambling operations are free from criminal
extraordinarily long time period directly relates
influence or exploitation and are conducted
to the supply of information, or more correctly,
honestly, and that the operation’s potential to
the non-supply of information.
cause harm is controlled or minimized.
*Bill Brown is principal at
Do these high-profile examples point to an
Unlike a lot of other regulatory regimes in
Orange Advisory Pty Ltd
impenetrable barrier for those who want to
Australia, gambling regulators are not faced
in Melbourne, and an
invest in the Australian gambling industry?
with a time clock when applications are before
In my opinion, the clear answer to all these
them. The onus is on the applicant to satisfy
questions is firm - No.
the criteria. This is done by the supply of
Two recent high-profile examples in Australia of deals not proceeding due to regulatory delays raise questions as to whether the approval process is taking too long, or whether the bar is set too high.
AGB Advisor
Asia Gaming Briefings | May 2015
Bill Brown*
AUSTRALASIA 37
CASINO GAMING REVENUE Y20E
A$6.2b ($4.87b)
(Source: IBIS)
Y14 Australia, NZ combined
$4.44b
Y15E
$5.13b
Y16E
$5.72b
(Source: Morgan Stanley)
Y16E
AS$4.6b
(Source: Citi Research)
Market share as of Jan. (Source: Queensland Treasury)
information and is usually done at two stages of an application process. The first stage commences before the application is submitted and ends at the time it is lodged. A vast amount of information normally has to be
total gaming $17.4b (including pokies and lottery)
collected, collated and sometimes analysed to
casinos $4.11b
ensure that the application is accompanied by all the legislative and administrative requirements. With the right advice, and patience, an application
Aquis Group chairman Tony Fung said he is “totally committed” to the $8 billion Aquis Great Barrier Reef Resort project at Yorkeys Knob despite speculation in local media that there is little political backing of the project. “There has been much speculation in recent months about the future of the project. I want to assure you we remain totally committed to bringing Aquis Great Barrier Reef Resort to fruition,” wrote Fung in an open letter to the community. The letter follows speculation that the change of government in Queensland could delay plans. The Queensland Government has ended plans for Chinabacked ASF Consortium’s more than $7 billion integrated resort for Australia’s Gold Coast following strong opposition from environmental groups concerned about the impact a large-scale cruise ship terminal would have on the delicate marine eco-system. The company said it will work with the government in an attempt to find an alternative.
racing $2.7b sports betting Y12/13 $484.78m
when submitted should demonstrate that the applicant is worthy of the licence/approval. However, the applicant needs to be armed and ready for the second stage.
also here where the information request can
applicant to comply.
The second stage is where the applicant,
seem unusual and quizzical to applicants not well
The better regulatory approach to this issue is
and information relevant to the applicant,
versed in the Australian regulatory approach.
adoption of what I call the “issue of concern”
is investigated. There may be questions of
Again, with the right advice and a necessary
approach. While it doesn’t excuse an applicant
a clarifying nature. For example, a foreign
degree of flexibility, additional information
from the obligation to supply or divulge
applicant may interpret a particular requirement
requests should not be insurmountable.
information, this approach can particularly
in a way that is different to the Australian
It is in the second stage where the most frustrating
help applicants, who are new to the regime, to
understanding.
delays occur. In defence of the regulator, it can
understand what it is the regulator is getting
In this second stage, however, the investigation
only base its decision on information supplied
at. Under the approach, the regulator openly
may prompt the regulator to ask for additional
by the applicant. If an applicant doesn’t supply
communicates with the applicant (usually
information. Often these requests come when
what the regulator asks for, the regulator will
through an advisor) the areas of greatest risk or
the applicant least expects it, particularly after
usually let the application (and investigation)
concern and gives an indication of what would
the deep and sometimes confronting collection
stall. Without a time clock ticking away against
mitigate or eliminate it. The applicant is then
of information at the pre-lodgment stage. It is
the regulator, the only real incentive is on the
given time to respond. l
Asia Gaming Briefings | May 2015
AUSTRALASIA 38
VISITATION Jan. Tourism arrivals 45,688
+8%
China visitors 13,933
+12%
Arrivals from Korea soared 53 percent in January to 21,145 visitors, the highest ever monthly number from that country. Asiana Airlines operated additional flights to Saipan from Seoul four times a week beginning Dec. 2, while Jeju Air was also scheduled to add flights.
PACIFIC ISLES
Best Sunshine signs land lease for Saipan mega casino
Chinese Strategic Holdings Ltd, a Hong Kong-listed company, says the Tinian gambling regulator still needs to approve its revised plan to take over operations at Tinian Dynasty Hotel and Casino. The company has entered into a memorandum of understanding with Hong Kong Entertainment (Overseas) Investments Ltd, the owner of the casino hotel.
Best Sunshine International has finally signed a lease agreement with the Department of Public Lands for a parcel of land where the first phase of its $7.1 billion Saipan casino development will be located.
Investment Group -- Silvia Siu and Xianjun
T
will feature 300 rooms, with one presidential
Meng -- were deemed to be suitable investors for a casino license. Bridge Investment Group plans on building a $150 million resort at Tinian harbour. The resort
he group signed a 40-year lease on the
The company beat out rival Marianas Stars
suite, 15 other suites, and 58 executive rooms.
19,154 sq. m. of public land in Garapan
Entertainment for the only license to be
It will also have a 38,000-sq.m. casino-banquet
at the site formerly known as Samoan
granted on Saipan, but some analysts have
room, a wedding chapel, a fitness center, two
Housing Area with a negotiated and
expressed scepticism at the size of the planned
large restaurants, a shopping arcade and a
agreed upon appraisal value of $5 million, five
investment.
museum.
times more than the prior appraisal that set its
The company claims the island’s advantages
Other planned investments include Mega Stars
value at $901,000.
include its year-round temperate climate, stable
Overseas’ integrated resort on Puntan Kastiyu
The company, a unit of Hong Kong-listed
U.S. regulatory environment and natural beauty.
-- another multi-million dollar project targeted
Imperial Pacific, was granted a 25-year license to
However, the destination is some five hours
at China’s high rollers.
build and operate a casino on the largest of the
from mainland China, which was expected to
Then there’s Shanghai-based Saipan Jinghua
Northern Mariana islands in August last year. It
be the largest market.
Investments Ltd. which aims to develop a $4
has an option to extend for a further 15 years.
