Agbriefings May 2019

Jurisdiction Updates May 2019 Edition

In focus pg.28

Indochina interest grows

SINGAPORE Bets big on expansion pg.26

AUSTRALIA

Packer’s Crown in contention pg.38

Macau

Clouds clearing for a bright future pg.6

RUSSIA

Summit Ascent set for VIP boom pg.14

G2E 2019 SUPPLIER SPECIALS pg.44

MESSAGE 3

Indochina in focus

I

n May’s edition of AGBriefings, we focus on Indochina’s

revenue, helped by the entrance of junket investor Suncity

increasing appeal to the industry. The region arguably

Group Holdings as its major shareholder.

provides some of the best potential in Asia. We look at

As far as Japan is concerned, the local elections have proven

how Vietnam has introduced new regulation to cover its

favourable for IR development.

casino and sports betting industries over the past two years

In the Southern hemisphere we look at how James Packer

and is seeing a steady stream of foreign investor interest,

tipped his hand in the high stakes game of acquisitions.

including that of leading junket operator Suncity Group.

Crown Resorts has become one of the gaming industry’s

In Cambodia, construction is booming in the once sleepy

prized takeover targets after the company disclosed it had

seaside town of Sihanoukville. Out of the 52 new casino

been in talks with Wynn resorts about a potential acquisition.

licenses granted in 2018, 78 percent of those went to

Our supplier special report is dedicated to G2e Asia which

operators seeking to set up shop in there. The country is also

returns to the Venetian Macao on 21-23 May, 2019. This 13th

Indochina’s undisputed king of live dealer gaming, with land-

edition will spotlight a number of key industry segments,

based casinos rushing to install dedicated set-ups to stream

namely Digital Content & Technology; Parts and Components

action from gaming floors to online players.

Pavilion; Integrated Resort Technology & Business Solutions;

In these pages we’ll guide you through the most relevant

and the Asia Lottery Expo and Forum.

developments throughout Asia’s leading gaming

These pages will lift the veil on the numerous products and

jurisdictions.

services on show by the industry’s leading suppliers, with a

Starting with Macau, where despite short-term headwinds

special note from local distributor APE, which is forging its

from China’s slowing economy and trade friction with the

path 18 months since its listing on the HKSE.

U.S., analysts remain optimistic Macau will retain its crown

Asia Gaming Brief pays tribute to the industry in Macau

as Asia’s top gaming hub. Meanwhile, one man is contending

this month, with the hosting of the Gaming Tree Reunion.

for the role of chief executive, which might, to some extent,

On Wednesday, 22 May 2019, at Bene at Sands Cotai

weigh on the concessional renewal process set for 2022.

Central, the industry will induct two industry legends

Singapore on the other hand has given new life to its gaming

into the “Asia Gaming Hall of Fame” in an evening

market, allowing for a S$9 billion ($6.65 billion) investment

to remember! To book your ticket and find out more

into non-gaming amenities and an increase in gaming space

information please visit asiagamingtree.com.

and machine numbers.

The AGB team is around at the show and happy to share

Across the Straits, Genting Malaysia, which faced a roller

updates on our upcoming events, such as the next edition

coaster of a year in 2018 amidst lawsuits and regulatory

of the ASEAN Gaming Summit and our Networking Socials

changes, is expecting another challenging year ahead. The

in Manila, as well as our print and digital platforms. To

operator says its particularly concerned about the weak VIP

book a meeting us email at “G2Ea@agbrief.com.”

business due to “stiff competition.”

Over the waters, Jeju shows operators some love: South Korea’s honeymoon island has not always been a bed of roses for the operators lured there by the potential of its strong China tourism base, though recent news suggests an improving trend.

Rosalind Wade

Luis Pereira

On behalf of Asia Gaming Brief Rosalind Wade & Luis Pereira Publishers

Connect with us:

Further North, Summit Ascent seems poised for a VIP

@agbrief

boom. The Tigre de Cristal resort in Russia’s Far East

Asia Gaming Brief

Asia Gaming Brief

is seen as well positioned for significant growth in VIP

www.agbrief.com

MAy 2019 EDITION Series II • Issue XIX

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AGBRIEF PARTNER EVENTS

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Asia Gaming Briefings | May 2019

CONTENTS 4

GREATER CHINA MACAU

NORTH ASIA

6

SOUTH EAST ASIA

12

PHILIPPINES

20

RUSSIA

MALAYSIA

24

JAPAN

SINGAPORE

26

SOUTH KOREA

14 THE MARKETPLACE FOR 16 THE ASIAN ENTERTAINMENT INDUSTRY

亞洲娛樂業的

AUSTRALASIA

SOUTH ASIA

年度盛會

AUSTRALIA

38

CNMI

40

28

special focus

42

INDIA

SUPPLIER SPECIAL REPORT

44

INDUSTRY OPINION

74

LAST WORD

78

Market Trends. Quality Products. Networking. 市場趨勢、優質產品、建立聯繫

THE MARKETPLACE FOR THE ASIAN ENTERTAINMENT INDUSTRY

G2E Asia: Informs smart business decisions. 亞洲國際娛樂展：助您作出明智的商業决策

亞洲娛樂業的 2019年5月21-23日

年度盛會

THE VENETIAN MACAO | 澳門威尼斯人 A G2 EEVENT

PRESENTED Y

ORGANIZEDBY

Market Trends. Quality Products. Networking. www.G2EAsia.com 市場趨勢、優質產品、建立聯繫

Asia Gaming Briefings | May 2019

G2E Asia: Informs smart business decisions.

SPON

6

GREATER CHINA

6

MACAU

Bright future seen for gaming growth

Despite short-term headwinds from China’s slowing economy and trade friction with the U.S., analysts remain optimistic Macau will retain its crown as Asia’s top gaming hub.

Asia Gaming Briefings | May 2019

A

ccording to analysts at Jefferies, who recently initiated coverage on the territory’s six operators, tax cuts in China, credit easing and China’s migrant salary ‘hump’ will be the next drivers for gaming growth.

“Mass market will continue to outpace VIP with the Chinese outbound tourism market still untapped and still under-penetrated – only 11.6 percent of the population traveled abroad last year. Look for the next wave of potential Chinese travelers as another 240 million workers hit the income distribution salary hump within the next 7 years, which previously took 20 years,” it said in a research report.

“Individuals surpassing the RMB3,500/ month personal income threshold (currently around 238 million people) will be a key driver for future visitations,” said the analysts.

The brokerage is also optimistic on economic policies in China that will boost the VIP gaming market in the second half of the year, such as recent personal tax cuts, credit easing, SOE-funded value added tax cuts, and a further cut in the Reserve Required Ratio, which stipulates the ratio of cash that banks need to hold in reserve.

Looking at 2019, Jeffries said it is forecasting a 1.1 percent increase in gross gaming revenue – led by a 6.5 percent increase in mass, and a 5.6 percent GGR increase in 2020, led by a 3.7 and 7.8 percent increase in VIP and mass respectively.

Analysts at Morgan Stanley expect the market cap of Macau’s operators to double by end-2022, driven by improving infrastructure and higher multiples.

They predict GGR will reach US$50 billion by 2022, up from US$38 billion in 2018.

Morgan Stanley said it believes the industry’s market cap could grow to US$200 billion in 2022, doubling the current value.

GREATER CHINA 7

“Along with the opening of HZMB in October 2018 and the high-speed rail extension to Hong Kong, we expect increased visitation potential from China’s lower-tier cities. With the recent license extensions for SJM and MGM, the risk of license renewal has also declined.”

That being said, analysts’ bullishness could be impacted should there be disruptions related to licenses and regional competition – even though the chances are low.

“

One area of potential high-end GGR stabilization and renewed strength may come from a recovering credit cycle in China which may support VIP recovery in H2.

”

“In March 2019, the concessions for SJM and MGM were extended to June 2022 (the same as the other four concessionaires).

Both companies paid US$25 million to the government and MGM paid MOP20 million to SJM. This confirms to us that the license risk is overblown, and while there will be a rebidding process before the June 2022 expiry, it is unlikely that any of the six operators will lose their licenses or have to

pay significant renewal fees.”

For Q1, VIP baccarat revenue fell nearly 13.4 percent year-on-year, reaching MOP37.2 billion, according to data from the Gaming Inspection and Coordination Bureau.

The fall in VIP revenue was the main contributor to the slight fall in Q1 GGR, which dropped 0.5 percent year-on-year to MOP76.2 billion in the quarter.

Mass GGR growth, however, held up well, growing 16.1 percent year-on-year to MOP38.9 billion. Mass baccarat increased 19.5 percent year-on-year in the quarter.

Analysts from Bernstein said that GGR growth deceleration in the quarter wasn’t as bad as initially anticipated.

They noted that continuing weakness in China’s economy, slow credit growth in the second half of 2018 and tough year-onyear comparisons had all taken their toll in the quarter. A smoking ban that came into effect in January is also having an impact.

Bernstein said it expects the year-onyear comparison to remain tough until the end of April and May, and begin to ease in May/June.

“One area of potential high-end GGR stabilization and renewed strength may come from a recovering credit cycle in China which may support VIP recovery in 2H,” said the analysts.

For individual operators, Bernstein said it expects MGM China to show the highest year-on-year GGR growth from the opening and continued ramp-up of MGM Cotai (opened in February 2018), followed

by Sands China, due to an overall shift in business mix to mass.

Melco and SJM both face difficult y/y comparisons, while Galaxy and Wynn Macau both suffered from the declines in VIP volumes.

Government to launch tender process before 2022 Macau chief executive Fernando Chui Sai On has confirmed the government will launch a public tendering for gaming licenses prior to the current expiry of 2022. The chief executive did not give any timeline. Analysts say the criteria for the concessions would likely include commitments on non-gaming offerings, improved labor rights or working conditions for the employees, along with others. The Macau government has extended the licenses of SJM and MGM to June 26, 2022, following requests from both operators to bring them in line with the expiry of the other licensees. “The extension granted to the two companies was also deemed helpful for the maintenance of social stability, particularly the stability of the job market,” Leong said.

Asia Gaming Briefings | May 2019

GREATER CHINA 8

Wynn macau Wynn Macau (1128:HK) operates two resorts, with its $4 billion Wynn Palace opening in 2016. The company’s original property is on the Macau Peninsula. The Wynn Palace has 1,700 hotel rooms and 90 percent of the resort will be non-gaming. The resort has two further plots of land available for development and the company is considering adding more non-gaming attractions.

The board recently proposed a ban on founder Steve Wynn from entering any of the resorts that he designed. Wynn was ousted from his position last year following allegations of sexual misconduct. The group is competing for a license in Japan where it says it will build the world’s largest IR if successful.

Total operating revenues from Wynn Resorts’ Macau operations grew 15.7 percent in the year ended Dec. 31, 2018, driven mainly by improved results at Wynn Palace. Operating revenue from Wynn Palace grew 35.8 percent to US$2.8 billion in the full-year 2018, however, operating revenues from Wynn Macau fell 1.8 percent to $2.3 billion.

Galaxy Entertainment Group Galaxy Entertainment Group (27.HK) has three main properties and runs three City Club casinos inside hotels. The company’s Galaxy Macau Phase 2 and Broadway at Galaxy Macau opened on May 27, 2015, almost doubling the capacity of the resort. The company has the largest contiguous land bank in Cotai and intends to expand its non-gaming footprint with Phases 3 & 4 of the resort.

The group posted net revenue of $55.2 billion in 2018, up 14 percent year-on-year, and generated adjusted EBITDA of $16.9 billion, up 19 percent.

MGM china MGM China (2282:HK) is operating two casinos, with its MGM Cotai IR opening in February last year. The HK$27 billion IR features 1,400 hotel rooms and suites, meeting space, high end spa, retail offerings and food and beverage outlets as well as the first international Mansion at MGM for the ultimate luxury experience.

In Q1, gross gaming revenue grow by 18 percent year-on-year, with growth seen across all gaming segments.

Main floor table games win reached HK$3.5 billion, increasing 35 percent, due to a full quarter

Asia Gaming Briefings | May 2019

GREATER CHINA 9

Asia Gaming Briefings | May 2019

GREATER CHINA 10

of operations at MGM Cotai, along with the addition of new tables and higher win percentage.

VIPtablewinalsogrew3percent,outperforming the market significantly (which declined in the quarter), due mainly to the opening of VIP junket rooms in the second half of 2018.

Slot win increased 12 percent to HK$537 million, also outperforming the market.

Sjm holdings SJM Holdings (880:HK) has 22 casinos in Macau, though the former monopoly has been losing market share to new IRs on Cotai. The opening of its $4.6 billion Lisboa Palace resort is expected in the second half of this year and the company said it’s confident it can provide a differentiated offering from its competitors.

On completion, the Grand Lisboa Palace will create over 8,000 jobs and provide career advancement opportunities for current local employees.

In Q1, profit rose 16.5 percent over the prior year to HK$850 million ($108.3 million), driven by mass market revenue.

VIP gross gaming revenue in the period

dropped 19.4 percent to $3.93 billion, while mass market revenue grew 7.9 percent to $6.19 billion. Slot machine gross gaming revenue was HK$290 million, a decrease of 1.3 percent.

Total net revenue increased 0.7 percent to $8.65 billion.

Analysts at Bernstein Research said the results had come in above its estimates on the EBITDA level, partly because of a high 3.2 percent hold.

Record mass table revenues of $1.5 billion helped to boost total net revenue for Sands China in Q1 with an 8 percent year-on-year gain to $2.3 billion. In Macau, adjusted EBITDA reached $858 million, an increase of 9 percent over the prior year, and beating consensus estimates by around 5 percent.

Sands China

Melco resorts & entertainment

Sands China (1928:HK) has five properties in Macau. It is upgrading its Sands Cotai Central property to a London-themed resort. The company currently has 12,000 hotel rooms and suites, making up for 48 percent of hotel rooms run by casino operators in Macau. According to analysts at Bernstein, Sands will remain the market leader in the mass sector and in nongaming for at least the next five years.

“Sands China is the clear market share leader in Macau. Coupled with its hotel room capacity, Sands China is well-positioned to continue to capitalize on Macau’s continued paradigm shift from VIP to Mass,” it wrote.

Melco Resorts & Entertainment (6883.HK) has three casinos and the Mocha Clubs. The company operates the City of Dreams and Studio City in Macau and the City of Dreams Manila.

The group’s Morpheus Hotel, which opened last year, was named as building of the year for 2019 by readers of ArchDaily, the world’s most visited architecture website.

For Q4, the company reported net revenue of US$1.39 billion, representing an increase of approximately 5 percent. Adjusted property EBITDA was $425.2 million up 25 percent, helped by an improved in both rolling volume and mass revenue.

Ho lat-Seng tipped as next Macau CEO It is becoming increasingly likely that Macau legislative chair Ho Iat-Seng will become the next chief executive of Macau after announcing his intention to run for the position. A respected business leader, Ho entered politics in 2000 as a local deputy to China’s legislature, the National People’s Congress. In 2009, he was expected to become the chief executive, but decided to run for the legislature instead. He is expected to be the sole candidate for the city’s election in August after announcing his intention to run. Earlier this year, risk advisor Steve Vickers warned that the new chief executive would be able to influence the fate of Macau’s current gaming concessionaires.

Asia Gaming Briefings | May 2019

GROSS GAMING REVENUE 2018 MOP302.8b Q1 GGR MOP76.2b

+18% -5%

2019E

+1.1%

2020E

+5.6% (Source: Jefferies)

11

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12

NORTH ASIA

12

SOUTH KOREA

Jeju shows operators some love South Korea’s honeymoon island, Jeju, has not always been a bed of roses for the operators lured there by the potential of its strong China tourism base, though recent news suggests an improving trend.

Asia Gaming Briefings | May 2019

NORTH ASIA

T

13

he island off the southern coast has and expanded and renovated the gaming space, a cluster of foreigner-only casinos but was forced to close the casino in November and has attracted significant investor 2015 as an administrative penalty relating to the interest given its proximity and former owners.

It resumed operations in December of connections to Mainland China, as well as its that year, with 60 tables and 51 machines, but visa-free arrivals policy.

However, political tensions between in 2016, Bloomberry put up the for sale sign.

Seoul and Beijing, coupled with shifting local Talks on the transaction fell through and the sentiment towards the gaming industry and Philippine operator has since decided to continue cultural differences have created a challenging operating the Jeju Sun & Casino, as the property is now known. operating environment.

In its latest results filing, the Jeju operations Still, projects are moving ahead and companies are reporting improving revenue, reported a 14.3 percent gain in gross gaming even if that top-line growth is not yet always revenue and an almost 16 percent gain in net revenue. Its EBITDA loss narrowed to PHP240 feeding through to the bottom line.

Hong Kong-listed Landing International million from PHP258.7 million a year earlier.

Hong Kong-listed New Silkroad is also Development operates the biggest integrated resort on the island, Jeju Shinhwa World. The seeing positive returns from its Jeju business company reported a widened loss of HK$701.5 and recently got the go-ahead to begin work million (US$89.4 million) in 2018, mainly on a new IR on the island.

New Silkroad swung to a profit in 2018 and attributable to discontinued operations and increased expenses related to the ramp up posted an almost 60 percent gain in revenue on sales from its South Korean of the resort. casino business, the sale of The group relocated wine and Chinese baijiu its casino from the Hyatt As a result of and the acquisition of a Regency Jeju to the IR in financing business early 2018 and net revenue the improving Sino- P2P in China. jumped to HK$1.5 billion, Korea relationship Gaming revenue, compared to around which represents just HK$179.8 million in the and the opening over 22 percent of the prior year. Segment profit of a new tourist group total, saw an 11.9 from the Gaming Business percent increase to about was approximately HK$83 complex, the $106.3 million. Profit million, up from a loss of numbers of visitors attributable to owners of HK$117 million in 2017. the company was $64.4 The gaming area to Jeju reached a million compared with a has increased in size to record high. loss of $70.9 million the about 5,500 m2, about prior year. seven times larger than New Silkroad operates its previous location, with 155 gaming tables and 239 slot machines and the Megaluck casino and has a 55 percent stake in Macrolink, which was formed in 2014 to electronic table games.

The group says it will continue to roll out develop an IR on a 1.3 million sq.m site, a half its operations, introducing more non-gaming hour drive from Jeju’s international airport. The attractions and organising global and regional resort will consist of five-star hotels, with about 1,000 rooms, MICE facilities, a spa, retail, villas baccarat tournaments.

“We believe that visitors from China would and condos, according to the company’s website.

“As a result of the improving Sino-Korea grow as long as the relationship between South Korea and China continues to develop positively,” relationship and the opening of a new tourist the company said in a results filing. “New routes complex, the numbers of visitors to Jeju reached or additional flights from Macau, Guangzhou a record high,” it said in a filing to the Hong Kong and Taiwan were launched from July 2018 Stock Exchange. “With effective promotion onwards, thereby improving the connectivity campaigns implemented, our casino saw the growth of the VIP gaming market.” between Jeju and these regions.”

The Jeju Dream Tower, a joint venture Bloomberry Resorts, which operates the Solaire Resort & Casino in Manila, also saw between China’s Greenland Group and South an improvement in its Jeju operations. The Korea’s Lotte Tour Development, is also expected company bought its property on Jeju in 2015 to open towards the end of this year.

“

”

VISITORS ARRIVALS Year-on-year growth (March 2018 - March 2019) Japan

+27.4%

Taiwan

+4.7%

Hong Kong -26.1% China Thailand

+20.9% -4.7%

United States

+5.2%

Market Share Taiwan 6.4%

Hong Kong 3.0%

Japan 24.4%

China 31.8%

Thailand 3.5%

Others 25.4%

U.S. 5.5%

GKL Q1 sales decline 11.2 percent Grand Korea Leisure posted an 11.2 percent drop in casino sales in the first quarter of 2019 to KRW108.26 billion (US$95.0 million). The year-on-year decline was due to a 12.7-percent decrease in table game sales to nearly KRW94.17 billion. Machine game sales were KRW14.09 billion, little changed from the prior year, the company said in a stock exchange filing. GKL runs three foreigneronly casinos under the Seven Luck brand.

