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Solutions Showcase JAPAN • Key Japan IR attractions • Spotlight on Japan may 2017 IN FOCUS #131 | 30 MOP Macau’s entertainment dilemma The Philippines fights back

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COVER STORY Contents May 2017

6 Breakfast Briefs IN FOCUS 20 Macau’s entertainment dilemma Macau must overcome some difficult hurdles if it hopes to fulfil the government’s dream of boasting world-class non-gaming attractions. JAPAN 26 The Japanese Integrated Resort, Part 3: From pachinko to sumo wrestling Casino and integrated resort experts Dr Glenn McCartney and Dr Andy Nazarechuk look at the essential elements of a Japanese IR. 32 Spotlight on Japan the second Japan Gaming Congress takes place this month with leading operators and legislators convening in Tokyo. KEEN OBSERVATIONS 36 Yet another tradeshow? Dr Brian To looks at the importance of trade shows to business strategy and where some companies fail to capitalize. FEATURES 40 Asia’s final fantasy IAG speaks to DraftKings’ Jeffrey Haas about the rapid rise of DFS The Philippines and its regulatory state around the world. 52 Lex Mundi lays down the law 12 Led by Macau law firm MdME, worldwide legal collaboration Lex fights back Mundi will launch its new Global Gaming Law Guide at G2E Asia 2017. RULES OF THE GAME Despite a series of potentially 46 The rise of Indochina Part 1: Cambodia catastrophic events and anti- MdME’s Rui Pinto Proença guides us through the regulatory gaming rhetoric from the nation’s framework surrounding the Cambodian gaming industry. government, casino revenues in the Philippines have soared as Manila’s iGAMING IN DEPTH Entertainment City matures. 56 Changing the game online platform provider Bit8 believes it is about to revolutionize the previously under-served online lottery market.

INDUSTRY PROFILE G2E ASIA 2017 SOLUTIONS SHOWCASE 60 Miguel Choi: Home grown Inside Asian Gaming finds out a little more about local boy made 76 Aristocrat answers Asian call good, Aristocrat Regional Marketing Manager Miguel Choi. 78 Comtrade: The business of bonusing THE DISMAL OPTIMIST 82 GPI: Safe and secure 64 How about that hamburger for Kim Jong-un? Dr Peter T Treadway examines how US President Donald Trump 84 IGT: Slots spectacular might best approach the North Korea issue. 86 Abbiati: Chip me up TRADE EVENTS 88 Betsoft recalls iconic characters 68 G2E Asia broadens its horizons G2E Asia 2017 will not only be the biggest in its 11-year history, it 90 Ainsworth: A for Asian innovation will also be the most diverse. 92 TGG: Platform to success 94 Events Calendar Editorial

All eyes on Japan

o describe this as a busy time for the Asian gaming they be? How would they differ from the best IRs that Macau, Las industry would be an understatement. In almost every Vegas, Singapore and Manila have to offer? local jurisdiction you can name, there is significant As observed by Dr Glenn McCartney and Dr Andy Nazarechuk regulatory movement taking shape right now with the in this edition of Inside Asian Gaming, it is likely that any large- PhilippinesT being no exception. Our cover story this issue takes scale Japanese IR would boast a strong Japanese influence to a closer look at exactly what’s been going on in the Philippines both appeal to locals who might frequent the property as well as in recent months, with reports of the industry’s demise under tourists in search of an authentic Japanese experience. But the President Rodrigo Duterte greatly exaggerated if the revenue great unknown is exactly what this might include. A Japanese- results of its major operators are anything to go by. It has certainly style Onsen? A sumo wrestling stadium? Ryokan hotel rooms? been the quiet achiever. Even Geishas? Yet for all of the developments in and around Manila, the eyes All are possible. Should the LDP pass the remaining Integrated of the gaming world continue to be drawn farther afield to Japan. Resort Promotion Bill later this year as expected, therefore This month sees the return of the Japan Gaming Congress (JgC) opening the door for licenses to be granted, it will be fascinating for the first time in three years, its resurrection a direct result to see not only who wins the bidding war but how they interpret a of Japan’s ruling Liberal Democratic Party (LDP) in December Japanese Integrated Resort. passing the Integrated Resort Promotion Bill, which makes We watch on with bated breath. casino gaming one step closer to reality. In the meantime, while this year’s JgC promises a glimpse With some estimates suggesting Japanese casinos could into the future, just a week later G2E Asia returns to the Venetian rake in as much as US$40 billion annually, it’s no surprise Macao where we will be granted a glimpse into the present. G2E that this landmark moment has sparked operators the world Asia remains the biggest gaming industry trade show in the over into action. From Las Vegas Sands, Wynn Resorts, Melco region and just as IAG will be in Tokyo for JgC – where our Editor- International, Galaxy Entertainment Group and MGM Resorts at-Large Muhammad Cohen will chair one day and our CEO to Caesars Entertainment, Hard Rock International, Genting Andrew W Scott moderate a panel – so too will we be prominent Singapore and Bloomberry Resorts, everyone who’s anyone has at G2E Asia with a team of more than 20 people representing our quickly thrown their hand up when it comes to wanting a piece of company in Booths 460 and 463. the Japan pie. All are expected at this year’s JgC. We look forward to seeing you there! Yet, the financial aspect aside, the prospect of Japanese Integrated Resorts and what they might look like is an intriguing Ben Blaschke one. What attractions would they boast? How “Japanese” would We crave your feedback. Please email your comments to [email protected].

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4 inside asian gaming May 2017 EDITORIAL Wong Kei Cheong Distribution Officers Dave Aglosolos Anson Ip Managing Editor Peng Cheang Ben Blaschke Mak Man Wah SALES & MARKETING Hoi Hou Wai Editor at Large Muhammad Cohen SVP Sales and Marketing Semon Cheung CORPORATE Deputy Editor VP of Marketing CEO Raquel Dias Derrick Tran Andrew W Scott

Founder and Adviser Associate Director Sales Chief of Staff Kareem Jalal and Business Development Michael Mariakis Jadeson Ho Graphic Design CFO Rui Gomes Hong Kong Sales Stephen Chan Angel Wong Contributors Director and Administrator Paul Doocey Client Relationship Manager Cynthia Cheang Kareem Jalal Daphne Hong Steve Karoul Administration Manager Rui Pinto Proença Maria Madden I Nelson Rose DISTRIBUTION Andrew W Scott Administration Assistant Distribution Supervisor Suie Ng Photography Emily Vong Ike Executive Transportation Officers Gary Wong Dave Aglosolos James Leong Gary Hong

