Jurisdiction Updates October 2020 Edition
russia
Enthusiasm wanes as challenges mount pg.28
Macau
Corruption clampdown adds to risk pg.6
australia Crown’s suitability in spotlight pg.30
Philippines Ready for regional growth pg.10
In focus pg.14
Gambling on the Mekong SUPPLIER SPECIAL REPORT pg.32
2
SG Enterprise Progressive System One System, All Progressives, Any CMS!
TO LEARN MORE, CONTACT YOUR SCIENTIFIC GAMES ACCOUNT EXECUTIVE TODAY!
SGgaming.com
MACAU OFFICE Phone: +853 2872 2539 | SystemSales.Asia@scientificgames.com | sggaming.com/asia The look and feel of the games and their individual components and displays are trade dress of Scientific Games and its Subsidiaries. All ® notices signify marks registered in the United States. ™ and © 2020 Scientific Games Corp. and its Subsidiaries. All rights reserved. Scientific Games is committed to responsible gambling. Responsible gambling features are proactively developed to ensure the safety and security of players while using Scientific Games products.
Asia Gaming Briefings | October 2020
MESSAGE 3
Mekong in the making
P
re-covid, the Mekong was experiencing the
casinos are likely to resume their outperformance once
among the best growth levels in the region.
the global pandemic eases, infrastructure improves,
Post-Covid? Still the case. Expectations
and major projects come online. Even then operators
might be curbed but not the enthusiasm. The
are counting on the local market for base support.
pipeline is teeming with projects. Copious amounts
Meanwhile in Russia, growth prospects fail to excite.
of viability studies have been ordered throughout
Summit Ascent Holdings says it remains “cautiously
Vietnam in particular, but also Cambodia and, to a
optimistic” about the long-term future of the Far
lesser extent, even for Laos. Myanmar is also seeing
Eastern Gaming Zone but, given the political and
interest. We dedicate the focus of this October edition to
economic instability in the country, it has begun looking
opportunities around the region and efforts being made
for faster growth opportunities elsewhere. Down under, a
to make up for the current lack of international travel.
pandora’s-box like debacle is brewing around Crown, and
First we look at recent proposals in Vietnam that allow
major shareholder James Packer. The operator might be
investment in infrastructure in designated economic
pressed to jump a few hurdles to keep its coveted Sydney
zones to be counted when it comes to minimum capital
license as a suitability probe has unveiled a pattern of
requirements for integrated resorts. Crossing over to
compliance breaches and lax corporate governance.
Cambodia, consultant Adam Steinberg, shares his views
In close, a few surprises: the level of creativity and
on the nation’s potential and the right business model for
innovation shown by the industry never ceases to amaze.
the market. We also examine how regional governments
Find out how suppliers are pivoting their product range
have been joining forces to focus on boosting the domestic
and services to adjust to the new realities.
Rosalind Wade
Luis Pereira
tourism market towards filling the vacuum left by international visitors. Once travel in the Greater Mekong
On behalf of Asia Gaming Brief
returns to pre-pandemic trends, the future looks bright for
Rosalind Wade & Luis Pereira
tourism and integrated resorts in this vibrant region of Asia.
CO-FOUNDERS
Also in these pages of AGBriefings Magazine you’ll find the most relevant updates in key jurisdictions:
Connect with us:
Beijing is once again ramping up its anti-corruption rhetoric, which combined with an increased focus on
@agbrief
capital outflows is likely to further hinder the industry’s recovery, analysts say. In the Philippines, regional
Asia Gaming Brief
Asia Gaming Brief
www.agbrief.com
october 2020 EDITION Series II • Issue XIX
PUBLISHED BY Blue Sky Venture Ltd. 16/F China Law Building, 409 Av. da Praia Grande Macau SAR | P.O. Box 1139 t. +853 2871 7267 f. +853 2871 7264 e. enquiries@agbrief.com ADVERTISING ENQUIRIES advertising@agbrief.com SUBSCRIPTION ENQUIRIES memberships@agbrief.com EDITORIAL ENQUIRIES editorial@agbrief.com
CO-FOUNDERS Rosalind Wade, Luis Pereira MANAGING EDITOR Sharon Singleton ASIA EDITOR Felix Ng DESIGN Liane Honda PHOTOGRAPHY Agencies PRINTING Hop Sze, Hong Kong
DISCLAMER All rights reserved. No part of this publication may be reproduced or transmitted in any shape or form, or by any means, or stored in any retrieval system of any nature, without prior express permission. The publishers accept no responsibility for loss or damage to any materials submitted for publication. The views expressed within are not necessarily subscribed by the publishers. For more info, please visit our website www.agbrief.com.
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 2020
CONTENTS 4
GREATER CHINA
SOUTH EAST ASIA
6
MACAU
PHIlippines
NORTH ASIA
10
JAPAN
22
south korea
26
russia
28
AUSTRALASIA australia
special focus
Asia Gaming Briefings | October 2020
30
14
SUPPLIER SPECIAL REPORT
32
LAST WORD
42
5
LIVE STREAMS TO BOOST YOUR IN-PLAY BETTING OFFER
GET LOCKDOWNPROOF STREAMING CONTENT NOW
With the most comprehensive and most reliable streaming portfolio in the industry we make sure your customers can enjoy live streams every day, even in times of corona virus related hiatuses and postponements of sporting events. Contact us today to get your streaming package: sales@betradar.com
Asia Gaming Briefings | October 2020
6
GREATER CHINA
6
MACAU
Anti-corruption drives, capital flow focus, add to Macau woes
A sign Beijing is once again ramping up its anti-corruption rhetoric, combined with an increased focus on capital outflows, are likely to be further factors hindering recovery in Macau, analysts said.
Asia Gaming Briefings | October 2020
C
hina allowed visitation to resume to Macau from Sept. 23rd, but so far demand has not bounced back as quickly as most market watchers had predicted. In the first four days of the key Golden Week holiday, there was a drop of 87.4 percent in visitors, compared with the prior year. That doesn’t mean the Chinese aren’t travelling. According to figures cited by Bloomberg, there were 13,800 flight bookings for Oct. 7th, the busiest travel day of the holiday. That’s 10 percent more than last year. In part, investors may have been put off international vacations, even to Macau, due to onerous Covid-19 restrictions, such as a mandatory test before travel. However, analysts also suspect a more worrying set of circumstances may be affecting visitation to the world’s largest gambling hub. They note there has been a resurgence of anticorruption rhetoric over the summer months. While Beijing has also become increasingly vocal about money flowing out of China for gambling. Analysts at Bernstein note there has also been a shift in focus when it comes to anticorruption drives, with an increased number of investigations targeting state-owned-enterprise executives and sub-ministerial level individuals. “We see a risk that the CCP may be embarking on a second wave Anti-Corruption campaign,” the note said. “Macau could suffer damage if activity increases and leads to a suppression of gaming. This may be more so the case if the current campaign against foreign casinos and online
GREATER CHINA 7
gambling and increasing financial flow scrutiny begins incorporating Anti-Corruption activity into the same sphere,” it said. Analyst Michael Ting, publishing on the Smartkarma platform, also wrote that Golden Week hasn’t produced the strong rebound that had been expected. “Headwinds such as increased government scrutiny on capital outflow has likely hurt gaming sentiment demand from higher
“
We see a risk that the CCP may be embarking on a second wave Anti-Corruption campaign,
”
spending VIP and premium mass players,” he said. “We expect these trends to continue and hence believe that Macau gaming stocks could underperform in the near term.” During the last anti-corruption drive, Macau’s gross gambling revenue fell for three straight years, from 2014, plunging 35 percent in 2015. Although Macau was not an official target, revenue suffered as high rollers preferred to keep a low profile. This time China is also targeting foreign
outflows, which it says are a threat to national security. The Ministry of Public Security’s International Cooperation Department Director-General Liao Jinrong told a conference in Beijing that about RMB1 trillion (US$145 billion) in gambling funds flow out of China each year, “There are so many casinos overseas, and details of the assets of many domestic entrepreneurs, individuals, and related parties would have been investigated thoroughly… This is very unsafe for us.” Liao added that Beijing needed to “severely crack down in accordance with the law.” Beijing is threatening to draw up a black list of those countries that target Chinese nationals for gambling purposes and while Macau is again not seen as a target, there has been an impact on liquidity amongst junket operators. Junket liquidity is reportedly at an all time low and there have been reports on social media of operators freezing clients’ funds, adding to the uncertainty. Gross gambling revenue in September fell 90 percent to MOP2.2 billion. Although disappointing, it was the best performance since March and was up from MOP1.33 billion in August. The September numbers prompted yet another round of downward revision from analysts for their forecasts for this year, with Deutsche Bank now expecting 2020 GGR to be down 77 percent to $8.49 billion from its prior estimate of $9.46 billion. It sees a rebound to $29.35 billion next year, trimmed slightly from $29.57 billion.
Operators participate in Beijing Macau Week Macau’s six operators travelled to Beijing in September to take part in a major marketing push to introduce non-gaming attractions, in conjunction with the Macau government. Beijing Macau Week was held on the capital’s busy Wangfujing Street. As well as leveraging the resumption of Mainland travel to Macau it also celebrated the 15th anniversary of Macau’s entry into the UNESCO World Heritage list. “As a company with its roots in Macau, we are obliged and delighted to tell Macau’s success story,” SJM Chair Daisy Ho said. “We look forward to rejuvenating Macau tourism and boosting the economy, joining forces with the Government and the local community.” Opened in 1970, Hotel Lisboa was Macau’s first integrated resort, blazing new trails in a pioneering spirit with its cylindrical hotel tower design. SJM held the monopoly until the market was opened to competition in 2002.
Asia Gaming Briefings | October 2020
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. It is also developing a resort in Cyprus and maintains a strong focus on Japan. Melco is seen as one of the stocks in Macau that is likely to outperform in the near term. The company has a strong exposure to the premium mass sector and according to Roth Capital, doesn’t suffer from some of the negative risk factors faced by the U.S. operators in Macau. These include a competitive disadvantage from China’s decision to ban the use of WeChat by U.S. companies, as well as a potential risk to license renewal should tensions with the U.S. escalate.
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 is non-gaming. Parent company Wynn Resorts has been working with the University Medical Centre Georgetown University and other leading laboratories to create a rapid Covid test. The company is building an on-site lab with UMC at Wynn Las Vegas to deploy thousands of accurate rapid tests daily at a fraction of the current cost. “Extensive research clearly indicates that what is keeping people away from Las Vegas is not so much the physical environment, which we work diligently to keep sterilized, but rather a fear of other people. We must alleviate that fear,” CEO Matt Maddox said in an op-ed.
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. As the operator with the largest mass market business, it’s likely to see an
Asia Gaming Briefings | October 2020
unfavourable market share trend in the near term, according to Roth Capital. Although the VIP-led recovery that had been predicted is now seeing road bumps due to issues such as capital flows, a return to mass volumes and visitation still seems a long way off. The company had a share of 29 percent at end 2019, but that was below 10 percent in Q2, the analysts said. It’s not likely to reach run rate until late next year, leaving its massive gaming halls largely unfilled.
MGM china 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 and its ramp up has helped the company gain market share in the latter half of 2019. MGM’s parent company recently raised $750 million through a senior notes offering. The company upped the size of the issue from $500 million initially. MGM said it will use the funds to refinance existing debt and for general corporate purposes.
