ROAD TO RECOVERY

The industry is facing its darkest days. Properties have shut down, manufacturing supply chains have been shattered, F&B and retailers have no one to service. For the first time in modern history Macau’s casinos were shut down - something that not even the wildest storm accomplished. Macau might have turned on the lights, but around the region every other operation has been shut, with many announcing rolling extensions to the lockdown.

The Covid-19 pandemic is arguably the biggest crisis that most of us have faced and without a doubt will change the way we live and work. It’s hard not to be gripped by a sense of panic, however, there will be light at the end of the tunnel and our focus section in this edition of Asia Gaming Briefings tries to offer a path towards recovery.

In our first article, we report on comments made by Canadian entrepreneur Earle Hall in the inaugural session of our webinar series in April. Hall, who is CEO of Axes Network, points out that periods of great creativity and opportunity have historically followed great upheaval. In our second article, gaming lawyer David Green tackles some of the regulatory changes that we may see emerging in the industry. Professor Wolfgang Arlt tackles one of the biggest industry drivers -- that is what the road to recovery will look like with regard to Chinese visitors? Meanwhile, companies will need to optimise their operations to keep costs to the minimum while the revenue picture improves. We speak to experts about what tools can be adopted to help managers ramp up their various properties.

A measure of a company is taken in the face of adversity. Particularly how they deal with their employees and their customers, and most especially how they support the local communities within their reach. In this edition we take an in-depth look at how the local operators have all stepped up to the plate to help out the local community, donating millions in aid, as well as medical and other supplies to help the needy. We highlight their efforts, which have all been undertaken at a time when they are generating close to zero revenue due to the closure of the borders.

We also look at each jurisdiction’s efforts to bounce back amid the challenges. In Macau, VIP gamers are expected to lead the recovery, but there is still no clarity as to when the markets will improve, with estimates for revenue continuing to be revised downwards and forecasts for the potential turning point pushed further down the road.

Over to the Philippines, the Covid-19 crisis has rekindled debate over the potential privatisation of the PAGCOR casinos to raise funds to fight the pandemic, but ROI remains hard to determine with all the unknowns around a re-opening of the properties.

Singapore has taken the opportunity to update gambling oversight and announced a major overhaul of its highly respected regulatory regime to make sure it keeps abreast of new product developments and technologies.

Traditionally our Supplier Special Report is dedicated to new products and solutions to be showcased at the next major industry event, but every other gathering has been scrambling to reschedule. In place of our normal format, The Covid-19 pandemic is arguably the biggest crisis that most of us have faced and without a doubt will change the way we live and work.. What measures have they taken and will they remain in place once the crisis has passed? The clear majority stress that the digital solutions that have been put into place to ensure work can continue from home do have some advantages, but will never replace the face-to-face meetings and staff interactions that spark the creative juices. Happy readings, stay safe, keep healthy.

On behalf of Asia Gaming Brief Rosalind Wade & Luis Pereira

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