InfinityGaming www.gaming-awards.com | ISSUE MAY2017
GAMING + ARTICLES + BUSINESS+ GLOBAL+ ONLINE + NEWS
2
MAY 2017
49 BRAZIL BIGGEST Market in South America
18 24
THE FORGOTTEN ONES Teresa Tunstall
29 PENNSYLVANIA Is it a Lottery?
Opinion Disclaimer: The views and opinions expressed in all external articles are those of the authors and do not necessarily reflect the official policy or position of The Infinity Gaming Magazine Any content provided by our feature writers or authors are of their opinion, and are not intended to malign any religion, ethic group, club, organization, company, individual or anyone or anything.
INFINITY GAMING
MAY 2017
4 EDITOR NOTES Lana welcomes you to the latest edition of Infinity Gaming Magazine.
6 OUR WRITERS Meet our feature writers, the superb writers on our rosta.
08 WIG FINALISTS Women in Gaming Awards
12 GIBRALTAR FEAR
12
The Spanish Acquisition
18 THE FORGOTTEN ONES Teresa Tunstall
GIBRALTAR FEAR Christina Thakor-Rankin
24 THE IMPORTANCE OF GUANXI In the VIP Market
GUANXI VIP Desmond Lam
29 PENNSYLVANIA LATEST Lottery to run online?
49 FBRAZIL MARKET Potential to be biggest market
+ ALL THE LATEST NEWS & Opinions
INFINITY GAMING
3
MAY 2017
A note from the editor CONTACT US Clever Duck Media Centrix@Keys Keys Park Road Staffordshire WS12 2HA UK Tel: +44(0)1543 478 889 PRODUCTION Clever Duck Media Centrix@Keys Keys Park Road Staffordshire WS12 2HA UK
Women in Gaming & Diversity Awards round the corner
PUBLISHING Infinity Gaming Magazine is operated by © Clever Duck Media Ltd ®
Lana Thompson - Editor
Welcome to the May edition of the Infinity Gaming Magazine covering the global gaming industry Welcome once again readers to the
As always with a leading magazine we
May edition of the Infinity Gaming Mag-
offer some great articles by Teresa Tun-
azine, the global B2B magazine for the
stall, the multi-talented Christina Tha-
gambling industry.
kor-Rankin and Asia Gaming specialist Desmond Lam.
Time again flies and we are already in May, a lovely time of year when all
Not just this but the Infinity Gaming
things new happen and of course it is
Magazine covers all the very latest news
the time when we celebrate the fan-
from around the world to keep you up to
tastic women in the gambling industry
date with all the major developments.
with the Women in Gaming Awards, but this time we have expanded to be more
Enjoy the magazine it will keep you
inclusive with Diversity in gaming, so
busy reading it and also make you think
this year we will reward and celebrate
about the industry we all work in.
the people and companies that truly make our business that diverse.
So, “To Infinity and Beyond!”
As a global industry we have some truly
Regards,
amazing people to recognise and this new section involved with the Women
Lana
in Gaming is going to really become a major celebration, good luck to all the finalists.
INFINITY GAMING
The Editor
Company Reg. No. 687 1018 (Registered in England) V.A.T reg. no 972 6372 91
Sponsorship Opportunities Colin@cleverduckmedia.com Business Partnerships Svetlana@gaming-awards.com Marketing & Advertising claire@cleverduckmedia.com Editorial Content & PR media@cleverduckmedia.com
MAY 2017
Infinity Gaming Magazine Contributing Writers A magazine is only as good as the content inside and with some of the leading specialists within the gaming industry. With specialised articles covering customer service, the gaming law, new prducts, technology and current affairs with the sector the Infinity Gaming Magazine is delighted to showcase our superb line-up of contributing writers.
Christina Thakor-Rankin - Gaming Consultant Christina is Principal Consultant at 1710 Gaming Ltd, a specialist betting and gaming consultancy, delivering a range of services including licensing and compliance (incl. regulation, money laundering and social responsibility), business start-up, training and strategic reengineering, project management, research, business analysis and development, to start-ups and established multi-national operators and providers, gambling regu-
lators, law enforcement and government agencies, media, and specialist interest groups and associations within the sector, in both established and emerging markets across the world.
www.1710gaming.com
Teresa Tunstall – Independent Gaming Consultant After many years of working in casinos in the UK and on USA ships as a croupier and inspector, Teresa turned from ‘poacher to gamekeeper,’ spending 16 years with GamCare, who offer help and support to those who develop problems with their gambling.
Teresa now works independently consulting on all issues relating to Social Responsibility and Problem Gambling.
Working closely with the betting and gaming industry, She developed strong links delivering Social Responsibility and Problem Gambling training around the world, from Antigua to Moscow, and Auditing in the UK.
To contact Teresa regarding consulting please email: Teresatunstall1@gmail.com
Desmond Lam - Professor in integrated resort management University of Macau Desmond Lam is an associate professor in international integrated resort management at the University of Macau. He is a life member of Clare Hall (University of Cambridge) and an academic affairs advisor to the Macau Gaming Management Association. Desmond is the recipient of several research and industry awards including the Cambridge Clare Hall Fellowship and the Emerging Leader trophy at the 2016 Asia Gaming Awards. He is author of the book Chopsticks and Gambling, which examines the little-known world of Chi-
INFINITY GAMING
nese gambling from historical, cultural, psychological and social perspectives.
.com
ALEA.com is an award-winning casino operator founded in 2012 by Alexandre Tomic and Charles Gross, who have over ten years' industry experience ranging from affiliate network owner to casino operator. They are driven by innovation and dedicated to staying on the cutting edge of technology; with this in mind, ALEA’s product, SlotsMillion, is an online casino with over 1,300 slots and many inventive features. This includes the world’s first real money virtual reality casino, which is available to play in both VR and 3D and has received very positive reactions at conferences and from industry and mainstream publications.