Sjm holdings SJM Holdings (880:HK) has 22 casinos in Macau and is still targeting an opening by the end of this year for its Lisboa Palace resort once all the inspections have been completed. The company had been suffering a loss of market share in recent years to newer properties on Cotai, though has done well during the pandemic due to a local customer base on Peninsula Macau. Morningstar analysts recently noted that SJM is likely to be at the lowest point when it comes to market share this year and that it will begin to pick up once the Grand Lisboa Palace opens on Cotai. However, given the uncertainty around the postpandemic recovery, the firm doesn’t expect a full opening until the second quarter of next year.
Galaxy Entertainment Group Galaxy Entertainment Group (27. HK) has three main properties and runs three City Club casinos inside hotels. The
company is currently working on Phase 3 of Galaxy Macau, which is to feature 1,500 hotel rooms, some casino space, a largescale arena with 16,000 seats, and 400,000 square feet (37,161 sq metres) of MICE space. The launch is scheduled for the first half of next year. Galaxy is also expected to be one of the outperformers in the market because of its higher VIP and retail exposure. Jefferies notes that its EBITDA breakeven is lower than its peers in the low 30 percent of gross gambling revenue. Like its peers, the company has been working on cutting its costs and has reduced its cash burn to HK$2.5 million a day from $2.8 million at the beginning of the pandemic.
GREATER CHINA 9
Macau aiming for gaming bill next year
GROSS GAMING REVENUE Deutsche Bank
Monthly Gross Revenue
4Q20E $3.66n
-59%
30,000
2020E $8.49b
-77%
20,000
2021E $29.35b
2019
2020
25,000
15,000
+245%
10,000 5,000
2022E $31.98b
+9%
0
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
(Source: DICJ)
Macau expects a bill to amend the city’s gaming law to be available next year, ahead of the expiry of the current casino concessions in June 2022.The six operators will have to go through another public tender, but at present there is no clarity as to how the process will be carried out, or what extra conditions may be attached to the licenses, if any. Most market observers expect a clearer mandate to diversify their offerings away from gaming.The government has also said there are no plans to delay the tender. Some analysts have postulated that a delay is likely given the disruptions due to Covid-19.
Asia Gaming Briefings | October 2020
SOUTH EAST ASIA
10
philippines
Regions seen as outperformers Regional casinos in the Philippines are likely to resume their outperformance once the global pandemic eases as infrastructure improves and major projects come online.
SOUTH EAST ASIA
I
11
n 2019, casinos in Clark registered a 41 percent surge in gross gambling revenue, while those owned by Thunderbird Resorts posted a 27.5 percent gain. Although in overall terms it’s a drop in the bucket compared with the GGR of Manila’s integrated resorts, the growth outstripped Entertainment City, which saw a gain of 18.4 percent. Angel Sueiro, chief operating officer of PH Resorts, says that post-Covid the demand from clients is still there and the long-term fundamentals haven’t changed. But in the short-to-medium term, regional casinos in the Philippines will face the same headaches as those elsewhere, with reduced capacity due to social distancing measures and a lack of international travel. “It’s not the ideal situation,” he said. “The local market is enough to pay the bills, but not enough to make it a very interesting business. In order to make it a great business you need international.” David Lawrence, general manager - casino, at Thunderbird Resorts & Casinos, said business is currently down between about 50 to 80 percent on pre-pandemic levels, depending on the location and local quarantine restrictions. The company operates the Thunderbird Poro Point and Rizal resorts. Poro Point is about 4.5 hours by car from Manila on the northwestern side of Luzon, while Rizal is in the mountains about 45 minutes from Metro Manila. Lawrence is also confident the regions will again outperform in the longer term. “Definitely regional casinos will continue to see a faster GGR growth as regional infrastructure develops especially north of Metro Manila,” he said. “This will see an increase in both local
GROSS GAMING REVENUE
demand and foreign leisure travelers with IR projects in Cebu and Clark leading this push with several major projects already ongoing.” PH Resorts is building one of the biggest properties outside of Manila. The Emerald Bay Resort on Mactan island, Cebu, was designed by Steelman Partners. It is now targeting a soft opening in December of 2021, with Phase 1 scheduled for Q2, 2022 after Covid-related delays. Phase 1 will include 270 rooms and have 120 tables and 600 slots. Phase 2 will have 180 rooms.
We count on “ the local market
as the base, but we have a unique proposition.
”
The property will also feature convention, sports facilities and restaurants. The area is highly popular with Korean tourists and is also home to a population of about 50 million people in the region. Unlike in many jurisdictions in Asia, the locals are permitted to gamble and disposable income has been rising on the back of strong economic growth over the past few years. Having sustained average annual growth of 6.4 percent between 2010-2019 from an average of 4.6 percent between 2001-2009, the country is on its way from a lower middle-income country with a gross national income per capita of
(units in mil)
PAGCOR Operated Table Games
39
Slot Machines
49
Electronic Games
Q1
US$3,830 in 2018 to an upper middle-income country range of US$3,956–$12,235) in the near term, according to World Bank figures. “We count on the local market as the base, but we have a unique proposition,” Sueiro said. “We’re on a beautiful beach and very close to an international airport. It’s very important to have a very diverse customer base to avoid problems in the future.” At present, the Koreans and Chinese make up the biggest share of visitor numbers at about 45 percent each. China had been the fastest growing. PH Resorts also has a second casino resort in the Clark Freeport Zone, which already has about six operating casinos. The property is in the design phase and will be smaller than the Emerald Bay, which will be the group’s flagship. “It’s a different proposition,” Sueiro said. “You have the population around, as it’s north of Metro Manila. But there’s a lot of competition so the product is different and is more catered to the masses.” The resort will have about 400 rooms, 80-100 tables and 500-600 slots. It will try to recreate a neighbourhood feel, with multiple shops and restaurants. One of the key attractions about Clark is its strong infrastructure. The former air force base accommodates multiple international flights, while connectivity with Manila has also been vastly improved, taking only about an hour on the Luzon Expressway. Cebu is also seen as attractive with a new international airport opening up the region. As infrastructure improves, foreign investor interest is expected to grow.
Q2
Licensed Casinos
2,509
33,898
Entertainment City
3,427
Fiesta
1,959
435 19
Clark
1,294
186
10
Total
12,930 126
3,908
Total
38,242 2,164
Asia Gaming Briefings | October 2020
SOUTH EAST ASIA 12
Bloomberry Resorts
Resorts World Manila
benefited in recent years from a bridge linking the resort to the international airport.
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 company says it’s pushing ahead with plans to build Solaire North, a mass market IR north of Manila, as it doesn’t believe Covid-19 has changed the market fundamentals. Solaire is currently operating at 30 percent capacity and analyst Michael Ting, who publishes on the Smartkarma platform, believes Bloomberry can break even at the EBITDA level by Q4. “While daily demand remains choppy at best, we estimate that on average, Solaire is able to fill the 30 percent allocated supply,” the note said. “Given public concerns about the pandemic resulting in curtailed domestic travel, we believe domestic gaming demand still remains challenging,” he wrote in a recent note.
Travellers International Hotel Group, a joint venture between Genting Hong Kong and Alliance Global, is the owner and operator of Resorts World Manila. The company now operates seven hotels in Manila. The group is offering deep discounts and promotions to attract potential “staycationers” in the absence of international tourists. Special promos were offered by Holiday Inn Express Manila Newport City, Belmont Hotel Manila, and Savoy Hotel Manila, as part of the Hotel Sales and Marketing Association’s September online sale. A double room with breakfast for two was priced as low as P3,500. As Manila’s first integrated resort, RWM, has built a loyal following of local mass market players and has strong non-gaming offering targeting the local market. The property is not located in Entertainment City, but has
City of Dreams
Tiger Resort Leisure and Entertainment
Gross gambling revenue in Q2 in the Philippines came in at just P2.42 billion ($49.9 million) as the Covid-19 crisis forced the closure of gambling outlets across the country, according to figures from regulator, the Philippine Amusement and Gaming Corp. (PAGCOR). In Q2 of 2019, the country’s casinos, e-cafes and bingo outlets generated P60.65 billion in revenue, with an additional P1.32 billion from online gaming operators. The majority of the revenue in the quarter came from casinos in Manila’s Entertainment City, which have been operating on a limited capacity to certain invited guests. They took in P1.95 billion in the three months to end June. For the first half of the year, the Philippines recorded P55.33 billion in revenue.
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. Fitch Ratings sees significant uncertainty about the recovery and expansion prospects of Okada Manila given the severity of the Covid-19 outbreak in the Philippines. In a note explaining the negative ratings outlook given to parent company Universal Entertainment, Fitch also said the weak economy and a lack of consumer confidence could lead to a prolonged earnings decline. “The IR business expanded rapidly prior to the pandemic and accounted for more than half of UEC’s consolidated revenue and EBITDA in 2019,” the note said. “The IR was hit hard in 2Q20 by the lockdown of central Manila, revenue dropping 97 percent yoy and EBITDA swinging to a loss from a solid profit a year earlier.” The operator has been cutting costs and is now permitted to operate at 30 percent of capacity, but Fitch expects performance to be weak through the end of this year, with EBITDA and free cash flow likely to be negative.
Asia Gaming Briefings | October 2020
The $1.3 billion City of Dreams Manila is owned by Belle Corp and Melco Crown 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. For Q2, Melco reported operating revenues at City of Dreams Manila were US$7.2 million, compared to US$176.1 million in the second quarter of 2019. It recorded an adjusted EBITDA loss of US$22.6 million compared with a profit of US$82.8 million a year earlier, due to the Covid-19 lockdowns.
Covid virtually wipes out Q2 GGR
POGO departures not an “exodus” Presidential spokesman Harry Roque has rejected suggestions that the reduction in the number of Philippine Offshore Gaming Operators (POGOs) leaving the country represented an “exodus.” “I think the word ‘exodus’ is not correct,” he declared. “It’s not an exodus because the policy of the Department of Finance is clear—pay up or otherwise you cannot operate in the Philippines.”“What happened was, only 20+ of the 60 POGOs complied with the requirements of the Bureau of Internal Revenue,” he added. The previous day, Finance Secretary Carlos Dominguez III told a Senate hearing that “POGO and service provider clients have started canceling their leasing contracts for lack of business.” The Philippine Senate has revised the basis of the POGO’s franchise fee to 5 percent of gross bets from 5 percent of net winnings after tax avoidance concerns became widespread.
13
Asia Gaming Briefings | October 2020
FOCUS 14
Monitoring the Mekong Before the Covid-19 crisis, tourism in the Greater Mekong Sub-Region was at a record high, on track to welcome 80 million visitors in 2019, generating some $90 billion in revenue.
R
egional governments have focused on interregional cooperation, putting agreements in place to help improve tourism infrastructure and promote each other’s respective countries, creating a vibrant internal Mekong market. The nations have also been at the forefront of investment into integrated resorts, with Vietnam seen as one of the most attractive jurisdictions in Asia. Myanmar, keen to boost its foreign exchange reserves and pull in more visitors, last year passed legislation setting out a framework for legal casinos. While Cambodia, once seen as the wild-west of casino investment in Asia, is slowly evolving. In our focus section, we look at opportunities around the region and efforts that are being made to make up for the current lack of international travel. We hone in on recent proposals in Vietnam that will allow investment in infrastructure in designated economic zones to be counted when it comes to minimum capital requirements for integrated resorts. This key change will allow a major project in the far north of the country to proceed. The Sun Group is aiming to create a tourism and entertainment zone in Van Don, which may become home to as many as eight casinos. Once a remote and difficult to access area, it is now served by a new international airport and highways, which have cut the travel time to Hanoi to just 3.5 hours. We also take stock of the situation in Cambodia.
