JURISDICTION UPDATES October 2015 Edition
Follow the money In search of the next Chinese investment hotspot Special Focus pg 26 Last Words pg 55
MACAU
Reshuffling resources pg.06
MAINLAND
Millennials shaping trends pg.10
SOUTH KOREA
Competition gets cooking pg.14
PHILIPPINES Down but not out pg.18
G2E 2015 SUPPLIER SPECIAL pg.34
MESSAGE 3
Follow the money
W
e are headed to Las Vegas to take part
tourism market is not only driving trends across the
in G2E, which is gearing up to be a
globe, but is itself changing, with the millennial Chinese
massive event again this year, with a
seeking different experiences from their parents.
strong lineup of keynote speakers and
And while the competition for a license to operate
the participation of global industry suppliers. The
an integrated resort in South Korea heats up, Japan’s
gathering is an opportunity to discuss the underlying
efforts to legalize casinos lie in indefinite limbo.
currents influencing the industry and look at the latest
The Philippines, tipped to be the region’s best-
innovations in the market.
performing gambling market, is still likely to
In this edition of AGBriefings we take a look at where
outperform its peers, analysts say, while Singapore’s
the Chinese money, which is now shunning Macau,
steady gambling revenue is under pressure as regional
may be heading.
currencies depreciate against the island-state’s dollar
A $45 billion gaming market doesn’t just disappear
and the local and Chinese economies weaken.
overnight, neither does China’s appetite for gambling.
Still, Indochina continues to attract investment. Hong
Punters and investors seem to be going further and
Kong conglomerate Chow Tai Fook has increased its
further afield to find opportunities that, for the time
stake in the long-delayed Nam Hoi An Casino resort
being, seem unavailable in Macau.
in Vietnam. In Cambodia, NagaWorld shines as a
We’ve seen China drive into regional markets, such as
bright light in these darker times for Asia’s casino
Cambodia, Vietnam. Then there was Australia, where
market, posting a 39 percent year- on-year increase in
Asia tourism potential will be put to the test with a
revenues, well above analysts’ estimates.
significant influx of capacity. As we follow the money
In India, a powerhouse among emerging markets, poker
we’ve found that Europe could be another beneficiary
is thriving, although regulatory uncertainty, the lack of
of the ongoing struggles, as Asian casino and junket
infrastructure and high taxes, are keeping the industry
operators eye investment opportunities on the Old
from achieving its full potential.
Continent.
All this and more in the pages ahead. As always, we
Outside of the gaming industry, the mainland has
look forward to connecting with you at one or other of
been actively seeking to diversify its play. In the U.S.,
the events, or remember to stay up to date with all the
Chinese investors have been busy in the real estate and
developments by following us on social media.
particularly the hospitality industry.
If you would like to book a meeting with us while in Las
With the exodus of the China VIP, the Asian jurisdictions
Vegas write to us at G2E@agbrief.com. l
face different challenges, which we delve into in our Jurisdiction Updates. In Macau, concessionaires are retraining and reshuffling precious staff resources as the demand for dealers ebbs amidst slumping gaming
@agbrief
Rosalind Wade
Luis Pereira
Asia Gaming Brief
Asia Gaming Brief
revenue. On the other side of the spectrum, The Hong
On behalf of Asia Gaming Brief
Kong Jockey Club said it enjoyed another record year in
Rosalind Wade & Luis Pereira
the 2014/2015 season. Meanwhile, China’s outbound
PUBLISHERS
www.asiagamingbrief.com OCTOBER 2015 EDITION SERIES II • ISSUE IX
PUBLISHED BY BLUE SKY VENTURE LTD. Suite 1104 - 11/ F, First Int. Commercial Centre 600E Av. Dr. Rodrigo Rodrigues Macau SAR | P.O. Box 1139 t. +853 2871 7267 f. +853 2871 7264 e. enquiries@agbrief.com
PUBLISHERS & MDS Rosalind Wade, Luis Pereira
ADVERTISING ENQUIRIES advertising@agbrief.com
PHOTOGRAPHY MacauLink, Agencies, Amadeus Photography
SUBSCRIPTION ENQUIRIES memberships@agbrief.com EDITORIAL ENQUIRIES editorial@agbrief.com
MANAGING EDITOR Sharon Singleton ASIA EDITOR George Styllis DESIGN People Press Publishing
PRINTING Hop Sze, Hong Kong Cover photo MacauLink
DISCLAMER All rights reserved. No part of this publication may be reproduced or transmitted in any shape or form, or by any means, or stored in any retrieval system of any nature, without prior express permission. The publishers accept no responsibility for loss or damage to any materials submitted for publication. The views expressed within are not necessarily subscribed by the publishers. For more info, please visit our website.
AGBRIEF PARTNER EVENTS
› ICE Totally Gaming › iGaming Asia Congress › G2E Asia › Russian Gaming Week › iGaming Super Show › World Gaming Executives Summit › Australasian Gaming Expo › Gaming, Racing & Wagering Australia › G2E Las Vegas › European iGaming Congress › IAGR Annual Conference › Macao Gaming Show
Asia Gaming Briefings | October 2015
CONTENTS 4
GREATER CHINA
SOUTH EAST ASIA
06
SOUTH ASIA
MALAYSIA
17
10
PHILIPPINES
18
TAIWAN
11
SINGAPORE
21
HONG KONG
12
MACAU MAINLAND CHINA
INDOCHINA
NORTH ASIA
24
INDIA
AUSTRALASIA
SOUTH KOREA
14
VIETNAM
22
AUSTRALIA
30
RUSSIA
15
CAMBODIA
23
NEW ZEALAND
32
JAPAN
16
PACIFIC ISLES
33
SPECIAL FOCUS
26
SUPPLIER SPECIAL REPORT
34
PRESENTED BY
GAME-CHANGING INNOVATION. Technologies unveiled. Services and products to be bought. Insight to be gained. Connections to be made. But only one place in the world to find them all together.
AT G2E.
54
LAST WORD
INTRODUCING
SEPT 29 - OCT 1, 2015 SANDS EXPO CENTER, LAS VEGAS INTRODUCING THE INTEGRATED RESORT EXPERIENCE AT G2E, FEATURING END-TO-END CASINO RESORT SOLUTIONS, INCLUDING SLOTS AND SKILL-BASED GAMES, CMS AND P.O.S. TECHNOLOGIES, STAY WELL AMENITIES, CUTTING-EDGE FURNISHINGS AND SIGNAGE, LOYALTY PRODUCTS, F&B AND FRANCHISE CONCEPTS AND MORE. ALL IN ONE PLACE: G2E, HELD SEPT. 29-OCT. 1 AT THE SANDS EXPO AND CONVENTION CENTER IN LAS VEGAS.
REGISTER TODAY AT GLOBALGAMINGEXPO.COM T H E WO R L D ’ S L A R G E S T G AT H E R I N G O F GAMING PROFESSIONALS # G 2 E 2 01 5
Asia Gaming Briefings | October 2015
GREATER CHINA 6
MACAU
Staff training surges as needs change in shifting Macau market The shifting sands of Macau’s casino industry are forcing companies to retrain and reshuffle precious staff resources as the demand for dealers ebbs amidst slumping gaming revenue.
Asia Gaming Briefings | October 2015
O
perators are seeking to boost their
Average earnings in June, excluding bonuses
non-gaming offering and are investing
and allowances, of full-time employees stood
heavily in staff retraining programs.
at MOP21,480 ($2,689), up 6.5 percent year-on-
Layoffs to cut costs aren’t an option
year, while dealer average earnings increased
in Macau, due to government pressure and a
6 percent to MOP18,580.
severe labor shortage caused by restrictions
Also revealed in the government’s data was
on the importation of foreign workers.
the surprising number of participants who
It was recently announced that the number of
attended training courses provided by casinos,
full-time employees in Macau’s gaming sector
up 158.4 percent year-on-year to 44,769.
rose 1.3 percent year-on-year in 15Q2 to 57,422,
In June, Sands China announced that more
while the number of dealers dropped by 2.5
than 1,000 of its team members had shown
percent to 25,072, according to official data.
interest in the company’s Integrated Resort
GREATER CHINA 7 Career Development Programme, with nearly
required to fill these roles.
400 participating in the first phase of it.
“It means less reliance on the few key industries
The purpose of the program is to place staff in
and a more diversified labour portfolio. It also
several non-gaming departments throughout
translates to more competitive demand for the
the company’s integrated resorts, via voluntary
same labour pool from different industries. It
six-month assignments.
will create a more dynamic labour market,”
“The new career development programme is
Loh said, adding that the labor shortage is
a voluntary programme that gives interested
most evident in areas such as IT, engineering
team members an opportunity to broaden
and property management.
their career horizons,” said Simpson Lei,
According to BettingJobs, a specialist recruitment
Sands’ corporate communications manager
company, demand in Asia for staff in IT and
for Sands’ Venetian Macau.
analytics is driving up average salaries in the
Similarly, in June Galaxy Entertainment Group
betting sector.
GROSS GAMING REVENUE Y14 $44b -2.6% Aug. $2.33b -35.5%
Y15E -32% Y16E 13%
launched a new four-month “Accelerated Development Program” of which the first major program was completed in May. Of
OPERATORS
(Source: Sterne Agee)
Y15E
the 692 program participants, 98 percent successfully graduated and have been promoted into supervisory and management positions, the company said. “The aim of ADP is to establish a promotional
SJM HOLDINGS (880:HK)
Sept. with 20 casinos. Its $3.2 billion Palazzo
are ready for supervisory and management
Versace development is scheduled to come
roles,” the company said in a press release.
online in 2017. Mass market property the Jal
The program started in January and ended in
Alai is scheduled for a mid-2016 opening with
May with members from a range of departments
130 rooms and 45 gaming tables. The company
including in table games, electronic games and
has also indicated it may be interested in
food and beverage, being trained in supervisory,
opportunities in Japan. The company is currently
management and technical skills through
building The Lisboa Palace on Cotai, which is
classroom training, on-the-job training, and
also scheduled for completion in 2017. The
other methods.
casino will have 700 gaming tables and over
Dr Leanda Care, a research analyst on Asia’s
1,200 slot machines across a gaming floor area
casino industry for IGamiX Management and
of approximately 27,000 square metres. The
Consulting, said the industry’s downturn has
total production cost is estimated at about
sparked an increase in training in the absence
HKD$30 billion ($3.8 billion), although the
of layoffs, which has been determined by
company has expressed concern over costs.
government pressure and the economy as
In 1H15, gaming revenue decreased 40.3 percent
a whole.
to HK$26.3 billion ($3.3 billion), with its results
“We are probably seeing a combination of
mostly in line with expectations. Adjusted
management confidence and political pressure
earnings before interest, taxes, depreciation
and incentives to develop staff here.”
and amortization, and profit attributable to
“So, there are a number of reasons to shuffle
the owners of the company decreased 49.1
staff around: supply and demand changes
percent and 54.1 percent to approximately
internally due to a shift in the business, training
HK$2.3 billion and HK$1.8 billion, respectively.
and development, and political pressure. But
Mass market table gaming revenue decreased
all in the context of confidence in the future of
26.8 percent to HK$11.5 billion and VIP revenue
gaming in Macau – not that any of the players
showed a decrease of 48.7 percent to HK$14.2
can afford to think otherwise on the back of
billion during this period compared to last
the investment to date.”
year’s. Construction on the Lisboa Palace
While staff costs have been cited as weighing
made good progress in H1, it said.
on revenues, investing in staff from now will
hello-jobs.com. Non-gaming and mass orientated facilities will add variety to the kind of job opportunities in the marketplace, while broadening the skillset
-5.8% (Source: Deutsche Bank)
Y15E -36% Y16E -2% Y17E +6%
MARKET SHARE AS OF SEPT. 1ST - 6TH 2015
GALAXY ENTERTAINMENT 24.2% LAS VEGAS SANDS 20.9% SJM HOLDINGS 18.2%
yield promising long-term gains as opposed managing partner for MSS Recruitment and
Y16E
Holds an 18.2 percent market share as of early
pathway platform for GEG team members who
to quick solutions to save money, said Sy Loh,
-34.1%
GALAXY ENTERTAINMENT GROUP (27.HK)
MGM RESORTS 15.1% MELCO CROWN ENTERTAINMENT 13.3% WYNN RESORTS 8.2%
Has a 24.2 percent market share with eight properties. The company’s new Galaxy Macau
Asia Gaming Briefings | October 2015
GREATER CHINA 8 Phase 2 and Broadway at Galaxy Macau opened
show, jungle-themed river rides, a figure-8
the prior year quarter and VIP table games
on May 27 this year, almost doubling the
Ferris wheel and a Batman attraction. Melco
revenue decreased 43 percent.
capacity of the resort. It was given an allocation
says the resort will be made up of 95 percent
MGM China EBITDA was $132.2 million versus
of 150 tables by the government, far short of
non-gaming components.
Sterne Agee estimates of $124.1 million. l
the 400 it had requested.
Bernstein Research recently called Melco the
In the latter part of 2015, the company
most undervalued casino stock due to its focus
expects to begin site investigation works for
on premium mass.
Cotai Phases 3 and 4, the plans for which are
In Q2 earnings adjusted net income was $44.2
almost complete.
million, or $0.082 per ADS, down from $163.7
The company is also expected to break ground
million, or $0.29 a year earlier. Net revenue
on its hotel on Hengqin Island this year. Galaxy
was US$916.8 million, down about 24 percent
is planning a “Maldives-style” resort.
from the same quarter last year and missing
In 1H15, revenue fell 34 percent to $25.4 billion,
analyst targets for $958.89 million.
while adjusted EBITDA was $4.2 billion for 1H
The company recently said it hired Kirkland &
2015, a decrease of 43 percent.
Ellis LLP as its counsel and Moelis & Company
Analysts have said the addition of Galaxy Macau
LLC as its investment banker to assist it with
Phase 2 hasn’t significantly boosted revenue.
contingency planning should it not receive
“While in the past, supply has driven demand
the table allocation from the government it
in both Las Vegas and Macau, Galaxy Phase
requested. Analysts estimate Melco will receive
II (though more an expansion than a new
the same as Galaxy at 150, which the company
property) has not changed the trajectory of
has said may not be commercially viable.
growth in Macau since its opening on May 27,” Morgan Stanley said in a recent note.
WYNN MACAU (1128:HK) SANDS CHINA (1928:HK)
Has an 8.2 percent market share and currently
Has a market share of about 20.9 percent and
is under development and scheduled to open
has four casinos. Analysts say the company
in the first half of next year, with 1,700 hotel
has had a lower room occupancy than rivals
rooms. Chairman Steve Wynn says 90 percent
in Cotai, meaning it has more potential for
of the resort will be non-gaming.
revenue growth if it fills the rooms. The
The company said the resort will feature a
company’s new developments include the $3
performance lake, casino, spa, retail and other
billion The Parisian, which is now expected to
outlets. It is aiming for about 500 table games.
come online in late-2016. Sands China also
In Macau, the company’s 15Q2 net revenues
recently expanded retail space at its Sands
were $617.0 million, a 35.8 percent decrease
Cotai central property, with the addition
from the $960.6 million generated in 14Q2.
of 150,000 square feet of space, with shops
Adjusted property EBITDA for Macau dropped
designed to appeal to families.
43.5 percent $173.4 million.
Sands China Ltd.’s total net revenues decreased
Table games turnover in the VIP segment was
25.6 percent to $1.77 billion in 15Q2, compared
$15.5 billion, a 41.1 percent decrease from
to $2.38 billion in the same period last year.
$26.4 billion in 14Q2.
Adjusted property EBITDA for Sands China
The average number of VIP tables decreased
Ltd. decreased 29.5 percent to $564.5 million
to 247 units from 263 units in the prior year’s
in the period, compared to $800.6 million in
second quarter.
has one casino, while its $4 billion Wynn Palace
the prior year period.
MELCO CROWN
MGM CHINA (2282:HK)
Has a 15.1 percent market share while
ENTERTAINMENT (6883.HK)
operating a single casino on the peninsula.
Has three casinos and an 13.3 percent market
which is a $2.9 billion project scheduled for
share. The company’s $3.2 billion Studio City is
completion mid 2016.
scheduled to open on October 27, 2015, it was
MGM China earned net revenue of $557 million
announced during a “sneak peak” ceremony on
in 2Q15, a 33 percent decrease compared to
August 5. The resort will feature a 5,000-seat
the prior year quarter. Main floor table games
multi-purpose theatre, a permanent magic
revenue decreased 23 percent compared to
Asia Gaming Briefings | October 2015
Its new developments include the MGM Cotai,
Macau operators see significant near-term uncertainty related to a host of issues, with a few even suggesting VIP play in Macau may never fully come back, Wells Fargo said after meetings held in Las Vegas. Operators are pointing to China’s currency devaluation and policy ambiguity, along with junket liquidity issues and tighter policy towards Macau from the Mainland. Gaming-related crimes in Macau surged 34.5 percent year-on-year to 679 cases in the first half of the year. During the first half of this year, a total of 170 unlawful detention cases were recorded, reflecting a 112.5 percent increase year-on-year. The rise in illegal detentions also drove violent crimes up by 3 percent to 410, while usury cases increased by 39.1 percent to 153.
GREATER CHINA 10
GROSS GAMING REVENUE
MAINLAND CHINA
Millennial traveller trends to shape luxury travel/casino market China’s outbound tourism market, already the largest in the world, is driving trends in luxury and leisure across the globe but, as this market continues to expand, the demographic is also changing with the millennial Chinese seeking different experiences from their parents.