WOMEN IN GAMING D FINAL
SAVOY HOTEL LONDO
Affiliate Manager of the Year Deborah Ige – PokerStars Karolina Filip – BGO Laura O´Brien – Mr Geen Magalie Hayvaert – PokerStars Melanie Hainzer – Mansa Gaming
Employee of the Year Christine Lewis – NetEnt Cornelia Malli – IGT Linda Lewis – Aspers Magda Rode – Mr Green Raquel Goncalves – LeoVegas Robyn Games – Derivco Sari Lichtik – Playtech Toni Mills – Play’n GO
B2B Excellence Award Alexia Smilovic – NetEnt Birgit Prants – Playtech Christine Lewis – NetEnt Diana Rotaru – Rise Project Janine Woodford-Dale – Microgaming Poppy Papadakis – Initial Rewards
Excell in Customer Service Alexandra Nixon – Caesars EMEA Daisy Johnson – Playtech Jessica Portelli Melkersson – Videoslots Joy Jiang – Playtech Kirsi Hirvola – Kindred Leah Griffin – Mr Green Melinda Nagy – Derivco Polyana Sebastiean – Playtech
DIVERSITY AWARDS LISTS
ON - 12TH MAY 2017
Best Place To Work Aspers Westfield Stratford City Game Lounge Ltd Little Star Media Microgaming Play’n GO Playtech
Hidden Talent Amanda Gilbert – Caesars EMEA Anna McChesney – Microgaming Lauren Iannarone – Playtech Lorna Attard-Biancardi – Mr Green Sini Rantala – Videoslots Tatjana Vesel – IGT Tracy Kenny – Aspers Wendy Debattista – LeoVegas Yvette Naidoo – Derivco
Diversity Award Aspers Westfield Stratford City Microgaming – (Leila Ashton) Mansion Group Play’n GO Playtech Rewards Affiliates
Industry Achiever Ann Sullivan – Caesars EMEA Anna Jein – Kindred Efrat Nadel – Playtech Malgorzata Cumber – NetEnt Sandra Beaver – IGT Shelly Suter-Hadad – Mansion Shenaly Amin – LeoVegas Value Quraishi – IGT
WOMEN IN GAMING D FINAL
SAVOY HOTEL LONDO
Innovator of the Year Cindy Hovey – IGT Jenny Bobille-Vaucher – NetEnt Maris Bonello – Kindred Melanie Hainzer – Mansa Gaming Nikki Carter – Mansion Sarah McChesney – Fresh8 Gaming Yael Gazit – Playtech
Star of the Future Charlotte Cain – Derivco Erica Larkins – BGO Gloria Cereda – LeoVegas Holly Ashpole – Aspers Kat Cox-Cooper – Microgaming Kelli Pratt – Playtech Michelle Schenk – IGT Nataly Sopacuaperu – Kindred San Van – Caesars EMEA Shondra Deloach-Perea – IGT
Inspiration of the Year Lydia Barbara – Microgaming Marianne Võime – Playtech Maris Bonello – Kindred Reyes Jara – Game Lounge Shenaly Amin – LeoVegas Teresa Leyman – Kindred Trisha Parker – Sun Bets
Team of the Year C,R & Innovation &Training (Playtech) Design Department Videoslots HR Team – Microgaming Malin Angbo, Customer Service Management team(Mr Green) Marketing Communications, led by Faye Morse Mansion Marketing Events & PR Microgaming NetEnt Sales Team (Nadiya Attard & Magdalena Podhorska) Play’n GO Account Management Team
DIVERSITY AWARDS LISTS
ON - 12TH MAY 2017
Leader iGaming Alexe Reichert – Mr Green Dominika Renaux – Kindred Janine Woodford-Dale – Microgaming Leila Ashton – Microgaming Lena Yasir – Play’n GO Lucy Owen – Playtech Shelly Suter-Hadad – Mansion Shenaly Amin – LeoVegas
Industry Pride of the Year
To be announced on the evening
Leader Land Based Bea Stevens – Aspers Darlene Anderson – IGT Jennifer Bowman -IGT Marieanne Carmody Weir – Aspers Rachel Barber – IGT Rose Cook – Rivers Casino Resort Sarah Sculpher – Caesars EMEA
Outstanding Contribution
To be announced on the evening
12
MAY 2017
Gibraltar Living in fear of the ‘Spanish Acquisition’, or Keeping Calm and Carrying On?
By Christina Thakor-Rankin
G
unequivocal statement that, “Gibraltar
Spanish, Gibraltar is an affront to their
iven the Rock’s history and its as-
is not a bargaining chip in these nego-
sense of national identity and their
sociation with the UK, Brexit and the
tiations. Gibraltar belongs to the Gibral-
sense of sovereignty - it’s a bit like hav-
vote to leave was always going to raise
tarians and we want to stay British.”
ing a part of Dover owned by Spain.”
All very dramatic, and thankfully, at this
Geography
difficult and arguably, incendiary questions about the future of Gibraltar.
aside
however,
history
stage - just rhetoric. It is also a huge
weighs in on the side of the British. Be-
The blue touch-paper appeared to have
over-simplification of the situation,
coming part of the Kingdom of Spain
been well and truly lit following the UK’s
and glosses over the fact that Brexit
only in the 15th century, and ceded to
formal notification of the intent to leave
and the question of Gibraltar could
Britain under the terms of the Treaty
the EU, triggering Article 50, and the
potentially open an almighty can of
of Utrecht in 1713, it has technically
subsequent release of the draft Brexit
political, economic and legal worms.
been governed by Britain longer than
negotiation
guidelines
stating
that
it was Spain. A referendum in 1968
any decision affecting Gibraltar would
Gibraltar, being as it is very much
saw the Gibraltarians vote to stay with
need to be agreed with Spain first.
physically attached to mainland Spain
Britain by an overwhelming majority
continues to cause territorial conster-
(12,138 vote to 44), and it has become
“After the United Kingdom leaves the
nation and a situation which is nicely
even more closely aligned with the UK
Union, no agreement between the EU
summed-up by Jack Straw: “For the
since the 1980s when Spain needed
and the United Kingdom may apply to the territory of Gibraltar without the agreement between the Kingdom of Spain and the United Kingdom.” This naturally resulted in reactionary responses from various ‘stakeholders’ ranging from the measured and moderate ‘discussions’ to the less measured and moderate references to ‘female Prime Ministers’ ‘task-forces’, ‘protect… small group of British people’ ‘against Spanish-speaking people’ from the UK, to a raised eye-brow from Spain suggesting someone was losing their ‘cool’, to Gibraltar’s chief minister Fabian Picardo
INFINITY GAMING
MAY 2017
the support of Britain to join the EU.
free movement of goods, common agri-
If this is the case, then political sabre-rat-
cultural and fisheries policies and VAT.
tling aside, and except for a few bumps
This, together with red telephone boxes,
It is this arrangement and the flexibility
along the way, it is in the interests of
fish and chips and currency bearing the
it affords, that has allowed Gibraltar to
everyone to keep life in Gibraltar on as
Queen’s head may not be enough. Gi-
develop into the attractive economic
even a keel as possible. And speaking
braltar occupies a unique position in
hub it is today.
to those who live or work in Gibraltar,
Europe – both legally and economically.
this seems to be the underlying feeling. The process of determining the posi-
Legally, and outside of British legisla-
tion and status of Gibraltar post-Brexit
Those who lived through the time
tion which classes it as a ‘British Over-
is not going to be straight-forward. The
of closed borders and Franco, un-
seas Territory’ (and despite attempts to
fact that it continues to appear of an
derstandably,
remove it in the intervening period) Gi-
official UN list would one hopes afford
about what the future could hold than
braltar technically continues to be on the
it some protection. Further, territorial
those who did not, and whilst many
United Nations list of Non-Self-Govern-
considerations aside, both Britain and
believe there will be more stringent
ing Territories awaiting decolonisation.