Asia Gaming Briefings | October 2020
At the beginning of last year, the government banned online gambling, pulling the rug out from many of the properties that had sprung up to make money out of live dealer operations. Many of those have now shut up shop, while the current pandemic has also dealt a further blow to the market. Adam Steinberg, a long-time casino consultant, with first-hand experience of Cambodia, discusses the nation’s potential and the right business model for the market. In our third piece, we examine how regional governments have been forced to focus on boosting the domestic tourism market to try to fill the vacuum left by international visitors. On the whole, demand for internal travel has been strong, though in most of these countries it hasn’t helped operators as locals aren’t allowed to gamble. Those with large expatriate populations, especially of Chinese business executives, have done better. NagaCorp in Phnom Penh for example has seen its volumes in the mass market return to about 97 percent of its prior levels, though the more volatile VIP segment has been lagging at just over 70 percent. Casinos in most other areas are waiting for borders to reopen, so they can service their prior cross-border clientele. However, if travel in the Greater Mekong Sub Region returns to pre-pandemic trends, the future should be bright for tourism and integrated resorts in this vibrant area of Asia.
WE SURVEYED 500 PUBS
AUSTRALASIAN GAMING SURVEY
FOCUS 15
Covid-19 Response
Q. WHAT is the most important learning you have gained as a result of the crisis?
Q. WHAT actions have you taken regarding egms?
& CLUBS
Used Signage
56%
Increased Distance
56%
Deactivated EGMs Moved Machines
ACROSS
Reduced the Number
ANZ ...
Surrended Machines
AND HERE ARE THE RESULTS.
Explore gaming industry data from a truly insightful perspective and use it to transform your business challenges and opportunities into valuable commercial assets.
46%
Set up Screens
Q. WHAT PAYMENT RELATED CHALLENGES HAVE YOU FACED?
31% 22% 8% 1%
Q. WHEN DO YOU EXPECT REVENUES TO RETURN TO NORMAL?
Paying Suppliers
68%
Paying Utility Blls
56%
Paying Saff
47%
Paying Rent
44%
Paying Contractors
Revenue is Normal (11%) In less than 6 months (6%) In 6 months to 12 months (17%)
35% 0
25
In 12 months to 24 months (48%) It will take longer than 24 months (18%)
50
Q. HOW MANY EGMs ARE CURRENTLY ACTIVE?
Q. VISITATION IS AT WHAT % OF PREPANDEMIC LEVELS? NSW VIC QLD
Less than 25% are active (13%) Between 25 and 50% are active (16%)
Other 0
25
50
75
100
Between 50 and 75% are active (39%) More than 75% are active (32%)
Weekday
Weekend
Asia Gaming Briefings | October 2020
FOCUS 16
Van Don eyes tourism/ entertainment hub Vietnam is seen as one of the most promising emerging markets in Asia and recent changes in regulation will unlock plans for an ambitious project to create a Macau-style entertainment hub in the north of the country.
T
he government recently announced it plans to allow funds invested in infrastructure in designated economic zones to be counted as part of the minimum capital requirements for integrated resorts. The country’s gaming decree stipulates that developers need to spend $2 billion on the resort and at least $1 billion needs to be disbursed before the casino license will be issued. The new proposal still needs to be ratified by the parliament. That was creating roadblocks for investors in the Van Don Special Economic Zone in particular, as the area suffered from poor infrastructure and required substantial investment to improve access. Sun Group, a Vietnamese property developer, holds the license to run casinos in the zone and is now expected to proceed with its project, which is close to the UNESCO World Heritage Site of Ha Long Bay.
Asia Gaming Briefings | October 2020
The group has already invested VND7.5 trillion ($322 million) in Van Don International Airport, which opened in December 2018 and VND12 trillion into the 60km Ha Long-Van Don Expressway which is expected to be complete in 2021. However, the integrated resort portion of the zone was delayed pending government decisions on the minimums. According to the company’s website, it was initially forecast to begin construction in 2017, with completion in 2025. To be built over 2000 hectares, the resort will include hotels, villas, apartments, a theme park, commercial center, exhibition space, sports complex with horse racing and an 18-hole golf course. Sun Group is the only casino license holder, but the resort may house up to eight separate casinos. Situated 15 minutes from the airport and 3.5 hours from Hanoi on the new highway, it will also be linked by road to Mainland China.
FOCUS 17
“I would put Vietnam as the hot spot in Asia right now,” said Ben Lee, managing partner in iGamiX Management & Consulting, which is involved in the Van Don and other projects in the country. “One of the unique factors is the land border with China, which no other regulated jurisdiction other than Macau has.” “Despite the political differences, it has been an attractive destination for the Chinese, with a unique culture and at reasonable price points,” he adds. Dr Oliver Massmann, a partner with law firm Duane Morris, who has more than 20 years of experience working in Vietnam, also cited the country’s dynamic economy with a rising metropolitan middle class, as well as a huge potential for tourism, with long coastlines and natural landscapes, as key draws. Last year, Vietnam attracted a record 18 million tourists, generating revenue of $31.4 billion. China was the main source market accounting for 5.8 million of the total, followed by South Korea with 4.2 million. It is also one of the best-performing economies in Asia, with gross domestic product expanding by about 7 percent in 2019. Vietnam hasn’t escaped the economic ravages of the Covid-19 pandemic, but is expected to still record growth for the year as a whole. Economic reforms launched since 1986
have lifted millions out of poverty. Currently about 13 percent of the 97 million population are considered middle class and that’s forecast to rise to 26 percent by 2026, according to World Bank figures. Locals are only allowed to gamble in two casinos in the country under a three-year pilot
“
I would put Vietnam as the hot spot in Asia right now.
”
program. One of those is Van Don and the other is the Corona Resort & Casino on Phu Quoc. Developed by Vietnam’s Vingroup and managed by Netherlands-based Upffinity, Corona last year got about 45 percent, or 47,400, of its casino guests locally last year. The resort opened in early 2019. Hong Kong-listed Suncity Group Holdings holds a contract to provide management and technical support to the Van Don project. It has
also opened its own $4 billion foreigner-only property in the centre of the country. The central region around Danang is viewed as having among the most potential due to its strong flight connectivity, however, properties there are not allowed to accept locals. “The ban on locals gambling is still a major hurdle,” Dr Massmann says. “The government seems reluctant to open the floodgate. If foreign investors cannot access local customers they will have to rely almost exclusively on foreign tourists and that may be challenging in the short term due to Covid.” He adds there are further drawbacks in that casinos need to be integrated into a wider hospitality project, which means higher entry costs, involving large areas of land and investment in connecting infrastructure. Vietnam has eight operational properties that have doubled their revenue in the past three years, from VND1.19 trillion in 2017 to VND2.5 trillion in 2019, according to Ministry of Finance figures cited by local media. The contribution to the State budget rose from VND645 billion to VND1.34 trillion. Dr Massmann says aside from Hoiana, which is scheduled to open fully next year, there are a further two IRs that have received approval -- Laguna Lang Co in Hue and Casino KN Paradise Cam Ranh in Nha Trang.
Asia Gaming Briefings | October 2020
FOCUS 18
Adam Steinberg*
Rightsizing Cambodia’s casino industry post-Covid 19 Through government action and a cultural norm of wearing face masks when ill, Cambodia has seen few get sick during the COVID-19 pandemic. According to the World Health Organization, Cambodia has 275 COVID cases and zero COVID-related deaths as of the last week of September.
H
owever, the pandemic has had an impact on Cambodia’s economy. Cambodia has been one of the fastest growing economies in the world, with annual GDP growth between 6 percent and 7.5 percent since 2009. But the Asian Development Bank estimates GDP will contract 5.5 percent in 2020; reversing gains made in combating poverty. In 2008, 47.8 percent of the population lived below the poverty line, declining to 12.9 percent by 2018. The Asian Development Bank estimates the contraction will push around 20 percent of the population below the line in 2020.
Asia Gaming Briefings | October 2020
The decision to close the country’s casinos limited COVID’s spread but impacted the economy because tourism is one of two important industries driving Cambodia’s economy. A reinvigorated Cambodian casino industry could drive a recovery in Cambodia’s fight against poverty. However, casino industry investment has to mature to bring real gains to the Kingdom. The casino industry in Cambodia has been self-regulated consisting of NagaWorld and a couple of other regional resorts, including Donaco’s Star Vegas Resort and Club, while the remainder of the country’s over 190 casinos are no-frills properties for the hard-core gamer. Many of
FOCUS 19
those properties were created to profit from online, live table gaming, but the Kingdom’s decision to ban such operations in January 2020 resulted in many properties closing. Because the industry doesn’t report gross gaming revenue (GGR), the actual GGR is unknown, but based on public reports, property visits and conversations with operators and suppliers it is estimated that NagaWorld generates more than half of Cambodia’s GGR. There are a number of elements that make Cambodia an attractive market for casino operators, including relatively low costs to operate and a young motivated workforce, but, we believe there are four factors that should make operators confident to invest in Cambodia’s casino industry: • The NagaWorld success story: the property in Phnom Penh is an entertainment destination with international 5-star quality hotel rooms, numerous F&B options, live entertainment and retail. The company achieved peak market capitalization of over $8 billion in November 2019, before COVID-driven market declines. Since its IPO, the company has paid more than $1.2 billion in dividends. • The Law on Management of Integrated Resorts and Commercial Gambling: establishment of a regulatory oversight function will provide comfort to international operators, lenders and investors to invest in Cambodia. Additionally, the tax rate (7 percent on mass market GGR; 4 percent on junket GGR) is low relative to other Asian markets; thus, providing an investment incentive. • China’s Ministry of Culture and Tourism blacklist of overseas tourist destinations: the Ministry statement highlighted those countries on the blacklist are “endangering the personal and property safety of Chinese citizens.” From our experience, we find Cambodia to be a relatively safe country to visit, while the larger resorts employ safety measures that we did not experience visiting some of the no-frills gaming centers. • Increasing foreign direct investment (“FDI”): Cambodia was one of four ASEAN nations to achieve record FDI in 2019, leading to increases in the expat community and business-related visits. The casino is a secondary reason to visit Cambodia, while close government relations will also protect Cambodia from China’s blacklist.
Based on the above noted qualities, the gaming industry in Cambodia should develop fewer, but larger resorts, with suitable nongaming amenities for the expected growth in tourism. The Cambodian Ministry of Tourism estimates international visitation will reach 12 million visitors by 2025, up from 6 million visitors in 2018. Built correctly, the casino industry is positive for a market, bringing skilled, high paying jobs and direct and indirect benefits for local small businesses. From Naga’s 2019 annual report, we note 94 percent of the company’s over 8,600 employees are Cambodian and wages are higher than the national average with a shorter work week and other benefits. The company contributed approximately 1.2 percent to Cambodia’s national GDP. The difference between Naga and, to a lesser extent, Star Vegas, from the other casino properties in the country is the investment in non-gaming amenities such as restaurants, nightclubs, retail and luxury hotel rooms. The benefits of these investments are longer stays by property patrons and enhanced safety for international visitors from China and other southeast Asian nations, such as Malaysia, Thailand and Vietnam. In the absence of a potential COVID vaccine, social distancing guidelines will reduce the potential profitability of a casino property, but these
other amenities are an added inducement to visit and will offset lost revenue from fewer gaming positions. The size and scale of such investment will be dependent upon total casino licenses issued and the ease with which international travelers can get to the destination. Phnom Penh is the capital and home to the largest airport; thus, investment in this market will be larger than investment in other cities. Nonetheless, international integrated resort developers can generate sufficient ROI to justify investing in Cambodia. * Adam Steinberg is Founder of AM Steinberg Advisors, a consultancy specializing in the hospitality, leisure and travel industries on a global basis. Before forming AM Steinberg Advisors, Steinberg was Advisor to the CEO of NagaWorld Limited, where he led all international development efforts, including assessing market potential, identifying operating partners and sourcing opportunities to develop land-based casinos in the ASEAN region. He also researched and presented findings to the CEO and Board of Directors on incremental distribution channels. Prior to joining NagaWorld, Steinberg was with Spectrum Gaming Group and Spectrum Gaming Capital.
