AGBriefings October 2019 by Asia Gaming Brief

Jurisdiction Updates October 2019 Edition

Japan

Yokohama: risks and rewards pg.12

Macau

Winning by design pg.6

Cambodia Examining the online ban pg.34

Philippines

Expansion plans proceed pg.26

In focus pg.16

Sportsbetting Taking a punt on Asia

G2E 2019 SUPPLIER SPECIALS pg.44

Asia Gaming Briefings | October 2019

MESSAGE 3

See you in Vegas!

t’s been a full year at Asia Gaming Brief. As well as the

changed and how designers are re evaluating the

eBrief headline digest the team brings you daily, and the

concepts that create a unique experience.

timely print editions, it’s been full swing on the field.

In the Philippines, where the online industry has been

Building from a number of social functions and a full-

the focus of attention in recent months, the country’s

on third edition of the ASEAN Gaming Summit in Manila,

land-based sector has been making steady strides, with

AGB went on to host the inaugural Mekong Gaming

the opening of a new resort near the Clark Freeport Zone

Summit in Phnom Penh in September. Hailed a success,

and progress in Cebu.

the event examined the risks and rewards of emerging

Turning to Cambodia, the online ban has raised more

markets of Cambodia, Vietnam, Laos and Myanmar.

questions than answers: Mey Vann, director general at

Next stop for the AGB team is…. Vegas, for the yearly

Cambodia’s Ministry of Finance, pulls no punches: “it’s

gathering of the global industry on US soil. This edition

gone and it’s not coming back,” he says, but for industry

of Asia Gaming Briefings dedicates its focus section

insiders the situation may not be so clear cut.

to what has been hailed as the game changer for the

Across to Japan we take you through the promise and

American gaming industry - Sports Betting - and what it

perils that the Yokohama bid holds and what that means

means to Asia’s sporting chances. Covering a myriad of

for Osaka, left with the aftertaste of an operator exodus.

angles, we start by giving voice to the rising popularity

In this Supplier Special report we lift the veil on what

in Asia of virtual sports. With 3D animation graphics

you’ll find first hand on the G2E 2019 showfloor at the

and motion capture technology, it’s now a challenge to

Sands Expo and Convention Center from October 14

differentiate virtual from the real thing.

-17. The show boasts the largest gathering of global,

Our second article focuses on expert opinion on the

commercial and tribal gaming professionals in North

emerging markets with the most potential, and probably

America, with more than 27,000 gaming industry

no surprise to hear that India and Japan come out on top.

professionals in attendance. The exhibition also welcomes

While Japan has no current plans to legalise online gaming,

90+ new exhibiting companies at its 2019 show.

it’s still seen as one of the easier grey markets in Asia.

If you are in Las Vegas for the show, feel free to reach out

No focus on sports betting could ignore Australia and we

to the team at Asia Gaming Brief. For a meeting drop a

take a look at the “turf ” war for supremacy of the market

line to g2e@agbrief.com.

being wagered by Victoria and New South Wales.

See you in Vegas!

Rosalind Wade

Luis Pereira

Lastly, politicians and regulators in the U.K. are expressing increasing concern about the number of

On behalf of Asia Gaming Brief

Asia-facing operators sponsoring U.K. sports teams,

Rosalind Wade & Luis Pereira

attempting to cash in on the huge popularity of the

Publishers

Premier League across most of the Asian region. Also in these pages you’ll find the most relevant

Connect with us:

happenings across the 22 Asian gaming jurisdictions. In Macau, we examine how the look and feel of the

@agbrief

gambling environment for the big spenders has evolved as their tastes, demographics and expectations have

Asia Gaming Brief

www.agbrief.com

October 2019 EDITION Series II • Issue XIX

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AGBRIEF PARTNER EVENTS

› ICE Totally Gaming › ASEAN Gaming Summit › Japan Gaming Congress › G2E Asia › Russian Gaming Week › iGB!Live › World Gaming Executive Summit › Australasian Gaming Expo › G2E Las Vegas › European iGaming Congress › IAGR Annual Conference › MGS Entertainment Show › SiGMA

Asia Gaming Briefings | October 2019

CONTENTS 4

GREATER CHINA

SOUTH EAST ASIA

NORTH ASIA

MACAU

INDOCHINA

JApan

PHILIPPINES

RUSSIA

MALAYSIA

singapore

AUSTRALASIA

CAMBODIA

AUSTRALIA

Vietnam

NEW ZEALAND

special focus

Asia Gaming Briefings | October 2019

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Asia Gaming Briefings | October 2019

GREATER CHINA

MACAU

Winning by design Bill Friedman’s book, ‘Designing Casinos to Dominate the Competition,’ used to be the final word in casino design in the early 2000s, with a dominating principle that the gambling equipment as decor beats “impressive and memorable decorations.”

Asia Gaming Briefings | October 2019

GREATER CHINA

owever, plenty has changed since basic interiors, deliberately short sightlines, congested layouts and low ceilings were in vogue – and Asia, as the industry’s hotbed of new developments, is continuing to redefine the parameters. “The best designs still create a diversionary, immersive experience. All need to present an escapism look and feel to the design,” said Paul Steelman, CEO of Las Vegas-based architecture firm Steelman Partners, which has designed countless casinos and integrated resorts worldwide. “We believe the trends are away from copycat classic design to unique, artfully inspired design. Cold modern design never works within the VIP casino.” Attracting and retaining high rollers is a challenge for the region’s casinos, which in Macau for example rely on VIPs for half of their gross gaming revenue. Changing tastes The look and feel of the gambling environment for the big spenders has evolved as their tastes, demographics and expectations have changed. According to Tom Decker, director of business development and communications at Arquitectonica, which was behind Macau’s City of Dreams development, among other projects, the challenge is to adapt to VIPs who are either younger, or have a younger outlook on life. The Naga 3 expansion project in Cambodia, for example, will have “instagrammable” features – a far cry from times when VIPs sunk into the dim lights of a smoke-filled room. “The design needs to be more unique and unexpected, rather than traditional, and set itself

apart from establishment ornate décor,” Decker said. “Even then the expectation is that materials are of a high quality and designs are within a classical modern approach that is lasting.” As explained by Westar Architects managing director Lee Montaina, VIPs are more varied and international than ever before. The intimate, personal and at times, cramped, gambling environments of the past are simply not what VIPs from various markets expect these days – and casino architects are responding accordingly. “The sizes of these spaces are increasing and will continue to increase as we add more amenities. Additionally, service areas and supporting spaces are much more important,” Montaina said. “However, each property typically wants to maintain some control of the décor so that it fits within their overall brand strategy… and the operators need diversification across properties whilst maintaining their brand elements. “There is always room for innovation, but you need a client who is willing to take that risk. Could anyone have imagined a Morpheus Tower in Macau 10 years ago?” he said. Some basic interior design rules still apply. With many casinos in the region welcoming a disproportionately large number of Chinese VIPs, Steelman points out that it is essential that there is “nothing that insults the culture or typical Feng Shui beliefs of the casino players.” “Each casino design we do is based upon successful historical examples, yet in each casino we add a new feature,” Steelman said. Meanwhile it would be nonsensical to offer a first-class VIP gaming floor experience if the same standards are not achieved throughout the visit, from arrival through to catering, accommodation, shopping and ultimately leaving.

Sega Sammy installs first slots in Macau Sega Sammy Creation has announced the installation of its first slot titles in Macau, and says it is optimistic about the future of its slot games in the Asian market. The first two games to hit the casino floors will be a mahjong-themed “Fortune Tiles of Dragon” and a 243-way title “Moonlight Treasure”. Both are installed on the Genesis Star upright cabinet. Masahiro Kurosaki, head of Asia sales noted that Fortune Tiles of Dragon drew large interest at G2E Asia in May this year, and “confirms our belief that innovative games will drive new player engagement and provide new content to retain regular players as well.” Sega Sammy says it expects to release more slot titles across various markets over the coming months.

“As architects, our emphasis is on programming, space planning, sense of arrival and customer traffic flow,” Decker said. “VIP arrival and the journey to VIP areas are preferably segregated and off limits from general customer areas. “Often private gaming areas are on a different level. All support facilities from restrooms to concierge services to private rooms are dedicated to VIP customers. Access to high-end retailers is easy, discreet and in close proximity to VIP areas. “The Asian market has become quite sophisticated. High quality food and beverage have increased in importance, especially in the VIP marketplace.” Let there be light There has also been a noticeable change in lighting. Whereas before traditional decorative chandeliers would sparkle above the tables, indirect mood lighting is now favoured. “There is an emphasis on lighting that makes people look better or emphasises active versus passive areas,” Decker explained. “In the early period of casino development, VIP areas were dark. Nowadays we look to provide views – if they are desirable and weather permits – of the outdoors, and views of the main floor, if appropriate and permitted. But in general, the highest priority is comfort and a sense of exclusivity.” In essence, highlighting the punters’ best features and elevating them above the casino floor whilst giving them pleasant views will make them feel like kings and queens. Comfortable and confident, it is understandable why they would choose to be bold with their money, benefiting the casino’s coffers. “Casino design needs to follow a certain set of rules to create an escapism environment,” Steelman said. “Casinos will always need to make the customer feel powerful, to win. Yes, there will be new layouts and new designs, but those that follow the basic rules that have made gambling a successful sport will always succeed.” It is also worth remembering that the casino’s basic architectural structure should allow for relatively frequent and seamless interior design alterations. After all, most public spaces where there is significant footfall and a large number of guests are expected to freshen up their décor reasonably often. Top-end hotels, for example, typically undergo a makeover every three to five years. As Steelman added: “What’s new now will look old in a few years.”

Asia Gaming Briefings | October 2019

GREATER CHINA 8

Melco resorts & entertainment Melco Resorts & Entertainment (6883.HK) has three casinos and the Mocha Clubs. The company operates the City of Dreams and Studio City in Macau and the City of Dreams Manila. In September, Melco appointed Evan Winkler as company president. He will be responsible for day to day operational matters globally and will report to Melco Chairman and CEO Lawrence Ho. Winkler is a board member of Melco Resorts, and will continue to serve in that capacity. Q2 revenue rose 17 percent, helped by the opening of its Morpheus Hotel in June last year and higher hold rates, though performance at its City of Dreams Manila property weakened on increased competition. Total operating revenues for the second quarter of 2019 were US$1.44 billion. Adjusted property EBITDA was a record US$442.2 million, up 24 percent from the second quarter of 2018. Net income was $100.3 million, or US$0.22 per ADS, compared with US$57.3 million, or US$0.12 per ADS, in the second quarter of 2018.

Asia Gaming Briefings | October 2019

Sjm holdings

MGM china

SJM Holdings (880:HK) has 22 casinos in Macau, though the former monopoly has been losing market share to new IRs on Cotai. The opening of its $4.6 billion Lisboa Palace resort was scheduled for later this year, though analysts expect it to be delayed until next. SJM reported a 0.7 percent decline in H1 gaming revenue, as growth in the mass market failed to offset a 25 percent drop in VIP revenue. Total gaming revenue was HK$16.72 billion ($2.1 billion), while total revenue also declined 0.7 percent to $17.07 billion, compared with $17.19 billion a year ago. Analysts say the company is likely to continue to trade at a discount to its intrinsic value and other operators, with a lack of near-term catalysts to drive the share price. Bernstein analysts say the delay in Grand Lisboa Palace and the cost escalation is now already largely priced in â&#x20AC;&#x201C; meaning that SJM looks fairly valued from a valuation perspective. Yet while the company is at a discount, the analysts also noted that it sees no companyspecific catalysts in the near term either.

MGM China (2282:HK) is operating two casinos, with its MGM Cotai IR opening in February last year. The HK$27 billion IR features 1,400 hotel rooms and suites, meeting space, high end spa, retail offerings and food and beverage outlets as well as the first international Mansion at MGM for the ultimate luxury experience. For Q2, net revenues grew by 26 percent, reaching $706 million, resulting from the continued ramp-up of MGM Cotai, and an increase in main floor table games hold percentage. Adjusted property EBITDA reached $171 million, a 43 percent increase compared to the prior-year quarter. MGM said much of the growth came from MGM Cotai, which saw the addition of newto-market tables in 2019, and the opening of VIP gaming areas in the second half of 2018. In August, MGM China said it had secured a revolving credit facility of HK$9.75 billion ($1.24 billion) that will refinance existing senior secured credit facilities and will be used for working capital.

GREATER CHINA 9

GROSS GAMING REVENUE 2019e GGR

2018 GGR MOP302.8b

-1%

Mass market

+10%

VIP

-14%

+18%

Q1 GGR MOP76.2b

-0.5%

(Source: Morgan Stanley)

DICJ imposes data protection rules The Gaming Inspection and Coordination Bureau has prohibited gaming concessionaires and junkets from sharing any data about customers and their gaming activities with third parties, Macau News Agency reported. The instruction was signed by DICJ director Paulo Martins Chan and came into force on Monday, September 23. According to MNA, it defines information on gambling activities or operations as “all data related to the individual and object of the gambling activities, or related to the operation of casinos and gambling activities, including but not limited to the personal data, place of origin or nationality, profession or the gambling clients’ activity and other information such as their representatives or accompanying persons, the time of entry into and out of the casino or the gaming table, the amount of bets, the credit, the amount of the bet placed, the payment of prizes and the purchase and redemption of chips (tickets), slot machines tickets (tokens), etc.”

Galaxy Entertainment Group Galaxy Entertainment Group (27.HK) has three main properties and runs three City Club casinos inside hotels. The company’s Galaxy Macau Phase 2 and Broadway at Galaxy Macau opened on May 27, 2015, almost doubling the capacity of the resort. In the first half, Galaxy and Sands had the largest market share in Macau at 24.1 percent, though Galaxy leads in VIP, with 25.2 percent of the high roller market. For Q2, the company posted flat adjusted EBITDA and lower revenue, but the results topped analysts’ forecasts helped by higher hold. Net revenue was down 5 percent year-on-year to HK$13.2 billion, while adjusted EBITDA was $4.3 billion, higher than the Bloomberg consensus estimate of $4.0 billion. Galaxy said it’s proceeding with a $1.5 billion upgrade of its Galaxy Macau and StarWorld properties, which includes preparation work to eventually link to the third and fourth phases of the group’s development plans. These include a further 4,500 hotel rooms, including family and premium high end

rooms, 400,000 square feet of MICE space, a 500,000 square feet, 16,000-seat multi-purpose arena, F&B, retail and casinos.

Wynn macau Wynn Macau (1128:HK) operates two resorts, with its $4 billion Wynn Palace opening in 2016. The company’s original property is on the Macau Peninsula. The Wynn Palace has 1,700 hotel rooms and 90 percent of the resort will be non-gaming. Wynn Resorts saw year-over-year revenue growth across all of its properties in the second quarter of 2019, particularly in Macau and Las Vegas. Total operating revenues increased 3.3 percent year-on-year, reaching $1.7 billion. Both properties in Macau, namely Wynn Palace and Wynn Macau, saw their operating revenues inch upwards in the quarter, propped by increased casino revenue from the mass market. Table games turnover in VIP operations fell 4.6 percent at Wynn Palace, and 33.4 percent at Wynn Macau. The company said it has made meaningful progress designing and planning the Crystal

Pavilion in Macau, which it believes will be a ‘must-see’ tourism destination on Cotai.

Sands China Sands China (1928:HK) has five properties in Macau. The company has 12,000 hotel rooms and suites, making up for 48 percent of hotel rooms run by casino operators in Macau. Sands China posted a nine percent increase in profit for the first half of 2019, driven by increases in mass gaming volume and rampup at The Parisian. Net revenues reached US$4.5 billion in the six months ended June 30, 2019, increasing 4.8 percent. Sands China said net casino revenues increased six percent during the period, reaching US$3.6 billion. The increase was primarily attributable to an increase of US$131 million at The Parisian Macao, driven by increases in volume in mass gaming as well as a higher win percentage in all gaming offerings. The company is currently transforming Sands Cotai Central into a London-themed resort, which it expects to be completed by July, 2020.

Asia Gaming Briefings | October 2019

NORTH ASIA 10

Asia Gaming Briefings | October 2019

NORTH ASIA 11

Asia Gaming Briefings | October 2019

NORTH ASIA

JAPAN

Yokohama bid holds promise and perils The announcement by Yokohama Mayor Fumiko Hayashi on August 19 that her municipal government would be moving forward with an IR bid reshaped the licensing race in a way that few other events up to this point have done. Asia Gaming Briefings | October 2019

NORTH ASIA

ajor international IR operators and share repurchase programs and target new and gaming industry analysts development opportunities that allow us to had been hoping that at least maintain our industry-leading returns on invested one of the governments in the capital – and we think an investment in Tokyo Kanto region - with a population of about 38 or Yokohama gives us the best opportunity to million people the most populous urban area do exactly that,” Adelson said. Melco Resorts & Entertainment Chairman in the world - would raise its hand and enter the race. The fact that it was Yokohama, which is and CEO Lawrence Ho’s policy shift was only already a stylish and wealthy port city that draws slightly less dramatic. While Melco had never millions of foreign tourists annually, made it a actually declared an “Osaka First” policy, it had clearly been close to doing so. At the Japan Gaming much more attractive prospect. Yokohama’s entry into the race was not such Congress in May, Ho announced that his firm good news for rival Osaka, which had previously would dramatically raise the global standard of been drawing the lion’s share of attention. For the IR industry, presenting a stunning array of many months it had looked as if Osaka would visual demonstrations of his “City of the Future” be the only major market municipality that concept for the Osaka Yumeshima site. By mid-September, however, Ho had would make an IR bid, giving Japan’s second city a unique feature that would draw visitors consigned all of that spectacular work to the from all parts of the nation and beyond. Now, dumpster, and declared that “‘Yokohama First’ it is quite possible that Osaka Yumeshima will is a plan that gathers a top-notch team of experts to focus on creating an be partially eclipsed by a IR in Yokohama city the major IR with closer and likes of which the world easier access for most has never seen. We are visitors to Japan. Osaka’s chagrin well prepared to carry out Osaka’s chagrin only only deepened activities contributing to deepened when two of when two of the the future of Yokohama the top competitors left and to push forward the it standing at the altar. top competitors left further development of Las Vegas Sands it standing at the the city as an international Managing Director of tourist destination. Melco Global Development altar. is a suitable partner George Tanasijevich had for Yokohama and its declared in June that his surrounding areas.” firm was pursuing an There is no danger that Osaka will lose out “Osaka First” strategy, and by mid-August was sponsoring a music festival in the city. Tanasijevich completely, however, because MGM Resorts has, stated, “We seek to find a long-term role for Las in a long term and stable fashion, been pursuing Vegas Sands to contribute to Osaka’s music and a partnership with the Kansai region, and it entertainment scene by bringing our relationships remains committed to the strategy they have and expertise in global entertainment to Osaka, long been pursuing. Indeed, the departure of and supporting local artists and events. Given Sands and Melco just means that two of its most the opportunity, we will build an Integrated dangerous competitors cleared out of their way. Dancing visions of the supreme bounty of Resort in Osaka that incorporates performing venues that rank among the best in the world.” the Kanto market do have a major downside for It was only about a week later, after companies like Sands and Melco, however, and Yokohama entered the IR race, that Las Vegas that is much more political risk at this location. The local residents in Osaka have been Sands made a policy u-turn with breakneck speed. Las Vegas Sands Chairman and CEO mentally prepared for an IR bid over several Sheldon Adelson released a press statement years, the big business community is all for indicating that his firm was abandoning its it, and public opinion seems to be basically effort to partner with Osaka and would instead tolerant of the development plans. The same cannot be said for Yokohama aim for “Tokyo or Yokohama.” “Consistent with our long-held strategy by any stretch. Public opinion can fairly be and our track record of success in achieving described as hotly opposed to opening a casino it, our company will drive organic growth by in their city, and even the business community strongly reinvesting in our existing portfolio of is split. Mayor Hayashi is moving forward, properties in Macau, Singapore, and Las Vegas, but only by ramming it through in a not very reward our shareholders through our dividend democratic manner.