Spain’s continued interest in the terri-
checks and longer queues, few be-
tory is in part down to its economic suc-
lieve that the border will actually close.
have
greater
qualms
Economically, whilst it may be a part of
cess which is due to those businesses
the EU because of the UK’s membership,
currently based there. It makes sense
In fact, those more stringent checks
EU law applies to it not as a territory of
then to ensure that whatever happens
have already started with Spain step-
the UK, but as a territory whose external
in the future, both parties take pains to
ping up its border controls with Gibral-
relations fall under the responsibility of
assure those businesses that whatever
tar under the EU’s Schengen Zone rules.
the UK. This means that whilst most EU
happens, Gibraltar is, and will contin-
The UK (and by default Gibraltar) chose
laws apply to Gibraltar, there are some
ue to be a good place to do business.
not to sign-up to the Schengen Agree-
key exemptions such as the rules on the
ment, and is
INFINITY GAMING
13
14
MAY 2017
Living in fear of the ‘Spanish Acquisition’, or Keeping Calm and Carrying On
therefore now on the receiving end of
as buying property on hold until the
‘Companies are happy to stay in Gi-
this.
situation stabilises or there is greater
braltar and you can see this with con-
visibility as to what the future holds.
tinuous expansion. I do not fear for my
This was however a scheduled EU
job whatsoever. Only time will tell.’
move, and not something which was
Those who live in Spain, but cross into
introduced by Spain specifically be-
Gibraltar for work could face issues
‘With regards to Brexit despite the
cause of Brexit, and as one source put
in the future if Spain decides to act
uncertainty I am quite relaxed. Al-
it, ‘The U.K. (With Gibraltar) chose not
against those who fail to declare their
though the decision and the subse-
to join the Schengen Agreement when
status properly. Ironically, the questions
quent rhetoric from politicians cre-
it was introduced and now has chosen
and issues facing those in Gibraltar
ates a level of uncertainty there is
to leave the EU. The politicians and the
seem to be the exact same ones facing
little I or my employer can do until
people who support no freedom of
those EU nationals currently in the UK.
the negotiations are almost finalised
movement should not expect to move
and the actual conditions are known.’
in and out of Spain with no checks’,
It is to be hoped that in both cases,
whilst another confirmed that ‘The bor-
governments are sensitive and mind-
‘All good here…Not a problem about Gib
der has been absolutely fine with no
ful of the fact that the decisions they
(sic) and Brexit…not much to comment
issues. Recently new Schengen rule…
make will have deep and far-reaching
on really’.
people having to use airport style ma-
implications for those on the receiving
chines instead of just getting a nod from
end, and as such will be applied with
the police when flashing your docs.’
a degree of understanding and com-
In short, no-one knows what the fu-
mon sense across both jurisdictions.
ture holds for Gibraltar yet, and whilst
The fluctuation in exchange rate since
there may be concern and uncertainty
Brexit is a far weightier issue than the
Which the exception of the above how-
around what the future might hold, un-
border controls: ‘…it been as low as
ever, the general feeling seems to be one
til the impact of Brexit is fully known
1.10 at sometimes since June. Consid-
of ‘business as usual’, until events dictate
and understood, the prevailing view
ering we were enjoying 1.40 before
otherwise, with those impacted taking
seems to be - Keep Calm and Carry On.
talks of Brexit this was quite a nasty
a pragmatic approach to the situation.
hit to take and disposable income was sliced’. For some this has meant rent rises, or putting longer-term plans such
INFINITY GAMING
MAY 2017
Pennsylvania move closer to online but more trouble ahead
S
upporters of online gambling in the state of Pennsylvania are gearing up for what is hoped to be an exciting first week in May as that is the time that HB271 the bill proposing online gambling may get out of the Senate oversight committee and ready for debate in the Senate prior to a vote to legalise online gambling in the state. However industry observers say that people should calm down as there is still a long way to go, not least discussions over exactly should be in and out of the HB271. There are 12 casinos in Pennsylvania and ten of those twelve support some sort of online gambling bill however is that it allows for slot machines to be placed in airports, cafes and race tracks, this is not acceptable for casino owners who say they would suffer falling revenues with this introduction even with online gambling. Those who support online gambling say that the revenues generated will offset those revenues but casino operators don’t want to lose one thing and just gain another, so negotiations are needed there or the operators could pull the plug
on HB271 before it takes off. Also the House and Senate have differing views on gambling with some saying just legalise online lottery and not casino based games as the lottery is suffering falling revenues for years and needs the boost over casino games that already exist, not to mention that Pennsylvania is an ageing population and customers could and would most likely play lottery instead of online casino games. One thing brings together all lawmakers and that is the need to generate new revenues to block the black hole of some $3 billion in taxes for the next budget. New license fees and registration could initially generate some $800 million with what supporters say another $400 million a year for state taxes. Those figures have been disputed and are difficult to prove off the back of just three states that have legalised online gambling so far, those being New Jersey, Nevada and Delaware, most of the numbers are extrapolated from New Jersey that is doing the best in terms of revenues out of the three.
INFINITY GAMING
17
18
MAY 2017
The Forgotten One’s – Affected Others By Teresa Tunstall
T
he wife of a problem gambler painfully describing the hurt she felt over her husband’s deceit and continual lies about his gambling… A Sunday lunchtime caller crying so intensely he was difficult to understand. I urged him to drink some water, after which he was able to stutter that his wife could not tolerate his gambling anymore and had gone back to her parents with a parting retort that “it is me or the bookies”… The reality is that it can come as an enormous shock to discover that the person you love, protect and live with has cheated, not with another person but by gambling. There are many reasons why people turn to gambling as an “escape valve”, as they do with alcohol, drugs, compulsive spending, over-eating etc. However, with gambling there are no visual signs of a problem but the impact and consequences can be much worse over what can be a much shorter period
INFINITY GAMING
of time. Addiction in general is a mental health disorder which unless it’s recognised and addressed – particularly for gamblers – can spiral into a profound vortex of misery for themselves, family and friends. Those who loved and believed; even borrowing
ting professional help and advice the future won’t alter and change becomes non-existent. The problem gambler will hate a family “pow wow” where sharing knowledge, truth and providing support will expose his frailty and weakness. However, this ‘fear’ may just turn out to be a blessing in disguise, a turning point in everyone’s life and a window of opportunity for the entire family. On a practical level one way of help may be by suggesting that the gambler avoids betting shops, amusement centres and casinos by altering his route to and from his employment base. Of course that becomes a problem for those who work from home or in isolation as Online gambling is easily accessible.
copious amount of money only to eventually discover that they became innocent victims. It is important that at this point self-salvation becomes pre-eminent. Family and friends need not be at the mercy of the gambler, but it does take courage to address the situation and regain control. Counselling is the key. Without get-
Another support route could be that the strongest member of the family (The Adult) take control of the family finances and provide an exact amount of daily money for the gambler to survive. Restricting the use of credit and bank cards would also be sensible.