Advertising Enquiries Subscription Enquiries Jadeson Ho [email protected] +853 6331 5577 Emily Vong [email protected] +853 6647 4123 Derrick Tran [email protected] +853 6688 7214

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Printed by Cochin Advertising Printing Service Co., Ltd. Est. Nova da Ilha Verde 180 r/c R www.asgam.com ISSN 2070-7681 www.omediamacau.com Macau’s VIP future a fight between two

Macau’s VIP market might be enjoying a welcome resurgence but it will soon become a race between two with only Galaxy Entertainment Group and Wynn Macau attracting sufficient market share to maintain a VIP focus, according to a report from Brokerage Sanford C Bernstein. Titled “A deep dive into Macau’s VIP industry”, the report predicts the increased volumes currently being experienced by Macau’s operators – which saw VIP revenue up by 27% year-on-year in March – will be short-lived with negative growth of -3% on its way for the second half of the year. It also forecasts a more steady Compound Annual Growth rate of ~4% through to the end of the decade. However, its reliance on strong Chinese liquidity and the volatility of Chinese government policy will make the VIP segment increasingly challenging going forward for those with less market share. As of 16Q4, Galaxy accounted for 26% of the future) and be able to profit from a 800 tables – since its peak in 2013 and Macau’s VIP gross gaming revenue with continued focus on VIP,” the report, penned despite VIP playing a major role in the Wynn next in line at 17%. by Vitaly Umansky, Zhen Gong and Yang Xie, city’s recovery it is mass market that will “The VIP segment will continue to says. “Looking at recent VIP performance in increasingly drive growth long-term. remain a significant portion of Macau GGR; Macau, Galaxy and Wynn have the most VIP Bernstein is tipping VIP to come in at however, only a few operators should be able exposure on a top line basis.” around +17% for the first six months of to achieve outsized market share capture The number of VIP tables in Macau 2017 but only +7% for the full year due to (and thus above market growth in VIP in has fallen by around 35% – or almost the likelihood of reduced liquidity.

Paradise City confident on VIPs at launch

Paradise Group Chairman Chun Phil-lip spat between South Korea and China because they do not travel with big tourist has claimed his company’s US$1.1 billion over the former’s intention to install a groups, meaning that we will be less Paradise City resort won’t suffer from a THAAD anti-ballistic missile system with affected by the conflict compared to other travel ban imposed by China due to the China subsequently ordering its travel industries such as the duty-free industry,” property’s VIP focus. agencies to halt Korean operations. he said at a press conference at the Korea’s first integrated resort held its Chinese tourist numbers to Korea fell Paradise City launch. official opening on 20 April, unveiling a by 39.4% in March. But Chun said such “Most of our customers individually 711 room hotel, convention center and concerns were unfounded. visit Korea, so they are actually not casino as part of its first phase. The “The target VIP visitors from China influenced by the travel ban of the Chinese opening has been clouded by the ongoing are not affected by the Chinese travel ban government.”

6 inside asian gaming May 2017 Jack Lam sells down Jimei International stake

Jack Lam has sold off his majority stake in Hong Kong holding company Jimei International Entertainment with Cosmic Leader Holdings Ltd acquiring 369 million shares – equal to 65.04% of the company’s entire issued share capital. The HK$443 million deal sees Cosmic Leader Holdings raise their interest in Jimei International Entertainment to almost 74%. Notably, the offer price of HK$1.20 per share represents an 82% discount on their HK$6.60 closing price before the sell off with Lam’s stake now down from around 80% to just under 15%. Cosmic Leader Holdings is 80% owned by Yan Xu – a Chinese property developer – Japan would benefit from “Osaka Strip” and 20% owned by Chen Hong who is said to have investments in the technology and Osaka’s Yumeshima Island would be “Developing the Osaka site, with communications sectors. the perfect location for a Las Vegas multiple operators on the ‘Osaka Strip’, Mr Lam, who operates Jimei Group style “Osaka Strip”, according to a would create critical mass and a true tourist in Macau, has been in the spotlight new white paper from Global Market destination,” explains GMA Managing in recent months with Philippines Advisors (GMA) titled White Paper: Japan Partner Steve Gallaway. “This would President Rodrigo Duterte issuing an Integrated Resorts. compete with Las Vegas, Macau and arrest order amid accusations Mr Lam Capitalizing on the government’s goal Singapore in generating nearly US$11 billion had tried to bribe PAGCOR chief Andrea of boosting international tourism, GMA from that district alone.” Domingo following the arrests of 1,316 proposes creating a tourism hub in Osaka The full white paper focuses on the Chinese nationals allegedly employed at in which multiple developers would be full opportunity for integrated resorts in his Fontana Hot Spring Leisure Parks in granted licenses similar to the Las Vegas Japan and provides revenue projections for the Clark Special Economic Zone. Strip or Macau’s Cotai Strip. various scenarios and regulatory structures.

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May 2017 inside asian gaming 7 SJM’s Grand Lisboa Palace to cost HK$36 billion

“Everything inclusive is about HK$36 billion – we are trying to keep it below HK$36 billion.” SJM last month signed its syndicated loan facilities agreement – which was led by ICBC – with 19 banks and financial institutions comprising a HK$15 billion term loan facility with final maturity in 2022 and a HK$10 billion revolving credit facility with final maturity in 2020. The funding will be used for completion of Grand Lisboa Palace in Cotai, scheduled to open in late 2018. However, Dr So said he was confident the property would prove a success with Macau’s gaming climate enjoying a strong period of recovery after two years of downturn. “It not only gives me confidence, it also gives the banks confidence as well,” he said. “I am told by the leading bank that there are some more banks chasing after them for a secondary market where they can give them some syndication. “I think it is a safe bet because we are the last one to compete and we do not have too much pressure on cost escalation. The total cost of preparing SJM’s Grand stated HK$25 billion estimation due to a It was quite sticky at that time because Lisboa Palace for opening is expected to hit range of peripheral expenses. people were looking at the forecasts of HK$36 billion, according to the company’s “That (the HK$25 billion) is only for the revenue. At that time everybody was Chairman and CEO Dr Ambrose So. casino construction but there is also not very optimistic about the future but Dr So revealed that the actual cost of interior decorations, land costs, preliminary now that the market has started to turn opening was higher than the originally expenses and opening expenses,” Dr So said. everybody is feeling more confident.”