“

”

GROSS GAMING REVENUE Fitch Ratings GGRE $7b - $10b Bernstein Research GGRE $7b - $8b

Ten-year renewal presents financing hurdle: Fitch Fitch Ratings has revised some of its previous estimates about the prospects for the Japan IR market, but also raised a warning flag over the implications of the IR license renewal system. “Pretty much everyone we talked to agreed that the ten-year license renewal presents the biggest obstacle to securing bank financing,” Fitch reported, “Japan’s gaming law presents several facets of risk, including political risk; notably, the local government (including the legislative branch) must actively seek renewal every ten years.” Fitch also expressed some concern about Return on Investment (ROI) rates: “The IRs in Japan are far from slamdunks in terms of generating a decent ROI (EBITDA/cost), which we think of as roughly 10 percent or higher. Besides the higher gaming tax rate that we were well aware of before our trip, operators will have to deal with high development costs and bureaucratic red tape.”

Okura revenue falls as pachinko appeal fades Okura Holdings, a pachinko hall operator in Japan, reported lower revenue for 2019 after it closed some parlours due to a drop in appeal, triggered by changes in regulation, which reduced the gaming element of the machines. The Hong Kong-listed company operates 17 halls under trading names Big Apple, K’s Plaza, YOUPARK and Monaco. Total revenue decreased by approximately 6.4 percent, from approximately JPY8.7 billion ($81 million) for FY2018, to approximately JPY8.15 billion for the year ending June 30th, 2019. “The pachinko and pachislot industry has continued to be affected by the continuous decline in pachinko and pachislot players during FY2019,” it said. “As pachinko manufacturers’ progress in developing new models that meet the new standards was slower than expected, pachinko hall operators’ selection of machines were limited by the machines available in the market,” it said.

Asia Gaming Briefings | October 2019

NORTH ASIA 14

RUSSIA

Shambala gets Primorye green light as zone expands Shambala JSC, the former operator of the Shambala Casino in the now-closed Azov City gambling zone, has received permission to conduct gambling activities in the Primorye zone.

ccording to Russian gambling publication Bookmakersâ&#x20AC;&#x2122; Rating, the permit was signed on 6 September, allowing Shambala to start carrying out gambling activities from 1 December 2019. The Shambala casino was opened in Azov City in western Russia in October 2010. Three years later the company opened another casino, Nirvana. Both of them were closed in 2018 following a decision to open a rival gambling zone in Sochi.

Asia Gaming Briefings | October 2019

Shambala attempted to contest the ruling, demanding RUB3.3 billion ($51 million) from the Russian government, but it was dismissed. In 2017, Shambala presented a project for a gambling facility in Primorye, developed by international architectural firm AEDAS, which is behind such gambling venues as The Venetian casino in Macau. The entertainment complex is expected to include a casino and a 5-star hotel with no less than 250 rooms. The construction is expected

to be carried out in two stages, the first of which involves building a casino within the two-year period. The second stage will involve the hotel and entertainment facilities. The overall investment is put at RUB 10 billion. Earlier this year, the head of the Primorye Territory tourism department said that the facility is expected to be in operation in the beginning of 2020. In a separate development, the authorities of Altai Territory have supported the construction

NORTH ASIA 15

Tigre de Cristal GGR Rolling chip turnover Total table drop

1H 2018 8,360 6,507

350 348 1,645

Total slot handle

1,348 (Source: Summit Ascent)

Stars Group bets on Russia Stars Group has set it sights on Russia, saying it intends to obtain a bookmarking licence and will promote its PokerStars brand on a local cable channel. Canadabased Stars Group will “soon” launch its promotion campaign on the Russian television channel UFC, Russian business daily RBC quoted Stars Group CEO Rafi Ashkenazi as saying on a recent conference call. Ashkenazi also added that the company plans to file a request with the Russian Federal Tax Service for a bookmaker license for the PokerStars Sports brand. In March 2014, Russian communications watchdog Roskomnadzor blocked the site PokerStars. com and currently only its Russian-language “mirror” is available to users, which notifies punters that online poker services are provided to them by the Rational Poker School Ltd., registered on the Isle of Man.

of an entertainment complex with a casino in the Siberian Coin gambling zone. Investments in the project will amount to RUB 3.5 billion, with construction expected to start in 2020. Project investors Aleksey Sakvarelidze and Anton Bykov said that at the first stage, a slot hall for 300 slot machines and 10 gaming tables will be built. In 2021-2023, the construction of a 150-room hotel will begin under the franchise of one of the international brands. The implementation of this phase will take two years. At the third phase, a casino with an area of 5,000 sq m will be built, as well as recreation areas. Aleksey Sakvarelidze owns 30 percent in Alti LLC. His company is developing a hotel and entertainment complex, including the Altai Palace casino, which opened in 2014 and is the only casino operating in the Siberian Coin zone. Meanwhile, Summit Ascent’s Tigre de Cristal now expects the second phase of its development in the Primorye zone to open in early 2022 following changes in its design.

1H 2019

The first stage of Phase II is expected to more than double the existing capacity in guest rooms and gaming facilities. It will also include four restaurants and bars, an

“

The entertainment complex is expected to include a casino and a 5-star hotel with no less than 250 rooms.

”

indoor beach club, a duty-free shopping mall, and multipurpose MICE facilities. Changes to the design followed input from

Primorye zone to get new power plant The Primorsky Krai Development Corporation has signed an agreement for a joint venture with a Russian subsidiary of China’s stateowned energy company Sinomec as part of the Eastern Economic Forum in the Russian city of Vladivostok. The first project of the new company will be a 100 MW gas power plant for the Primorye gambling zone with an investment of about 10 billion rubles ($152.6 million). The agreement stipulates the registration of a Russian-Chinese company named Far Eastern Energy Company LLC, which will develop energy projects in Primorsky Krai. According to Primorsky Krai Development Corporation executive director Igor Trofimov, “China is our partner, and the decision to develop cooperation is fixed at the government level, so we decided to create a joint company, which will serve as the basis for further work.”

its new majority shareholder, Suncity Group. Tigre de Cristal, which opened in 2015, was the first integrated resort to open in the Russian Far East. Ramp up was slow at first due to competition from illegal gambling and poor transport links, though Summit Ascent’s results have seen an improvement and it says it expects to begin to benefit from a cluster effect as new casinos open from 2021. For the six months to end June, adjusted property EBITDA jumped 62 percent to $66.8 million. Profit attributable to owners of the company jumped to $42.8 million from $2.6 million, while group revenue was up 24 percent to $257.3 million. The company said the slot business was the outperformer, up 37 percent to $90.6 million. The rolling chip business also saw significant improvement with revenue increasing by 69 percent to HK$68.8 million.

Asia Gaming Briefings | October 2019

FOCUS 16

Asia’s sporting chances When the U.S. Supreme Court struck down the Professional and Amateur Sports Protection Act in 2018, many surmised that the ruling would trigger a ripple effect, leading other jurisdictions to legalise sports betting.

hat has not yet happened. However, the appetite in Asia continues to grow apace and operators appear undeterred by the “grey” status of many of the markets. In this edition’s Focus section we explore several sports betting-linked areas that are in the headlines, or gaining traction in the region. The first is the rise of virtual sports, which is proving to be highly popular. The latest in 3D animation and motion capture technology are producing sports events that are becoming hard to differentiate from the real thing. Football is by far and away the most popular sport, though suppliers are developing basketball products to cater for the Philippine and Chinese markets, while in India cricket is the obvious choice. Our second article focuses on expert opinion on the emerging markets with the most potential. India and Japan come out on top. In the former, skill-based games are legal and market experts are confident this will be extended to sports betting at

Asia Gaming Briefings | August 2019

some point in the next few years. The large and rising middle-class population, coupled with increasing internet connectivity make it a market that’s hard to ignore. Japan has no current plans to legalise online gaming, but is still seen as one of the easier grey markets in Asia. No focus on sports betting could ignore Australia and we take a look at the “turf ” war for supremacy of the market being wagered by Victoria and New South Wales. The two states are taking different tacks when it comes to their approach to races and their relationships with bookmakers. We ask who is coming out on top? Lastly, politicians and regulators in the U.K. are expressing increasing concern about the number of Asia-facing operators sponsoring U.K. sports teams. Most are attempting to cash in on the huge popularity of the Premier League across most of the Asian region. It’s a delicate question that could deprive clubs of a major revenue source and operators of a valuable marketing tool.

FOCUS 17

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FOCUS 18

Virtual sports gather speed in Asia Dismissed in the past by skeptics and naysayers as “animated roulette,” virtual sports have come a long way since their early days of crudely drawn graphics and limited betting options and are firmly taking hold in Asia.

ith the deployment of motion capture technology and 3D animation, combined with the harvesting of real sports data to provide the full gamut of betting markets and odds – including in-play wagering – virtual sports have taken hold in a big way. In fact, these simulated betting products are now firm fixtures at most online and land-based sportsbooks. “Virtual sports have really taken off in the last 12-18 months, with our [Asian] customers quite overwhelmed by the turnover they have seen,” says Michael Maerz, managing director for Asia at sport data and virtual sports provider Sportradar. “They [virtuals] are hugely popular throughout Asia.” Likewise, Yariv Lissauer, CEO at virtual sports supplier Leap Gaming, says he has noticed a pronounced increase in demand from Asian operators for virtual sports products.

Asia Gaming Briefings | October 2019

Asia is a huge continent, of course, so tastes vary, though the most popular virtual sport by some margin is soccer, as is the case in much of Europe. Due in part to the popularity of the NBA in huge markets like China and Philippines, virtual basketball tends to be the second most popular product in the region. While Sportradar is currently working on virtual baseball given its huge appeal in markets, such as Japan, Korea and Taiwan. Virtual cricket involving eight Indian teams competing in a T20 league, is also in the pipeline to cash in on the obsession with the sport on the Indian subcontinent. One reason for virtual sports’ growth in Asia of late has been the evolution of the graphics and overall realism of the product. Indeed, gamblers are more likely to place wagers on an artificial sports betting product if it closely resembles the real thing. While Asian gamblers still tend to prefer live casino over RNG gaming, lifelike

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virtual sports products these days are almost indistinguishable from the real thing. “The more polished and the better the product looks will increase its authenticity and how trustworthy it is in the eyes of the users,” says Lissauer. Motion capture technology To help with this authenticity the use of a professional studio’s motion capture technology, otherwise known simply as mocap, is now widespread in the industry. This involves kitting players out in skin suits with ‘markers’ attached so that dozens of HD cameras positioned around the field or court can record every precise movement. In fact, the positional accuracy of these mocap set-ups can get down to just 0.5mm. The technique is even used by certain suppliers to capture the movements of greyhounds and racehorses on the track. Artists take the captured wireframe data and overlay human features and detailed kits to bring the in-game athletes to life. Stadia complete with fans are also painstakingly recreated, while audio and commentary add the finishing touches. “With our football, basketball and tennis [products] we had semiprofessional footballers and basketball and tennis players in black suits wired up,” Maerz says. “It was a process of over a month to get the real movements and plays, which essentially

looks like a PlayStation game. The quality of the video is definitely something that is very much appreciated in the Asian market.” Sportradar’s access to a trove of real sports data assists with the realism and with calculating probabilities. “Data will tell you what happens and how often,” Frank Wenzig, managing director of gaming at Sportradar, tells AGB from the gaming division’s main office in the German city of Bremen. “You need to reflect this in the video and enrich it with the right probabilities. For example, in a correct score betting market we have to understand how likely it is there will be a 1-1. But we have to consider that one percent chance there will be an 8-0. If we do not consider this then they may look like real odds, but they do not feel like real odds. That is distracting for our audience.” As well as driving interest in real sports competitions, like soccer’s Asian Cup or next summer’s Euro 2020, operators find virtual sports offer gamblers options during lulls between matches or during the off-season. Virtual sports also serve a thick-and-fast menu of betting – 24 hours a day, seven days a week. For instance, Sportradar’s basketball product offers some 3,300 fixtures per day with eight matches running in parallel. Users can bet on a new match every three and a half minutes. And these days more and more virtual sports products offer in-play betting, which helps to

drive engagement and increase revenues for operators. For instance, bettors can wager on every single point with many virtual tennis products, creating a new betting round every 10 to 25 seconds. “Live betting is a lot more attractive than the pre-match betting with real sports, so the logical trend is to follow this in the virtual sports world,” Wenzig says. On-demand products also mean users can just bet and go rather than having to wait for scheduled events to start. These features offer that instant gratification that the younger generation of gambler craves. Mobile technology While Lissauer quite rightly points to advancements in mobile technologies, coupled with 4G and now 5G connectivity, as having helped with the appeal of virtual sports, the investment suppliers have poured into products has been decisive. Squint your eyes and you could be fooled into thinking you’re watching an actual televised sporting contest. This immersive experience can only help virtual sports to grow further in Asia and elsewhere. Indeed, Wenzig insists the lines between computer-generated gameplay and real-world sport continue to blur. “Nowadays, virtual sports are a dedicated type of product. This will meld together with live betting and in the future people won’t even know if it is real or virtual.”

Asia Gaming Briefings | October 2019

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India, Japan eyed as key emerging markets Uncertainty caused by political and regulatory instability in Cambodia and the Philippines has prompted operators to search for potential new markets, with India and Japan at the top of the list.

uch was the conclusion from panels dealing with Asian online gaming opportunities at the Betting on Sports conference in London in September. Rune Loderup, chairman at Asia-facing and Manila-based Goldblue, said the online gaming sector in Asia was currently enduring a “rollercoaster” due to the upheavals involving the outright ban on online gaming in Cambodia and China’s pressure on the Duterte administration in the Philippines. “We have a situation in Asia where it is illegal to live in the country where you offer into,” he pointed out. One such example is India where – at least for most states within the country – sports-betting remains illegal. However, there is provision within the law for the operation of games of skill meaning that both poker and, increasingly rummy are proving popular with online audiences.

Asia Gaming Briefings | October 2019

Speaking on a later panel, Navneet Makharia, the chief executive of Kolkata-based gaming supplier Ability Games, said that the “nascent” Indian online market was “yet to be explored.” And now, due to increased penetration of highspeed internet, smartphone and the huge demographic potential, India is starting to arouse serious interest. “There are 800 million potential sports lovers; it’s right behind China so there is huge potential,” he told the audience. “Fantasy sport users will cross 100 million in 2019. Think about this number when it is open to the betting side. This is the potential for the market today. Any operator offering this can cross sell any other product.” Charlie Zhang, vice president AG Tech/Alibaba agreed about the potential for fantasy sports in India suggesting that the love of cricket combined with

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fantasy could be a huge growth area. “The core thing is there is a sports gene in the Indian fans. Cricket takes 90 percent of the share, and Kabaddi takes another 5 percent,” he said. “The companies that are looking at India start by adding cricket, with tips. It’s similar to China.” On the previous panel, Zhang’s colleague Gilbert Wong, vice president AGTech/ Alibaba, said the company has been investing in India including forming a joint venture with local payments giant PayTM. “Fantasy is huge, there is unlimited potential,” he added. “We love India.” Big in Japan India wasn’t the only country given a mention with Loderup pointing out that Japan was also a “special market” which was “similar to European markets” partly because many of the larger affiliate organisations are already up-and-running with Japanesefacing offerings. “The Japanese are quite shy to gamble

online; they like it but don’t talk about it,” he added. “But when they open land-based, it will open the market further and make it even bigger.” Japan is currently drawing up regulations to cover land-based gaming, but online gambling does not form part of the legislation. Marcos Oliveira, chief affiliate officer at Clever Advertising, chipped in that grey online growth had, as yet, to provoke any “huge kickback” from the government. “So there aren’t big issues and we are taking advantage,” he said. “Japan is easier than Thailand and Vietnam, for instance. I can easily see Japan becoming one of the biggest online markets.” The key to gaining an audience in Japan is distinct localisation. “You can’t look like a European gambling site,” said Loderup. “It must have instructions, (and be) very detailed. People must speak the language fluently.” “Only bet365 works there,” added Oliveira. “If you don’t have a super-detailed Asian facing operation you will certainly fail. It’s the same with Africa. People like what they like and you need to adapt.”

Talking broadly, Oliveira said that patience was needed to make an Asianfacing operation work. “Asia is a persistence market,” he said. “You have to wait, wait, wait for the opportunity. For it is the most difficult market to establish. If you find yourself with enough patience, you will make amazing games. Once you are established. Don’t just expect to succeed.” The difficulty in reaching the audience in any Asian jurisdiction was addressed by Loderup. “Most Asian countries have agents but not affiliates,” he said. “And they are afraid of putting their head above the parapet. That is why affiliates don’t work in China. But the affiliation business is slowly growing.” The first problem was the marketing, then there was the issue of payments. “Even if you advertise a brand, you get blocked,” says Oliveira. But he added that affiliation was growing and that the various messaging services such as WeChat and Telegram “are creating massive groups of punters.” “That can drive traffic to your website,” he said.

Asia Gaming Briefings | October 2019

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Victoria, NSW stage Aussie turf war Australian racing is in the midst of one of the biggest changes in its long history as the nation’s two biggest states – New South Wales and Victoria – wage what the media have dubbed a “turf war” and behind which lies two different approaches to the business of betting.

n one corner is Racing NSW, led by its singleminded chief executive Peter V’Landys, riding high on advantageous funding and determined to steer the country’s best horses to Sydney and away from Melbourne with a series of brand new, big-money races. In the other corner, Victoria, boasting history and the spring carnival, an enormous money-spinner where the attention of the country’s betting public turns to Melbourne. Most mainstream media attention has been on V’Landys’ new race creations like the A$14 million Everest and A$7.5 million Golden Eagle – among a raft of new events worth more than A$45 million that stretch across six weeks, all launched with the express purpose of attracting attention and horses to Sydney in the spring. Overall prize money in both states has spiralled – Racing NSW and Racing Victoria will have paid out more than A$500 million combined in the season which ended on July 31 – but driving it all is betting revenue, and that is where the race is on for the biggest slice of the pie. Perhaps the key difference between the states is their relationship with Australia’s biggest wagering operator Tabcorp, whose primary racing product is pari-mutuel betting, but which also offers fixed-odds products.

Asia Gaming Briefings | October 2019

“New South Wales have basically gone all in on Tabcorp and Victoria is in a joint venture with Tabcorp and they allow corporate bookmaker sponsorship, the bookmakers can promote their product on television and sponsor racetracks and races in Victoria,” said Jason Cornell, an ex-Hong Kong Jockey Club and now Australian-based racing administration expert. “New South Wales were behind, but they have had some big increases in funding and improvements and they have put Victoria on the back foot. The relationship with tote and bookmakers is definitely one of the main factors that differentiates the two jurisdictions.” It isn’t the only difference though, but the biggest change in the two-state dynamic was in 2010 and the landmark “racefields legislation” court case. When V’Landys squared off with corporate bookmaking giant Sportsbet and Betfair in 2010, the ruling over how racing could charge for its product went all the way to the High Court. When V’Landys scored what many felt was going to be an unlikely victory it opened up more than A$80million that had been paid in lieu of the ruling and gave New South Wales a funding head start on its southern rival.