MAY 2017
It goes without saying that if the problem gambler has enough willpower and backbone he can apply self-help and exclude him-self from anything to do with gambling. He must make a promise to change his ways and adhere to it. As mentioned previously, Counselling is by far the best way forward. Unfortunately many gamblers choose not to; they are reluctant to do so because of the shame attached. There is no doubt that many of those that do participate and confront their addiction find it a life-changing experience. Self-exclusion for those that can find the strength leads to the same enlightenment. By the way, counselling should also be adopted by everyone who is affected by the evil side of gambling as it provides a support fulcrum. As an illustration, one of my saddest calls was from a 73 year old mother whose 46 year old son was gambling away not only his but her money too. Furthermore he aggressively was forcing her to downscale from her beautiful house to a small flat so that
he could have more money to gamble with! In the middle of our discussion I told her that I wanted to help and support her, but not her son for the time-being. At this point she burst into uncontrollable tears and said this was the first time she had ever had help and felt so alone. If I could I would have cuddled her through the phone line! Counselling for her was something completely new but she was desperate to try anything to understand and address the pressure she was under. What a courageous woman she was. I feel it imperative to comment on how apt and brave it is of Prince Harry to reveal that he has been receiving counselling. He sets a wonderful example…if only those many gamblers could follow his path and say “if Harry can do it then I can too”. Addiction, as we know, covers a wide spectrum of problems, not only gambling. There are various schools of thought that say it should be treated as a whole entity in order to avoid the addict from switching one addiction for another.
a training class with a counsellor who decided to “open up” to the group and declare that he, himself, had been a problem gambler in the past. Unsurprisingly, the group wanted to know more but I felt it expedient that we took a break in proceedings. I personally had no knowledge of his past and asked him how he had managed to overcome his problem. He turned ashen and initially said he couldn’t answer, but eventually he did and to my astonishment admitted that gambling didn’t give him a big enough “high” and instead he started taking drugs! It reinforces the need to treat addiction as a whole as I mentioned earlier. Thus, in conclusion, when an addict calls for help there is an admittance that a problem exists. There is support but the addict has to take the first step himself and really needs to be committed. Sadly experience shows the brutal truth if that commitment isn’t wholehearted then cracks appear and for family and friends the downward spiral reappears.
By way of an example, I once shared
INFINITY GAMING
19
YGGDRASIL INNOVATOR OF THE YEAR 2017
“We love to push the boundaries and innovation is a part of our DNA.” FREDRIK ELMQVIST, CEO YGGDRASIL GAMING
SOCIAL SHARING TOOL
TRULY CROSS PLATFORM
IN-GAME PROMOTIONAL TOOLS
IN-GAME MISSIONS
MAY 2017
21
Russia Beefs Up Measures to Block Online Gambling
R
ussia introduced a legislation this week that would compel payment processors and banks to block all monetary transactions with international online gambling websites. Russia’s Ministry of Finance has designed the new bill that intends to block the flow of around $3 billion that takes place between international gambling operators and Russian gamblers every year. The State Duma Committee on Budget and Taxes recommended that legislators accept the draft version of the federal law 108659-7, which was read in the Duma on April 14. The bill was proposed by the Ministry in 2015, but it met with tough resistance from other government ministries. However, Russia has now beefed up its measures to curb unauthorized gambling activities between international gambling operators and Russian gamblers.
disregard the ban on financial transfers between gambling sites and punters. Online bookmakers licensed by Russia are required to direct all transfers through centralized hubs called TSUPIS. Currently, two rival systems operate in Russia: one aided by the First Self-Regulatory Organization of Russian Bookmakers (also known as First SRO), and the other responsible for payments for the members of the Bookmakers SRO group.
What does Russia intend to do with the bill?
Only a few Russian bookmakers have launched online gambling sites till date. However, Bingo Boom became a part of the list earlier in April and Bet City shows similar intentions of doing the same any day. In order to adhere to the new provisions, Fonbet introduced its official gambling site under the Russian domain. It transferred operations to Fonbet. ru after gaining control of the domain after a long legal battle with an international company.
The bill is a part of Russia’s continual measures to push Russian punters to gamble with online sports betting sites licensed by the Russian government. The bill includes raising fines for ISPs who don’t block online gambling sites that are weakened by Roskomnadzor, the state communications watchdog in Russia. The new bill intends to create a blacklist of financial agents and payment processors who continue to
Although the bill aims at online gambling websites that offer downloads of copyrighted materials, it wouldn’t exclude gambling domains. Nearly 12,561 gambling domains were blocked by Roskomnadzor in 2016 after it blocked sites that featured extremist content. Further, 2810 gambling domains were blocked by the regulator in January 2017, followed by 646 more in the first week of February.
INFINITY GAMING
MAY 2017
23
How is the Powerful Online Gambling Industry Affecting Philippines’ Office Market?
T
he online gambling industry has expanded by leaps and bounds in the recent times. Different countries have adopted different measures to regulate their online gambling industry. While online gambling in European countries such as Italy, France, and Spain ranks high, Asia’s online gambling industry is also not lagging behind. But there’s a connection that we are probably ignoring, the ever-increasing online gambling industry’s effect on the Asian office market. This is particularly seen in the Philippines, where online gambling is becoming a prominent phenomenon.
the online gambling industry would take up. Leechu also said that the online gambling industry’s demand for office spaces grew “overnight”, and it could reach the mark of BPO companies in the near future. Over the past six months, the online gambling industry in the Philippines has taken up nearly 83,960 square meters of office space, primarily in Alabang, Bay Area, and Bonifacio Global City. Besides office space, the online gambling industry is also likely to take up spaces in residential units across the Metro Manila area. The future of Philippines’ office market
Online gambling and office market According to the analysts from LeeChiu Property Consultants (LPC), the robust online gambling industry in the Philippines is taking up more office spaces in the country this year. As per the Manila Standard’s report, the Philippines’ online gambling industry is the second largest demand generator for office space in the country. The industry is a little behind the business process outsourcing companies that create the maximum demand for office spaces in the Philippines. David Leechu, chief executive officer of LPC, estimates that nearly 400,000 to 500,000 square meters of office space would be consumed by the online gambling industry this year. However, the BPO sector is projected to take up about 800,000 square meters of office space, nearly double of what
David Leechu said that this trend in the Philippine office market would continue for the next couple of years. The Philippine Amusement and Gaming Corporation (PAGCOR) run by the state intends to give more licenses to online gambling companies by approving thirty-five applications for Philippine Offshore Gaming Operations (POGO) licenses. Andrea Domingo, the chair of PAGCOR, underscored the significance of POGO licenses in increasing PAGCOR’s revenue from 60 billion to 65 billion Philippine pesos in 2017. She said that there will be a second group of applicants who will be granted POGO licenses for operating online gambling activities in the country.
INFINITY GAMING
24
MAY 2017
Guanxi in the Chinese VIP Market By Desmond Lam
Desmond Lam is an associate professor in international integrated resort management at the University of Macau. He is a life member of Clare Hall (University of Cambridge) and an academic affairs advisor to the Macau Gaming Management Association. Desmond is the recipient of several research and industry awards including the Cambridge Clare Hall Fellowship and the Emerging Leader trophy at the 2016 Asia Gaming Awards. H e is author of the book Chopsticks and Gambling, which examines the little-known world of Chinese gambling from historical, cultural, psychological and social perspectives.