Meanwhile investment interest continues in
billion integrated resort on 300 hectares of
It doubled its original budget to $7.1 billion and
neighbouring Tinian. In February, the Tinian
public land located at Pina Plateau on Tinian,
said it plans more than 4,200 hotel rooms and
Casino Gaming Control Commission found
while Macau-based Alter City Group plans to
1,600 gaming tables.
that the two major shareholders in Bridge
invest $360 million. l
Asia Gaming Briefings | May 2015
What has established our global reputation in the gaming industry? At the Malta Gaming Authority, our regulatory philosophy, organisational principles and culture are focused on player protection. Malta’s transparent legal framework and experience in regulating gaming has developed into a world class eco-system providing effective, innovative and efficient regulation. Our regulatory framework provides assurances both locally and internationally that fairness and transparency are at the core of everything that we do. To this effect, our licensees are associated with the highest levels of integrity and efficiency.
Proudly recognised as a world class authority in terms of innovation, governance and diligence.
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SUPPLIER SPECIAL REPORT 40
Global Gaming Expo Asia
The heart of Asian gaming Global Gaming Expo Asia (G2E Asia) is the largest regional sourcing platform for global gaming and entertainment products. Held in Macau, the heart of Asian gaming and one of the fastest growing gaming markets in the world, G2E Asia is the hub where gaming professionals network and conduct business.
G
2E Asia covers a total net area of
The inaugural edition of the All Asia Dealers
8,530 sqm, hosts 180 exhibitors, and
Championship will also take place during
is expecting around 9,000 visitors.
the three days of the show, with the opening
In 2014, more than 95 percent of
ceremony on Tuesday afternoon and finals on
the top Asian casino operators were at the
Thursday afternoon.
show, and 78 percent of visitors came from
As always, networking is an important factor
outside of Macau.
at the show and there are several social events
This year organizers, Reed Exhibitions, have
organized for different groups, including the
added a number of new features to the show, as
Slots Networking and Table Games Networking
well as the regular favorite events. In addition
Meetups on Tuesday evening, G2E Asia Welcome
to the G2E Asia 2015 Conference, the iGaming
Reception on Wednesday evening, Global
Summit and the Gaming Management Certificate
Gaming Women reception, Suppliers Party and
Program, the event also features an Integrated
International Masters of Gaming Law drinks to
Resort Forum, an IT & Business Solution Forum
name just a few. l
and the Asia Lottery Industry Forum.
Asia Gaming Briefings | May 2015
SUPPLIER SPECIAL REPORT 42
PALTRONICS
Introducing our new table gaming products Paltronics Australasia is launching a new range of table gaming products at this years’ G2E Macau exhibition.
T
his strategic initiative began over 18
up to be maintenance free. This has been
3mm dot pitch display allowing extremely
months ago with the company investing
achieved by replacing the fault prone
bright high resolution images.
in state of the art product solutions for table
solenoid system with a contactless linear
Spectra displays are available with screen sizes
games with a key focus on Asian style games.
actuator, a technology that reduces friction,
from 19” to 39” and all feature integrated
The first prototype Sic Bo game was
wear and tear on core components.
side LED lighting. With eye catching game
introduced at the Macau Gaming Show last
Infinity has been also designed with security
graphics, statistical game history, flexible
year, and was very well received.
in mind, with a magnetic locking dome cover
template based background designs and
A core technology of the new Sic Bo game is
eliminating the exposure to “peeping”. With
dazzling effects this will ensure that Spectra
the Clarity playing surface. Clarity is a fully
automatic dice detection in development,
displays will compliment any gaming floor
sealed laminated layer with embedded LEDs
Infinity is the most robust and secure dice
design and draw players to the games.
producing vibrant and clear under-lighting
system on the market today.
Spectra displays are also designed for
and being fully sealed its maintenance free
Complementing the new Sic Bo system is the
Baccarat and Roulette games.
for life.
Spectra Table Display.
Paltronics Australasia has also entered
With a depth of only 18mm, Clarity is easy to
The Spectra displays are housed in a low
into a strategic partnership with Gaming
install in the table top surface and without
profile aluminium extrusion delivering the
Entertainment Systems (GES), a Sydney
the need to modify the main table structure
thinnest table display system available. The
based company specializing in state of the
beneath. Clarity includes adjustable
extensive range includes both LCD and LED
art table technologies. GES products to
brightness intensity and a countdown timer
versions with various colour options available.
be showcased at G2E include Lucky Ball, a
to promote faster play.
The LCD range utilizes the latest state of
new side bet game for Roulette available
Another significant development for Sic Bo
the art IPS wide-angle display screens with
on the Spectra Roulette display and GES
is the new Infinity dice shaker.
stunning graphical performance.