Locals not a goer in Goa

Goa’s state home department has initiated Chief Minister Manohar Parrikar for approval “That is why we have decided on a a process to ban locals from entering any of having undergone a series of amendments policy to ban Goans from going to casinos. the Indian state’s casinos or gambling dens. since it was first mooted in February 2016. A lot has been done about it and in the As part of the government’s draft Gaming Mr Parrikar told DD News, “I sincerely days to come there will be a complete ban Commission Rules, any Goan found gambling believe that gambling is not good. If we on locals going to casinos.” in any of Goa’s four offshore vessels or its can, we should remove it from the state. Mr Parrikar has also promised to many onshore dens would be arrested, as It is human nature to gamble – that is why relocate the state’s offshore casinos but would anyone under the age of 21. we cannot eradicate it completely – but said they wouldn’t be shut down completely The proposal has been forwarded to definitely we cannot encourage it. due to a responsibility to investors.

8 inside asian gaming May 2017 IGT sells its social casino assets

Global gaming manufacturer and distributor International Game Technology (IGT) has announced the signing of an agreement to sell its social casino subsidiary, DoubleDown Interactive, to an affiliate of DoubleU Games Co Ltd – a leading global social casino operator based in Seoul, South Korea. The transaction establishes a new multi-year strategic partnership between IGT and DoubleU Games to provide innovative player experiences in the social casino market worldwide. The deal will net IGT US$825 million, which represents 10.5 times DoubleDown’s full-year 2016 Adjusted EBITDA. Proceeds from the transaction will be used for general corporate purposes, including debt reduction. “Since acquiring DoubleDown in 2012, IGT has grown it into one of the largest and most successful brands in the North American social casino market,” said IGT’s CEO, Marco Sala. “After several years of strong, organic growth and increasingly attractive valuation levels, the time is right for us to maximize the value of this asset for our shareholders. We will continue participating in the growth of the social casino market through our multi-year, strategic partnership with DoubleU Games.”

Macau population density rises again

Macau’s reputation as one of the most densely populated cities on earth doesn’t look like easing anytime soon with the number of persons per square kilometer rising by 300 people in 2016. According to figures released by the Statistics and Census Service (DSEC), Macau’s population density rose from 21,100 per square kilometer to 21,400 in 2016, coming in at just over 650,000 people across 30.5 square kilometers. The increased population also saw a reduction in air quality, increased water consumption and a considerable rise in both domestic and commercial waste. The Northern District recorded the most number of “poor” days when it came to air quality with 19, followed closely by Taipa and Coloane with 17. Domestic waste increased by 5% to 239,992 tonnes while the business sector saw its waste rise by 10.8% to 137,949 tonnes.

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May 2017 inside asian gaming 9 Imperial Pacific granted 10-month construction extension

Imperial Pacific International been seeking to extend operations to 31 made, just to immediately yank it without has been granted a 10-month extension October 2017 but both Best Sunshine further thoughts put forth, to me seems to complete construction on its Imperial Live’s operating license and Imperial Pacific irresponsible.” Pacific Resort in Saipan following a Resort’s construction deadline have now Imperial Pacific Resort held a soft request last month to amend its Casino been extended through to August 2018. opening on 31 March but still has significant License Agreement due to numerous According to the Saipan Tribune, work remaining to open its doors to the construction delays. Department of Commerce Secretary and public. Only weeks earlier the company had The Commonwealth of the Northern Commission head Mark O Rabauliman requested its construction extension, citing, Mariana Islands (CNMI) Lottery said the extension was granted due to the “severe damage to construction equipment Commission met late April along with significant investment already made in the from Typhoon Soudelor that took several members of the House of Representatives, Imperial Pacific Resort project. months to repair; adverse weather IPI officials and community figures where “We’ve moved forward with the conditions making tower cranes inoperable, it was determined that Imperial Pacific extension based on public comments unstable soil conditions causing damage to Resort’s original 31 October completion made, those who are in support and the pilings that were driven into the ground; a deadline be moved to 2018. concerns raised in the meeting,” he was lack of readily available skilled laborers; an The Commission also approved an quoted as saying. overabundance of water at the construction extension on operations at IPI’s temporary “The thought process here is there site delaying the pouring of the concrete casino Best Sunshine Live, which was are a lot of livelihoods tied into it. We’ve foundation; lack of necessary construction due to end on Sunday 30 April. IPI had come this far on the progress IPI had materials” and more.

10 inside asian gaming May 2017 Wynn Palace boosts Wynn Resorts revenues

Wynn Resorts Ltd saw its year-on-year net revenues soar by 47.9% to US$1.48 billion in the first three months of 2017 thanks to its Wynn Palace property, which opened its doors on Macau’s Cotai Strip last August. Wynn Palace brought in US$475.8 million in 1Q17 with US$23.4 million from the company’s Las Vegas operations offset slightly by a decrease of US$21.2 million from Wynn Macau. Net revenues and Adjusted Property EBITDA from Wynn Palace, which enjoyed only its second full quarter of operations, were US$475.8 million and US$111.9 million respectively. Casino revenues from Wynn Palace were US$430 million for the first quarter of 2017. Table games turnover in VIP operations was US$11.04 billion and table games win as a percentage of turnover (calculated before commissions) was 3.03% – slightly outside the expected range of million. Table games win percentage were US$587 million for the quarter, a 3.5% 2.7% to 3.0%. was 21.8%. Slot machine handle decrease from US$608.2 million for the Table drop in mass market operations was US$657.6 million with slot machine same period of 2016. Adjusted Property was US$770 million and table games win win at US$33.9 million. EBITDA from Wynn Macau was US$181.1 in mass market operations was US$167.6 Net revenues from Wynn Macau million, a 5.3% decrease.