G
uanxi is such an essential part of the job of a junket representative and VIP room operator. A typical junket representative is profit-oriented, while engaging in guanxi to entice Chinese mainland players to come to Macau. The need to service Chinese VIP players in order to get them to play and/or roll over their play means that a complete set of comps is usually prepared. Depending on the type of clients that they have, junket representatives are prepared to pay for everything from transportation, accommodation, meals, to after-gaming entertainment. Good and genuine guanxi with Chinese VIP players helps keep them loyal in the long run and allows the representatives (and its VIP room operator) to survive in a highly competitive market. Hence, the evolution of Macau’s VIP-room contractual system into its current form reflects the mechanism of guanxi. In fact, it is the pivoting mechanism that ensures its survival to date and likely to remain
INFINITY GAMING
so in the foreseeable future. Culturally, Chinese are shaped largely by years of Confucianism thoughts, and, to a certain extent, Daoism and Buddhism. It is Confucian’s philosophy that provides the basic foundation for the development of guanxi. Guanxi is often translated into “personal network”, “connections” or even “special relationship”. In a typical Chinese context, guanxi goes much
further than the development of connections. It is created and maintained many aspects of a Chinese’s life in modern China. In a business context, guanxi refers to a Chinese system of doing business on the basis of personal relationship. It is increasingly being recognized as a critical element when doing business in China. The unique development of the Macau’s VIP-room contractual system to its present form is partly due to the
MAY 2017
strong emphasis of guanxi in Chinese society. Guanxi remains an important element in initiating and maintaining a vibrant VIP gaming market from licensees, channel intermediaries, to Chinese VIP players. So, this is important to examine what guanxi means and how it works. Guanxi’s origins come from Chinese culture, but Chinese culture is a mixture of a number of different philosophies. Among all, Confucius and Sun Tzu have the greatest influence on the development of guanxi. The teachings of Confucius comprised four key principles: the hierarchical relationship among people, the family as a basic unit, Jen and the emphasis on education. All of these principles have direct or indirect influences on Chinese guanxi; in particular, the concept of hierarchical relationship. In a relationship-centered world, social relations have great significant to a person’s daily life. As part of the emphasis on differentiated relationships, attention to others is highly selective. In the case of China, Chinese have a strong tendency to divide people into
categories and treat them differently. Outsiders will not be treated as kindly as insiders. Thus, a person’s relative position within his/her social circle determines the level of guanxi that he/she receives. Sun Tzu’s art of war has never been surpassed in comprehensiveness and depth of understanding in the Chinese world. One of Sun Tzu’s philosophies focuses on the defensive concept of how insiders should treat their outsiders. The concept of insiders versus outsiders is important within guanxi. The art of war has such a profound impact that the Chinese have formed the habit of looking at their outsiders defensively. Being treated defensively, outsiders hardly trust the insiders and vice versa. Sun Tzu postulated that it is vital to keep good internal communications among insiders, which has become a key variable in the concept of guanxi. Furthermore, Sun Tzu regarded the disrupting the opponent’s internal communication as an important strategy in the battlefield. So, guanxi destruction is very much a viable competitive business
strategy in modern China. Casino executives (including Chinese executives in Hong Kong and Macau) have much to learn from their Mainland Chinese counterparts in initiating and maintaining a sustainable guanxi network. Studies have shown that Mainland Chinese managers use insiders to build and expand their guanxi network in China. To maintain these relationship, they stresses on mutually beneficial elements resulting from these relationships. The results are inward looking but stronger and longer-lasting guanxi network. Expatriate managers who go to Mainland China to work, however, use business networking and benefits to build guanxi. Because they lack the insider network, they instead rely on business networking and benefits (i.e. financial). To maintain these networks, expatriates use favors and hope for reciprocity. The results are loose guanxi relationships that are built on a weak foundation of favors rather than emotional bonding on personal level.
INFINITY GAMING
25
MAY 2017
Guanxi in the Chinese VIP Market
Good guanxi relationship should be built on trust and bonding developed over time. The important aspect of guanxi is to identify and separate an outsider from an insider. Insiders are those people who one trusts. Insiders need more respect and be given full information. Outsiders are people who deserve less trust and information. In a way, guanxi provides the essential rules to protect relationships and critical information. Hence, good guanxi is difficult to obtain and would take a long time to develop. Not every junket representatives or operators have the skills to develop strong insider-based guanxi. Similarly, not every operator or promoter have the skills to cultivate loyal individuals to represent them in a junket operation. But once it happens (i.e. through good guanxi), it is seen to last for a long time. In many ways, good guanxi ensures stability and avoid chaos in the VIP gaming market. Thus, the ability to initiate and sustain guanxi networks on all levels within this market is critical for any success. For casino executives working in the Chinese market, it is important to
INFINITY GAMING
remember the following: (1) Guanxi is more than connections. It is not superficial. It is used as a mechanism to achieve long term personal and/or business objectives. (2) Guanxi is more than relationship. It has a more profound meaning than the word “relationship”. It involves faithfulness, trust, bonding, and empathy. To be effective and stable, it requires some elements of emotional bonding on personal level. Bonding that will stand the test of time. (3) Guanxi that is built with weak foundation (i.e. through financial favors and benefits rather than bonding and trust) can fail. It may easily fall apart no matter how well-connected an executive is within the network. (4) Guanxi is more than social network; it is transferable from one to another. If A has good guanxi with insider B, and insider B has good guanxi with insider C, then insider C will be more willing to let A into his/ her guanxi network.
(5) Guanxi is tie to reciprocity. Genuine favors to build bonding are remembered, appreciated and returned. Use favors to create genuine bonding and not expect any return of favors. Chinese like to interact with others who have genuine feeling and interest in forming a long-term relationship; friends who has feelings and a sense of righteousness. (6) Build guanxi by joining the insiders and not just through “business networking”. Start with small steps. Pick an insider and start with him/her. He or she has the cultural knowledge and understanding of the Mainland Chinese people, and can help you open the door to other deep-rooted guanxi networks in China. (7) Guanxi takes time to build. Take your time and be patient. Lay a strong foundation for your VIP gaming business, which is supported by good, long-lasting and genuine guanxi.
MAY 2017
INFINITY GAMING
INFINITY GAMING
27
The Ritz Club 150 Piccadilly, London W1J 9BS +44 (0)20 7499 1818 | www.theritzclub.com | @TheRitzClub
MAY 2017
29
Pennsylvania lottery to run online gambling in the state?