Asia Gaming Briefings | October 2020
FOCUS 20
Filling international visitor gaps Jurisdictions around Asia are noting a strong surge in domestic tourism as a result of the pandemic, but border reopenings remain some way off and local traffic is unlikely to do enough to offset lost revenue in the IR industry.
S
peaking at the recent Destination Mekong Summit, leading officials from the region outlined the impact the Covid-19 crisis has had on their respective tourism industries and the measures they have implemented to mitigate the effects. They also spoke about how their respective countries are approaching opening up their borders again to international visitors. Dr Han Van Sieu, Vietnam’s vice chairman of the National Administration of Tourism, said the country had seen a 62.4 percent drop in the number of tourists visiting, which has hit the country’s small and medium-sized tourism businesses the hardest.
Asia Gaming Briefings | October 2020
The government has implemented a package of measures to alleviate the pain, including a five-month suspension of tax and land rental fees, the provision of low interest loans and a 20 percent discount on electricity tariffs. It has also cut takeoff and landing fees by half. Vietnam was quick to bring the pandemic under control and began opening up to domestic tourism in April, with a major marketing push to get people moving again. He said the campaign had been a success before a second wave hit in early August, forcing a step backwards. In June and July, domestic tourism numbers were close to their normal levels, with destinations
FOCUS 21
in Danang and Phu Quoc running at about 20 percent above their 2019 levels. Phu Quoc island hosts the Corona Resort & Casino, which is the only one in Vietnam currently permitted to allow locals to gamble. Recently the Ministry of Finance said 45 percent, or 47,000, visitors to the resort last year were locals. Danang is also home to several casinos, though only Vietnamese holding foreign passports would be permitted to enter. The major focus for the government at present is on reactivating domestic tourism again, although Dr Sieu said that talks are beginning on how to establish travel bubbles with destinations considered as “safe,” or which had had similar infection levels to Vietnam. These include Japan, China, Taiwan, New Zealand, Australia and South Korea, he said, but gave no timetable for a potential reopening. According to figures from ForwardKeys analysing flight searches, domestic travel interest across Asia has surged during the pandemic.
In Thailand 67 percent of travel searches in June for the second half were related to domestic destinations, compared with just 21 percent last year, while in Vietnam it was 61
We will look at “opening up certain
areas and if it goes well, we will open other areas in due course.
”
percent compared with 15 percent. Cambodia, which has also had a low infection rate, is also gradually opening its tourism facilities and casinos. NagaCorp in Phnom Penh opened
on July 8th and has said it has seen positive numbers, whilst resorts in Sihanoukville have also been able to open their doors. NagaCorp said for August, its gambling revenue was close to pre-lockdown levels due to pent up demand from Chinese expats living in Cambodia. VIP rollings were running at 98 percent of their prior levels, while main-floor buy-ins stood at 90 percent. Like Vietnam, however, locals are not permitted to gamble in the casinos and the doors remain closed for foreign tourists. Minister of Tourism Dr Thong Khon said that Cambodia is working on plans to create travel bubbles, but that is not expected to happen until 2021. Overall in Cambodia, domestic tourism is down about 10 to 15 percent, but he did see signs that on major holidays demand is picking up. The five-day Khmer New Year holiday was held in August this year, having been pushed back from its usual date in April. During the festivities 1.4 million Cambodians travelled to domestic destinations, generating $100 million in revenue. Thai senator Weerasak Kowsurat struck an upbeat note for tourism in the Southeast Asian region, predicting that “there will still be carriers and there will be people sitting in them.” In the meantime, Thai resorts are also getting support from local tourists, with hotels in Hua Hin and Pattaya completely full. He said resorts that were close to major cities were benefiting from locals taking long weekend breaks. When it comes to reopening international borders, Thailand is considering a slightly different approach and is looking at opening up two of its islands — Koh Samui and Phuket — to tourists. The plan had been to begin Oct. 1st, however, fresh cases look to have delayed the process. “We will look at opening up certain areas and if it goes well, we will open other areas in due course,” he said. Panel moderator Steven Schipani of the Southeast Asian division of the Asian Development Bank praised the efforts taken by the various governments to support their tourism industries through the crisis and to retain jobs. However, he noted that domestic tourism will not be able to fill the vacuum created by a lack of international visitors. “Until we can reestablish international visitation we are going to have a hard time,” he said. “Last year the talk was about over tourism and now it’s the opposite. We now have the opportunity to do things differently.”
Asia Gaming Briefings | October 2020
22
NORTH ASIA
22
japan
Reading Japan’s political runes The appointment of Yoshihide Suga as prime minister of Japan may have subtly shifted the sands when it comes to the two top contenders to host an integrated resort in their cities.
Asia Gaming Briefings | October 2020
O
saka was the clear favourite amongst international operators, with the majority focusing their efforts on winning a license there. Then along came Yokohama and some of the biggest names rapidly switched their allegiances. On the face of it, having Suga in the top position should be a further point in favour of Yokohama. However, in Japanese politics it’s not that simple. Suga’s House of Representatives home territory is the Kanagawa 2nd District, which consists of Yokohama city’s Nishi, Minami, and Konan wards, directly adjoining the Yamashita Pier area, which is the candidate location for the IR. He has held his seat in this single-member constituency in every general election since 1996. While the first instinct might be to think that a more powerful Suga would mean a more powerful Yokohama IR bid, the reality is likely the opposite. In his current post he (and Yokohama) will be under greater scrutiny. Not only is it more difficult for him to help his constituency behind the scenes, but even if he does nothing and Yokohama wins its IR bid, suspicions are bound to be raised. Indeed, it is easy to predict that the vibrant Yokohama anti-casino movement will immediately begin to embrace and promote the notion that corrupt schemes are afoot and that Suga is pulling the strings to bring the IR to his home city. Within weeks or months, this image of political corruption can be expected to proliferate on the Japanese left. Osaka on the other hand has no such complications. The crux of the matter is that Suga is both perfectly distant and perfectly close to help the Osaka government in its IR ambitions. Neither Suga nor his family have any close ties with Osaka, it is not his own electoral district, and no one can accuse Osaka Mayor Ichiro Matsui and Osaka Governor Hirofumi Yoshimura of being Suga’s political puppets, as is sometimes alleged in the case of Yokohama Mayor Fumiko Hayashi. Put another way, if Suga helps facilitate Osaka’s bid to gain one of the three available IR licenses, few observers will allege that this is a matter of his own corrupt self-interest. But Suga is also perfectly close to Osaka’s political leaders. He sought out and established a tight friendship with Matsui during the time of the Democratic Party of Japan regime, and he maintained it once he became chief cabinet secretary under Abe in December 2012. In all the years since then, Suga was the Osaka leaders’ main pipeline to the central
NORTH ASIA 23
government in terms of budget requests and other key matters. Suga is known to have played a major role in mobilizing central government support for Osaka’s successful bid to host the 2025 World Expo. Little remarked upon in the national and international media, but hardly without significance in this context, is that Suga, as he became prime minister created only one new Cabinet post—Minister in charge of the 2025 Osaka Kansai World Expo. Shinji Inoue, former Vice-Minister of the Environment and the Cabinet Office, was appointed to the new position. The winds of fortune also seem to be blowing in the Osaka leaders’ favor in terms of their most cherished objective; the administrative unification of Osaka prefecture and city into a single metropolis on the lines of Tokyo. After a long and hard political struggle, a second referendum on the issue is now set
to be held this autumn and, unlike their first attempt in 2015, polls suggest that they are likely heading for victory. This initiative has always been the most fundamental policy of the Osaka Restoration Association / Japan Innovation Party that Matsui heads, and now they are within striking distance of achieving what at certain junctures appeared to be politically impossible. Should the referendum vote indeed go their way, Osaka city’s 24 wards will be consolidated into four special areas with greater autonomy, scheduled to launch at the beginning of 2025, the same year as the World Expo. So while Covid-19 and the bribery scandal and disapproving public opinion are rattling the prospects for IR development in Japan generally, Osaka may be quietly reassuming its former position as the local IR bid in the healthiest political shape.
Overseas visitor arrivals 2016
2017
2018
2019
2020
3M
2M
1M
0
Jan
Feb
Mar
Apr
Mai
Jun
Jul
Ago
Sep
Oct
Nov
Dec
(Source: JTB Tourism Research)
Court dismisses Okada’s appeal against Universal
Prosecutors seek jail for Kamori in 500.com case
Universal Entertainment Corporation said the Tokyo High Court has dismissed its founder Kazuo Okada’s latest appeal against the company. According to the statement, “the Tokyo District Court, acknowledging that the fraudulent acts were conducted under the order of Mr. Okada, also acknowledged that Mr. Okada breached both his duty of care of a good manager and his fiduciary duty of loyalty as a director of the company, and accepted all claims of the company.” Universal and its subsidiary Tiger Resort Asia have been seeking damages from Okada on claims that he fraudulently transferred company resources to personal accounts. Okada was appealing against a February verdict which ordered him to pay nearly US$200,000 to his former company.
Prosecutors have asked that Kimihito Kamori, the former chairman of Kamori Kanko, serve ten months in prison for his role in the 500 .com bribery case. Kamori had been seeking to win an IR bid for his resort in Rusutsu village, Hokkaido, which was in competition with the more powerful Tomakomai bid within the northern prefecture, and he admittedly participated in efforts to bribe lawmaker Tsukasa Akimoto. “I enthusiastically made an appeal to attract an IR to Rusutsu village, Hokkaido, and was actively involved in the crime. It was a vicious crime that significantly damaged confidence in IR policy,” Kamori admitted in a statement to the court. The defense team is asking that Kamori be spared prison and subjected to fine instead.
Asia Gaming Briefings | October 2020
24
Asia Gaming Briefings | October 2020
25
Asia Gaming Briefings | October 2020
NORTH ASIA 26
south korea
Navigating nasty surprises When anyone mentions online gaming in Asia, one country used to come to mind as the primary target – China.
H
owever, recent political and domestic changes in and around the Mainland have shown this jurisdiction drop by up to 60 percent in important metrics such as gross gambling revenue and net profits for leading operators and game providers, even affecting the one time untouchable Playtech, as is widely known by last year’s profit warning. And while that happened, other markets emerged as the “next best thing” across Asia. Japan almost needs no introduction although it still remains a very challenging market. India has been appearing on many radars as well, with the emergence of new casinos and cricket focused-sports betting sites.
Asia Gaming Briefings | October 2020
Other Southeast Asian jurisdictions, such as Thailand and Vietnam, have been of interest for many but have always been outshone by the bright lights of Chinatown. One country has stood out for decades as the most opaque, mysterious and hard to penetrate regions in the world for online gambling – South Korea. With a massive average player value, Korean players are some of the biggest value players in the world, alongside their neighbors the Japanese. Generally known as a sports market, heavily reliant on affiliate traffic and virtually nonexistent payment solutions – South Korea has been very low on the priority list of major operators, and as a medium priority for the
more adventurous ones. Ruled primarily by local unlicensed casinos and some internationally licensed sites with a heavy presence in Manila, it is no surprise that up until recently there was not even a single licensed site fully dedicated to South Korea. Yesbet88 changed that in 2018, by becoming the first licensed operator making South Korea its only market. And with that ground broken, came many hard lessons and busted myths that I would like to share with AGB readers. Let’s untangle some of the larger questions, which may also apply to other jurisdictions across Asia.