Landing International opens Pagcor continues Somerset Jeju Shinhwa World Philippines winning streak

Landing Jeju Development Co Ltd, the wholly owned subsidiary of Landing The Philippine Amusement and Gaming Corporation International Development Ltd, has officially opened its Somerset Jeju (Pagcor) has reported net income of PHP1.32 billion Shinhwa World in Jeju, South Korea. (US$26.6 million) for the first three months of 2017 – a Managed by world-renowned hospitality operator The Ascott Limited, 26.48% year-on-year increase for the national regulator. Somerset Jeju Shinhwa World is the first international-class fully serviced Pagcor’s revenue from gaming operations came in resort condominium in Jeju, offering 344 units of three-bedroom resort at PHP14.04 billion (US$282.7 million) for 1Q17, paying condominium units with thoughtfully furnished and designed interiors. out PHP7.37 billion taxes in the process, both figures Each unit is equipped with a well-furnished kitchen, separate living representing 26.75% more than 12 months earlier. and dining areas, a balcony and a centralized home automation system. Total income excluding expenses was PHP7.73 Somerset Jeju Shinhwa World also provides a wide range of amenities such billion, up 34.81% from PHP5.73 billion in 1Q16. as a clubhouse with a spacious lobby lounge, a fully-equipped gymnasium, a The final net income figure of PHP1.32 billion restaurant offering international cuisine as well as an indoor playroom and a crushed Pagcor’s target income for the quarter of large outdoor play area for children. 369 million and follows strong results for all of the Apart from Somerset Jeju Shinhwa World, Landing Jeju will open and Philippines’ gaming operators last year, with gross operate the first hotel under the trademark ‘‘Marriott’’ in Jeju, Jeju Shinhwa gaming revenue nationwide rising 19% in 2016 to a World Marriott Resort and Spa, which is expected to open in late 2017. record P149.12 billion (US$3 billion).

May 2017 inside asian gaming 11 Cover Story

The Philippines fights back

By Muhammad Cohen | Editor at large Despite a series of potentially catastrophic Muhammad Cohen also blogs for events and anti-gaming Forbes on gaming throughout Asia and rhetoric from the nation’s wrote Hong Kong On Air, a novel set during government, casino the 1997 handover about TV news, love, revenues in the Philippines betrayal, high finance and cheap lingerie. have soared as Manila’s Entertainment City matures.

12 inside asian gaming May 2017 Cover Story

or the Philippines, 2016 began with stolen millions rose 19% to a record P149.12 billion (US$3 billion), according to from the Bank of Bangladesh washing through Manila Pagcor, the government’s casino regulator that licenses private casinos, featured anti-gambling rhetoric and gaming operators and owns 46 gaming facilities. The three Manila license revocations from President Rodrigo Duterte. integrated resorts – Resorts World Manila plus Entertainment The President, who took office on 30 June after running City’s Solaire and City of Dreams Manila – accounted for about on a law and order platform, backed up his tough talk by ordering 60% of that reported revenue. Fthe arrest of Macau junket tycoon Jack Lam. That’s not a formula In late December, Okada Manila began a phased opening as for success you’ll find in any casino industry textbook, but the the third Entertainment City resort, and, as it ramps up, is likely Philippines and Manila’s burgeoning Entertainment City had a banner 2016, with success seemingly continuing this year. So what’s going right and why? Chinese visitor arrivals rose 38% last year to 675,663, supplanting Japan as the Philippines’ number three visitor source behind Korea “While Macau recorded and the US, while overall visitor arrivals increased 12% to just short of the six million target. However, Chinese tourists are not in evidence its third straight year of on mass gaming floors and insiders say they’re not a main reason for the revival. More important are ongoing improvements to integrated declining casino revenue, resorts and local infrastructure, plus government policies favorable to the industry. 2016 gross gaming revenue in “The Philippines gaming market is similar to the early stages of the Philippines rose 19% to a Macau and Vegas,” Morgan Stanley analyst Alex Poon wrote in April while increasing the bank’s GGR growth outlook for this year from record US$3 billion according 10% to 20% and its target price for Bloomberry Resorts, owner of Entertainment City’s Solaire Resort and Casino, by 20%. to Pagcor, the government’s While Macau recorded its third straight year of declining casino revenue, 2016 gross gaming revenue in the Philippines casino regulator.”

May 2017 inside asian gaming 13 Cover Story

to shift the revenue balance further toward the IRs generally and subsequently becoming a major IR destination. “Looking at growth Entertainment City specifically. and geography, how much gaming, how much mass, how much “Entertainment City is developing into what the Philippine food and entertainment, you have Macau, Las Vegas, Singapore and government envisioned it to be,” City of Dreams Manila Property Atlantic City. Now the Philippines is competing for number three in President Geoff Andres says. “We surprise our guests with the terms of product offering.” excellent quality of the offering combined with the renowned Filipino Solaire, controlled by Philippine ports billionaire Enrique Razon service culture. We have international guests that tell us they came to Jr through Manila listed Bloomberry, opened in March 2013 as Manila reluctantly, but they are surprised at how nice it is and then the first property in Entertainment City, the 120 hectare district on we see them come back again and again.” Manila Bay slated to house four IRs plus commercial and residential developments. In late 2014, Solaire opened the all-suite Sky Tower, THREES WILD expanding to 800 rooms, adding a Broadway style theater, meeting “All of us are contributing to critical mass that’s beginning to areas, additional VIP rooms, space for retail and other features. generate critical mass benefits,” Solaire President and Chief It overtook Resorts World Manila to become the market leader in Operating Officer Thomas Arasi says, pointing out that Manila is gaming revenue and last year won a Forbes Travel Guide five-star

“We have international guests that tell us they came to Manila reluctantly, but they are surprised at how nice it is and then we see them come back again and again.” - City of Dreams Manila Property President Geoff Andres

Okada Manila’s soft opening was in December

14 inside asian gaming May 2017 Cover Story

rating, “a huge high water mark,” Mr Arasi says, affirming Solaire’s strategy “to create our own brand, a combination of luxury, aspiration and whimsy.” In 2016, Solaire achieved financially, too, more than doubling EBITDA to a record P10.6 billion and boosting its EBITDA margin from 20.6% in 2015 to 34.8%. Gaming revenue from its roughly 400 tables and 2,000 machines rose 19% to P38.3 billion. Mass table revenue, accounting for 26% of gaming revenue, grew the fastest at 22%, with slots, 25% of gaming revenue, up 19% and VIP, 49% of gaming revenue, up 17.4%. At the top end, Solaire moved away from direct VIP toward fixed junkets, including several from Macau. Its bad debt provisions declined 92% to P204 million. “Both in VIP and mass, our marketing has been geared toward no one concentration in any foreign market, but spread across six- to-eight national markets, a little like the way Singapore does it,” Mr Arasi, who opened the Lion City’s Marina Bay Sands in 2010, says. “The biggest news is penetrating further into the Asia-Pacific wallet.” Beyond gaming, Solaire has 20 F&B options from VIP-only Chinese to a food court and recently swapped out a steakhouse for a Korean restaurant. Retail began opening last year and continues filling in, with a Louis Vuitton flagship store – the first new LV in the Philippines in 24 years. Another singular feature is the Sky Range Shooting Club, where guests can take target practice with the club’s selection of pistols and rifles, or even arrange to bring their own. Bloomberry also plans to build a second casino hotel in Quezon City on the north side of Metro Manila, aimed at the local market.