U
Y14 Total sales RMB 382.38b ($61.6b)
+23.6%
Welfare Lottery Sales RMB 203.96b
+16.7%
Sports Lottery sales RMB 176.4b
+32.8%
Sales to end July RMB 214.7b
-0.4%
Welfare lottery RMB 118.4b
+2.1%
Sports lottery RMB 96.3b
-3.4%
nderstanding the preferences of
a place to sleep” and more an integral part of
the 25 - 34 year-olds may be key in
their leisure experience,” the survey found.
attracting the China leisure traveller
“This presents incentives for forward-thinking
of the future and filling the world’s
hoteliers to target them with an experiential
casino floors. This group, born between 1980 and
rational to pay a premium for something their
1989, comprise more than 200 million people,
parents might consider ancillary.”
or about 17 percent of China’s 1.3 billion total
In a June workshop, Professor Wolfgang Georg Arlt
population, according to a research paper from
head of the China Outbound Tourism Research
YWS Design & Architecture.
Institute, pointed out that this second wave of
The firm has just released results from an online
travellers are more open to suggestions, but
survey of 1,000 participants across four major
also more confident and demanding than ever.
Chinese cities -- Beijing, Guangzhou, Shanghai
There needs to be a balance between treating
and Shenzhen -- that seeks to identify what
them as international citizens and still showing
drives the “millennial traveller” and what
respect to the Chinese culture, he said.
makes them different from both their parents
Therefore, Macau’s current efforts to diversify
and their western counterparts.
its tourism offering may stand the territory in
In 2014, Chinese outbound travellers spent a record
good stead to attract the younger generation
$164 billion. By 2019 this number is expected to
of traveller, especially in the much coveted
balloon to 174 million tourists spending $264
premium mass sector.
billion annually on outbound tourism.
“Macau has a tremendous opportunity.
The good news is, gambling still plays a large part
Diversification is a great way to keep people in
in their travel preferences, though is unlikely to
China,” Coppola said.
be enough in and of itself to attract the younger
However, Coppola says it’s still hard to quantify
traveller. The survey found Las Vegas was the
how these changing preferences will play out in
most popular outbound destination for a leisure
terms of the design of the casino floor.
experience.
Ken Jolly, vice president of Scientific Games Asia,
“Gaming is part of the DNA, the allure is very
told AGB at G2E in May that he expects to see
old and just because someone is 25 that doesn’t
more theming as the market evolves and players
change. However, they are interested in a broader
seek more of an overall experience.
variety of things,” Roberto Coppola, YWS director
However, Coppola says he believes the jury is
of market research and consumer insights, says.
also still out as to whether the new generation
Shopping is still cited as the number one driver
of Asia-developed slot machines and electronic
for China’s outbound tourism market, by most
games will manage to gain traction with the
research. Eduardo Santander, CEO of the European
so-called “dragon babies.”
Travel Commission (ETC), recently estimated
And although the younger generation of Chinese
that almost 10 million Chinese will visit Europe
are seeking more of a personal leisure experience
environment, with Chinese millennials much
in 2015, making for a 128 percent increase in
than their parents, they are still a very distinct
less likely to be interested in a “nightclub” type
Chinese arrivals to Europe in the period 2010-
group from their western counterparts.
venue than their western counterparts, for whom
2015, with shopping the primary motivation.
Chinese millennials are more than twice as likely
lively cafes and bars are key draws.
However, YWS says the younger generation is
to be married than their western counterparts
What remains highly popular is the karaoke-type
moving more towards a mix of seeking a truly
and the survey found that 65 percent are more
entertainment favored across Asia, whether in
personal travel experience and not just the
likely to travel with other family members and/
smaller VIP rooms or in large premises.
frantic accumulation of brand-name products.
or significant others than friends.
Coppola says these types of observations may
“Chinese millennials are much more likely to
YWS says this has a significant influence on the
help integrated resorts tweak their offerings to
consider (and pay for) lodging that is less “just
type of experience they are seeking in a leisure
appeal to this demographic. l
Asia Gaming Briefings | October 2015
July sales RMB 27.1b ($4.2 billion)
-27.3%
China’s central bank has made a pact to bolster cross- border antimoney laundering measures with authorities in Macau, with The People’s Bank of China signing a memorandum of understanding with the Monetary Authority of Macau. Sanford Bernstein warns the pact could create further negative headwinds in the VIP sector by restricting junkets’ ability to move money. AGTech Holdings said it expects significant regulatory progress in China’s lottery market in the second half, which will be a “very positive trend” for the company. In 1H15, AGTech posted a 45.6 percent jump in revenue to HK$101.1 million ($13.2 million).
GREATER CHINA 11
GROSS GAMING REVENUE
TAIWAN
Do political risks outweigh rewards for potential Taiwan casino investors?
Y14 Lottery sales NT$116.1b ($3.6b)
-16%
6m15 Lottery sales $54.7b (Source: MoF)
China’s recent threats to cut the three “mini links” between the mainland and Taiwan’s outlying islands if they legalize casinos highlights the political risks involved for potential investors in the country’s gambling industry.
W
hile most countries across Asia
important in the determination of whether or
pose some degree of political
not established government policies continue
risk, Taiwan is perhaps one of
to be implemented.
the more complex jurisdictions
The practical expression of the importance of
due to its relations with neighbouring China.
public opinion is that laws passed by the legislature
Domestic politics, public opinion and cross-straits
in Taiwan often have a provision which permits
relations may all play a part as the island debates
the government to alter the policy expressed in
moves to allow a casino industry on its outlying
the law based on social conditions in Taiwan. An
islands. Bill Bryson, a senior advisor at Global
example of this is Article 24-1 of the proposed
Market Advisors, outlines some of the risks and
Tourism Casino Administration Act, which provides
mitigating factors.
that a gaming license can be revoked if “there is
1.
Possible change of ruling party: Taiwan is a
any specific situation which adversely affects the
full-fledged democracy, in which all elected
social order, public security, education and other
government positions, including the President,
material public interests, and not canceling the
are directly elected by the people of Taiwan. The
establishment permit and the operation license
current ruling party, the Chinese Nationalist
will impede the maintenance of material public
Party (“KMT”), is generally favorably disposed
interests,” even if the casino is not responsible
towards creating a casino gaming industry and
for the “specific situation.” In other words, if
has a clear majority in the Taiwan legislature.
public opinion turns against the existence of
The current opposition party, the Democratic
casino gaming on Taiwan’s outlying islands,
Progressive Party (“DPP”), is generally not
the government can shut down the industry.
favorably disposed towards casino gaming, but
This element of political risk is somewhat
is less concerned about the establishment of
mitigated by the diversity of opinions in Taiwan.
casino gaming on Kinmen and Matsu. Given the above line-up of political parties, it is theoretically possible for a single election to result
3.
With respect to cross-Strait relations, the main political risk arises from the increasing
Tourist arrivals Jan - July 5,818,823 Mainland China 41.2% of total July arrivals 833,239
+3.35%
+4.1% +3%
PokerStars.com says Taiwan’s Chen-An Lin from Taiwan and Yaxi Zhu from China have joined Team PokerStars Pro. The two additions are popular and successful poker players in Asia, and will help to grow the game in one of the world’s biggest emerging poker markets, it says. Taiwan’s Legislative Yuan wrapped up its regular session for the summer and, despite high hopes, the Tourism Casino Administration Act was not passed. It’s still unclear as to when the bill will next come up for discussion.
integration of the Chinese economy with the
in a fundamental change of the government’s
Taiwan economy, which gives China an increasing
gaming policy. This aspect of political risk has
ability to influence (or attempt to influence)
been reduced in recent years, however, as the
Taiwan government policies. Examples of this
island of Penghu (whose Magistrate is a member
are legion, the most recent being the declaration
precise candidates that the Mainland least wanted
of the DPP) has expressed interest in holding a
by the head of the mainland Chinese Taiwan
to see elected, and the most recent comments
casino gaming referendum and there has been no
Affairs Office that if either Kinmen or Matsu
by the TAO official resulted in a determination
major political opposition to the current draft of
allowed the establishment of casino-based
by both the KMT and DPP to prioritize the casino
the casino gaming law that has been submitted
integrated resorts, mainland China would cut
gaming bill and promote referendums on the
to the legislature.
off the “three mini-links.” These links are the
two islands that have not yet held referendums.
Public Opinion: Given the direct democracy
main avenue for visits by mainland Chinese
The willingness of China to be assertive in its
that exists in Taiwan, the growing political
tourists and the economic threat is real, even
relationship with Taiwan, when combined with
activism of Taiwan’s younger generation, a
if it is not yet obvious that this represents a
the degree to which the Chinese and Taiwanese
vocal religious community (Buddhists and
“bottom line” for the TAO.
economies have become integrated elevates
Presbyterians being the most influential), an
A mitigating factor for this element of political
this political risk to a level which is not typical
unrestrained press, and the very high turnout
risk is that mainland interventions are often met
of other countries. Nowhere is this influence
rate for virtually all elections (85 – 90 percent
with a visceral anti-China reaction from both the
more likely to be felt than in the gaming space,
for presidential and legislative elections) public
public and government officials. Prior efforts by
in which China could literally determine the
opinion is extremely important in the formation
mainland China to influence Taiwan’s presidential
size of the customer market for casinos in the
of government policies in Taiwan. It can also be
elections have resulted in the election of the
offshore islands of Kinmen and Matsu. l
2.
Asia Gaming Briefings | October 2015
GREATER CHINA 12
GROSS GAMING REVENUE
HONG KONG
HKJC posts record year, sees spike in commingling income The Hong Kong Jockey Club, the only legal form of gambling in Hong Kong, said it enjoyed another record year in the 2014/2015 season, with overseas income spiking as a result of the expansion of its commingling program.
T
otal turnover for the financial year grew
The club also marked another major milestone
by 10 percent to HK$191.44 billion (or to
this summer, gaining the backing of the mainland
HK$193.95 billion, up 12.7 percent for
government to help develop horse racing as a sport
the full racing season). The Club’s net
in China, although gambling won’t be allowed.
margin and commission was HK$10.47 billion
In September, the HKJC formed a strategic accord
for the financial year.
with the Chinese Equestrian Association. The
In its annual report, the HKJC said the performance
highlight will be the final leg of the China Horse
was the result of several initiatives focused on
Racing Grand Prix, known as the Hong Kong Jockey
improving the quality of Hong Kong horses
Club Race Day, on Nov. 7th at Jinma Racecourse
and revamping the territory’s race tracks. The
in Wenjiang, about one hour outside Chengdu.
club was founded in 1884 and is the biggest
“Having been invited by our valued partner the
contributor to government coffers.
Chinese Equestrian Association to contribute
Racing turnover for the financial year reached
towards the sustainable development of horse
HK$105.41 billion, up 1.4 percent on 2013/14
racing as a sport in China, we have identified key
and the second time the Club has exceeded the
areas where we can take the existing footprint
HK$100 billion mark.
of speed racing to a new level of performance
During the year, the club extended its commingling
and regulation,” said HKJC CEO Winfried
partners to 11, which helped to boost turnover
Engelbrecht-Bresges.
from HK$137 million in 2013/2014 to HK$2.49
The Club hopes that this cooperation can assist
billion last year.
in the ongoing advancement of China’s horse
On the football betting side, turnover jumped
racing industry towards more international
almost 26 percent to HK$78.25 billion, generating
integration.
HK$5.59 billion in tax payments.
“Through the sharing of our technical acumen
“Given that last year’s high turnover was boosted,
and implementation experience, the Club will
in part, by the World Cup, this continued upward
work closely with the CEA over the next few
trend is highly pleasing and indicates the success
years to enhance all aspects of racing control
of the Club’s efforts to attract customers away
and regulations, with the goal of facilitating
from illegal bookmakers,” it said.
China’s connection to horse racing sport,” said
The Mark Six lottery experienced a slight 1.6
Andrew Harding, Executive Director, Racing
percent decline to HK$7.78 billion.
Authority. “This is a long-term endeavour.” l
Asia Gaming Briefings | October 2015
Total turnover HK$191.44b ($24.7b)
+10%
Racing turnover HK$105.41b
+1.4%
Sports betting $78.25b
+26%
Mark Six HK$7.79b
-1.6%
The Hong Kong Jockey Club promoted Scarlette Leung to the position of executive director of corporate business planning and communications with effect from September 1. The responsibilities of her division include corporate planning, business intelligence, corporate performance measures and market research. Entertainment Gaming Asia said chief accounting officer, Andy Tsui, has tendered his resignation effective from September 30, 2015 to pursue another career opportunity. He will be replaced in the interim by Traci Mangini, EGT’s senior vice president of corporate finance.
NORTH ASIA 14
GROSS GAMING REVENUE
SOUTH KOREA
GGR 2014 (including lottery and racing) KRW19.87 trillion (US$17.64b) Tourism spending Jan - June 6.6 trillion won ($5.5 billion)
South Korea license competition heats up over the next year and free medical insurance.
The competition for a license to operate an integrated resort in South Korea is heating up, with the country seen as potentially one of the most lucrative markets in Asia, given the downturn in Macau and stalled legislation in Japan.
The ministry plans to evaluate business plans submitted by the 34 candidates and draw up a winners’ list in December. The tourism ministry has already issued licenses for the construction of two integrated casino
-10.8%
-47.5%
Paradise Co, whose casinos include the Walker Hill, Jeju Lotte and Paradise Incheon, reported a 17 percent drop in Q2 revenue, while net profit almost halved, as an outbreak of Middle East Respiratory Syndrome hit travel. Revenue was 143 billion won ($122.8 million), while net profit was 12.6 billion won.
resorts on Yeongjongdo Island, Incheon. LOCZ Korea, a Chinese-U.S. consortium of Lippo and Caesars Entertainment, won approval to open a foreigners-only, casino-driven resort by 2018 in Midan City on Yeongjongdo Island. While Paradise, Korea’s largest operator of foreigner-only casinos, is building the Paradise
T
Visitors June/July 1.38 million
+1%
City casino complex near Incheon International
South Korea has given the go-ahead for Korean ships to operate onboard casinos for foreign passengers when sailing from overseas as early as next year. The move is intended to help rejuvenate the local cruise industry, helping it to compete better with foreign rivals.
he Ministry of Culture, Sports and
Airport, along with Japan’s SegaSammy.
Tourism received 34 bids for two
There are 16 foreigner-only casinos in Korea,
licenses that will be offered to construct
posting combined revenue of 1.37 trillion won
a foreigner-only integrated resort.
($1.1 billion) in 2013 by attracting 2.7 million
The bidders include Mohegan Sun, the casino
foreign gamblers. The revenue expanded in 2014
brand of the Native American Mohegan Tribal
and had been projected to exceed 1.5 trillion won
Gaming Authority, the Philippines’ Bloomberry
this year, in line with the growing number of
The criteria for an IR within the RFP include a
Resorts, Kolon Global and Grand Korea Leisure.
inbound tourists.
minimum investment of KRW1,000 billion ($850
While not all have publicly disclosed their
Kolon Global, a trading arm of Kolon Group, has
million) and a minimum foreign investment
interest, other bidders are said to include Galaxy
plans to build a casino in Chuncheon, Gangwon
component of $500 million. The casino floor
Entertainment and NagaCorp, the operator of
Province, while the National Federation of
must be 5 percent or less of total Gross Floor
the NagaWorld casino in Cambodia.
Fisheries Cooperatives wants to construct a
Area and the resort must have at least 1,000
South Korea already has a regulated casino
resort in the Noryangjin Fish Market in Seoul.
5-star hotel rooms.
market and is projected to see strong growth
The ministry has shortlisted the number of
Union Gaming said it expects the government
in visitation from China, although its tourism
potential casino sites to nine.
to issue both of the IR licenses in the area of
market has suffered this year from an outbreak
According to Union Gaming, the 34 proposals
Incheon, where two resorts are already under
in May of Middle East Respiratory Syndrome,
were spread across 10 distinct geographies
construction.
which killed 36 people.
throughout Korea.
It says it also ultimately expects the government
The country is currently going all out to woo
For Incheon there were 16 different RFC proposals
on the southern island of Jeju to issue two
back the all-important Chinese traveller after
across 6 sites. Of the 9 sites that have now been
further licenses taking the number of IRs
MERS led to more than a 40 percent drop in
short-listed, six are within Incheon, one is in
there to three. Genting Singapore is already
the number of tourists visiting South Korea
Busan, and one site is in each of the southeast
moving ahead with plans for a Resorts World
in June. Among the measures introduced was
province of Gyeongnam and the southwest
Jeju resort on the island, which is popular with
a 10 percent tax refund on cosmetic surgery
province of Jeonnam.
honeymooners. l
Asia Gaming Briefings | October 2015
NORTH ASIA 15
GROSS GAMING REVENUE
RUSSIA
PRIMORYE Y16E $410m Y20E $1.7b NAGACORP RUSSIA Y20E EBITDA $220m (Source: Citi)
EXPECTED JUNKET COMMISSIONS PRIMORYE 1.7% (Source: Citi)
TAX RATE: RUB125,000/gaming table and RUB2,500/slot per month
Tigre de Cristal set to sparkle in Russia’s Primorye zone The opening of Summit Ascent Holdings’ Tigre de Cristal resort is finally looming after numerous setbacks and delays for the first casino in the Primorye zone in Russia’s Far East.
T
Russian company Diamond Fortune has announced plans to invest about $900 million dollars in a hotel and entertainment complex in the city of Vladivostok within the next ten years. The complex will include the casino Selena and two hotels and is expected to have an area of 18,000 square meters.
he company said the grand opening
Konstantin Shestakov said the zone had already
will be in late October, with a soft
attracted over $2.2 billion in investments,
opening scheduled for October 8.
which is much more than was initially expected.
