AGBriefings October 2015

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

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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

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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

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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.

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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