Paradise City expands nongaming attractions Paradise City, which is operated through a joint venture between Paradise Co. and Sega Sammy, opened an indoor family amusement park, in March. WONDERBOX, based on the theme of a night-time fair, includes carnival-style games, a bungee drop and Ferris wheel, along with parades, the company said. “We have strengthened the entertainment side of the theme park to seek art-tainment,” Chang Wyan-ahn, vice president of Paradise SegaSammy, was cited as saying at a press conference. The new theme park is situated in a two-story building that covers an area of 3,933 square meters.

Asia Gaming Briefings | May 2019

NORTH ASIA 14

RUSSIA

Summit Ascent seen poised for VIP boom Summit Ascent Holding’s Tigre de Cristal resort in Russia’s Far East is seen as well positioned for significant growth in VIP revenue, helped by the entrance of junket investor Suncity Group Holdings as its major shareholder.

S

uncity Group, the listco of Macau’s largest junket operator, announced in April that it had bought a further 24.68 percent stake in Summit Ascent for HK$717.8 million ($91.5 million) as it seeks to build an “integrated tourism-related platform.”

The purchase takes the group’s total interest in the operator of the Tigre de Cristal in Russia’s Primorye gaming zone to almost 28 percent. The price per share was HK$1.94, which represents a premium of about 31.08 percent to the closing price as of the April 23rd date of the agreement, Suncity said in a filing to the Hong Kong Stock Exchange.

Commenting on its reasons for the acquisition, Suncity said the group wants to build an integrated tourism-related platform through equity investments as well as provide tourism-related services to the resorts.

“The company aims to increase its investment in tourism related property projects regions other than China, among which, the company believes that Russia is a favorable place for investment,” it said in the filing.

Asia Gaming Briefings | May 2019

Russia was in the top three, after the United Kingdom and France, most popular European travel destinations for Chinese tourists in 2018.

Overall tourism to Primorye has been growing

We see “ significant upside potential with respect to the company’s VIP program on a goforward basis.

”

at an annualized rate of over 30 percent over the past five years, helped by improving transport links. Direct flights from key feeder markets rose by 40 percent year-over-year.

Suncity said the timing was right for the acquisition as Summit Ascent is about to start on the Phase II expansion of the resort and the stake will give it more influence in the project.

Hong Kong-listed Summit Ascent has begun preparatory works for the construction of villas and serviced apartments next to the resort, which will increase accommodation capacity by about 50 percent when they are completed in early 2020.

“In addition, we plan to finalize the revised designs and financing for our Phase II project in the coming months and are now targeting an opening in the summer of 2021,” Summit Ascent Chairman Kuo Jen Hao said in the company’s annual report.

Analysts have said Summit Ascent is in a strong position to almost double its VIP business by 2020 after its second-half 2018 results topped expectations.

Union Gaming upgraded its rating for the operator to a “buy” after the release of results, which were helped by improving VIP revenue and continued strong growth in mass and slots.

NORTH ASIA 15

Russia to ban online instant-win lottery Russia plans to ban sales of online instant-win lottery games, claiming they are too close to online casino games, which are not permitted in the country, local media reports.

The Ministry of Finance is currently preparing legislation to implement the ban. The government has also approved a China-style ring fence of its domestic internet system. The “Runet” bill aims to wall off the country’s internet from the outside world and has been promoted as a way of ensuring the operation of online services in the event of foreign meddling.

“We see significant upside potential with respect to the company’s VIP program on a go-forward basis,” it said, adding that it is also likely to benefit from the cluster effect of an expected opening of a project by NagaCorp later this year.

Group profit for 2018 was HK$4.1 million, compared to a loss of HK$10.0 million for the prior year. Total revenue for the year was HK$463.2 million, down 1.6 percent year-over-

year, partly due to the weakening Russian rouble.

For H2, revenue declined 4 percent to $255.4 million, above Union Gaming’s forecast for $246.6 million. VIP volume in 2H18 was $9.1 billion, down 13 percent but well above the firm’s forecast for $7 billion.

“Upside to our expectations came from some number of returning junket agents and players who had been trialing other new(er) regional casinos, particularly in Korea. Given

the superior economics Summit Ascent is able to offer junkets (Vladivostok has the lowest gaming tax regime in all of Asia), as well as political sensitivities of China/Korea, this dynamic is not surprising.”

“With Suncity now in the mix, and under the assumption that both physical and HR infrastructure will be put in place over the course of 2019, we look for 2020 to experience significant growth in VIP volumes,” the firm said.

FUTURE DEVELOPMENT TERRITORY

(Source: Summit Ascent)

Asia Gaming Briefings | May 2019

NORTH ASIA 16

JAPAN

Local elections favourable for Japan’s IR development If at the beginning of this year one were to sketch out the dream scenario for IR development in Japan, the actual results of April’s Unified Local Elections would greatly resemble that picture, with pro-IR politicians and parties winning almost every battle, and usually winning big.

T

he stakes were arguably the highest in Osaka, the one major urban market where the local government has been moving forward proactively with an IR bid, together with its added bonus of landing the 2025 World Expo for the Yumeshima site.

The local ruling party—the Osaka Restoration Association—put it all on the line in the April 7 elections. Not only were the regularly scheduled prefectural assembly and city council elections held on that day, but also the gubernatorial and mayoral elections that had been scheduled for this November.

Governor Ichiro Matsui and Mayor Hirofumi

Asia Gaming Briefings | May 2019

Yoshimura resigned their posts seven months early and then ran for one another’s offices.

The gamble paid off handsomely for the Osaka leaders. Not only were Yoshimura and Matsui returned as governor and mayor respectively, but their regional party performed fantastically, winning an outright majority in the prefectural assembly and gaining a substantial number of seats in the city council.

This election had not been fought on the issue of the Yumeshima IR, but its outcome guaranteed fast-track development of the project led by a local government that is entirely committed to it.

In Hokkaido, the outcome of the elections was similar. While new Governor Naomichi

Suzuki has not overtly supported an IR bid for his northernmost prefecture, he decisively defeated an anti-casino candidate supported by all the opposition parties and who would have certainly brought the hammer down on local IR schemes. In the Hokkaido Prefectural Assembly, too, the ruling conservatives gained a single-party majority for the first time in 36 years. In short, pushed by the prefecture’s business community and the city government of Tomakomai, the stage is clearly set for the new governor to announce that he will support an IR bid.

This picture was pretty much the same everywhere else. The pro-IR mayor of Sasebo, Norio Tomonaga, was handily reelected, and

NORTH ASIA 17

conservatives swept every prefecture in the nation—aside from Okinawa which is locked in a battle with the central government over the construction of a US military airbase.

The minor exception came in Shizuoka city where a mayoral candidate proposing an IR bid for his municipality fell short in his attempt to unseat the incumbent mayor.

However, even here there is a silver lining, as it clears the way for the city of Makinohara, within the same prefecture, to move forward with its own IR initiative. Shizuoka Governor Heita Kawakatsu, however, has yet to tip his hand as to his own intentions.

At the root of these positive electoral results for IR development are factors, however, which are not necessarily positive for the Japanese nation. It is largely a reflection of a national political scene which is becoming less competitive and less genuinely democratic. Opposition parties are fragmented and organizationally weak. Voter turnout is falling to historic lows.

An increasing percentage of local officials no longer even have to face opponents as no one attempts to run against them.

But at this critical juncture of the Japanese IR race, where most of public opinion and every left-of-center opposition force wants to bring a halt to casino legalization, the conservative dominance is a windfall, allowing IR construction to go forward in spite of its unpopularity in all but a handful of local areas.

VISITORS ARRIVALS February 2019 Europe, Americas & Australia

Southeast Asia & India

East Asia

Others

United States 92.700 Vietnam 39.400

South Korea 715.800

Thailand 107.800

Hong Kong 179.300

Taiwan 399.800 China 723.600 (Source: JNTO)

Galaxy sponsors EuroJapan Cup Galaxy Entertainment has said it will sponsor the annual “EuroJapan Cup” for two consecutive years beginning this summer. Within this framework, English Premier League champions Manchester City Football Club will play the Yokohama F. Marinos at Yokohama’s Nissan Stadium on July 27. Ted Chan, chief operating officer of Galaxy Entertainment Japan stated, “We are very excited to be bringing the Galaxy Entertainment EuroJapan Cup to Japan for the first time this summer. Galaxy will continue to support a wide variety of sports and cultural events by bringing the world’s best entertainment to Japan while helping to raise Japan’s profile across the world. We also hope through our sponsorship to support the development of soccer in Japan and make a contribution to local communities for many years to come.” The 2020 EuroJapan Cup will be held in Osaka.

Genting plans multiple IR bids Genting Singapore Chairman Lim Kok Thay said his company plans multiple bids for an IR in Japan, including those outside of the major urban markets around the Tokyo and Osaka regions. Lim, speaking at a shareholder meeting, also expressed confidence that Genting would win one of the three available licenses. “Fortunately for us, the Japanese government has made it very public that they will use the Singapore model.

We have become the top tourist draw in Singapore and also contribute to employment and the local economy. I believe that is exactly what the Japanese government is looking for, whereas our other competitors bar one who is across the road wouldn’t be in the same position to claim they can do it.”

Asia Gaming Briefings | May 2019

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Asia Gaming Briefings | May 2019

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Asia Gaming Briefings | May 2019

SOUTH EAST ASIA

20

PHILIPPINES

PAGCOR’s targeting of Europe hits the spot The news at the start of the year that PAGCOR was promoting the advantages of gambling operators from the UK and Europe basing themselves in the Philippines comes at an interesting time in the development of Europe’s jurisdictional map.

P

AGCOR’s move – taking the opportunity presented by the ICE expo in London in February to extol the virtues of using Manilla as a hub – coincides with public concerns in the Philippines over the influx of Chinese workers among holders of Philippine Offshore Gaming Operator (POGO) licensees.

The latest news at the start of April was that at least three POGOs had shut down their operations amid a clampdown on tax avoidance by foreign workers. In response to reports, PAGCOR Chair Andrea Domingo was cited as saying: “I was told that they got scared because they might be over-taxed or something like that. But we don’t worry because what we’re doing now is that we’re marketing outside Asia; we started marketing in London.”

On the face of it, this jurisdictional raiding party would have found some willing listeners during its trip. While Europe remains a complicated regulatory patchwork quilt, there can be no doubt that in many of the regulated jurisdictions the level of scrutiny now involved in being an operator has become heightened.

In particular, the UK has within the past two years become a tougher market to negotiate as the UK Gambling Commission has moved to tighten up its oversight and more clearly flex its regulatory muscles.

This has had an effect on many of the offshore jurisdictions that are notionally within its ambit, particularly the Isle of Man which in recent years has become the jurisdiction of choice for many, mainly Asian-facing, brands which hope to take advantage of the marketing potential of advertising on English and Scottish Premier League football shirts.

“The news from the Philippines comes

SOUTH EAST ASIA 21

at an interesting time for the UK and largely Asian-facing brands,” said one legal source who preferred to remain anonymous. “188bet, for instance, will be pulling its UK operations at the end of the UK football season. We don’t yet know why that has happened.”

The source added that there were rumours circulating in UK regulatory circles of a “completely different approach” being adopted by the Commission with regard to issues around, for instance, the source of funds for any business with a UK licence.

“Certainly, the rumour is the Commission is looking more closely at the business plans it sees from its potential licensees,” he added.

Service centre Of course, the Philippine already hosts many largely UK or European-focused brands for various aspects of their business, including in particular customer service centres. But as Keith McDonnell, consultant with KMI Gaming, points out this is largely unrelated to whichever territories a company is operating into.

“This is all related to geographical location of service centres and the licensing required for that,” he says. “It doesn’t affect their target punter markets, whether serviced from Manila, Cambodia, Vietnam or Isle of Man. The Philippines is still a very attractive option given the costs and vast supply of knowledgeable resource available to operators setting up there.”

Indeed, the point about the number of Chinese workers at the POGOs is that they form only a part of the massive army of gambling-related employees throughout the Philippine-based gambling operator eco-system.

One experienced online gambling

executive currently working in Asia suggests the numbers involved now is in the region of 400,000 employed in the Manila region alone.

“These people have been here a long time and they generate a huge amount of money in the local economy and the vast majority are legitimate, paying taxes and behaving themselves,” the source says, again opting for anonymity.

It is also not entirely clear what the aims were of the PAGCOR ICE fishing expedition. It is, after all, one thing to offer non-core customer services from Asia; it is entirely another thing to look to launch operations into Asia.

As McDonnell says, while the Philippines offers attractive cost cuts in some areas, Asia is “not an easy market to crack.”

“Those who thought it was have usually found out the reality through their pocket,” he says, adding that Asia also won’t provide any regulatory option for targeting the UK or Europe.

“Of course, they could also decide to target Asia but their licensing structure is far from the greatest challenge in building a successful strategy for that.”

On a closing note, the experienced online gaming executive offers a word of caution regarding whether the pressure regarding Chinese workers at POGOs will continue and hence whether PAGCOR will feel the need to fill any kind of gap. “(The business is ) not going to go away because there is a dispute between two official agencies at a local level. That dispute will resolve itself, as it did a few years ago. There is too much invested here and there are too many people employed in the industry for all of that to go south.”

Suppliers asked for Filipino-themed games Suppliers have made significant strides in developing slot products for the Asian market in recent years, though so far there has been no real attempt to produce content themed for the rapidly growing Philippine market, an executive from a leading operator in the country said. Much of the focus has been on incorporating Chinese themes and designs to gain a foothold in Macau, where the play is dominated by table games. Despite the efforts, slot machine revenue still only makes up about 5 percent of gross gambling revenue, compared with 30 percent in the Philippines.

“We have a lot of popular games all over the Philippines, variations on card games, we want to see some of these things in our culture recognised,” Sandy Amida, senior director – casino operations at Resorts World Manila said at the ASEAN Gaming Summit in Manila. “The industry is expanding and it won’t be confined to the four IRs. It’s going to expand so I think the potential is there and we need some games and themes that Filipinos can easily relate to.”

Asia Gaming Briefings | May 2019

SOUTH EAST ASIA 22

Resorts World Manila

Bloomberry Resorts

Travellers International Hotel Group, a joint venture between Genting Hong Kong and Alliance Global, is the owner and operator of Resorts World Manila. For 2018, the company reported a 16.9 percent increase in gross gambling revenue, boosted mainly by the VIP sector.

GGR came in at P20.01 billion ($378.5 million). Casino drop gained by 36.8 percent, driven by a 59.1 percent gain in the VIP segment and a 3.7 percent increase for the mass market.

Net profit jumped to P1.4 billion compared to P279.8 million in 2017.

The hotel room count for the group’s three hotels (Maxims Hotel, Remington Hotel, and Marriott Hotel Manila) remains at 1,226. The property is currently in the third phase of its expansion, which will add approximately 940 rooms. It will also include new gaming and retail spaces.

Bloomberry Resorts’ Solaire was the first IR to open in Entertainment City and is now planning a second IR to the north of Manila to cater for the local mass market in Quezon City. It is also waiting for planning permission to build a $308 million cruise port in Paranaque City. Once construction begins, it sees the facility opening in 18 to 24 months. For 2018, full-year profit gained 18 percent to P7.2 billion, while net revenue gained 16 percent to P38.2 billion. Solaire’s gross gaming revenues were up 14 percent to P50.87 billion, driven by mass tables and slots. Mass table revenue was up 27 percent at P15.2 billion, while EGM revenue gained 18 percent to P13.8 billion.

Solaire is a 16-hectare integrated resort. The Bay Tower of Solaire consists of a casino with an aggregate gaming floor

GROSS GAMING REVENUE LICENSED CASINOS GROSS GAMING REVENUES (in million PhP) Non-Junket

2017

2018

48,078 64,278

Junket

33,575 42,910

EGMs

36,524 44,458

Total

118,177 151,646 (Source: Pagcor)

Philippines should consider online gaming for locals, politician says The Philippines will eventually need to regulate online gaming for locals to control rampant illegal gambling and generate revenue, the Hon. Gus S. Tambunting, representative for the 2nd District of Paranaque City and chair of the Committee on Games and Amusement said. “I know that it is still happening,” he said at the ASEAN Gaming Summit in Manila, referring to locals gambling online. He acknowledged given the strength of opposition from Duterte and the Catholic Church that the prospect of regulation isn’t imminent. However, he says it is something that is needed. “Right now opening it up would not be a good idea,” he said. “I think we are just delaying the prospect, but eventually we will have to go that way,” he said, referring to regulation. “In about five years after the current administration.”

Asia Gaming Briefings | May 2019

area of approximately 18,500 square meters (including 6,000 square meters of exclusive VIP gaming areas), with about 1,400 slot machines, 295 gaming tables and 88 electronic table games. The Sky Tower consists of a 312 all-suite hotel, additional ten VIP gaming salons with 66 gaming tables and 223 slot machines.

City of Dreams The $1.3 billion City of Dreams Manila is owned by Belle Corp and Melco Crown Entertainment’s local unit. Belle President and CEO Manuel Gana recently confirmed that the partners are considering expanding the City of Dreams brand elsewhere in the Philippines, potentially in a regional location. However, the company said there are no definite plans as yet and it would involve applying for a second license from PAGCOR. For Q1, Belle’s Premium Leisure Corp unit, which earns a share of gaming revenue from City of Dreams Manila, registered a 9 percent increase in gaming earnings, reaching P725 million.

City of Dreams Manila has six hotel towers with approximately 950 rooms in aggregate, including VIP and five-star luxury rooms and high-end boutique hotel rooms, a wide selection of restaurants and food & beverage outlets and a 4,612.44 square meters family entertainment center in collaboration with Dreamworks Animation.

Tiger Resort Leisure and Entertainment Okada Manila, owned by Japan’s Universal Entertainment, is the largest resort in Entertainment City and the last to enter the market, with a soft opening in 2016. The property spans 44 hectares and at the completion of Phase One, Okada will have 994 hotel rooms and operate 500 tables and about 3,000 slots. Its centrepiece is the world’s largest coloured fountain, as well as a giant inner city beach complex, known as “Cove Manila.”

The company reports gross gambling revenue figures monthly and for March posted a surge of 68 percent to P3.3 billion (US$63.9 million) , with a recovery in both domestic and international players. The company added a further junket in March, further helping boost VIP revenue.

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SOUTH EAST ASIA 23

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SOUTH EAST ASIA 24

MALAYSIA

Genting sees more clouds ahead Genting Malaysia, which faced a roller coaster of a year in 2018 amidst lawsuits and regulatory changes, is expecting another challenging year ahead.

I

n its annual report, Chairman and CEO Resorts World Genting property under the Tan Sri Lim Kok Thay said the steep Genting Integrated Tourism Plan. The upgrades increases in casino duties and license involved adding more non-gaming attractions, fees announced in last year’s budget as well as expanding its casino floor space. are likely to begin to bite into earnings Lim said the group was beginning to from 2019 onwards. As a result, the group feel the benefits from the expansion, with will continue to review its cost structure. visitation gaining 10 percent in 2018 to 25.9 “This includes reducing or delaying million visitors. For 2019, the outlook for capital expenditures and the implementation international tourism remains “moderately of various cost rationalisation initiatives positive,” though geopolitical tensions may such as manpower optimisation,” he said. affect consumer confidence in certain The budget included a 10 percentage economies, he added. point increase in tax to 35 percent of gross Last year saw the addition of more dining gambling revenue, as well as hikes in annual options at the SkyAvenue entertainment license fees and dealer complex and the newly licenses. The increases refurbished First World were much higher than Plaza. It also opened We are had been expected.

Medan Selera, a halalManagement has certified eatery and particularly indicated that the introduced RedTail and concerned about group’s EBITDA margin Empire by Zouk, two had been at about of the five distinctive the weak VIP 35 percent prior to destination zones in the business due to the tax hike and in a expansive Zouk Atrium. worst-case scenario It also completed the stiff competition. that margin could soft launch of the newly shrink to 25 percent. refurbished Skytropolis Some analysts say Funland indoor theme the cost-cutting program may harm the park, which offers more than 20 rides for group’s VIP business. all ages, and rolled out The VOID, the first The group posted a 10 percent contraction location-based hyper-reality experience in its VIP business in the fourth quarter of last centre of its kind in Asia. year, while the mass segment gained 4 percent.