T
he Pennsylvania Senate President Jos Scarnati has thrown the online gambling debate in the state up in the air by saying that the lottery should run online gambling in Pennsylvania. If this would be the case none of the 12 casinos based in the state would have any involvement with online gambling and all functions along with profits would be a monopoly run by the lottery itself. “It appears that the PA Lottery could administer iGaming more efficiently than the gaming industry & still make substantial profits,� Said the Senate President in a tweet on his official twitter page. None of the other three legalised states offer such a model, only Delaware has the lottery involved in online gambling but the model is not a good reflection as Delaware is relatively small in business size and in March only generated $150,000 in March. Of the other two states New Jersey and
Nevada both are operated by land based casino operators. Many supporters of casinos running online gambling point to the model operated in New Jersey where in March this year revenues from online gambling stood at $21.7 million a rise of 40% from the same period last year. Also the argument that the state would lose all revenues from licensing of online gambling estimated by some at tens of millions of dollars, finally many online poker news site say that Pennsylvania with the aid of casino operators could generate revenues of $300 million annually those figures have been disputed as currently bricks and mortar casino poker only generates $60 million a year in revenues. As previously reported Pennsylvania wants online gambling but there is a long way to go before a consensus of opinion by lawmakers reaches a conclusion.
INFINITY GAMING
general manager and CEO
GAMING NEWS
MAY 2017
Can Video Games Push Millennials to Gamble?
P
erhaps millennials today have really high standards for entertainment. The slot machine with the “Downton Abbey” theme proved charming. With an over-sized but comfy chair, these slot machines appealed to single players. It’s cozy and safe built gave a good experience to players. But millennials feel a flaw in these slot machines. The millennial generation of today depends on adrenaline-rushing video games, social experiences, and mobile downloads, which are now widely replacing solitary slot machines. This shift in preference from slot machines to video games is driving the casino industry like numerous others. A fusion of video game technology and gambling The concoction of the Gamblit Model G machine changed the landscape for video gamers to a large extent. The machine is multi-player, no-seat, fast-paced, and fuses the widely accepted video game technology with gambling. The launch of Gamblit Model G machines at Harrah’s Resort showed innovation and the future casino experience in a new light. The need for socialization of the present-day generation keeps them glued to video games. They look for something innovative, interactive, and demanding in terms of gameplay. So a machine that fuses the fun of video games with the anticipation of gambling is something that might push
millennials towards gambling. Gaming countries around the world are facing glitches in the way they provide the gaming experience to youngsters. But these glitches are not technical, instead, they are psychological pitfalls that they have to address. Presentday youngsters are no longer the ones who sit before a slot machine and wait until three cherries appear on the screen. They are tech-savvy experts who desire dynamism and fun in their experience. As machines like the Gamblit Model G machine is entering the casino industry, millennials are experiencing a notable change in the way they play games. By fusing aspects of gambling and video games, these machines have appealed to a large mass of millennials across the country. As these machines are changing the gambling scenario, slot machines are becoming more old-school and boring for millennials. What stays common between traditional slot machines and new-age gambling machines in casinos is the “hook”. Both machines keep a player hooked to the game. But the difference is certainly seen in the experience. While slot machines provide a solitary experience, casinos bring a group of gamblers together, making the game more interactive and exciting. In the light of such changes in preferences, millennials are likely to become a huge customer base for casinos when they have enough money in the future.
INFINITY GAMING
31
GAMING NEWS
MAY 2017
Finland Prefers State-Run Gambling
S
everal international gambling firms are getting attracted to the Nordic nations and also to its regional players. Finland is popular as one of the most thriving gambling markets in Europe. But as opposed to numerous other European jurisdictions, this nation has resolved to hold on to its proprietary regulatory system. Also, it is unlikely that this scenario will undergo any change in the near future. Yle, Finnish media outlet, recently funded a report that was compiled by Taloustutkimus, a market research company. The results from the report revealed that 66 percent of all surveyed Finnish people prefer the proprietary regime and were not in favor of it being changed. According to Yle, the surveyed group of people comprised primarily of the older population of the country. Alternatively, the younger respondents in the group seemed to be more accepting of a new licensing system that would enable global gambling firms to function in a supervised environment. To date, regulated gambling activities in Finland have been managed by 3 different state-run organizations- Veikkaus Oy (betting and lottery), Fintoto Oy (pari-mutuel betting) and RAY (casino offering). In the earlier part of 2017, the
three entities were merged to form one state-run monopoly called ‘Veikkaus’. In the 2010s, the European Commission had asked Finland to execute certain alterations in the gambling regulatory system as this would ensure that they are in compliance with the European Union laws. The country decided to make changes to the monopoly system rather than removing it completely. EU officials later approved these changes as they did not seem to violate the European trade agreement with regards to free transfer of commodities with the EU borders. Unlike Sweden, Finland was saved from receiving a hit on its wrist. Sweden was asked to do a complete review of the gambling industry of the state and come up with regulatory changes in order to comply with the EU requirements. Yle reported that the citizens of Finland wager over â‚Ź10 billion each year on various gambling commodities, both online and in physical casinos. H2 Gambling Capital presented a gambling chart in which Finnish players were ranked as the most active gamblers. As per the chart, the gamblers in Finland spent approximately $2.2 billion in the industry in 2016. The local players of Finland were mostly attracted to gambling options such as online gambling and gaming machines.
INFINITY GAMING
33
34
MAY 2017
INFINITY GAMING
GAMING NEWS
MAY 2017
UK government scrap free bets tax until 2018
O
nline gambling operators in the UK offering free to play bets and spins to customers will not have to pay the tax on free to play bets after the UK government cancelled the introduction of the new bill that was supposed to come into force in August this year. The UK government said that it was cancelling the bill as with a new general election looming and parliament being dissolved on May 3rd it would not have the time to give full scrutiny to the bill. Back in December 2016 Her Majesty’s Revenue and Customs (HMRC) said that all free bets and discounted bets offered by online gambling operators would be liable for tax that is estimated would incur a £5 million to £10 million hit to operators annually. However observers say that should the conservative government be re-elected in June following the general
election it is almost certain to re-introduce the tax scheme most likely in 2018 as there would not be enough time in this year to do so. Online gambling operators can look forward to one last year of no tax on free bets this year but expect to start paying out to the government in 2018.
LVS announce best results since 2008 Casino integrated resort operator Las Vegas Sands announced their first quarter results by saying it is the best set of results since the recession hit in 2008. The operator announced that revenues were up 14.3% to $3.1 billion compared to $2.72 billion in the same period in 2016, profits were also on the rise with a huge 41.3% gain to $578 million compared to $409 million last year.
ness.” The boss of Las Vegas Sands also said that his company were looking at more expansion with Korea, Vietnam and other regions possibly even South America. No mention in the report of Japan where Las Vegas Sands are one of the favourites to gain a casino resort license, but with all the positive news for the company that will be saved for another day.
Chairman and CEO Sheldon Adelson said, “Our Las Vegas operation delivered its best quarter since the first quarter of 2008,” Adelson said, a noteworthy comparison because 2008 is considered the onset of the Great Recession which hit Las Vegas and its tourist industry particularly hard. Adelson also mentioned the results in Macau by saying, “Macau is now growing again for three consecutive quarters,” he said. “Our strategy was to create a critical mass of interconnected resorts. And we now have almost 13,000 hotel rooms in four interconnected resorts. We have steadfast confidence in Macau and our Macau busi-
INFINITY GAMING
35
Behind every great character @Microgaming are hundreds more operating in their element.
See you at ICE.