Progressive, a Poker Room jackpot and
Infinity has been designed from the ground
The LED range utilizes a high-resolution
bonusing system. l
Asia Gaming Briefings | May 2015
SUPPLIER SPECIAL REPORT 44 Aristocrat
Innovation and maximum flexibility
Aruze
A fresh face for Aruze
Betconstruct
Presenting Asian style sportsbook
G
2E Asia will demonstrate Aristocrat’s ongoing commitment to providing the
most relevant product for the Asia Pacific region. The company has extended its games portfolio through focused investment behind the Entertainment & Jackpot segments, whilst innovating within its core segment. G2E Asia provides an opportunity to showcase the four key market-leading portfolio segments (breadth) and the content support (depth) behind each. Fortune Tree is the latest in customer driven
B
developments and will be officially launched at G2E Asia with three of Aristocrat’s best games: 5 Dragons Deluxe, 50 Dragons Deluxe and Fortune King Deluxe. Aristocrat is creating visual destinations on gaming floors in Asia Pacific, with thrilling game themes and packaging designed to create attention. Super Wheel Blast is a new game family with three support titles. Each one takes the player on a journey to three exciting and popular international destinations; New York, Venice and Hong Kong. To provide even more choice and performance, Aristocrat has acquired ‘best in class’ talent to build entertainment style games tailored for Asia Pacific markets. Dan Marks - creator of the Global Entertainment segment - is now developing entertainment style games called the ‘E*Series’, which will be on show at G2E Asia with two new Asia Pacific themed product families spanning five titles including Magic Flower and 3 Emperors. E*Series games are designed to increase player engagement and entertainment on casino floors through enhanced graphics, animation and sound, plus stand-out win celebrations that really drive excitement. Visit Aristocrat at stand #527. l
A
ruze Gaming is very excited about the launch of a fresh face to its library of
products, and will be proudly introducing Cube-X at G2E. This new platform has an ergonomically friendly cabinet that is composed of recycled materials, dual hefty 24-inch high-definition monitors, a liquid crystal display topper and button panel. Aruze claims that the next generation processor board and operating system will provide the power and capability to accommodate innovative game features for years to come. With the launch of its new cabinet Cube-X and various new video/stepper/community game titles, Aruze is confident that they will provide customers a unique and diversified gaming product experience. Complimenting Cube X is the new cabinet launch of Cube X Video & Cube X Innovator, stepper. Three new progressive links namely Rapid Shot, stepper, Burning Hot JP, stepper & Extreme Video. As well as Virtual Roulette, which is the latest ETG product. Aruze also has come out with multiple titles for the CUBE-X G-SERIES. Players Party is now the 3rd generation G-Link communal video game. The company is now looking to aggressively expand to various regions to increase the existing regions market share. The future looks bright for this privately owned company as Aruze Gaming continues to innovate and surprise us, with many anxiously waiting to see what they come up with next. Aruze Gaming will be at booth #921. l
Asia Gaming Briefings | May 2015
etConstruct will offer a localized version of its sportsbook that will
appeal to a wider audience in Asia as well as users who prefer an Asianstyle sportsbook. This Asian View has been designed to specifically meet the user experience that is familiar to customers in Asia Pacific. BetConstruct’s sportsbook with Asian View continues to provide an industry leading 20,000 live matches each month, as well as bet types such as Asian Handicap and Totals Bets which are of particular relevance to Asian markets. As a further innovation to be showcased at G2E Asia, BetConstruct will exhibit an updated Agent System designed specifically for the requirements of the Asian marketplace. As an award-winning developer and provider of online and land-based betting and gaming solutions, with eight global offices and over 120 clients, BetConstruct is committed to helping its clients achieve their desired level of growth and success. BetConstruct will be on stand #417. l
SUPPLIER SPECIAL REPORT
Cammegh
Ready to impress
F
or its 8th year running Cammegh is using G2E Asia as a platform to
exhibit its roulette wheels and table
CPI
DLV
Enhanced communications and efficiencies
C
rane Payment Innovations will be exhibiting at G2E Asia with the most
comprehensive portfolio of automated
DLV forecasts a storm
D
LV believes that its new cabinet DIAMOND EXCEL with two 27”
screens will take the markets it is destined
game displays which are acclaimed to
payment systems in the gaming industry.
for by storm, with exciting plans to
be the world’s finest. Making its first
Among the products on display will be the
increase its presence in existing Asian
appearance in the region, having had its
MEI SC Advance note acceptor, EASITRAX
countries by rolling out machines in
debut at ICE last February, is the brand
Web and PPM Advance support tool. When
Singapore, Cambodia and the Philippines.
new Cammegh roulette side bet; Spread
used together, these products create a
The other Diamond cabinets, DWS with
Bet Roulette. Also on display will be
powerful cash management solution that
two 22”screens and HD with 24” screens,
Cammegh’s EyeCard and EyeCard Plus
enables newfound efficiencies throughout
which have already reached many markets
card recognition system accompanied by
operations.
of the world, will also be on display,
Billboard Display Systems showcasing
EASITRAX Web, a software extension of
showcasing the Diamond Games premium
the finest Baccarat graphics with
EASITRAX Soft Count, provides operators
multigames series and Vollinstars
ultramodern features such as: scheduled
with more flexibility when accessing and
jackpot, which is a 25-game program for
video streaming, 3rd party product
evaluating performance data to drive
standalone machine ULTRA 2.
integration, data logging and live export,
efficiencies from the slot floor to the back
Not to be missed is DLVBET, DLV’s
pin sharp HD graphics and custom
room. The data it collects from SC acceptor
recently launched online betting website,
graphics & animations. The cornerstone
heads can still be used to streamline the
where bets can be placed on different
of Cammegh’s exhibit will be the flagship
drop process, facilitate asset evaluations
sports and political events 24/7.
roulette wheel and the Mercury 360
and conduct preventative maintenance
With more developments up its sleeve DLV
together with the visually stunning
programs. EASITRAX Web makes it easier
wish to retain some mystery and invite you
Crystal wheel, Mercury 360 Aurora and
to import that data, and convert it into
to their stand to find out more.
the patented Slingshot 2 automatic
reports from anywhere in the world with
DLV are at booth #1039. l
roulette wheel. Cammegh’s analysis
secure intranet access.
tools; PitBoss and Wheel Manager will
PPM Advance is a next generation support
also be linked to the wheels, giving
tool that lowers maintenance costs by
visitors access to a complete Cammegh
facilitating quick and easy updates to
package.
in-field SC note acceptors. Its Bluetooth
Cammegh, continues to make remarkable
functionality option delivers enhanced
in-roads in Macau, with installations
communications to the user through an
right across the territory, the company’s
Android phone and tablet app.
latest installation with the Galaxy
Also on the CPI booth will be the CashCode
Entertainment Group includes nine
SM BackLoad note acceptor, which has the
Mercury 360 wheels with unique designs
fastest note-to-stack speed in the world
customised to Galaxy’s requirements
at 1.7 seconds. It is designed to support
featuring beautiful hand-painted
door-mounted applications with small
artwork complemented by Cammegh’s
footprints such as bingo, roulette and
pin sharp Billboard HD displays running
tabletop sports betting terminals.
Cammegh’s unique roulette side bets:
Finally, CPI will feature several coin
Spreadbet Roulette and Lucky Symbols.
acceptors and hoppers with varying
The Cammegh team look forward to
footprints and capacities to meet
welcoming everyone to this year’s show.
individual application requirements. The
Cammegh will be on booth #865. l
Universal Hopper is CPI’s best-selling coin hopper, with millions installed worldwide. The Cyclone Hopper offers a smaller footprint and is ideal for applications where lower coin capacities are required, including the latest multi-pay gaming machines. CranePI is exhibiting at stand #739. l
Asia Gaming Briefings | May 2015
% ia 0 s : l1 A f i a fo r r i e d e e c n t B co Sp ou ing se GB u -A sc m , di Ga ers 74 9 ad A re B
47
1 0 -1 2 AUG UST | N OVOTEL DA R L I NG H A R BO UR
HOW WILL YOU STAY A HEAD OF THE G AME? NETWORK Unrivalled networking and deal-making opportunities over three days of formal and informal networking, social events and meetings LEARN Meet and learn from selection of Australia’s top gambling industry professionals and companies as they share their latest insights and strategies for the year ahead. DISCOVER Be inspired by our “out-of-the-box” presenters – unparalleled experts in their field – and come away with new ideas for your business this year.