SWEETER DREAMS The ramp up story is similar at other IRs. City of Dreams Manila, a partnership between Macau’s Melco Resorts and Entertainment (formerly Melco Crown Entertainment) and Belle Corporation, controlled by the family of Henry Sy, the Philippines’ richest person, debuted in December 2014. After a sluggish start, it hired Mr Andres, a Las Vegas and Macau veteran, in November 2015. “It’s now reaping Okada Manila President the benefits,” an industry insider observes. Steve Wolstenholme CoD Manila reported US$160 million in property EBITDA last year, nearly triple its US$55 million in 2015, with the top adjusted EBITDA margin in Melco’s resort portfolio, reaching 34.7% in the fourth quarter. VIP roll rose 110% and VIP revenue rose 169% to US$238 million, representing 45% of gaming revenue. Mass table revenue rose 42% to US$153 million and machine revenue rose 53% shade of purple that extends to the limousine fleet, Okada expects to US$133 million. to open more hotel rooms and other attractions by mid-July. When The property is also more aggressively attempting to leverage its completed, likely by year’s end, the resort will have 215 mass tables, unique assets. 185 VIP tables and 1,800 machines. “We have three international hotel brands [Grand Hyatt, Crown Towers and Asia’s first Nobu], almost 1,000 rooms, over CANNIBAL LECTURE 20 restaurants and the world’s only DreamPlay, an awesome The consensus view portrays Okada as a threat to cannibalize revenue DreamWorks-inspired play space,” Mr Andres says, plus signature from other IRs. But Bloomberry Director of Investor Relations Leo dining and spas at Nobu and Crown. “Our hotel occupancy numbers Venezuela contends, “There’s no downside to Okada.” are quite high and we find ourselves in the enjoyable position of For the first two months of this year, he says the four IRs in being able to yield the hotel.” Manila, including Okada, showed 29% growth from a year ago and Okada Manila, part of Kazuo Okada’s Universal Entertainment that without Okada, the total is up 20%, almost evenly split among that includes Aruze Gaming and pachinko in Japan, opened half its the three incumbents. main gaming floor in December and unveiled the world’s largest “It’s early days, but that gives us confidenceO kada is growing dancing fountain – by the creators of the Bellagio’s showstopper – the market,” Mr Venezuela says, adding, “Based on our experience, at the end of March, along with a handful of retail and restaurants it takes a while to ramp up. City of Dreams Manila took 18-to-24 plus 174 hotel rooms out of its projected 993. Flashing its signature months – and they’re an experienced operator.”

May 2017 inside asian gaming 15 Cover Story

Resorts World Manila

Philippine casino business. As in Macau, casinos are open to junket promoters and local residents, except government employees. New sheriff, Unlike Macau, there are no restrictions on proxy betting. Despite the embarrassment of Bank of Bangladesh heist funds in Manila casinos, legislation to bring casinos under anti-money laundering statutes same law has yet to pass. LAM STEW By Muhammad Cohen The December presidential arrest order against Macau junket tycoon Jack Lam and shutdown of his Fontana Hot Spring Leisure Park after a raid netted 1,300 illegal workers from mainland China looked terminal. But Mr Lam was safely out of reach when the order came Philippine President Rodrigo Duterte sounds like down. Recently, a legislative investigation found that, rather than Mr no fan of gambling, publicly denouncing gaming and gaming Lam trying to bribe immigration officials as alleged, he was the victim executives while bring sweeping changes to parts of the industry. of a shakedown. Last month, Mr Lam sold his majority share in Jimei Yet government gaming regulator and operator Pagcor reported that International, part of the group that owns Fontana. Pagcor Chairman revenue rose 19% in 2016. President Duterte and his chosen Pagcor Domingo says that Fontana’s contract was disadvantageous to Chairman and CEO Andrea Domingo generally get high marks on Pagcor and different from other operator agreements. casino policies. “We’re in negotiations to bring that contract into line with other Reported gaming revenue numbers may be somewhat inflated. operators,” she says. Pagcor cut its franchise fees to casino licensees by 10 percentage Pagcor has also pledged it won’t grant any new casino licenses for points after a 2014 Supreme Court ruling subjected casino operators the next five years. “We have a lot of casino applications,” Ms Domingo to national income tax. But casino owner Bloomberry Resorts emphasized, keynoting the mid-March ASEAN Gaming Summit in won a Supreme Court case to stop the income tax last August, so Manila. “But we want to protect the people who invested early.” Pagcor reversed its fee cuts, increasing its income that’s reported The future is murkier for eGaming, casino games, bingo and with gaming revenue. Nevertheless, gaming revenue growth in the other gaming delivered online via hundreds of Pagcor licensed Philippines is real and the new regime is part of the story. shops. President Duterte has spoken out against “online gaming,” The Duterte administration has not altered basic terms for the expressing concern about tax collection. Pagcor didn’t renew the

16 inside asian gaming May 2017 Cover Story

In their research note published in April, Morgan Stanley’s Mr Poon and Praveen Choudhary write, “We think consensus is overly concerned about the competition from Okada,” and assign a 9% market share to Okada for this year. “It’s early days but The 1.7 kilometer toll road connecting Entertainment City to Ninoy Aquino International Airport, completed in December, transforms the we’re confident Okada is transport picture. A passenger touching down at 21:00 can be in their Entertainment City hotel room before 22:00, compared with previous growing the market. Based transit times that could exceed two hours in extreme conditions. The elevated road, known as NAIAX, also links Entertainment City to the on our experience, it takes upmarket Makati district. “We’ve experienced what we hoped – and now that it’s happened, a while to ramp up. City of we’re breathing a pleasant sigh of relief,” Solaire’s Mr Arasi says of the expressway. “It’s not just what we thought it would be, but more.” Dreams Manila took 18-to- The toll road isn’t the only new airport-casino link. On 18 April, Resorts World Manila opened its P1.5 billion elevated walkway to 24 months – and they’re an NAIA Terminal 3, just 220 meters (723 feet) away, transforming a nearly impossible pedestrian odyssey into an air conditioned experienced operator.” 10 minute stroll over moving walkways, capable of transporting 200,000 people daily. Former Pagcor Vice President Francis Hernando sees the bridge as defensive. “If they didn’t do it, with the expressway

license of PhilWeb, one of the two major eGame operators and service providers, and Mr Duterte labeled PhilWeb founder Roberto Ongpin an “oligarch” getting rich dishonestly through influence in previous governments, forcing Mr Ongpin to exit PhilWeb. Pagcor has taken bids for new eGaming licenses, and PhilWeb President Dennis Valdes says his company is among the hopefuls. He also notes that PhilWeb very efficiently handled its payment obligations. “The way we were set up, we would close our books [for the 24 hour cycle] at 06:00, do calculations by 08:00 and send Pagcor a check,” he explained.