N5-220
microgaming.co.uk
Wearables. Mobile. Online. Land-based.
ARTICLE
MAY 2017
Which South American Countries Offer Gambling Companies the Best Growth?
S
outh America had some amazing Casinos where you can go for a good gamble. South America had both extremes- on one side there is Argentina with the most number of Casinos and the largest casino on the continent, and on the other is Brazil, where there is not a single casino available. Brazil has struggled with the issue of legalising gambling for a very long time now and has still not eased its position on building Casinos. Argentina Argentina, undoubtedly, leads in gambling in the continent with more than 80 Casinos and more than 12,000 slot machines. While most of these are centered around the capital city, Buenos Aires, the rest of the nation too, has a grid spring of Casinos here and there. The country has the largest casino on the continent, the Casino dear Tigre in the Tigre area. Argentinians have a very open mind towards gambling. The country allowed almost all kinds of gambling, including online gambling. As a result, Casinos are booming with business thanks especially to the visitors from other places where gambling is not easy. Argentina’s gambling culture is so deeply entrenched in the lives of the people that there are rumours the government actually wanted to nationalize
gambling. These rumours began back in 2012, suggesting that the president, Christina Fernandez de Kirchner, was planning on nationalizing gambling in a bid to win more popularity with the public. That the president should have thought of doing so is very suggestive of how much importance Argentinians place on gambling. Colombia Colombia is another South American country that is very open to gambling. In fact, what with the fast-increasing number of Casinos popping up everywhere, Colombia is better known to be one is the biggest countries to host Casinos in south America. Gambling is completely legal, and as a popular tourist destination, the country has a lot of potential for gambling. The government of Colombia is giving so much importance to gambling that they have even created a separate governing body, COLJUEGOS, to keep an eyebrow on all the country’s gambling activities. This is important because there have been instances where players have been cheated or subjected to other unethical practices. COLJUEGOS had made gambling in Colombia perfectly safe and secure so that players can gamble just as confidently and safely as people would play any other games.
INFINITY GAMING
37
ARTICLE
MAY 2017
Which South American Countries Offer Gambling Companies the Best Growth? Continued
C
hile Gambling is just as popular and openly accepted in Chile as in Argentina and Columbia. The Gambling industry grew a lot ever since 1990, when the dictator, General Pinochet, who controlled Chile, was thrown out of power. Today Chile has almost all kinds of gambling and has completely legalized Casinos. Internet gambling is also very popular in Chile. People in Chile have a number of online casinos to gamble in. Football gambling is over of to most popular forms of gamble that has gained a lot of popularity of late. As a country that really loves football, Chileans are very commonly involved in gambling with football. As for casinos, Chile had close to 17 casinos on land- all of them licensed and legal. Because of the country’s ready policies on gambling, there is no reason why casino-owners would run illegal businesses. The Vina del Mar is the largest casino in Chile. Casinos in Chile got a sudden push in 2005, when a government ordinance granted permission for the construction of 16 massive casino resorts. International casino giants came forward to grab the opportunity and started huge Casinos in the country. The legal structure
and infrastructure of the country allow for the construction of really huge Casinos, which is why Chile is known for Casinos that are usually large. Other countries that are casino-friendly are Peru, where the growth may not have been as massive as the above three places, but is slowly expanding nevertheless. Peru has been increasingly curbing illegal gambling while creating opportunities for Casinos. Paraguay too is busy creating a conducive environment for the growth of the gambling industry. Other South American nations like Ecuador and Uruguay are becoming more and more hostile towards gambling and Casinos. Brazil has always had a ban on gambling, although the issue has been discussed for a very long time now. Resorts suggest that Brazil can be one of the continent’s hottest gambling destinations if it does open is doors to the gambling industry. Brazil’s tourist attractions, size and economy make it perfect to open Casinos. For now it doesn’t look like the nation’s legislators have any intention of buying from their hardlined decision on allowing gambling in the country, but if things do work out, it can prove be one of the most lucrative places for gambling because of the untapped market.
INFINITY GAMING
39
GAMING NEWS
MAY 2017
$4 billion casino resort finally opens
I
t was supposed to open two and a half years ago but after falling into debt and going into chapter 11 bankruptcy in June 2015 with debts of billions of dollars the Baha Mar integrated casino resort has finally opened. Costing $4.2 billion to build the resort now owned by Hong Kong-based Chow Tai Fook Enterprises Limited which bought it out of bankruptcy for $3.5 billion boasts to be the largest casino resort in the Caribbean with 100,000 sq feet of gaming space, 2,300 hotel rooms, 200,000 sq feet of convention space, an 18 hole championship golf course and 30 luxury villas. The Bahamas Prime Minister Perry Christie opened the resort saying, “For many Bahamians, this is more than a dream come true. It is the unfolding of a bold vision which I led my Government in undertaking with private sector
partners a decade ago.” Baha Mar casino has over 1,000 slot machines, 126 gaming tables, a high end VIP gaming section, sports betting area and mobile gaming access for customers.
Groupe Barrière to open casino in Ivory Coast Groupe Barrière the French casino operator is to open a casino in Ivory Coast on the 1st May, named the Golden Elephant it will be based in Abidjan at the Sofitel Hotel Ivoire announced the casino operator. Ivory Coast has over recent years suffered several civil wars and only as recently as February there was talk of another civil war happening. However Groupe Barrière believe the time and current situation is right to open the new casino venture where many French nationals work and operate businesses in the former French colony. The French casino operator has signed a ten year deal to operate the casino which will have over 80 slot machines and an un-disclosed amount of table games, creating 85 jobs in the casino.
INFINITY GAMING
41
GAMING NEWS
MAY 2017
William Hill’s Media Relations Director made redundant Sharpe 67 years old started working for William Hill in 1972 but although he said he would never leave the bookmaker he was informed that he was being considered for redundancy and decided to take the option. In a recent interview Sharpe said, “In the 45 years and one month I’ve worked for this company I’ve never asked to leave”. “I’d have liked to have seen the William Hill Sportsbook of the Year through to the 30th edition in November next year, which would coincide with my 68th birthday and it was in the back of my mind as an ideal time to quit. “Then I was told I was at risk of redundancy and we went through a process. I’ve been offered the opportunity to remain associated with the William Hill Sportsbook of the Year, which I have accepted.”
W
illiam Hill’s legendary Media Relations Director Graham Sharpe who introduced the betting on a white Christmas and also the number one single for Christmas is leaving the company after 45 years of service.
William Hills comms director Ciaran O’Brien said Sharpe’s 45-year career was a “remarkable testament to his talent and stamina”.
Japanese government wants tourism focus on casino resorts The Japanese government have made it clear to all the casino operators hoping for a license to run a casino resort in Japan that tourism and facilities related to that must be a part of any resort plans. Integrated resorts “will greatly benefit tourism, regional promotion and job creation” while helping make Japan an international travel destination, Chief Cabinet Secretary Yoshihide Suga said to reporters recently.
including conference facilities and other leisure activities is a must. Japan is looking at Singapore style operations rather than Las Vegas where in Singapore gambling is just a part of a wider range of tourist facilities rather than gambling being the main focus. Last year Singapore attracted over 65 million visitors and created over 20,000 jobs in the casino resorts there and that is what Japan is aiming for.