Want to attend as a delegate? a Gaming Briefings | May 2015 Online: www.gaminingdownunder.com | email info@beaconevents.com A|s icall: +852 2219 0111
SUPPLIER SPECIAL REPORT 48 EVERY MATRIX
Extending its reach in Asia
Ezugi
Whispers of expansion
GPI
Showcasing new products
I
E
and cater to the growing demands of the
G2E. Also up its sleeve are more products
expanded portfolio of table game product
online iGaming communities in Asia.
and features in the pipeline but despite
offerings at G2E Asia.
G2E Asia is a very important event for the
our curious enquires can’t be revealed
Under the B&G brand GPI have developed
company, which is striving to extend its
until G2E.
a new line of technologically advanced,
reach in the ever-growing Asian market.
Meanwhile we have news that Ezugi is
plastic injection molded chips. The new
EveryMatrix has recently grown its
talking to several land based casinos
V-Series chips were designed to offer a
number of representatives in Manila
about adding a live stream from their
whole new range of versatile edge spot
and is earnestly working on attracting
casino floor and has generated a lot of
patterns that can be created with a choice
new clients in this region. EveryMatrix is
interest for Proxy Betting.
between two different size decals with
sponsoring bar drinks and organizing the
The company states that G2E has become
an infra-red security feature exclusive
private event at McSorley’s for clients and
more relevant for them in the past few
to GPI. In addition the V-Series chip line
partners, which will take place from 19-21
years since online has become more
is made with a new injection material
May, during the G2E Asia show. Find one of
prominent at the event.
formula that is much more durable and
EveryMatrix’s representatives to get your
Ezugi will be speaking about Mobile
includes ChipShield. With the large
invite, or ask the staff at the AGB booth for
Monetization in Asia on Thursday from
amount of handling by dealers and players
details.
14:35-15:35.
ChipShield is an anti-fungal that helps
EveryMatrix is also sponsoring the Asian
They will be doing a drinks session at
keep the gaming chips cleaner for longer
Gaming Summer Social in Manila on May
Bellini and invite anyone who would like to
with a more sanitary chip surface. GPI’s
23rd at 71 Gramercy, and hopes to see many
join to put their name down on the stand.
acquisition of Gemaco this past year,
new and existing clients there.
Ezugi will be on stand #407 and #409. l
included the operations in Asia. As a
n 2013 EveryMatrix opened an office in Manila, Philippines, in its quest to
ensure a strong presence within the region
zugi has launched a new Baccarat side bet and Knock-Out Baccarat which the
company is excited to bring to the stage at
G
aming Partners International will be showcasing the latest additions to its
B&G gaming currency line as well as an
The company looks forward to forming new
result, they can now offer customers in
partnerships with major industry players
Asia its Gemaco branded playing cards
in the Asian market, gaining valuable
and table layouts. The Gemaco branded
industry knowledge and establishing new
card line includes three paper stock and
contacts. l
a plastic card option to meet the varying requirements of casino operators. With manufacturing facilities in Asia, GPI can now also provide its customers with a variety of full graphic layouts for all of their gaming tables. GPI have also expanded the design options to its B&G line of European-style plaques. Visitors can expect a full demonstration of the company’s complete line of products GPI will be on #365. l
Asia Gaming Briefings | May 2015
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SUPPLIER SPECIAL REPORT 50 IDNPLAY
Live multi-player games
IGT
Showcasing a winning combination
I
I
over 150,000 active multiplayer IDNPLAY
management systems at G2E Asia where
gamers.
visitors will get a first-hand look at IGT’s
True to its mission statement announced
newly formed “Winning Combination” of
at iGA the company has acquired related
industry leaders.
sales and marketing and has been
They will also gain access to a diverse array
rolling them into one efficient low cost
of gaming innovation developed for the
operating infrastructure in preparation
Asia-Pacific market.
for acquisitions. “This event is important
“IGT is excited to showcase the combined
because at one time, the game industry
global strength of our newly formed
was focused solely on Europe and
company,” said Walter Bugno, IGT CEO,
the United Kingdom”, states Daniel
International. “At G2E Asia, we will present
Alexis, IDNPLAY’s Head of Marketing.
a portfolio that speaks volumes about our
“Nowadays, there are more than 2
Customer First focus and our commitment
billion game platforms, mostly mobile
to the success and growth of the Asia-Pacific
phones, in use outside of those countries.
market. IGT continues to invest in extensive
And with potential audiences of
market research with a global focus and
this magnitude, we need to focus
local emphasis, ensuring that the games we
on our presence in Asia especially”.
develop resonate with our customers and
The IDNPLAY team looks forward to
their players.”
the opportunity to connect with clientele
IGT will spotlight the company’s Asian
and international networks from the
culturally enriched progressive theme, San
industry.