OUTSIDE THE ZONE Cagayan Economic Zone Authority (CEZA) pioneered online gaming Pagcor Chairwoman and CEO Andrea Domingo licensing in Asia through master licensee First Cagayan Leisure and Resort Corporation. CEZA is located in a relatively underdeveloped northeastern tip of Luzon, around 600 kilometers from Metro Manila. President Duterte has declared that Pagcor should only be For convenience and connectivity, CEZA licensees often conduct a regulator and sell its Casino Filipino operations. Experts say data and broadcast operations in Manila. Pagcor has declared that eliminating Pagcor’s potential conflict of interest as a casino operator operations outside CEZA need Pagcor approval and established would remove a major roadblock to counting the Philippines among POGO, the Pagcor Offshore Gaming Operators license, potentially the world’s best regulated gaming jurisdictions. Ms Domingo warns making CEZA licenses irrelevant. Pagcor hasn’t moved against CEZA it won’t be easy. licensees in Manila, but the writing is on the wall. “We have to decide the valuation of 46 casinos. That takes a long “We are focusing on developing our telecommunications skeleton time,” the former Commissioner of Immigration says, especially in case we can’t operate in Metro Manila,” CEZA administrator Jose since, according to Ms Domingo, all are operating profitably as of Mari Ponce says. CEZA has also established Northern Cagayan 1 January. The government must also decide whether the casinos Gaming and Amusement Corporation to develop land-based gaming should be sold individually or as a package. and hopes to develop a full-fledged international airport in the region. While Ms Domingo doesn’t oppose divestiture, as far as the “Give us a year or two,” Mr Ponce says. timing goes, she says, “I’m not holding my breath.”

May 2017 inside asian gaming 17 Cover Story

Solaire President and Chief Operating “Looking at growth and OfficerThomas Arasi geography, how much gaming, how much mass, how much food and entertainment, you have Macau, Las Vegas, Singapore and Atlantic City. Now the Philippines is competing for number three in terms of product offering.” – Solaire President and COO Thomas Arasi

connection to Entertainment City, they risked being bypassed,” he says. A direct expressway link to Resorts World Manila is due to open later this year.

STILL BUILDING Access is a footnote to ongoing expansion of RW Manila, owned by Travellers International Hotel Group – a joint venture between local tycoon Andrew Tan’s Alliance Global Group and Genting Hong Kong. Opened in August 2009 as the Philippines’ first integrated resort, RW Manila, with an 89-outlet mall and 1,500 seat theater, is part of the Newport City complex that includes offices and training facilities for Genting’s Star Cruises and a Belmont Hotel that RW Manila operates. Marriott West Wing, opened last November with 228 keys, completed the so-called Phase 2 expansion that lifted RW Manila’s room count to 1,454 including the all-suites Maxims and value choice Remington. Marriott Grand Ballroom, opened in June 2015, features “They’re trying to create a destination of their own,” Mr Hernando the largest hotel ballroom in the Philippines, accommodating up says, as a counterweight to Entertainment City. Travellers also has a to 4,000 and seating 2,000, plus 30 additional meeting spaces plot in Entertainment City, where it broke ground in October 2015, including two wedding chapels. but appears “not in a hurry” to build, the former Pagcor official says. As management hoped, Phase 2 boosted non-gaming revenue, RW Manila Director of Corporate Communications Owen Camayo up 10% last year and 21% since 2014, to P3.8 billion. EBITDA rose 4% counters that piling at the Entertainment City site is underway while to P6.4 billion. Gaming revenue fell 2.3% and is down 16.7% over the management “polishes and tweaks” the blueprint. “Now that we’ve past two years, largely due to a 43.3% drop in VIP volume since 2014 seen the other plans, we want to create something unique,” Mr as Entertainment City matured. Morgan Stanley’s Mr Poon notes that Camayo says. RW Manila’s mass volume expanded 8% last year and hit a historic He insists the project, now known as Westside City Resort, will high in the fourth quarter despite more competition. His analysis include an integrated resort, along with residential and commercial also suggests increasing use of Maxims and Remington rooms for elements found in Newport City. Others doubt Travellers would promotional purposes could be driving mass growth. spend US$1 billion, the Entertainment City minimum investment, RW Manila’s Phase 3 expansion is already underway, adding 900 to cannibalize RW Manila. But as Manila’s center of gaming gravity rooms in Sheraton and Hilton hotels plus a new wing at Maxims, and growth continues shifting to Entertainment City, following the as well as doubling gaming space, with the first opening expected model of Macau’s flow from the peninsula to Cotai, the pull may next year. prove irresistible.

18 inside asian gaming May 2017 Cover Story

May 2017 inside asian gaming 19 FIneature Focus

Macau’s entertainment dilemma

In an insightful interview, former Melco Crown Entertainment executive John Raczka explains why Macau must overcome some difficult hurdles if it hopes to fulfill the government’s dream of boasting world-class non-gaming attractions.

20 inside asian gaming May 2017 In Focus

Batman Dark Flight is one of Studio City’s many family attractions

f you ever wondered who drove the development of the cutting edge attractions “DreamPlay” by DreamWorks “Not everything to be built Animation and Pangaea Ultra Lounge at City of Dreams will work, but things like Manila – as well as Batman Dark Flight, Warner Bros Fun Zone and Franz Harary’s House of Magic among others at research won’t help much in Studio City Macau – meet John Raczka. The entertainment executive Ihas held key roles with the likes of Hanna-Barbera Productions, providing guidance in this Turner Home Entertainment, Sony Pictures Entertainment, BT area, for the customer is a Openworld and most recently Melco Crown Entertainment as Vice President of Entertainment Development & Operations. Inside Asian rear-view mirror, not a guide Gaming caught up with John to ask him just how far entertainment diversification can be expected to evolve in Macau. to the future.”