NORTH ASIA 27
Courtesy Vicky Yu: Unsplash
ways of managing and marketing – the entire thing was doomed from the start. In fact, the only time we started seeing the money was when we let go of the entire old school thought team and started over with our own knowledge, doing our own marketing and our own hiring of staff.
1. Korea is the China of 10 years ago. Players still prefer Live Dealer, even though trust in the slots vertical is growing. In my opinion, Korea will go through a similar transition as China did from 2009 to 2012. Putting aside the disastrous Covid-19 impact on global sports and sports gambling, Korea was known to be a mostly sports-based gambling geo. I find that to not be true for online gambling and such statements are reserved probably for the agency and land-based operators, but not for the pure online ones. 2. You do not need a local country manager. This may be hard to believe to an outsider, but I say this wholeheartedly. While managed by our Korean partner, Yesbet88 was on the verge of bankruptcy practically every month. Whether it was the myth of affiliates owning the market, excessive and careless spending on KTV drunken nights to shower the so called market influencers with expensive alcohol and entertainment, or the old school
3. You do need a local payment contact. The one thing you’ve heard that is absolutely true about Korea is how hard Payment Processing is. If you are not on the ground, with local contacts in Asia AND you can trust the person who does payments for you – you cannot operate in Korea. Korea is an advanced country. There are no e-wallets that allow gambling, there are no shortcuts, like VenusPoint or iWallet in Japan, and one needs to find creative ways to be able to accept, exchange and remit player funds. The risk is high with every transaction, bank accounts will be blocked and players will threaten you on a daily basis. 4. You will be swindled. There is no way around it. There is no way to avoid it. Only minimize it and catch it in time. Somehow, some way, at some point. This geo will take a small 5 finger discount out of your brand, which you need to be prepared for and accept as admission fee. 5. The Devil is not so bad. It’s the deadly sins that will destroy you. Copy paste marketing from your successful European geo; short term vision; wrath over the sure-to-happen disasters; and prideful inefficiencies in localization will all catch up to you in Korea faster than you can eat a bowl of Bibimbap. If you take it seriously and your business is sharp and honest about its operation, then you may have a chance to crack Korea as your next market. To sum up, operating in Korea requires men (or women) of focus, commitment, and sheer will. I am proud to say Yesbet88 has been doing that for the last couple of years mainly and mostly due to those traits and I have no doubt that growth is expected for years to come for those few selected operators who have what it takes. * David Greenfield is chief marketing officer for Yesbet88, a Curacao-licensed i-gaming operator focused entirely on the Korean market.
GROSS GAMING REVENUE Kangwon Land 2019 Sales KRW1.52t Q2 KRW34.6b
+5.7% -91%
GKL 2019 Sales KRW490.75b Q2 KRW23.3b
+2.2% -89%
Paradise 2019 Sales KRW979.4b
+24%
Q2 KRW74.6b
-68%
Lotte gets nod for Jeju move Lotte Tour Development shareholders gave their consent for the company, established in 1971, to move its headquarters from Seoul to the soon-to-be opened Jeju Dream Tower.The Jeju Executives’ Association welcomed the transfer of the company headquarters to their island. “The investment of over 1 trillion won (US$950 million) by Lotte Tour Development in the Jeju Dream Tower Complex Resort is the largest ever investment in Jeju island made with entirely domestic capital, and we hope this investment will serve as the foundation for the growth of the Jeju economy.” The statement added.
National Pension Service cuts GKL stake South Korea’s National Pension Service has been reducing its stake in Grand Korea Leisure, a movement attributed to concerns that Covid-19 will exercise a long-term impact on GKL’s ability to generate profits. Since the beginning of April, public disclosures revealed that the NPS stake in GKL has been reduced from 13.05 percent to 9.93 percent, as of September 4. Analysts believe that the NPS is reacting to the fact that the foreigner-only casinos will have difficulty rebounding in the context of Covid-19 travel restrictions. From January to August, GKL recorded a total of 3.58 million visits to its three casinos, which is a 72 percent decline on the 2019 figures. The lack of visitation from China and Japan is seen as particularly damaging to GKL’s bottom line.
Asia Gaming Briefings | October 2020
NORTH ASIA 28
russia
Russia growth prospects fail to excite Summit Ascent Holdings says it remains “cautiously optimistic” about the long-term future of Russia’s Far Eastern gaming zone, but has begun looking for faster growth opportunities elsewhere given the political and economic instability in the country.
T
he Hong Kong-listed company owns 60 percent of Oriental Regent, which operates the Tigre de Cristal property in the Primorye gaming region near Vladivostok. The zone is expected eventually to host a cluster of integrated resorts, however, construction and other delays have meant that it’s still the only one currently operational. The Shambhala resort, owned by Russian entrepreneur Max Smolentsev, was due to open its doors this summer, though as of going to press, there was no set date for its debut.
“
Summit Ascent conceded that given the prevailing financial conditions it would be prudent to diversify its income sources.
”
In a recent fund raising exercise, Summit Ascent conceded that given the prevailing financial conditions it would be prudent to diversify its income sources. The group earned revenue from gaming and hotels of HK$532.8 million last year, up from $463.15 million a year earlier and $470.82 in 2017, suggesting a slow ramp up at Tigre de Cristal. “The Russian Federation faces many potential challenges, among others: a large
Asia Gaming Briefings | October 2020
state footprint, insufficient infrastructure, low levels of competitiveness, underinvestment, dependence on raw materials, and poor economic climate,” the group said. It also pointed to political instability and the severe economic sanctions faced due to the 2014 Ukrainian crisis. As a result the Russian economy has seen average gross domestic product growth of 1.4 percent between 2016 and 2019, compared with 6.6 percent in the Philippines. In search of diversity, about half of the HK$1.6 billion Summit Ascent intends
to raise from a share issue will be used to subscribe for bonds in a Suncity unit that is developing the Westside City IR in Manila’s Entertainment City. The group is pressing on with its current plans for Phase II expansion of the resort, but does not intend to expand the scope of the development. The design is being tweaked after changes suggested by Summit Ascent’s new majority shareholder, the Suncity Group. It’s now targeting a 2022 opening for the first stage of Phase II. The new facilities will double the group’s VIP and mass gaming
NORTH ASIA 29
tables and slots and will have at least twice the hotel capacity. It will include four restaurants and bars, additional retail offerings, and an indoor beach club and spa. Construction on the $200 million expansion plan will begin in the fourth quarter of 2020. For the first half of 2020, Summit Ascent posted a HK$47 million loss, compared with a HK$42.8 million profit in this same period last year as Covid-19 shut the Tigre de Cristal from March 28 to July 16. The group reported that it had HK$816.7 million of cash on hand as of June 30. The company’s statement to the Hong Kong Stock Exchange expressed optimism about its future: “Unlike many businesses impacted by this global crisis, the group is well positioned to weather the current turmoil as it sits on huge piles of cash generated from the past years… The group has ample liquidity to survive this unprecedented period of ‘near-zero revenue.’ Tigre de Cristal has been able to deliver strong local business in the past few years, especially in the mass tables and slots. As borders are still not yet fully opened, the group will continue to focus on its strength previously–the local market.”
GROSS GAMING REVENUE Revenue
Profit*
Loss*
*Comprehensive income attributable to owners of the company 500,000 400,000 300,000 200,000 100,000 0
2017
2018
2019
2020 (end of June)
Nagacorp’s Primorye IR inches ahead NagaCorp, operator of the NagaWorld casino in Cambodia, recently said its project in the Primorye gaming zone was “broadly on track” to begin operations in 2022. In its interim results announcement, the company said the hotel tower topping off was completed and construction of the casino podium was progressing up to level 2. Water and sewage systems connected to the development site are expected to be completed by the third quarter of 2020. The first phase of the project includes a hotel, casino and a conference hall. The company signed an accord for a resort of not less than $350 million in 2013 and set a target opening date of 2019.
Duma passes punitive sports betting law Russia has approved legislation that will significantly overhaul its sports betting industry, imposing tax on bets placed on overseas events and extending financial obligations to all market participants. The State Duma passed the bill in the second and third reading, according to law firm Dentons. The new rules pose limits on the types of events that can be wagered on, limiting activity to those held by Russian national sports federations and professional sports leagues. It also allows sports events held by international sports organizations, although Dentons says at present the definition of those organizations isn’t clear. Operators accepting bets on non-Russian sports will now be required to pay contributions to Russian sports federations, which amount to at least 5 percent of GGR every three months. An operator may have a license withdrawn if it fails to pay the relevant contributions within a three-month reporting period. Furthermore, it will no longer be possible to have a license on both sports betting and tote betting.
Asia Gaming Briefings | October 2020
30
AUSTRALASIA
30
AUstralia
Probe reveals governance “debacle� Crown Resorts is expected to keep its coveted Sydney license, but a suitability probe has unveiled a pattern of compliance breaches and lax corporate governance at the Australian operator.
Asia Gaming Briefings | October 2020
T
he inquiry, which is being held by New South Wales’ Independent Liquor and Gaming Authority, resumed in July after a three-month suspension due to Covid-19. Senior executives testifying at the trial have shown a “troubling” lack of awareness of common operational practices within the company, with presiding judge Patricia Bergin commenting that the situation had reached “debacle” levels after testimony from CEO Ken Barton. Barton had said he was unaware of cash deposits being made in a Crown Melbourne VIP room run by Suncity Group until they were shown on a television report. While Crown’s general counsel and company secretary Mary Manos revealed she did not look into the bank accounts of two Crown investment companies - Southbank Investments and Riverbank Investments - which had been accused of laundering cash from drug traffickers. The inquiry is looking into whether Crown is still suitable to hold a license for its new $2.2 billion ($1.56 billion) VIP-focused property in Barangaroo and whether it breached the terms of the license by selling an almost 20 percent stake to Melco Resorts & Entertainment. The probe follows an investigative report in Australian media that alleged money laundering, links to organized crime and immigration offenses. The stake sale to Melco has since fallen
AUSTRALASIA 31
through, but raised red flags for regulators as one of the conditions of the original license was that Crown had no dealings with any companies linked to former Macau king of gambling, Stanley Ho. New South Wales authorities allege Ho, who died in May, had links to organized crime. Melco is run by Ho’s son Lawrence, but Great Respect, a company representing family interests, including Stanley, holds a 26.5 percent stake in the Macau operator. Crown Non-Executive Director Michael Johnston, who was involved in negotiating the sale on behalf of shareholder James Packer, told the inquiry that little thought had been given to the potential impact on the license. The sale, agreed in May last year, was to have taken place in two tranches, though the second part was abandoned and Melco sold its 9.9 percent stake to The Blackstone Group in April this year. Johnston said he had tried to interest Packer into considering other buyers, but was overruled. Despite the troubling governance revelations in the trial, J.P. Morgan said it believed Crown would manage to hold onto the license, although it may be subject to a short suspension. The main reason is the actions the company has announced to overhaul its compliance measures. Crown has said that it has stopped all operations with junket operators until the end of
Ainsworth focuses on R&D/content
GROSS GAMING REVENUE
Ainsworth Game Technology says it will prudently invest in research and development to position itself for a long-term post-pandemic recovery. The Australian supplier posted a statutory net loss after tax of A$43.3 million for the fiscal year ending June 30th, compared with a profit of $10.9 million the year before. Revenue dropped 36 percent to $149.4 million for the full year. In the pandemic-affected second half, revenue was down 63 percent. Research and development spending increased by 2 percent to $41.2 million. “We continue to progress our development plans with a more targeted and innovative approach to ensure an improvement in overall game performance is achieved,” CEO Lawrence Levy said on a conference call. “This is expected to ensure a greater market share within all global markets where we operate.” Online revenue increased by 10 percent. Ainsworth said it has expanded partnerships with social game providers and launched a U.S.-based remote gaming server. These initiatives are expected “to provide complementary revenue gains within online social and real money gaming segments in future periods,” it said.