The Tigre de Cristal, which is being
The weakness of the Russian ruble is also
built within the Integrated Entertainment
spurring Chinese visitation to the zone, with
Zone of the Primorye region near Vladivostok,
Primorye Governor Vladimir Miklushevskiy
has suffered ongoing setbacks.
saying numbers have increased two fold. He
“While construction is substantially complete,
didn’t give specific figures.
customs delays resulted in slower than expected
At the Russia Gaming Week this summer,
delivery of certain final fit out materials
Nicholas Middleton, vice president of marketing
(e.g. bar fixtures and fittings). In addition,
for The First Gambling Company of the East,
commissioning of HVAC (heating, ventilation
presented the Tigre de Cristal project, saying
and air conditioning) and some other building
the potential for gaming operators in Russia
systems proved to be more time consuming
is “extraordinary” and Primorye is the best
than previously surmised.”
among Russia’s permitted gambling zones.
“The above factors and our commitment to
The First Gambling Company of the East is a
full compliance with Russian commissioning
consortium involving Lawrence Ho’s Melco
procedures and regulations resulted in unforeseen
International Development and Summit
delays in the completion of the final fit out
Ascent, Taiwan-based gaming device maker
works and consequently later than expected
Firich Enterprises, Hong Kong’s Perfect
handover of some key areas of the building
Giant Investments and local partner Elegant
to operations,” it said.
City Group.
Despite the delays, Summit says the operating
“The political headwinds and the economic
customers, as well as an additional 100 million
company has maintained stringent cost
situation is favourable, as Russia and China
in north-eastern Asia,” he noted.
controls and does not expect any material
continue to build their relationship. We have
Other advantages include plans to upgrade
budget overruns.
great positioning, we offer a European-like
Vladivostok’s airport, which was recently bought
Summit Ascent has said in previous filings
experience for Asian customers, as well as
by a consortium including Singapore’s Changi
that the resort would have 25 VIP gaming
millions of Russians who live in Primorye,”
Airport Group, and the fact that a number of
tables, 800 slot machines and 119 hotel rooms.
Middleton added. “Our location [Primorye]
Asian countries have visa-free entry to the
Despite the ongoing delays, the head of
is within a two-and-a-half hour flight from
zone. These include China, Japan, South Korea,
the Primorye Territory tourism department
300 million underserved northern Chinese
Australia and Singapore. l
Crimean leader Sergey Aksyonov says the location of the Crimean gaming zone has finally been determined and will be situated on the coast in an area called the Big Yalta. He told Russian radio recently that the government has investors who are ready to administer this gaming area and “in my opinion, everything is advancing fast.”
Asia Gaming Briefings | October 2015
NORTH ASIA 16
JAPAN
CASINO GGR ESTIMATES GGRE $6b (Source: Fitch based on two major IRs)
PACHINKO ANNUAL REVENUE $153b (Source: Japan Productivity Center)
Pachinko hall operator Dynam Japan has entered into an agreement to acquire Yume Corp, a real estate company, which operates nearly 40 pachinko halls in Japan for HK$9.95 per share, or HK$386.1 million. Yume operates 39 pachinko halls in Japan and is one of the largest pachinko hall operators among about 3,700 in Japan.
Japanese politics scupper casino bill again Japan’s ruling Liberal Democratic Party gave up efforts to push through a bill to legalize casinos in the extended summer session of the parliament, putting operators’ ambitions in indefinite limbo.
T
Universal Entertainment Corp net income of JPY10.17 billion ($81.5 million) for the financial year ended March 31, rose 8.1 percent. Universal, which is made up of 27 subsidiaries and two affiliates, is engaged in the development, manufacture and sale of pachislot and pachinko gaming machines and an investor in a casino resort in the Philippines.
he decision was made to sacrifice
A recent survey by the Tokyo Shimbun found
the Yumeshima integrated resort plan, their
the bill in order to be able to push
65 percent opposing the bill against only 30
waning political influence is having a direct
through other unpopular laws, such
percent in support. About two-thirds of the
impact on its prospects in the city that was
as Legislation for Peace and Security.
Japanese public—along with the ruling coalition
seen as the frontrunner.
Passage of the integrated resort bill in the
Komeito Party—fear that domestic casinos will
Okinawa has also pulled itself out of the running
current session had been looking increasingly
lead to higher rates of gambling addiction and of
as a result of political changes, leaving Yokohama
unlikely, as the political power of some of the
crime, and will also be a bad cultural influence
city as the clear frontrunner should the bill be
main backers of legalizing casinos in Japan
on Japanese children.
passed at a national level.
waned, including that of Prime Minister
Also, changes in regional politics have resulted
The bill would set the broad framework for
Shinzo Abe.
in the fall from grace of some of the bill’s most
what is expected to rapidly become the world’s
No timeframe was given for when the legislation
vocal proponents. In May, Osaka Mayor Toru
second-biggest casino market.
may be aired again.
Hashimoto suffered a humiliating defeat when
Most of the major casino operators, as well
Shinzo has seen his popularity fall amidst his
his plan to merge Osaka Prefecture and Osaka
as smaller regional players in Asia, have all
efforts to push through the deeply unpopular
City was rejected in a popular referendum.
announced an interest in investing there. Many
security laws. As a result, he was unwilling
Hashimoto says that he will retire from politics
had hoped to have the legislation in place in
to lose further political capital in seeking to
later this year.
time to open the first resort to coincide with
further another law, which has failed to garner
While Toru Hashimoto and his ally Osaka
Tokyo hosting the Olympic Games in 2020.
popular support.
Governor Ichiro Matsui remain committed to
That timeframe now looks impossible. l
Asia Gaming Briefings | October 2015
SOUTH EAST ASIA 17
MALAYSIA
Genting gambles on growth from premium mass player As VIP revenue from China’s high rollers continues to slump, Malaysia’s Genting Group is seeking to carve a niche for itself by targeting the more profitable premium mass segment across its Asian properties.
T
he company owns Resorts World Genting
Among the new developments are the Sky Plaza,
in its home base, Resorts World Sentosa
a lower building located below the yet-to-be
in Singapore, Resorts World Manila in the
constructed Towers 3 and 4 -- two five-star hotels.
Philippines, and is slated to open Resorts
“Sky Plaza will be more premium-mass focused,
GROSS GAMING REVENUE (Source: Morgan Stanley)
Y14
Y15E Y16E
Genting Malaysia 2Q15 revenue RM1.98b ($468.6m)
$1.88 b
$2.04b
$2.42b
+4%
RGB International Bhd is still interested in expanding in Timor-Leste (East Timor) despite suspending plans for an acquisition in late July due to delays in license allocation. The company had planned to buy a 30 percent stake in Timor Holding Ltd, which operates electronic gambling machines.
World Jeju in South Korea from 2017 onwards.
offering the right mix to reach out to that crowd,”
It also has resorts in the U.K., and the Bahamas
said a second analyst, adding that Genting’s recent
and has broken ground on a major property in
announcement that it has hired data-mining
Las Vegas.
company the Rainmaker Group was designed
The conglomerate has aggressively embarked
to help it achieve that goal.
on a slew of facelifts or new projects, such as
Rainmaker will assist the company in data mining
launching new hotels and gaming floors across
for premium mass gamblers. It will also help the
various properties, in a move to woo the premium
company better target and optimize revenue from
mass gambler.
that segment of the market.
Its flagship property, tucked away in the Genting
Industry watchers said switching focus to
Highlands about an hour’s drive from the Malaysian
premium mass will also help expand RWG’s core
capital Kuala Lumpur, is casting its net wider to
earnings, or adjusted earnings before interest,
capture that particular segment.
tax, depreciation and amortization (EBITDA).
Resorts World Genting (RWG), Malaysia’s one and
“Every 10 percentage points of share of gross
only legal gaming resort, has long been established
gaming revenue (GGR) migrated from VIP to
in the grind mass market, with minimum bets
premium mass, will raise Resorts World Genting’s
of between RM100 (US$26) and RM300, as well
EBITDA margin by 3.5 percentage points, or group
as the VIP market with bets of at least RM1,000.
EBITDA margin by 2.5 percentage points, boosting
That has left the premium mass segment, whose
core net profit by more than RM150 million per
minimum bets are below RM500, untapped.
annum,” the second analyst said.
marketing organisation to adjust to this change,”
Industry watchers said RWG’s current RM5 billion
Over at its neighboring site in Singapore, Resorts
the company said when announcing Q1 results.
mega-renovation project, announced in December
World Sentosa (RWS), is also tightening its grip
Meanwhile, Resorts World Manila in the Philippines
2013, is geared toward premium mass.
on the premium mass players.
is also seen as well-positioned for the premium
Currently, as much as 80 percent of the rooms
The GGR split between VIP and mass market for
mass. It has targeted the segment for many years,
at the hilltop resort are under the three-star
RWS is about 50-50 percent. Mass market GGR
and the GGR split among VIP, premium mass
category. The group plans to increase its five-star
is largely driven by Singaporeans and VIP GGR
and grind mass is 25-25-50 percent, according
rooms to one third of total room supply by 2020,
by Chinese.
to industry sources.
when the project nears completion.
In Q1, Genting’s adjusted EBITDA fell 43 percent
Its premium mass clientele mainly comes from
An analyst with a Malaysian investment house
on the year to S$228 million ($172.85 million),
South Korea, with some from Hong Kong and China.
said the move is an example of RWG seeking to
below an average estimate of S$322 million in a
“RWM is able to remain profitable because it is
increase the proportion of rooms allocated to
Reuters survey of five analysts.
more of a casino destination for the premium mass
VIPs and premium mass.
In May, the company opened a new 557-room
and mass markets,” Maybank analysts wrote in a
“This will expand yields per customer over the
hotel in the Jurong district of Singapore, designed
recent report. According to their analysis, about
long run, as the availability of better quality
to appeal more to the mass traveller.
51 percent of gross gaming revenue (GGR) comes
rooms attracts guests with a higher propensity
“Our premium gaming business continues to
from mass market tables and slot machines.
to spend. This is done without compromising on
come under stress due to regional environmental
The property is also undergoing a facelift, with
the bread-and-butter mass market segment,”
factors. We do not expect any respite in the medium
Phase 2 and Phase 3 expansions, expected to be
the analyst said.
term, and are restructuring our operational and
completed by 2017. l
Genting Malaysia’s GENM Capital unit sold MYR2.40 billion ($566.1 million) in notes as part of the company’s Medium-Term Notes Program to finance the revamp of its properties in the Genting Highlands. The notes will be issued in two tranches of MYR1.1 billion and MYR1.3 billion with a tenure of issue of 5 years and 10 years, respectively.
Asia Gaming Briefings | October 2015
SOUTH EAST ASIA 18
PHILIPPINES
Philippine revenue still rising,despite recent hiccups, analysts say The Philippines, tipped at the beginning of the year to be the region’s best-performing gambling market, is still likely to outperform its peers despite heavy second-quarter losses among operators, slumping stocks and ongoing project delays, analysts say.
M
anila’s Entertainment City gaming
suspension of 100 workers.
“The VIP gamblers in the Philippines are quite
hub had been expected to be a key
Despite the recent string of negative news,
diversified. Yes, some of them are from China,
beneficiary from the VIP exodus
analysts remain upbeat. They say underlying
but the majority are split among the locals, South
from Macau, propelled by the
revenue growth remains strong and maintain
Koreans, and those from Southeast Asia such
opening of Melco Crown Entertainment’s City
that the market will still outperform others
as Singapore and Malaysia,” an analyst who
of Dreams, Manila.
in the region.
tracks the country’s gaming industry told AGB.
However, losses across the industry mounted
Part of the reason for the optimism is the more
There are concerns the Chinese crackdown on
in Q2, with JP Morgan predicting in a June
diverse gambling base, which includes locals
corruption will hamper collection of receivables
report that profit across the sector would be
and a strong Philippine economy, with Gross
from Chinese gamblers, but so far the issue is
down 56 percent this year. Philippine gaming
Domestic Product Growth rising to 5.6 percent
still well managed by the operators, he said.
stocks in the year to June were the world’s
in 2Q from 5 percent in 1Q15, despite external
Tourist arrivals in the Philippines increased 8.2
worst-performing, while COD announced the
weakness.
percent to 2.23 million in the first five months
Asia Gaming Briefings | October 2015
SOUTH EAST ASIA 19 of the year, with South Korea making up 24.5
The casino is temporarily trimming about
percent of the total, followed by the U.S. and
100 staff. The suspended workers account for
Japan, according to government data. China
about two percent of the integrated resort’s
came in fourth with a 7.1 percent share.
workforce, and are mainly in gaming-related
The Philippines’ gaming revenue is projected
sectors, reports said.
to hit between $2.8 billion and $3 billion this
“COD Manila is expected to go into the red
year, up at least 27 percent from 2014, as more
this year as it ramps up operations. Its VIP
foreign gamblers visit the country, regulator
business only began in May, and there is
Philippine Amusement Gaming Corp (Pagcor)
only so much it could do in the first year,”
has said.
the analyst said.
“The strong momentum this year comes from
DBP-Daiwa, however, said in a note that COD
new market entrant -- City of Dreams Manila,”
Manila has been moving aggressively in the
the analyst said, forecasting revenue of the top
second quarter to control costs. “Expenses
three operators to grow to 79.3 billion pesos ($1.7
declined by 7 percent quarter-on-quarter due
billion) in 2015, from 2014’s 58.9 billion pesos.
to much lower advertising and marketing costs,
The $1.3 billion COD Manila, which opened
which comprised around 3 percent of total
in February, is a joint venture between the
expenses versus 19 percent of total expenses
Philippines’ richest man Henry Sy, Australian
in the first quarter of 2015,” it said.
billionaire James Packer and Lawrence Ho, son
COD Manila wasn’t the only one in the red.
of Macau casino mogul Stanley Ho. It marks
Manila-listed Bloomberry Resorts, operator
Melco Crown’s first bet outside the world’s
of the Solaire casino, reported an after-tax
biggest gaming hub Macau. The Manila franchise
net loss of 786.6 million pesos in the April-to-
boasts a DreamWorks theme park, two night
June period, on six-billion-pesos in revenue.
clubs and six hotel towers.
The company attributed the loss to increased
The net loss of COD Manila widened to 1.82
costs for the opening of a new wing for the
billion pesos in the second quarter.
Manila property, as well as investments in a
GROSS GAMING REVENUE Y14 $2.5b
+16%
H1E $1.4b
+16%
Y15E $3b
+20%
Y18E $6b (Source: Pagcor)
GDP 2Q15 GDP 1Q15
+5.6% +5%
A Filipino Senator has requested the Senate look into reports that City of Dreams Manila would suspend around 100 workers to cut costs. Miriam DefensorSantiago filed a resolution over concerns the casino operator might be setting a “precedent for other employers and business owners to suspend workers when convenient, with utter disregard for these workers’ rights.” NMi, a gaming laboratory, has been awarded accreditation by The Philippine Amusement and Gaming Corporation to perform online and land-based games testing. “This accreditation by PAGCOR follows the recent appointment of NMi by First Cagayan. With NMi now able to test for both jurisdictions in the Philippines this forms part of NMi’s roadmap to commitment in Asia,” the company said.
Asia Gaming Briefings | October 2015
SOUTH EAST ASIA 20 casino in South Korea -- Bloomberry’s first overseas foray.
OPERATORS
reported 15Q2 net revenues declined 21 percent to P5.5 billion ($118 million). However, it expects
CEO Enrique Razon remains upbeat and says
its gaming base to hit the 3 million mark this
the investments would pay off. “Well into our
year, from a membership of 2.7 million at the
SOLAIRE RESORT & CASINO
end of the first half.
Solaire, owned by Bloomberry Resorts, is a
expand its resort, developing Phases 2 and 3
which disclosed gaming accounts for nearly 95
16-hectare gaming and integrated resort complex
and kicking off Phase 4.
percent of revenues.
along Asean Avenue in Parañaque City and was
The expansion will cover a two-hectare area
“That this is happening despite new competition
the first casino to operate within Entertainment
currently used as a carpark. This will include a four-
gives credence to our conviction that the
City. In November, 2014, the company opened
star international branded hotel offering 1,000
Philippines is a prime market for gaming for
its SkyTower, more than doubling the size of
rooms, sitting atop a full-service shopping mall
both local and foreign players. We’re on the
the resort, increasing the room count by 64
that will link Resorts World Manila to Terminal
right track.”
percent to 800.
3 of the Ninoy Aquino International Airport.
Solaire is one of four planned billion-dollar
Bay Tower of Solaire consists of a casino with an
The company has delayed the opening of a
casinos at a seafront enclave in Manila aimed
aggregate gaming floor area of approximately
second Manila resort, the $1.1-billion Resorts
at turning the Philippines into a gaming hub
18,500 square meters (including approximately
World Bayshore along Manila Bay to 2018.
alongside Macau and Las Vegas.