However, the centerpiece of the upgraded “We are particularly concerned about the resort was to have been an outdoor theme weak VIP business due to stiff competition,” park in a joint venture with Twentieth analysts at TA Securities said in a recent note. Century Fox. Plans for the attraction remain “This is especially true for this year when the mired in legal proceedings after the U.S. group is mulling over a cost rationalisation company pulled out of the venture in late program, which may include cutting junket’s 2018, prompting a breach of contract lawsuit commissions, to mitigate the impact of an from Genting and a counter-claim from Fox. additional 10 percent gaming tax.”

“The development plans and options for Genting is now coming to the end of a the outdoor theme park are being reviewed RM10.4 billion ($2.5 billion) revamp of its amid ongoing legal proceedings,” Lim said.

“

”

Asia Gaming Briefings | May 2019

“The group remains committed to the outdoor theme park at RWG as a growth initiative in Malaysia.”

It’s not the only legal issue overhanging the company. On May 30th, the High Court is set to hear a challenge Genting has made to a Ministry of Finance amendment to tax incentives it received under the GITP program.

While in the U.S., the group says it’s continuing to work with the Mashpee Wampanoag Tribe to push for the reaffirmation of the Tribe’s land in trust status, which is needed for a planned resort development to go ahead.

Genting said it will work with the tribe in both the U.S. Congress and/or in federal courts to secure the affirmation. Genting recognised a loss of RM83 million last year, mainly due to an impairment loss from its investment in promissory notes to the tribe.

“The impairment loss can be reversed if and when the Tribe’s land rights are secured and the promissory notes are assessed to be recoverable,” it says.

SOUTH EAST ASIA 25

Illegal lottery revenue tops legal business

GROSS GAMING REVENUE (in RM million)

Revenue 9,927.6

2018

9,9330.3

2017 (restated)

8,931.6

8,395.9

8,229.4

2015*

2014*

2016*

Adjusted EBITDA 2,872.8

2018

2,209.0

2,432.8

2,306.4

2,247.6

2017 (restated)

2016*

2015*

2014*

* The comparatives have not been restated for the adoption of MFRS 15 – Revenue from Contracts with Customers.

(Source: Genting Malaysia)

Malaysia’s illegal lottery business is generating about 60 percent more revenue than the six legal operators combined, local media reports. While the six collectively report about RM9 billion ($2.2 billion) in annual revenue and are subjected to about 20 percent in gaming and corporate taxes, the illegal rackets are said to be raking in about RM15 billion a year, the Sun Daily said. The six legal number games companies are Sports Toto; Magnum 4D; Da Ma Cai; Sabah 88, Sandakan Turf Club and Sarawak Cash Sweep.

The revenue of illegal 4D operations is said to have risen by at least 20 percent since last year. In 2018, police conducted 12,162 raids nationwide on illegal 4D operations, compared to 9,931 in 2017.

Genting buys superyacht for $126m Malaysia-owned superyacht “The Equanimity” has been sold to Genting Malaysia Bhd for $126 million. The superyacht was one of many luxury items seized by the government as part of its 2015 probe into money laundering, after then Malaysia’s then-Prime Minister Najib Razak was accused of channeling over RM 2.67 billion (US$700 million) from 1Malaysia Development Berhad, to his personal bank accounts. Attorney General Tommy Thomas said that the Malaysian government is appreciative of the offer made by Genting, given the group itself owns a shipyard that builds superyachts and operates a luxury yacht division on its own.

Asia Gaming Briefings | May 2019

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SINGAPORE

Singapore allows $9 billion IR expansion, but raises taxes, entry fees Singapore has potentially breathed new life into its gaming market, allowing S$9 billion ($6.65 billion) of investment into non-gaming amenities and an increase in gaming space and machine numbers.

I

t’s the first major expansion since Las Vegas Sands’ Marina Bay Sands and Genting Singapore’s Resorts World Sentosa opened in 2010. The market swiftly grew to generate gross gaming revenue of about $4 billion a year, but has shown little signs of topline growth in recent years, with a lack of junket operators and no additional capacity to drive growth.

The Ministry of Trade and Industry and the Ministry of Finance said the latest round of investment from Las Vegas Sands and Genting Singapore would create 5,000 new jobs and bring in an extra half a million visitors a year.

The two IRs initially invested about S$15 billion and in light of the further financial commitment, the government agreed to extend

Asia Gaming Briefings | May 2019

the exclusivity period of the two licensees to the end of 2030.

It also allowed each of the two IRs to increase their total allowed gaming space and the number of gaming machines they can operate. MBS will be able to dedicate a further 2000 sqm to gaming and will be able to up its total number of gaming machines from 2,500 to 3,500. RWS will have an extra 500 sqm of gaming space and a further 800 machines.

However, the government points out that as non-gaming areas will expand by a much larger amount, the allowed gaming area as a proportion of total floor area will reduce from the existing 3.1 percent to 2.3 percent.

The IRs have indicated that the additional gaming provisions will be targeted at highertier non-mass market players, who are mainly

tourists, the government said.

The new allowances come with a sting in the tail. The government plans to up the local entry fee from April 4 by 50 percent to $150.

At the end of a current tax moratorium in February 2022, it will also introduce a higher tax structure, which will also include more tiers. For premium gaming the rate will rise to 8 percent from 5 percent on the first $2.4 billion in GGR and will rise to 12 percent thereafter.

For mass gaming, the tax rate also gains by three percentage points to 18 percent for the first $3.1 billion in GGR and then 22 percent thereafter.

“The long-term positives of the capacity expansion outweigh the tax increases and further limits on locals,” Bernstein Research analyst Vitaly Umansky said in a note.

SOUTH EAST ASIA 27

casino tax rate structure Current Tax Rates (Moratorium till February 2022)

GGR of each IR (entire amount)

Premium Gaming 5% Mass Gaming 15%

Revised Tax Rates

(Effective from March

2022, with a new 10-year moratorium)

Premium Gaming

(First $2.4 billion of GGR) Tier 1

8% 12%

Tier2

Mass Gaming

(First $3.1 billion of GGR) Tier 1 Tier2

In terms of the individual plans, Las Vegas tourists and our premium gaming customers.”

Resorts World Sentosa will expand Universal Sands said it will invest US$3.3 billion in a state-of-the-art 15,000-seat arena, a 1,000-room Studios Singapore with two new immersive luxury hotel tower and additional MICE space. environments – Minion Park and Super The hotel tower will also include a sky Nintendo World. It will also enlarge its popular roof with a swimming pool and a signature S.E.A. Aquarium, taking over the adjacent Maritime Experiential restaurant. Moshe Safdie, Museum to create a new who designed the original Singapore Oceanarium. Its property, and Aedas and Waterfront Promenade will Gensler are planning The long-term be redeveloped to include to be part of the team positives of the a free public attraction responsible for the design elements of the building. capacity expansion featuring a nightly show and multi-purpose event “New luxury hotel outweigh the tax zone that can be adapted accommodations and a for different festivals and world-class entertainment increases and events. Twonewdestination venue are exactly the further limits on hotels, together with the catalysts we need to drive locals. expansion of the Central additional visitation to Zone, will also add up Singapore, and specifically to 1,100 more rooms to Marina Bay Sands,” for RWS. said Rob Goldstein, the “We are on a journey to rejuvenate Sentosa company’s president and chief operating officer. “The expansion of our Singapore to cement our position as a leading leisure and IR is a key component of our company’s MICE destination for the next few decades,” strategic growth plan and also reflects the said Quek Swee Kuan, CEO of the Sentosa strong tourism and business potential in Development Corp. “RWS’ expansion will Singapore. The additional hotel rooms are be a significant boost. At the heart of these extremely important to us in addressing the efforts is our commitment to creating great demand created by our leisure and business guest experiences.”

“

”

18% 22%

SIS extends distribution accord with Singapore Pools SIS (Sports Information Services) has extended its agreement with the Singapore Pools (Private) Limited, as the distributor of live pictures and data from the Singapore Racecourse in Kranji, Singapore. As part of a new two-year deal, SIS will continue to broadcast all 800 races from one of Asia’s most highly regarded racecourses, home to the Singapore Triple Crown Series. The races will be made available to the UK and Irish retail and online customers via the newlylaunched SIS 24/7 Live Betting Channels, an end-to-end solution which offers 24/7 betting events to retail and online operators, with a betting event every 3 minutes.

Singtel to sponsor esports team Singtel said it would sponsor Singapore’s first Southeast Asian Games esports team and two new amateur leagues under the PVP Esports banner to help cultivate the budding gaming and esports scene on the island. “This year will be an inflection point for the industry in Singapore and the region,” Singtel’s International Group CEO Chee Hong Tat said. “The popularity of esports and gaming is increasing exponentially.

Asia Gaming Briefings | May 2019

FOCUS 28

Indochina’s increasing appeal You don’t have to be a mathematical genius to work out that with only three licenses on offer in Japan, there will be a great number of disappointed investors, presumably with substantial capital at their disposal.

W

ith Japan out of the equation, some operators will undoubtedly retreat to their home markets, though many others are likely to continue looking for opportunities to expand into Asia, the world’s most dynamic gaming region.

Indochina may provide some of the best potential.

Vietnam has introduced new regulation to cover its casino and sports betting industries over the past two years and is seeing a steady stream of foreign investor interest.

Cambodia is expected to release long-delayed regulations for its gambling industry at some point this year, though the market there is already booming, with 150 active casino licenses at the end of last year.

Smaller neighbour Laos is seeing some interest, with Macau Legend expressing a desire to expand its Savan Legend property, though expansion for the market as a whole is seen as limited.

Our focus section for this edition of Asia Gaming Briefings throws the spotlight on Indochina and some of the key recent developments. We profile the Corona Resort and Casino, which opened on the island of Phu Quoc in Vietnam in January. The debut marked

Asia Gaming Briefings | May 2019

a major milestone in Vietnam’s gaming evolution as it’s the first casino permitted to allow locals to gamble.

We take an overview of the resort and its facilities, the challenges it faces and the market response so far.

Also in Vietnam, we delve into the expansion of Suncity Group Holdings, whose Hoiana resort will open later this year. Macau’s largest junket operator is transforming into a pan-Asian investment company, spreading its reach into Cambodia, Russia and South Korea as it seeks to build an integrated tourism platform.

In Cambodia, live casino continues to boom, however the lack of strict oversight is raising concerns.

Alongside more established resorts, which are offering a valid omni-channel experience to guests, there is a proliferation of fly-by-night operations targeting Mainland China. We look at the ongoing appeal of live casino and whether uncontrolled expansion will fuel crime rates and ultimately a clampdown.

Lastly, no focus on Indochina would be complete without mentioning Sihanoukville. Expansion in what was a sleepy seaside town has been mind boggling, driven by an influx of Chinese capital under the “one belt, one road” initiative. We take a look at some of the developments and ask whether the boom is sustainable.

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Asia Gaming Briefings | May 2019

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Suncity’s diversification gamble Established in 2007 amid Macau’s casino boom, Suncity Group rose to become the former Portuguese colony’s largest junket business, operating opulent VIP rooms where well-heeled Chinese gamblers bet small fortunes on one hand of baccarat.

L

ately though, the Hong Kong-listed outfit, is going to be the flagship for diversification by investing in multibillion-dollar IRs across Asia. Indeed, Suncity Group has fast-become a multi-faceted conglomerate.

“It is a step forward for Suncity Group to diversify its business,” says executive director Andrew Lo, “from junket to resort and casino operator to become an international integrated entertainment company.”

Suncity signaled a real statement of intent last August when it completed the purchase of a 34 percent stake (worth $76.8 million) in Vietnam’s $4 billion Hoiana project near the tourist hotspot of Hoi An, situated within the Quang Nam province. Developed in seven phases over 13 years and covering 985 hectares, the first phase currently under construction comprises 1,000 hotel rooms, a casino with 140 tables and over 300 slot machines, and an 18-hole golf course. Phase 1 of the impressive-looking IR is earmarked to open in Q4 this year.

Phase 2, being finalized at the moment, is set to

Asia Gaming Briefings | May 2019

include 100 villas, two hotel brands boasting 2,000 rooms, a commercial village with retail stores and a theme park. A total of 4km of beach line will be part of the project, as well as more than a dozen restaurants.

“With Hoiana being the first integrated resort we have developed, we have high expectations,” says Lo. “It is totally different from hotels in Macau, in terms of the target market and operation strategy. The market positioning of Hoiana is a resort destination, [so] the revenue will not only come from the tables, but from other facilities.”

High rollers While Lo expects VIPs to be the main target visitors initially, overhauls to infrastructure in the region will be conducive to attracting mass-market visitors. This includes the redevelopment of Da Nang airport (which was completed in 2017), which is 40km up the coast from Hoiana and is expected to handle 13 million passengers in 2020, as well as

FOCUS 31

upgrades to roads and an increase in the number of hotel rooms.

“We believe the mass market will pick up in two to three years,” he says. “At the beginning, we believe the market will be 75 percent VIPs and 25 percent mass market, and from last year’s data we noted a boom in the number of Chinese and South Korean arrivals in Da Nang City. Therefore, we will mainly target VIPs from these regions.”

With a generally warm climate most of the year and more than 3,000km of coastline, Vietnam’s appeal as a tourism destination continues to grow. In 2018, the country welcomed 15.5 million international visitors (almost five million from China), up from 12.8 million the previous year, while De Nang’s international arrivals totalled 2.8 million – a 23.3 percent jump over 2017, according to the municipal Department of Tourism.

The city’s airport underwent expansion in 2017 and since then national and international airlines have launched direct flights to and from Da Nang. Tourist numbers from China, South Korea, Japan and Thailand are growing exponentially.

Suncity Group was quick to pounce on Vietnam’s rapid growth and potential when it established Suncity VIP Club at the Crowne Plaza Danang two years ago.

This foray into Vietnam was to “test the water and warm up the market,” as Lo puts it. Furthermore, Suncity has entered into an agreement to provide technical and pre-opening services to a resort project in Van Don, located in Quang Ninh province.

“With a total investment of $2 billion, we believe the project will become Vietnam’s latest tourist landmark,” Lo states confidently.

Regional presence Vietnam is just one piece of the jigsaw, though. Across the border in neighboring Cambodia – one of the world’s fast-growing gaming hubs – Suncity has forged a strategic partnership to provide consultancy services for a $360 million IR being built by Golden Sun Sky Entertainment in Sihanoukville, a once sleepy coastal city now awash with Chinese-run casinos and Chinese tourists.

Suncity Group has also long been cooperating with NagaWorld, the only casino resort in the capital, Phnom Penh, and last year opened its first VIP club: NagaWorld Suncity VIP Club.

With the influx of visitors from China (1.27 million in the first eight months of 2018), as well as an explosion in casino resorts and foreign investment, Lo believes there is “great potential in Cambodia’s VIP gaming market,”

in the coming years. More generally, from a cost perspective, it also makes commercial sense to expand into Cambodia and other parts of Southeast Asia, as he explains: “The tax rates in Cambodia, Manila and Vietnam are much lower in comparison to Macau, [while] the cost of operations, labor and hotel room allotments are comparatively cheaper. Despite the commercial risks being the same as Macau, the profit margins in these new markets are bigger.”

Elsewhere, Suncity recently inked a memorandum of understanding with South Korea’s Paradise Co. on possible cooperation on Paradise Casino Busan, a market Lo says will “continue to be a key tourist destination” for Chinese travellers. Suncity has also acquired an almost 28 percent interest in Summit Ascent, which operates the Tigre de Cristal casino in Vladivostok, Russia.

Looking ahead, Suncity Group has deployed a multi-pronged approach to expanding the group’s interests and revenue streams, as well as expanding its footprint across Asia. The group is now far more than just a junket business supplying Macau’s casinos with VIP players from Mainland China.

The ambitious Hoiana project – Suncity’s first IR – will be a major milestone in the journey and could truly take the group to the next level.

Asia Gaming Briefings | May 2019

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Can Corona lure in the locals?

On first glance, the island of Phu Quoc, with a population of just 100,000, would appear to be an unusual destination for arguably Vietnam’s most significant casino development to date.

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orona Resort and Casino, which opened in January, is the first venue in the country to admit Vietnamese nationals onto the floor under a three-year pilot scheme. Netherlandsbased Upffinity Gaming Management operates the venue under an exclusive management deal signed in May 2017, while Peter Keijzer, the former general manager of Holland Casino in Amsterdam, is serving in the same role at the Phu Quoc venue.

The casino’s location, though, is seen by some as a big challenge.

“We heard it was slow at the beginning, but it’s picking up,” Fortuna Investments director Tim Shepherd said at the ASEAN Gaming Summit in March. “The junkets are starting to pay attention. It’s slow, but it’s getting there.”

Augustine Vinh, president of Stellar Management

Asia Gaming Briefings | May 2019

Corp. and adviser to the Vietnamese government on gaming-related issues, added: “Phu Quoc is a small island. They are hoping to get people from the provinces in the south and maybe some from Cambodia. They want the Vietnamese from Ho Chi Minh City to get on a plane as it’s only a 45-minute flight and it’s quite cheap.”

Connections Situated in the Gulf of Thailand, Phu Quoc is a stone’s throw from Cambodia. Daily direct flights of less than two hours bring in tourists from Bangkok to the island’s international airport, which opened in 2012 and welcomes four million travellers per year.

Positioned for domestic and international visitors, Upffinity chief operating officer Goran Milosheski

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insists Phu Quoc is the right location for many reasons, one of which has been significant recent investments in infrastructure on the island.

In 2014, Phu Quoc was designated as a special economic zone by the Vietnamese government, allowing all visitors to stay on the island for up to 30 days visa-free, boosting the picturesque island’s tourism and international trade prospects.

“There are no other casinos on the island of Phu Quoc,” Milosheski says. “Considering such substantial investments, we believe that this project will draw more travellers to the island from Vietnam and rest of the region.”

Local interest Currently about 40 percent of the casino’s visitors are Vietnamese, with around 10 percent being from Phu Quoc.

“We expect the Vietnamese segment to grow significantly in the coming year,” Milosheski adds. “The local economy is experiencing a significant inflow of capital, especially in local and international tourism.

“There are multiple new hospitality projects being developed in Phu Quoc and the local population is mainly involved in hospitality, fishing and small manufacturing.”

The casino itself, designed by Steelman Partners, forms part of an extensive integrated resort featuring five-star Radisson Blu and VinOasis hotels, with a combined total of nearly 2,000 rooms, a convention centre, theatre, shops, an 18-hole golf course, a safari attraction and an amusement park.

“There are lots of amenities in terms of entertainment and leisure, as well as gambling,” Milosheski adds. “It takes inspiration from similar projects in Asia and the western hemisphere.”

Casino floor The 18,000 square metres of casino space offers 100 tables – including baccarat, roulette, black jack, sic bo and poker variants. There are 30 automated roulette stations and about 850 slot machines.

Baccarat and roulette are the “games of choice” at the casino, according to Milosheski, with minimum bets of VND500,000 ($21.50) for the former and VND50,000 for the latter.

Black jack bets start at VND300,000, while the casino’s 1,000 electronic gaming machines offer bets from VND10,000. A total of 125 stadium gaming terminals, offering live dealer roulette, are also available.

The casino has three restaurants, as well as bars and lounges. Up to 1,500 guests can be welcomed at any one time, with predictable spikes in visitor numbers on evenings and at weekends.

To cater for the visitors, the resort employs about 1,300 staff members, of which about 500 are casino staff.

“We expect these numbers to increase to 1,500 staff members in total, with around 600 being casino staff,” Milosheski says.

“Our casino staff are recruited from around the country, with a small number of experienced expatriate managers from the major markets of Macau, Singapore and Manila. More than half of our dealers were trained from scratch by our expatriate professionals.”

VIPs Without disclosing specifics, the casino’s source of revenue is largely via VIPs, Milosheski says.

“Corona offers several VIP gaming areas, including three areas on the main floor, two VIP gaming areas on our mezzanine floor, and finally, our VVIP gaming area and private gaming spaces in our Sky Casino with its spectacular views,” he adds.

Estimates in 2017 suggested that Vietnamese spend $800 million on gambling in neighbouring countries every year, but attracting and retaining high rollers will be a key challenge for the casino, according to Vinh.

“The government wants to stop the outflow of money from gaming, but the high-roller players don’t want to play in Vietnam,” Vinh adds. “They don’t want the scrutiny so they go to Macau and Singapore if they are high rollers, while the low end goes to Cambodia.”

Whilst the opportunity for locals to gamble at Corona has monopolised media interest in the development, it is clear that the long-term success of the casino is more likely to hinge on whether VIPs can be persuaded to travel to Phu Quoc and try out a new and unique gambling experience.