Crown Resorts FY2020
June next year while it reviews procedures. It has also appointed Australian Criminal Intelligence Commission’s Melbourne operations manager, John Yates, to head up its anti-money laundering and compliance efforts. However, J.P. Morgan does point out that the inquiry may attach more strings to the license, which could have significant ramifications. “CWN is entitled to claim compensation worth 10.5x the estimated negative financial impact from almost “any action” the NSW government takes which changes, or has the effect of changing, its license,” it said. The minimum compensation due is $200 million, unless Crown is found to be in breach of its license conditions. According to local news reports, taxpayers in New South Wales will be liable to foot the bill for any compensation payments. Critics of the 2014 license deal made with Crown argue that the terms of the license undermined the local government’s ability to act in the public interest. Crown Sydney is scheduled to begin opening from December. It will be the country’s first six-star resort and will have about 349 rooms and 14 restaurants. No slot machines will be allowed and the property had been expected to focus on Asian VIPs. However, Australia is not expected to open its borders to international tourists for the foreseeable future.
Star Entertainment FY2020
EBITDA $504.6m
-40.6%
EBITDA $282m
-49%
NPAT $79.5m
-80.2%
NPAT ($95m)
-147%
Revenue $2.2b
-25.7%
Revenue $1.4b
-31.1%
HatchAsia signs Silver Heritage takeover deed HatchAsia has signed and executed a Deed of Company Arrangement to take control of Australia-listed Silver Heritage Group. HatchAsia is paying A$530,000 in cash and 3 percent of the issued shares. Following the transaction it will own 92 percent of the struggling operator. The takeover needs shareholder approval. Silver Heritage announced in May that it was going into voluntary liquidation after the Covid-19 crisis forced the closure of its Tiger Palace property in Nepal and exacerbated a liquidity crisis. It also said its main lender OCP has said it was unwilling to extend any further financial support. HatchAsia is involved in projects ranging from strategic consulting, software development, land-based deployment and back office processing.
Asia Gaming Briefings | October 2020
SUPPLIER SPECIAL REPORT 32 AstroPay
Immediate, easy and safe
R
ecently, AstroPay launched One Touch, the digital wallet that allows a frictionless journey for users who want to purchase online on international sites. The concept behind One Touch can be summed up in three words: immediate, easy and safe. Operators can easily access the benefits that this product offers from a single integration. They can identify users from a single code, allowing greater control over transactions and minimizing risk. They can receive deposits with a simple “touch,” with automatic approval for recurring users, which will generate greater fluency and less friction in the interaction between the merchant and its customers. It enables KYC verification and identification control and has a simplified integration process through an auto enrolment channel, with little to no IT intervention required on the merchant side.
Moreover, they will have a closed loop to their users, to assure that the same person that deposits makes the withdrawal. They will also be able to access analytics and reports, as well as fraud alerts that meet the levels of security and compliance the industry requires. Users can make deposits and withdrawals through a natural and simple procedure that allows them to set configurable auto limits, as well as generate an account or buy balance from the merchant site. “With One Touch we improve the user experience as well as provide merchants with a safer solution that allows them to process deposits and withdrawals automatically and with greater risk control,” said Mikael Lijtenstein, CEO of AstroPay. AstroPay, a company operating in Latin America, Africa and Asia for more than 11 years and with a presence in several of these regions, aims to help merchants access emerging markets more easily and safely.
bbin
BBIN promotes health and hygiene in India
I
n October, 2020, BBIN’s charitable brand TGB Charity, worked with SAATH and Unipads on a new project to promote the understanding of health and sanitary knowledge in India. TGB Charity donated US$60,000 and hosted more than 100 workshops in campuses in Gujarat, India, where children were taught about health and sanitation. Meanwhile, 12,000 reusable sanitary pads were given away on-site to girls, preparing them for the up-coming physical and mental transformation. As a leading iGaming software supplier in Asia, BBIN has been working with non-profit organizations to raise public awareness towards charity through fun and meaningful activities. TGB Charity has focused its efforts on various fields, endeavoring to make a significant difference to the world. Education is one of the major topics that TGB Charity values highly. Through working with local institutions, TGB Charity promotes health/sanitary education to decrease the chance of girls dropping out of school due to menstruation. In the future, TGB Charity will continue to draw public attention to global issues, sharing love and warmth to the world. SAATH, a non-profit organization in India, has been contributing to children’s rights to education and lives; meanwhile, they provide residents health care, employment consultancy
Asia Gaming Briefings | October 2020
and skills knowledge. Unipads, a reusable sanitary pads company, focuses on corporate social responsibility — providing women job
opportunities and improving their quality of life, and empowering the rural areas with health education in knowledge and resources.
SUPPLIER SPECIAL REPORT 33 BetConstruct
East & West virtual expo reconnects the industry
W
ith free passes for visitors and flexible stands for exhibitors, BetConstruct’s East & West virtual expo reconnected the industry and created the largest virtual gathering accessible to everyone involved in gaming and sports betting. On the first day of the expo, industry giants and supporters showcased the best new products and technologies at personalised interactive stands and joined the talks on talent acquisition and industry innovation at the Conference Hall. By day two, the success of East & West was already abundantly clear. Building on the event’s
momentum, BetConstruct has now decided to give its exhibitors an opportunity to further explore the capacities of the platform and hold digital presentations, virtual exhibitions and product showcases during the whole month of October absolutely free of charge. Commenting on the announcement, Vigen Badalyan, CEO and founder of BetConstruct, said: “Just like anyone, we miss physical exhibitions, the opportunities to see each other, network and have a glass of wine to seal the deal. In vino veritas, as we all know. Although we don’t know when the consequences of the pandemic will pass and allow us to meet again, our East & West
virtual expo presented a compelling model for how industry events can be organised in force majeure situations in the future. “For East & West we created the best tools to bring life and excitement to the virtual exhibition. We attracted key industry players under one virtual roof and with their help and support, BetConstruct will perfect said tools. 250+ exhibitors, including our business partners NetEnt, Playtech, EGT Interactive, eBET, SBC, Sportel and ICE were the first to test out our software, step into the virtual floors of East & West and say their first virtual hello to the visitors of the expo.”
their preference without having to raise CAPEX in order to purchase game conversion, as is the common industry practice today. “I am proud to be working with Amatic over the past five years, as they have shown commitment to this Asian development, by not rushing in, but first spending time here in Asia to understand players interests, engaged with local operators to understand and identify strength and opportunities within the market. This was brainstormed and discussed in detail before R&D game development work began, to enter this market with a meaningful game offering that takes advantage of operators frustrations while adding variety and preference within one multi-game, languages and denominations within a game pack.”
These ten Asian centric games have been developed using a varied array of game types, while keeping the Asian game volatility focus across these following DICJ approved themes; Dragon Gift: Big Panda; Dragon’s Pearl; Three Dragons; God Of Wealth; Golden Rain; Beauty Warrior; Wild Dragon and Golden Emperor.
BLUE TECHNOLOGY
Streamlining conversion
B
lue Technology remains committed to understanding local requirements and working with our partners to develop games and solutions for ease of business, while streamlining game conversion. One such project, which was recently approved by Macau’s Gaming Inspection and Coordination Bureau, is with Amatic Industries, where we developed 10+1 games on the machine hard drive, giving the operator the choice to select any one of these ten games + one feature game configuration. It allows player selectable English, Simplified Chinese & Portuguese language options and multi denomination selections. The key difference to this unique approach is it gives operators the flexibility to configure to
Asia Gaming Briefings | October 2020
SUPPLIER SPECIAL REPORT 34 DIGITAIN
Making tax less tedious
D
igitain has launched its new Tax Engine - an automated tool developed to allow operators to deal with complex betting tax requirements. Edmond Ghulyan, Digitain’s Head of Sportsbook Development said, “This development came about as a result of feedback from some of our partners who needed help in complying with betting tax requirements in regulated markets. Our new Tax Engine does all the heavy lifting for the operators and allows them to confidently tackle their key business objectives.” Key functions of the Tax Engine include the ability to automatically deduct betting tax from the customer’s stake, from their winnings, or in the case of some countries, from both ends of the transaction. The Tax Engine offers multiple potential tax configurations and is suitable to be used in markets globally. This flexible solution works efficiently with all versions of the Digitain sportsbook - from Turnkey to Sportsbook API, and also works across all channels; web, mobile and even in betshops. The Tax Engine includes
a sophisticated suite of reporting tools to enable operators to provide compliant and accurate data to regulators. In other news, Digitain also announced a new partnership agreement to supply sportsbook services to leading Russian operator; Pin-Up. For Digitain, Edmond Ghulyan said; “Pin-Up operates two separate sportsbooks, one for the Russian market, the other with
an international focus - and combined have over 100,000 active customers. Digitain looks forward to developing a very long and beneficial relationship”. Pin-Up’s COO, Vladimir Gorev stated; “We’re delighted to partner with Digitain and feel sure that integrating their fully featured sports betting offering will be warmly welcomed by all our customers.”
Endorphina
Don’t fear the future, make the future fear you
E
ndorphina is a popular slot game provider known for its creative twists and trendy games. Endorphina releases an incredible range of slots, each with characteristics that will appeal to every type of player, leaving no one behind. Continuing its ambitious march around the world, Endorphina proposes its slot in multiple languages and includes a great bonus tool, which allows a high level of transparency and flexibility to deduct the bonus cost with Free Spins. Its recent futuristic slot - The Rise of AI has been extremely popular in Asian cultures due to its unique symbols and daring theme taking place in the heart of Tokyo. This is a 5-reel, 3-row, 10 pay line slot game that brings players right into a new cyber world packed with robots, cyborgs, neon lights, techno music and many uncertainties. The futuristic symbols reveal what life would be like in a truly anti-utopian cyber world that only seems to exist in Sci-Fi novels. This slot, its features, and its Risk Game provides an out of this world experience. Especially for those Japanese Sci-fi lovers and players who are experienced in cryptocurrencies, this is definitely the best choice.
Asia Gaming Briefings | October 2020
Set in 2050, the world has just recovered from a pandemic and is under the control of an AI. Players will be engaged to find out if their heroes will survive, win big, and to uncover what the future has in store for them.
If you interested in providing this rush of pure adrenaline for your players learn more about this game and see if it’d be the perfect fit in your casinos, check out the game at – https:// endorphina.com/games/the-rise-of-ai
SUPPLIER SPECIAL REPORT 35 Habanero
Happy Ape, happy customer
A
lot has changed in 2020. It’s safe to say that global markets have been rocked by a dramatic series of unforeseen events, and our industry has certainly seen its share of alterations. In spite of all the changes, some things have remained constant. Talk of a large-scale migration to the casino sector amongst sports bettors, for example, has not panned out in reality. Although Skill games, poker, virtuals and esports have
all registered a significant uptick, the number of players enjoying casino titles has generally stayed the same. For that reason, the retention of existing customers remains priority number one for the coming months. And above all, high-quality content will ultimately prove key to engagement. Enter Habanero’s latest smash-hit, Happy Ape. We went bananas with new features in the
action-packed 5x3 release, which encourages Jungle Book fans to access modifiers and multipliers by unlocking the game’s alluring treasure chest. The innovative Ape Smash feature removes nonwinning combinations to award prizes, with up to six further Wild symbols landing on the grid during the Banana Toss feature. The title’s immersive soundtrack and stunningly realistic graphics recreate the thrill of swinging from the trees for nature-loving gamblers with a taste for adventure. And for those dreading a winter without European travel, we’ve pulled out all the stops in the internationally popular slot title, Scopa. Launched earlier this year, the title takes players on an action-packed tour of Italy’s internationally renowned cities, trying their hand at the country’s most popular card game en route. A beloved national tradition for more than 200 years, Scopa (meaning broom) rewards those who ‘sweep’ the table by matching another player’s card. Inspired by the card game of the same name, Scopa showcases expanding wilds, stunning graphics and historically themed characters in an authentic adventure through some of Italy’s most-visited destinations. With stay-at-home restrictions likely to stay in place, Habanero’s adventurous titles allow players to discover new environments without leaving the house.