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Although the high court ruling was overarching, arrangements on how the sport charges operators is made on a state-by-state basis and Victoria was essentially hamstrung, having already made far less lucrative deals with bookmakers. Since then New South Wales have continued to go “all-in” with Tabcorp – continuing to hit bookmakers hard with charges based on turnover – and Victoria has essentially doubled down, preferring the joint venture arrangement with Tabcorp and negotiating a deal based on revenue with bookmakers. Another key difference is television and streaming rights, with Racing NSW selling the rights to the Tabcorp-owned SKY Television and Victoria creating its own broadcasting arm called Racing.com. Racing.com was dealt a blow when Tabcorp merged with Tatts Group in 2017. While New South Wales race clubs are little more than two decades into a 99-year pari-mutuel wagering license with Tabcorp, the Victorian wagering licenses are up for grabs in 2024 – the trouble is, there might be only one realistic bidder. “It isn’t as competitive a landscape anymore,” Cornell said. V’Landys success in brokering advantageous deals for his state has given him even more leverage with government and in 2016 he negotiated for what he called a “tax parity”, a system where Racing NSW was ensured a better tax break on betting than Victoria. This “tax parity” will be rolled out progressively,

with the biggest returns yet to come – meaning the two-state competition, which has also included big investments in training centers and infrastructure, is far from over. “The tax parity delivered its returns in stages – first in 2016 and then more in 2017 and a big hit in 2018, and an even bigger chunk in 2020. So V’Landys has even more ammunition in the future,” Cornell said.

“

The two big states negotiated a lower tax rate, but the smaller states, with less leverage, were whacked with the full 15 percent

”

Another game changer for racing in Australia was the implementation of the controversial Point Of Consumption Tax (POCT) at the start of 2019, which allows state governments to charge bookmakers on revenue on top of what they already pay to the sport via racefields legislation. It is up to state governments to decide

how much is charged and how much of the POCT collected is given back to racing and in some cases, most notably South Australia, none was given back at all. That meant disaster for South Australian racing and in some ways Racing.com, which paid for non-exclusive rights to broadcast racing from its neighbouring state in 2017. South Australia is a product that has lost its lustre after POCT created a funding shortfall, with drops in prize money and many of the state’s top trainers and jockeys flocking to where the strength is. That strength is in New South Wales and Victoria. “The two big states negotiated a lower tax rate, but the smaller states, with less leverage, were whacked with the full 15 percent,” Cornell said. The battle for racing supremacy is far from over but in the meantime the biggest player remains V’Landys, who has helped create a “vertically integrated” jurisdiction, where individual race clubs – including the once-powerful Australian Turf Club in Sydney – are essentially under his control. That means that new ideas – something that V’Landys has had a lot of over the last decade – come to fruition quickly, in Victoria new initiatives can become mired in a disaggregated system involving three metropolitan raceclubs, Country Racing Victoria and the overarching “governing body” Racing Victoria. The criticism leveled at both states, but mostly Racing NSW, has been that the funding battle has come at a cost, with fixed-odds betting markets becoming less appealing. Professional punter and industry expert Richard Irvine says the POCT tax has created a situation where it is hard for bettors both big and small. Irvine believes treating exchange Betfair less harshly with charges based on revenue, not turnover, would be a great start. “Peter V’Landys and Racing NSW talk proudly about how they have captured and engaged the next generation of racegoers via the introduction of The Everest,” Irvine said in a statement on his Fair Wagering Australia website. “It was a contrarian move by Peter and it has paid off well. But he needs to realize that others in the industry, like Betfair can be contrarian as well. Betfair is here to stay – it’s a great driver of turnover, is hugely popular with younger punters who RNSW so desperately want. The rest of the country’s PRA’s have embraced it – made it pay its fair share but also allowed it to prosper. It’s time for RNSW to do the same and charge Betfair on revenue.”

Asia Gaming Briefings | October 2019

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U.K. sponsorships by Asiafacing firms face scrutiny The future of high-profile sponsorships of British football teams by largely Asianfacing sports-betting and online casino brands could be in doubt if proposals put forward by the UK’s main opposition party come into force.

he UK Labour Party’s deputy leader and spokesperson for gambling-related policy Tom Watson has said he is “concerned about the relationship between overseas gambling operators and British football teams.” In calling for a “full review” of all remote licences issued since 2014, he suggested that the reputation of the UK licensing regime was on the line. “I believe that a UK gambling licence should be a hallmark of credibility and trust,” he said in an article on the PoliticsHome website. “It should not be seen as a platform for overseas operators to use the reputation of British sport as a marketing tool for their own domestic audience, whereby the benefits of the UK market are enjoyed, but nothing is given back to address the harm that is caused.” Asian-facing betting and gaming brands have been a feature of UK football for some years, both in terms of shirt (and now shirt-sleeve) sponsorship and on the perimeter hoardings. Among the Premier League sides that featured

Asia Gaming Briefings | October 2019

Asian-facing brands in the season just gone, Newcastle United had Fun88, Fulham featured Dafabet (which also features on the shirt of Celtic on the Scottish Premiership), Crystal Palace had ManBetX emblazoned on their shirts, Bournemouth was sponsored by M88, Burnley had LaBa360 (deal now lapsed), Huddersfield wore OPE and lastly Wolves had W88 on its shirts. Non-Asian-specific betting brands included SportPesa on Everton’s shirts and Betway at West Ham United. In the close season, meanwhile, LoveBet has signed up to take over the shirt sponsorship at Burnley and Sportsbet.io, a bitcoin-based sportsbook, is now the main sponsor at Watford. David Clifton, a partner at legal consultancy Clifton Davies, said Watson appeared to be blaming the regulator for “allowing overseas gambling operators to advertise their wares by way of shirt sponsorship” when that was the very working of the legislation. Such marketing is allowed “as long as effective steps are taken to prevent British consumers from using the gambling facilities in question,” he added.

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Another legal source who preferred not to be named suggested, however, that the UK Gambling Commission has already privately indicated to operators that it will be applying more stringent investigations into the ownership of any operators from overseas applying for a UK licence. “The Commission is asking more questions about where else in the world they derive their revenue, “ the source added. Watson’s call for a licensing overhaul was cautiously welcomed by leading UK operator GVC, the company behind the Ladbrokes, Coral and Sportingbet brands. “GVC strongly supports a robust regulatory framework to ensure that all operators provide players with a fun, safe and fair environment in which to gamble while protecting potentially vulnerable individuals from harm,” a spokesperson said. “As part of that regulatory oversight we would be fully supportive of a full review of current UK licence holders to ensure that all operators are upholding the standards that the British public expect and deserve.” The trend towards ever more Asian-facing brands using English and Scottish football as a platform for marketing their offerings to their audience in Southeast Asia and further afield is now well-established. “Foreign bookmakers, especially Asian handicap books have famously used Premiership and Championship shirts to raise brand awareness amongst the tens of millions of hard to reach bettors in their home states for years,” says Harry Lang, a marketing consultant with Brand Architects. “The global popularity of our home leagues have been like catnip for these operators vying to capture eyeballs in markets where TV and digital media are banned for betting firms.” The silence from football with regard to its relationship with gambling operators is notable and its significant role in the mushrooming of the visibility of gambling in the UK was not touched upon by Watson. Nevertheless, the English game does come in for some criticism from Lang. “As a business it’s been laissez faire about where the money comes from so if they won’t recognise that their international fan base is being targeted through back door UK licenses then the government will inevitably act the policeman and do the job for them.” “I think the concept of the FA and clubs turning down sponsorship handouts from international bookies out of the goodness of their heart is naïve,” he added.

Asia Gaming Briefings | October 2019

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PHILIPPINES

Clark, Cebu spark investor interest While the Philippinesâ&#x20AC;&#x2122; online industry has been the focus of attention in recent months, the countryâ&#x20AC;&#x2122;s land-based sector has been making steady strides, with the opening of a new resort near the Clark Freeport Zone and progress in Cebu.

SOUTH EAST ASIA

he $250 million D’Heights Resort it has obtained its first regular gaming license & Casino held its soft opening in from PAGCOR, replacing a provisional license July and promises to be one of the granted in 2014. Widus President and Chief Executive largest integrated resorts in the Philippines, with 309 hectares of land spanning officer Daesik Han said the authorization the mountain ranges to the west of the zone. was “a solidified acknowledgment of the Owned by Dong Huang Clark Corp, the government’s trust and confidence for the casino opened with 50 initial gaming tables company’s competency and compliance.” The Widus Casino has 67 tables, 358 slot and 576 slot machines. It will hold a grand opening in October, when the number of machines, and 28 ETGs. Elsewhere, Hong Kong-listed Landing tables will double. The gaming area is spread over four floors International, which had been planning a and will have a VIP floor, to be known at the $1.5 billion casino in Manila, is now on the lookout for another plot of land after its prior D’Heights Club. Albert Pascual, D’ Heights Resort and lease agreement was declared void. The company said its provisional casino Casino’s business development manager says the property will also include an indoor water theme license requires proof of land ownership, or the park, a man-made lake, villas, condominium lease of land, in order to move ahead with its planned development. towers, the Singapore The company was International School, holding a grounda 36-hole golf course, breaking ceremony restaurants, dutyThe Hilton will be for its project in 2018 free shops, as well the first of several when the government as commercial pulled the rug, citing establishments. luxury hotels on the irregularities with its The Hilton will site, with 310 rooms lease contract. be the first of several The company has luxury hotels on the and a Hyatt Regency been given 180 days site, with 310 rooms hotel is also part of from September 10, and a Hyatt Regency the plans. 2019 to secure the new hotel is also part of piece of land, though the plans. it’s unclear whether Philippine it is still focused on Amusement and Gaming Corp. (PAGCOR) Chair Andrea Paranaque City, which was the original site Domingo has said she doesn’t want to see for the resort. On the island of Cebu, which has also any further casino development in Manila, but she has stressed that she is in favour of been a focus for IR investors, projects are casino hubs in areas such as Clark and Cebu. moving ahead. PH Resorts Group’s The Emerald Bay Resort President Rodrigo Duterte imposed a ban on issuing new licenses in 2018 amidst & Casino is scheduled to open in 2020. The concern about over expansion in the industry, five-star property was designed by Steelman although his spokesman has recently suggested Partners. In Phase 1, the property is expected to have 400 rooms with 100 tables and 600 he may be softening his stance. During his fourth State of the Nation electronic gaming machines. In an interview on the sidelines of the Address, Duterte praised Domingo for collecting P16-billion ($313 million) revenue firm’s annual stockholders’ meeting in as of July 2019. He also urged Domingo to Pampanga province in May, PH Resorts President Raymundo Martin Escalona said encourage more gaming. Asked if Duterte is now open to lifting his company could borrow as much as 70 the moratorium, Presidential Spokesman percent through its subsidiaries, and raise 30 Salvador Panelo said: “That would be the percent from equity to finance the $600-million Emerald and another $250-million resort logical consequence of what he said.” The D’Heights resort joins five other planned for Clark. In September, Gokongwei’s Universal casinos at Clark Freeport: Midori, Royce, Widus, Mimosa Pagcor and the newly-opened Hotels & Resorts, was also reportedly granted planning permission by Cebu City for its Isla Fortunegate Casino at Hotel Stotsenberg. Widus Philippines in September announced dela Victoria IR.

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CEZA freezes crypto currency exchange licensees The Cagayan Economic Zone Authority (CEZA) has frozen all crypto currency exchange licensees until mid-2020 after an alleged investment scam involving a Chinese company. CEZA said the suspension would remain in place until a new facility in the zone is completed and can house all the firms in one place, allowing easier oversight. Currently, license holders are being permitted to operate in metro Manila. “We decided to prohibit not only GMQ but all registered OVCEs from operating until the fintech hub building in CEZA is ready to accommodate these companies in mid-2020,” CEZA spokesman Mike Gerald David was cited as saying. “We see this as a preventive move to deter other fintech companies from doing fraudulent activities. Once they are all gathered in a single building, it will be easier for us to monitor their activities.”

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Union calls for new POGO oversight body The Trade Union Congress of the Philippines (TUCP) has called on the government to create a new body to coordinate the regulation of offshore online gambling in the country. The TUCP said it is concerned even more Chinese workers will flood into the Philippines after Cambodia banned online gambling. Manila has suspended issuing new licenses but has not banned Philippine Offshore Gambling Operators (POGO’s), which are an important source of revenue for the country. The TUCP said government agencies have limited authority and they cease to function on areas beyond their mandate. The idea of the coordinating body would be to ensure that POGOs do not fall between the cracks between various ministries seeking to control elements of the business, such as taxation and immigration, as well as gaming regulation, which is handled by the Philippine Gaming and Amusement Corp.

Asia Gaming Briefings | October 2019

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Resorts World Manila

Bloomberry Resorts

Travellers International Hotel Group, a joint venture between Genting Hong Kong and Alliance Global, is the owner and operator of Resorts World Manila. The hotel room count for the group’s three hotels (Maxims Hotel, Remington Hotel, and Marriott Hotel Manila) remains at 1,226. The property is currently in the third phase of its expansion, which will add approximately 940 rooms. It will also include new gaming and retail spaces. Travellers recently announced it plans to delist from the Philippine Stock Exchange, via a tender offer for more than 1.58 billion shares. It said the offer is conditional on receiving tenders from more than 825 million shares held by investors not linked to the group. “The conversion from a public entity into a private company will allow the company to timely address evolving market demands and rapidly changing customer needs without compromising its business strategies to competition,” it said in a stock exchange statement.

Bloomberry Resorts’ Solaire was the first IR to open in Entertainment City and is a 16-hectare integrated resort. The Bay Tower of Solaire consists of a casino with an aggregate gaming floor area of approximately 18,500 square meters (including 6,000 square meters of exclusive VIP gaming areas), with about 1,400 slot machines, 295 gaming tables and 88 electronic table games. The Sky tower consists of a 312 all-suite hotel, an additional ten VIP gaming salons with 66 gaming tables and 223 slot machines. The company is now planning a second integrated resort in Quezon City to be known as Solaire Metro North. Bloomberry plans to break ground this year, with a target for opening in 2022.

City of Dreams The $1.3 billion City of Dreams Manila is owned by Belle Corp and Melco Crown

CASINOS GROSS GAMING REVENUES Q2 2019

PAGCOR

(in million PhP)

Q2 2018 9,066 9,005

Entertainment City Clark

40,514 35,715 2,185 2,124

Thunderbird

533 401

Subtotal Licensed

43,232 38,240

TOTAL

52,298 47,245 (Source: Pagcor)

Asia Gaming Briefings | October 2019

Entertainment’s local unit. City of Dreams Manila has six hotel towers with approximately 950 rooms in aggregate, including VIP and five-star luxury rooms and high-end boutique hotel rooms, a wide selection of restaurants and food & beverage outlets and a 4,612.44 square meters family entertainment center in collaboration with Dreamworks Animation. According to a note from Bernstein Research, the firm stopped proxy betting at the resort as of July. For Q2, Melco noted that greater competition in the Philippines ate into results. Revenues edged higher to $176.1 million compared to $173.9 million, while adjusted EBITDA slipped to $82.8 million from $87.3 million in the comparable period of 2018. Rolling chip volumes totaled $1.9 billion down sharply from $3.0 billion in the second quarter of 2018. Mass market table games drop decreased to $192.8 million from $196.9 million.

Tiger Resort Leisure and Entertainment Okada Manila, owned by Japan’s Universal Entertainment, is the largest resort in Entertainment City and the last to enter the market, with a soft opening in 2016. The property spans 44 hectares and at the completion of Phase One, Okada will have 994 hotel rooms and operate 500 tables and about 3,000 slots. Its centrepiece is the world’s largest coloured fountain, as well as a giant inner city beach complex, known as “Cove Manila.” Universal Entertainment announced that Okada Manila saw a rise in gross gaming revenue in August 2019, driven by a boost in its VIP business. VIP table games revenue went from P790 million to approximately P2.0 billion in August 2019, a more than 150 percent increase year-on-year. Mass table games and gaming machine revenue also showed strong growth in the month, rising 27.7 percent and 33.9 percent respectively.

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Asia Gaming Briefings | October 2019

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MALAYSIA

Genting U.S. expansion raises eyebrows Genting Malaysia is pushing ahead with its overseas expansion plans, though analysts have expressed concern its recent acquisition of Empire Resorts in the U.S. will weigh on long-term earnings.

n August, Malaysia’s casino monopoly announced plans to privatize the currently-loss-making Empire Resorts, the company which owns and operates Resorts World Catskills in New York. RWC began operations on 8 Feb, 2018 and features a 322 all-suite hotel, 1,600 slot machines and over 150 gaming tables. The acquisition announcement triggered a 12 percent plunge in the company’s share price due to concern about the impact of taking on Empire, which had reportedly been close to filing for Chapter 11 bankruptcy protection. The purchase will be made by Genting’s wholly-owned subsidiary Genting (USA), which will acquire 13.2 million shares in Empire from its single largest shareholder, Kien Huat Realty III for $128.6 million. The 13.2 million shares represent around 46 percent of Empire’s common stock. Genting said the move will better position the Resorts World brand in the northeastern US gaming market through more effective cross-marketing with Resorts World Casino New York City. However, doubts about the acquisition overshadowed what were otherwise positive earnings from Genting Malaysia in Q2. The casino operator posted a net profit of RM416.5 million ($99.4 million) in the second quarter of 2019, up 5.3 percent year-on-year. Quarterly revenue also grew slightly to RM2.7 billion. Genting Malaysia’s domestic operations achieved a 10 percent growth in revenue, however, Resorts World Genting reported an overall decline in the volume of business in the gaming segment, due to lower incentives offered to customers as part of cost-cutting initiatives. Analysts from Maybank said that the company has been successful in managing the impact of the 10 percentage point casino duty rate hike, and its corporate tax rate bill.

Asia Gaming Briefings | October 2019

“That said, its recent acquisition of a 49 percent shareholding in Empire Resorts will weigh on long term earnings,” said the analysts. “We may revisit our call if Empire Resorts is successfully turned around financially,” the analysts added. TA Securities said it has a neutral on the acquisition, but noted that Genting may be overpaying for the transaction given Empire’s increasing losses over the past four years. “However, the investment amount of $128.6 million is relatively small for the company to take part in the $1.5 billion development of Resorts World Catskills,” it said. As well as Resorts World Catskills, the company owns and operates a racino in New York City and Resorts World Bimini in the Bahamas. Its parent company, Genting Bhd, is developing the $4 billion Resorts World Las Vegas. The New York property attracted 4 million visitors last year and has more than 6,000 video gaming terminals. It is being expanded to include a new 400-room hotel, more gaming space and dining, entertainment and retail options. The first phase of the expansion is expected to open by the end of this year. Bimini and New York made up about 15 percent of revenue at the group in Q2, compared with 69 percent from Malaysia. Genting Malaysia was also among three companies vying to develop an integrated resort at the former Hellinikon International Airport, near Athens in Greece. The other two companies, perceived as current frontrunners, were Hard Rock and Mohegan Sun. The Hellenic Gaming Commission has mandated that the planned integrated resort at the former airport must include convention facilities and at least 500 slot machines, along with a minimum of 100 table games.

Although Resorts World Las Vegas is being developed by Genting Bhd, analysts at Affin Hwang Capital envisage a scenario under which Genting Malaysia becomes the operator of the property once it is completed. The analysts at Affin Hwang were outlining scenarios which may help Genting Malaysia’s share price to recover its losses following the Empire acquisition and the impact of the gaming tax hike. One of the possible options is a listing of its US assets, including Resorts World Catskills, Resorts World New York, and Resorts World Bimini, they said.