Asia Gaming Briefings | May 2019

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Robust rules lacking in live casino boom Cambodia is Indochina’s undisputed king of live dealer gaming, with land-based casinos rushing to install dedicated set-ups to stream action from gaming floors to online players.

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ambodia has witnessed an explosion in casino gaming of late – and it shows little sign of subsiding. There were 150 active casino licenses at the end of 2018, according to the country’s Ministry of Economy and Finance, which was a 53 percent increase on the previous year’s total of 98 active licenses. Despite the fact it’s illegal for Cambodians to gamble, the country has a booming casino market, attracting gamblers from across Asia.

Asia Gaming Briefings | May 2019

However, securing a license in Cambodia means a casino is, by default, able to offer online gaming too, including the live streaming of games for online players to bet on remotely. This tantalizing prize means the prospect of installing and launching a lucrative live casino offering is often the primary reason for seeking a license in the first place. It has also turned the Southeast Asian country into a hotbed for live dealer gaming.

One operator betting big on live casino in Cambodia

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is Donaco International at its Star Vegas casino in Poipet, a border town neighboring Thailand that is the closest legal gaming destination to the greater Bangkok area (a four-hour drive away). As well as over 100 gaming tables and 1,500 slot machines catering mainly to Thai nationals, the resort has also installed a live casino set-up consisting of 12 tables offering baccarat, sicbo, roulette and dragon tiger.

The games are streamed live from a dedicated space overlooking a section of the property’s casino floor. Star Vegas is also in the testing phase of a relaunch with a new software platform. “Players in Asia especially have more trust when physical cards and live dealers are involved,” says Ben Reichel, executive director of Donaco International. “Also, of course, having a real physical casino with a solid reputation and valid operating license is very important to build trust in online gaming.”

The ASX-listed operator bought Star Vegas – Poipet’s largest casino – for $360 million in 2015. Yet live gaming wasn’t a driving force at the time.

“We purchased the Star Vegas business primarily for the strength of its physical casino offering, to players from Thailand and Bangkok in particular,” says Reichel.

“Online is a growth area, as the business has not previously sought to operate in this market. We are proceeding cautiously and ensuring we retain the strength of the brand that Star Vegas has built in the Thai market, and increasingly in other Asian markets.”

Besides Poipet, the port city of Sihanoukville is also a live casino hub. Once a quiet fishing village and a haven for backpackers, Sihanoukville has become a magnet for Chinese investment, including the construction of casinos. There are more than 30 casinos and some 70 more under construction in this special economic

zone, turning this part of Cambodia into a mini Macau.

Canadian Jonny Ferrari worked out of Sihanoukville as a consultant to Cambodian casinos before recently relocating to the US. Speaking to AGB from Texas, he pulls no punches when discussing the proliferation of live casino. “Cambodia is the number one exporter of live casino because it’s so easy to procure a license. It’s easier to get a license for live casino than a license for a restaurant.

Plus, you can bribe [officials]. Everything and everybody are for sale – and I mean everybody.”

He adds: “Sihanoukville is the Wild West and a cesspool for corruption.”

So, with casino licenses fairly easy to secure, as well as scant regulation and oversight, it’s clear why casinos are quick to set aside areas for live dealer tables, as well as HD cameras, microphones and the back-end infrastructure to stream the action online. The primary target for live casino players are gamblers situated in Mainland China, where almost all forms of gambling are outlawed.

To stay under the radar there, agents on the ground recruit gamblers to play on websites with URLs containing a jumble of letters and numbers, while cryptocurrencies are a common payment method. Often though, according to Ferrari, live casino can be as rudimentary as an agent sitting at a table in a Cambodian property and taking photos on his phone of the cards and bets. “They [Chinese gamblers] are placing bets through their stealth agents who are physically there,” Ferrari explains.

With no cap on the number of land-based licenses due to be awarded in Cambodia, the live casino gold rush is set to continue unabated – and unchecked. Yet Reichel says the high-profile brick-and-mortar brands hold the upper hand. “Some operators have been setting up physical casinos solely in order to offer online gaming. But unless they have a solid track record of operation as a physical casino, many online players will not trust them anyway.”

What Cambodia desperately needs is a robust framework to properly regulate online gaming. This would legitimize live casino and help create a proper omni-channel gaming experience similar to Europe where operators strive to provide a seamless experience between land-based and online.

This does seem some way off, though. For Ferrari, live casino is likely going one of two ways: “There is either going to be a major explosion of legitimacy, or there is going to be an implosion by way of criminality.”

Asia Gaming Briefings | May 2019

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Sizing up Sihanoukville Construction in the once sleepy seaside town of Sihanoukville is everywhere, with cranes, cement trucks, container lorries, and excavation generating clouds of endless dust.

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f all the locations in Cambodia seeing an increase in foreign casino investment, the coastal town is far and away the most buoyant. Out of the 52 new casino licenses granted in 2018, 78 percent of those went to operators seeking to set up shop in Sihanoukville.

The rapid transformation, driven by billions of dollars of Chinese investment, has inevitably lead to concerns that the development is not sustainable. It’s driving up prices for locals and pushing away visitors from its traditional tourism markets.

However, experts say there are a series of factors underlying the boom that should underpin the market, as long as relations with China remain

Asia Gaming Briefings | May 2019

stable. The changes may have scared away penny pinching backpackers, but they are being replaced by high-spending Chinese.

“In just a few years Sihanoukville, without doubt will become a transformed city,” says Dominick Stenson, casino director at Queenco, one of the more established properties in the region. “All the elements will be in place for it to become a major tourist and gaming destination.”

“Even now when it’s in embryo stage there are thousands of new Chinese tourists visiting the casinos here. Not only Chinese, there are increasing numbers of Malaysians also coming in large numbers,” he adds.

Stenson said there are big brand hotels, which

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are slowly putting their toes in the water with some major builds planned in the next two years. Many casinos are moving onto the second phase of development and the smaller properties that shot up to meet nascent demand are now seeing business decline as visitors migrate to the higherquality resorts.

Queenco, which has 20 main floor tables and 10 in a junket area, is adding another 200 rooms bringing the total to 400. It is also constructing a new VIP gaming area and will begin to convert another area in the casino to an online studio.

The next step will be a mega project on Queenco’s beach-side land at Otres Beach, with an investment of more than $900 million.

The five-star integrated resort will be built on nine hectares of prime beachfront, with two hotels totalling 3000 rooms and suites, a casino, shopping centre, convention centre and condominiums. The project is planned to start mid 2019.

According to Global Market Advisors partner Andrew Klebanow, who carried out on the ground checks last year, there are four main factors driving growth in Sihanoukville, mostly linked to investment under China’s “Belt and Road,” initiative.

The town is home to a deepwater port, which is a major hub for the export of finished goods. That port is being expanded to accommodate larger vessels, which in turn is expected to drive further growth and boost the number of expatriate workers living in the area.

Just 12km from the port lies the Sihanoukville Special Economic Zone, one of the landmark projects along the “belt and road,” which currently houses about 90 factories making products ranging from garments to hardware and machinery.

The SSEZ, which is a venture between Chinese and Cambodian companies, has ambitious goals to expand that number to 300, employing between 80,000 to 100,000 people.

“Those factories will require foreign managers, logistics personnel, etc., driving demand for housing for these expatriates as well as demand for lodging from business travelers,” Klebanow said.

A new $2.1 billion super highway is being built between Sihanoukville and the capital Phnom Penh, which will cut the five-hour journey time in half, opening the area to weekend traffic from the city’s expatriate workforce, while the airport is adding new destinations providing direct

links to regional destinations.

Currently about 10 airlines fly from Sihanoukville, with direct flights to Macau, six Chinese cities, Kuala Lumpur and Ho Chi Minh City in Vietnam.

The airport handled over 650,000 passengers in 2018 and has experienced triple-digit growth every year since 2016.

From July, Thai AirAsia is expected to start flying between the town and Bangkok, opening the market to Thailand, whose visitors are the main clientele of Cambodia’s border casino town Poipet.

“Considering that Poipet is a miserable 3 ½ hour drive from Bangkok, hopping on a 45 minute flight to Sihanoukville presents a very attractive alternative for residents of Bangkok seeking a gaming/beach vacation experience,” says Klebanow. “I remain convinced that Bangkok is an underserved market, given the product offerings in Poipet and travel time via ground transport to that market.”

As new resorts mushroom, the size and scale are new to anything the Cambodian market has seen before, with high rise towers, offering a mix of rooms, condominiums and casinos.

To name but a few, last October, the The Xihu Resort opened with 507 keys, three floors of gaming, a helipad and a dock.

While Hong Kong-listed Suncity Holdings last September signed a services accord to operate the $360 million Golden Sun Sky Resort. The project will cover a gross floor area of approximately 550,000 square meters of which approximately 120,000 square meters will be allocated to the casino. It will comprise hotel accommodation, restaurants, commercial units, a residential complex and sports and meeting facilities. So is this development sustainable?

“All in all, the prospects for Sihanoukville from a tourist and gaming perspective are very bright for those who are willing to invest in a better product,” Stenson says.

Klebanow agrees and adds that longawaited legislation covering the casino industry is expected this year, which will further open the market to a different sector of investors.

“There are not a lot of new development opportunities in Asia once one gets past Japan. The barriers to entry are lower as is the amount of capital needed to develop a resort destination,” he says. “I believe the LMCG (casino regulation) will be a game changer. Regional foreign casino operators will be able to enter the market with the assurance that they will not be jeopardizing their privileged gaming licenses in other jurisdictions.”

Asia Gaming Briefings | May 2019

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AUSTRALASIA

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AUSTRALIA

Packer reveals his cards James Packer’s Crown Resorts has become one of the gaming industry’s prized takeover targets after the company disclosed it had been in talks with Wynn Resorts about a potential acquisition.

Asia Gaming Briefings | May 2019

AUSTRALASIA

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rown’s premature disclosure of those talks sent Wynn running for cover, though investors still seem to judge that a deal...with someone... may be on the cards.

The stock, which had been languishing near 52-week lows jumped 20 percent the day after Wynn’s approach was revealed. Although news the talks had failed predictably sent the shares back down to earth, they didn’t give up all of their gains as investors bet another suitor will step forward sooner or later. Some are even betting Wynn will come back to the table.

“I think this is very much a tactical play on Wynn’s behalf,” Adam Dawes, senior investment advisor at Shaw and Partners, told CNBC television. “I think they let this deal fall over but we do feel this deal will eventually happen.”

The Las Vegas-based company had offered A$14.75 a share in a mixture of cash and stock in a transaction worth about $10 billion ($7.1 billion).

The purchase would have added Australia’s Crown Melbourne and Crown Perth integrated resorts to Wynn’s portfolio as well as Crown Aspinalls in London. The Australian operator is also building Sydney’s first six-star property on the waterfront at Barangaroo that will be restricted to table games only and targeted mainly at Asian VIPs. Crown also possesses a growing online business, including Betfair,

DGN Games and Chill Gaming.

Some analysts saw the approach as a defensive move by the U.S. operator to gain critical mass to avoid becoming a takeover target itself. It also marks a significant change in strategy for Wynn, which has in the past been a builder of assets and not a buyer.

Fitch Ratings director Colin Mansfield said the ratings agency believes the acquisition would have been positive for Wynn, providing the company with a portfolio of high-quality assets in a market it has no presence.

“When we first heard the news of the transaction, our first initial response was that the addition of the assets of Crown to Wynn’s overall portfolio would be a positive thing for Wynn from ... both an operational and a strategic perspective,” he said on CNBC’s Squawk Box. However, others expressed scepticism, warning about the U.S. operator’s lack of knowledge of the Australian market and the possibility of becoming bogged down in the country’s notoriously strict probity process.

For Crown, the tie up could have made good business sense. The company has been without a presence in Macau since exiting its joint venture with Melco Resorts & Entertainment in 2017 and will be relying heavily on Chinese high rollers to fill its Sydney property.

The group retrenched its international positions after 19 of its employees were arrested

GROSS GAMING REVENUE

(in millions of AUD)

Crown Melbourne Table games (non-program play) Gaming machines

Non-gaming

Crown Perth 397.7

99.4

233.0

Main floor gaming (total) VIP program play

in China in 2016 on gambling-related charges.

Those arrests caused the group’s VIP business to plunge and although there was subsequently a rebound, concerns are mounting again due to the slowdown in the Chinese economy.

If Wynn is definitively out of the picture, Deutsche Bank analysts pointed to Hard Rock and Genting as likely partners, while others have said it may be a consolation prize for those who fail to gain a coveted Japan license.

“For businesses already operating in the region, it makes sense too, to consider the deal,” Delta State Holdings managing partner David Bonnet was cited by local media as saying. “Acquisition is the only way to enter a monopoly-style market.”

James Packer, through a private holding company, still owns 46 percent of Crown, even though he gave up his seat on the board last year. His representatives have not commented publicly on a potential sale, though Bloomberg cited biographer Damon Kitney as saying this was a clear sign the billionaire was “putting up his hand and saying I’ve had enough of the spotlight.”

Any potential buyer therefore will need to convince Packer they are the right suitor, which brings the circle back around to Wynn. The Australian and Wynn founder Steve Wynn are known to have good relations dating back many years and this could give Wynn the advantage.

137.5 630.7

233.3 254.9

236.9 34.8 146.0 (Source: Crown Resorts)

Australians gambling less, survey finds There has been a large drop in the number of Australians who gamble, falling to 47.9 percent of the population, or 9.3 million, compared with almost two thirds of adults a decade ago, according to a survey by Roy Morgan. The survey is based on face-to-face interviews with more than 50,000 consumers in their homes. It began in 2002. This year’s survey found that there has been a decline in participation in all types of gaming, though the biggest drop was for lottery and scratch tickets, which are the most popular gaming category. The participation rate declined 16.3 percentage points to 40.1 percent. Those playing pokies dropped by 11.

9 percentage points to 13.7 percent, followed by betting down 5.9 points to 9.4 percent.

Younger Australians were the least inclined to gamble, with participation in the 18 to 24-year age group at just 25.7 percent, followed by the 25 to 34 segment at 37.5 percent.

Levy to take helm at Ainsworth Ainsworth Game Technology has appointed former Novomatic vice president of global sales, Lawrence Levy, as chief executive officer. The appointment will take effect on July 1st and Levy will receive an annual base salary of AS$700,000. He will also be entitled to an “at risk” bonus of $300,000 per year and a long-term incentive of $100,000. Levy has held senior positions within the gaming industry over a successful career spanning 37 years. “Lawrence is a highly respected and experienced gaming executive and I am confident that he will further assist the company achieve its strategies to become a leading provider of innovative gaming technology to the global market,” said Ainsworth Chairman Graeme Campbell.

Asia Gaming Briefings | May 2019

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CNMI

IPI secures financing but construction deadline slips Imperial Pacific said it believes it has adequate funds to cover its working capital needs for at least the next 12 months after a round of talks with lenders, though the operator has warned that it will not be able to meet the new extended deadline for completion of the resort.

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he Hong Kong-listed operator posted a loss of HK$2.97 billion ($378.4 million) in 2018 from a profit of HK$637.5 million the year earlier after revenue plunged by more than 58 percent.

VIP revenue, the mainstay of its operations, plunged 60.4 percent to $2.9 billion.

Imperial Pacific said its results had been badly affected by Typhoon Yutu in October, which shut down the island’s airport for a month; distractions from the FIFA World Cup in summer and also a tightening in marker credits as the group sought to get bad debts under control.

The group had net current liabilities of HK$4.74 billion and capital commitments of approximately HK$457.75 million as of 31 December 2018.

Despite this, “directors consider that the group will have adequate funds available to enable it to operate as a going concern,” it said.

Imperial Pacific recently secured HK$543 million in loans from independent third parties and agreed with lenders to extend the repayment terms on some $434.8 million, which had been due this year.

It also agreed to the refinancing of loans already overdue to the latter part of this year and secured $1.15 billion in credit facilities.

“The management is in discussion with certain potential investors with a view to secure long-term financing principally to be used to complete the remaining construction of the integrated gaming resort,” it said.

However, when the resort will be completed is still up in the air. At present, the operator is relying on three villas and four yachts, as well as rooms secured from high-quality local hotels to accommodate its VIP guests. The hotel room shortage on Saipan is impeding the company’s ability to attract higher volumes of guests and therefore completion of construction is key.

Asia Gaming Briefings | May 2019

In March, Imperial Pacific’s vice president for construction Eric Poon told the local regulator that they will not be able to meet the extended deadline for completion due to an ongoing labour shortage.

After missing a deadline to get the first

phase of the resort finished last August, the group negotiated a Feb. 28, 2021 deadline with regulators. The group has now said it expects a “partial opening” on Sept. 30th, but gave no details as to what facilities would be available.

Poon told the Commonwealth Casino

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Commission that Imperial Pacific only had 253 workers on site, about a quarter of the optimal number.

Saipan is facing a severe labour shortage after the U.S. Department of Homeland Security removed the Philippines from a list of countries eligible for the H-2B visa program.

The Philippines was one of the biggest source markets for the company for workers.

Poon told the commission that teams were sent to recruit construction workers in Taiwan, Thailand, South Korea, Mongolia and other countries eligible for the H-2B program.

Meantime, he added, the shortage of workforce “seriously impacts the current progress.”

In an interview, House Committee on Commerce and Tourism Chairman Joseph Leepan T. Guerrero said any further delay in the completion of the project may result in an increase in the cost of construction and procurement of goods and services needed by the casino.

MARKET arrivals JAN/FEB 2018

2019

% change -16%

30,000 25,000 20,000

-47%

15,000 10,000 5,000

-76% -83%

0

Japan

Korea

China

HK

(Source: Marianas Visitors Authority)

Workers claim forced labour, human trafficking Imperial Pacific is being sued by former construction workers, claiming they were victims of forced labor and human trafficking during their time with the company, Reuters reports.

Seven Chinese construction workers made the claim to the Federal Court in Saipan, seeking unspecified monetary compensation for their pain and suffering, as well as punitive damages.The company has been plagued by labour issues, mostly relating to an external contractor who was illegally employing Chinese workers. That contractor is no longer working with the company.

Saipan airport to get $121.1m in repairs, upgrades Saipan’s main international airport, which was heavily damaged in last year’s Typhoon Yutu needs investment of about $121.1 million to upgrade facilities and restore services, local media reports. Among the items that need to be replaced are loading bridges, the perimeter fence, the bus canopy to the commuter terminal, a storefront window and door, air-conditioning unit, waterproofing, rotating beacon, and flag pole. Repairs are needed for the commuter terminal, air traffic control tower, the Aircraft Rescue and Fire Fighting training facility, and incinerator facility. The terminal also needs to be repainted. Another project includes $22 million for the replacement of CTX machines to scan luggage.

Asia Gaming Briefings | May 2019

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SOUTH ASIA

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INDIA

Shaping sports betting legislation Popular Indian politician, Shashi Tharoor, a member of the main opposition Congress Party, stirred the political pot earlier this year by introducing a private member’s bill into parliament calling for the legalisation and regulation of online sports betting. While the bill isn’t expected to pass in its current form, it was seen as an important step in firing up the debate on the issue in India, which is seen as one of gaming’s last great untapped frontiers. Mr Tharoor spoke to Asia Gaming Brief about his rationale for introducing the bill and the likely next steps.

Asia Gaming Briefings | May 2019

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he 16th Lok Sabha has been dissolved and all the pending bills have lapsed.

Will you reintroduce the bill when the Parliament reconvenes?

The composition of the 17th Lok Sabha will determine the future course of action for my legislative work. However, whether I am in the opposition benches or part of the treasury benches, I will try to push for steps to improve the integrity of sports based on the principles enunciated in The Sports (Online Gaming and Prevention of Fraud) Bill, 2018.

Private Member bills have a low chance of being turned into Acts. Is the intention behind the introduction of such a bill to have the issue debated in the Parliament as well as on other platforms?

The purpose of my Private Member Bill is to initiate a public discussion on issues which require some form of legislative redressal. This in turn will help bring the topic to the attention of the Government. It also provides an opportunity for the Government to bring a Bill of its own, based on the basic principles enunciated in a Private Members Bill.

Is the honorable MP open to discussions with a body like AIGF, which has been working for the legalisation/ regulation of the industry?