Interblock
Elevating excitement with Golden Ball
I
nterblock’s latest innovation on the classic Roulette game, combining both mechanical challenges and software ingenuity, is the Golden Ball. It was first launched at G2E Las Vegas 2019 and ICE London 2020 on the MiniStar Roulette platform, taking on Interblock’s unique Roulette ball changer magazine and a golden ball creating Golden Ball Mystery and Lucky Number Golden Ball side bets. Golden Ball Mystery side bet wins up to 500:1 if the roulette ball lands on one of the six randomly selected roulette numbers represented by the letters G, O, L, D, E and N. Lucky Number Golden Ball side bet allows the player to place a bet on a lucky number. The appearance of a golden ball guarantees a side bet win 3:1 unless the golden ball lands on a chosen number, which pays 350:1. Whenever a golden ball comes out, the
betting field user interface changes to a golden glow, coupled with an attractive audio-visual display around the Roulette rim and on a 42” Player Information Display (PID). The side bets are designed to increase the hold of the traditional Roulette single zero and double zero games, increase occupancy and appeal to new types of players. “The Golden Ball side bets brings an elevated level of excitement and anticipation to an otherwise traditional Roulette game. We look forward to bringing this feature to your region in the coming months,” said Michael Hu, President of Asia for Interblock. Interblock is a worldwide leading developer and supplier of luxury electronic table gaming products. Its multi-player gaming devices set industry standards and provide the ultimate in luxury interactive entertainment experiences.
Asia Gaming Briefings | October 2020
SUPPLIER SPECIAL REPORT 36 Jade Entertainment
Immersive arcade experience
I
nspired by Atari, but built with today’s players in mind, Synergy Blue’s new 2600 cabinet series combines the immersive experience of an arcade with the excitement of wagering to create the perfect blend of ‘fun you can bet on!’ Synergy Blue’s new 2600 cabinet series is designed to invoke the memories of discovery,
excitement and fun experienced at the dawn of the video game era, drawing in new players with crisp graphics and familiar visual elements, while fast-paced fun keeps them engaged. Echoing the original Atari 2600 console, the new cabinets provide casinos with a unique marketing element, as well as more variety of gambling options for today’s players. From the thrilling arcade driver, Joyride Jackpot, to mobile-style games like Lucky Candy Ca$h and Mahjong, Synergy Blue truly has something for every type of gamer and gambler. To address the current need for increased sanitation and cleanliness on casino floors, the 2600 cabinet series comes standard with Blue Safe Touch technology, which incorporates modern safety measures for continued cleanliness and sanitary playing conditions for today’s casino gaming environments. The 2600 series is available in XL (40” wide-set), Slant Top (28” width), or bar top versions and features a variety of cabinet configurations including arcade driver, joystick, buttons, arcade gun, touchscreen and more.
NOVOMATIC
Asian progressives add colour
W
ith a gaming show calendar full of postponed and cancelled events, there was little opportunity to present the growing range of NOVOMATIC Progressives to a broader audience, face-to-face – but, nonetheless, there’s plenty to see! CASH CONNECTION Edition 1 has now launched, with installations rolling out in the international markets. This Linked Progressive multi-game compendium comprises four titles with a variety of Progressive options: Charming Lady, Emperor’s China, Empress of the Pyramids and Sizzling Hot Lock’N’Win. Presented in banks of leading NOVOMATIC single screen and multi-screen cabinets, each title comes with a Lock’N’Win feature that thrills players with instant prizes and more and more chances for the big jackpot wins. Adding two special Asian highlights to the broad NOVOMATIC game portfolio, the single-screen titles Dancing Tiger and Dancing Lantern present colourful variations of the popular ALLPAY game play and exciting Standalone Progressive thrills. The central character on both titles is the benevolent Asian Emperor, keeper
Asia Gaming Briefings | October 2020
of a marvellous bowl full of gold coins and jackpot treasures. Both games come with a Free Games feature including a Mystery Pick option, plus a Pick & Win Jackpot Feature for the SILVER, GOLD, MAJOR or GRAND. POWER PRIZES is another set of Standalone Progressives that is getting ready to launch with three magnificent Asian ALLPAY titles: Noble Peacock, Royal Crane and Eternal Mandarin Ducks. The precious Lotus Flower opens extra chances in the free spins while Red Envelopes add some extra Coin power to trigger the POWER PRIZES Coin-Respin Feature for the jackpot prizes. With player-friendly multi-denomination options and the most powerful talismans crowding the reels, the POWER PRIZES collection of games can be presented in both, single screen curve and multi-screen versions for all the latest NOVOMATIC cabinets. As autumn moves on, further Progressive products will make their mark – with the LUCKY TWIST Link soon ready to launch, the stunning Samurai Beauty preparing to hit the Gong for great news and even more Progressive highlights in the pipeline.
The video game-like wagering experience of the 2600XL is further enhanced by arcadestyle peripherals, including an arcade driving configuration (complete with steering wheel and foot pedals), making it stand out on the floor and attracting players who seek a different, more modern gambling experience. Synergy Blue works with Jade Entertainment Solutions to deliver ‘fun you can bet on’ to Asia Pacific and the surrounding areas. As experts in their market, Jade works with individual operators to determine which of Synergy Blue’s one-of-a-kind gambling experiences would best fit their unique players. Built for maximum fun and flexibility on Synergy Blue’s patented HAWG platform, the 2600 cabinet series is now part of the exciting offering provided by Synergy Blue and delivered by Jade. Coupled with a wide-ranging library of exciting, skillinfluenced games, Synergy Blue’s new hardware provides the fun and interaction that today’s players expect — bringing the modern gaming experience to casino gambling, the key to attracting new demographics.
SUPPLIER SPECIAL REPORT 37 Play’n GO
Keeping its promises
A
s we move towards the end of the year, we are also moving closer to Play’n GO fulfilling its promise of 52 top-quality games in 2020. It all started back in January with Legacy of Dead, and the success of that title set the tone for what would be a colossal year for the supplier and their operators. Our commitment to giving More. In One GO, was not just a testament to increasing the number of games that we offered to the market but offering more within those games. That meant more mechanics, more features, more variety to add to your already stacked portfolio and, most importantly, more value for operators and their players. The latest title on the road to 52 is the biggest one yet, Reactoonz 2. A sequel to the smash hit cascading gridslot Reactoonz; this newest title has already taken the market by storm upon its release. While Reactoonz 2 brings back all of the elements people loved about the first game; its cascading grid format, its lovable characters and its bright and fun style of gaming, it also takes the opportunity to add more to the player experience. That includes introducing brand new features such as the Quantumeter, and Electric Wilds, and also adding new characters to the
grid, in the form of the Energoonz! Play’n GO has aimed for the perfect balance between the familiar theme and gameplay of the much-loved original, and new and exciting elements to create a new dimension to Reactoonz that aims to augment the first
game experience, not replace it. A challenging task but, from the initial reaction to the game’s release, it can safely be said it’s one that they have succeeded in. We look forward to what the rest of the year brings.
SA Gaming
SA APP supports screen rotation
M
obile gaming is a huge market where technologies are ever-changing. To stand out from such competition, suppliers have to combine technology, innovation and design into products and features that can win the favour of the market. As one of the leading platforms in Asia, SA Gaming has recently made portrait mode available to its native app, SA APP. Most of the apps available in the market can only run in landscape mode. SA APP offers its users both landscape and portrait modes. Most important of all, users can rotate their screens any time in the app to achieve seamless orientation change. Gaming has become even more convenient. SA APP is a one-stop mobile gaming portal developed by SA Gaming. Apart from supporting in-game screen rotation, it comes with several features that provide the best user experience for players. Containing all
the functions of H5 Mobile, SA APP has its UI re-designed and re-engineered to cater for human needs and to fit across all screen sizes. SA APP is compatible with both iOS and Android devices. The app is capable of fitting in various screen sizes – both landscape and portrait orientations. SA APP also places great emphasis on ease of use. The provider has spent enormous resources to add features that facilitate the use of the app. There are various modes of log-in to suit users’ needs. Other than conventional password log-in, there is pattern log-in, where users can draw unique patterns to access the lobby effortlessly. SA APP is the hard work of SA Gaming’s programmers and designers, who spend their every effort to ensure everyone can enjoy a great and smooth gaming experience. It is the gaming app that all players need on their devices.
Asia Gaming Briefings | October 2020
SUPPLIER SPECIAL REPORT 38 Synectics
Enhanced cybersecurity
S
ynectics recently launched a range of new security features in its advanced Synergy software to deliver unparalleled protection for customers. Sitting at the heart of casino control rooms around the globe, the Synergy command and control platform powers security solutions for the most demanding gaming environments. Built on a rich history of customer-driven innovation, the platform is regularly updated in line with rapidly evolving demands from both clients and the wider industry. A continued focus on cybersecurity now sees Synergy include a range of additional safeguards, including the new Secure Check feature. This interactive tool displays recommendations to improve system security and enable administrators to implement changes, all from a single dialog box. Notable checks include encryption of comms and configurations, password management, and workstation lockdowns. Further enhancements to existing system protection measures make it easier to monitor and enforce the management of authenticated system access.
As Dan Noble, Product Manager – Synergy, at Synectics, explains, these capabilities are particularly important when it comes to demonstrating compliance with regulatory demands. Dan said: “Adherence to strict security and data sensitivity protocols is not an option. It’s fundamental. Therefore, our goal is to make it as easy as possible for our customers to implement. With these latest developments in Synergy, that’s what we’ve done. “We’ve made it considerably easier for users to safeguard their systems and data, and to assign
TVBET
TVBET partner network grows
T
VBET has continued to grow its partnership network, inking new deals with sportsbook platform provider BtoBet and online casino software developer SoftGamings. BtoBet has a strong focus on African markets, which dovetails with the plans of the TV games provider. According to TVBET, players in Africa have a crush on lotteries in live streaming format. And that’s why the company makes it possible to satisfy customers’ needs as best they can. BtoBet is a pioneer in the sports betting and online casino technology solutions, providing award-winning sports betting and online casino solutions and a full range of management services to its clients. Thanks to technological intelligence at the core of products and deep know-how at the local level, all its products and services are fully compliant in regulated markets all over the world. “I am sure that our lotteries in live streaming format will be highly popular
Asia Gaming Briefings | October 2020
with BtoBet’s portfolio of partners,” said Peter Korpusenko,TVBET’s CEO. “It is our goal to deliver an optimal betting experience through product innovation, and that’s why we seek to satisfy all customers’ prerequisites, whatever the market characteristics.” With Softgamings, an online casino software developer, TVBET aims for a cooperation that will enhance both the image and the effectiveness of both teams’ promotion. TVBET aims to create immersive content for betting and casino players. Its progressive card-, table- and lottery games are well loved and the cooperation with SoftGamings will allow the company to expand its coverage with greater speed. “The cooperation of TVBET with SoftGamings will lead operators to new opportunities,” Korpusenko said. “Thanks to the new live TV games offering, clients could satisfy the needs of the more demanding audience. This strong signing represents a win-win situation for both companies.”
a much wider range of permissions, restrictions, and approvals for specific tasks and scenarios. It all adds up to a solution that significantly enhances cybersecurity and promotes process-driven, efficient usage that complies with regulatory requirements.” Specialising in solutions that are engineered with gaming in mind, Synectics applies more than 30 years of experience to deploy dependable surveillance systems in over 100 of the largest, busiest, and most tightly regulated casinos in Asia, North America, and Europe.