SOUTH EAST ASIA 31

GROSS GAMING REVENUE UK & Egypt

Malaysia

US & Bahamas

Revenue 69%

Adjusted EBITDA 15%

15%

78%

7% 16%

Revenue Q2 2019 vs Q2 2018 Q2 2019 Q2 2018

(in million US$)

112.7

+50%

75.3 7.9

6.8

+16% RWNYC and RW Omni

RW Bimini (Source: Genting Malaysia)

Naga’s Chen to privatise Malaysia resort company Karambunai Corp Bhd’s largest shareholder, Tan Sri Dr. Chen Lip Keong, is planning to privatize the company in a deal worth an estimated RM184.7 million (US$44.2 million), local media reports. According to the company’s website, Karambunai is an integrated company involved in the tourism industry in Sabah, Malaysian Borneo and other parts of Malaysia. The company most notably owns 1,500 acres of prime tourism property in Kota Kinabalu, Sabah. The company’s chief executive officer is the son of Dr. Chen, Mr. Chen Yiy Fon. Karambunai told Bursa Malaysia that it has received an unconditional voluntary takeover offer from UOB Kay Hian Securities (M) Sdn Bhd on behalf of Mr. Chen to acquire the remaining 1.54 billion shares or 26.59 percent interest in the company. Dr. Chen, who is also the CEO and owner of Hong Kong-listed NagaCorp is already the largest shareholder of the company.

The analysts said they believe the assets could be worth as much as US$1.5 to $1.9 billion in 2025. However, for this to go ahead, analysts said that Genting Malaysia would need to first turn the business around, which has been losing money. “Investors would be eager for Genting Malaysia’s management to turn around RWC as soon as possible. The total invested amount is likely to be higher as an equity injection of about US$200 million to US$250 million is still needed to refinance some of RWC’s debt.”

Malaysia clampdown crimps Playtech outlook U.K.-listed Playtech Holdings has cut its forecast for revenue from Asia this year due to a clampdown in Malaysia and increasing competition in China. The group now expects revenue of EUR115 million ($127.4 million) from Asia, compared with its earlier forecast of EUR150 million. “Our business in Asia continues to be materially lower than previously following a significant increase in competition in China in 2018 from new market entrants, while Malaysia also remains significantly lower than its previous highs.” The company said the increased competition in China has led to a highly competitive pricing environment. To offset the impact, it says it is focused on underlining the premium position of its offering in the region.

Asia Gaming Briefings | October 2019

SOUTH EAST ASIA 32

SINGAPORE

Entry levy hikes hit mass market The hike in the casino entrance fee for local Singaporeans is further deterring already declining visitation to the island state’s two integrated resorts by residents, analysts said.

he government hiked the levy by 50 percent from $100 to $150 a day, or from $2000 to $3000 a year in April. The increase, coupled with announced tax rises, came as a sting in the tail to a decision to allow the casinos to expand. The higher fees were seen as an attempt to encourage the operators to put their focus on visitors to Singapore and to help alleviate problem gambling. Analysts noted the impact of the levy in the recently announced second quarter results. At Las Vegas Sands’ Marina Bay Sands property, mass market gross gaming revenue declined 4 percent from the prior year and 7 percent quarter-on-quarter, while slots GGR fell 3 percent. “Mass play was partly impacted by an increase in the locals levy and continued disruption from casino floor redevelopment,” analysts at Bernstein Research noted. “Locals play in Singapore has been declining for some time and the levy increase just adds to the pressure. Singapore is likely to continue to see softness in gaming revenue from Singapore customers, offset by foreign inbound visitation strength and focus on more premium customers,” it said. Last year, just 4 percent of the adult local population visited the casinos, a drop of 50 percent compared to 2010, when the casinos opened. In the same period, problem gambling has also declined from about 2.6 percent of the population to about 0.9 percent in 2017. Since the casinos have opened, the fees have generated $1.2 billion for the government. Genting Singapore, operator of Resorts World Sentosa, also reported weakness in its mass market sector in its latest results. Analysts had expected the company to be affected worse than Marina Bay Sands. Morgan Stanley noted in April that the

Asia Gaming Briefings | October 2019

company gets about 25 percent of its business from Singaporeans and that at least 10 percent of those would be put off by the higher entry levy. Genting’s 2Q19 mass market GGR fell 3 percent year-on-year to $340 million. It was down 10 percent from the prior quarter, prompting Genting to say it will take some time for the mass market to stabilise. Both companies reported lacklustre Q2 results. A low hold rate held back Marina Bay Sands’ VIP GGR, which was up 7 percent on the year and down 20 percent sequentially. Hold in the segment was just 2.5 percent compared with 3.1 percent in the first quarter. Its hold-adjusted EBITDA was flat at $384 million. Genting’s EBITDA rose 11 percent year on year, but it was boosted by a high VIP win rate of 3.7 percent, which was up 110 basis points from the same period last year. Analysts also noted with concern a gain in impairments in Genting’s trade receivables, which rose to $47.3 million, the highest rate since Q3, 2016. Longer term, analysts remain optimistic, saying the positive impact from the operators’ expansion programs will outweigh the impact from the higher levy. Under the expansion plans, both IRs will invest S$4.5 billion to expand non-gaming facilities. In return, they will be allowed to add more gaming space and additional gaming machines. However, given the overall expansion in the resorts, the total ratio of gaming space to non-gaming space will decline. The IRs have indicated that the additional gaming provisions will be targeted at higher-tier non-mass market players, who are mainly tourists. The permission to expand also came with higher taxes. At the end of a current tax moratorium in February 2022, it will also introduce a higher tax structure, which will also include more tiers. For premium gaming the rate will rise to 8

percent from 5 percent on the first $2.4 billion in GGR and will rise to 12 percent thereafter. For mass gaming, the tax rate also gains by three percentage points to 18 percent for the first $3.1 billion in GGR and then 22 percent thereafter. Singapore did get more international visitors in Q1, but according to a breakdown of tourism statistics spending fell 4.8 percent to $6.5 billion. As always, spending on sightseeing, entertainment, and gaming made up the largest part of tourism spending, contributing $1.4 billion, down 3 percent. This was followed by shopping, at $1.4 billion, down 7 percent and food & beverage, at $588 million, also down 7 percent. International visitor arrivals grew one percent year-on-year to 4.7 million visitors. The top visitor market was China at 960,000 arrivals, followed by Indonesia (725,000) and India (300,000).

SOUTH EAST ASIA 33

TOURISM RECEIPTS Shopping

Accommodation

Food & Beverage Sightseeing, entertainment & gaming Other TR components

S$1,3171m

-7%

-12%

-7%

S$1,256m

S$588m

-3% S$1,457m

+2%

S$1,865m

Razer CEO pledges $10m for eSports

Online betting booms at Singapore pools

Razer CEO Min-Liang Tan has said his company will provide $10 million to help boost esports in Singapore. In a post on Facebook, he said that the funding will be provided over the next 12 months for gaming and esports activities in Singapore, including supporting esports teams in Singapore, as well as investing in gaming/esports companies in Singapore, or founded by Singaporeans. “This funding will also go in part to Team Singapore which we are supporting for the SEA Games (which we are also the official esports partner) later this year where esports will be, for the first time ever, a medalled sport,” he said. “We are one of the largest esports brands in the world, and personally as a Singaporean, I’m looking forward to giving back and doing more for my country.”

Singapore Pools, the only body in the island state permitted to offer online gambling, now gets about 60 percent of its revenue through remote channels, compared with 30 percent just three years ago, a senior government official said. Josephine Teo, Minister for Manpower and Second Minister for Home Affairs, was speaking at the 5th Singapore Symposium on Gambling Regulation and Crime. She said she expects the trend towards online gambling at Singapore Pools, which offers lottery and sports betting, to continue. Teo told the conference that the Asia Pacific online gambling market is likely to expand at double-digit rates up to the middle of the next decade, with its market size to grow almost threefold. This growth will pose major challenges for regulators, she said. Another key challenge for regulators will be the rise of new “novel” gambling products, including elements such as loot boxes.

Asia Gaming Briefings | October 2019

INDOCHINA

CAMBODIA

Online ban raises more questions than answers Mey Vann, director general at Cambodia’s Ministry of Finance, pulls no punches when it comes to the nation’s online gambling ban. “It’s gone and it’s not coming back,” he says.However, for industry insiders the situation may not be so clear cut. Asia Gaming Briefings | October 2019

peaking at the recent Mekong Gaming Summit, organised by Asia Gaming Brief, Mey said the government had acted as the situation was out of control. With reports of kidnapping, loan sharks and money laundering rising by the day, Prime Minister Hun Sen had, had enough. His decision is also likely to have been helped by a prod from China, which issued a strongly worded statement through its embassy in the Philippines in August that any gambling targeting its citizens would not be tolerated. However, casinos in Sihanoukville, which have relied heavily on live dealer operations, don’t all appear to have got the message. According to government figures, Sihanoukville has 61 casinos, making by far the largest concentration in the country. Applications in the first half, accounted for 46 percent of the total received and more were submitted in Q3. It’s hard to take in the sheer scale of the construction boom in the beachfront town, which has long been a haven for backpackers. The 20km ride in from the airport on a Wednesday evening took two long hours, with the two-lane road morphing into at least six lanes of bumper to bumper concrete and heavy material trucks. Construction is everywhere, with skeleton upon skeleton of uncompleted buildings, and the resulting mess piling up at street level amidst deep ruts in the road and pools of muddy water. Some of the finished resorts are undoubtedly impressive, hosting some of the biggest Macau junkets in their high-roller rooms. However, many of the casino floors are given over to live dealer tables beaming out to clients, most likely in China. One casino employee said she didn’t believe the ban was targeted at this kind of operation, which is carefully set up to ensure transparency and fair play. Her view was mirrored in several properties, with most saying the ban is aimed at weeding out the fly-by-night operators holed up with a camera and a table and occupying hundreds of hotel rooms. However, one manager at another recently opened operation, was less optimistic, saying the government had been clear that the ban also extends to their live dealer operations hosted from the casino floor. According to media reports, Chinese have been leaving Sihanoukville in droves since the online ban, though it now appears that some of the numbers for the exodus were exaggerated and the town certainly still appeared to be a hive of Chinese activity. The likely impact of the ban is hard to quantify and there is an argument that evicting the online

INDOCHINA 35

operations will create more space for tourists. Ben Lee, managing director of iGamiX Management and Consulting, told the conference that on a recent trip to the town, only three of the storeys in his 15-storey hotel were available for paying guests. The remainder housed about 9000 Mainland Chinese hosting online operations. “We do have serious gamblers and they are land based,” Daniel Li, CEO of Cambosia International told the conference. “However, you cannot get a hotel room. Having the online operators move out will help Sihanoukville regain its lustre. It will be a beautiful resort.” The online operations are mostly outsourced and the casinos receive a share of revenue. Some say that without that revenue the casinos will find it hard to survive as there is not enough foot traffic to the area. However, there are more than 30 flights a day from Sihanoukville International Airport, with the majority to Mainland China. There is also an ongoing business rationale in the

Sihanoukville Special Economic Zone, located 3km from the airport. Spreading over an area of 11 sqm, the zone will host 300 companies once fully built out with plans to employ as many as 100,000 workers. As costs rise in China, many entrepreneurs are shifting operations to cheaper Southeast Asian destinations and Cambodia, with its close political ties with Beijing, has been a key beneficiary. Mey told a conference panel that the government was investing heavily to improve urban planning and infrastructure, which has not been able to keep pace with rampant development. This will include a new highway between Phnom Penh and Sihanoukville. Still, industry insiders doubt that the online has gone for good and say this is more of a reset button while the government finds a way to regulate activities. There has been talk of appointing a master licensor, with major industry names already jostling for position.

NUMBER of operating casinos by location 61

Y2017

Y2018

Y2019 (est.)

22 17

12 14

12 12 13

25 25

16 16 11

Phnom Penh

Sihanoukville

Poipet

Bavet

Other Cam-Thai border

Other Cam-VN border

(Source: Ministry of Finance)

CDC approves two new hotels The Council for the Development of Cambodia recently approved two new hotel projects in Sihanoukville worth $379 million, according to local media reports. The projects are backed by Chinese investors, despite the current exodus of Chinese nationals from the city. The two five-star hotels by Xigang V-Continent International Investment Co Ltd and Hai Gang Grand Hotel Co Ltd have a combined total of 2,911 rooms, said the CDC. Xigang V-Continent International Investment’s $226 million hotel will comprise 1,111 rooms and will be located in Sihanoukville’s Commune III while Hai Gang Grand Hotel’s $153 million investment will comprise 900 rooms and be located in Commune IV, the report said. It was not specified whether the hotels will include casinos.

Draft regulations seen early 2020 Cambodia is expected to publish longawaited legislation to regulate its gaming industry in early 2020, with the bill scheduled to introduce a system of taxation based on gross gaming revenue. Ros Phirun, deputy director general at the Ministry of Finance said in a speech at the Mekong Gaming Summit in Phnom Penh, that the tax rate will be different for casinos operating inside integrated resorts and those that are not within an IR. He didn’t disclose the actual rate. Cambodia has been working on a draft of its casino regulation since 2010, with the rules expected to have been published this year. The government is hoping a sounder regulatory framework will help to attract further investment into the country’s booming casino sector.

Asia Gaming Briefings | October 2019

INDOCHINA 36

VIETNAM

Locals gaming underwhelms Vietnam’s hotly anticipated locals gaming program has got off to a slow start, with remote locations and red tape cited as key factors in deterring visitation.

he government announced in 2017 that it would allow locals to gamble in a three-year pilot program to assess the impact on its nationals. The conditions were a minimum age of 21 and a minimum monthly salary of at least $445. It also said only integrated resorts fulfilling a $2 billion investment criteria would be selected. At the time, the announcement was widely seen as being a game-changer for integrated resorts in Vietnam, potentially attracting much higher levels of foreign investment. Many of the larger operators, such as Las Vegas Sands, have publicly stated they will not invest in jurisdictions which don’t have local support.

Asia Gaming Briefings | October 2019

Since then enthusiasm has waned. The government restricted the program to just two IRs, one on Phu Quoc island in the far south, and one that is still not completed in Van Don in the far north. The Corona Casino & Resort opened in January this year. The five-star property features hotels, a golf course, spa, safari park and an amusement park, as well as a convention centre and bars and restaurants. The casino spans 18,800 sq m over two floors and features 100 tables, 1000 slot machines and 843 electronic gaming machines. It has 32 fusion roulette machines, as well as stadium-style games. It has a VIP casino on the 8th floor with views of the coast.

The resort is said to be doing swift business on the non-gaming side, but the casino has not been flooded with players from Vietnam. “Vietnam has promoted gaming on Phu Quoc but statistics show more people are getting on planes to Phnom Penh, or are driving up to Bavet, than are flying down to Phu Quoc,” Tim Shepherd, director of Fortuna Investments said at the Mekong Gaming Summit in September. “It seems that putting casinos that allow locals in far remote locations and expecting locals to go there does not at this point seem to make sense, though it’s early days.” Part of the problem may be the lack of clarity in terms of what a Vietnamese citizen needs to produce to access the casino.

INDOCHINA 37

“By all reports participation has been somewhat limited,” Matthew Landry, managing director of Strategic Market Advisors said. “My understanding it’s still not clear what documents you need. One entrant submitted one document that was circulated, passed around and then denied and then another was given and he was admitted in a process that took 20 minutes to half an hour. That’s not the customer experience that you want to see.” Corona’s website lists six ways a local can provide proof of minimum income. These include “a certified copy proving the monthly income, monthly payroll or pay decision issued by the player’s employer within the last 3 months from the date on which the player gambles at the casino, demonstrating the player’s monthly income exceeds 10 million Vietnam dong, or a certified copy of a lease on a house or properties held by the player is also valid according to the regulations if it demonstrates a total monthly rental exceeding 10 million Vietnam dong.” There is greater optimism about the second project that will be open to locals in

Van Don, though at present progress appears to have stalled. The Van Don project is close to the Chinese border, so is likely to receive support from Mainland Chinese. It is also close to the World Heritage Site of Ha Long Bay, which is already a popular tourism destination in itself. However, there is still no clarity on when the resort will be completed. “It will be interesting to see what happens in Van Don,” Landry said. “It’s a bit further north and we will have a little bit better access for a domestic population as well as foreign players.” Landry said there had been concern about lease terms and taxation of both the project and the wider economic zone nearby and he didn’t see any immediate prospect of progress. Although foreign investors had been keen for Vietnam to open its doors to local gaming, the key motivation for the government was to help stamp out illicit gambling at home and to bring back some of the money being lost by Vietnamese crossing the border to play. One study has said that the country may be forfeiting about $800 million a year to casinos in Cambodia. There had been speculation many of these border properties would not be able to survive if Vietnam allows locals into casinos at home, although so far there appears to have been little to no impact. Longer term, industry participants are confident the government will continue to support the growth of IRs in Vietnam and will potentially expand the pilot program to cover other properties in the country. “The idea of an integrated resort is very well aligned with Vietnam’s long-term aspirations to grow its tourist industry and I think resorts like Ho Tram are extremely popular from a tourist perspective,” said Maxfield Brown, manager, business intelligence, at Dezan Shira & Associates. “If the Vietnamese government can figure out a way to syphon out some of the illicit gambling that is going on into these IRs and prevent the local population from being harmed, which I think they can, I am fairly confident they will grow with the IR model.” In the meantime, strong tourism arrivals, coupled with business investment from China, Korea and Japan is expected to support Vietnam’s casinos. “Factory owners moving to Vietnam and then working there become your natural players,” Shepherd said. “That’s the correlation between investors and an uptick in gaming revenue.”

VISITORS ARRIVALS International Arrivals 8 months 2019 vs. 8 months 2018 (%) Thailand

+46.3%

Taiwan

+27.1%

South Korea

+22.5%

Indonesia

+19.7%

Pjilippines

+18.2% (Source: GSO)

Hoiana golf course holds soft opening Hoiana, which will be Vietnam’s largest integrated resort once completed, held a soft opening of its golf course on Sept. 23. The 18-hole course at the Hoiana Shores Golf Club was designed by Robert Trent Jones II. It will be the first facility in the resort to open to the public. The $4 billion property was scheduled to open late this year, though Suncity Group, a major shareholder, recently suggested there may be a delay until 2020. The first phase will feature more than 1,000 rooms, suites and villas, managed by Rosewood Hotel Group, 4 kilometers of pristine beach, a suite of beachside pools and restaurants, a stand-alone beach club, and a casino managed by Suncity Group.

MoF mulls easing investment limits Vietnam’s Ministry of Finance (MoF) has proposed easing minimum investment regulations for building integrated resorts to attract more investment. The MoF has suggested that capital invested in other projects in Vietnam’s special administrativeeconomic zones (SAEZs), or infrastructure projects connected to the zones, be taken into account when calculating the minimum capital an investor needs to disburse before receiving an investment certificate. Under Vietnam’s regulations, which were introduced in 2017, investors must commit a minimum of $2 billion and must make a minimum disbursement of $1 billion. That’s a reduction from the $4 billion level set in earlier drafts of the decree. However, the reports added several ministries are opposed to the MoF proposal, including The Ministry of Planning and Investment and The Ministry of Defence. One objection is that it would be unfair to those who have already invested.

Asia Gaming Briefings | October 2019

TH E STAR E NTE RTAI N M E NT G ROU P IS TH E L ARG EST PRIVATE SECTOR I NVESTOR I N AUSTR ALIA’S TOU RISM SECTOR A commitment to multi-billion-dollar developments in Queensland underpins The Star Entertainment Group’s vision to become Australia’s leading integrated resort company. These development projects across Brisbane and the Gold Coast will expand The Star’s asset portfolio to approximately a dozen hotels (including new brands The Ritz-Carlton, Rosewood and Dorsett), more than double the number of award winning bars and restaurants to around 130 and generate thousands of jobs for Queenslanders.