I did speak to the AIGF and experts in the field of sports law, during the drafting process of The Sports (Online Gaming and Prevention of Fraud) Bill, 2018. Their inputs and comments were useful. Legislation must be prepared after consulting relevant stakeholders. However,

SOUTH ASIA 43

Government departments have greater flexibility in holding pre-legislative deliberations, whereas the extent of consultations an individual MP can undertake is fairly restricted. Unfortunately, most laws are made in our country without comprehensive consultations.

Should online gaming and sports betting be regulated at the central level and offline gambling at the state level, keeping in mind the local conditions? Does the honourable MP believe there should be, in due course, regulation/legalisation of offline gambling too at a central level?

The Constitution of India empowers the States to make laws on “Betting and Gambling,” as it is enumerated in Entry 34 of List II of the Seventh Schedule. The Law Commission of India in its 276th Report recommended the regulation of betting activities, and noted that the Parliament can enact a law under Entry 31 of List 1 of the Seventh Schedule (telecommunication) to regulate betting on sports which takes place through a telecommunication device or online betting. Given the legislative limitations, my Bill only deals with online sports gaming.

Ideally, a consolidated approach is needed.

This can be fulfilled if the Centre takes the initiative to take all the States along to implement similar legal frameworks across all the States in relation to betting and gaming. Otherwise, a constitutional amendment is required to bring this subject under the purview of the Parliament. Under the present constitutional design of governance, a central law on offline gambling is not possible.

Would it be possible in the long term, in the view of the honourable MP, to bypass entrenched views in the society looking down on gambling as an immoral activity?

I have always argued in favour of individual liberty and the need to dismantle outdated laws which reenforce paternalism. Due to the fact that the State views betting and gambling from a moralistic sense, it made laws to suppress it.

However, instead of changing human behaviour, the laws only pushed the betting sector into the black market and brought it under the control of rackets and crime syndicates. Regulation of this sector, rather than its prohibition, can help increase revenue for the State, encourage investment and generate employment. It will also make it easier to identify criminal elements and reduce the generation of black money. I believe it is possible for us to work towards a State, which mainly enforces constitutional morality, rather than majoritarian morality.

GROSS GAMING REVENUE Overall GGRE $60b Casinos turnover $100m-$125m Horse racing $250m-$400m Lottery $12-14b (Source: KPMG and ICRA)

Delta invests $10m in cruise ship business Delta Corp has announced it is investing $10 million into Essel Group’s cruise liner business, which will allow it to get preferred rights to operate casinos on board, according to a filing.

The agreement involves Gaussian Software Pvt Ltd, a wholly-owned subsidiary of Delta Corp to subscribe to 10 million shares of Jalesh Cruises Mauritius (JCML) – which will allow Delta to eventually hold over a 25 percent stake in the company. The cruise ships operated by JCML service a number of destinations from India and the Middle East – and include various entertainment and hospitality venues, including casinos and gaming centers.

Investors eye i-gaming startups India’s gaming startups are continuing to attract strong interest from overseas investors, with recent deals involving funding from the U.K. and Japan.

Sports Gaming UK, the parent company of India Bet, has invested in India fantasy sports startup PlaySafe Games Pvt Ltd. for an undisclosed amount, while eSports start up GamingMonk has raised $100,000 from a listed Japanese firm, G.Laws reports. PlaySafe is the operator of fantasy gaming site Scoring11. The acquisition will give Sports Gaming a 20 percent stake in PlaySafe Games, with the remaining 80 percent of shares in the company held by India Bet head of operations CEO Harshit Mehta. Esports startup GamingMonk raised funds from Japan’s GameWith.

Asia Gaming Briefings | May 2019

SUPPLIER SPECIAL REPORT 44

g2E Asia 2019

Twelve years of success Global Gaming Expo Asia (G2E Asia) returns to the Venetian Macao on 21-23 May, 2019, offering a one-stop platform to industry professionals to network, forge new connections, source new products and solutions, and gain insight into the latest global industry trends.

T

he show claims to attract more than 96 percent of casino operators from Asia, who come to look for the latest cutting-edge products and solutions.

This year’s exhibition will spotlight a number of key industry segments, namely Digital Content & Technology, a combined exhibitor showcase and fullday forum for Asia’s gaming technology community; Parts and Components Pavilion, Asia’s first and only trade platform dedicated to the showcase of parts and components of the electronic gaming machine manufacturing industry; Integrated Resort Technology & Business Solutions, the region’s first-ever event to centralize sourcing of new IR products, technologies and services that drive revenue and value from nongaming sources; and the Asia Lottery Expo and Forum, a threefold business, learning and networking platform exclusively designed for lottery professionals.

The latest addition to the expo’s events schedule is Financial Technology Asia, jointly organized

by G2E Asia and Blockchain Labs Co., Limited.

Financial Technology Asia will spotlight AsiaPacific’s skyrocketing FinTech industry, and provide

Asia Gaming Briefings | May 2019

a unique opportunity for financial technology and solution providers to showcase the latest solutions and services, including cloud financial solutions, blockchain technology, cybersecurity, FinTech, and payment solutions.

“We are pleased to be partnering with Blockchain Labs to organize the Financial Technology Asia exhibit segment and high-level forum,” said Josephine Lee, chief operating officer of Reed Exhibitions Greater China. “G2E Asia’s new coverage of the financial aspects of cybersecurity directly responds to market needs, while providing financial technology and business solutions for the whole of the gaming and entertainment industry. Our partners and the team have good reason to be confident in the success of this new segment.”

Just earlier this month, the organizers also announced a new segment, ArtBiz Asia, which also debuts in 2019. ArtBiz Asia is co-organized by G2E Asia and Macao International Culture and Sports Industries Association (MICSIA). In line with local government’s strategy of promoting a diversified economy, ArtBiz Asia creates a platform that connects the arts and culture circle with integrated resorts in Asia and drives opportunities between art industry professionals and Asian elites.

The event will also bring notable industry executives to the stage as part of its conference program. Keynote speakers include Daisy Ho, chairman, and executive director, SJM Holdings, Paulo Martins Chan, Director of the Gaming Inspection and Coordination Bureau, Zane Moi, Deputy General Manager, Head of Partner Ecosystems, Amazon Web Services, and Nadine Grinblat, CEO of the Australasian Gaming Council.

“Our twelve-year success in Macau demonstrates the extent to which ambitious businesses in the world of global gaming and entertainment trust G2E Asia to help them connect to new opportunities, explore fresh innovations, and conduct peer-to-peer exchange. The show continues to evolve, according to the changing rhythms of the industry, which is why it remains so relevant, and why the gaming and entertainment industry, throughout Asia, trusts G2E Asia as the right exhibition platform via which to drive business forward,” said Josephine Lee.

THE MARKETPLACE FOR THE ASIAN ENTERTAINMENT INDUSTRY

45

亞洲娛樂業的

年度盛會

Market Trends. Quality Products. Networking. 市場趨勢、優質產品、建立聯繫 G2E Asia: Informs smart business decisions. 亞洲國際娛樂展：助您作出明智的商業决策

2019年5月21-23日 THE VENETIAN MACAO | 澳門威尼斯人 A G2 EEVENT

www.G2EAsia.com

PRESENTED Y

ORGANIZEDBY

Asia Gaming Briefings | May 2019

SPON

SUPPLIER SPECIAL REPORT 46 ABBIATI

Continuing R&D

A

bbiati Casino Equipment are continuing their R&D efforts, through the development of new products with enhanced technology, designs, and materials.

The company has confirmed their presence at G2E Asia 2019, with a nearly doubling of their exhibition area.

Featured at the stand this year is their new Asian Style Baccarat table with brand-new RFID technology “PJM Perfect Pay” realized in partnership with Walker Digital Table Systems.

The table is manufactured with refined materials with prestigious finishing along with the modern details such as USB chargers and Wi-Fi charging. The layout is laid with a prestigious microfiber cloth and includes the new Perfect Pair game by WDTS. At stand A519, visitors will have the opportunity to see the new Sic-Bo table, the first time shown in the Asia market.

A new Black Jack table will also be presented: it features an elegant lighting system on table bases and will present the new game Side-Bonus Baccarat by Mr. Stephen Au-Yeung and the new Mini Punto Banco Winning Number game by Mr. Diodato, the Italian game inventor.

“Casinos are incrementing their needs of security, especially tracking of casino currency. Our chips and plaques are featured by innovative security features, which make our products extremely competitive in the market,” added Mr. Giovanni Abbiati, president and founder of the company.

Abbiati will present their brand-new Value Tie chips range: the patented line is featured by currency with holoprismatic effect in the decal that reinforces the security of casino Value Chip.

All casino currency provided by Abbiati

are characterized by security features, as the last technology of 13.56 MHz PJM 3.0 RFID technology. Other technology features include security holograms, 3-in-1 UV sensitive colors, security features such as Laser Tracer technology, and Optical Variable Inks, just to name a few.

Visitors will be impressed with the new models of Abbiati roulette wheels. A new GLI-25 certified American Roulette Laser Wheels Roulette Wheel with an upgraded patented invisible laser technology (Class 1A). The new wheel is named K-Wheel and it has a new ball track profile that enables roulette wheels to achieve higher level of performance with increased security. It is part of an innovative lighting system, which also involves Winning Number Displays and table base lighting to increase security and game control.

A second brand new roulette wheel has 18 double numbers for the new game called Roulette-18 designed by the game inventor Stephen Au-Yeung.

All Abbiati tables and wheels are come with a wide range of high-quality multimedia displays that connect directly to Abbiati’s wheels and tables facilitating the control of all the game steps in real time and produce game performance data useful for the casino management.

“Asian operators are well aware of the new trends of the market and look for products that can ensure security and distinction to their own casino. Abbiati ongoing R&D maintains casino equipment that stand out in the market and anticipating their client needs,” added Mr. Giorgio Abbiati.

G2E Asia visitors are welcome to visit Abbiati’s stands A519 & A525, where they will find all the information about Abbiati products.

and 3 levels of Bonus levels. Launching with four entertaining titles, Desert Sun, Bullion Dollars, Cash Voyage and Wild Nights, Crazy Jackpots will surely attract a diverse range of players.

Operators will be able to experience new Multi-game offerings -Mega Choice Classics and Mega Choice Fortunes. Mega Choice breaks from the norm offering numerous configuration options for the operator while maintaining the successful

math that entertains players of all levels.

Following the U.S. success of the Quick Spin games, tradeshow attendees will get their first look at two of the latest Quick Spin games. Elsewhere in Ainsworth’s space will be other A640 titles including: Triple Challenge, which offers a unique Sic Bo Bonus.

Ainsworth invites attendees to learn more about their solid line-up of exciting themes.

Be sure to visit Ainsworth at booth #1304.

Ainsworth

Crazy Jackpots

A

insworth has announced that it will exhibit an array of brand-new games and game mixes, designed for the Asian market at the upcoming G2E Asia Expo.

At G2E Asia, product highlights on the EVO - the newest dual screen cabinet include: Golden Link, Crazy Jackpots, Loaded with Loot and Flying Wilds.

Crazy Jackpots is a Multi-Denom Link Progressive that incorporates a 1 level Link Progressive, 1 level Standalone Progressive

Asia Gaming Briefings | May 2019

SUPPLIER SPECIAL REPORT 47

REWARD YOUR PLAYERS WHERE THEY ARE! Extend the reach of your players club program beyond your casino operation, expanding your brand exposure and increasing player engagement with Power Loyalty.

Through the use of advanced cloud-based technology, Power Loyalty allows players to earn and redeem their loyalty points at retail and F&B locations regardless of the location (within and outside of the property), giving players the freedom to use their loyalty points where and how they want.

Visit SGgaming.com for more information.

The look and feel of the game(s) described and/or displayed herein and the individual components and displays of such game(s) are trade dress of Scientific Games Corp.and its Subsidiaries. Š 2019 Scientific Games Corp. and its Subsidiaries.All rights reserved.

Asia Gaming Briefings | May 2019

SUPPLIER SPECIAL REPORT 48 Alfastreet

Alfastreet is ready to impress at G2E Asia

A

sia has a special place with Alfastreet as we have been warmly accepted and appreciated by the players and the operators alike.

2019 is a special year as we made some impressive and groundbreaking installations across the territory. It is also companies 25th anniversary this year.

These are only a couple of reasons why we’re very excited and motivated to present ourselves at the G2E in Macau.

As always, we will bring our most successful and most suitable product line for this market. We will bring our stadium gaming in the form of live and automated games connected to our various single terminals. In addition, we will also present our remote gaming software, our VIP chair, Lucky 8 roulette, and lots more.

We are thankful and proud of all the all that we achieved here in Asia and we will warmly welcome all the visitors to our booth no.: A229

ARUZE

Super Big Wheel

A

ruze Gaming is showcasing their expanded lineup of Muso cabinets along with the new Lucky Roulette and Super Big Wheel at G2E Asia 2019.

The award-winning Muso Triple-27 is a unique video slot cabinet that creates a stunning light display with its LED backlighting that gives a 360-degree presence on the casino floor.

LED lighting continues behind the monitors

Asia Gaming Briefings | May 2019

and the edges along the three stacked 27-inch monitors. Thoughtful design continues along the Muso’s large glass-table button deck with a 13.3-inch LCD touchscreen interface, keeping player comfort in mind as well as innovation.

Industry-leading innovations extend on the Muso Curve-43, a vertical video slot with a 43-inch J-style curved LCD monitor.

Muso Curve-43 and Triple-27 both

utilize a first in the industry Qi wireless phone charger.

The new Legend City is Aruze’s first true high-denomination game series. High limit players will appreciate the dedicated 5-line option, and penny players will enjoy the excitement of 50 lines. Multi-denominations make for seamless transitions for all types of players. Highlighting four different math models, all four Legend City titles contain an exciting Jackpot Surprise and a Bonus Wheel Feature!

Aruze continues developing ETG products with highly interactive features. The new Super Big Wheel has a handle pull to set the Big Wheel in motion. Now with 54 segments, players enjoy the simplicity of this eye-catching large big wheel. Players have the option to up the ante by playing an exciting side game where bets can be placed on colored areas of the wheel. Lucky Roulette is an immersive new roulette game that features an automated wheel with dynamic projection imaging. This unique roulette game offers a three-dimensional visual experience that combines the appeal of a traditional physical roulette wheel and ball with interactive graphics sure to heighten anticipation and enjoyment.

Find out more about the new Lucky Roulette and Super Big Wheel at stand 1029 at G2E Asia.

SUPPLIER SPECIAL REPORT 49 ARistocrat

Bold new products

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ristocrat’s commitment to the Asian gaming market takes center stage on the company’s stand 629 at G2E Asia.

“Every single game is the culmination of our entire company driving the innovations of tomorrow. From inside-out, Aristocrat is dedicated to evolving our ever-expanding portfolio, challenging the status quo, driving innovation, and delivering the best gaming experience possible for our customers and their players,” said Chris Rowe, managing director, Asia-Pacific.

Attendees exploring Aristocrat’s stand will discover a perfect balance of legendary brands and on-trend products.

“From traditional and bold styles of link play in Gold Stacks 88 and Ba Bao Huang Long for Macau, to product diversity and Hold & Spin embraced by players in the Philippines in Spin It Grand and Mighty Cash Xtra Reel, to strong core product in South East Asia with products like Hit It Hot and 9 Princes of Dragon King, Aristocrat has created a portfolio that empowers our customers to speak to each of their players,” said Chris Rowe.

Aristocrat’s G2E Asia stand is divided into four sections, each sharply focused on customer-driven solutions. Those areas are Linked Products, Standalone Games, High Limit and Aristocrat Special Products.

The Links area of Aristocrat’s stand is filled with new mechanics and options that cater to diverse player segments. Aristocrat will debut a new addition to their Link portfolio – Ba Bao Huang Long, based on the legend of ‘Koi jumps over the Dragon Gate’. Positioned as the spiritual successor to the popular Good Fortune family, Ba Bao features instant win cash-on-reels, strong game personality, and hallmark Asian mechanics, modernized with Choose Your Volatility and Pick’Em Jackpot features evolved. Also featured in the Links area is the new family, Welcome Fantastic Jackpots which combines Asia’s two best mechanics Aristocrat’s world-famous Hold & Spin and Choose Your Volatility features. Also on show from the creators of Mighty Cash comes the hot new link family with multiplied jackpots and amplified Free Games, Fu Fu Fu. Aristocrat’s Standalone section features a range of entertaining Standalone product coupled with mystery links to suit Mass players.

Originating from the infamous Good Fortune Link, Dragon of the Eastern Ocean and Lucky Festival are now available in a Standalone

version with more exciting Gold Reel wins.

Other new additions include the all-new 5 Kings Gold, the sequel to the Korean themed title, 5 Kings, based on the legendary 5 Dragons Gold model. The High Limit Area showcases the heights of possible configurations within Premium Mass and VIP areas through select games. Products include Fa Fa Long, Hit It Hot, and 9 Princes of Dragon King, each with its own unique characteristics, mechanics, and features to entertain high-limit players.

9 Princes of The Dragon King echoes classic Aristocrat product design and Super Feature style play combined with modern execution and Hit It Hot Jackpots features fan favorites 5 Dragons under must-hit-by Standalone Progressives.

In the Special Products area, Aristocrat will

showcase the success of its novel hardware such as the ARC Double and ARC Single cabinets – products that create unique destinations for players on the casino floor. Products in this area include 5 Dragons Grand on the ARC Double and the all-new 5 Dragons Gold Max on the ARC Single. 5 Dragons Gold Max re-invents the player favorite Gold experience with additional features through increased qualifying bets.

Players can play from four payback levels and each level provides a more exciting gameplay experience. “We look forward to carrying this momentum forward further in the coming months and invite you to celebrate the unveiling of a number of key Linked progressives and other products on display at the G2E Asia this year,” said Chris Rowe.

Join Aristocrat on stand 629 at G2E Asia.

Asia Gaming Briefings | May 2019

SUPPLIER SPECIAL REPORT 50 BETCONSTRUCT

Fantasy eSports in focus

B

etC onstruct will demonstrate its market-leading solutions at G2E Asia this year, including Fantasy Sports with five game types, as well as Fantasy Cricket, and eSports, covering unique streamings for more than 10 championships at both rush and quiet hours.

Along with BetConstruct’s high-demand products, this year the company will uncover

Asia Gaming Briefings | May 2019

an innovative Fantasy eSports solution for the first time. Fantasy eSports is a powerful product developed by BetConstruct that includes two of the most popular games LoL and CS:GO. League of Legends has more than 100,000,000 players per month and CS:GO has over 500,000 players daily.

This incredible traffic will enable operators to boost player engagement even further.

Fantasy eSports will ensure all the major leagues and live updates for both of the games. LoL comes with 12 major leagues and CS:GO comes up with 10.

With this innovative offer operators can target eSport lovers and bring superb gaming experience to players allowing them to build their own fantasy teams.

Join Betconstruct at stand D1305.

SUPPLIER SPECIAL REPORT 51

APE

APE bets on innovation, new markets, to fuel growth Just over 18 months after listing on the Hong Kong Stock Exchange, Macau gaming machine distributor Asia Pioneer Entertainment (APE), is marking new milestones, with expansion into the fast-growing markets of Southeast Asia.

L

ast December, the company reached an accord with Glimex Philippines on a five-year machine rental agreement for APE’s ETG and EGM products from Konami and Spintec. In just three months, the two companies worked together to import 7.6 percent of the agreed products into one of the fastest-growing markets in Asia.

It has also reached a five-year financial leasing agreement with Siam Star Leisure in Cambodia, also for Konami and Spintec’s ETG and EGM products, with the two transactions bringing APE more than HK$30 million ($3.8 million) in revenue in 2018.

Although analysts remain optimistic that Macau will retain its crown as Asia’s premier gambling hub, growth is slowing in tandem with a deceleration in Mainland China’s economy.

Most of the new developments on Cotai are now open, with the only major debut in the pipeline that of SJM Holding’s Grand Lisboa Palace later this year.

Elsewhere, development is continuing at a strong pace, with new resorts opening across the region. According to a report by Research and Markets, the gambling market in Asia Pacific is likely to record compound annual average growth of 7.31 percent each year through to 2021.

“Chinese tourism is expected to grow with progress on the Belt and Road Initiative that will improve accessibility to various parts of Southeast Asia,” APE CEO and Executive Director Herman Ng said. “We see a bright future for the casino industry and this is especially visible in Asian countries.”