Inside Asian Gaming: Thanks for your time John. First of all, how diversified do you envision Macau’s entertainment menu becoming in the future given the Chinese provinces, with most hosting indigenous-skewing government’s push for broad diversification among entertainment vehicles with modest production values. So asking Macau’s integrated resorts? mainland Chinese to embrace more sophisticated state-of-the-art John Raczka: I would first say that expectations have to be entertainment offerings and pay a premium price for it requires realistic. There are a number of realities in the marketplace beyond totally new experiences, spectacle scale if possible and thematic ties the control of the IRs that will directly impact this. linked to national heartstrings or highly prized foreign intellectual property franchises for added bonus – none of which is brought to IAG: Can you provide more details on some of these life cheaply or in short order. realities for us? Also, when it comes to live entertainment events, especially JR: Sure. The level of entertainment consumption sophistication concerts, competitive frame dynamics with performance venues in among Chinese consumers varies greatly across different Hong Kong skews in Hong Kong’s favor from some perspectives.

May 2017 inside asian gaming 21 FIneature Focus

“... currently how many resident shows in Macau, with its particular visitor demographics, can simultaneously sell out five or six days a week?”

Besides the convenience factor for Hong Kong citizens to see shows that are only a taxi ride away as opposed to having to take a ferry to Macau, promoters are not limited to book on coveted weekend dates in Hong Kong and can focus on marketing in Hong Kong alone to fill a show. When you take this into account – as well as the fact that so many of the Top 15 Cantopop revenue-generating artists 10 years ago are still among the biggest revenue-drivers today, leading to significant repeat artist bookings – it is obvious that Hong Kong is a substantial live entertainment competitor to Macau. If trying to draw a comparison with Las Vegas, one would reasonably ask why is it popular for Americans to travel from The House of Dancing Water has been a great success for Macau’s major US feeder markets to Las Vegas to see a touring show City of Dreams instead of seeing it more conveniently at home? But if you think about what the “Vegas Concert Trip Experience” includes, it is broader than just seeing a concert and having dinner. It would likely be a two or three night versus a one-night stay and include and lounge markets and Taiwan is not short of either amenity, so multiple nightclub visitations, possibly a pool party during the day can Macau theoretically mimic the Las Vegas weekend clubbing and other gaming and non-gaming activities throughout the stay migration experience with young adults visiting from its feeder that could not be experienced locally. markets like that enjoyed by Las Vegas operators? Without a The density of non-gaming entertainment offerings in Macau critical mass of state of the art clubs in Macau we won’t ever know, has yet to reach a required scale to more closely mimic this as clubbers typically want to be able to choose from multiple multidimensional entertainment experience in Las Vegas. To be destinations each night out and expect an experience not available sure, the psychographics of Macau’s visitor base, local weather back home if they have to travel. and other factors would require a different mix of entertainment Having said that, clubbers visiting Las Vegas for the weekend vehicles than that in Las Vegas for similar dynamics to exist here, from LA, Phoenix, San Diego or San Francisco are primarily all which is why we have to keep putting innovative experiences Americans who can visit spontaneously, not needing to apply for a in front of the consumers and learn by their responses. Not visa. They are pretty homogenized amongst each other, creating a everything to be built will work, but things like research won’t different operating scenario than a club to be filled with guests from help much in providing guidance in this area, for the customer is Hong Kong, China, Taiwan and elsewhere, which creates a whole a rear-view mirror, not a guide to the future. So findings would be host of different dynamics to manage. This would hold true from largely based on what already exists regionally which is not that marketing to operations, music programming and so on. To be fair, robust in leading edge entertainment deployments, creating a committing to significant space and investment for such social real great opportunity for Macau. estate is not an easy decision for a Macau IR to make.

IAG: You mention nightclubs. Wynn Palace didn’t open IAG: The Parisian opened without a resident show in with a nightclub despite previously announcing a plan its new theatre. Why aren’t there more resident shows to do so and there’s no word of anything coming from in Macau? MGM in Cotai. Will we ever have a similar percentage of JR: Two big contributing factors would be marketing costs and nightclub-generated contribution to the IR revenue mix as once again the entertainment consumption maturation curve that in Las Vegas? already mentioned. In the US, a new resident show of significant JR: Shenzhen and Hong Kong are obviously both vibrant club production values would have a heavy marketing up-spend during

22 inside asian gaming May 2017 In Focus

the first year to launch the show, but it would then largely benefit from national word-of-mouth dynamics in subsequent years to allow marketing costs to fall to maintenance levels. You see the “I have always been impressed by show and call your mom in Chicago or your old college roommate in Miami and say, “You have to check out this show the next time the level of support Singapore’s you’re in Las Vegas!” Each domestic ticketholder becomes a potential advocate of your product on a multi-market level from public agencies, including its one coast to the other. But we don’t have that same word-of-mouth carriage reach from Media Development Authority, Hong Kong to Taiwan, Japan or South Korea, let alone opposite extend to entertainment vehicles sides of China, so you have to extend more marketing dollars to educate distant inbound markets over time. The other item is the that promote the market on an big unknown of currently how many resident shows in Macau, with its particular visitor demographics, can simultaneously sell out five umbrella basis.” or six days a week?

IAG: Steve Wynn stated at last year’s Wynn Palace launch that, “A hotel is not diverse if it puts up a rollercoaster. Hengqing has the rollercoaster, but you don’t put the profitable amenity for the themed property. It’s an iconic element rollercoaster in the casino. They tried that in Las Vegas on the Strip, which first-time visitors especially support and also and it didn’t work.” Do you agree? contributes to the property’s theme. Circus Circus has two popular JR: The roller coaster at New York New York continues to be a roller coasters in its 5-acre Adventuredome indoor amusement