6,000 square meters of exclusive VIP gaming
Pagcor has approved new gaming capacity of
According to forecasts from COL Financial,
areas), with approximately 1,400 slot machines,
420 gaming tables and 4,148 gaming machines
Bloomberry will post a smaller income of
295 gaming tables and 88 electronic table
at the resort. At end-2013, Resorts World Manila
1.7 billion pesos this year, from last year’s 4
games. Bay Tower has 488 hotel rooms and 15
housed 287 gaming tables for the VIP and mass
billion pesos.
specialty restaurants.
markets, 1,822 slot machines and 210 electronic
Travellers International Hotel Group, operator
On November 22, 2014, Bloomberry opened the
table games.
of Resorts World Manila, reported a 46 percent
Sky Tower, which was previously referred to as
year-on-year decline in net profit at 622.3
Phase 1A development of Solaire. Contiguous to
million pesos for the three months ending June.
the existing Solaire Resort and Casino, the Sky
“RWM’s second-quarter VIP volume grew 16.8
tower consist of a 312 all-suite hotel, additional
percent quarter-on-quarter. This is better than
ten VIP gaming salons with 66 gaming tables and
Tiger Resorts and Entertainment, the Philippine
that of Macau and Singapore, which were down
223 slot machines. It also includes a certified
unit of Japan’s Universal Entertainment, held
both annually and sequentially. With the same
1,760-seat lyric theatre.
a topping out ceremony in July for part of its
second year, Solaire continues to experience steady and continuous growth especially in all gaming segments,” he said in a statement,
The company is pushing ahead with plans to
MANILA BAY RESORTS
strong second-quarter VIP growth at Bloomberry,
Manila Bay Resorts project and said it had been
it suggests VIP volume in the Philippines is
granted an extension to its deadline to complete
CITY OF DREAMS
the project to the end of December 2016.
Belle Corp and Melco Crown held the soft opening of
to up investment to potentially as much as $4
in the second quarter could be the construction
the $1.3 billion City of Dreams casino resort project
billion. It plans to raise $600 million through a
of NAIA expressway in front of its integrated
in December and the grand opening on Feb. 2.
bond sale to help finance the complex.
resort that has caused a traffic deadlock. This
As of June 30, 2015, City of Dreams Manila has
The company recently appointed Steve
would also explain why the grind market was
around 272 gaming tables, 1,588 slot machines
Wolstenholme as chief operating officer.
similarly down for RWM, the analyst added.
and 130 electronic table games in operation. The
Wolstenholme has previously served as president
Meanwhile, the casino project of Japan’s
integrated resort features three entertainment
and COO of Grand Sierra Resort and Casino in
Universal Entertainment, which has been
venues, namely: DreamPlay by DreamWorks,
Reno, Nevada.
beset by regulatory problems and delays, may
Manila’s first branded Family Entertainment
Once fully operational, Manila Bay Resorts would
now be back on track. Pagcor has granted an
Center; Centerplay, a live performance central
feature two luxury hotels, a 30,000-square-
extension to end 2016 in return for increased
lounge inside the casino; and Chaos and Pangaea
meter casino floor with 3,000 slot machines
investment in the project, which may now cost
Ultra-Lounge, two night clubs situated within the
and 500 table games, as well as a number of
as much as $4 billion.
Fortune Egg, an architecturally-unique dome-like
dining, leisure, and entertainment options. It
Pagcor is unfazed with the industry’s sluggish
structure accented with creative exterior lighting.
will include an indoor man-made beach club
performance, attributing the companies’ losses
City of Dreams Manila includes an approximately
covered by a huge glass dome, high-end and
to expansion expenses. It said gaming revenue
260-room Crown Towers hotels, a 365-room hotel
casual dining restaurants, upscale retail shops,
is still growing.
managed by Hyatt International Corporation
trade halls and cinemas.
When Tiger’s project and the $1.1 billion first
and Asia’s first Nobu Hotel with 321 rooms.
The group recently overcame a key regulatory
locally driven and not heavily dependent on foreign visitors,” said a second analyst. One likely reason for RWM’s sub-par performance
In return for the delay, the company also agreed
phase of Resorts World Bayshore, co-developed
hurdle by teaming with local businessman
by Alliance Global Group and Genting Hong
Antonio O. Cojuangco and his All Seasons Hotels
Kong, operate in full swing in 2018, Pagcor said total gaming revenue will hit $6 billion. That would be about three times 2014’s $2.2 billion revenue.
Asia Gaming Briefings | October 2015
RESORTS WORLD MANILA
Travellers International Hotel Group, a joint venture between Genting Hong Kong and Alliance,
& Resorts Corp. to comply with Philippine regulations on foreign land ownership. l
SOUTH EAST ASIA 21
GROSS GAMING REVENUE
SINGAPORE
Crumbling currencies and weak economies hit Singapore GGR Singapore’s steady but sure gambling revenue is under pressure as regional currencies depreciate against the island-state’s dollar and the local and Chinese economies weaken.
S
ome analysts are now revising down their
million), down 3 percent from previous estimates,
forecasts for Singapore GGR this year,
while its EBITDA estimate for 15Q4 has also been
with Genting Singapore seen as faring
lowered 3 percent to SGD$266 million.
worst and losing share to Las Vegas Sands’
Genting has stepped up its marketing efforts to
Marina Bay Sands.
attract the mass market customer, in particular
“After being resilient for the past four years,
from Malaysia, however the weakness in the
Singapore gaming revenues are finally facing
currency is likely to offset those efforts in the
several issues. We expect 2015/16 Singapore
short term.
GGR to decline 21 percent and 6 percent YoY to
Union Gaming said the resort appears to have
US$4.7bn and US$4.5bn respectively, versus our
lost market share in the mass segment to Marina
initial GGR estimate of US$5.2bn and US$5.5bn,”
Bay Sands, despite opening a new hotel targeted
Morgan Stanley said in a recent note.
at the sector earlier this year.
It said the downgrade was due in part to lowered
In 1H15 MBS mass market grew in the mid to
expectations for growth in Singapore, where the
high single digits SGD terms vs. flat to low single
economy is now expected to grow 2.3 percent in
digits at RWS.
2015 and 2.8 in 2016 vs previous estimates of 3.2
Morgan Stanley expects VIP revenue to decline
percent and 3.4 percent respectively.
by 43 percent this year at Genting Singapore,
The depreciation of the Malaysian ringgit and
compared with a drop of 24 percent at MBS. It
Indonesian rupiah currencies against the Singapore
sees mass falling 12 percent at Genting, compared
dollar will negatively impact both VIP and mass
with 6 percent at MBS.
market trends.
As a result, Genting Singapore’s market share
Morgan Stanley said the market overall will see a
will drop from 48 percent in 2014 to 43 percent
VIP revenue decline of 34 percent in 2015, while
this year, before recovering slightly to 45 percent
mass is relatively robust, at least compared to
next. While MBS gains from 52 percent in 2014
Macau, with a decline of 8 percent YOY.
to 57 percent this year.
Union Gaming analyst Grant Govertsen said he is lowering his 15Q3 and forward estimates for Genting Singapore in the face of continued currency headwinds for the two core customer geographies, Indonesia and Malaysia. Over the first two months of the third quarter, the Malaysian ringgit and Indonesian rupiah depreciated by more than 10 percent and 4 percent, respectively, on a year-on-year basis relative to the Singapore dollar. “These currency headwinds will negatively impact both VIP and mass market trends in the quarter, which will only be partially offset by a nearly 10 percent appreciation in the value of the Chinese Yuan Renminbi (CNY) relative to the SGD over the same time period, although the CNY strength will largely be applicable to only the VIP segment.” UG has lowered its 15Q3 EBITDA estimate for Genting Singapore to SG$272 million ($192.6
OPERATORS GENTING SINGAPORE’S RESORTS WORLD SENTOSA
Spans 49 hectares and features six hotels, a convention centre, the region’s only Universal Studios theme park, one of the world’s largest aquariums, as well as restaurants and spas. The casino has more than 500 tables and more than 2,400 slots. The company reported Q2 casino revenue fell 28 percent to $428.3 million. Adjusted EBITDA declined 6 percent to $296.4 million.
Y14 $6.05 Y15E $4.7b
-21%
Y16E $4.5b
-6%
(Source: Morgan Stanley)
VIP TAX 5% MASS TAX 15% SINGAPORE POOLS, SINGAPORE TURF CLUB GGR FIVE-YEAR AVERAGE $2.39b International tourist arrivals fell 3.4 percent in the first six months of 2015 to 7,258,694, however visitation from China improved, gaining 8.9 percent to 948,987. Tourists from Singapore’s core South East Asian markets dropped 9.3 percent. The outlook for Singapore’s gaming industry continues to be stable despite declining visitor arrivals, lower win rates and a shrinking VIP business, Fitch Ratings said, noting the two integrated resorts continue to generate EBITDA margins above 30 percent.
LAS VEGAS SANDS’ MARINA BAY SANDS
Features approximately 2,600 rooms and suites located in three 55-story hotel towers. Atop the three towers is the Sands SkyPark, an extensive outdoor recreation area with a 150-meter infinity swimming pool and several dining options. The integrated resort offers approximately 160,000 square feet of gaming space with approximately 600 table games and 2,500 slot machines. In Q2, adjusted property EBITDA on a constant currency basis dropped 6.4 percent to $363.3 million. Casino revenue was down 12.5 percent to $565.7 million. l
Asia Gaming Briefings | October 2015
INDOCHINA 22
Y14 DONACO REVENUE Aristo International FY15 normalized GGR $68.4m, +21%
VIETNAM
Chow Tai Fook takes reins to kick start Nam Hoi An resort
+33%
Total net revenue $30.8m, +51%
+67%
Casino visitors 90,663, +28%
+43%
ARISTO JULY NET REVENUE $1.8m, +55% FROM FY15 AVERAGE
VISITATION
One of Vietnam’s largest casino projects has a new lead investor. Hong Kong conglomerate Chow Tai Fook has increased its stake in the long-delayed Nam Hoi An Casino Resort, buying up former lead shareholder VinaLand’s stake.
V
Tourist arrivals to end-Aug 5.06m
-7.5%
Premier League football club Manchester United has signed a partnership agreement with Asian gambling and entertainment operator Donaco International Limited. The company is to become Manchester United’s first official resort partner in Cambodia, Laos, Myanmar, South Korea, and Thailand.
inaLand has reduced its stake in the
keen to add a casino, a five-star hotel, and a
casino from 80 percent to 22.55 percent
marina. The golf course is due to begin operations
and will become a strategic partner.
in early 2016, it said.
Chow Tai Fook, well known for its chain
Laguna Lang Co, operator of a luxury resort
of jewellry stores, didn’t disclose how much it
located within Thua Thien-Hue province, has
spent on the investment.
also said its new integrated resort complex may
The 150-acre project, near the popular tourist
include a gaming facility.
town of Hoi An, has been stalled since 2012 after
The group, which issued a Request for Concepts
former partner Genting Bhd pulled out.
in May, extended the deadline in July due to
Local media has reported that work on Phase
significant foreign investor interest. The new
One of the project is about to start early next
deadline was set for 15 September 2015.
year. The first phase is expected to include luxury
The resort recently entered Phase II of its master
apartments and villas, a golf course, an amusement
plan development: a condominium complex and
park, etc. It was valued at $500 million.
additional residential hill villas overlooking the
Meanwhile, other planned developments across
East Sea. Phase I comprised a 57-villa Banyan
the country are also progressing, even though
Tree resort, luxury residences, golf course and
the country’s new gambling legislation has not
other amenities. Phase IIA will include additional
yet been finalized.
luxury accommodations and the possible addition
Vingroup officially kicked off phase one of
of a gaming facility.
construction on July 12 of an entertainment,
“Vietnam is experiencing an exciting time in the
housing and eco-park on Vu Yen Island in the
gaming industry, with the potential loosening
northern province of Hai Phong. Construction
of the country’s gaming law expecting to attract
legalize online gambling and that may allow local
plans cover the entire Vu Yen Island, which is
more foreign investments. We believe that this
Vietnamese to enter the country’s casinos in a
spread over 872 hectares in the districts of Thuy
extension is necessary in order to allow parties
bid to stop an outflow of funds from residents
Nguyen and Hai An and crisscrossed by the Ruot
time to fine-tune their concepts as well as
flocking to neighbouring Cambodia to gamble.
Lon, Bach Dang and Cam rivers.
encourage more investors to participate in this
Local access is expected to be allowed on a trial
State-run media put the value of the project at
RFC process,” Andrew Klebanow, a partner at
basis in one or more of the country’s large
about 19 trillion dong ($870 million). The five-
Global Market Advisors, the firm conducting
integrated resorts, such as the Ho Tram Resort
year project will include villas, a golf course, an
the gaming market assessment for the games
Casino, formerly known as the Grand Ho Tram.
entertainment park, an eco-park and a cable car
facility, said at the time of the deadline extension.
However, there is still no clear timeframe for
service, while city authorities are also apparently
The government is mulling legislation that may
the legislation. l
Asia Gaming Briefings | October 2015
Six companies have been fined a total of VND535 million (US$23,732) for sending spam messages promoting gambling and providing illegal digital services. The fines were handed out by the Ministry of Information and Communications’ inspectorate agency since the beginning of August.
INDOCHINA 23
NAGACORP
CAMBODIA
NagaWorld - a bright light in dark times for Asia’s casino market As casinos across Asia report half-year results, Naga Corp, the operator of Cambodia’s NagaWorld, has emerged again as a bright spot in Asia’s casino industry.
I
1H15 GGR $255.4 million
+42%
H1 tax revenue $12m
+20%
Donaco International has signed an agreement with Heng Sheng Group, a Macau VIP gaming promoter, to bring its VIP players to the Star Vegas Resort & Club in Cambodia starting this year. Under the three year deal, Heng Sheng Group will bring its VIP players from Asia to a new dedicated gaming facility, to open in September, at the Star Vegas.
n the first half of this year, Naga reported
increasing investment from Asia, which has
revenue of $265 million, up 39 percent year-
resulted in more Asian expats coming to live
on-year and above analysts’ estimates. The
and work in the capital.
company’s net profit for the six-month
The monopoly that the casino has in the capital,
period ended June amounted to $101 million, up
under which no casino can operate within a 200
49 percent from the prior-year period.
kilometre radius for at least another 20 years, has
NagaCorp cited continued visitor growth from
made it the only real casino in the country worth
gaming-centric countries, Vietnam, China and
gambling in - the alternatives are ramshackle
South Korea, as one of the drivers of growth.
operations along border towns that offer limited
“The continued downturn in the gaming sector
entertainment and accommodation.
in Macau offers opportunities for the group to
Unlike operators in Macau and the region that
further penetrate the regional and Chinese
are trying to diversify their business mix to offer
gaming market.”
more non-gaming facilities to attract mass market
“The group offers better commercial terms
customers, Naga’s gaming and non-gaming
by VIPs in Asean.
to junket operators and agents as a result of
revenue mix has not changed significantly,
“Also Naga is coming off of a low base for VIP
NagaWorld’s low-cost structure,” NagaCorp said
said Govertsen.
so the numbers look good,” he said in an email.
in a recent filing to the stock exchange.
“Although I suspect you’ll see a larger shift once
As part of Mainland China’s anti-corruption
NagaCorp has signed additional North Asian junkets
NagaCity Walk and Naga2 open (with notably
campaign to root out money laundering and lavish
who are seeking to diversify their operations to
more non-gaming revenue than before).”
spending among the country’s elite, which has
other parts of Asia during such testing times.
Chinese tourists have been a key market the
driven down revenues in Macau for 15 straight
Such operators include SunCity Group and Jimei
Cambodian government has been keen to attract
months now, China has been taking a hardline
International, one of Macau’s top-five junkets.
through ramping up its marketing strategies and
with foreign operators luring its gamblers who are
Jimei reported net profit of HK$52.8 million
establishing more routes to China.
looking to avoid the former Portuguese colony.
($6.8 million) for the six months ended 30 June,
Chinese visitation to Cambodia recorded a 22
Ting says because NagaWorld is not targeting top
compared to a loss of HK$8.3 million in the same
percent increase in the first half of 2015.
tier Chinese players - more the lower-end ones
months the year before. Jimei attributed the profit
Citi Research said a risk for NagaWorld is “a
- their business remains less prone to volatility
in the period to its newly established business in
sustained slowdown in Macau gaming [which]
and risk, enabling the few relationships they have
Australia’s Crown Perth casino and NagaWorld.
would also threaten Naga’s strategy of targeting
with Chinese junkets to be more sustainable.
Compared to other operators - such as Genting
the “Poor Man’s VIP” as Macau junkets would
Brokerage firm Nomura cited NagaCorp’s
Malaysia - who have long-established themselves
be forced to act more competitively with regards
management as indicating that more than 60
in attracting Chinese customers, NagaCorp is
to all segments of the VIP market.”
percent of the casino’s customers are Cambodians
still in the early days, says Union Gaming analyst
But some analysts believe much of the casino’s
holding foreign passports.
Grant Govertsen.
business is driven by non-Chinese customers,
“Management is not concerned about mainland
“That said, [Naga] are clearly showing positive
acting as a buffer against potential shocks to the
China’s anti-corruption campaign. It believes
growth as it relates to Chinese customers, which
Chinese market.
their VIP clients, who gamble much less than
is a rarity these days relative to places like Macau,
Michael Ting, an analyst at CIMB said NagaCorp’s
the typical Macau VIPs, are just upper-middle
Singapore, and Korea.”
strength is that it does not need to rely on Chinese
class people who are not the target of China’s
Phnom Penh’s economic growth has seen
tourists as a lot of its revenue growth is driven
anti-graft campaign,” said Nomura. l
Kings Knight Capital, which is backed by a Taiwan businessman with experience in Macau’s VIP sector, has offered to buy Australia’s Lasseters Corp., with the aim of finding new business opportunities for the company in Cambodia.