“The APE team continues to work in a pioneering spirit with operators in Cambodia and Vietnam,” he said, adding the company is collaborating to introduce electronic table games (ETGs) into casinos in areas such as Poipet in Cambodia, as well as dealing with some of the major resorts in Vietnam.

APE has three main business lines. About 60 percent of its revenue comes from the sale and

distribution of electronic gaming equipment, which generated HK$65.6 million last year.

However, sales from consultancy and technical services are growing fast, with revenue gaining 26 percent, while sales from repairing and refurbishing equipment rose 15 percent.

“It reflects that there is a huge and increasing demand of consultancy and technical services and repairing services in the Macau gaming industry,” Ng said. “For companies that would like to enter the Macau and Asian markets, we are able to help with getting their products approved and provide professional consultancy service because we have localized experience, strong relationships and know the latest updates.”

Local knowledge is an invaluable asset in navigating Asian markets, especially the notoriously laborious regulatory process needed to get products into Macau.

As well as expanding geographically, APE and its key partners are striving to promote innovation to bring a different level of excitement to the casino floor. For example, it recently introduced Konami Holding’s arcade-style horse racing game “Fortune Cup” into two casinos in Macau. It is an electronic table game and the only one of its kind in the territory.

Konami is also introducing its Link Progressive and SAP games, which magnify the jackpot excitement. In addition, Bao Ni Fa from Jumbo Technology is a brand-new progressive linked jackpot, which contains three progressive levels as well as a Standalone Jackpot.

Moreover, the new virtual Blackjack from Spintec includes five additional side bets, creating more fun for players than traditional card games. Leading printer manufacturer Transact Technologies has also introduced their new Epic Edge TITO printer, offering 300 DPI print resolution, which is delivering a two-fold improvement over current printers.

All these innovative products above will be shown at G2E Asia 2019 and have already, or will soon be released in Macau.

APE’s listing on the Growth Enterprise Market was a game changer for the company, allowing it to inject more capital into the business and fuelling its expansion. In 2018, overall revenue gained 27 percent, while profit skyrocketed 350 percent.

“It was a very positive year for the company, and we are confident in maintaining the company’s steady growth in the future and maximizing returns for investors,” Ng said.

Asia Gaming Briefings | May 2019

SUPPLIER SPECIAL REPORT 52 BBIN

BBIN takes the next “leap”

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ounded in 1999, BBIN has dedicated itself to innovation and the development of new technologies and systems. To celebrate the brand’s 20th anniversary in 2019, BBIN has developed the theme of “leap” to present its history and future goals.

BBIN provides its professional platform integration services throughout East Asia and Southeast Asia, including China, Japan, South Korea, Vietnam, Thailand, Indonesia, Malaysia, the Philippines and more. BBIN’s product diversity has always ranked top in Asia and been recognized through numerous international awards and nominations in recent years. In terms of product research and development, BBIN has specialized in both differentiation and localization, to integrate local cultures, festivals and timely events into game design.

The company has so far successfully provided the market with 14 types of Live

Casino, 40 lottery games, over 100 casino games and more than 50,000 sports betting products per month. The company also proactively collaborates with European and Asian international brands, including international gaming brands such as Microgaming, Playtech, HABANERO, iSoftBet, Pragmatic Play, Evolution Gaming, and BetConstruct. Through partnerships with other brands in the industry, BBIN keeps expanding its market territory and opening up new business opportunities.

Moreover, BBIN has recently been active in participating in international events. Apart from participating in iGaming exhibitions all around the world, we have sponsored various world-renowned matches and competitions, including Formula racing and football games.

BBIN also throws the spotlight on charity organizations and supports them by planning charitable projects. We have always engaged in various international projects to provide a wider and more diversified viewpoint to the industry.

able to have a discussion with our Asian partners before the exhibition to find out all about the special needs and requirements of betting operators in Asia. We’re well prepared and hope that visitors to our stand will be pleasantly surprised by what we have to offer them,” said Betinvest’s VP of Business Development, Valentyn Kyrylenko.

“We’ll be presenting our new iFrame solution which offers unique opportunities to integrate and manage traditional Sportsbook and/or eSports betting. Our iFrame solution will be an essential tool for operators in any region. As for special features for the Asian

market, we’ve made some changes in the backend according to the market’s needs and developed a corresponding frontend.

I hope they’ll like it!” Kyrylenko added.

Between May 21 and 23 at The Venetian Macao, the Betinvest team will showcase – and provide every visitor with an opportunity to try out for themselves – all of the company’s products and services. The core Betinvest products are Sportsbook and Data Feed, but the company also offers simple yet profitable in-house solutions such as Lottery, Keno and Roulette.

Betinvest will be exhibiting at stand D1229.

BETINVEST

New iFrame product

B

etinvest is set to take part in one of the gaming business’s leading international events, G2E Asia.

At stand D1229, the company will present its well-established sports betting products as well as its very latest solutions, such as iFrame Sportsbook. The Betinvest team have also announced that visitors will have the opportunity to get a €5,000 certificate which can be used towards the cost of any Betinvest product.

“We are delighted to be returning to G2E Asia this year, both to network and to present our new special offers. We were

Asia Gaming Briefings | May 2019

REALISTIC VIRTUAL SPORTS

SUPPLIER SPECIAL REPORT

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Contact us at sales@betradar.com Asia Gaming Briefings | May 2019

53

SUPPLIER SPECIAL REPORT 54 BETRADAR

Focus on emerging markets

S

portradar will once again be in attendance at this year’s G2E Asia in what has been a compelling 12 months for the industry.

With the legalization of the US betting market, Sportradar will continue to focus its efforts on emerging markets across the world, including Asia, which has been tipped by some to be just as opportune.

Onsite at G2E, the company is looking forward to discussions with event attendees, sharing knowledge on how the US market continues to have repercussions on sports gaming worldwide. This will include key learnings from the States that have enacted betting regulations so far and, from this, the company can offer tips and tricks for bookmakers focused on the emerging Asian market.

Its signature solution, Managed Trading Services (MTS), which provides risk and liability management and user profiling on behalf of the operator, has been picking up at a rapid pace recently in Asia, with more and more interest coming from both existing and new operators. MTS is one of the most

popular solutions in established markets due to its ability to help bookmakers of all sizes establish and operate a successful sports book.

This will be further explored at G2E Asia, as well as a new marketing and sponsorship solution, ad:s. A key part of their 360 degree betting portfolio, ad:s can enable Asian-facing operators to tap into various above and belowthe-line marketing opportunities, both within the region and globally. Ultimately, it provides the tools for operators to develop a recognized brand, reputation and trust.

Sportradar’s Gaming Solutions continue to grow in popularity in Asia too. The launch of the Asian Cup Virtual Football solution last year, for example, generated incremental revenues for client operators. This year, they are set to again add to our rich suite of Virtual Sports Betting offerings, and will launch Virtual Baseball and Virtual Cricket, two popular sports in Asia that continue to show increasing demand.

In other more traditional areas of their live odds and live data service, the company will

increase their regional scout network, extending sports coverage even further across baseball, basketball and football, as well as kabaddi, sepak takraw and field hockey respectively.

system, and dedicated customer support 24/7, provides everything needed for fast market entry for clients looking to enable and leverage their brand online or mobile.

The sportsbook product covers 30,000 live events each month, across 65 sports taking in 7,500 leagues, and more than 3,000 betting

markets, with features that include cash out, edit my bet, express bonus and the latest promotional tools for player marketing acquisition, VIP management and retention needed in today’s fast moving markets. The casino solution has 3,000+ games from major digital casino content providers; NetEnt, Microgaming, and Playson.

DIGITAIN

Sportsbook API solutions

D

igitain, the multi-channel sports betting platform provider will be showcasing its sportsbook API solutions at G2E Asia.

Sports’ betting is the biggest revenue generator. Visitors are encouraged to connect with advisors from Digitain and discuss how Digitain can assist your technology, business and go-to-market strategies in order to position your brand and business in the Asian sports betting market.

Digitain’s Sports Betting and Gaming Platform provide a comprehensive multi-lingual, multi-currency customizable interface that can integrate using API’s with an existing platform, or online operator.

It can provide a frictionless turnkey or white-label solution with Bespoke API’s allowing integration of sportsbook, casino, live dealer, and virtual sports modules where regulations permit. The API also the ability to customize the front-end user journey and user experience and allows the clients brand to be agile and flexible, and in control of the product roadmap to adapt to fast-changing market and regulatory conditions.

With an extensive payment gateway, bonus engine, customer relationship management

Asia Gaming Briefings | May 2019

SUPPLIER SPECIAL REPORT 55

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Asia Gaming Briefings | May 2019

SUPPLIER SPECIAL REPORT 56 EVERI

Flexible financial solutions

A

proven market leader in the gaming space, Everi remains deeply committed to understanding its casino partners’ needs in this rapidly evolving industry and continues to make significant investments to address these needs. These investments are aimed at making further enhancements to Everi’s leading financial technology solutions to help operators increase performance and efficiency at their properties.

Everi FinTech’s focus is on providing intuitive, flexible financial technology solutions that enable operators to maximize funds to their floor while providing a premium experience for their guests. The company will highlight their self-service kiosks and cash handling solutions at G2E Asia including the fully integrated CXC 5.0L kiosk, the efficient jackpot processing JackpotXchange Lite kiosk, and the CageXchange cash dispenser.

Everi is proud to showcase its promotional and enrollment kiosks powered by Atrient, demonstrating how these kiosks combined with its self-service solutions can enhance player loyalty and drive more funds to the floor. A number of demo stations will be available for operators to experience Everi’s level of innovation first hand including CashClub Concierge, a personalized cash access cage service for VIPs as well as table game and high-limit room players that integrates mobile tablets and mobile pointof-sale devices through Everi’s CashClub software. The solution eliminates the need for a player to leave their gaming position to access additional funds by bringing the cage to the player.

The indust r y-le ading rep ositor y CentralCredit will also be featured at G2E Asia which enables operators to quickly and efficiently make informed, proactive decisions for extending casino credit to guests. Similar to other solutions in Everi’s Intelligence toolkit, CentralCredit has helped operators grow market share and increase patron loyalty while increasing operational efficiencies.

Everi’s products will be on full display at stand 1225.

GLI

Celebrating 30 years of testing and certification

C

oinciding with its 30th anniversary, Gaming Laboratories International (GLI) will highlight three decades of leadership providing the expanding Asia-Pacific (APAC) gaming market with the world’s foremost land-based testing, certification, and professional services.

“GLI began 30 years ago by testing and certifying land-based devices and systems for the lottery and gaming industries. We are excited to share these three decades of unmatched expertise in land-based testing, certification, professional consultancy, and thought-leadership with attendees at this year’s G2E Asia,” said Ian Hughes, GLI’s Chief Executive Officer, APAC. “We invite attendees to stop by our booth, meet our highly experienced team of Asian gaming experts, and discover how GLI’s superior, locally focused capabilities and global land-based solutions can help ensure success.”

GLI’s team of locally focused Asian experts will be available to help attendees achieve

Asia Gaming Briefings | May 2019

success by providing valuable insights about emerging trends, technologies, challenges, and opportunities in the rapidly evolving APAC land-based gaming market.

GLI will also show how both mature and emerging Asian land-based gaming markets can benefit from its expanding portfolio of locally focused global land-based testing, certification, and professional products.

Attendees will learn about the many benefits of GLI’s exclusive Gaming Labs Certified mark.

GLI is the only private, independent lab whose certifications are accepted worldwide. Products that bear the highly-coveted Gaming Labs Certified designation proudly stand out as having passed the most thorough and rigorous testing in the industry. The Gaming Labs Certified mark is the ultimate symbol of quality accepted by gaming jurisdictions throughout the world.

As cybercriminals throughout Asia and the world become bolder and more sophisticated,

the Asian gaming industry is seeking the best ways to thwart the next cyber attack. Bulletproof, A GLI Company will present an arsenal of advanced and affordable IT and cybersecurity solutions to help the industry respond to this ever-increasing threat.

Meet GLI at booth #904.

SUPPLIER SPECIAL REPORT 57

Asia Gaming Briefings | May 2019

SUPPLIER SPECIAL REPORT 58 HABANERO

Modern twist on classic formulas

B

oasting an ever-growing portfolio of more than 120 HTML titles, Habanero is quickly becoming one of the must-have suppliers for operators around the world.

Focusing on the creation of quality slots and table games that are both entertaining and immersive, a wealth of experience and talent is highlighted within all of its games, including latest release Magic Oak, which challenges players to add a little sparkle to their lives.

Unlike traditional slots, wins are paid when the same icon appears in blocks rather than lines, with wins paid when they meet horizontally and are vertically adjacent.

This modern twist on a classic formula is just one way Habanero keeps ahead of the latest trends and technologies.

This approach to gamification also features in Mount Mazuma which starts as a normal 5x3 title, with palm trees on row one and five as blocker symbols. Randomly however, blockers become unblocked, combining with up to 32x multipliers for more prize eruptions.

Habanero’s titles all feature the latest in high-end graphics and sounds and are created with certain markets in mind as the supplier continues to enhance its global footprint.

Take 5 Lucky Lions, for example. Players are given the chance to pick one of five lucky lions

in the bonus round, all of which offer a different number of free spins. The lions operate as multiappearance wilds, as they seek to unearth good luck and fortune.

This use of vibrant colours also features in Hot Hot Fruit, a throwback to the early age

of slots, when games were simpler, but with a modern Habanero-style twist.

Habanero is constantly making quality additions to its portfolio and players and operators alike should look out for upcoming releases Lucky Lucky and Wild Trucks.

drop their dollars.

Although there is still a charm to traditional table games, demand for ETG seats has been increasing since its debut in 2000.

The market still had yet to realize its full potential, however, until the arrival of X Stadium in 2017.

Operators that engage with idNerd’s flagship X Stadium product have the capacity to customize and tailor their ETG Stadium Game to meet any number of needs, whether it includes one or more of the following: branding, marketing, seasonal promotions, or - perhaps above all - increasing the Stadium Game ROI. X Stadium’s latest installment at the LT Games ETG Stadium installation at Sands Macau Casino (April 2019) joins idNerd’s repertoire of successful installations at the MGM Cotai Macau, City of Dreams Macau, Savan Resort Laos, and Venetian Macau.

Future plans for installations across the

Asia Pacific are imminent and idNerd Studio is happy to accommodate projects, big or small.

Peter Wong, Founder and Managing Director at idNerd Studios, says, “The X Stadium advanced animations display system seamlessly complements any ETG seat, allowing us to bring Stadium Games into their true revenue-generating potential.

We’ve installed the system in landmark casino establishments and it’s extremely user-friendly.

It is a true pleasure to see how every customer reacts to the eye-catching content and how it improves the overall ETG gaming experience.”

“Particularly younger demographics who are now frequenting Macau or casinos across the Asia Pacific are more invested in having a good time. How does a casino floor give the visitor that second-to-none experience? Stadium Games are revolutionizing what a casino experience can be, and idNerd is providing the most important face-to-face aspect of it: high-quality content that gets users in the seat and playing.”

idnerd

X Stadium

X

Stadium’s revolutionary system by idNerd Studio brings customers back on the casino floor to engage in a way that traditional display systems simply cannot.

X Stadium makes the casino & gaming experience look and feel more gratifying than ever before, bringing customers into the seat unintimidated, excited and ready to

Asia Gaming Briefings | May 2019

INTRODUCING

SUPPLIER SPECIAL REPORT 59

Celebrating Dualos’ success, Scientific Games is proud to take this player popular cabinet to the next level with the release of the Dualos™X. Giving players more reasons to love our games, DualosX features bigger screens, bigger processing capabilities and bigger floor presence.

CONTACT YOUR SG GAMING SALES REPRESENTATIVE NOW MACAU OFFICE Phone: +853 2872 2539 www.sggaming.com/asia

Asia Gaming Briefings | May 2019

SUPPLIER SPECIAL REPORT 60 IGT

Localized innovations

A

t G2E Asia IGT will present a range of gaming solutions that reflect the Company’s commitment to localized innovations, and an improving position in Asia.

Approximately 90 percent of the slot games that IGT will showcase will be marketapproved games.

Linked multi-level progressive (MLP) themes for Asia will be a cornerstone of IGT’s portfolio, and G2E Asia will be the world debut of IGT’s Rising Riches MLP on the CrystalCurve cabinet. The entertaining game is inspired by other successful IGT MLPs for Asia, includes IGT’s “waterfall” gameplay and gives players the option to select their bonus play volatility.

Other standout games within IGT’s G2E Asia stand will include Golden Palace and Treasure Fury, the third title in the Fury family of games.

A key part of IGT’s revitalized portfolio is a strong line-up of standalone games for Asia.

Marquee title Star Stax on the CrystalCurve cabinet will be a focal point, along with the Fortune Coin game. Both titles perform well in other gaming markets globally and have been adapted to meet market demands for Asia.

The company will showcase proven video core games such as Scarab, Temple of Fire and Mistress of Egypt on the CrystalDual 27 cabinet. Scarab is a top-performing game in markets around the world, and captivates players with engaging persistence mechanics that re-start every ten wagers. Cash Cove

Deluxe and Cash Cove Monster Catch are additional must-play games from IGT. Both games build on the legacy of Singapore market favorite, Cash Cove.

IGT’s leading Casino Management System (CMS) ADVANTAGE will be the anchor of the company’s systems line-up at G2E Asia. IGT will demonstrate how ADVANTAGE-compatible mobile innovations such as Cardless Connect and Resort Wallet help operators modernize their player experience and run more efficient operations, and why it is the preferred CMS of many of Asia’s largest properties. IGT is also proud to have M5 as part of its systems portfolio. This innovative technology utilizes HTML5 to deliver personalized, real-time promotions and bonuses to the player through IGT’s Service Window (or a TFT display), allowing operators to actively engage with players through compelling and dynamic interaction.

IGT will also reinforce its position as an end-to-end solutions provider. G2E Asia attendees will have the opportunity to play Chill Gaming’s innovative games Bloomtopia and Fortunes of the Brave. The games reward players with monetary and non-monetary rewards and offer unique experiences designed to appeal to a broad range of players.

Additionally, the Company will showcase its IGT Dynasty RNG electronic table game solutions – including new content and side bets for roulette, baccarat, and blackjack.

IPC

Cloud service demand grows

I

PC provides a full suite of IT infrastructure services, from state-of-the-art data center facilities to locally-hosted infrastructure-as-aservice, as well as connectivity, cybersecurity and CDN. IPC owns and operates three world-class data centers in Metro Manila, Philippines. All are true telco-grade, carrier-neutral, international internet data center facilities that provide collocation services, data and network security, disaster recovery, and a host of other managed services and customized solutions. It has been IPC’s core competency for over a decade.

I​IPC operates the country’s first purposebuilt data center that houses the country’s first locally-hosted cloud infrastructure, IPC CloudServers powered by CloudSigma.

IaaS (infrastructure-as-a-service) has seen

Asia Gaming Briefings | May 2019

increasing adoption in the country and the demand for cloud services that promote data sovereignty and the best latency is ever-growing.

Because IPC is a cloud provider that operates its own data centers, the company is able to provide end-to-end hybrid cloud setups for customers that require this. Customers are able to utilize cloud resources combined with hosted physical infrastructure, to run and maintain specific systems. This way, the flexibility of the cloud and the resiliency of the data center are at their fingertips.

Being truly carrier-neutral, IPC is peered and partnered with all domestic and major regional telecommunications carriers, making GIA a robust and resilient communications service.

Through IPC’s multi-gigabit international network capacity, Philippine-based customers

are a few hops away from global markets, and foreign clients are likewise able to extend their services to the bustling Philippine market.

IPC is the Philippines’ first DDoS Mitigation service provider, having partnered with global leaders in cyber security for over a decade. True to form, IPC also provides the country’s first local Content Delivery Network (CDN) service, distributing web content from the Philippines to multiple points across the globe.

SUPPLIER SPECIAL REPORT 61 scientific games

Innovations and Asian market content

S

cientific Games will showcase the gaming industry’s most innovative products, content and technology G2E Asia, including new and innovative slot game content and platforms, proprietary table games and utilities, electronic table systems, casino management systems solutions and its new digital and global leading sports betting products.