Full-on tourist facilities have to be part of any plans submitted once the process of selecting any operator
INFINITY GAMING
43
Ready for a new hand? Recruiting now for PokerStars, BetStars, PokerStars Casino and Full Tilt Rational Group brands have more than 100 million cumulative registered customers globally and collectively form the largest poker business in the world. We rely on our 1,600+ employees in offices across the globe to provide an exceptional experience to all of our clients. In return, we offer industry leading benefits and wide opportunities for personal and professional growth. Is it time you dealt yourself a new hand? www.rationalgroup.com/about-us/careers
/ WorkAtPokerStars
@PokerStarsJobs
/company/PokerStars
Rational Group is part of Amaya Inc., which is listed on the Toronto and New York stock exchanges.
ARTICLE
MAY 2017
Ukraine to Re-legalize Gambling by 2018
P
rime Minister of Ukraine Volodymyr Groysman vowed to lift a six-year old ban on gambling after he received a bill from the Ministry of Finance `to legalize and regulate gambling activities across the country. Various reports conclude that the new bill embraces land-based casinos, sports betting and online casinos across Ukraine. Ukrainian companies with an initial capital investment of $2.2 million (€2 million) excluding borrowings can apply for a gambling license in the country. The casino license for a year would cost in the rage of €300,000 and €1 million. However, an online casino license would cost around €1.5 million. Only one single lottery operator will be allowed in the country. The casino license would be issues through a tender process, which is likely to impose restrictions on bookmakers in terms of location of their offices. However, the new bill will permit them to offer their services online. Why Ukraine criminalized gambling? Gambling activities were banned in Ukraine in 2009 after a casino fire left 9 dead. The law on “Prohibition of Gambling Business in Ukraine” was passed by the Ukrainian parliament on May 15, 2009, and it came into force on June 25, 2009
of economic activities because it’s a game of chance. The law criminalized both gambling and gambling business organizations, and imposed hefty fines on organizers of such activities. The Gambling Ban Law also applied to internet casinos, which were proliferating across the country. The Gambling Ban Law created a provision called “gaming zones”. As such, all gambling activities except state cash lotteries should move to the gaming zones, which include the following: Hotels with 4 star ratings or more and a capacity of 1000 rooms Non-residential premises, entertainment and cultural complexes, ships registered in Ukraine that can accommodate a gambling hall of 500 square meters or more. Ukraine banned gambling activities in the country to limit the possibilities of youngsters and people getting dragged into games of chance. Moreover, the country aimed at getting profits from the EURO 12 that was held in Ukraine by attracting more financially solvent tourists.Six years after the ban, the country is re-legalizing gambling activities. Several media reports predict that decriminalizing gambling would generate annual revenues close to $ 1.5 billion. Moreover Ukrainian Finance Minister Aleksandr Danilyuk said that the government has missed approximately $370 million in taxes over the last two years as a result of the ban.
The Cabinet of Ministers excluded gambling from the list
INFINITY GAMING
45
ARTICLE
MAY 2017
Goans To Be Banned From Entering State Casinos Under New Government Policy
M
anohar Parrikar, the new chief minister of the Indian state of Goa, announced that the government was planning to issue an absolute ban on local Goan residents from gambling at state Casinos. The chief minister is of the opinion that gambling isn’t good and if possible, it should be completely banned in the state. This was a major part of his party’s campaign agenda. He further added that it was human nature to indulge in gambling and therefore, it might not be possible to eliminate it completely. However, the government is very clear about wishing to be seen as encouraging the indstry. Parrikar is a leader of the ruling Bharatiya Janata Party (BJP) and former defense minister informed that the government was looking at relocating foreign casino vessels currently operational in the Mandovi River. This rather unwelcome news came after the chief minister’s pledge to implement the long-due ban on late-night dance parties and loud music in the state post 10 pm. On Thursday, Parrikar said that the government has imposed a legislative ban on hosting loud partis post 10 pm in the night. He added that the state officials will ensure that the ban is upheld.
It is the apparent ‘cultural degeneration in Goa’ that has triggered the government to come up with such bans and anti-casino policies. At present, there are 6 casino vessels in Goa and several onshore casinos operating in popular five-star hotels and resorts. These casinos are reported to contribute nearly Rs.2 Billion (around $30.3 million) annually to the revenue of the state. This is not accounting for all the addtional. Manohar Parrikar made it clear that the casinos will not be closed down immediately, since companies have made investments in them and he did not wish to spook the gaming industry or the local state economy in general. The government of Goa had released draft gaming guidelines in February and these were sent to the state advocate general to get a legal opinion. These rules banned Goans from entering casinos, except if they were employed to work there. These rules are yet to get notified. In his earlier tenure as CM, Parrikar had permitted the famous Deltin Group to open the biggest casino in the state. The decision came after the BJP national executive meetup (2013) in Goa.
INFINITY GAMING
47
GAMING NEWS
MAY 2017
Brazil Might Become the Biggest Regulated Gambling Territory
L
atin America has been in the limelight recently for attracting numerous gamblers from around the world. Gambling is undoubtedly a profitable industry in Latin America and this is making a lot of nations think about adopting gambling-friendly regulations as it would help open the market to global operators and developers. Besides Mexico, Brazil has emerged as yet another nation from Latin America where legislators are quickly realizing the relevance and importance of a regulated gambling setup. As of now, the laws in Brazil do not consider gambling to be ‘legal. But for almost one-fourth of a century now, lawmakers in the country have been making efforts to legalize some forms of gambling. They also wish to establish gambling law as well as a regulatory framework as it would help eliminate the ban entirely. The two chambers of Brazil’s bicameral legislative association (the National Congress) have been holding discussions regarding legislative proposals which would help legalize various types of gambling such as sports betting and online betting within the borders of the country. Numerous publications have named Brazil the “sleeping giant” with regards to its tremendous potential of becoming one of the biggest regulated markets in the world.
The country is already big on gambling. The Brazilian Legal Gaming Institute reports that nearly R$20 billion gets generated each year from all kinds of illegal gambling. An altered version of the proposed gambling bill, PLS 186/2014, was discussed in 2016 and even got approval from the Special Committee for National Development. It was predicted that the legislative document might soon make it to the official Senate floor and get one final vote. Unfortunately, the predicted final vote failed to occur and this means that the gambling legalization debate might be renewed sometime this year. All the chambers of the National Congress in Brazil need to pass the PLS 186/2014 for its various provisions to be effective under the law. Upon being passed, the bill will enable the creation of a proper regulatory framework that overlooks the operation, taxation, and regulation of gambling in Brazil. Further, this newly developed regulatory framework would also provide certain measures that prevent and combat corruption and money laundering. The World Bank reported the population of Brazil to be 207.8 million in 2015. The country could become the biggest regulated gambling field in the world if the proposed bill is passed.
INFINITY GAMING
49