Xing Bao Xi. Housed on the CrystalDual
IDN play will be on stand #26. l
cabinet, San Xing Bao Xi features two base
DN play has selected G2E to promote its network multi-player games such
as poker, dominoes, and live toto linking
Moderating iGaming regulation panel
nternational Game Technology will present a comprehensive portfolio of
innovative games, hardware and casino
game themes, Dragon Dynasty and Golden Frog, and boasts a series of play mechanics that elevate player excitement and encourage players to bet up. Fu Gui Ji Li is another highly anticipated, Asian-attuned progressive title making its global debut at G2E Asia. Also housed on the CrystalDual cabinet, Fu Gui Ji Li offers exciting game play and communicates “luck” and “fortune” through a culturally relevant symbol set. IGT will prominently feature the company’s Premium AXXIS product line with awardwinning TRUE 3D technology. Asian-themed games DRAGON’S TEMPLE 3D and DREAMS of ASIA will also complement an extended library of other TRUE 3D games. IGT will spotlight a robust core portfolio of Asian-enriched themes on the G23 hardware, including new themes Dancing Lion, Eastern Treasures, Chinese Odyssey, Fortune Beast, Guardian’s Treasures, Lantern Riches, and more. The International Game Technology IGT team will be at Stand #909. l
Asia Gaming Briefings | May 2015
Inspired
I
nspired, the leading provider of Virtual Sports, Mobile Games and
SBG Video Lottery, announces that its SVP of Asia and Strategic Markets, Harmen Brenninkmeijer, will be moderating a session on Regulation vs. Prohibition at G2E Asia. “Asia is an incredibly interesting growth region, particularly for gaming,” said Brenninkmeijer. “There are a lot of opportunities to introduce new types of gambling, but this naturally gives rise to the age-old debate between prohibition and regulation. My experience in the gaming industry, and particularly at Inspired, has been that cleaning up illegal gambling markets and establishing sound regulations to ensure player protection and tax collection is a positive step for governments, players and society in general. It’s a topic close to my heart so I am thrilled to be moderating a session on this very issue,” adds Brenninkmeijer. For a number of years, Inspired has been working with operators across Asia to share its knowledge and experience in the implementation of new regulations and gaming services. Asia is a key market for Inspired’s Virtual Sports and Mobile propositions. In China, Inspired’s Virtual Motor Racing rapid draw lottery game “Lucky Racing” is the best-performing lottery product in Hunan Province. Its Virtual Football, “E-Ball,” is live in the largest province for sports lottery in China’s Jiangsu Province. It will also soon be launching its Virtual Sports in the Philippines with the DFNN Group of Companies. l
We own/manage 30 casinos in Canada, USA, Europe, the Caribbean, Argentina and on luxury cruise ships. Listed on NASDAQ since 1994 (ticker: CNTY). We are looking for small and mid-size casino investment and management opportunities throughout Asia.
Please contact Peter Hoetzinger, Co CEO & President, at peter.hoetzinger@cnty.com
SUPPLIER SPECIAL REPORT 52 Inteplay
Innovation and flexibility
JCM GLOBAL
Helping operators create better connections
Konami
New entertainment and creative interaction
J
K
to G2E. Connections are enhanced with
show. Konami’s newest releases include
FutureLogic printer technology featuring
a number of exclusive Asian market
products with the speed, flexibility and
titles, including original math games
durability to meet operators’ demands.
such as Opera Beauty, 5-reel video slot,
The connection continues with JCM’s
Dragon’s Glory, UltraReels video slot, and
system solutions, including Dynamic
Prophetess of Fortune on Rapid Revolver,
Network Applications (DNA), Intelligent
with more to be revealed at the show’s
Cash Box (ICB), PromoNet, Ticket2Go
opening.
and TableXchange. PromoNet intelligent
“Konami continues to invest its support
couponing identifies valuable players,
in new games, cabinets, and technology
targets both carded and non-carded
that help advance the future of gaming
players, links promotions to game-play
entertainment in many crucial Asian
and delivers promotions exactly where
regions,” said Matt Reback, VP of
and when they are needed. Of particular
marketing at Konami. “The games we’re
interest to operators in Macau and other
bringing to G2E Asia feature greater
regions with high-volume wagering at
volatility indexes, enhanced player
nteplay will publish its leading online
table games is JCM’s iV8 table game bill
interaction, richer pay tables, and custom
gaming platform, Mars, at G2E Asia
validator that can validate and process
art themes to further engage regional
along with many other fantastic new
large stacks of notes at 8 notes per second,
player demographics with fresh gaming
games such as Night Club, Baccarat
dramatically reducing buy-in time and
experiences. In particular, Konami’s
Wheel, Money on Trees and Wenzou Pai
increasing the number of potential hands
Prophetess of Fortune on Rapid Revolver is
Gow. Inteplay continues to invest in
dealt per hour.
powered by a unique multiplier mechanic
creating the most versatile and innovative
Also showing is the TableXchange, which
delivered through the stacked, spinning
gaming products for its global clients
brings the convenience of TITO to the table
top-box drums that amplifies wins up to
expressing confidence that, with its strong
by both accepting and paying out with TITO
100x.” said Reback.
commitment to building high quality
tickets, allowing full two-way transactions
Prophetess of Fortune is Konami’s newest
games, credibility levels will sustain and
compatible with existing casino TITO
release for Rapid Revolver, joining the
its client-base will continue to expand.
systems, increasing convenience for
award-winning debut title Rising Dragon.
Inteplay believes that customer retention
players and streamlining operations by
Both combine thrilling top-box lighting
is one of the most significant factors of
virtually eliminating the need to replenish
and effects in the upper stacked reels with
organizational success in this industry and
chips at table games.
dramatic art animation in the lower video
that gaming vendors should commit to
The connection is completed with
base game for a hybrid video-mechanical
establishing strong business relationships
JCMedia, a complete line of digital
reel experience. Konami’s big-screen
with the buyers. Inteplay plans to integrate
displays, production services and media
Podium Goliath cabinet will also be shown,
feedback and ideas discussed at the event
management systems that empower
with colossal sound and 32-inch dual
to future designs adding value to the
operators to communicate directly with
high-definition LCD displays.
company in terms of conceptualizing the
customers in a digitally dynamic fashion.
“Konami will be showcasing some of its
current trends, competitive environment
JCM Global can be found on stand #339. l
most promising new game themes on
CM is bringing its better, smarter and faster bill validation technology,
printer technology and systems solutions
I
onami Gaming, Inc. will present a milestone line-up of new Asian
market game titles during this year’s
and certainly in predicting the industry’s
Goliath, such as Heroine of the East and
future and therefore look forward to face
Mighty Emperor of Heaven,” said Reback.
to face conversations with experts in the
“Because Goliath is compatible with all the
industry.
same games as our classic Podium cabinet,
Inteplay will be on stand #501. l
operators have the greatest control and long-term flexibility to customize this product to meet their needs,” he said. Konami Gaming will be at Booth #559. l
Asia Gaming Briefings | May 2015
SUPPLIER SPECIAL REPORT 53 LT Game
A dramatic step forward
Mahjong Logic
Continued growth in the Japanese market
Microgaming
Largest collection of games in the industry
M
L
M
with new a cabinet and touch screen. Along
Logic and 2015 sees them focusing on
Lucky Firecracker and blockbuster Game
with this new addition come new games
continued growth in the Japanese market
of Thrones. It will be showing its all-
namely LT Power Tournament on Live Table
as well as finalizing the development
encompassing product range, including a
Multi Games System and LT Power Dragon,
of the brand new HTML5 platform. The
portfolio of award-winning slot and casino
an automatic/RNG electronic table game.