Asia Gaming Briefings | October 2015
SOUTH ASIA 24
INDIA
Supreme Court fails to deal poker winning hand Poker is booming in India, though regulatory uncertainty, a lack of infrastructure and high taxes, are keeping the market from achieving its full potential, experts say.
Asia Gaming Briefings | October 2015
A
ccording to Peter Abraham, the brain
returned to India,” said Abraham, who started
behind the India Poker Championship,
out as a player. He is also the editor of Gutshot
one of the country’s premier poker
magazine, which focuses on poker.
tournaments, the poker business
He estimates the market has not even reached
has seen “exponential growth” over the last
5 percent of its true potential.
five years.
However, at present the game is operating in
The IPC will be holding its main event in
a grey zone with a lack of legal clarity.
December this year, after a gap last year due to
“It really affects us that the legality of the game
issues over revenue sharing with the casinos,
is not clear as there is always a risk of getting
which have now been resolved. About 150
busted while playing a game for example in
attendees are expected, more than double when
any card room in Delhi or Bombay,” said one
the event started out in 2010 in the offshore
professional poker player, who asked not to
casinos of Panjim, Goa.
be named.
Typically an IPC lasts 4-5 days featuring
Although gambling is mostly banned in India,
tournaments with buy-ins ranging from INR
with the exception of casinos in Goa and Sikkim,
5000 – 30000 ($76 - $457).
some states have recognized poker as a game
“I don’t see a slowdown happening anytime
of skill, which is legal.
soon. It is the younger generation which is
Playing poker has already been made legal in
of course driving this growth as is the case
Karnataka - which saw a legal battle over the
anywhere in the world. It started here with
issue – and West Bengal where the state law
players who picked up the game abroad and
was re-interpreted. But so far there has not
then spread it among their friends when they
been an overarching decision. A ruling from
SOUTH ASIA 25 India’s Supreme Court on whether rummy can
just three months to reach a “critical mass”
be called a game of skill, which was expected to
of subscribers, according to its owner Rajat
extend to poker, failed to provide the regulatory
Agarwal, who also runs the popular site called
clarity many had hoped for.
PokerGuru, which contains news about activities
“Although, contrary to expectations, the
related to poker in the country. Another,
Supreme Court order has not brought conclusive
Adda 52, one of the leading online poker sites
clarity on the legality of playing skill games
in India has close to 600,000 subscribers,
for stakes, there have not been any negative
according to Rajat.
remarks in the order and therefore online
Other factors holding back growth in the poker
rummy companies should be able to continue
sector include a lack of infrastructure, tax
operations without roadblocks,” said Jay Sayta,
issues and concerns about money laundering.
a lawyer and operator of the Gambling Laws
One expert said this concern comes mostly
in India website.
from the fact the sites are operating in a grey
However, the decision won’t apply to the online
zone, which makes it difficult for winners to
sphere, which will remain in legal limbo. The
access their money through the legitimate
Supreme Court on August 12th clarified that
routes and for sites to conduct transparent
petitions made by online companies aren’t
financial transactions.
part of the remit of its current hearing.
Abraham said there is a 30 percent Tax Deducted
The Sikkim government recently took a decision
at Source levied on winnings and still limited
to legalize online gambling which, according to
venues for players. Earnings exceeding INR
Albert Climent, managing founder at BlueSea
10,000 are subject to the tax.
Gaming, was a “significant” step in improving
IPC has larger ambitions in the future. “Our
the legal uncertainty surrounding online poker
immediate goal is to compete with a poker
sites and could result in a spillover effect into
destination like Macau which is the Asian
other states.
hotspot for gaming. The Macau Poker Cup which
“Only the states can do something about
is the region’s big ticket tournament event
legislating online gambling. Sikkim has already
draws close to 1000 players for its signature
made online poker legal although it has not
Red Dragon event. Together with our host the
included rummy. Nagaland is planning to do
DR Poker room, the IPC wants to make Goa and
the same,” said Jay Sayta, an expert in Indian
therefore India a viable stop on the regional
gambling law.
poker circuit for the players based in this part
The sector is certainly seeing a proliferation
of the world,” he added. l
GROSS GAMING REVENUE GGR $60b
ILLEGAL BETTING ($40b) 66% (Source: KPMG)
Delta Corp. 2Q15 Gaming revenue $10.6m
+37%
Goa’s government has extended the deadline for shifting offshore casinos from River Mandovi to 31st March, 2016 after failing to find a feasible alternative location. Four potential sites had been mooted -- the Rivers Chapora, Sal, Zuari and Aguada Bay.
of new poker websites. It took Spartan Poker,
Bombay’s High Court is seeking clarification from the Maharashtra-state government as to whether they plan to enact a law legalizing gambling. Gambling law expert, Jay Sayta, has filed public interest litigation after unearthing a 40-year old law that apparently made casino gambling legal in the state.
Asia Gaming Briefings | October 2015
SPECIAL FOCUS 26
Operators, junkets and punters look to Europe for new opportunities Europe could be the beneficiary of Macau’s ongoing struggles as casino and junket operators eye investment opportunities on the continent in a process which has already seen Australia, Cambodia and Vietnam dramatically grow their gaming sectors.
“T
he opportunity and the timing is there
there are over 1,000 casinos in the European Casino
for the adventurous Asian casino
Association. Many are very small by comparison to Asia
owner or Asian junket looking for
but they are in locations and settings that are ideal for
new experiences,” said Steve Karoul,
creating unique experiences,” he said.
president and CEO of Euro-Asia Consulting, who has
These operators and junkets should be buoyed by the
previously held senior roles at major casinos in Turkey
increased willingness of Chinese tourists to travel
and South Africa. Karoul told AGB that those casinos
further afield. The growth of Chinese outbound tourism
were aggressive at targeting both Chinese and Asian
is hardly a new revelation, but it is the scale of growth
gamblers to visit and play at their destinations. “It was
and the investment that has followed in Europe which
not easy but we managed to develop some creative and
is beginning to draw attention.
attractive marketing programs to enable us to entice
In January, the Cypriot government announced that
players to travel away from Asia,” he added.
13 casino operators had responded to an invitation
Karoul currently works with both Asian casino owners
to express an interest in establishing and running a
and junket operators interested in new opportunities
casino resort on the island. Commerce and Tourism
and while he cannot discuss exact locations in Europe,
Minister Yiorgos Lakkotrypis said some of those
he does say they are not the classic casino destinations
operators were from East Asia, although did not give
of London and Monte Carlo. “It will be very difficult if
further details. Lakkotrypis has been pushing for closer
not impossible to replicate what already exists today in
ties with China; in February he announced plans to
Macau, Singapore, Australia and the Philippines, but
attract more Chinese tourists to the country, and this
Asia Gaming Briefings | October 2015
SPECIAL FOCUS 27
month signed a bilateral agreement to jointly
UK casinos had trebled since 2010.
hard to convince operators to put their bets
promote innovation, science and research with
Meanwhile other casinos are looking to grab a
on Europe,” he said.
Chinese Minister of Science and Technology
piece of the action. While the likes of Grosvenor
It may still be early days but operators and
Wan Gang in a move which could lead to major
Casinos is unlikely to snatch China’s highest
junkets will likely be forced to look further
Chinese investment in Cyprus’ first science
rollers, it nonetheless doubled standard table
afield unless the political and regulatory outlook
and technology park. There is a belief that a
staking limits last year and hosted major
improves closer to home. Macau Legend’s
casino run by a Chinese operator would boost
Chinese New Year events across most of its
$275 million investment commitment for a
both tourism and investment. With Chinese
venues this year. Many British casinos have
casino development in Cape Verde shows the
tourism arrivals to Cyprus up 163 percent
also dramatically expanded their baccarat
gambling sector is not without the appetite
year-on-year for Q1 2015, such opportunities
floor space.
for outbound investment which the rest of
are only going to multiply.
However, Warwick Bartlett, chief executive
China’s economy has displayed in recent years.
While Cyprus has chased Chinese gambling
of gaming consultants GBGC, told AGB that
“There are many good investment opportunities
investment and custom, activity elsewhere
Britain’s continued absence from the Schengen
today in some very unique locations around the
in Europe has been more sporadic. According
Treaty makes things trickier for the industry.
world that offer great air service, interesting
to Slovenia-based junket operator Marko
He says that China’s outbound tourism to
cultures and history, great sightseeing, very
Podrzaj, casinos he works with in Eastern
Britain remains more general or focused on
good shopping, good food and in particular,
Europe are working to adapt to Chinese clients,
shopping, although it is likely that many of
good casinos with attractive tax rates,” said
particularly by dedicating more floor space to
the businessmen that frequent the city’s
Karoul.
baccarat-type games. He said that he works
high-end membership clubs would have
“Unless we begin to see some shift back to
with many Chinese immigrants in nearby
connected with the club through a junket or
normalcy again in Asia I personally believe
Italy, but added that demand from Asia itself
associated third party.
that this trend will continue. These remote
is yet to significantly spike.
While opportunities are emerging in Europe,
new gaming destinations or properties will
There are also opportunities in some of Europe’s
the majority of investment remains in East
offer Asian gamers something new and exciting
larger markets. AGB understands that many
Asia, despite Macau’s problems. “Most of
as well as being able to remain low-key and
of London’s high-end private casinos, which
the operators in Macau are not compelled
discreet - something that is becoming more
previously had VIP and acquisition departments
to go beyond Asia,” Anthony Wong from
and more difficult to do in Asia today.” Europe
focused on clients in the Middle East, are
Macau’s Institute for Tourism said. Wong
could be the beneficiary of Macau’s ongoing
beginning to pivot these departments towards
said most foreign investment from the sector
struggles as casino and junket operators eye
China in response to Macau’s struggles. This
is directed to Asian countries including the
investment opportunities on the continent in
is not a completely new phenomenon. Last
Philippines, Cambodia and Vietnam. “The
a process which has already seen Australia,
year Britain’s Gambling Commission said the
European economy is not doing well and there
Cambodia and Vietnam dramatically grow
total amount of money staked on baccarat in
is a lack of demand for gambling. It is very
their gaming sectors. l
Asia Gaming Briefings | October 2015
SPECIAL FOCUS 28
Real estate, hotels top U.S. wish list for China investors: Crisis not hurting FDI The summer of 2015 will go down in the history books as a starkly turbulent period for China. The Asian powerhouse’s economy has stumbled, with trillions of dollars wiped off Chinese shares after a series of stomach-churning plunges.
F
urthermore, the government reduced its main
International property consultant CBRE Research recently
interest rate – the fifth rate cut in less than a year
reported that China’s outbound real estate investments
– and devalued the yuan to give the economy a
reached $10 billion a year for the first time ever, with the
shot in the arm.
US accounting for over one fifth of outbound investment
Yet despite these economic woes, analysts don’t expect
from China – the majority of which has been ploughed
the outbound investment, which has been targeting
into hotel and office assets. The US is among the top-
hotel and leisure projects across the globe, to take a
three markets for mainland investors, with New York,
significant knock.
Los Angeles, Chicago, and San Francisco accounting for
China’s outward foreign direct investment (FDI) now
over 60 percent of US-bound capital to commercial real
exceeds $100 billion, which makes it the world’s third-
estate, according to CBRE.
largest overseas investor and portfolios are increasingly
Although China’s economic tumult has sent shockwaves
being diversified from energy and mining to other
around the world, Frank Chen, executive director at CBRE,
industries, including real estate and hotels.
says econometric evidence suggests that currency plays
Asia Gaming Briefings | October 2015
SPECIAL FOCUS 29 a negligible role in transnational real estate
Due to open in 2018, the Chinese-themed hotel
a calculated a risk and it’s a risk that they
investments. “We do not believe that this
and casino complex will boast 6,583 rooms and
think they can manage.” That’s if RWLV and
devaluation will materially impact the flow
100,000 square feet of gaming floor housing 3,500
Alon actually get built, of course. “We think
of capital from China into OECD real estate
slots and gaming tables. Plans even include a
they will get built,” says Restrepo, “but until
markets. If this small move towards a more
panda exhibit and a replica of the Great Wall
I see vertical construction or a certificate of
market-driven currency contributes to a further
of China. Genting, which is clearly targeting
occupancy and people walking through the
loosening of capital controls, then the move
Asian patrons, bought the 88-acre plot from
door, I’m a Doubting Thomas, especially after
will be unequivocally positive for real estate
Boyd Gaming in 2013 after Boyd scrapped plans
what we’ve been through here in the past eight
values in Western countries.”
for the Echelon resort.
or nine years.”
He goes on to say: “Our view on the long-term
Also expected to open its doors in 2018, is
Interestingly, he highlights how Asian
upward trend for outbound investment remains
Crown Resorts’ Alon Las Vegas, a 1,100-room
companies appear to have more confidence
positive. As the Chinese government continues
casino development on the Strip that will cover
in Las Vegas than US firms at this moment
to push for liberalisation, a tightening of capital
two towers. The mega resort, situated where
in time. “I think it bodes well for the market
controls currently appears unlikely.” Chen also
the New Frontier once stood, is expected to
and it’s going to be interesting to see how
highlights how investors may focus on “deal
cost in the region of $4 billion and eventually
Genting and Crown’s competitors here in Las
quality” in the near term on the back of the
employ 4,500 staff. Crown snapped up the 14
Vegas respond. If they are successful, then
uncertain economic outlook globally. Either
hectares of land in August 2014 for a reported
MGM or Sands may think, ‘wow, we’ve been
way, for Chinese investors, particularly those
knockdown price of $280 million. With Alon
so focused on Macau that maybe we need to
who’ve had their fingers severely burnt by the
Las Vegas, James Packer, the billionaire casino
refocus a bit more of our time and effort on
stock market volatility, the US real estate is
mogul and CEO of Crown, will be hoping to
Vegas. It looks like Las Vegas is coming back
perceived to be a safe haven for their money.
entice Asian VIPs on their visits to the US.
if these projects get built.”
Meanwhile two major Asian projects, showing
Competition continues to be fierce in Sin City,
And if Genting and Crown deliver successful
confidence in the U.S. market, have made
though both Genting and Crown must believe
casino resorts in Las Vegas, it may well just
progress this year.
there is room for two new heavyweights. John
trigger further large-scale Asian investments
In early May, Malaysia’s Genting Group formally
Restrepo, principal of Las Vegas-based RCG
in America. l
broke ground on the $4 billion Resorts World
Economics, describes both developments
Las Vegas.
as “risky ventures,” but adds: “I think it’s
Asia Gaming Briefings | October 2015
AUSTRALASIA 30
AUSTRALIA
Asia tourism potential shines in Australia, Echo Entertainment says Echo Entertainment, which beat a consortium of Greenland and Crown Resorts to redevelop the Queen’s Wharf in Brisbane, says the gap between actual visitors to Australia and those who place the country at the top of their aspirational list shows the enormous potential for Asian tourism.
A
ustralia has seen a surge in investment interest over the past year, with the state of Queensland offering up three new licenses in an attempt to
boost its tourism industry. New South Wales also gave the go ahead to Crown for a new VIP only casino in Sydney, while other properties around the country are undergoing multi-million dollar face lifts. This has led some analysts to question whether there will be sufficient demand given the current relatively low level of Chinese visitation and the level of existing competition in the local market. However, in a recent interview at Echo Entertainment’s current headquarters at The Star casino in Sydney, new Managing Director and CEO, Matt Bekier and Star Managing Director Greg Hawkins expressed full confidence in the tourism potential. Bekier noted that Australia is number one on the list of most aspirational places to visit for Chinese tourists, but was only number 14 on places actually visited, highlighting a big opportunity gap. In his opinion, part of the problem is due to a capacity issue of suitable four or five star hotels. Hawkins added that, as well as Australia’s natural
Asia Gaming Briefings | October 2015
beauty, Chinese visitors were also impressed
including a Sky Deck, similar to that of Marina
by the standard of education and health as well
Bay Sands in Singapore, which will connect
as investment opportunities in the country.
four of the towers and be fully open to the
The new Queen’s Wharf development aims to
public. The development will also feature an
help address some of the capacity issues, with
infinity pool overlooking the Brisbane river and
Echo Entertainment chairman John O’Neill AO
Southbank, a water and light show, a bridge
promising that the plans will deliver “the best
connecting heritage and new architecture,
integrated resort in Australia.”
a riverfront moonlight cinema, significant
Its partners in the Destination Brisbane project
retail facilities, and 12 football fields of public
are Hong Kong’s Chow Tai Fook Enterprises and
event space.
Far East Consortium International. Queen’s Wharf
In terms of gaming, Queen’s Wharf will have a
will be a seven hectare city centre development
cap of 2,500 slots. A decision on how many of
with the iconic signature “Arc” building at its
that number will be deployed when operations
centre. It will have five hotels which will offer
commence in 2022 is still to be decided. Gaming
1,100 rooms. The brands will include The Ritz
table numbers are yet to be confirmed.
Carlton, Rosewood, The Darling, Dorsett and
Over 1.4 million tourists are expected to visit
one other six star property.