SUPPLIER SPECIAL REPORT 39 UltraPlay
Taking the risk to innovate
“I
nnovation is something you create before the need for it is born. That’s why it’s so risky in the beginning,” said Lyubomira Petrova, CMO at UltraPlay during the European Gaming Congress, which was held online in October. “When UltraPlay started offering eSports back in 2014, it was perceived just as that - unreliable and risky, as we were the first in many ways. Now eSports is no longer perceived as a niche gambling vertical, and has shown the entire industry its great potential especially during COVID-19 and the lack of sports events over the past few months.” Petrova was part of the panel discussion on the latest industry innovations and how the industry has adapted to current times, together with other professionals from the iGaming industry. The panel highlighted product innovation and enhanced user experience and placed these two elements at the cornerstone of every business that wants to stay relevant and a few steps ahead of market demand. In terms of innovations that have been key this year acquisition and retention wise, Petrova
pointed to eSports as the main driving force for sportsbooks during these past few months. Sports punters shifted quickly towards eSports - another testimonial for the great potential it holds. UltraPlay continues to record a great interest. For example, the company’s trading team is experiencing unprecedented levels of bets on the first to return live major tournament – League of Legends Worlds. This
was the first big eSports live tournament to return in 6 months and the entire viewership as well as betting on it skyrocketed. Esports betting continues to grow exponentially and does a perfect job in terms of player acquisition and retention. The key reason for that is its main audience – the new generation of bettors, who tend to prefer more skill or knowledge based-gambling.
products, planning the next steps to bring Asia its incredible video slot games, as well as further expanding its already important presence in the video bingo market.
As Nadège Teyssedre, Director for EMEA of Zitro commented, “The global situation has forced all of us to change our short-term goals, however, our long-term vision hasn’t changed at all. Thus, our complete Zitro team, including the team based in the Philippines, is working hard in getting everything ready to execute our ambitious plans and focusing full steam ahead to extend our brand all over the Asian region.” Sebastian Salat, CEO of Zitro adds: “Experience taught us that whenever an obstacle arises, an opportunity usually goes along with it. As the effects of COVID are being felt in land-based venues we understand PAGCOR may be considering regulated Online and Mobile gaming in the Philippines. Zitro has outstanding offerings in this area and we are already preparing the groundwork with local partners. Whether for land-based or online operators, at Zitro we have a diverse, robust and performance proven game library that is a sure investment for any gaming establishment”. To find out more about Zitro’s product visit www.zitrogames.com or contact its commercial office in the Philippines lead by Rodney Hall via rodney.hall@zitrogames.com.
ZITRO
Long-term vision intact
Z
itro continues its plans of expansion in the Asian region. While the world has been hit by the most severe crisis in recent history, the company has not stopped working on new
Asia Gaming Briefings | October 2020
Become a member
40
SUBSCRIPTION FORM, PLEASE TICK AS APPROPRIATE, USE CAPITAL LETTERS
STANDARD MEMBERSHIP BENEFITS TOP NEWS HEADLINES
SINGLE MEMBERSHIP
E-BRIEF CONTAINING IN-DEPTH FEATURE ARTICLES SEARCHABLE ARCHIVE OF GAMING NEWS
US$ 128.00/ MONTH, 6 MONTHS - US$ 768.00
DISCOUNTED ACCESS TO EVENTS AND OTHER AGB PRODUCTS
US$ 108.00/ MONTH, 12 MONTHS - US$ 1,296.00
$615 $1,035
CORPORATE STANDARD MEMBERSHIPS THREE (3) MEMBERSHIPS: 10% DISCOUNT
FIVE (5) MEMBERSHIPS: 20% DISCOUNT
6 MONTHS: US$ 690 EACH Total: US$ 2,070 (Save: US$ 234)
6 MONTHS: US$ 615 EACH Total: US$ 3,075 (Save: US$ 765)
$ 552 each
12 MONTHS: US$ 1,165 EACH $ 932 each Total: US$ 3,495 (Save: US$ 393)
$ 492 each
$ 828 12 MONTHS: US$ 1,035 EACH each Total: US$ 5,175 (Save: US$ 1,305)
* Sign up and pay in full for 12 months and get the 13th month free!
TEN (10) MEMBERSHIPS: 35% DISCOUNT
$ 399
6 MONTHS: US$ 499 EACH each Total: US$ 4,990 (Save: US$ 2,690)
$ 672 12 MONTHS: US$ 840 EACH each Total: US$ 8,400 (Save: US$ 4,560)
* The above discounts cannot be used in conjunction with any other discount
CONTACT INFORMATION FIRST NAME :
LAST NAME :
:
SKYPE NAME :
COMPANY
:
ROLE
ADDRESS
:
STATE
:
CITY
:
:
PROVINCE :
USER NAME :
POSTAL CODE
:
MOBILE
:
COUNTRY : +
PHONE
:
+
PAYMENT DETAILS: HSBC HONG KONG | “BLUE SKY VENTURE LTD” | #658-046347-838 | SWIFT: HSBCHKHHHKH I WOULD LIKE TO SETTLE VIA CREDIT CARD. PLEASE SEND ME A DEDICATED PAYMENT LINK TO THE EMAIL ABOVE
WHAT IT IS
WHAT YOU GET
AGB serves as a platform for multiple levels of information about the Asian gambling industry in the form of feature articles, latest news headlines, network-
AGB consists of a weekly eBrief reporting on recent regional news and developments in the Asian gambling industry. Articles are written by experts living and
ing events, directories of key authorities and players, bespoke research, introduction services, and access to experts who can answer your questions.
working in Asia and cover a range of legal, operational and market issues, offering in-depth analysis of the opportunities these developments provide for operators and those who work with them.
WHAT’S DIFFERENT
WHY YOU NEED IT
Our extensive network of regional advisors ensures that the intelligence you receive is real, topical, and based on fact. No other service gives you such comprehensive insights into the political, legislative and competitive developments affecting the markets in this region, and what they mean for you. Get your information from the horse's mouth, not from third parties
Gain access to the vast knowledge and experience of those who actually work in and with the Asian gaming industry and get the inside scoop on the next great opportunities, as well as answers to your everyday operational challenges. By becoming a member, you also connect with other like-minded people who want more than just surface-level information.
AGB- Asia - Asia GamingBrief Brief| Trading | TradingasasBlue BlueSky Sky Venture- Reg#43675 - Reg#43675SO SO | enquiries@agbrief.com AGB Gaming Venture | enquiries@agbrief.com A s i a G a m i n g B r i e f i n g s | O c t o b e r 2 0 2 016/F
China Law Building, 409 Av. da Praia Grande, Macau SAR | P.O. Box 1139
CALENDAR OF EVENTS 41
2021
october G2E Digital Event 27-28 October 2020 https://www.globalgamingexpo.com/
november Cyprus Gaming Show 9-10 November 2020 Nicosia, Cyprus https://www.cyprusgamingshow.com/ Ukrainian Gaming Week 26-27 November 2020 IEC Pavilion, Kiev https://ugw.com.ua/en
december
february Sigma Europe 16-18 February 2021 MFCC, Malta https://register.sigma.com.mt/malta/
march IMGL Spring Conference 10-12 March 2021 Athens, Greece https://www.imgl.org/conferences/spring/overview/2020 SPICE India 23-25 March 2021 Goa Marriott Hotel, India https://www.sportsbettingevents.com/spice-india
May G2E Asia 25-27 May 2021 Venetian Macau https://www.g2easia.com/ Sigma Manila 27-28 May 2021 SMX Convention Centre, Manila https://www.sigma.com.mt/en/events/asia
JUne ICE London 29 June - 1 July 2021 Excel Centre, London https://www.icelondon.uk.com/
World Gaming Executive Summit 7-9 December 2020 W Hotel, Barcelona https://www.terrapinn.com/conference/world-gamingexecutive-summit/index.stm
Become a member Exclusive access to AGB Intelligence BE the first to receive our daily briefs priority registration for our events
REGISTER NOW AT AGBRIEF.COM
Asia Gaming Briefings | October 2020
LAST WORD 42
Weaning away from China Sharon Singleton
Managing Editor, AGB
There’s no getting away from it. China is and is always likely to be the dominant force in tourism trends in Asia, just through sheer strength in numbers.
A
nd that is always going to be a risk for the Greater Bangkok market, which is home to 15 million region’s casino operators, especially with and about three hours away by improved highways. According to a report in the Vietnam Times from Beijing ratcheting up its sabre rattling about capital outflows and countries targeting May this year, the current estimate is that Vietnamese spend $1 billion on gambling overseas. its nationals for gambling. Scruffy border casinos have long been a feature It’s an even bigger risk for those operators in countries where locals are not allowed to gamble, which of Asia’s gambling industry to cater for those seeking a quick punt, being unable to do so at home. But as at present is really most markets around the region. However, behind the China-dominated travel per capita income grows, the type of spending and headlines, there are trends quietly emerging that demand for international-style facilities is likely to may prove healthier for the long-term development expand in tandem. The Greater Mekong Sub Region, which also of the IR industry. The focus of our magazine this month has been includes the Chinese provinces of Yunnan and Guangxi, was on track for 80 on the Mekong and that is million international visitors an interesting case in point. in 2019, with an estimated Gambling is prohibited in spend of about $90 billion. Thailand, outside of horse The interAccording to the World racing, while Laos, Myanmar, regional travel Travel and Tourism Council, Cambodia and Vietnam do not Myanmar, the PRC, Thailand, allow their nationals to gamble. market has been and Vietnam will rank among These might be considered to seeing decent the world’s top 10 fastestbe some of the jurisdictions most growing destinations for leisure at risk from China’s penchant growth and in the travel spending between 2016 for using its international future may provide and 2026. travellers to peddle political Countries within the region soft power and it might yet more support and a are actively working to promote prove to be the case. China wider client base for and market inter-regional tourism has risen rapidly to dominate and to improve infrastructure to visitor arrivals in most of these casino resorts. enhance connectivity, especially markets in recent years. between secondary destinations. But the inter-regional travel At a meeting in November market has been seeing decent growth and in the future may provide more support last year, the Greater Mekong Tourism Working Group signed an accord to strengthen cooperation and a wider client base for casino resorts. Thailand, one of the world’s biggest destinations in tourism and attract more tourists to each country. Cambodia Ministry of Tourism spokesperson for inbound tourists, saw about 11 million Thais travel outside the Kingdom’s borders last year, spending Chuk Chumno said the group had already worked $10.3 billion, according to the Ministry of Tourism together to build a coastal highway connecting and Sports. That’s up from just 4 million a decade ago. Vietnam, Thailand and Cambodia, while Phnom Penh Malaysia and Laos were the top destinations for received aid to build a tourism seaport in Kampot. Assuming tourism trends resume their former those travellers and regional operators have noted that Thai’s are becoming an increasingly important growth trajectories once Covid-19 is under control, source of clientele. Donaco’s Star Vegas property China will certainly be the top prize market, but won’t in Poipet for example is specifically targeted at the necessarily be the only game in town.
“
”
Asia Gaming Briefings | October 2020
43
Asia Gaming Briefings | October 2020