Q U E E N S WHARF B R IS BAN E Expected to open in 2022, the $3.6 billion integrated resort on the Brisbane riverfront will be a game-changing development for the CBD. It will create a vibrant new playground and embed the city as a global tourism, leisure, and entertainment destination. Once fully operational, Queen’s Wharf Brisbane will feature a stunning mix of heritage and contemporary architecture; expansive dining and entertainment offerings; and recreational options to suit every taste and budget. For more information visit: queenswharfbrisbane.com.au © Destination Brisbane Consortium. Concept image only. Subject to all approvals. Asia Gaming Briefings | October 2019

TH E DA R LI N G G O LD COAST The centrepiece of The Star Gold Coast’s initial transformation, The Darling hotel, opened in March 2018. The goal for The Darling was to ensure every element offered an unprecedented level of luxury and sophistication not previously available in Queensland. This ambition was fulfilled recently with The Darling named Best Deluxe Accommodation at the National Australian Hotels Association Awards 2019.

For more information visit: thestargoldcoast.com.au

DORSETT HOTEL AND RESIDENCES In August 2018 construction of the Dorsett hotel and residences commenced. Scheduled to open in 2022 the Dorsett hotel will feature 316 hotel rooms, 423 residential apartments and exciting new restaurant and bar concepts, together with a recreational deck with ocean views and a resort pool. The internationally-acclaimed Dorsett hotel brand will drive increased international aware ness of The Star Gold Coast, especially in Asia where Dorsett Hospitality International owns and operates the majority of its 54 hotels. © Destination Gold Coast Consortium. Concept image only. Subject to all approvals.

MEGA MASTERPLAN In November 2018 The Star Gold Coast masterplan was approved by the Queensland Government. If fully realised, the masterplan could see The Star Entertainment Group and its Hong Kong-based partners Chow Tai Fook and Far East Consortium inject more than $2 billion of additional investment into South East Queensland tourism. In addition to The Star Grand, The Darling and the Dorsett hotel tower, the extended masterplan provides the opportunity for the construction of another four towers and world-class resort amenities. These would include a stunning recreational deck, water features and hero pools, a day spa, new dining precinct, more bars and cafes, exciting entertainment facilities and a night club.

For more information visit: development.star.com.au © Destination Gold Coast Consortium. Concept image only. Subject to all approvals.

Asia Gaming Briefings | October 2019

AUSTRALASIA

AUSTRALIA

Probes to focus on probity, but red flags unlikely Australian regulators are likely to focus on probity issues in their investigations into Crown Resortsâ&#x20AC;&#x2122; operations, although experts donâ&#x20AC;&#x2122;t expect any major red flags to be raised. Asia Gaming Briefings | October 2019

AUSTRALASIA

he country’s gaming industry is under with the management of the casino, and person the spotlight following a July investi- of good repute, having regard to character, gative report by The Age, 60 Minutes honesty, integrity and other matters,” said the and the Sydney Morning Herald, Victorian regulator in a statement. which made a series of explosive allegations Linda Woo, a former gaming regulator against the company, including dealing with for the Queensland government, said it is junkets with links to organized crime, money common for regulators to conduct these kinds laundering through its casinos and working of probity checks, as junket operators have with immigration to fast track visas for VIPs. long been known for their potential links to The report was met with mixed reactions organized crime. from the industry, with some saying it “This was always a risk with junkets, appeared to lack in-depth knowledge about especially when casino licensees deal with junket standard practices. operators from countries with a long history Crown’s Australian competitor Star Enter- of organized crime. Probity investigations into tainment Group came out to defend the use of the suitability of junket operators are always a junkets, which were featured in a particularly challenge,” said Woo. negative light, pointing out they are a well-esThe NSW Independent Liquor and Gaming tablished feature of the gaming industry. Authority also launched its own inquiry, also Jamie Nettleton, a partner at Addisons, with the aim of determining the suitability of recently spoke to Asia Gaming Brief about his Melco Resorts as a substantial shareholder of initial reaction. Crown Resorts. “I cannot speak for the The Honourable Patricia industry but it was hard Bergin SC was appointed to to identify the real issues preside over the inquiry, and Probity [from the report]. There focus on three distinct investigations into would were a lot of assertions, areas of investigation – the the suitability of many of which were made 19.99 percent share sale with limited knowledge agreement between Melco junket operators of the sector, to the extent Resorts and CPH Crown are always a that many of the comments Holdings; investigation seemed sensationalized,” whether Crown remains challenge. he said. “a suitable person to hold Crown’s board of a restricted gaming license directors was quick to for the purposes of the issue a statement vehemently denying the Casino Control Act,”; and the effectiveness allegations. In an FY19 results filing, Crown of the Casino Control Act and ILGA’s current Resorts chairman John Alexander described ability to respond to “the growing complexity the media reporting as having “unfairly of both extant and emerging risks for gaming sought to tarnish Crown’s reputation.” and casinos.” Still, Australian regulators have taken When asked what would be the main drivers the allegations seriously and have been swift for regulators to conduct these investigations, to announce their own probes into Crown’s Woo said it is paramount for the government alleged wrongdoings. to ensure the ongoing suitability of casino Much of this investigative work is in relation licensees to hold a license in their state. to the probity assessment of Melco Resorts, a “Any concern around associates of casino casino company run by Lawrence Ho, which operators must be investigated to ensure that has been positioning itself to purchase a 19.99 the licensee continues to be a suitable entity to percent stake in Crown. hold a casino license.” The conditions of Crown’s license prevent The probe appears to have spooked Melco the company from doing business with anyone and Crown, which announced in late August on Australia’s “banned companies list,” which that it is putting the purchase of a second includes companies tied to casino mogul tranche of shares in Crown on hold, pending Stanley Ho, Lawrence Ho’s father. the completion of the NSW regulatory probe. “In circumstances where a person is “The company and CPH (Crown Holdings becoming an associate of the casino operator, Pty) have agreed to allow more time for the the Commission must inquire into the change relevant Australian regulatory processes to be to determine whether it is satisfied that the completed before completing the acquisition of person is a suitable person to be associated the remaining 67.67 million shares.”

“

”

GROSS GAMING REVENUE Casinos $5.19b

+0.4%

Gaming machines $12.07b

+4.2%

Sports betting $920.6m

+13%

Racing $2.94b

+4.1%

Total gambling expenditure 2016/2017 $23.65b

+3.9%

(Source: Queensland Govt.)

Police drop Tabcorp bribery probe The Australian Federal Police has dropped the investigation into foreign bribery allegations from wagering giant Tabcorp to the family of the Cambodian prime minister, saying it was not possible to obtain the evidence required for criminal prosecution. Tabcorp allegedly paid A$200,000 (US$137.4 million) to a consulting company connected to the sister of Cambodian Prime Minister Hun Sen during a time when the company was examining ways to expand into Asian sports betting. The funds were allegedly channeled via the United States to Cambodia in early 2010, an act which has been under investigation from Australian and overseas anti-bribery agents since 2016. “In 2019 the AFP conducted a review of this long and thorough investigation and found it is not possible to obtain the evidence required to support a criminal prosecution. The AFP now considers this matter finalized.”

Betfair told to cease betting on Hong Kong Betfair Australia has been ordered to stop offering bets on Hong Kong racing in a cease and desist order from the Hong Kong Jockey Club. In an open letter to Betfair CEO Tim Moore-Barton, the HKJC said it had no prior knowledge that the company was planning to begin offering wagers on Hong Kong races. “The Club takes this matter seriously as it represents a serious integrity issue and an equally serious infringement of its intellectual property rights,” HKJC secretary Philana Poon said “In addition, creating the opportunity for people to back horses to lose is against what we all believe in.” “As a matter of principle and consistency, the Club considers that Betfair ought not be permitted to exploit overseas racing where there has been no approval from the relevant overseas racing authority.

Asia Gaming Briefings | October 2019

AUSTRALASIA 42

New zealand

Red tape tangles expansion plans SkyCity Entertainment is grappling with capacity issues, as licensing regulations in New Zealand make expansion of its properties difficult.

he company this week reported its annual results, posting an almost 15 percent drop in reported profit and a slight increase in normalised profit. Management also presented investors with an update on the status of its projects and future plans. New Zealand’s only listed operator has three properties in its home country and one in Australia. The company made a significant comment in relation to its position in Queenstown where it has recently acquired 1.01 hectares of prime development land on the edge of town. SkyCity currently owns both casino licences in the town, but neither of the downtown sites is in premises the company regards as satisfactory and expansion on either site would be very difficult; hence the attraction of a whole new site.

NZ pushes gaming industry development

REVENUE BY BUSINESS Auckland

+3.8%

Hamilton

+1.9%

Queenstown/ other Adelaide (A$)

+2.2% +0.2% (Source: SkyCity)

SkyCity workers strike for improved pay Workers at SkyCity Casino in New Zealand have been taking industrial action to improve their weekend and night-time pay rates. Unite union’s national secretary, Gerard Hehir said the workers were seeking better pay rates for weekend and night work. The workers staged strikes on two consecutive weekends in late September to push their concerns. There are around 2000 employees at Skycity, and around 900 union members, most of which are front of house staff.

Asia Gaming Briefings | October 2019

However, there is a significant legal difficulty. SkyCity cannot get a new casino licence because there is a government-imposed freeze on the granting of licences and the current law does not allow licences to be transferred from one set of premises to another even within the same city. This means that the only way SkyCity can operate its proposed new hotel with a casino is to persuade the government to amend the law to allow a transfer to take place. CEO Graeme Stephens explained that the company will do a feasibility study of the project with the assumption built in that the hotel has a casino licence. And if the project is attractive, then it will seek regulatory approval to make this possible. The company would talk to industry regulator, the Gambling Commission and the Minister of Internal Affairs about getting amending legislation put through Parliament.

New Zealand’s fledgling gaming industry is pushing a plan for government assistance to help it become a billion dollar export earner in an industry currently worth $258 billion. A report on the state of the industry has won initial support from government ministers who like the growth model and the goals the industry is promoting. The report prepared by the New Zealand Game Developers Association wants to expand exports from $143 million in 2018 to a billion dollars by 2024. The gaming industry is seeking to copy the success of New Zealand’s film and music industries which have government and industry partnerships to steer growth in the industry and development funds for research and innovation. “The past six years have seen the (New Zealand gaming) sector grow by 39 percent annually to become a $143 million industry, with a number of companies already shining,” Economic Development Minister Phil Twyford said.

If amendments were not possible, SkyCity would then look again at whether the hotel development was a sound investment in its own right. All of this will take time, perhaps several years. The company also has another regulatory issue on its hands, but a solution looks more immediately achievable. In Hamilton – a 170 000 person city south of Auckland in a prosperous farming area – the company’s casino is small and the present site is capacity constrained although SkyCity does own more land adjacent to its current casino. Stephens said demand for gaming machines was greater than for gaming tables and particularly when the casino was busiest on Friday and Saturday nights it was unable to meet demand. Gamblers were being turned away, and he thought they simply went to clubs and pubs or gambled online.

AUSTRALASIA 43

The company is seeking to surrender three tables in return for 60 more machines, on the basis that the total amount of gambling would likely not increase but would take place in SkyCity’s premises rather than elsewhere. “Surely we are a better and safer place than other venues in the city,” he said. Gambling legislation explicitly allows a tables for machines swap although SkyCity’s move was unprecedented and has never been sought in New Zealand before. There has been strong opposition locally to any increase in the number of pokie machines or a greater concentration of machines regardless of ownership. Industry regulator, the Gambling Commission, is holding a public hearing on the company’s application in Hamilton in November. Stephens noted that if the swap were allowed, it would encourage the company to develop a new hotel next door to the casino, which he said would be good for the city. In Adelaide, the expansion was “on track, on time and on budget,” although the disruption from construction would continue through to the end of September 2020, and “we hope to be open fully for business again in October 2020.” In Auckland, the opening of its $700

million International Convention Centre development has been pushed back a couple of months “towards the end of 2020”, and a dispute with the construction company Fletcher Building for nearly $40 million over delays and cost overruns is still to be resolved. In terms of the annual results, Stephens said management was “happy with that.”

are now “lowerWegeared and

focused on efficient capital allocation.

”

“We are now lower geared and focused on efficient capital allocation,” he told an analysts briefing. The flat result was attributed to a challenging operating environment and a series of one off factors, including the sale of the Darwin casino during the year, settlement of a tax dispute in Australia, and adjustments to revenue to meet new

accounting standards. “In total all the adjustments largely offset each other, CFO Rob Hamilton said. Karl Williscroft of Craigs’ Investment Partners said the key takeout from the result was no material surprises, hence the muted reaction from the market. “Most business units are broadly in line with expectations and growth in the key Auckland EGMs in the second half. Major projects in Auckland and Adelaide to be completed by the end of 2020. Some construction disruption in Adelaide noted,” he said. Otherwise he said most properties were trading in line with no surprises which was “a nice change.” “Importantly the FY20 guidance is for some growth” in normalised EBITDA on a like for like basis. The company is expecting domestic and international economic environment to continue to be challenging with ongoing cost pressures. “With a dividend yield of about 5 percent and also an on-market buyback we would expect the share price to be supported to an extent in this low interest rate environment.” The outlook for FY 2020 was more cautious than in the past; revenue and costs were both expected to increase.

Asia Gaming Briefings | October 2019

SUPPLIER SPECIAL REPORT 44

G2E 2019

Tribal education This year’s Global Gaming Expo (G2E) returns to Las Vegas, to take place at the Sands Expo and Convention Center from October 14 -17, 2019.

he conference and exhibition is presented by the American Gaming Association (AGA) and organized by Reed Exhibitions, and is a staple of the global gaming industry’s calendar of events. The show boasts that it is as being the largest gathering of global, commercial and tribal gaming professionals in North America, with more than 27,000 gaming industry professionals in attendance. With expanded educational tracks and firsthand experiences with new products, G2E 2019 will cater to everything from traditional casino fare to sports betting and non-gaming amenities to digital products. Returning to the show this year is the Sports Betting Symposium (SBS), which will gather experts from around the world to share their experience since the United States Supreme Court struck down the Professional and Amateur Sports Protection Act (PASPA) last May, opening the gates for states and sovereign tribal nations

to legalize sports betting and establish safe and effective frameworks for consumers. “This is a monumental time for sports betting in America, and with so much progress since our inaugural Sports Betting Symposium last year, we’re excited to expand the program to explore the latest in this brand-new U.S. market and continued growth opportunities for states and sovereign tribal nations.” The conference segment will also place a spotlight on the tribal gaming industry. On the Monday, D.J. Eagle Bear Vanas, the internationally-acclaimed motivational storyteller, leadership speaker and member of the Ottawa Nation will deliver a keynote speech. “Tribal gaming is a true success story in communities across the country and an essential component of G2E’s educational program,” said Allie Barth, vice president of industry relations for the American Gaming Association. “D.J. Vanas is a pioneer in the tribal community and is an asset to our tribal gaming educational program,” said Korbi Carrison, G2E’s event director. “We are thrilled to have him share his leadership and intuition with the world’s top gaming leaders at G2E.” Also featured is the return of G2E Las Vegas’ “Innovation Lab”, a series of fifteen-minute TED-style talks and demo kiosks, where attendees can learn about cutting-edge technologies such as disruptive technology, new uses for existing technology, emerging trends. “It’s important that we provide a platform to address key topics at G2E that may dramatically affect the gaming landscape,” said Barth. “Now in its fourth year, the Innovation Lab has evolved to inspire conversation and spark creativity on issues like artificial intelligence, cyber defense and more.” The Innovation Lab will feature 20+ different sessions encompassing innovation and technology throughout the gaming ecosystem. The exhibition also welcomes 90+ new exhibiting companies at its 2019 show. You can find out what the key suppliers are showcasing at the show this year in the pages that follow. If you are in Las Vegas for the show, feel free to reach out to the team at Asia Gaming Brief. Have a great show. AGB Team.

Asia Gaming Briefings | October 2019

SUPPLIER SPECIAL REPORT 45 Aristocrat

Star Trek: The Next Generation Slot

ristocrat has licensed Star Trek: The Next Generation from CBS Consumer Products for a new game that will further expand the company’s landmark EDGE X cabinet’s library of content. Aristocrat’s all-new EDGE X cabinet features two stacked, horizontal, curved 43” LCD screens displaying panoramic views, with stereo symphonic surround sound and a virtual button deck, all in a cabinet

that occupies a larger-than-life footprint. Attendees at Global Gaming Expo in Las Vegas will experience the game in Aristocrat’s booth. Aristocrat will also showcase the SHOWTIME / CBS Consumer Products licensed slot game Billions, which appears on Aristocrat’s innovative flame55cabinet. “We are big fans of Star Trek: The Next Generation and our design and development teams have taken that inspiration and

combined it with their passion for play. The result is an innovative game featuring sights and sounds from the series that takes full advantage of the EDGE X cabinet’s cinematic design, and will entertain longtime fans and newer fans alike,” said Jon Hanlin, vice president commercial strategy, gaming operations. Discover Aristocrat’s line up of new products at their stand, booth #1133.

Asia Gaming Briefings | October 2019

SUPPLIER SPECIAL REPORT 46 Advantech

Gaming Intelligence

dvantech’s theme of “Elevating Gaming Intelligence” will highlight AdvantechInnocore, which stands poised to introduce its game-changing solutions, including new LCD monitors, advanced storage devices, high-performance graphics cards, and new gaming platforms. “This year’s G2E theme, “Gaming Intelligence”, aptly encompasses our products, our knowledge of the industry, and our added value hardware and software solutions,” commented Craig Stapleton, Advantech’s product director. “We will be showing the latest technology for the intelligent heart of today’s sophisticated slot machines, as well as our range of software solutions, and other hardware components to boost performance, efficiency, and security for the highly competitive world of commercial gaming. We could not be more excited to attend!” Advantech has also launched a new gaming platform, DPX-S450, and new Product Family - DPX-M Series. The DPX-S450 is Advantech-Innocore’s latest motherboard for the gaming industry. It features the AMD’s top-end embedded platform, V1000 Embedded Ryzen, giving customers superb performance with fieldproven reliability and the peace of mind of massive scalability and future upgradeability as well as the longevity only the world’s leading industrial PC manufacturer can offer. The DPX-S450 is available as both board or packaged in a rugged cabinet-ready logic box. The second new platform that will be launched at the show is the DPX-M270. Following the huge success of the DPX-E250 and DPX-E265 Advantech is defining a new series of products – the M-Series. These products are very high performance, scalable platforms for gaming customers who require a separate gaming IO/security solution on a module. The DPX-M series boards feature gaming optimized features for security and serviceability without the full IO /security suite of our S series and E series products.

Asia Gaming Briefings | October 2019

AGS

Orion Rise

GS is set to showcase new product innovations that highlight the game and the player experience at G2E Las Vegas. AGS will showcase two new hardware platforms and a slot merchandising solution in its expansive booth #1253 and feature more than 70 game cabinets and 30 unique slot titles, in addition to a host of innovations from its table products and interactive divisions. In its Slot Product lineup, AGS will unveil two stunning new Orion cabinets. The Orion Rise cabinet delivers eight feet of gaming excitement in a dual-screen platform, highlighted by a dramatic 55-inch 4K LCD HD top monitor, 24-inch LCD HD bottom monitor, premium button deck, custom audio, and LED totem displays – all of which provide an immersive, cinematic game-play experience. The Orion 49C, AGS’ first curved platform, features a 49-inch Ultra HD curved LCD display, digital topper, and premium LCD multi-touch button deck integrated with low-profile dual PLAY buttons surrounded by lights. Both cabinets feature AGS’ signature U-shaped lighting design with more than 400 game-synchronized LED lights that celebrate wins and change colors throughout the game-play experience to add excitement and attraction.