company is consistently adding new
games and a state-of-the-art Live Dealer
The LT Game flagship product of Hong
operators and partners throughout the
offering. With over 800 casino games, and
Kong-listed Paradise Entertainment’s
region with the release of several operators
more than 225 dedicated mobile games,
subsidiary is the e-Baccarat Table, replacing
in China and other Asian regions later
Microgaming says it isn’t just about
physical betting chips with digital chips and
this year. Mahjong Logic is excited to
quantity - the quality it claims is also
a ticket-in, ticket-out system eliminating
meet current partners, colleagues and
unmatched. Products will be demonstrated
human error which improves accuracy and
establishing new relationships. l
on desktops, mobiles, tablets and even
T Game brings new developments and products since last year’s G2E Asia. It
will be exhibiting a new Live Table Game
ahjong Logic will be using G2E Asia to showcase the Mahjong Logic P2P
solution. Asia is a core market for Mahjong
icrogaming looks forward to showing its wide range of games at G2E
Asia, including new favourites Lucky Koi,
speeds up game play.
wearables, highlighting cross-platform
LT Game says the dealer, players, and
capability featuring the latest iPhones and
physical cards help to retain the experience
Android-powered tablet devices as well as
of an old-fashioned card game, however
devices that are popular within the Asian
there is virtually no limit to the number
market. Built to be flexible and adaptable,
of players who can join the game via LT
its software can be localized, both in terms
game’s Live Multi-Game betting terminals,
of language and currency, with online slots
beyond the 5-10 players who sit around the
in over 45 languages and more than 25
electronic table.
currencies.
Furthermore LT Game will be showcasing
Microgaming invites you to place your
its internationally acclaimed Live
business card in a box on the Microgaming
Multimedia Machine with two types of
stand for a chance to enter a free prize
cabinets namely LMG-6 and Slant-Top-4
draw to win a GoProHER04 Black edition
both exclusively designed for baccarat and
and 64GB memory card. The winner will be
Sicbo & Roulette.
announced at 3.30pm on the Microgaming
LT Game continues to increase its market
stand on 21st May 2015.
share in Macau exploring several different
Microgaming has a full team available
opportunities to enter into the global
and a bar to meet customers, network and
market with imminent plans to install
demo its product range at Booth #847. l
terminals at new sites as well as replenish existing ones in Cotai. LT Game looks forward to pursuing new product launches within the next few months and will be rolling out e-Baccarat tables to more casinos accompanying their products with the Intelligent Cash Access Machine. Demonstrations of the e-Baccarat table and other table games will take place at Booth #909. l
Asia Gaming Briefings | May 2015
SUPPLIER SPECIAL REPORT 54 Play’n Go
From strength to strength
RGB
SBTech
Exciting plans for Asia Pacific
Penetrating further into Asia
R
GB is now aggressively promoting its latest innovative products to new
customers across the Asia Pacific region. Having recently secured new customers in the region, the company is focused on continued growth in this area. RGB is exhibiting EGM from WMS, SHFL, R. Franco, Bingo machine from Zitro, Multi Wheel of Central Gaming and Baccarat Smart Display Surface as well as RGB’s own Layout. As a one-stop solution provider with a healthy pace of adding new products to its current portfolio the company promises ongoing enhanced value and performance, bringing excitement and higher revenue to its customers gaming floors. RGB invites you to discuss your technical, support and operations management needs with its team at the show. RGB will be on stand number #745. l
S
BTech prepares to showcase its portfolio of innovative products
specifically for the Asian market at G2E Asia. In addition to a powerful Asian facing sportsbook, SBTech’s powerful sports betting interface features all the popular Asian bet types, including Asian handicap and Over/Under, as well as over 200 other different bet types across more than 30 sports, plus coverage of more than 18,000 live events per month. SBTech will also be presenting Chameleon360, a potent egaming backend system which allows operators comprehensive control
P
of an entire suite of integrated premium
lay’n Go will be showing its full award
casino gaming content from the industry’s
winning portfolio of Systems and flash/
leading providers, accessible by players
HTML5 casino games at G2E Asia, including
via a single sign-on for a seamless sports
table games, slots and jackpot games, all
betting and casino gaming experience.
available via desktop, mobile and server
SBTech has also just signed a deal
based terminals. Play’n Go has gone from
with Gameplay Interactive to provide
strength to strength in the Asian market
Asian market sports betting solutions.
since 2014 growing successfully in terms of
Gameplay Interactive powers some of
clients, products and presence. Exhibiting at
the region’s leading brands, including
G2E Asia the company is a natural part of its
w88.com, all of whom will benefit from
Asia business expansion.
the seamless integration of SBTech’s
The team look forward to meeting all of their
powerful sportsbook that has been tailored
current clients and finding new business
specifically for the unique Asian sports
opportunities to explore.
betting market. “Our latest deal with
Play’n Go will be on stand #1515. l
Gameplay Interactive is a fantastic step forward as it will see us penetrate further into the Asian market through a number of key gaming brands operating in the region,” commented Itai Zak, SBTech CEO. “Almost three quarters of Asia’s interactive/online gaming revenues come from sports betting and we’re confident our localised sportsbook will prove popular.” he said. SBTech will be on stand #227. l
Asia Gaming Briefings | May 2015
SUPPLIER SPECIAL REPORT 56 Scientific Games
Stronger together
Sega Sammy
More fun, more excitement
Silver Goose 8
All-inclusive, integrated gaming platform
A
C
is uniquely positioned as a global supplier
Philippines, Silver Goose 8 is acquiring
of choice, with the industry-leading Bally,
and operating gaming outlets to provide
Shuffle Master and WMS brands now under
electronic casino games to the Philippines
one roof.
community.