“Scientific Games is consistently looking to improve and innovate, and to deliver products that will help grow, develop and improve our customers’ gaming business. This year at G2E Asia you will see how we continue to create the most dynamic games that delight our players,” Barry Cottle, Scientific Games President and CEO, said.

From its slot game hardware and game content portfolio, Scientific Games launches its newest gaming cabinet, DUALOS X, with two player-favorite titles: Duo Fu Duo Cai 5 Treasures and Diamond Eternity.

This new cabinet has the signature 27–27–27 look: 27” high definition LCD topper, main monitor and top box for higher luminance, CPU4x processor and runs on Scientific Games’ new ArgOS platform to deliver a more engaging gameplay experience.

Together with DUALOS X, Scientific Games will also highlight seven new games for the Asian market in the DUALOS CABINET ON SL-V PLATFORM with engaging new mechanics and features: • Jin Ji Bao Xi and Jin Ji Bao Xi Gold Prancing Pigs – the third linked progressive game in the series • Jin Ji Bao Xi VIP Echo Fortunes and Endless Treasure - standalone progressives • THE PINK PANTHER Riches of Ra – the third linked progressive game in the series • Rolling 777 – a new standalone progressive game • Cash Connection Sweet Tweet – a new standalone progressive game As the leading supplier of casino management systems for the Asian market, Scientific Games will highlight the industry’s broadest end-to-end suite of solutions, presenting key new offerings: The Bet by Bet System is a powerful new tool that tracks all the individual bets wagered at the baccarat games. Designed for the VIP table games market, it provides a fluid solution for VIP hosts to easily track each bet in a mobile application that feeds baccarat results directly from table devices, leveraging the

power of the Shufflink and TableView table management systems.

TableView is an innovative table management solution that allows casinos to replace their existing manual rating process with the ease and simplicity of electronic automation.

Shufflink Shufflink creates a network and user interface that collects real time data from utility products, including shufflers, chippers, and related table peripherals for table performance analysis and player ratings.

The iVIEW 4 web-based content management solution allows for drag-and-drop content design within an exclusive web interface to create new iVIEW content and publish it to the casino floor.

With analytics, rules, and scheduling features, the iVIEW 4 empowers a new level of player engagement for casino marketers.

From the company’s proprietary table games portfolio, highlights this year will include 5 Treasures Baccarat, EZ Baccarat, Face Up Pai Gow Poker, Paris Poker, Blazing 7s Pontoon and Vegas Blackjack Fever. They are also all linked via the new GM Atlas jackpot system.

From its popular electronic table games portfolio, Scientific Games will display ETG

products designed to maximize casino floor performance and profitability.

Scientific Games will also showcase its industry-leading sports and casino technologies that bring partners to the next level. The company will highlight its comprehensive portfolio of platforms and services that enable customers to win in both established and burgeoning markets.

Scientific Games’ OpenSports product suite will be featured on the show floor, giving an in-depth look at the company’s player-centric sportsbook solution. Among the most reliable and scalable platforms on the market, OpenSports powers sportsbooks with end to end technology that includes trading, marketing and product management services, managed trading services, real-time data and pricing resources, and its Sportsbook Operations services. A comprehensive suite of sportsbook technology and services, OpenSports empowers partners to choose the elements that will drive their success. The modular offering sets partners on a long-term growth trajectory by giving them the technology they need to engage players and an innovative roadmap of features that fuels continuous improvement of the operator’s sportsbook.

Asia Gaming Briefings | May 2019

SUPPLIER SPECIAL REPORT 62 JADE

One-stop-shop for operators

J

ade has, since its inception, taken giant steps towards becoming a one-stop-shop for operators seeking to invest in their properties through the latest generation of products and services.

Jade is committed to working in close cooperation with its customers to maintain direct and effective two-way links with the international gaming industry and latest technologies. As the distributor for the world’s leading gaming brands such as Novomatic, Walker Digital, NRT, Sega Sammy, Jade is able to offer electronic gaming machines on a variety of sales models including, straight sales, leasing and revenue sharing (participation) basis.

Jade is continuing to grow its presence in the Asian region from its headquarters in the Philippines. It has been granted a license as a Casino Provider by the Commonwealth Casino Commission in Saipan, Commonwealth of the Northern Mariana Islands. The company, likewise, is an accredited supplier of gaming machines, systems, and other related equipment by the Macau Gaming Inspection and Coordination Bureau.

Jade has also established its presence

in Malaysia via its technology partner, Jade Technology Solutions Sdn. Bhd and is currently setting up sales and support offices in Vietnam.

Jade Sportsbet is now Live in Okada Resort in Manila and the plan is to expand Jade Sportsbet to retail locations within PAGCOR licensed properties. Currently offering betting on 21 Sports, over the next 6 months Jade will release its self vend

terminals, Virtual Sports and Exotic betting.

“We are living in a time of great change in our industry and technology will be the key driver for success, Jade has grown over the past 10 years from a machine distributor to a technology provider, over the next few years machine learning, intelligent sensors and 5G networks will be the key drivers in our business.”

Star Watch, Dragon Fury and China Shores Great Stacks, to name a few, that are all available on the Concerto Stack.

Konami’s tall Concerto Stack features a stunning 43-inch HD vertical display, with signature Concerto highlights such as the unique side lighting element and sleek black finish. These single-screen formats give players exclusive game content designed to optimize the machines’ extra-tall portrait orientation. Concerto and Concerto Stack both maintain a standard upright base

size for flexible configuration across the casino floor.

Another main highlight at Konami booth is the Fortune Cup mechanical horse racing game, bringing modern technology improvements to a high-demand gaming format enjoyed by generations. The game features a 9-foot wide mechanical track with eight horses that travel freely and independently across the course. The horses’ actions are mirrored by real-time digital animation on connected LCD screens in a sports broadcast format, and players place their bets through touchscreen stations with race stats, horse odds, mystery progressive jackpots, and comprehensive bet options for win, place, and quinella.

In addition, leading new systems highlights spanning everything from SYNKROS Offers Management to the SYNKROS Dashboards business intelligence suite will also be showcased.

KONAMI can be found at booth #A429.

KONAMI

Top games of the year

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his year at G2E Asia 2019, KONAMI will be exhibiting their top games of the year including proven performing stand alone progressive innovations and new link progressives games such as Ba Fang Jin Bao and Golden Block series.

They will be displaying a new range of Concerto game titles each with their own unique free game features that are also compatible with link progressives: Fortune Streams and Smash Smash Festival as well as exciting stand alone progressive series:

Asia Gaming Briefings | May 2019

SUPPLIER SPECIAL REPORT

™

63

HYBRID

Making its global debut, QUARTZ™ HYBRID running on Scientific Games’ exclusive operating system ArgOS, integrates with Live Dealers on Baccarat, Roulette & Sic Bo. HD graphics, updated content includes a new player interface and dealer display and multiple games views at any one time. Increased connectivity allows to connect to up to 50 individual gaming tables.

POWERED BY PATENT I/128 CONTACT YOUR SG GAMING SALES REPRESENTATIVE NOW MACAU OFFICE Phone: +853 2872 2539 www.sggaming.com/asia

Asia Gaming Briefings | May 2019

SUPPLIER SPECIAL REPORT 64 MATSUI

New gaming chip launch

M

atsui will be showcasing the latest additions to its gaming chip product line, including their new casino chip series, Oval Premier Decal Chips and also a very unique new chips design, which will be launched.

A demo of PJM RFID chips, licensed by its partner, Walker Digital Table Systems, will also be on display.

“We are thrilled to introduce these new gaming chips as well as our other core products such as highly durable heavy weight layouts to our customers.” said managing director of Matsui’s Macau subsidiary, Shigeki Machida. “At G2E Asia 2019, by way of the collaboration with WDTS, we will provide

the demo of our PJM RFID Chips with their Perfect Pay Baccarat table and their Perfect Counter. Operators are increasingly aware of the importance of casino chip security, we believe that the new development and our partnership with WDTS will surely provide even more choice and better security options to our customers.”

The Matsui Group is celebrating their 40th anniversary this year. Established in August 1980 in Tokyo, Japan, the company was started by founder, Takashi Matsui as a billiard table cloth supplier who served to local clients in Japan.

Now Matsui is one of the top few names

PALTRONICS

One link jackpot management system

F

or your existing floor or new venue choose Paltronics Macau for our latest product to manage your jackpots with or without a jackpot controller.

Our LED jackpot meter displays feature crisp, precise, text and graphics. The flexibility of our LED displays, no matter what shape or size, elevates and brightens any gaming floor.

With a high resolution, not only do you have stunning graphics but bright easy to read jackpot meters that can be seen across any crowded floor.

Lucky Tie is a house-funded jackpot for Baccarat where players have the chance of winning a progressive jackpot or fixed prize when placing a normal tie bet.

Visit Paltronics at booth #A919.

Asia Gaming Briefings | May 2019

in gaming chips and table equipment supply worldwide.

Their gaming chips under their own brand “Matsui Chips” has been supplied to more than 1,000 casinos in 100+ countries.

Their offices and subsidiaries are located worldwide, namely in Japan, Korea, Manchester, Las Vegas, Moscow and Macau with the head office in Tokyo.

“We are ver y excited to have this commemorative 40th anniversary year as a group company. Our team members are looking forward to meeting our friends and new clients at G2E Asia” said Machida.

Visit Matsui at stand #A1319 at the show.

SUPPLIER SPECIAL REPORT 65 SEGA SAMMY CREATION

SEGA themed video slots

S

EGA SAMMY CREATION will unveil its new video slot series based on themes from widely popular and internationally acclaimed SEGA video games. The Japanese gaming machine supplier presented initial concepts of the new line at the ASEAN Gaming Summit

held in Manila in March, and plans to showcase the new machines, along with their video slot lineup, for the first time at G2E Asia.

The video slot series expands the SEGA SAMMY CREATION gaming library into the vast EGM slots market, as the company

has already had successful installations of their ETG machines in highly competitive Macau casinos.

The SEGA IP series will kick off with two titles, and will expand to bring a wide variety of game themes and math models catering to all types of players. Fans of the original titles will be pleased to find game features fully utilized in the new slot games.

The mix of titles can fulfil multiple operator needs, such as bringing new players to the gaming floor and garnering the interest of younger generations, as well as catering to current players and broadening their list of favorite games.

“SEGA SAMMY at its heart is a game company. Our main focus is on the entertainment aspect, and this new lineup of titles represent our commitment to bringing new and innovative games to casino floors”, says Hisao Oguchi, president and CEO..

Masahiro Kurosaki, head of the Asia sales division notes, “we had great initial feedback on our product concepts, and cannot wait for the opportunity to showcase these games and much more at G2E Asia.”

SEGA SAMMY CREATION will be displaying their new SEGA IP series, along with other EGM and ETG machines at this year’s G2E Asia.

solid gaming

Hawaiian Dream captures Japanese imagination

S

olid Gaming delivers a game aggregator that distributes unique and exclusive content to the network of operators located in the Asian region. Their casino solution has been imagined to preserve a balanced selection of game providers that deliver unique content, interesting mechanics and niche products.

The company believes that is important to deliver a great gaming experience while preserving the traditional models of success that kept so many generations of players entertained. Hawaiian Dream represents a major success for Solid Gaming after witnessing an impressive response from Japanese players to become the company’s most popular top slot in Japan at the end of 2018.

Hawaiian Dream emerged from the collaboration between Golden Hero – an

exclusive Solid Gaming brand – and JTG who reimagined the highly popular Pachinko game. Exciting times as the brand is ready to unveil the second game spawned from this joint venture.

G2E Asia is the place to be for all industry professionals who would like to discover the latest trends, from the latest games to cutting edge platforms and remains the leading business hub for all those interested in forging new networking connections and finding the next best thing in Asia and beyond.

Solid Gaming representatives will be available for all business inquiries related to our original range of products while meeting friends, partners and clients who attend the premier gaming exhibition and conference dedicated to the Asian gaming market.

Asia Gaming Briefings | May 2019

SUPPLIER SPECIAL REPORT 66 SPINTEC

TANGAM

Aura multigame amphitheater

Table Games Yield Management

W

ith Asia becoming one of the fastest growing markets in terms of electronic table games, Spintec is uniquely positioned.

The company’s Karma Roulette now holds a majority share in all new automated roulette installations in Macao.

The company will be presenting its full range of products for this year’s edition of G2E Asia, with a focus on the multigame amphitheater.

“Our highlights at this year’s G2E Asia will be Aura multigame amphitheater, an ultimate gaming solution distinguished by its unparalleled comfort and designed for all the player’s needs. We guarantee longer gaming sessions and, consequently, higher revenues for the operators,” says Primoz Krsevan, Spintec’s regional sales manager.

Aura gaming terminals are ideal for amphitheater setups, combining

Asia Gaming Briefings | May 2019

live, automated and virtual games in one multigame experience. In addition, Spintec amphitheater gaming solutions are completely customizable, which means that the operator has virtually limitless options to choose between different setups.

Besides amphitheater gaming solutions, Karma, compact electronic table games are Spintec’s flagship on the Asian market.

“Spintec’s ETGs are installed in the most prominent casinos in Asia,” added Krsevan.

“In 2019 we planning to strengthen the position on the Asian market and boost market share,” Krsevan continued.

G2E Asia has always been a significant event for launching new products in Asia and this year won’t be an exception.

Be sure to stop by their stand at A1041 to discover Spintec’s novelties.

T

angam Systems, a global leader in table games optimization, is trusted by some of the largest casinos to maximize profit and improve patron experience for over 5,600 tables in 9 countries.

Tangam’s breakthrough software, TYM (Table games Yield Management), optimizes spread planning, game-mix, and dynamic management for table games. TYM is the only software of its kind and results in improved profitability, highly productive teams, and better patron experience.

It is game-changer for table games operators.

TYM is designed to provide actionable recommendations at all levels to provide the right game, at the right time, at the right price point, resulting in an enhanced patron experience, and with it, profits.

With Innovation at the heart of Tangam’s team, Tangam’s latest addition is TYM Floor Performance which makes complex table games data actionable to ordinary users, enabling managers run their businesses and drive performance improvements. It combines decades of table games operations expertise, software development, statistics, combinatorics and cutting-edge visualization technology into a simple and intuitive interface that offers unprecedented insights and actionable recommendations, in minutes.

TYM is backed by exceptional support. From the initial roll-out of the software, Tangam’s operations and analytics experts work with all levels of staff to seamlessly integrate data driven decision making to their daily operations Tangam Systems has also released a set of free online educational modules called Tangam Academy, which teaches table games operators the math and science behind table games revenue management. To date, Tangam Academy has helped advance table games yield management knowledge to over 4,000 table games personnel around the world. The first, and only, of its kind for the table games industry, Tangam Academy allows users to benefit from learning about table games yield management at their own schedule, pace, and setting.

SUPPLIER SPECIAL REPORT 67 TCSJOHNHUXLEY

Blaze Baccarat makes its debut

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CSJOHNHUXLEY, the leader in research, development, services and innovation in the live gaming space, will debut some exciting new additions to its portfolio at G2E Asia.

Making its debut at the show will be the 8-player Qorex carousel unit, designed to be a real showstopper on the gaming floor.

Available for both 23” or 27” Qorex terminals and incorporating large-scale 65” screens that can be seen right across the casino, the carousel units can be customized to include Asian influence features such as ornate dragons or curved roof designs, all in a variety of colourways to match any interior.

The carousel format is extremely flexible for operators and can be built around automated devices which include the Saturn TM Auto Roulette wheel, or the innovative Baccarat based-game of Gameball. In addition, players can choose from multiple games of live roulette and baccarat linked with live camera feeds from around the gaming floor, as well as RNG options.

There will also be a range of Blaze LED surface technology games. Blaze continues to be a popular choice with casinos across the globe, incorporating eye-catching patented game attract animations as well as highlighting winning bets which excite new and experienced players whilst providing additional security to dealers and operations staff alike. Joining the Blaze range and making its world-wide debut at G2E Asia 2019, is Blaze Baccarat which brings a new and exciting twist to the traditional game of Baccarat.

The Ora winning number display range has been designed to offer a new dimension of game excitement and atmosphere on the casino gaming floor, helping to ensure the power of winning number displays is maximised.

“We are excited to debut some exciting and visually striking products at this year’s show,” says Rebecca Kingswell, TCSJOHNHUXLEY managing director APAC.”Operators are looking for products to grab players attention, so providing innovative products that are not

only aesthetically exciting and entertaining, but also provide security and operational benefits, is key to our development process.”

to USB and a micro SD card slot allows quick and easy firmware updates. Additional unique features include a single rugged outer chassis with Serial, USB and Netplex ports, and a faster ServerPort connection. TRANSACT is working on the integration and approval process for the “Edge” with OEMs around the world, including all major game manufacturers in Asia and Australia.

Attendees will also have a chance to view

the Epic 950, which is the industry standard in TITO printing.

One of its most recent installations in the Asian market includes the Corona Resort & Casino in Phu Quoc Vietnam, which opened its doors with the Epic 950 printers exclusively in all their slots and ETGs. Additionally, the casino chose the table top version of the Epic 950 printers throughout their cage and back of house areas.

As there has been an elevated interest and demand for loyalty products throughout Asia, TRANSACT will showcase the latest iteration of Epicentral. Epicentral is the gaming industry’s only enterprise-level promotion and bonusing software suite that can target customers in realtime while they play their favorite slot machine or electronic table game. TRANSACT has integrated Epicentral with the major systems providers in Asia to provide a seamless coupon and loyalty experience for the casino operators.

In addition, TRANSACT will also demonstrate its Epic 880, which has long been the default printer used in established sports betting markets and the Epic 3000, which is the world’s leading online lottery ticket printer.

Meet the Transact team at booth #A719.

Transact

Rising demand for loyalty

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RANSACT will be displaying its premium line of gaming products, including the Epic 950, Epic Edge, Epicentral and Epic 880.

The Epic Edge TITO printer is the industry’s most advanced casino printer. Featuring an unmatched 300 DPI print resolution, the “Edge” delivers over twofold of an improvement in image quality over current printers in the market.

The firmware’s update port has been upgraded

Asia Gaming Briefings | May 2019

SUPPLIER SPECIAL REPORT 68 ULTRAPLAY

Partnering with BUFF.bet

B

etting solutions provider UltraPlay is partnering up with BUFF.bet to present their successful use-case during G2E Asia.

“How to establish a profitable eSports betting brand” will be the focus on the exclusive presentation that will be held by UltraPlay’s CEO Mario Ovcharov, at the company’s booth D909, on May 22nd.

Mario Ovcharov, CEO at UltraPlay said: “То make a profit in a very competitive and specific sector as eSports today, there are certain requirements that should be followed. This applies to both new and well-established betting brands because they can drop out the race if they do things wrong. That’s why we decided to present the success story of one of our strategic partners - BUFF.bet, and reveal more on the topic: How to establish a profitable eSports betting brand”.

There are certain trends and key elements that need to be considered when entering the eSports

betting field. It’s a whole new betting universe combining the rapidly growing eSports sector and the various requirements of entertainment new-age bettors have. A use-case of BUFF.bet, a betting brand that entered the global gambling market a year ago and established a name for an ultimate eSports entertainment place already, will be presented during G2E Asia, in Macao at booth D909.

Besides the know-how of offering eSports to players and unlocking new opportunities for the betting brands, UltraPlay will showcase its multiple-times award-winning eSports odds feed product as well as the full turnkey solution for online gambling.

Moreover, UltraPlay’s team is ready to offer its recently released innovative product - the hybrid eSports live betting model – a complex mixture of Artificial Intelligence and human traders’ interaction. With the enhanced live

betting model, UltraPlay is now capable to offer an unprecedented package for a next level of betting entertainment, which includes: • 28 eSports titles, amongst are the Golden Trio • Up to 200 live markets on CS: GO • 2500+ in-play events monthly • Enlarged number of live markets for all games (not just match winner) • Specific in-game objectives markets Besides, UltraPlay opens up another unprecedented live betting opportunity for the first time. Players will no longer complain about closed markets shortly after the game’s beginning. Esports live markets will be open for up to 3 times longer than the competition thanks to the UltraPlay’s eSports live betting model. Basically, the synergy comes from this success formula - human making the key decisions while AI is running the show. In this case, punters have it all – placing more in-play bets for a longer period of time.

For all willing to enter or advance in eSports betting, G2E Asia is the perfect place for meeting with the UltraPlay’s experts at stand D909.