AGS propels its table business with new proprietary table games and side bets and an array of innovative table solutions. Taking center stage will be AGS’ Bonus Spin Xtreme, a pioneering progressive side bet system that can link all table-game progressives in the casino and innovatively uses three concentric wheels to reward all participating players with a prize – something never before available for community-style games like roulette, baccarat, and craps. AGS will also demonstrate its STAX Progressive 2.0, with new O-WAP functionality and seasonal themed backgrounds, and its new PAX S single-deck packet shuffler designed for specialty games. From its Interactive division, AGS will highlight its online real-money gaming AxSys Games Marketplace and large library of titles featuring AGS top-performing games. See the team at AGS at booth #1253 at G2E Las Vegas.

Ainsworth

QuickSpin Evolution

he evolution of the popular QuickSpin brand will highlight offerings from Ainsworth Game Technology at the Global Gaming Expo in Las Vegas. QuickSpin’s titles such as Super Charged 7s, Super Lantern 8s, Super Crystal 7s, and the recently released MultiPlay Super Charged 7s will take center stage alongside at least six new wheel games designed for maximum player engagement and strong casino operator return-on-investment. “G2E is the perfect time for Ainsworth to showcase the growth of our product lines, especially in the QuickSpin family,” said Ainsworth President – North America Joe Bertolone. “We will truly show how through developing QuickSpin content we are evolving the wheel and evolving Ainsworth’s core product offerings.” Visitors to Ainsworth’s booth will see several new QuickSpin titles that offer innovative uses of the giant wheel on the sleek A640 portrait screen cabinet. Turbo Charged 7s offers four unique Linked Progressive jackpots with QuickSpin

gameplay. The multi-denom configurable titles give penny players a chance to chase top awards starting at $2,500, with even bigger jackpots for larger denoms up to a huge $25,000 jackpot for 10-cent players. Super Lit Vegas adds to the QuickSpin family by offering a persistent state style of game that enables players to collect wheel spins over seven spin cycles. On the seventh spin wilds and wheel symbols are revealed for big wins. Yet another offering – Super Charged 7s Classic -- takes QuickSpin gameplay to the High Denomination market with a five-line or nine-line game. This new title maintains a high wheel spin frequency on 25-cent and $1 denominations. Find Ainsworth at G2E Las Vegas at booth 1259.

SUPPLIER SPECIAL REPORT 47 BetConstruct

Talking Sports Betting

etConstructâ&#x20AC;&#x2122;s team joins the largest igaming platform of North America to explore igaming opportunities for the US market. This year the company travels across the globe to showcase its award-winning products in the capital of gambling. Among the products is BetConstructâ&#x20AC;&#x2122;s Sportsbook software that is available across all channels including desktop, retail, and mobile. The product provides all American sports types such as American football, soccer, baseball, hockey, basketball, etc. BetConstruct also introduced market-specific betting types to ensure a one-of-a-kind betting experience for the players.

Also on show is its Fantasy Sports product which has been updated with new market-related features and localized with new design. Fantasy Sports Software includes the most popular American sports types such as American football, basketball, hockey, baseball and soccer (MLS). The company will also introduce a special package of US market-related products such as Predictor and Sweepstake games that will help operators to have more liquidity, teach their players to play and be the sports professional. A sweepstake is a type of content where a prize or prizes may be awarded to a winner or winners to draw attention to a particular product. On the other hand, Predictor, as

the name implies, is a game allowing users to guess the outcome of future events for free. The topics vary from entertainment to sports. BetConstruct will show off its innovative digital voice-activated gaming assistant Hoory and all-in-one igaming solution SpringBME at its stand. Apart from exhibiting, the company is due to deliver a presentation on its sports betting solutions specifically for the US market on October 15, at 7:30 PM. The company will also join the Vegas Baby Party, to chill and network together with the industry. Find BetConstruct at booth #4818 during the show.

Asia Gaming Briefings | October 2019

SUPPLIER SPECIAL REPORT 48 Alphaslot

BBIN

Connecting with Players

lphaslot is a cloud-based application, aimed at seamlessly integrating digital avatars and utility tokens on gaming floors, enable in-game strategies to attract new players, and staying connected with players even when they are not on the gaming floor.

Leap to Future Prospects

Alphaslot’s Application Program Interface (API) is a universal programming socket for the gaming world, with realtime updates and the ability to process transactions to manage digital collectibles on the blockchain for gaming operators and game developers.

ARUZE

Fun and Entertaining Products

ruze Gaming is set to demonstrate its passion for fun and entertaining products at G2E Las Vegas in October. Exhibiting for the first time at G2E will be the new Muso Curve-43 Hybrid cabinet. Building on the great features of Muso Curve-43, the new cabinet includes an integrated base that adds a comfortable footrest and an exciting lighting experience. Maintaining the unparalleled design of the award-winning Muso Triple-27, the LED web lighting now extends the full length of the cabinet with the introduction of the Muso Triple-27 Hybrid. The Muso Curve-43 Hybrid Reflection package also adds an elegant and exclusive design to the casino floor. This pod design is a combination of the Muso Curve-43 Hybrid and mirrored pod fillers. This

Asia Gaming Briefings | October 2019

product offering creates an upscale premium package while keeping a simplistic appearance. This minimalistic design makes the Muso Curve-43 Hybrid cabinet the main feature. The Muso Curve-43 Hybrid Reflection package is available in 3 or 4 pod configurations. This year at G2E, Lucky Roulette breaks from its standard 8-station configuration with an unusual layout of Lucky Roulette that allows for remote viewing and showcases the product’s full capabilities. The 12-station installation shows the potential of the 50-station capability of this product. At G2E 2019, Aruze displays its continued commitment to providing the best products and configurations to meet the ever-changing needs of today’s casino floor, see them at booth # 2659.

ounded in 1999, BBIN has dedicated to the development and innovation of new technologies and system software. To celebrate the brand’s 20th anniversary in 2019, BBIN has developed the theme of “leap” to present its history and future prospects. BBIN provides its professional platform integration services throughout Asia, including China, Japan, South Korea, Vietnam, Thailand, Indonesia, Malaysia, the Philippines and more. BBIN’s product diversity has always ranked top in Asia and been recognized through numerous international awards and nominations in recent years. In terms of product research and development, BBIN has specialized in both differentiation and localization, to integrate local cultures, festivals and timely events into game design. Currently, the company has successfully provided the market with 14 types of live casino, 40 lottery games, over 100 casino games and more than 50,000 sports betting products per month. The company also proactively collaborates with European and Asian brands, including international gaming brands such as Microgaming, Playtech, HABANERO, iSoftBet, Pragmatic Play, Evolution Gaming, and BetConstruct. Through partnerships with well-known brands in the industry, BBIN keeps expanding its market territory and opening up new business opportunities. Moreover, BBIN has been active in participating in international events. Apart from participating in the iconic iGaming exhibitions all around the world, we have sponsored various world-renowned teams and competitions, including football and eSports. BBIN also raises the attention to charity organizations, provides support and plans charitable projects in the name of TGB Charity. We have been engaging in various international projects to provide wider and more diversified viewpoints to the industry.

SUPPLIER SPECIAL REPORT 49 Scientific games

Reimagine Play

cientific Games is creating and designing cutting-edge gaming content and platforms, evolving the full Entertainment Ecosystem, and inspiring our stakeholders to REIMAGINE PLAY. One of SG’s most celebrated licensed brands will feature at G2E, with Willy Wonka - Everlasting Gobstopper and The Hobbit, both showcased on the Gamefield 2.0. The dramatic new Wave XL Horizon will feature both JAMES BOND – DIE ANOTHER DAY and MONOPOLY Money Grab. SG will also introduce exciting new themes in its high-performing games series such as the Ultra Hot Mega Link, starring all of the player-favorite features of Ultimate Fire Link and a new Ultra Hot symbol. Also debuting are new innovative and engaging cabinets, including the TwinStar 5RM which will showcase a thrilling stepper

version of the acclaimed game, Dancing Drums. SG is reimagining how players will play and pay, through both its SG Game Service and Unified Wallet technologies. The SG Game Service enables players to access and play content across multiple channels like slots, sports betting and ETGs, all from a single device. The Unified Wallet provides a cashless and cardless solution allowing players seamless access to various funding and loyalty club transactions throughout the resort. SG’s Rewards Quest achievement-based badge system rewards players for activities throughout the resort, while the Player Boutique gifting program allows players to redeem loyalty points for prizes quickly and easily at their game. SG Vision enables anonymous patron identification and real-time chip recognition, providing secure data for enhanced tracking

of game transactions and patron activity throughout the property. SG is also reimagining play through the creation of industry-leading table game content and cutting-edge technology to enhance the player experience. With our new MDX multi-deck shuffler, we’re doing what’s never been done. MDX shuffles up to 10 decks, eliminates edge-sorting, and sorts multiple decks. SG is changing the table progressive game with GM Atlas, our next-level progressive operating system. GM Atlas offers new bonus and jackpot options, and the ability to configure Must-Hit-By and random mystery prizes. We’re also introducing the dramatically redesigned Quartz cabinet, our latest Electronic Table Game innovation. Quartz displays eight games concurrently on an immersive 26.5-inch LCD player touchscreen.

Asia Gaming Briefings | October 2019

SUPPLIER SPECIAL REPORT 50 BMM

ebet

Improving the Industry

MM Testlabs is pleased to announce its participation at G2E in Las Vegas on October 14-17, 2019. President and CEO, Martin Storm stated, “The concept of innovation and improving

Mobile iGaming

the industry has been a driving force of BMM since it was established in 1981. In 1992 BMM created and established the first comprehensive, integrated technical standards for gaming products. These standards were cornerstone of current technical standards. BMM was also first to achieve ISO9000 series accreditations for gaming labs that has become a global standard for all labs.” “As the world’s original global gaming test lab, BMM remains committed to creating, establishing and setting the standards for global testing excellence across the industry,” Storm concluded. BMM’s experts will be participating as panel speakers during G2E 2019, including a session on Regulatory Harmony, Cyberdefense and Lab Innovation, and a Multi-Generation Approach to Customer Service.

ounded in 2012, eBET is considered Asia’s first leading supplier of mobile iGaming. The company’s mission is to design intuitive and interactive live gaming experiences that are customized for all generations of mobile users. Trusted by millions of players throughout Asia, eBET’s award-winning products are fully supported on PC, Mac, iOS, and Android. All games designed by eBET are certified by GLI, and it is regulated and monitored by PAGCOR to ensure game fairness and reliability while supporting 16 languages and 26 currencies.

Digitain

Betting Trends and Opportunities

he ability to offer differentiated pricing and risk across the board across multiple US states and through numerous channels is essential. With competition for the US heating up, price competition is becoming closer than ever before amongst the major sportsbooks, and as a result, customers are increasingly starting to value their user experience as much as the price. A sportsbook that can offer the most personalized, easy-to-use customer journey will see far more benefit to the bottom line than any discounted pricing strategy ever can. Navigation, speed, and functionality are all essential for retention and differentiation. Digitain’s latest mobile tech promises to solve this problem – using React.JS, which provides a seamless UX across just about any platform or device available. With today’s ever-evolving technologies; data is no longer about assessing risk but rather in taking that information and predicting what do with it. The ‘Netflix Experience’ that is emerging with today’s online customer journey means that a player expects offerings to be tailored to them, with exactly what they want, before it is even demanded – and this is where customer analytics come in. Its importance cannot be underestimated. We’ve partnered with a specialist AI firm specifically for this purpose – not only to

Asia Gaming Briefings | October 2019

ensure we deliver some of the best predictive AI available in the industry but to ensure we stay miles ahead of the curve when it comes to development. Data provision and evaluation to ensure this is provided is an essential part of what we do for over 100 platform partners, ensuring they can target the right players, at the right

time – pushing content they are most likely to be interested in and removing that which they would rather not see. This again brings us back to the value of the customer in driving higher margins – customer experience – and the value derived from it is what keeps the customer loyal to your brand. Without it, they’ll go elsewhere.

SUPPLIER SPECIAL REPORT 51 FBM

Spinning the reels

BM will present its well-established Bingo Games, coming up with the Progressive Series line for this edition of the show, as well as its latest Spin Reel line of the brand at G2E this year. Since the release of the Shadow, It was natural for the brand to come this year to Las Vegas with a widened Spin Reel line, showcasing Easy$Link and Mythic Link, two new linked pack of games, telling about adventure and global legends, creating the perfect ambiance for entertainment, “but more than this, they are about fun for players and profits for clients. Each game tells its own story, offering to the players amazing graphics and gameplay,” tell us Renato Almeida, executive of FBM. FBM also comes to Las Vegas with its Online Gaming products under the name “FBM Digital System.” The brand is developing well its online section and it gets appreciated by the public more every time. This is a great opportunity to showcase these products.” FBM is aiming for more in 2020, “we will soon reveal what is up for the brand” concludes Almeida.

FBM is planning to showcase also other exclusive novelties. For three days, the attendees will be able to try the latest games,

machines and new features in a pleasant casino atmosphere. See FBM and their team at booth #2844 at G2E Las Vegas.

hardware, including an all-new single-player cabinet, a new bartop unit, and an incredible slate of new games! Over 20 games will be on display at G2E 2019, including massive hits like Cookie Jam Blast, the worldwide top-grossing match 3

game from Jam City; the world debut of Deal or No Deal: Banker’s Poker based on the hit TV show; and players even have a chance to win real life prizes in a claw machine! Other brand new game debuts include Gem Flux, a gorgeous gem-matching game that’s easy to learn but engaging for hours to play, Jumping Heroes, an adventurous treasure hunting game that takes players through caverns & jungles to find cash, Lucky Words Connect, a fast-paced update to the hit word spelling game with even more ways to win, Rob N Roll, a fantasy-themed Pachinko game with a hilarious cast of characters, Dice Arena, which mixes medieval combat with dice rolls for fun ways to win cash and an all-new Jetpack Joyride, the hit mobile game that’s been downloaded over 750 million times. Also featured will be PAC-MAN Cash Chase, a single player PAC-MAN experience that takes the classic game we know and love and lets players win cash as they play! Rumor has it PAC-MAN himself may even drop by for some selfies…. Gamblit Gaming will be bringing the FUN back to gaming once again at booth #4423.

Gamblit Gaming

Bringing Back Fun

amblit Gaming, a leader in interactive electronic gaming, will continue to pioneer the industry at Global Gaming Expo (G2E) 2019 with a show-stopping Gamblit Arcade experience. Gamblit will be debuting all-new world-class

Asia Gaming Briefings | October 2019

SUPPLIER SPECIAL REPORT 52 GameCo

The New Casino

ameCo, creator of the world’s first Video Game Gambling Machine (VGM) will be showcasing elements of “The New Casino,” including several new games, products, and technologies at Global Gaming Expo (G2E). GameCo invented and pioneered the concept of video game gambling machines, which allow a player’s skill to impact the payout and winnings while maintaining the same casino economics as slot machines – combining chance and skill in an entirely new way. At G2E, GameCo will unveil new and updated game titles, including Terminator 2: Judgment Day, Steve Aoki’s Neon Dream rhythm runner, and SOULCALIBUR™II Casino Edition (with Multiplayer Arena™). Alongside these core games will be casual and sports titles, including PopFish (Fast Match), All-Star Hoops (basketball), and Mystery of the Secret Temple (Match 3). “We’re excited to put our vision for The New Casino on display at G2E,” said Blaine Graboyes, Co-Founder and CEO of GameCo. “GameCo is innovating at astounding speeds, creating new technologies and titles that will fundamentally change how people play at casinos. We’re bringing gambling and video games to new, younger

audiences and creating tangible opportunity for casinos to generate new revenue.” GameCo is revolutionizing casino cabinets for a modern gamer with two new designs - Katana and Impulse! These new cabinets will change the gambling experience by creating a comfortable and exciting lean-forward play environment. GameCo will also be revealing their brandnew Multiplayer Arena, which brings a new social experience to the casino floor allowing people to play head-to-head or esports tournament style in games like SOULCALIBURII Casino Edition and All-Star Hoops. There will be five tournaments hosted at GameCo’s Multiplayer Arena - two taking place each day on October 15th and 16th and another on October 17th. The tournaments will host up to 16 players, with prizes for players and winners. To join a tournament, attendees can visit GameCo’s booth to sign up and get a time slot. In response to casino properties’ requests, GameCo will also showcase a Multigame Bartop VGM and Multigame VGM at this year’s show. Featuring exciting games such as Riches of the Golden Dragon (Pick-3), All-Star Hoops (basketball), and Mystery of the Secret Temple

(Match 3), these VGMs will bring diverse game genres to one gaming machine and help reinvent the on-floor and bar experience. GameCo’s new patented technology GamersEdge solves for managing “over-hold” generated by non-optimal play while allowing skilled players to achieve a higher payout. This is a key breakthrough for the Video Game Gambling category, casinos, and players as it balances the experience for new players and provides increased rewards for skilled players. GameCo is also entering the iGaming and mobile casino industry with an interactive gambling Fast Match game called Scarlet’s Heart. Scarlet’s Heart brings the popular match game genre to major iGaming operators worldwide with an edgy style and thrilling experience. The game features high-velocity betting, exciting Power-Ups, and a Frenzy Bonus for massive wins. Built in HTML5 for mobile and desktop distribution, Scarlet’s Heart is the first of many iGaming products planned by GameCo. GameCo will be showcasing its new Video Game Gambling innovations during G2E at booth #5034 and their Multiplayer Arena at booth #2609.

Ganapati

Pacquiao One Punch gives back to the community

ere with yet another impactful game is Ganapati. The Global Gaming Awards 2019 nominee for Product Innovation, released Pacquiao One Punch KO, the official Manny Pacquiao slot game, in September 2019. This slot truly strikes the heart and soul with part of its proceeds going towards the Manny Pacquiao Foundation, in an effort to help the children of the Philippines. Pacquiao, a senator of the Philippines, is passionate about giving back to his country and the communities he grew up in – a sentiment Ganapati shares. Pacquiao One Punch KO is definitely a game to try, with several of its elements symbolising luck and fortune – from the red and gold backgrounds, to the number ‘8.’ The number 8 is not only Ganapati’s lucky number, but Manny Pacquiao’s, with each of his three names containing eight letters, and his incredible title being the Octuple Champion. Pacquiao One Punch KO is a 3x5 cascading slot game with 25 pay lines and 9 symbols. The official Manny Pacquiao slot game gives you the chance to punch your way to a fortune

Asia Gaming Briefings | October 2019

with this living boxing legend – the first and only boxer to win world titles in 8 different weight divisions. Ganapati pleases yet again with its oneof-a-kind features: with cascading wins, the base game Multiplier can be increased up to 6x; the Free Spins round sees the Multipliers

increased by 2, increasing the cascading wins potential to 8x. The knock-out feature of the game is the Octuple Champion Bonus round – 10 Free Spins triggered by 3 or more Bonus symbols – a tribute to Pacquiao’s success. If there’s any ring you should jump into, it’s Ganapati’s, with Pacquiao One Punch KO!