Queen’s Wharf, both domestic and international,
The complex will boast over 50 bars and
with a similar mix as at The Star in Sydney of
restaurants, from hatted fine dining to pop-up
around 30 percent VIP and 70 percent mass.
cafes. There will be dozens of new attractions
The development is expected to deliver around
AUSTRALASIA 31
TOTAL GAMBLING EXPENDITURE All gambling Y13/14 A$21.15b Sports betting $625.95m Racing $2.78b Total gaming (including pokies and lottery) $17.74b Casinos $4.38b
+1.8% +29% -2.4% +1.7%
+6.5%
(Source: Queensland Treasury)
REAL GOVERNMENT REVENUE FROM TOTAL GAMING $5.15b Echo Entertainment Y15 gross revenue A$2.25b International VIP Crown Resorts Y15 normalized revenue A$3.2b VIP program play
10,000 jobs to the local community, with 2,000
years ago, Bekier said that they now have 1.4
during peak construction, and another 8,000
million customers using the program, and
jobs in Queensland once it is operational. In
that 70 percent of revenue comes from carded
addition, Echo Entertainment Group will be
customers.
moving its headquarters to Brisbane, where
However, the rewards scheme will be relaunched
it already has 50 corporate staff. The current
at the end of this financial year with a
workforce of 3,500 in Queensland is expected
streamlined offering, featuring earlier redemption
to increase substantially and the company
opportunities and the ability to personalize
projects that its total staff of 9,000 will grow
offers to the individual.
close to 20,000 by 2022.
In terms of how the new Brisbane property
Echo is being aggressive in its domestic
is likely to fit in with its existing offering,
expansion plans. Apart from the $345 million
Hawkins said that Sydney is likely to still
transformation of the Jupiters property on the
be the first direct inbound destination. The
Gold Coast already underway, and the Queen’s
transformation of Jupiters and the Queen’s
Wharf redevelopment to commence in 2017, the
Wharf redevelopment in Brisbane will also
company will also spend over A$500 million
provide two destinations of appeal which
over the next five years in capital development
can be leveraged together due to their south-
at The Star in Sydney.
east Queensland proximity and provide easy
Talking about Echo’s Absolute Rewards
alternatives to those wanting to change their
program, which was launched groupwide two
gaming “luck” without excessive travel. l
+19%
+48.4%
+14%
+41.8%
Australia’s Federal Minister for Social Services, Scott Morrison, says the government will conduct a review by the end of this year of its laws to protect gamblers from illegal offshore wagering and to investigate methods of putting in place more effective enforcement measures. Australians lose more money per adult on gambling than any other developed country, according to data from a London-based research firm. Data from H2 Gambling Capital obtained by Australia’s Fairfax Media last month, show that the average gambling loss per adult in Australia in 2014 was A$1,279 ($898). Singapore came second with an average loss per adult of A$1,243.
Asia Gaming Briefings | October 2015
AUSTRALASIA 32
VISITATION
NEW ZEALAND
SkyCity taps NZ for growth as Asia VIPs boom SkyCity Entertainment, which operates six casinos in Australia and New Zealand, says it plans to focus on its business in New Zealand for future growth and isn’t looking at acquiring new properties in the increasingly competitive Australian market.
T
he company has several projects in
as spillover benefits from Macau moderate and
various stages of development to lock
competition intensifies.”
in earnings growth from around $800
The company also plans to activate concessions
million of capital expenditure in the
later this year from its recently revised agreement
Total gambling expenditure Y14 NZ$2.09b TAB racing and sports betting $311m, +5.6%
+0.09%
+7.2%
Lottery $463m, +7.2%
+7.2%
Casinos $509m, -2.1%
-2.2%
next three years.
to build an international convention centre in
Gaming machines in pubs $808m, -2.2%
CEO Nigel Morrison, presenting annual results
central Auckland, costing around $450 million.
(Source: NZ Govt.)
recently, said the next three years would be
A design brief has been agreed with the
full of activity as the company invested further
government, after a lengthy dispute over design
in its Adelaide casino, built the international
features and cost overruns, and there will be no
convention centre in Auckland, considered
public hearings on the company’s application
options for the sale of its new hotel being built
for planning permission.
as part of that centre, sought to resolve issues
Once the building contract is signed SkyCity
with its operations in Queenstown and built its
will use its concessions to install 230 more
international business further.
poker machines, 40 extra gaming tables, and to
SkyCity’s full-year results were largely positive
introduce more cashless machines – an increase
and have been generally well received.
in overall capacity of 10 percent to 15 percent -
In the year to 30 June 2015, normalized revenue
at a cost of $17 million.
rose 8.7 percent to reach $1.09 billion ($657.5
A 2013 report to the government said the
billion), normalized EBITDA was up 6.0 percent
concessions, which include a freeze on casino tax
to $305 million and normalized NPAT was up 8.8
for seven years, were worth $370 million in total,
percent to $134 million with Auckland accounting
and it valued just the extension of the license to
for 81 percent of the company’s improved EBITDA.
2048 at a further $90 million a year.
Darwin provided $39 million (12 percent) ahead of
Talking to AGB, Morrison turned aside suggestions
Adelaide with $27 million (9 percent), a result the
that SkyCity needed to acquire another casino
company described as “disappointing.” Casinos
in Australia to compete better with the bigger
in Hamilton and Queenstown made only minor
Australian companies.
contributions.
“We have debated that from time to time,” he
The outstanding area of growth was in international
said, “but we are not looking at other properties
business where revenue was up 43 percent to $126
in Australia.”
million and with EBITDA up 35 percent to $26.4
In the hierarchy of casinos, he said SkyCity was
million. The Auckland business accounted for 65
a tier-two operation catering for gamblers who
percent of group international business revenue.
bet a maximum of $250,000 a hand, where tier-
The company’s actual win rate of 1.36 percent
one casinos catered for up to $500,000 a hand.
(compared to a theoretical figure of 1.35 percent)
However he didn’t rule out co-operating with
on the granting of any new licenses and the
was also significantly up on the previous year’s
another operator to fly high rollers into, and
constraints on the present sites.
figure of just 0.95 percent.
around, Australia. “We already do that with
The sites are small, not owned by SkyCity, with
Analysts at Morningstar called the company’s
Crown in Melbourne – bring people in there and
the licenses tied to the site and not transferable.
performance in Auckland “another strong result,”
then on to Auckland.”
Morrison said there had been no discussions with
with six consecutive quarters of growth. In a note
In his results presentation, Morrison referred to
the government to date.
on the results analyst Brian Han said; “Our fiscal
families being brought into SkyCity in Auckland
However, given that the “latent demand of these
2016 forecast is largely unchanged. However,
and then flown to its properties in Queenstown.
large players and high net-worth individuals going
we reduce our forecasts for the subsequent two
SkyCity owns both casino licenses in Queenstown
to Queenstown is very, very significant, we clearly
years by between 6 percent and 12 percent. This
and is keen to develop one larger casino with a
need the government to support a development
reflects a downgrade to our Adelaide estimates
hotel, restaurants and other facilities, but would
there.” He indicated the issue was on a five-year
and a tapering of our VIP growth assumptions,
need government help to do so, given the freeze
planning horizon for the company. l
Asia Gaming Briefings | October 2015
-2.2%
New Zealand’s Ministry of Internal Affairs has re-appointed Graeme Reeves as Chief Gambling Commissioner. Reeves, a commercial lawyer with experience in commercial and property law, previously served as a director of the Airways Corporation for New Zealand and spent time as a director of New Zealand Post. Problem gambling continues to be a significant public health issue for more than 40,000 New Zealanders, according to new research from the University of Auckland. It found about 1.2 percent of the adult population meet the criteria for moderaterisk/problem gambling.
AUSTRALASIA 33
PACIFIC ISLES
VISITATION July tourism arrivals 40,882
Typhoon Soudelor deals blow to CNMI tourism Typhoon Soudelor, which slammed into the Commonwealth of Northern Mariana Islands in August, has dealt a heavy blow to the tourism industry there and put the survival of its struggling casino at risk.
V
isitor arrivals to the South Pacific
company that, “based on our review we deem
island chain had been healthy,
the application of TEC to be substantially
growing 12 percent in the seven
complete pursuant to the MOU dated July
months through July, although
1, 2015.”
August will have seen a steep drop after the
Closure of the resort, which was seen as
storm forced the restricted use of the airport
unviable without the casino license, would
to allow capacity for relief flights.
have a significant impact on employment in
The storm was the final nail in the coffin
the local community, Tinian Mayor Joey San
for the struggling Tinian Dynasty Hotel &
Nicolas has said.
Casino, which announced it would be forced
“It was inevitable that the hotel would all
to close if the Tinian gaming commission
together close, once the casino operations
doesn’t speed the approval of the transfer
closed. I hope that now that TEC’s application
of its casino license to a new owner, Tinian
is finally deemed to be substantially complete,
Entertainment.
the investigation process can be expedited, so
“Insufficient guest arrivals and negative
that if TEC is found to be a fit applicant, they
cash flow has made it impossible to keep the
can assume the operations of the casino.”
property operational. All of our remaining
Meanwhile, Mariana Entertainment is planning
operating resources will soon be exhausted,”
to open a second electronic gaming venue on
HKE Chairman Wai Chan said in a letter to
the island of Saipan in the Northern Marianas,
Tinian’s mayor at the time.
according to local sources.
However, the gaming commission has now
A consultant for Mariana Entertainment, which
indicated that the transfer of the license is
has been operating Club 88 at Saipan Ocean
almost complete.
View Hotel in Garapan since July, said the
Tinian gaming commission executive director
company has its sights set on another venue
Lucia Blanco-Maratita wrote in a letter to the
though declined to give details. l
+9.5%
Korea arrivals 15,321
+52%
China arrivals 17,964
+2%
Japan arrivals 5,624
-11%
Arrivals Jan to July 410,423
+12%
Imperial Pacific International, which is planning to build a $7.1 billion integrated resort on Saipan, has signed an accord to purchase 11 hectares of land from a private landowner in Tanapag Village for $3.2 million. The land deal is the latest investment in real estate by the company as it looks to build its ambitious resort on the island. Bridge Investment Group has chosen global leisure design firm, YWS Design, to masterplan its Tinian Ocean View Resort, the companies said in a press release. The $150 million resort has been granted a conditional gaming license and is scheduled to break ground in January 2016. It will have a Titanic replica hotel and luxury resort accommodations.
Asia Gaming Briefings | October 2015
SUPPLIER SPECIAL REPORT 34
G2E LAS VEGAS
The future of gaming Global Gaming Expo 2015, the world’s premier event for the casino gaming industry, is broadening its scope to match the changing gaming-resort landscape and position its attendees for the future. Complementing an expanded gaming focus, the 2015 show will introduce the “Integrated Resort Experience at G2E,” presenting innovative non-gaming technology, products and services as guests would experience them in a gaming-resort setting the evolving state of sports betting and daily
ways to provide a world-class entertainment
fantasy sports.
experience,” said Geoff Freeman, AGA’s
“We have developed an exciting array of seminars
president and CEO.
that will look at the most pressing issues of
“We’re thrilled to gather some of the most
our industry and position our attendees for
important voices in gaming for a compelling
the future,” said Ron Rosenbaum, AGA’s chief
forum that will shed light on the future of the
operating officer.
industry.”
“The gaming industry is leading the way in
Rahul Sood, a pioneer in the convergence of
technology, security and entertainment and
betting and eSports, will deliver the final keynote.
these seminars are vital to ensure gaming
As the co-founder and CEO of Unikrn, an online
companies across the nation and around the
betting platform that allows individuals to
world can progress our businesses together.”
wager on the results of popular video games,
he Global Gaming Expo 2015 (G2E),
Authorities and analysts in gaming, entertainment,
Sood will address thousands at the Sands Expo
presented by the American Gaming
sports, security, technology and business will
and Convention Center on Thursday, October
Association (AGA), will host elite experts
deliver comprehensive presentations for attendees,
1, about how to successfully unite business,
exploring a $240-billion industry
with gaming industry titans assembling for a
technology and design.
through in-depth presentations in Las Vegas
roundtable at the expo.
“Rahul Sood is an innovator and entrepreneur
from September 29 to October 1.
In one of his first public forums as Caesars
delving into unchartered waters in the gaming
Interactive seminars at the Sands Expo and
Entertainment president and CEO, Mark
industry,” said Ed Several, senior vice president
Convention Center will cover a variety of topics
Frissora will be joined by Scientific Games CEO
and general manager of G2E Events. “We are
instrumental to the future of casino gaming,
Gavin Isaacs and Rush Street Gaming CEO Greg
very proud to have him share his insight with
such as the development of skill-based slot
Carlin to debate the most pertinent issues of
the world’s top gaming minds at G2E.”
machines, a comprehensive look into tribal
the gaming industry.
G2E is open from 10:00 am to 5:00 pm on Tuesday
gaming, innovations in security, the growth
“Gaming is a quarter-of-a-trillion-dollar industry
29 and Wednesday 30 September and closes
of the “Integrated Resort Experience,” and
that is constantly evolving and finding new
at the earlier time of 3:00 pm on Thursday. l
T
Asia Gaming Briefings | October 2015
GAME-CHANGING INNOVATION. Technologies unveiled. Services and products to be bought. Insight to be gained. Connections to be made. But only one place in the world to find them all together.
AT G2E.
PRESENTED BY
SEPT 29 - OCT 1, 2015 SANDS EXPO CENTER LAS VEGAS
INTRODUCING
INTRODUCING THE INTEGRATED RESORT EXPERIENCE AT G2E, FEATURING END-TO-END CASINO RESORT SOLUTIONS, INCLUDING SLOTS AND SKILL-BASED GAMES, CMS AND P.O.S. TECHNOLOGIES, STAY WELL AMENITIES, CUTTING-EDGE FURNISHINGS AND SIGNAGE, LOYALTY PRODUCTS, F&B AND FRANCHISE CONCEPTS AND MORE. ALL IN ONE PLACE: G2E, HELD SEPT. 29-OCT. 1 AT THE SANDS EXPO AND CONVENTION CENTER IN LAS VEGAS.
REGISTER TODAY AT GLOBALGAMINGEXPO.COM TH E WO R LD ’ S L ARG E S T G ATH E R I N G O F G A M I N G P RO FE S S I O NAL S – #G 2 E 201 5
SUPPLIER SPECIAL REPORT 36 ABBIATI
New security products
ADVANTECH-INNOCORE
Showcasing “gaming intelligence”
A
AINSWORTH
Bringing the ‘reel deal’ to G2E
s the gaming-focused business unit of the $1 billion Advantech
Group, Advantech-Innocore stands alone among hardware suppliers. With its own manufacturing plants, global logistics and service centers as well as a leading edge product roadmap, Advantech-Innocore is able to meet the most demanding requirements of our customers in the gaming industry. The company has an extensive portfolio of standard hardware products based on both Intel and AMD chipsets and offers supporting software products and utilities. The expert design team also
A
bbiati Casino Equipment will display its brand new and existing products at
the upcoming G2E Las Vegas show. Products that will be exhibited include casino security currency products such as value chips and plaques, which incorporate a number of innovative security technologies. The new range includes an impressive collection of new patterns, designs and materials for the plaques as well as the new line of patented “Tie” chips featuring multiple injections, see-thru inserts and a combination of intricate and innovative
delivers some of the most sophisticated custom designs for gaming industry OEMs who require a gaming platform designed to their exact specifications. At the upcoming G2E tradeshow, the company’s theme is “Gaming Intelligence”. “This theme aptly encompasses our products, our knowledge of the industry and our added value hardware and software solutions” said Craig Stapleton Advantech’s product director. Advantech-Innocore will be exhibiting at booth #1823. l
A
insworth Game Technology brings ‘A Reel Deal’ to G2E 2015 with
innovative, new game content for their GamePlus and Premium Plus product ranges. Ainsworth will showcase their continued support for the extremely popular A560 SL cabinet. The A560 SL was exclusively designed for a highly entertaining game range that has delighted players across North and South America. The A560 SL
rim and edge inserts.
features a striking 32” high definition
All new products are available with
display, 19” LCD topper option for jackpot
security features such as 13.56 MHz RFID,
promotion, unique attract lighting stylized
8-color UV pigments, 3-in-1 UV security
to each game, premium sound experience
feature, Laser Tracer technology, Optical
and breathtaking animations.
Variable Ink, high security holograms to
The highly successful and popular Sweet
name but a few.
Zone brand will be on display including
“G2E is one of the key shows in the gaming
player favorites Rumble Rumble, Flying
industry and it’s essential for our company
Horse, Jumbo Wilds, King Cat and the
to be present in this show”, said Giorgio
debut of the brand new Sweet Zone title
Abbiati, CEO of Abbiati.
Grand Lions.
“It’s a perfect place to demonstrate to the
Another highly anticipated brand that
visitors our latest developments and new
will be unveiled at G2E is Double Sweet
innovative products.”
Zone. Launching with three entertaining
Abbiati will be exhibiting at booth #3423. l
Order of the Dragon titles, Double Sweet Zone offers players the option to play the original ‘Sweet Zone’ for 50 credits or the ‘Double Sweet Zone’ for 50 credits plus 50 credit ante-bet. Ainsworth will be exhibiting at booth #1967. l
Asia Gaming Briefings | October 2015
SUPPLIER SPECIAL REPORT 38 ALFASTREET
Royal Derby comes to G2E
T
his year will see the US premiere of the new mechanical horse-racing
machine, the Alfastreet Royal Derby.
AMATIC
Multi game solutions
M
ARISTOCRAT
Making the big play
ulti Game represents a growing market in the U.S. Visitors to this
year’s G2E Las Vegas show will have
Hugely anticipated, the machine has
the opportunity to see just why Amatic
already impressed at the London ICE show
Industries is a pioneer in this sector. This
and the G2E Macau with the sophisticated
Austrian family-owned company focuses
technical solutions and the intuitive, yet
on continual innovation to create optimal
entertaining user interface.
multi game solutions. In addition to
It’s the machine that has been missing
this, the Performer Grand Arc Slant Top
on the global gaming panorama for the
gaming machine also boasts a pioneering,
last couple of decades and it’s now ready
curved design.
to bring joy to players and operators
The Turbo Card Roulette is the card-based
worldwide. The first machines are already
version of roulette and opens up roulette to
in operation and confirm the quality of the
markets where wheel-based games are not
project with great results.
permitted. It is already licensed in Nevada
Along with the Royal Derby, the
and California. Amatic Industries provides
completely renewed 2015 range of other
the satellite gaming terminals and all the
products from the flagship R8 roulette,
technology to link the Turbo Card Roulette
which has been joined by the R4, R5 and
with the individual terminals.