WEIKE

Introducing updated favourites

W

eike Gaming Technology introduces its latest Caishen Fortunes (發大財) link which is a relaunch of its ever-popular Cai Shen Mystery Link, with improved graphics and sound.

The link supports up to four jackpot levels and a series of new game titles will be presented under this new link, including Golden Empire of Egypt, Cupid, Fortune Trio and Party Fiesta Deluxe among others.

The all-time favourite Qin Shi Huang relaunched in the Emperor cabinet will also be showcased during G2E Asia.

Also on display will be the METG Real Cards Virtual Chips, an add on to its ever popular METG Emperor electronic table, featuring the Podium and Arm option to offer live card dealing and creating the live gaming experience.

The region will also be getting its first look at the Pachinko Bonus Series, a new video slot machine DynamicW jointly developed by Dynam Japan Holdings and Weike Gaming Technology.

“We look forward to welcoming our

Asia Gaming Briefings | May 2019

valued clients and friends from across the Asia Pacific region to G2E Asia to experience our new range of exciting products” said

Weike Gaming Technology Executive Director, Daven Tay. Visit us at booth #A741.

SUPPLIER SPECIAL REPORT 69 Walker digital

WDTS introduces Hidden Treasure bonus

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DTS, known for its Perfect Pay RFID-enabled gaming tables and chip trays, will be showcasing new products at G2E Asia alongside PJM3.0 casino chip suppliers. Neil Crossan, WDTS Chief Commercial Officer, is looking forward to demonstrating the capabilities of the Perfect Pay platform. “Perfect Pay increases game speed, availability and security, while our real-time automated player tracking creates the opportunity to find, target and reward your most valuable table games players in a way never before possible.”

WDTS accomplishes this with its new Hidden Treasure Bonus which selects random winners from live play that is automatically tracked on targeted Perfect Pay tables. No manual rating entry is required. Promotion set-up supports many different prize types per promotion with different player type

and value criteria options. Promotions can be run for specific times during a day as well as for certain days of the week or month. Additionally, any Perfect Pay table can be included in a promotion, allowing the casino to target specific gaming areas or pits with unique promotions and player bonus opportunities.

WDTS will also present two titles from its new Games of Wealth series that offers players new ways to play and win without changing the traditional rules of baccarat.

Both Raise Baccarat and Baccarat Insurance lift house advantage while increasing the volume of wagers on the table and player excitement. Perfect Pay’s dealer support features ensure accurate payouts and a fast game pace.

PJM3.0 chip suppliers including Abbiati, Matsui and Aruze will also be presenting

their ranges of RFID gaming chips and plaques along with WDTS’ Perfect Counter.

Perfect Counter’s readers and companion application display the count and value of chips placed on multiple connected antennas.

Perfect Counter verifies casino chips against the casino’s master list with detailed chip information including Chipset, Casino ID, Site ID, Currency, and Negotiability.

Emily Io WDTS’ SVP of Sales notes “What is so exciting about G2E Asia this year is that we are able to partner with PJM3.0 chip suppliers to showcase the incredible range of table, cage, and marketing products that are available when you choose PJM casino chips.”

See PJM3.0 gaming chips and new WDTS products at Abbiati Casino Equipment in booth #A519, A525, Matsui Asia Ltd. in booth #A1319 and Aruze Gaming in booth #A1029.

Asia Gaming Briefings | May 2019

SUPPLIER SPECIAL REPORT 70 Win Systems

Win makes G2E debut

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in Systems, the leading technology supplier for the gaming and entertainment industry, will participate in G2E Asia for the first time.

Win Systems will start its expansion plan in the Asian market after the success of its gaming solutions in America and Europe, where they are experiencing strong growth. The company will show its best products, both in systems and in gaming machines and electronic roulettes, for casinos and arcades at the tradeshow.

Regarding the systems division, the company has already scheduled demonstrations of its wellknown WIGOS casino management system, which currently connects more than 90,000 machines in 325 casinos of all sizes around the world, including arcades and route operations.

The company will also be demonstrating some of its powerful features to optimize daily operation and decision making, such as Intellia (business intelligence tool), WinStats (an app allowing the

casino managers to receive real-time key figures from the casino on the smartphone) and WinUp (an app for players, customized with the casino image and content).

Within the gaming division, Win Systems will be showcasing its Gold Club electronic roulettes, the most compact in the premium segment, allowing the casino to maximize floor monetization. Also, on display will be the Chinese Roulette, that allows patrons to choose between the traditional electronic roulette or the innovative Chinese Roulette.

The company will also showcase two of its best models gaming machine models: its best-selling upright model, the GameStar S3; and the GameSTar ST3, a slant-top version of the successful GameStar S3. Both models use state-of-the-art technology which was designed to offer a better gaming experience and with an extensive library of games. Win Systems will

also present their best WAP / LAP jackpots, both mystery (Pyramid) and Symbol driven (Power Gong).

“We are attending G2E Asia with great enthusiasm,” says CEO Eric Benchimol. “We intend to transfer all of our great experience in other markets, so different from each other, such as the United States, Mexico, Argentina, and Spain, to operators and players in Asia.”

Win Systems will be at booth #A213.

ZITRO

The strategic importance of Asia

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itro, a global gaming provider of video slots and the world leader of video bingo, has been undergoing a deep transformation process in the last few years, which has taken them to being one of the leading companies in the international gaming industry.

The ambitious expansion plan of the company places Asia as one of the key markets in its strategic growth efforts.

With an important presence of video bingo machines in the Philippines and the first video slot machines on their way to make its debut in the country, the company is now ready to grow in the video slot market in the Philippines, as well as many other Asian markets, with its sensation Link King and Link Me. Two Multigame LAP products that are registering massive success all over Europe and Latin America.

Nadège Teyssedre, Sales Director of Zitro for EMEA states that: “Link King and Link Me are both products that are popular anywhere where they are placed, regardless of the demographics of the players. These kind of products are very rare and are usually the ones that take suppliers to the next level in our competitive industry. The proven performance of these games in very different markets on an international scale

Asia Gaming Briefings | May 2019

make us very sure about the great acceptances they will have also in Asia, where we will be launching them very soon.”

Rodney Hall, Sales and Operations Manager for Zitro in Asia adds: “I have never seen a company growing as fast and

strong like Zitro has in the last few years.

The exceptional performance of our games, combined with the constantly increasing and diversified product library, has made of Zitro a Sure Bet in the Philippines, in Asia, and in the World.”

SUPPLIER SPECIAL REPORT 71 XSG

TaiJi Link aims to set pulses racing

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SG, the R&D-focused company from Taiwan, is set to launch an exciting new line of EGM products at G2E Asia this year.

Featuring a playstyle nicknamed “TaiJi Link”, the EGMs will simultaneously showcase gameplay built upon tried-andtrue formula, as well as introduce new features and revamped pacing designed to squeeze out even more excitement.

“A more rewarding b onus game experience is what we’re aiming for in the design of TaiJi Link,” a representative from XSG elaborated. “More specifically, by shifting the focus to a big climax at the end of the bonus game, we can prolong the intense feeling of anticipation that’ll really get our players’ adrenaline pumping.”

The 5-reel, multi-denomination 243way EGMs will be featured prominently on XSG’s main show booth, topped with eye-catching sign packages in 4-and 8-seat arrangements. The EGMs will launch with 6 Chinese-themed titles for buyers to choose from. In addition to the EGM, a number of other products will be showcased on the main booth. The company’s popular fish hunting VGM “Fishing King”, with Full HD graphics and layers of addictive gameplay elements, will once again greet the audience on the show floor. The game features 25 types of fishes and 8 types of weapons, in addition to exhilarating boss fights and secret stages. It has recently made a splashdown in the US market as an unmissable attraction in a number of gaming venues.

The company’s LAN-Based Gaming System, designed as an all-in-one gaming parlour solution, will also be on showcase, demonstrating its linked progressives, flexible setup options, and offline LAN support. The award-winning product is suitable for operators throughout Southeast Asia, and XSG is committed to providing 24/7 tech support to their clients.

Finally, the company’s capability in providing white-label iGaming products and solutions will be showcased at a smaller booth on the upper show floor. Visitors can browse XSG’s online products and solutions while experiencing the company’s charttopping cross-platform social casino titles.

XSG will be welcoming visitors at booths #A2029 and #D915 during G2E Asia.

Asia Gaming Briefings | May 2019

SUPPLIER SPECIAL REPORT 72

Asia Gaming Briefings | May 2019

SUPPLIER SPECIAL REPORT 73

PHIL-ASIAN GAMING EXPO SETS TO RE-INVENT iGAMING EXHIBITION IN ASIA Philippines has come to be recognized as the world’s most favourable jurisdictions for licensing and regulation of iGaming and the industry in the country is expected to grow substantially in the near future. Phil-Asian Gaming Expo (PAGE), with the support of Philippines Amusement and Gaming Corporation (PAGCOR) is launching an iGaming trade show to serve as a transparent platform to influence and guide the industry.

This gaming expo will take place at the SMX Convention Center Manila from July 12th to 14th, 2019. PAGE expecting to welcome more than 30,000 professional visitors, 500 VIPs and 100 exhibitors from worldwide, with a show size of 20,000 square meters. The exhibitors who have already came on board are some of the biggest names in the industry such as PlayTech, SunBet, Oriental Gaming, Habanero, iSoftBet, Pragmatic, InPlayMatrix, SA Gaming, Rolling Bet and etc.

“We are very excited for this event as we wish to re-invent the iGaming industries to become more transparent and subsequently adhere to rules and regulations and undergoing proper procedures. “, the organizer of PAGE said in the press release.

PAGE also stated that it aims to become the hub of Asia’s entertainment industry with a dedication to build a credible, trustworthy and fair platform to ultimately form a better, more self-confident and disciplined industry.

“PAGE is fully-equipped with top-of-the-line and most comprehensive security system. It strictly controls the quality of audience, ensuring a genuine, secure and trustworthy environment for business communications.”, asserted by the organizer.

Exhibitors have the opportunities to showcase their diverse and latest technology offerings in the gaming industry including software, games, solutions, platforms, payment and other peripheral products; while it also serves as a one-stop learning center where visitors can find new business connections, trending products and solutions for their business.

About Phil-Gaming Expo: Phil-Gaming Expo is the first government-sponsored and accredited industry exhibition in the Philippines. It is committed to building a credible and fair platform to influence and guide the industry through the exhibition. For more information, please visit: www.phil-asiangamingexpo.com.

Asia Gaming Briefings | May 2019

CALENDAR OF EVENTS 74

MAY

JULY

Japan Gaming Congress 16-17 May 2019 Conrad Hotel, Tokyo http://www.japangamingcongress.com/ G2E Asia 21-23 May 2019 The Venetian, Macau https://www.g2easia.com/

JUNE Russian Gaming Week 6-7 June 2019 Moscow https://rgweek.com/en Asian Gaming Expo 27-29 June 2019 Sokha Beach Resort, Sihanoukville, Cambodia http://www.asia-gamingexpo.com/

World Gaming Executive Summit 2-4 July 2019 W Hotel, Barcelona https://www.terrapinn.com/conference/world-gamingexecutive-summit Affiliate Conference & Expo (ACE) Manila 8-9 July 2019 Solaire Resort & Casino, Manila https://www.eventus-international.com/ace Philippine Gaming Expo 12-14 July 2019 SMX Convention Center, Manila http://www.phil-asiangamingexpo.com/ iGB Live 16-19 July 2019 RAI Amsterdam https://www.igblive.com/

Become a member Exclusive access to AGB Intelligence BE the first to receive our daily briefs priority registration for our events

REGISTER NOW AT AGBRIEF.COM

Asia Gaming Briefings | May 2019

AUGUST Australian Gaming Expo 13-15 August 2019 International Convention Center, Sydney https://www.eventus-international.com/ace

SEPTEMBER Gaming, Entertainment & Tourism Summit 23-25 September 2019 Tiger Palace Resort, Nepal https://www.eventus-international.com/gets International Association of Gaming Regulators annual conference 30 September - 3 October 2019 Montego Bay, Jamaica https://iagr.org/conference

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Asia Gaming Briefings | May 2019

INDUSTRY OPINION 76

What’s in a name?: Effective branding of casino properties

Sudhir H. Kalé*

The role of branding in the marketing of casino properties has somewhat lessened in significance over the last two decades. One major reason for this decline in significance are the mergers and acquisitions which have gathered steam during this period. Yet, from the vantage point of the customer, branding remains as important as ever. I would go so far as to argue that despite the consolidation and the consequent rebranding of properties, it behooves casino operators to use the power of individual brands as a key ingredient in their marketing strategy.

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n example from packaged consumer goods will drive home the point. Proctor & Gamble (P&G) has hundreds of brands, all having their own identity. In fact, how many consumers would know that Era, Tide, Cheer and Gain are all laundry products made by this company? For branding to serve its key purposes, it needs to be strategically managed with the target customer in mind.

Asia Gaming Briefings | May 2019

What is a brand?

Over the years, many different definitions of a brand have been offered. David Aaker, Professor Emeritus at University of California, Berkeley, defines a brand as, “a distinguishing name and/or symbol intended to identify the goods and services of one seller and to differentiate those goods and services from those of competitors.” A more contemporary

INDUSTRY OPINION 77

and useful definition of a brand is offered

by Seth Godin who writes, “A brand is a set of expectations, memories, stories, and relationships that taken together, account for a consumer’s decision to choose one product or service over another.”

What casino properties need to do?

In this day of customer empowerment, it would be naïve to think that marketers are in total control of their brands. Rather, the brand is a container of meanings co-created by marketers’ intention, customers’ interpretations and experiences, and associations generated by the broader socio-cultural environment. There are several obvious advantages to branding—a strong brand attracts premium price, creates a loyal following, facilitates instant customer recall and recognition, and generates positive word-of-mouth communication—the strongest marketing weapon of all times.

Given these visible gains from branding, it is obvious that casino operators should redouble their efforts to build strong individual brands for their properties. Specifically, in

their quest to build a strong brand, they need to ensure six things: (1) the brand clearly identifies a set of marketplace offers; (2) The brand is distinctive and unique in the eyes of the targeted customer; (3) The brand has a unique selling proposition (USP) that is hard for the competition to copy or replicate; (4) The brand is imbued with meaning that has relevance to the target market: The meaning could be derived from brand associations, brand personalities, personas, or archetypes; (5) The brand provides strong value to both the firm and the customers. Value to the firm would ultimately translate into financial return whereas value to the customers could comprise of functional benefits, emotional resonance, or status value; (6) The brand must provide the experience to customer that it promises. Sergio Zyman (Remember him? The New Coke guy) goes so far as to suggest that a brand is little more than a container for a customer’s experience with the product or the company.

When correctly orchestrated, the brand name becomes shorthand for bestowing benefits not easily attainable by other

laborious and costly marketing activities.

While individual themed properties (such as New York, New York in Las Vegas or the Venetian in Macau) offer some of the benefits that effective branding does, they are merely the foundation, not the spire, of the branding edifice.

While consolidating many properties under one family name (such as Caesars or MGM) has benefits such as economies of scale, common loyalty programs, and encouraging cross-property visitation), such aggregation detracts from the formation and sustenance of individual brand personality, and the emotional connections customers would otherwise forge with individual properties.

Furthermore, negative publicity—for whatever reason—surrounding one property can quickly and adversely impact performance at other properties. True loyalty usually involves individual products or properties.

For example, my loyalty may be toward individual airlines such as Qantas (possible) or Jetstar (highly unlikely), it will never be toward the parent company that owns both airlines. Multibrand loyalty toward a company is only possible where the same brand name is given to different products (such as Apple i-phone, i-pod, and i-pad), and there exist significant advantages in owning these products (such as common platforms, or ease of mobility). This, clearly, is not the case with casino properties. Yes, I can use the same loyalty card at Harrah’s Las Vegas and at Caesars Palace, but individual differences across the two properties are far too huge for me to form an emotional connection with either property. In fact, many marketing scholars contend that Harrah’s made a mistake in its acquisition of casinos formerly owned by Park Place Entertainment (later renamed Caesars). The acquisition and consolidation, they argue, resulted in impoverished brand equity for all brands involved in consolidation. *Sudhir H. Kalé, Ph.D. is Honorary Professor of Marketing at Bond University and the Founder of GamePlan Consultants. He has published more than a hundred articles on the marketing and management of casinos, and has consulted for clients on five continents on issues such as customer relationship management (CRM), marketing audits, customer journey mapping, property positioning, and customer experience. You can contact Sudhir at skale@gameplanconsultants.com.

Asia Gaming Briefings | May 2019

LAST WORD 78

Is the pie big enough?

Sharon Singleton

Managing Editor, AGB

As investors dip into the tasty pie that is the Asian gaming industry, producing integrated resorts from Nepal to Vladivostok, some analysts are beginning to sound a sour note.

B

The problem is exacerbated by the fact that many illions of dollars have been invested over the past decade into new resorts, or property jurisdictions across Asia ban, or restrict, locals from gaming, upgrades and that’s even before Japan comes meaning most will be relying on foreign visitation for online. Those competing for a license there have growth. The Philippines is a notable exception, as casinos pledged to build world-beating resorts, with a price tag there enjoy solid, mass market local support. However, the sector of the market that has been growing the fastest of $10 billion and maybe beyond.

Macau’s main building boom is coming to a close in recent years has been the VIP, which accounts for now, with just SJM Holdings in the pipeline to open about 28 percent of GGR at private casinos and which its Lisboa Palace on Cotai towards the end of this year. is vulnerable to heightened regional competition.

Without a doubt, the China outbound tourist will But South Korea has several multi-billion projects in the works in the Incheon area and on the southern continue to be the most targeted demographic for the island of Jeju, as does the Primorye Gaming Zone foreseeable future. More than 200 million are expected to be travelling abroad from 2020 and the number of near Vladivostok in Russia.

Cambodia reported a 53 percent jump in casino Chinese passing the threshold that makes travel affordable licenses granted last year, while neighbouring Vietnam is surging, with 240 million to hit the income distribution hump in the next seven years, saw the debut of the Corona according to research from Jefferies.

Resort & Casino in January and The bulk of those, however, will see the entrance of the $4 won’t be VIPs and analysts agree billion Hoiana later this year Billions of the best-positioned operators will to name but a few. dollars were be those with the largest exposure In the Philippines, President to the mass market rather than Rodrigo Duterte has curbed the invested in the last the volatile VIP segment. enthusiasm of casino investors decade to build All of that said, the Chinese by putting a moratorium on new aren’t the only game in town. licenses, but there is still plenty casinos that cater Household incomes are rising of new development taking place to wealthy Chinese across the region creating alternative from those who slipped in before markets for operators prepared the cap was put in place. consumers in to cast their net wider.

Australia has a new six-star APAC. Thailand has always been a IR in Sydney under construction, source market for border casinos as well as new properties in in Cambodia, but wealthy Thais Queensland, while Singapore recently announced it would permit an S$9 billion are increasingly being courted by higher-end properties expansion of its two gaming resorts, the first major in both Vietnam and Cambodia. Donaco’s Star Vegas in Poipet has been adding junkets to rebuild its VIP business growth since the IRs opened in 2010.

Asia is undoubtedly now the world’s largest gaming and saw its main hall turnover treble in Q1, propelled region, producing revenues north of $80 billion by the introduction of mass tour groups from Thailand.

Bangkok is seen as underserved and improved from those licensed casinos that report their figures.

The trouble is, some analysts see these resorts as all transport links, such as flights between the Thai capital and Sihanoukville, will expand horizons beyond a competing for the same clientele.

“Billions of dollars were invested in the last decade dusty drive to the border.

And, then there’s India, with its vast and largely to build casinos that cater to wealthy Chinese consumers untapped potential. in APAC,” Fitch Ratings said in a recent report.

India’s middle class is set to grow rapidly from up “The premium segment has already plateaued in markets such as Singapore and Australia but investment to 80 million today to 580 million people – or about is continuing across the region, even as China’s economy 41 per cent of the population – by 2025.

Competition is rising in Asia, but so is the pie and goes through a structural slowdown,” it adds.

The ratings agency forecasts China’s GDP will grow 6.1 with the right property and marketing strategy there percent in 2019 and 2020, down from 6.8 percent in 2018. should still be enough to go around.

“

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Asia Gaming Briefings | May 2019

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