SUPPLIER SPECIAL REPORT 53 Gary Platt

Enterprise-wide Seating Solutions

tudies have shown that when players are comfortable, they stay and enjoy themselves at the game longer. At G2E 2019, Gary Platt is showing seating solutions for the entire enterprise. The unsurpassed comfort that operators give their players in the casino is now available in collections for all areas of the casino, hotel, and hospitality venues. It begins with Gary Platt’s new sportsbook line and the incredible Sportsbook Club chair. The new Sportsbook Club is perfect for a day full of football games or a day watching the races because this lounge-style chair is built for maximum comfort. It features oversized back and arms, reclining back, USB charger, cupholder, and Gary Platt’s exclusive foam. Other chairs in the sportsbook collection include the GX2, Lido, Lugano, Monaco, and Sonoma. Each chair is handcrafted and can be customized to fit each property’s individual brand. Gary Platt will also introduce its new Signature collection, where each chair bears the name of the company’s visionary and legendary founder. These premium seating solutions are ideal for high limit areas. In addition to Gary Platt’s exclusive foam for unsurpassed comfort, each

chair features distinctive designs and finishes, such as the waved edge on the Savannah, the sporty wrap-around back of the Tesla, and the patented Monaco. Across the entire floor, Gary Platt matches comfort with convenience with its quick-change seat. Designed with just two bolts, the quickchange seat can replace an existing seat in under one minute, getting your players back in the game with renewed comfort. Gary Platt also offers a wealth of seating solutions for all hospitality areas, including restaurant, convention, and guest room. Gary Platt’s Sierra Nevada Hospitality collection features dozens of styles and virtually limitless configurations for restaurants, bars, and lounges of all types, sizes, and tastes. The Sierra Nevada Hospitality line also includes seating solutions for reception, lobby, and guest service areas, as banquet and meeting rooms. Next, operators can finally leave behind notoriously uncomfortable convention seating with Gary Platt’s new Kopa stack chair. Designed specifically for the conference and banquet area, the Kopa stack chair incorporates all of the ergonomics of our casino seating into a stack

chair with base legs that are light, durable, and easily stacked. For the guest room, Gary Platt’s new Eclipse office-style chair brings the comfort of casino seating to the guest’s in-room desk area. Eclipse chairs feature an upholstered seat, a full synchro spyder-style base, and adjustable arms that fold back completely, seat back is available with upholstery or mesh. The Eclipse is also a perfect solution for the back office, executive, meeting room or dealer seating. Discover chairs that will make you sit down and cheer in Gary Platt’s G2E booth #2618.

GLI

Story That Began 30 Years Ago

or 30 years, Gaming Laboratories International has provided the gaming industry with innovative, reliable, and cost-effective independent testing, assessment, and certification services. GLI’s story began 30 years ago when founders James Maida and Paul Magno created the company with a unique vision to provide a single resource for suppliers to submit their equipment for testing; rather than incurring the expense of shipping their gaming devices to multiple testing labs in multiple jurisdictions. GLI has steadily grown over the years and now spans 24 locations strategically situated on

six continents. Since the beginning, GLI has been fulfilling its mission to help regulators, suppliers, and operators with “obsession-level” customer service and has tested and certified more than 3 million items in more than 475 jurisdictions. Local gaming markets can take advantage of GLI’s formidable global testing and certification resources right in their own backyards. GLI’s global reach also provides total access into both mature and emerging land-based, iGaming, and sports-wagering markets to help get your products anywhere you want them to go with consistency, speed, and accuracy. GLI’s uncompromising methodologies employ multiple rounds of testing and meticulous quality control by separate teams of mathematicians and engineers who utilize award-winning tools like 24/7 test automation to deliver the highest quality results with unsurpassed precision. It’s a commitment from 1,250 global GLI employees to go the extra mile to provide superior customer service 365 days a year. GLI also offers a wide range of professional services, including world-class educational resources through GLI University® which hosts

the world-renowned Regulators Roundtables and produces critical, in-depth seminars and events designed to keep attendees on the leading edge of information, technology, and knowledge. Additionally, GLI features a comprehensive suite of customized cybersecurity solutions by Bulletproof™, a GLI Company. Since 1989, GLI’s widely accepted gaming technical standards continue to be the unrivaled benchmark relied upon by gaming regulators, operators, and suppliers the world over. Additionally, the company holds U.S. and international accreditations for compliance with ISO/IEC 17025, 17020, and 17065 standards for technical competence in the gaming, wagering and lottery industries. As GLI celebrates 30 years of leadership, it hasn’t lost sight of why it opened its doors in the first place: To be a trusted, proven advisor, offering an unparalleled range of services designed to empower regulators, operators, and suppliers to achieve their goals by ensuring that the work GLI does for its clients exceeds expectations. Visit GLI at G2E 2019 booth #4430 and discover its passion for its clients’ success.

Asia Gaming Briefings | October 2019

SUPPLIER SPECIAL REPORT 54 IGT

Player-Driven Performance

GT is set to demonstrate the depth and breadth of its portfolio within its extensive 24,000-plus square foot booth 3659, at G2E Las Vegas. Making its G2E debut is IGT’s all-new video poker bartop cabinet - PeakBarTop. The new cabinet elevates the player experience with its 23-inch curved display, USB charging ports, enhanced lighting and audio and more. The cabinet will launch with new content along with new versions of proven IGT games such as Wheel Poker Progressive, Game King, and Ultimate X Poker. In addition, for the first time at G2E, attendees can experience IGT video poker content on the CrystalCurve and Cobalt 23 cabinets and the recently launched CrystalSlant Poker cabinet. IGT will demonstrate how it is continuing to evolve the most successful slot theme of all time with innovative Wheel of Fortune titles such as Wheel of Fortune 4D More Money and Wheel of Fortune 4D Wheelmobile. Building on the success of Wheel of Fortune Cash Link, the company will debut two new base games including Ruby Riches and Shimmering Sapphires. G2E 2019 will serve as the world debut for IGT’s Jumanji TRUE 4D game on the CrystalCurve TRUE 4D gaming machine. The thrilling title leverages fan-favorite components

of the iconic movie to create an exciting multisensory gaming experience. The company is also adding to its extensive library of first-class licensed content with more games about games. Attendees can get a firsthand look at new titles including Jeopardy! and $25,000 Pyramid, both housed on the large-format Megatower Universal cabinet. The Company will showcase the latest core video ‘Proven Performer’ graduates from IGT’s test bank program with titles such as Star Goddess, Lucky Buddha and Magic of the Nile on the CrystalDual and CrystalCurve gaming machines. IGT will also shine a spotlight on its mechanical reel portfolio with new multi-level progressive titles such as Red Hot Tamales Jackpots and Dragon of Fortune. The company’s booth will also have a dedicated area for IGT’s PlayDigital organization, where attendees can experience the many products and services designed to help operators capture business opportunities in the digital gaming segment. IGT PlaySports, the leading B2B sports betting platform, will be a G2E focal point. Attendees can take part in interactive demonstrations to see why winners choose IGT PlaySports for their sports betting needs. Show-goers can see how the ‘50-State-Solution’ can deliver a seamless sports

betting experience across multiple channels. IGT’s systems area will focus on IGT ADVANTAGE and its Player Experience Product Suite of mobile solutions including Cardless Connect, Resort Wallet and Intelligent Offers. When leveraged together, this product ecosystem enables casino patrons to effortlessly interact with gaming devices via their mobile phones, while also driving operational efficiencies for the casino. G2E attendees can experience the Company’s latest TournXtreme solution, Cleopatra Tournament within the Company’s booth. The solution combines one of the most recognizable game themes of all time with the thrill of competition for a next-level tournament experience. These games and solutions will be joined by Chill Gaming’s innovative game concepts, the latest Dynasty Electronic Table Games with engaging side bets, captivating new Class II and VLT content, and more. In addition, IGT will dedicate a portion of its booth to games and solutions designed for its international customers. To experience IGT’s range of solutions at G2E, visit booth #3659.

stronger customer connections. As a result, the industry has heavily invested in these products and their demonstrated ability to power the casino enterprise in new and sustainable ways. The ICB Intelligent Cash Box and PromoNet® systems added innovative intelligence to the iVIZION and GEN5 platform next, which gave operators insights into the total floor operation, streamlined processes, customized reporting, and enabled marketers to directly reach carded and uncarded players with promotional couponing across the entire operation. JCM continued to bring innovation to the Gaming industry again when the FUZION system was patented in 2018. Connecting iVIZION and GEN5 to the FUZION real-time peripheral management system, with the added benefit of JCM’s ICB and PromoNet couponing solution, FUZION unleashed a new industry direction: transforming each slot machine into an interactive kiosk that vends and redeems race and sports tickets, lottery

tickets, and more. FUZION’s mobile solution, iTITO, or Intelligent TITO, enables operators to attract new and different types of players by offering a mobile transaction technology. At G2E, operators can expect to realize the full potential to optimize multiple areas of casino operations with FUZION. In addition, JCM’s cutting-edge Digital Display Solutions allow operators to instantly and dynamically create visual destinations that deepen the connections with patrons across the property. JCM Global Digital Signage Solutions suit every taste, need, and budget. The displays offer easy-to-configure and easy-to-assemble panels that effortlessly accommodate any size, space, need, or challenge. Experience the partnerships, products/ solutions, and people at G2E, booth #4039.

JCM

Power of Innovation

CM Global has a 65-year history of innovation, and at G2E 2019, that enduring spirit will be on display with groundbreaking solutions, technology and partnerships that will set new, global standards for the gaming industry. The journey began with JCM’s landmark and award-winning iVIZION/ Since its introduction as the foundation of intelligent validation, iVIZION still stands alone as the most advanced, most secure product of its kind, fully equipped with future-ready technology. Major suppliers have partnered with JCM to use iVIZION for a variety of applications, and at G2E, operators will be able to view its newest advancements. Following the successful launch of iVIZION, JCM presented the industry with the GEN5 Thermal Printer. Proven to have more capacity, more memory, and faster print speeds, it became the perfect companion to iVIZION, and together, they created the foundation for enhanced casino security and

Asia Gaming Briefings | October 2019

SUPPLIER SPECIAL REPORT 55 Interblock

Twelve New ETG Products on Display

lectronic table game (ETG) industry leader, Interblock will present its comprehensive portfolio of automated, video and dealer assist product lines at the 2019 Global Gaming Expo. Leading ETG innovations on show will include Pulse Arena, Universal Cabinet, MiniStar, and Golden Ball Roulette. “G2E has always been a focal point for Interblock to share its latest innovations with the industry and 2019 will be unparalleled. Our primary focus is to further diversify our product offering and the perception of the ETG segment as a whole. We will introduce new forms of technology designed to reduce the operational expenses associated with live table games while providing new products to attract both new and existing customers alike,” said John Connelly, Interblock Global CEO. Interblock will display its latest line of ETG’s featuring its breakthrough form factor the Universal Cabinet. The Universal Cabinet is a standalone unit with slot-like hardware designed to support a variety of games. Available in both video and automated formats, the product will demonstrate craps, roulette, blackjack and baccarat games. The Universal Cabinet line of games represents a new segment and provides a unique perspective on table games. The new line provides operators with the

ability to offer a variety of ETG’s in a smaller, flexible footprint with complete configuration flexibility. Players enjoy an intimate tactile ETG experience that moves at the pace of the player. Universal Cabinet is revolutionary to the gaming industry and will change the way a typical casino floor is configured moving forward. Universal Cabinets will bring even more newly carded players to the casino floor and increase the hold and handle the industry has historically seen from ETGs. Interblock’s award-winning stadium configuration, Pulse Arena, will be one such product demonstrating the company’s latest enhancements. It offers the most versatile Stadium game portfolio while generating continuous play and reducing operating expenses. Interblock’s compact Roulette ETG, MiniStar Roulette, delivers more than 120 results per hour and provides all of the features and functionalities available on Interblock’s Diamond product line in a smaller footprint and a lower price point. MiniStar Roulette will feature sound effects designed to elevate the player experience. MiniStar Dice will also be on Interblock’s display. This product is composed of Interblock’s new micro-dice generator and play stations that are closely situated, providing excellent

dice visibility for the player. It offers most of Interblock’s Diamond Craps features in a smaller footprint. Recently upgraded hardware will be on display for the video versions of blackjack and baccarat, offering all of the player favorite features in a more compact footprint, as well. Each game will feature an enhanced Virtual Dealer with fast-deal graphics that have reduced waiting time for participating players resulting in more hands per hour. Finally, Interblock’s Golden Ball Roulette will be featured at the show. A completely new take on the classic roulette game Golden Ball generates results based on different color balls ejecting out of the ball magazine. The game is intended to increase the hold of the traditional roulette game and introduce a new type of player to the traditional roulette game. Golden Ball brings all new side bet action to a market starved for innovation on this casino favorite game. Interblock is set to revolutionize the way the gaming sector perceives ETG’s on booth #1239.

JUMBO

Jumbo to celebrate 20th birthday

umbo Technology will be celebrating its 20th anniversary next year. Founded in 2000 in Taiwan, Jumbo is committed in developing innovative gaming machines and offering functional casino management

systems to clients around the world. For the past two decades, Jumbo has successfully grown its market footprint and diverse product portfolio. And the company has elevated its position from a Taiwanese local gaming supplier to an international gaming brand recognized by operators and other suppliers in the industry. Jumbo’s product offering now ranges from slot machines, electronic table games, casino management systems, to the latest fishing games. As a one-stop gaming solution provider, Jumbo’s exceptional service and products have supported the company’s strong and growing footprint in Macau, the Philippines, Cambodia, South Korea, Malaysia, Nepal, and Myanmar. Jumbo’s innovative electronic table games (ETG) and slot games have also created lasting popularity and loyal players in many regions. Multi-game ETGs with the option to

have games such as Long Dragon Baccarat, Roulette, and Sic-Bo have been a success with Jumbo’s signature Random Pay feature, which is patented in multiple jurisdictions. Following the success of Jumbo’s popular Yi Lu Fa Link, the latest Bao Ni Fa progressive linked jackpot games has also been performing well on its debut in Southeast Asia. Celebrating 20 years of excellence in gaming, Jumbo will continue to expand its footprint and explore new opportunities around the world. From exhibiting new products at global expos to participating in international gaming conferences and events, Jumbo is taking the next step to going global. “We are not only targeting Asia; we are now going global because we believe our 20 years of expertise and experience will translate well into other regions,” said Allen Hsu, Jumbo’s Associate Vice President of Business Development.

Asia Gaming Briefings | October 2019

SUPPLIER SPECIAL REPORT 56 konami

Lotus gaming

KX 43 to Premiere

Comprehensive live casino

onami Gaming is using G2E 2019 to provide the industry with the first look at an expanding lineup of future products. Guests from across the globe will be among the first to experience entirely new slot cabinets, creative game content, and casino systems solutions aimed at advancing product technology across the industry. KX 43 is set to premiere six unique linked progressives filled with must-see play mechanics. Fortune Mint is among this year’s showcase series on the 4K Ultra HD portrait screen machine. It features two debut base games, mystery multipliers, symbol-driven jackpots, and vibrant Asian-inspired art elements. KX 43 will also debut a mix of custom merchandising options, designed to maximize appeal and performance. Original game releases for Konami’s awardwinning Opus cabinet will be featured across its 65-inch display during G2E 2019, including Hao Yun Lai. Hao Yun Lai is the first-ever game to combine the popularity of both Strike Zone—from games like Star Watch Magma— and the Fade Away Feature—from games like Chili Chili Fire—together in one. When any wild symbol lands within the player’s selected Strike Zone it triggers the Fade Away Feature, which eliminates all lower-value card symbols and leaves only higher-value picture symbols for big win combinations. Hao Yun Lai also

includes a symbol-driven integrated progressive delivered through a new Pop n’ Drop Feature. On the heels of high performance across the big-screen Concerto Opus cabinet, and growing momentum for its award-winning KX 43, Konami is further expanding its cabinet lineup with a never-before-seen, portrait screen machine. Built to maximize merchandising, versatility, and enjoyment, Konami’s latest slot cabinet will showcase several debut series in captivating 4K UHD. Guests at G2E Las Vegas will be first in the industry to experience the machine firsthand. Find Konami at booth #1256 at the show.

matsui

Showcasing new chips

atsui will be showcasing the latest additions to its gaming chip product line at G2E Las Vegas. Their new casino chip series, Oval Premier Decal Chips and also a very unique new design of chips will be launched. The Demo of PJM RFID chips which is licensed by their partner, Walker Digital Table System, will also be on display. “We are thrilled to introduce these new gaming chips as well as our other core products such as highly durable heavyweight layouts to our customers,” said General Manager of

Asia Gaming Briefings | October 2019

Matsui’s Las Vegas subsidiary, Roxana Orellana. “Operators are increasingly aware of the importance of casino chip security, we believe that the new development and our partnership with WDTS will surely provide even more choice and better security options to our customers.” The Matsui Group is celebrating its 40th anniversary this year. Their gaming chips under their own brand “Matsui Chips” have been supplied to more than 1,000 casinos in 100+ countries. Now their offices and subsidiary’s located worldwide, namely in Japan, Korea, Manchester, Las Vegas, Moscow and Macau with the Head Office still located in Tokyo. “We are ver y excited to have this commemorative 40th anniversary year as a group company. Our team members are looking forward to meeting our friends and new clients at G2E Las Vegas” said Roxana. Visit Matsui at booth #4000.

otus Gaming has been providing its live casino platform to the international market for more than three years. The company is continuously reaching new heights with its progressive multi-gaming platform, which contains Baccarat, Roulette, Sic-bo, Dragon Tiger, Red & White, Hold’em and multiple slot games. We provide an experience of real-time live streaming with a vivid user interface. Lotus Gaming offers a comprehensive platform that allows you to engage in various games. The strength of this service is that all games within the platform can be enjoyed conveniently with a universal game credit. Users can play live Baccarat and bet on slot games at the same time. Our primary function enables users to play games directly from a mobile browser without any installation. HTML5 can provide user convenience even in the presence of an unstable network connection. It can transmit game results even when the video can be toggled on and off. The integration of the HTML5 format has gained a favorable response from the international market. It enables the player to enjoy existing side bets even when playing at a current table. We assure you that there will be no dull moment on your live casino experience because Lotus Gaming lets you mix it up with other side betting variants. The Preferred Pattern function allows users to set their preference when it comes to game trends. Lotus’ interface automatically alerts players if their desired pattern appears in any of the tables. It maximizes the gaming experience as our players can easily access and monitor trends at the tables at the same time.

SUPPLIER SPECIAL REPORT 57 netgame

novomatic

HTML5 debuts with multiple game rollouts

etGame Entertainment is a software provider that offers a wide range of HTML5 quality slot games for online casinos. Having started with a group of three enthusiasts from landbased and retail gaming in 2012 the company accumulated experience and built a highly-motivated team to make a transition to online and establishing a new brand - NetGame Entertainment. During the last 2 years, the team has been working on the HTML5 platform which went live on June 2019 with 30 games in the portfolio to be released till the end of 2019. Some of the slots’ popular titles are Golden Skulls, Magic Dragons, Diamond Shot, Magic Tree, Jungle 2, Hit in Vegas, Red Hot Chilli 7`s, Space Rocks and the list of new game releases is constantly increasing. Being a provider of games oriented on different playing preferences, NetGame experiments with different core bonus game mechanics involving Beginners as well as produce high-volatile slots, which emulate a real casino atmosphere for High Rollers. NetGame slots attract players with not only its rich graphics and the real thrill of the casino atmosphere but interested in its original mathematical models and unique bonus features.