R6 more compact models to the solid SL
Multi game is already being demanded in
single terminal and the amazing WIKY,
several states in the USA. Amatic Industries
featuring the industry’s biggest, 32” touch
is currently implementing its strategy to
screen monitor.
introduce its popular and entertaining
It is not really a premiere for G2E but it
games on a state-by-state basis.
remains equally impressive, and offers
“We have had the chance at past shows
countless options for the operators.
in Vegas to well understand what players
All the machines have got the latest
in the USA are looking for. We have
modifications, making them more
combined this knowledge with our long-
powerful, reliable and durable. The brand
standing experience. We look forward to
new orange theme finish and countless
presenting our MULTI GAME solutions in
customization options set them apart
our acclaimed Performer cabinets. Our
from the competition, confirming
partnership with INAG
the leadership status among the ETG
shows how we transcend
producers.
continents with
Alfastreet will be exhibiting at booth
combined American and
#4039. l
European expertise to bring new gaming solutions to the market. We look forward to greeting our guests to our stand in Las Vegas,” said Thomas Engstberger, sales manager. Amatic Industries will be exhibiting at booth #3219. l
E
very casino operator wants to make the big play -- creating an experience
for their players that is exciting, engaging and builds loyalty. At G2E 2015, Aristocrat will help operators make the big play with a deep and broad portfolio of industryleading hardware, games and system solutions designed to reach every type of player demographic. “This year, perhaps more than ever, it’s time for operators to make a big play, and Aristocrat is uniquely prepared and positioned to help them do it.” “We have the right hardware, the right games, and the right systems solutions to help operators capture and retain players. Operators can confidently turn to Aristocrat for the products they need now to make the big play with their customers today,” said Maureen Sweeny, Aristocrat’s chief commercial officer. Aristocrat will present jointly with VGT, showcasing content that speaks directly to every type of player segment: Class III, Class II, players who prefer more of an entertainment experience, those who love the thrill of frequent jackpots, those who love Aristocrat’s core gaming experience, and those who want an immersive experience with their favorite movie or TV characters. Closing the loop is a broad portfolio of system solutions that capture and respond to what the player is doing across the enterprise and responding in scientific ways that build loyalty. Aristocrat will be at booth #1141. l
Asia Gaming Briefings | October 2015
39
Asia Gaming Briefings | October 2015
SUPPLIER SPECIAL REPORT 40 ARUZE
Exhibiting over 240 slots
A
BETCONSTRUCT
BetCloud, a revenue enhancement
BETRADAR
One-stop shop
B
B
the G-Series video and Innovator stepper
the excess to the BetCloud to be accepted
and gaming solutions at G2E 2015.
products.
by other users.
As a 360 degree one-stop shop for betting
The improved sound content achieved
BetCloud benefits operators by allowing
and gaming operators worldwide, Betradar
through the high quality subwoofers
them to accept sportsbook wagers that
has tailored a competitive package to
and sleek 24’ HD monitor, creates a one
they would otherwise turn away, and
showcase at the exhibition. For companies
of a kind experience when playing new
allows participating BetCloud operators
that are operating in the gaming and
games such as the Goddesses or Golden
to gain revenue by accepting a certain
sports betting industry, Betradar’s product
Progressives series on the Cube-X Video
portion of the bets sold by other
portfolio provides solutions to externalize
product.
partners. Both these facilities will have
labor-intensive tasks, increase the in-
The dual LCD button panel and ergonomic
an immediate and positive impact on
play betting offering, enrich sportsbooks
look of the cabinet will keep players
operators’ profitability.
with bet-stimulating content solutions,
coming back to enjoy the Burning Hot
“Our goal is to help our partners
enhance the engagement through live
Jackpot series for the Cube-X Innovator
grow their businesses. The BetCloud
streaming and speed-up bet cycles with
product.
accomplishes this without requiring
virtual sports betting solutions.
Based on customer’s overwhelming
operators to accept unnecessary risk,”
“Exhibitions play a very important
feedback, Aruze will be launching four
said Vahe Baloulian, BetConstruct’s
role in our company when it comes to
3-reel stepper products as part of the
CEO.
demonstrating and showcasing our
expansive Cube-X Innovator library.
“BetCloud establishes the first online
services and solutions. Las Vegas is
Landing onto gaming floors soon is the
marketplace for gaming operators to
naturally the center of the entertainment
Cube-X Ultimate platform with Bags of
accept and share larger than usual bets
industry and for Betradar the G2E
Cash and The Gold Legend.
and this will positively affect revenues of
obviously is a not-to-be-missed event.
This most anticipated brand new product
all participants.”
Based on our experiences from G2E
will have a striking presence, attracting
BetConstruct will be exhibiting at booth
2014, the quality and quantity of visitors,
players from anywhere on a casino floor.
#5020. l
particularly from America but also the rest
ruze will be exhibiting over 240 slot machines at this year’s G2E with a
myriad of new titles being showcased for
Aruze will be exhibiting at booth #1356. l
etConstruct has launched BetCloud, which allows participants to accept
bets over their established limits and pass
etradar will be presenting its product portfolio including the latest
innovations in betting, streaming, content
of the world at this event is outstanding,” said Eduard Blonk, managing director of sales at Sportradar. Betradar is exhibiting at booth #5420. l
Asia Gaming Briefings | October 2015
SUPPLIER SPECIAL REPORT 41 CAMMEGH
Spread Bet Roulette makes US debut
CASINO TECHNOLOGY
Casino Technology leading the curve at G2E 2015
CPI
Showcasing note recycler and Easitrax
P
C
Las Vegas. The show will see Cammegh’s
immersive gaming experience, at the
portfolio of automated
latest roulette side bet, Spread Bet
forthcoming G2E in Las Vegas, Casino
payment systems in the
Roulette, make its debut in the US.
Technology is launching the one of a kind
gaming industry, will
The exciting new side bet gives operators
Arch slot machine .
showcase the new MEI SCR
the opportunity to offer a wider range of
The Arch lines up with the trendy search
note recycler and the Easitrax
roulette bets with thrilling new pay-out
for a cutting-edge technology creating
Web cash management
levels. Operators with existing Cammegh
multi-sense emotions for the players
solution at G2E 2015.
Mercury 360 wheels and Billboard displays
while ruling the game thrill. The exclusive
The two-denomination
can offer the gripping new roulette-based
Arch slot machine brings the next level
SCR note acceptor is the
side bet, with configurable payouts from
of gaming perception turning out to be
most recent extension of
even money up to 1,200 to 1.
a leader on the technological wave with
the reliable SC product
In addition to Cammegh’s Spread Bet
its European elegant silhouette, full HD
line, which has achieved
Roulette, a brand new range of Billboard
gaming resolution through its unique 42”
an installed base of more than 1.5
Displays screens will be at the show.
curved, gaming customized display and the
million units worldwide. It follows the
Complimentary to the current range, the
dedicated game suite “Treasure Journey”
same winning formula as the Cashflow SC
new slim-line single and double sided
inclusive of 10 unique slot titles.
and SC Advance note acceptors, raising
screens conceal a host of new features
Alto Gaming is a USA partner and IP
performance expectations to deliver a
together with pin sharp, customizable HD
licensee of Casino Technology and is
more efficient, secure and cost-effective
graphics. Cammegh will also be exhibiting
committed to will bring a next level
way to handle cash payments.
the renowned Mercury 360 wheel,
gaming experience with its recreation of
By combining proven components
Slingshot 2 automated wheel and Crystal
the Hot Rod brand powered by the Arch
with new technology, SCR opens new
wheel.
slot machine.
possibilities for what note recycling can
These will be partnered by the EyeCard
Casino Technology will be exhibiting at
offer as part of a total cash management
Plus card recognition system, Multiboard
booth # 4156. l
solution. It utilizes the same reliable
C
ammegh, manufacturer of the world’s finest roulette wheels, is looking
forward to exhibiting at this year’s G2E in
roving the firm determination to deliver innovative gaming products
bespoken to the customers’ thirst for
rane Payment Innovations, with
the most comprehensive
and Cammegh roulette side bets; Double
acceptor head and 600-note cashbox as
Shot and Lucky Symbols.
SC Advance.
Cammegh will be exhibiting at booth
Recycling mechanics have been imported
#3630. l
from hardened designs developed from other MEI-branded products. Then, to protect operators from losses associated with criminal activity, SCR has been fortified with numerous security features, including a removable anti-stringing module, lockable transport doors, entrance/exit sensors and “door open” detection even in a powered down state. In electronic gaming machines that traditionally pay jackpots in coins, the SCR virtually eliminates hopper starvation by paying out higher value notes instead – using the same notes it accepts, accounts for and stores from previous transactions. CPI will be exhibiting at booth #1850. l
Asia Gaming Briefings | October 2015
SUPPLIER SPECIAL REPORT 42 DLV
EVERYMATRIX
Diamond Quattro and other new products
Everything is possible
E
veryMatrix, an independent company offering award-winning software
solutions to the iGaming industry, has
A
time to sow and a time to reap – Las Vegas is an ideal place for DLV to
demonstrate the result of the project the company has been working on during the last few months – our new multigame Diamond Quattro that can function as a standalone and as a mystery progressive jackpot. Next to this beautiful set of new themes, exhibition guests will as well see Ultra 3, first time presented during Peru Gaming Show 2015, and, undoubtedly, it will make the same great impression as it did in Peru. All the games will be presented in modern cabinets of the company, among which there will be DLV’s recent novelty – luxurious Diamond Excel, premiered during G2E Asia 2015, and HD and DWS machines. This offer, including new products and company’s branded series of jackpots, will be complemented with DLV’s online betting site dlvbet and a display for roulettes. DLV will be exhibiting at booth #3225. l
Asia Gaming Briefings | October 2015
GIESECKE AND DEVRIENT
Total cash solutions
A
t G2E 2015 Giesecke and Devrient will be showcasing its range of high-speed
counting and sorting solutions, which allow
created the first and largest aggregator
all cash processes to be consolidated into
on the market, building a new industry
one.
standard that has since been replicated by
Large resort casinos usually take in various
most of the other software providers on
currencies at each of their operations.
the market.
Traditionally these receipts used to be
The company’s solutions work
processed at different in-house locations,
independently, or in conduction with each
involving the typical downsides of
other, and each of them has completely
manual handling, moving boxes around,
transformed the iGaming landscape such
coordination, and wait times.
as GamMatrix, which is redefining the
With an innovative end-to-end solution,
criteria for gaming platforms.
banknotes are counted, identified and
GamMatrix is a completely open
authenticated, then sorted by denomination,
platform that allows for fast and easy API
series, orientation, and fitness for
integrations, acting as a receptacle for any
circulation – all in a single run. Gaming
3rd party software on the market.
tickets are processed in the same run. As an
Similarly CasinoEngine, with over 2,000
important extra, used player cards and table
games from around 35 providers, including
chips can be shredded if required.
MicroGaming, NetEnt, IGT and Bally, to
The system produces customized, intelligent
name just a few, is the biggest casino
reports which management and accounting
content
can access at any given time, since cash
aggregator on the market. In 2015,
processing is integrated with the casino’s
CasinoEngine is available as an API
back-office systems. To check on the
integration into virtually any platform
progress of cash operations, managers and
solution on the market, with the use of in-
supervisors just need to log in to the server
built bonus tools working seamlessly with
from wherever they are.
the operator’s own wallet.
The integrated solution is rounded off by
EveryMatrix will be exhibiting at booth
customized process design and count room
#5320. l
layout. Reasons are obvious: Even the most powerful equipment can only achieve optimal results when combined with smooth and efficient workflows. G&D will be exhibiting at booth #3230. l
SUPPLIER SPECIAL REPORT 43 GPI
GLI
Bringing accountability to suppliers
IGT
Leading with latest innovative products
A comprehensive portfolio
G
I
services to the global gaming industry
premium content, core titles, hardware
with the highest levels of independence
innovations, systems technologies and
and integrity. At G2E 2015, GLI will explain
interactive solutions.
ways the company brings accountability to
A marquee product in IGT’s booth pairs
suppliers.
the most successful slot theme of all
GLI has experts, who stand behind the
time with the most unique video slots
company’s certifications, available to
technology of the last several years to
help clients 24/7. GLI can help establish
form the ultimate Winning Combination
manageable timelines, ensuring budget
– Wheel of Fortune Double Diamond 3D.
and other expectations are achievable.
Housed on the Axxis 3D/39 cabinet and
“For more than 25 years, regulators,
featuring IGT’s award-winning TRUE 3D
aming Laboratories International’s mission is to provide world-class
have come to trust GLI. Our team of subject matter experts wants to help your business become more successful, and we will work with you to understand your needs and concerns,” said GLI’s National Director of Tribal Development Russell Witt. “With in-depth market knowledge of 475 gaming jurisdictions, we have the ability to customize a solution that fits the needs of our clients. Our industry-leading experts deliver a level of service that is unmatched by any other testing lab.” GLI will be exhibiting at booth #4430. l
portfolio of gaming products and
services across all channels, including
testing, certification and professional
suppliers and operators all over the world
GT will present a comprehensive
G
aming Partners International will be bringing its industry-leading portfolio
of casino currency and table game products offerings to this year’s Global Gaming Expo. GPI leads the industry in offering the latest innovations in gaming currency and gaming currency security features. Our Paulson, Bud Jones and B&G currency product lines offer an unparalleled array of design and security feature options. We are excited to showcase the latest addition to our Paulson chip line with the introduction of our new Paulson Premium chips. Our Paulson Premium chip combines our traditional Paulson chip with the same décor materials used in our highend European-style plaques and jetons. A specially selected and complementary ring of décor is added to the outer chip ring. The result is a stunning and unique piece of currency that is both aesthetically pleasing and difficult to counterfeit. Under our B&G brand, we will also be highlighting our brand new line of plastic injection molded chips. Our new V-Series chips were developed using an innovative and exclusive, highly
technology, this must-see title boasts glasses-free 3D gaming entertainment, the classic Double Diamond symbol set and the timeless Wheel of Fortune celebration that players around the world have grown to love. The company will also feature Return of the Sphinx 3D, a new iteration of the long-tenured original spinning reel hit game, Return of the Sphinx. Additional titles to look for in IGT’s expanded TRUE 3D portfolio include Reef of Riches 3D, Grit and Guns & Gold 3D. IGT will further expand its legendary Wheel of Fortune portfolio by introducing several new themes to the famed game family. An anticipated title is Wheel of Fortune Gold Spins Double Diamond. Based on one of the most famous slot themes of all time, Double Diamond, and housed on the new CrystalWheel Stepper hardware, this game is a must-see. IGT will be exhibiting at booth #2139. l
durable injection material formula. With the large amount of handling of casino currency by dealers and players alike, we have also included ChipShield, an antifungal, helps keep the gaming chips cleaner, longer for a more sanitary chip surface. GPI will be exhibiting at booth #4433. l
Asia Gaming Briefings | October 2015
SUPPLIER SPECIAL REPORT 44 INSPIRED
Knocking out the competition
KONAMI
Latest game releases from Konami
NMI
PAGCOR certified
K
N
in collaboration with Pavilion Worldwide,
at G2E 2015 in Las Vegas.
Corporation to perform online and land-
LLC.
This year more than 25,000 gaming
based games testing.
Inspired will be launching its new Rush
professionals and executives from across
The Gaming Licensing and Development
Boxing game, featuring the boxing
the world will discover Konami’s latest
Department of PAGCOR sets regulations
legend, at G2E Vegas.
international game releases including:
and guidelines for gaming operations.
Virtual sports will be one of the hottest
Dungeons & Dragons premium video
“This accreditation by PAGCOR follows
topics at G2E Vegas, following its recent
slots, two new Rapid Revolver themes,
the recent appointment of NMi by First
legalization in Nevada. Inspired is
original KP3 base games and progressives,
Cagayan. With NMi now able to test for
showcasing the widest range of its world-
and Synkros updates such as Player On-
both jurisdictions in the Philippines
leading virtuals for land-based and online
demand Multigame Tournaments. The
this forms part of NMi’s roadmap to
casinos, lotteries and sports betting
company will also showcase the industry’s
commitment in Asia,” the company said.
operators. The virtual sports on show
first Frogger themed video slots.
Julian Borg-Barthet, business
will include new Rush Boxing with ‘Iron
Konami’s Dungeons & Dragons video slots
development manager for the NMi
Mike’, an all American Rush Indy Car
mark the series’ international launch
Gaming Division, said: “The Philippines
Racing, Rush Basketball, the all new Rush
with two rich fantasy themes: Enchanted
are emerging as an important area for
Soccer 2 Matchday and player favourites
Riches and Conquests & Treasures.
NMi with customer demand driving the
Rush Horses and Rush Greyhounds.
