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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.
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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.