Technology boost to operations n extensive product portfolio showcasing brand new games and mixes, progressive jackpots, sports betting kiosks, system solutions and ETGs for the U.S. and surrounding markets will be on full display at booth #1259. Commercial, Tribal, and VGT operators will experience the wide-ranging product suite and understand how NOVOMATIC Americas’ technology can boost their operations. Various cabinets for all-sized venues will showcase a selection of new games, like Dragon Hits as well as Prize of the Nile and Prized Panda – both part of the Pay Day Progressives. The THUNDER CASH Link jackpot will show progressive prowess with popular themes like Emperor’s China, The Great Conqueror and Empress of the Pyramids. The MONEY PARTY Link will premiere Juicy Juicy and Fruity Fruity, and Samurai Beauty with its beautiful presentation will command attention on the NOVOMATIC stand. The PANTHERA Curve 1.43, V.I.P. Lounge Curve 1.43, and V.I.P. Lounge 2.32 cabinets continue to bring top performance to North American gaming floors. These and other popular NOVOMATIC cabinets, like the PANTHERA 2.27 will be also present a variety of multi-game editions for the international and Latin American markets.

The established NOVO LINE Novo Unity II platform will demonstrate the multiple variations of the popular ETG system showcasing the latest in side-betting features. New mixes for the Illinois and Pennsylvania VGT markets will have a dedicated booth location. The modular myACP casino management system will be featured with new player recognition programs for the Illinois and Pennsylvania VGT markets including a new NOVO Rewards player recognition kiosk. Capitalizing on the incredible success of the NOVOMATIC ActionBook self-service sports betting kiosk, the prominent placement in the NOVOMATIC sports lounge will allow customers to experience the latest in customer sports betting capabilities. Executives of Greentube will also be available to discuss new online games and capabilities. See the teams at Novomatic’s stand, at booth #1259.

elite group of engineers from across the globe. Each one of Quixant’s gaming features is engineered to enable cost-effective game development, seamless integration, speed-tomarket delivery, enhanced user experience and regulatory compliance. The pioneering hardware solutions that complement the Gaming Ecosystem will of course also be as present. Quixant provides the perfect gaming board to fit all price and performance requirements – meeting customers’ needs in every regulated global market. Alongside the renowned QXi-307, QXi-400 and QXi-7000 hardware solutions, Quixant’s new generation of controllers harnessing AMD’s unprecedented Ryzen Embedded APU processing power, will also add to the multitude of attractions. The QXi-7000 LITE is the latest PC-based gaming platform solution enabling game design to be pushed to the limit. It’s also the most versatile and benefit-loaded.

Quixant’s exciting, contemporary, monitor portfolio is a key part of its customer-centric offering. Mirroring the global trend towards slimline, flexible cabinet design, a fundamental new development in this range is the introduction of cutting-edge external “floating” designs with bespoke integrated LED arrangements and multiple touch technology options. Quixant’s new 27” FHD Floating Monitor gives a high quality, durable display with the sharpest pixels and brightest colours on the market. If that’s not enough, with a modular design and range of flexible LED configurations to suit every game concept - and budget - it’s arguably the most head-turning monitor. For extra flexibility, durability, longevity, and playability, the screen comes with a full flat surface mechanical design, high-quality components and the choice of PCT touch solutions and protective glass options.

quixant

Interactive Tech Area

uixant partners with global gaming OEMs to deliver versatile and innovative outsourced solutions through their portfolio of gaming hardware, software, and display technologies. Quixant pioneer best-in-class innovation for all gaming markets, developing products that deliver the most customer-centric, valueadd capabilities. This year at G2E the Quixant Interactive Tech Area will focus on its Gaming Ecosystem. Enabling OEM’s to enhance performance and efficiency, accelerate development time and improve revenue with minimal downtime and maintenance costs, the Gaming Ecosystem is the most widely-adopted software ecosystem in the gaming industry. Offering seamless integration with highvalue add-ons including Slot Accounting System (SAS) and Game to System (G2S) packages, it’s all backed by a secure customer service portal with dedicated and focused support from an

Asia Gaming Briefings | October 2019

SUPPLIER SPECIAL REPORT 58 Solid Gaming

spintec

Hawaiian Dream

olid Gaming is a market leader in providing exclusive and high performing RNG games, live dealer solutions and betting offerings for the online gambling industry with a focus on the Asia market. Pachislots are hugely popular games with players and the number one RNG game in Japan. Presently Pachinko parlors attract over 9 million people and generate almost $190 billion annually. With Solid Gaming’s new game, Battle Dwarf, and its first pachislot Hawaiian Dream, there are now true Pachislots available online to properly cater to this audience. Hawaiian Dream has quickly become the top-performing slot game on several sites. Solid Gaming offers a variety of Asian themed slot games from many different providers.

Ready to Impress pintec will be introducing ultimate gaming solutions and industry-leading innovations at G2E this year, well-known for its cutting-edge design and technical perfection, resulting in prolonged gaming sessions. Visitors will have the opportunity to see a large company’s product portfolio, including Karma Automated Roulette, the company’s core product. In Addition, Aura product line is ideal for amphitheater setups, combining live, automated, and virtual games in one seamless and enjoyable multigame experience. Spintec is also excited to present this year’s company’s achievements to the global gaming market. At the beginning of the year, Spintec announced a strategical and technological partnership with Gauselmann Group with the launch of a new product, Merkur ETG powered by Spintec, which is experiencing great success. In addition, the company extended its games library and launched an exciting new game, Blackjack, which has been receiving very positive feedback from the operators and their players. Another new milestone the company made was product approval and entering the Australian market. Spintec signed several contracts and made first ground-breaking installations across the country.

“The first part of the year was a great success for Spintec, and merit goes to our entire team. We are very confident in maintaining the company’s growth in the future. At the end of the year, we will also expand our business premises and increase the production capacities by three times,” said Goran Miskulin, Spintec’s CEO. “We are delighted to be returning to G2E Las Vegas this year, the show is a great opportunity to meet our business partners from all over the world, and to discuss future plans,” added Miskulin. Spintec would like to welcome all visitors to meet their team at booth #2046.

new printer models from Nanoptix, the hightech lock system e-LockPro, custom lottery and sports betting AiOs, and an expanded VisionPro monitor line. “Todd and I are looking forward to reconnecting with current partners and

introducing ourselves to prospective customers”, continued Bielak. “There is a solid opportunity in this industry and we are committed to growing SUZOHAPP’s product offerings and influence in the market”, he concluded.

SUZOHAPP

50,000 gaming products

UZOHAPP, a technology company with over 50,000 gaming products, family entertainment, sports betting, lottery, and bingo, announced that it will be exhibiting its products at the Global Gaming Expo (G2E) in Las Vegas, Nevada. A consistent presence at G2E for over 20 years, SUZOHAPP will be bringing two new members of its Gaming & Amusement team this year - Sim Bielak, the recently named president of global gaming & amusement, as well as Todd Sims, SUZOHAPP’s new vice president of gaming & amusement for North and South America. “Gaming has been at the core of the SUZOHAPP business for decades”, said Bielak. “We understand that manufacturers and operators value innovation to drive growth, but also need simplicity and efficiency to keep operating costs low”. New products to be introduced at this year’s G2E include the Newland line of scanners,

Asia Gaming Briefings | October 2019

SUPPLIER SPECIAL REPORT 59 TCSJOHNHUXLEY

Lighting Up the Gaming Floor

CSJOHNHUXLEY will be showcasing some new and exciting innovations in addition to its world-renowned core products at G2E in Las Vegas this year. G2E will see the American debut of Blaze Baccarat which was unveiled earlier this year at G2E Asia. Bringing a new twist to the traditional game of Baccarat, this latest edition incorporates the same eye-catching Blaze patented game attract animations as well as highlighting winning bets which excite new and experienced players whilst providing additional security to dealers and operations staff alike. Blaze Baccarat joins the suite of Roulette, Sicbo, and Craps, completing this striking showcase of exciting table game products. Steph Nel, General Manager for The Americas comments, “Our Blaze range of products have been extremely successful in the Americas, with many casinos capitalizing on the added excitement and spectacle these eye-catching tables bring to the gaming floor. With the addition of Blaze Baccarat, operators can now take advantage of offering one of the world’s most popular card games whist improving the playing experience for the customer.”

Qorex Electronic Gaming Solutions will also be on show featuring a selection of 23” and 27” gaming terminals. The Qorex range of products combine the experience of live gaming while delivering the benefits of electronic gaming, such as added security and real-time reporting so casino operators can evaluate the status of their terminals at any time and act immediately

as required. With the ability to feature live and RNG games and flexible configuration options from single terminals, eye catching themed carousel units to full stadium set ups, Qorex provides operators with electronic gaming solutions to fit every requirement. To see all these innovative products and much more, visit booth 4439.

peak efficiency. The Epic Edge also produces eye-catching, dynamic graphic images, making it ideal for implementation alongside applications such as Epicentral, TransAct’s bonusing software system. The printer also allows for firmware updates via a full-speed USB 2.0 connection or directly via a micro SD card, making the process of updating firmware speedier and more convenient than ever. In addition, the Epic Edge is fully equipped with serial and USB interfaces that are all conveniently built into a single board. By incorporating all interfaces into one board, casino operators reduce costs by only inventorying a single printer, for any game. Additional features include a single rugged outer chassis with color-coded rails, a hot-swap capability to eliminate game downtime, a faster ServerPort connection and an adjustable ticket bucket that accommodates standard and smaller, paper-saving tickets to work with ecological programs being implemented in casinos. The company will also feature Epic 950, which is the industry standard for TITO

printing. TransAct’s Epic 880 will also be a highlight, as it is the preferred roll printer that is incorporated into all the leading sports betting kiosks. Known for its reliability and flexibility, the Epic 880 is used extensively across gaming sectors where the most dependable, robust product is required. TransAct invites G2E attendees to visit booth #2423.

TransAct

Raising The Bar

ransAct looks forward to joining with their colleagues, their partners and casinos from around the globe as they present their industry-leading printer and software solutions. “TransAct remains laser-focused on raising the bar with our gaming products,” said Tracey Chernay, senior vice president of Global Casino and Gaming at TransAct. “We are confident that our products make a tremendous difference in the industry, and we are eager to showcase our ‘Epic’ line at G2E once again.” Among TransAct’s displayed products is Epic Edge, which is the newest in TITO printers. Thanks to its 300 DPI print resolution, the “Edge” offers more than twofold improvement in image quality over current industry options. This high-resolution provides a nearly unlimited array of characters of multiple languages to fit the needs of casinos worldwide. At the same time, the Epic Edge creates razor-sharp barcodes for better ticket acceptance and reduced attendant calls, driving measurable improvement in casino performance and allowing slot and table operations to run at

Asia Gaming Briefings | October 2019

SUPPLIER SPECIAL REPORT 60 XSGames

XSGames to make its debut in North America

SGames, a social gaming company in Taiwan, will make its debut to the North American crowd next month at G2E Las Vegas. “XSGames has been growing exponentially over the years with an increasingly global presence, this year we will introduce our key products to the North American crowd for the first time,” said Stanley Ku, the chairman of XSGames. “We would like to use this opportunity to showcase to the world our capabilities in developing new and innovative games as well as looking to meet potential business partners in the region.” XSGames is a regular participant at G2E Macau over the past four years. The company will make its debut to the North American crowd for the first time at G2E Las Vegas this year. Three core products will make their way to the expo: TaiJi Link jackpot slot carrying classic Chinese themes with lightning TaiJi for enhanced gameplay. Golden Seven, a LAN-based gaming system with reputable presence in the Americas and Southeast Asia, will unveil its

latest iteration. Fishing King, a popular 8-seater fishing game with superb audiovisual, bringing a new dynamic to the fishing game experience. Capitalizing on the opportunity to showcase core products on the global stage, XSGames is looking to make an impression of its research and development capabilities to the industry professionals and interested partners. Founded in 2009, XSGames is a software company focusing on gaming products. The company houses 360 employees with a focus to develop various types of games and platforms, including online gaming platforms, LAN-based gaming systems, live video streaming technology, slot machines, and fish game tables. Along the years, the teams at XSGames continue to innovate technology, and in 2016 the first virtual fishing game with Mixed Reality technology was introduced at G2E Asia. Furthermore, in 2018, XSGames was the proud recipient of the Hot Hit Award at G2E Asia for its LAN-based gaming system.

ultraplay

UltraPlay gets CEEG eSports award

ltraPlay has been recognized by the Central and Eastern European Gaming (CEEG) Awards as the Best Overall eSports Service Provider of 2019, during a conference in Budapest on September 24th. The company’s eSports betting provision has been awarded for a second consecutive year through the accumulated votes online as well as those of the delegates onsite. “Our team is proud to lead the eSports betting movement, by constantly innovating and contributing the entire ecosystem. Going beyond expectations with our eSports offering, we are glad to supply so many online operators worldwide,” said Chief Marketing Officer Lyubomira Petrova. As part of the CEEGC’s panel discussion on eSports, Petrova shared why betting on

Asia Gaming Briefings | October 2019

eSports is a gambling vertical not to be missed. One of the reasons is that eSports offer a profitable and attractive way to sportsbooks, which are seeking to engage the next generation of bettors to their websites. The panelists marked what’s next and challenging for eSports and how the entire ecosystem will evolve over the following years. In terms of betting Petrova highlighted that widespread coverage will continue to be a must, and operators will need to adapt to the broader portfolio of titles that millennials want to see on their websites. UltraPlay’seSportsproduct’sgeographical reach includes predominantly Asia and Europe, as well as North and South America, where eSports betting is gaining a momentum. UltraPlay has been enhancing its eSports betting solution by constantly adding new game titles as well as upgrading its live betting model. Through UltraPlay’s impeccable solution for live betting on eSports, online operators can extend the players’ life-time value as well as increase their conversion and retention rates. Learn more on ultraplay.co.

Over the past decade, XSGames has launched products onto the global stage and expanded the business map to regions such as North and South America and Southeast Asia; its award-winning LAN-based gaming system has also held the top market share in North America for consecutive years. Sticking to the core values of Transparency, Growth, and Excellence, XSGames looks to establish lasting relationships with business partners to forge mutual benefits, trust, and cooperation in the future.

zitro

Link Me debuts at Le Grand Casino La Mamounia

he legendary Grand Casino La Mamounia in Morocco is the first casino on the African continent to install Zitro’ s successful Link Me local area progressive bank, from its Bryke Video Slots product library. “We are excited to announce that players can now enjoy another of Bryke’s Video Slots games in the distinguished Grand Casino La Mamounia,” says Sebastián Salat, CEO of Zitro. “Link Me is a local area progressive multigame which offers a highly appealing Strawberry-Bite mystery feature, together with a bonus game inspired in our bestseller Link King, which is also available to play in La Mamounia Casino” Salat adds. “We are thrilled to add Link Me of Zitro’s Bryke video slots to our offer and look forward to its success after seeing Link King engaging our players at the highest levels for some time now. Casino la Mamounia strives to provide a world-class gaming experience and by selecting Zitro’s products, we feel confident as they incorporate all aspects to secure a profitable operation while maximum entertainment,” explains Amir Homsi, Electronic Games Manager of Le Grand Casino La Mamounia. Link me will be available to play on the ultra slim Fusion slant cabinet, featuring a sleek design and a panoramic signage that stands out on any casino floor. To find out more about Link Me and other Zitro products, visit the company at booth #4447.

CALENDAR OF EVENTS 61

October G2E 14-16 October 2019 Sands Expo, Las Vegas https://www.globalgamingexpo.com/

2020

DECEMBER G2E Asia, the Philippines 3-4 December 2019 Marriott Hotel, Manila https://www.g2easia.com/philippines/

November

FEBRUARY ICE, London 4-6 February 2020 Excel Centre, London https://www.icelondon.uk.com/

Asia Gaming Summit 5-7 November 2019 W Hotel, Taipei https://taiwan.asiagamingsummit.com/ Affiliate Conference and Expo. 21-22 November 2019 Solaire Resort & Casino, Manila https://www.eventus-international.com/ace Vietnam Entertainment and Investment 21-22 November 2019 Tan Son Nhat Pavilion Convention Center, Ho Chi Minh http://www.gaming-vietnam.com/

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LAST WORD 62

Is Asia falling behind Sharon Singleton

Managing Editor, AGB

in the regulation race?

Asia’s gambling industry continues to power ahead, in most cases leaving regulators scrambling to keep up, creating an additional layer of risk for investors.

hile Singapore and Macau stand out to focus on its role as regulator, due to the evident conflict as models in the region, many of the of interest. PAGCOR has so far resisted, though it now emerging jurisdictions still need to appears the Department of Finance is prepared to take make considerable progress when it another look at the issue. The industry has argued that the casinos are tired comes to their gaming regulation. Cambodia for example, which is the fastest-growing and need a revamp, which needs to come from private jurisdiction in the region, with more than 136 casino capital. Once brought up to standard they will generate licenses issued, has once again delayed its legislation. significantly more revenue, which ultimately would Already more than a decade in the making, it’s now benefit the government. The Philippines is also grappling with its online expected to be published sometime early next year. In the meantime, casinos have proliferated, with the industry. So far, it has resisted Beijing’s calls for an town of Sihanoukville now overrun with Chinese-built outright ban, though the clock may be ticking if it doesn’t succeed in bringing its Philippine Offshore palaces, with little to no oversight. The town has unfortunately earned the reputation Operators (POGOs) under tighter control. The country’s main trade union has suggested creating of being the wild west of gambling in Asia, with rising a regulatory oversight body that crime including money laundering, would encompass the various kidnapping and loansharking. agencies currently attempting to Phnom Penh has said enough is enough, banning the online gambling There is no one knock the POGOs into shape, to avoid issues falling into the cracks that has fuelled much of the boom. body responsible between various ministries. However, to ensure the success of its for casino Other problems have emerged gaming industry it needs to get its when it comes to arbitrating regulatory house in order and fast. regulation, with business disputes. Recent cases have Vietnam has already published various ministries highlighted that even outside of rules to cover its casinos, which gaming regulation, many countries have been widely welcomed by the ranging from in the region due not have the legal industry. But even so, gaps remain, finance to defence infrastructure necessary to ensure with operators seeking clarity from cases can be fairly settled in court. the government. all weighing in. Donaco International for example And there, things can get has found itself in arbitration in complicated. There is no one body Singapore over a dispute with the responsible for casino regulation, with various ministries ranging from finance to defence former Thai owners of its Star Vegas casino in Cambodia, over their breach of a non-compete clause. The Thais all weighing in. The Ministry of Finance is seen as being pragmatic and have since ramped up their feud by cancelling the lease willing to listen and take on board the views of investors on the land the property sits on. Silver Heritage had the in the industry. For example, there has been a proposal rug pulled out from under its Phoenix Club property in to allow the inclusion of infrastructure projects into the Vietnam after table games were excluded from a revised $2 billion initial investment needed for a casino license. investment certificate. Although it’s easy to knock issues with regulation in This came due to concern the figure sets too high a bar for a project in Vietnam and would deter foreign investors. Asia, many who follow the industry closely agree that on However, that idea has run into opposition from other the whole things are moving in the right direction. In terms of the spirit of the law, governments are keen to see sectors of the government, including defense. This input from multiple stakeholders creates that their gaming industries have the necessary oversight. While Japan plans to emulate Singapore’s model in confusion and slows the pace of change. In the Philippines, regulation is also a work in shaping its IR industry and will likely get things right progress. There have long been calls for the Philippine from the get go, many other emerging jurisdictions will Amusement and Gaming Corp. to sell off its own casinos have a slower evolution though will get there in the end.

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Asia Gaming Briefings | October 2019

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Articles inside

G2E 2019

LAST WORD

NEW ZEALAND

AUSTRALIA

VIETNAM

CAMBODIA

SINGAPORE

MALAYSIA

PHILIPPINES

FOCUS

RUSSIA

JAPAN

MACAU

SEE YOU IN VEGAS!