Its time-tested brands and comprehensive
Silver Goose 8, the integrated, all-
product portfolios are created and supported
inclusive, online gaming platform provider,
by a talented global team. At G2E Asia,
brings to the G2E table a wide spectrum of
the company will demonstrate its ability
gaming products including online Casino,
to leverage proven product brands and
Live Dealer, Sports, Binary Options, Keno
cutting-edge technology solutions that
and multi-player Poker. With a portfolio
benefit customers and help them grow
of over 200 slot games which include local
t G2E Asia 2015, Scientific Games will demonstrate the benefits of its merger
with Bally, emphasizing that the company
array of top brands will be on display. Ken Jolly, vice president of Scientific
platform provider for PAGCOR
regulated electronic gaming outlets in the
their businesses. More than 80 innovative products from across the company’s diverse
urrently the technology and gaming
and network progressive jackpots offering
K
eeping the momentum going for its
different Live Dealer products with both
sophomore year following its debut
Asian and European dealers.
at last year’s G2E Asia, Japan based Sega
The company boasts 33 Baccarat tables,
Games Asia, said: “G2E Asia 2015 is a
Sammy launches two large-scale ETGs,
8 Roulette tables, 8 Blackjack tables, 3
great opportunity to showcase a range of
“Sicbo Bonus Jackpot” and “Exciting
Sicbo tables, 3 Dragon Tiger tables, 1 Texas
product categories, along with premium
Baccarat” both with renewed player
Hold’em poker table and 1 Caribbean
content including Da Fu Da Gui - the Asian-
terminals. Sicbo Bonus Jackpot was
Poker table and a Sportsbook covering over
themed 4-level progressive link that is the
approved earlier this Spring in Macau
400 different leagues, with an average of
continuation of the successful Duo Fu Duo
and the company is proud to announce
10,000 live games for in-play betting every
Cai phenomenon. Our team is excited to
the start of sales at G2E Asia. The Sega
month. Silver Goose 8 games are available
present our products, designed to entertain
Sammy team is looking forward to seeing
on websites, download game clients,
and perform like no other.”
all of the casino fans play its new games,
mobile and tablet devices all reinforced
Scientific Games will display an outstanding
collecting valuable feedback from casino
with a comprehensive administrative
line-up of Bally-brand games on the Pro
fans and operators and selling some
backend system that provides unified
Series and Equinox cabinets that will appeal
Sicbo Bonus Jackpot units.
player account management, promotions
to players in the Asia-Pacific market. The
The company states that its focus is
and marketing tools, affiliates module and
company follows the success of Duo Fu Duo
on giving casino fans games that have
sales and management reports to cater to
Cai with a new Asian-themed progressive
never been seen before. With strategic
daily operational needs.
link called Da Fu Da Gui, which means “big
marketing plans in Macau well underway,
Silver Goose 8 looks forward to feedback
riches, big honors.” Da Fu Da Gui, inspired
stay tuned for upcoming additional
on its integrated gaming platform and
by Duo Fu Duo Cai with the dedicated Asian
projects.
lucrative collaborations with partners.
content and math model, offers players the
Sega Sammy will be on stand #965. l
Silver Goose 8 will be at stand #512. l
anticipation of big wins with its Double Luck Jackpot feature. When players reveal three Double Luck symbols during the jackpot feature, they win the current jackpot amount, plus the startup amount of the winning jackpot level. The Da Fu Da Gui link launches with Rich Traditions and Jade Eternity on the Pro Wave cabinet. Scientific Games will be at booth #473. l
Asia Gaming Briefings | May 2015
SUPPLIER SPECIAL REPORT 57 TCS John Huxley
Solution-based products
T
CSJOHNHUXLEY will be showcasing its cutting-edge technology product
portfolio at G2E Asia, a region where it
Weike Gaming Technology
Investing for the future
XPG
Plans for growth and expansion
W
eike Gaming Technology once again participates in G2E Asia.
This year the region will be getting its
continues to boast a strong presence.
first look at the new integrated 4-level
“Once again, we will be revealing new
progressive jackpot Ultimate Treasure,
products and solutions that reinforce
Jin Yin Cai Bao and Super 8. “The rapid
our strategy to innovate and develop our
development and rise of the gaming
portfolio,” said Tristan Sjöberg, executive
industry in Asia are the push factors for us
chairman. “We continue to deliver
and following the success of our products
solution-based products that drive and
introduced last year we will continue to
grow our customers’ businesses.” he said.
put additional resources and create new
On show for the first time in Asia is GFL
exciting developments specific to the
Media, a substantial asset featuring a
Asian market according to the approved
X
media and display system where content
standards,” said Peter Kup-Ferroth, VP
can be altered, scheduled and configured
of product marketing. Highlights at G2E
gaming market and cutting-edge products.
from a central point and sent to any display
Asia will be the standalone game portfolio
connected to the platform, enabling
which includes Wu Song, The Peranakan
operators to react quickly to changing
heritage-themed game, Graceful Fortune
levels and requirements of player activity,
and an exciting 50-line game. Chinese
change table limits and displayed media
specific themes include Dou Di Zhu Gold,
from a central point and control the
Warrior Mulan and the new Flaming
delivery of content. Holding a library of
Mountain, Dragon gift and Muay Thai.
game and bonusing variations on a server
“We strongly believe as an Asian Gaming
that allows up to the minute optimization
Manufacturer that, as the Asian gaming
of floor setups like that of GFL Media.
industry continues to grow, Weike’s
Also featuring, as part of the GFL Media
regional focus will continue to provide
module is Blaze, a gaming surface
strong service levels for operators” said
technology offering stunning game
Kup Ferroth. “We are investing for the
animations projected through a traditional
future and we always have the customers
gaming layout. In addition to Sicbo and
in focus. It is important to have a long
Roulette, visitors will also see an Asian
term perspective and always make sure
inspired LED Money Wheel for the first time.
we give the best combination of product
Also being launched is i-Depsys, the
requirements and value for money in every
Intelligent Drop Box that can be integrated
market,” commented Ray Poh, COO of
into any gaming table. Ideal for the 24/7
Weike Group.