Dungeons & Dragons offers a variety of
expansion. Working with our customers,
Besides its Virtual Sports, Inspired will
merchandizing options, including logoed
consultants, and government contacts to
be showcasing its unique library of
premium chairs, themed bezel complete
extend our reach in key markets is why our
omnichannel games and innovations,
with glowing runes, faux stone design
customers align themselves with NMi to
including slots, video lottery and
elements, hand painted 3D dragon toppers
begin with.”
casino games. Inspired was the first
and a variety of sign packages including
NMi is an accredited gaming laboratory
supplier to launch omnichannel games
one with a large rotating red dragon.
with over 40 years serving the gaming
simultaneously across land-based,
Konami’s Rapid Revolver video-
industry in Europe, offering global service
online and mobile channels, with its top-
mechanical hybrid machine is
to its customers from labs across the
performing game of the year, Centurion.
quickly becoming a tour de
world. l
Inspired will be exhibiting at booth
force at casinos across
#3230. l
the globe and a must-
I
nspired, the leading provider of virtual sports and mobile games, has signed a
new brand partnership with Mike Tyson,
onami Gaming, Inc. is slated to present several high-profile product
announcements for international markets
have for operators. Rapid Revolver takes a unique spin on classic mechanical reels by mounting six stacked and vertically-mounted drums on its oversized top box, surrounded by synchronized highimpact sound and lighting. Konami will be exhibiting at booth #1154. l
Asia Gaming Briefings | October 2015
Mi, a gaming laboratory, has been awarded accreditation by The
Philippine Amusement and Gaming
SUPPLIER SPECIAL REPORT 46 NOVOMATIC
Novomatic goes ‘live’ at G2E
ORTIZ
Doubling room space for new range
SCIENTIFIC GAMES
Big booth for newest innovations
O
rtiz Gaming expands on its previous success by more than doubling its
booth space to make room for a new range of offerings that includes: new slot and keno games; famous top-selling bingo games now in new land-based and interactive gaming modules; new hardware, game features, and cabinets. “G2E is the worldwide stage for new trends in the gaming industry, and Ortiz Gaming continues to be at the forefront of this global industry’s trends,” said Ortiz Gaming president Maurilio Silva. “We have seen leaps and bounds in the
N
ovomatic has established itself as a rising force in the US gaming supply
chain and, as such, has risen to the challenge of bringing to market product lines that provide operators and their customers with attractions that are packed with gaming entertainment. At G2E, Austrian Gaming Industries and the numerous subsidiary companies - including of course the recently expanded Novomatic Americas team - will come together to ‘go live’ and excite the many business partners, customers and guests attending. With recent key advances in both product approvals and licensing, the Novomatic Americas team fully expect to be inundated with enquiries from US operators as word of the arrival of Novomatic on the US scene has spread rapidly. Novomatic Americas has, since the company’s foundation in 2012, placed a clear emphasis on the Native American and VGT markets along with mainstream casinos as it works to achieve the long held Group ambition of becoming a major supplier to US gaming markets. The progress to date of this initiative has been clearly demonstrated by the successful development of market specific products such as the Action-Gaminator machine and its innovative multi-game mix or the new Magic Games Premium HD multi-games for the Video Gaming Terminal market in the company’s home State of Illinois. Novomatic will be exhibiting at booth #2656. l
Asia Gaming Briefings | October 2015
technological innovations in the world around us; so this year Ortiz Gaming is answering these ever-changing industry needs with a multi-solution catalog for
V
isitors to the Scientific Games Corporation booth at G2E 2015 will
experience how the company can power
land-base and interactive channels,”
the gaming world as a leading supplier of
Silva added.
the industry’s top gaming devices, table
Silva said Ortiz Gaming has enlarged its
products, systems and interactive solutions,
bingo offerings by expanding electronic
and lottery business products and solutions.
games and Class II and III machines
For the first time at G2E, Scientific Games
to multiple options available from its
will exhibit its Bally, Barcrest, Shuffle
interactive division, Ortiz Interactive.
Master, Williams, and WMS branded
Ortiz will be exhibiting at booths #3267
products in the same booth.
and #3867. l
The 26,000-square-foot multi-level exhibit will feature products from the company’s gaming, lottery, and interactive divisions, and highlight the end-to-end solutions for gaming and lottery customers around the world. The company aims to showcase why it is better-equipped than any supplier to address the increasing convergence of land-based, online, social, and lottery entertainment solutions. “We are uniquely positioned as the provider of the industry’s most robust solution suite to offer our customers more brands, more solutions, and more possibilities to excite their players,” said Gavin Isaacs, president and CEO of Scientific Games. Scientific Games will be exhibiting at booth #1126. l
arena berlin | 20 – 22 / 10 / 2015 Excellence in iGaming
Addressing iGaming’s big questions The impact of consolidation, omni-channel gaming, the future of devices and emerging markets top the agenda. Drive the change join thought leaders and decision-makers from around the globe at the iGaming industry’s leading event on 20-22 October 2015 in Berlin
For more information and to register, visit eigexpo.com
SUPPLIER SPECIAL REPORT 48 TCS
WEIKE
Showcasing Gaming Floor Live products
Weike teams up with Casino Game Maker
2E 2015 Las Vegas will be the ideal
G
window for Zitro to present its latest
showcase its core products, as well as a
novelty: BIG BANG to the general public.
host of new product innovations that have
G2E attendees will be privileged witnesses
been developed on the Gaming Floor Live
of the latest invention created by the most
platform.
innovative idea factory of the game world.
There will be a strong focus on the service
They will step into a new dimension of
and support side of the business, which is of
prizes never before seen, together with a
key strategic importance.
universe of ten new games.
“Over the past few years, the emphasis
There is a before and an after in the
has been on developing and launching the
history of video bingo games: BIG BANG,
Gaming Floor Live platform in addition to
the creation of a new universe.
improving our benchmark products and
Zitro will be exhibiting at booth #3856. l
technology enabling them to connect to the new platform. However, our key focus throughout this process has been our customers – working with them, reacting to them and planning the future,” said Tristan Sjöberg, TCSJOHNHUXLEY executive chairman. At G2E, latest developments to the Gaming to the GFL Optimization and GFL Media modules as well as the first showcase of GFL
A
head of G2E, Weike Gaming Technologies has signed an exclusive
agreement with Las Vegas-based Casino
Gaming in the Americas. The innovative
Game Maker Inc. to be an exclusive
GFL Gaming Terminals product enables
distributor in Asia.
customers to play live casino tables through
Weike will distribute a range of Casino
a fixed or portable terminal from any
Game Maker’s electronic gaming products
licensed area in the casino.
throughout Asia’s markets, Weike said in a
With GFL Gaming, players can enjoy the
press release.
privacy of virtual gaming, yet still experience
“Casino Game Maker’s strength in new
the exciting casino environment. Perfect for
technology, innovative gaming platforms
use in licensed areas off the gaming floor
and designs will complement Weike’s own
- such as bars, restaurants and smoking
portfolio of gaming devices and systems,”
zones - GFL Gaming helps to increase the
the company said.
number of player positions per table without
Sneah Kar Loon, CEO of Weike said: “We
adding additional seating and equipment
are very excited with our collaborative
requirements. Visitors to the show will see a
partnership, being able to distribute
variety of fixed terminal options that feature
Casino Game Maker products and look
Roulette, Baccarat and Sicbo with the choice
forward to unlocking more value for the
to switch between live or RNG based games.
Asian operator. Additionally, we are very
TCSJohnHuxley will be exhibiting at booth
impressed with Casino Game Maker’s
#4439. l
technology and vision and are excited to be working with Andrzej and his team.” l
Asia Gaming Briefings | October 2015
Zitro brings Big Bang
G
2E 2015 will see TCSJOHNHUXLEY
Floor Live platform see further additions
ZITRO
Why SiGMA?
1 2 3 4
New format. Different crowd. Different affiliates. New deals.
-
Four conferences: Gamification; Affiliates; Payments; Regulatory.
Great weather in November calls for an abundance of open air networking events.
Free admission for affiliates and a low fee for all other participants is indicative of a strong turnout.
All 2014 exhibitors and many others will exhibit in 2015.
BOOK THE DATES
Nov 4 -7 th
th
Become a member SUBSCRIPTION FORM, PLEASE TICK AS APPROPRIATE, USE CAPITAL LETTERS
STANDARD MEMBERSHIP BENEFITS TOP NEWS HEADLINES
SINGLE MEMBERSHIP
E-BRIEF CONTAINING IN-DEPTH FEATURE ARTICLES
$615
SEARCHABLE ARCHIVE OF GAMING NEWS
US$ 128.00/ MONTH, 6 MONTHS - US$ 768.00
DISCOUNTED ACCESS TO EVENTS AND OTHER AGB PRODUCTS
US$ 108.00/ MONTH, 12 MONTHS - US$ 1,296.00
$1,035
CORPORATE STANDARD MEMBERSHIPS THREE (3) MEMBERSHIPS: 10% DISCOUNT
FIVE (5) MEMBERSHIPS: 20% DISCOUNT
6 MONTHS: US$ 690 EACH Total: US$ 2,070 (Save: US$ 234)
6 MONTHS: US$ 615 EACH Total: US$ 3,075 (Save: US$ 765)
$ 552 each
12 MONTHS: US$ 1,165 EACH $ 932 each Total: US$ 3,495 (Save: US$ 393)
$ 492 each
12 MONTHS: US$ 1,035 EACH $ 828 each Total: US$ 5,175 (Save: US$ 1,305)
* Sign up and pay in full for 12 months and get the 13th month free!
TEN (10) MEMBERSHIPS: 35% DISCOUNT
$ 399
6 MONTHS: US$ 499 EACH each Total: US$ 4,990 (Save: US$ 2,690)
$ 672 12 MONTHS: US$ 840 EACH each Total: US$ 8,400 (Save: US$ 4,560)
* The above discounts cannot be used in conjunction with any other discount
CONTACT INFORMATION FIRST NAME :
LAST NAME :
:
SKYPE NAME :
COMPANY
:
ROLE
ADDRESS
:
STATE
:
CITY
:
:
PROVINCE :
USER NAME :
POSTAL CODE
:
MOBILE
:
COUNTRY : +
PHONE
:
+
PAYMENT DETAILS: HSBC HONG KONG | “BLUE SKY VENTURE LTD” | #658-046347-838 | SWIFT: HSBCHKHHHKH I WOULD LIKE TO SETTLE VIA CREDIT CARD. PLEASE SEND ME A DEDICATED PAYMENT LINK TO THE EMAIL ABOVE
WHAT IT IS
WHAT YOU GET
AGB serves as a platform for multiple levels of information about the Asian gambling industry in the form of feature articles, latest news headlines, networking events, directories of key authorities and players, bespoke research, introduction services, and access to experts who can answer your questions.
AGB consists of a weekly eBrief reporting on recent regional news and developments in the Asian gambling industry. Articles are written by experts living and working in Asia and cover a range of legal, operational and market issues, offering in-depth analysis of the opportunities these developments provide for operators and those who work with them.
WHAT’S DIFFERENT
WHY YOU NEED IT
Our extensive network of regional advisors ensures that the intelligence you receive is real, topical, and based on fact. No other service gives you such comprehensive insights into the political, legislative and competitive developments affecting the markets in this region, and what they mean for you. Get your information from the horse's mouth, not from third parties
Gain access to the vast knowledge and experience of those who actually work in and with the Asian gaming industry and get the inside scoop on the next great opportunities, as well as answers to your everyday operational challenges. By becoming a member, you also connect with other like-minded people who want more than just surface-level information.
AGB - Asia Gaming Brief | Trading as Blue Sky Venture - Reg#43675 SO | enquiries@agbrief.com Suite 1104, 11/F, First International Commercial Centre, 600E Av. Dr. Rodrigues, Macau SAR, P.O. Box 1139.
Thank you for being part of the three-day event that celebrated the best of the BEST Dealers in Asia. Macau 19-21 May 2015 See you at AADC ‘16! ORGANIZERS
MAIN SPONSORS
SUPPLIERS
SUPPORTING ORGANIZATIONS
MEDIA PARTNERS
EVENT MANAGEMENT
PRODUCERS
Keep up to date with news, videos and photos at facebook.com/AllAsiaDealersChampionship
AV SPONSORS
CALENDAR OF EVENTS 52
SEPTEMBER GLOBAL GAMING EXPO (G2E) 29 Sep - 1 Oct 2015 Sands Expo & Convention Center, Las Vegas www.globalgamingexpo.com www.globalgamingexpo.com
OCTOBER
EiG - EXCELLENCE IN IGAMING 20-22 October 2015 Arena Berlin www.eigexpo.com EASTERN EUROPEAN GAMING SUMMIT 23-24 November 2015 Inter Expo Center, Sofia www.balkangamingexpo.com www.gaminglawmasters.com
APLA 2015 ANNUAL REGIONAL CONFERENCE 19-23 October 2015 Grand Hyatt, Seoul, Korea http://www.apla2015.com/ INTERNATIONAL ASSOCIATION OF GAMING REGULATORS (IAGR) ANNUAL CONFERENCE 13-15 October 2015 JW Marriott Hotel, Lima www.iagr.org/lima2015 INTERNATIONAL MASTERS OF GAMING LAW (IMGL) ANNUAL CONFERENCE 14-16 October 2015 JW Marriott Hotel, Lima www.gaminglawmasters.com
NOVEMBER
SiGMA - SUMMIT OF iGAMING MALTA 4-7 November 2015 InterContinental Hotel, Malta www.maltaigamingsummit.com
SAGSE LATIN AMERICA 10-12 November 2015 Centro Costa Salguero, Buenos Aires www.monografie.com/sagse_bsas/ingles/index.php MiGS - MALTA iGAMING SEMINAR 17-19 November 2015 Hilton Hotel, Malta www.maltaigamingseminar.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 | October 2015
MGS - MACAO GAMING SHOW 17-19 November 2015 The Venetian Macao www.macaogamingshow.com
FEBRUARY ICE TOTALLY GAMING 2016 2-4 February 2016 Excel London, London, UK http://www.icetotallygaming.com/
MARCH iGA - iGAMING ASIA CONGRESS 21-23 March 2016 Grand Hyatt Macau http://igamingasiacongress.com/
the Malta iGaming Seminar 2015 16 th - 19 th November
Malta’s Premium Networking Seminar with
Over 400 C-Level Delegates,
40 Expert Speakers & 50 Exhibitors & Partners
Sharing, Debating and Discussing the Hottest Global Topics and Latest Trends in the iGaming Industry. Corinthia Hotel, St. Georges Bay, Malta, Europe
Tap into this leading specialist iGaming conference where you will Network and Discuss amongst the key players.
maltaigamingseminar.com
#migs15
LAST WORD
Has China lost its gambling appetite?
54
Gambling in China can trace its history back as far as 3,000 years, with many of today’s popular games such as Keno and even poker thought to have originated on the mainland.
Sharon Singleton*
T
he deep roots of gambling in the Chinese
expected to be the main driver of global tourism markets.
psyche and culture were one of the factors
Macau, with its proximity to the underpenetrated China
that helped propel Macau to be the biggest
market, its cultural and linguistic affinity with the
gambling destination in the world in just under
mainland and its well-established tourism infrastructure,
a decade… and on a simplistic level it will mean Macau
is still likely to be one of the first ports of call.
will ultimately remain so.
Operators in Macau are finally being forced to develop
Beijing’s anti-corruption drive has caused a stampede
a broader tourism offering to capture that sector of the
for the exits for Macau’s high rollers in particular,
market, with new properties coming online, such as
with gross gambling product now in its 16th-straight
Melco Crown Entertainment’s Studio City and Las Vegas
monthly decline. Some argue that the VIP sector of the
Sands’ Parisien providing a much broader spectrum of
market has gone for good and the junket system that
leisure options.
helped to fuel the growth is broken.
The governments in Beijing and Macau certainly want to
But despite the current pariah status of Macau, centuries
see this shift and despite the fallout from the corruption
of underlying demand for games of fortune do not
campaign and ongoing regulatory missteps that seem
evaporate in a year. There is certainly evidence that
deliberately targeted at hurting Macau, no one really
some of it is going elsewhere, at least when it comes
believes the authorities want to kill the goose that lays
to the VIP market.
the golden egg.
Casino operators in Australia and New Zealand reported
In fact, they are pledging billions of dollars in
a surge in VIP revenue in the first half of this year, while
infrastructure and transport improvements that will
NagaWorld in Cambodia and casinos in Vietnam have
help open up the Pearl River Basin and make Macau
also shown robust results.
even more accessible to China’s Hinterland.
The Philippines also is reportedly benefiting from
True, it’s unlikely to be a V-shaped recovery and the
regulatory loopholes that allow proxy gambling at its
transition may be long and painful, especially given the
casinos, which is a practice banned in Macau. The 1H
five-star cost structure of most of Macau’s hotels and
results at the casinos in Manila’s Entertainment City
shopping options. But the retail scene is beginning to
hub showed decent top line growth, despite reporting
reflect the move, with more High Street brands, such
losses due to startup and expansion costs. But those
as H&M joining the lineup in Cotai’s new malls.
results probably didn’t reflect the true behind-the-
And ultimately, China is seeking to develop Hengqin
scenes picture.
Island, with an area roughly three times the size of
However, the real prize in the future will be to capture
Macau, as a tourism destination. The island should act
the mass and premium mass markets, not to benefit
as a feeder to provide the volume that will be needed
from a spillover from Macau’s woes in the highly
to replace the missing VIPs.
volatile VIP segment.
So now the froth from the high roller has been blown
Putting the current economic turmoil in China, the
off the top of the market, Macau may now be able to
currency devaluation and anti-corruption drive aside,
build on that intrinsic China demand and create a more
in the longer term Chinese outbound travel is still
stable long-term future. l
* Managing Editor, AGB
Asia Gaming Briefings | October 2015