operations in Asia, i-Depsys is a fast
Weike will be on stand #1231. l
and intelligent cash handling system that counts large sums of cash quickly, using the most reliable optical note recognition systems that counts and sorts up to 200 notes at a time, reducing the need to manually count, sort and determine if the notes are legal tender. The
PG says that G2E Asia has always been an important showground for
companies to stay on top of the global XPG will be demonstrating its unique Live Dealer Casino solutions at G2E Asia with a large range of classic casino games such as Blackjack, Baccarat and Roulette that will be showcased alongside Dragon Tiger, Sic
Bo, Casino Holdem and Caribbean Poker. XPG provides flexible and quick integration with any existing operation and thirdparty solutions via API, delivering in record time at competitive rates. Owning two main studios, XPG customizes product packages based on the region of operation, boasting stable and highly secure systems with beautiful, experienced dealers. XPG has exciting plans to invest further in more advanced technology and product development to enhance production and provide more value-added services to meet the evolving demands of the digital landscape, as well as its clients, ensuring the company stays ahead of the digital game. The XPG team is keen to share its experience in the field and hope to meet industry leaders to discuss how to exploit digital opportunities. XPG will be at stand number #707. l
TCSJOHNHUXLEY Asia team looks forward to welcoming everyone to introduce these new products. TCSJOHNHUXLEY will be at Stand #1239. l
Asia Gaming Briefings | May 2015
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CALENDAR OF EVENTS 60
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 IAGA International Gaming Summit 2-5 June 2015 Fairmont Pacific Rim Hotel, Vancouver www.theiaga.org/2015-gaming-summit Russian Gaming Week 3-4 June 2015 Sokolniki, Moscow http://rgweek.ru/en Peru Gaming Show 10-11 June 2015 Centro de Exposiciones, Lima www.perugamingshow.com
iGaming Super Show & Amsterdam Affiliate Conference 23-26 June 2015 RAI Amsterdam www.igamingsupershow.com
JULY World Gaming Executive Summit 6-8 July 2015 W Hotel, Barcelona www.terrapinn.com/conference/wges Casino Marketing & Technology Conference 14-16 July 2015 Rio, Las Vegas www.casinomarketingconf.com
AUGUST Gaming, Racing & Wagering Australia (GRWA) 11-12 August 2015 Sydney, Australia www.gamingdownunder.com Australasian Gaming Expo (AGE) 11-13 August 2015 Sydney Exhibition Center @Glebe Island www.austgamingexpo.com
SEPTEMBER Global Gaming Expo (G2E) 29 Sep - 1 Oct 2015 Sands Expo & Convention Center, Las Vegas www.globalgamingexpo.com
October
N. American Gaming Regulators Association (NAGRA) Annual Conference 15-18 June 2015 The Inverness Hotel & Conference Center, Denver www.nagra.org
EiG 20-22 October 2015 Arena Berlin www.eigexpo.com
Canadian Gaming Summit 16-18 June 2015 Caesars Windsor, Ontario www.canadiangamingsummit.com
Eastern European Gaming Summit 23-24 November 2015 Inter Expo Center, Sofia www.balkangamingexpo.com
Asia Gaming Briefings | May 2015
International Association of Gaming Regulators (IAGR) Annual Conference 13-15 October 2015 JW Marriott Hotel, Lima www.iagr.org/lima2015 International Masters of Gaming Law (IMGL) Annual Conference 14-16 October 2015 JW Marriott Hotel, Lima www.gaminglawmasters.com
November
Summit of iGaming Malta (SiGMA) 4-7 November 2015 InterContinental Hotel, Malta www.maltaigamingsummit.com SAGSE Latin America 10-12 November 2015 Centro Costa Salguero, Buenos Aires www.monografie.com/sagse_bsas/ingles/index.php Malta iGaming Seminar 17-19 November 2015 Hilton Hotel, Malta www.maltaigamingseminar.com Macao Gaming Show 17-19 November 2015 The Venetian Macao www.macaogamingshow.com
LAST WORD 62
Shifting sands Sharon Singleton*
What a difference a year makes. This time in 2014 analysts were predicting a slight slowdown in volumes for the June/July duration of the FIFA World Cup, followed by a pick up from September. None predicted the collapse in VIP revenue that led to the first annual decline in gross gambling revenue in Macau since records began.
G
* Managing Editor, AGB
GR has continued to slide into Q1, with few
how many tables they will be allocated to fill the cavernous
analysts bold enough to predict the market
casino halls that are taking shape in the new resorts.
has hit a bottom. Most still expect a recovery
There is increasing doubt they will receive the number
later in the year as new properties on line,
they had been expecting when the initial projections for
but the most bearish out there say even that won’t be
the resorts were made.
enough to drag the world’s biggest gambling hub out of
Companies are also struggling to commit to exact opening
its current slump.
dates for the new properties as they are uncertain how
The government calls the slowdown in growth the “new
many workers the government will allow them to hire to
norm” as the industry gradually shifts away from the
complete the projects.
stellar growth propelled by China’s high rollers to the
“We’ve struggled with adjusting our work schedule on
mass market. That’s a change that should ultimately
construction to the permissions we’ve been given for
prove a benefit for the industry as the business is far
workers on construction by the government,” Wynn said.
more profitable without the commissions to junkets and
Executives at Las Vegas Sands, which also missed expectations
expensive perks to woo VIPs.
with Q1 results, echoed his comments. The opening date
Operators, in line with pressure from the government and
for the company’s Parisian resort is already at least two
Beijing are also making a push to diversify their products
quarters behind schedule and its opening timetable will
to offer more non-gaming facilities.
depend on whether a request for more labor is met favorably.
Markets and companies can and will adapt to the changing
And then there is the potential 21 million cap to tourist
economic environment, however what’s more difficult to
arrivals from mainland China that comes amid complaints
overcome is uncertainty.
from locals that the city is overcrowded.
Wynn Resorts Chairman Steve Wynn recently urged the
That’s a major concern for operators who will be seeking
Macau government to provide clarity for casino operators,
to fill double the current number of hotel rooms in Macau
who have ploughed billions of dollars into the new resorts
as the new Cotai properties open over the next three years.
currently under construction on Cotai.
A large part of the optimism about the territory’s future
“There’s no question that uncertainty is the plaguing
hinged on pent up demand within China and increasing
word of the day in Macau,” he told analysts on a recent
mass visitation, especially given the ongoing anti-corruption
conference call.
crackdown crippling the VIP sector.
Wynn Macau saw its Q1 property EBITDA tumble by 45
“We never know quite what to expect these days,” Wynn said.
percent year-on-year, below most analysts’ estimates
Adelson poured cold water on the idea of the visitor cap,
and slashed its dividend to just $0.50 from $1.50.
saying it would be impossible to manage and could kill the
Robin Farley, an analyst at UBS read the cut as a clear sign
MICE business that the government is keen to develop.
of this elevated uncertainty.
“From my standpoint as a MICE operator, all MICE to Macau
Operators are still waiting to hear from the government on
would collapse,” he told analysts recently. l
Asia Gaming Briefings | May 2015