The rollercoaster at New York New York in Las Vegas is an iconic attraction

May 2017 inside asian gaming 23 FIneature Focus

Macau has been challenged by Hong Kong when it comes to attracting international music acts

park, which first opened in 1993. I believe if well integrated into the IAG: How much are sponsorship brands playing a role in resort’s overall design with a good location, a standalone ride can influencing touring shows to play in Macau? perform financially well and wear a few different hats of purpose JR: From a programming perspective, very little. It is well known being on the property. that Macau events do not garner the same level of sponsorship hard dollars from advertisers compared to events in larger IAG: More broadly, what do you believe to be the definition “entertainment heavy” markets. Perhaps the Brand Manager in of diversity of entertainment as it applies to Macau, and Shanghai feels he or she is already reaching Macau’s Chinese are Macau IRs getting it right? visitors across the border and the Hong Kong Brand Manager JR: With Macau increasing its mass market visitor base, I am knows the majority of Macau’s daily visitors are from mainland a fan of an IR possessing an entertainment ecosystem that has China, not Hong Kong. In any case, this is one of the reasons why a mix of complementary experiences that address multiple key you don’t see a number of large, off-property perennial events that constituencies versus programming narrowly, demographically are broadcast-worthy and putting Macau more significantly on the speaking. This diversity can be defined by a range of entry level Asia-wide lifestyle and entertainment map. versus premium priced experiences, as well as by consumption For example, it would be great to have a Macau Fashion Week type, meaning interactive versus passively consumed offerings, like to cross promote all of the IRs’ great designer-laden shopping a ride versus a theatrical show. malls, or a Macau equivalent to the “Coachella” music and arts Some operators are already supporting this philosophy at festival, which could grow in scale year after year until it becomes different levels, which is great since it promises more to come as social folklore among the musically inclined. Government-owned different entertainment vehicles find traction with Macau’s visitors, venues like the Macau Dome and Macau Stadium can be helpful instilling greater confidence that the market will reward further in providing a neutral event location among partnering IRs, but investment in non-gaming entertainment. The wick has been lit, without a strong sponsorship landscape, additional financial which is key. support would also be needed because it’s challenging for the IRs to carry all the hard costs for such events alone. IAG: The Cotai Strip has long been a work in progress but is now nearing completion in the sense that, with IAG: On a macro basis, what would you like to see Macau most properties now open, the entertainment cluster that mature into as an entertainment destination? Sheldon Adelson originally envisaged now exists. Does JR: Macau and Hengqing Island, in principal, can collectively this change the dynamic for operators and should they offer consumers a Las Vegas/Orlando-like hybrid experience due be working more closely together in marketing the entire to their distinct entertainment offerings and close proximity to area as an attractive entertainment hub? each other. But this will require better travel logistics between JR: I think the current disparity of non-gaming entertainment the two, fostering a stronger mass market visitor base in Macau investment levels across the operators, and therefore the as a result. prioritization of their respective marketing focus, makes this a If the Macau IRs continue to push entertainment experience challenge. However, Macau being marketed as an entertainment envelopes, China will further stand to gain by the number of its hub obviously needs to encompass all of Macau, not just the IR citizens experiencing world class entertainment, who will in turn properties. I have always been impressed by the level of support vote with their dollars for greater quality entertainment offerings Singapore’s public agencies, including its Media Development when returning home, spawning entire entertainment ecosystems of Authority, extend to entertainment vehicles that promote the market local investment in entertainment productions and support service on an umbrella basis, which in turn helps the tax-generating leisure businesses across the country. This will generate even greater industry companies perform even better than they would with their demand for non-gaming entertainment experiences in Macau as own level of marketing. It’s a win-win dynamic. well in a healthy, 360-degree fashion.

24 inside asian gaming May 2017 May 2017 inside asian gaming 25 FJapaneature

In the third of their five part series on the development of Japanese From integrated resorts, casino and IR experts Dr Glenn McCartney pachinko and Dr Andy Nazarechuk look at the attractions a Japanese IR will to sumo need to consider if it is to thrive. wrestling By Dr Glenn McCartney and Dr Andy Nazarechuk he most important decision when building an Integrated Resort (IR) is determining what components to add to the product and service The building of mix. The IR is a distinct tourism product in that there are multiple products and services all a Japanese IR under one roof with the ability to be packaged, priced and Tpositioned to suit an array of visitor profiles. The challenge is in determining the optimum mix of products and brands to attract first time and repeat customers willing to stay longer and spend more.

26 inside asian gaming May 2017 Japan

The casino is naturally at the core. Legislation and consumer tastes will determine the Japanese casino floor mix. Casino legislation limits tables in Macau and Singapore casinos. At Macau’s handover, the slots on offer to customers were basic, built “The challenge is in for western audiences and numbered very few. Placed on the fringes of the main gaming floor, they provided minimal revenue. Today determining the optimum they feature an array of Chinese characters, progressive features and stadium play with the technology linking to the patron’s mix of products and comfort of using their smartphone devices. With the tremendous appeal of pachinko and sports betting in brands to attract first Japan, these will be obvious gambling products to include in any time and repeat customers Japanese IR. But a crucial decision will be to determine which other facilities, amenities, services and brands can best entice Japanese IR willing to stay longer and patrons to spend more time and share of wallet across the integrated resort from gaming to non-gaming. spend more.” As destination resorts, IRs also appeal to regional and international visitors with products that suit local and international tastes. In Japan, the delivery of quality is probably more important than in any other destination. The Japanese insist on a high level of Pachinko would certainly be among the gaming offerings of any Japanese IR

May 2017 inside asian gaming 27 FJapaneature

Features such as traditional Japanese Ryokan rooms would appeal to tourists

quality. When they do not experience it, they don’t complain – they just don’t come back. “While many international Japan isn’t alone in this regard, but it will be all the more important for Japanese IRs given the significant investment to be made to hotels are eliminating bring Japanese patrons in. Peel away the glamorous architectural IR tubs and replacing them facades, the ultra luxury of suite rooms and notoriety of a fine dining restaurant – ultimately it will come down to the visitor’s experience with showers, this would and how the individual is treated by trained staff. Japan’s education and training programmes for the hospitality and gaming industry be a mistake if you want will require significant ramping up to deal with the immense staffing needs and skill sets of the IR. to meet the needs of the A person’s perception of luxury will depend on patron profile. It may not be the purchase of luxury brands but time spent at the Japanese clientele.” IR’s “Onsen” (Japanese hot springs) – a product of great importance to the Japanese for relaxing and socialising. It should also attract foreign guests. In the town of Ibuski, locals and visitors alike bury themselves in hot sand heated by a nearby volcano, then take a long shower before finally entering theO nsen to soak away their stress and improve their health. While many international hotels are eliminating Japan featuring seaweed, lotions and other exotic products. With tubs and replacing them with showers, this would be a mistake if the high concern the Japanese place on health and wellness, this you want to meet the needs of the Japanese clientele. For example, theme will be an important one within the IR to attract Japanese in New York, the Kitano Hotel has tubs in every room that are deeper guests (and foreigners). than a standard American tub so that their Japanese clients can soak Again, quality will be key, from food offerings to the level of in their rooms. cleanliness of each facility. A successful IR in Japan must have The Japanese IR will also need a spa that provides Japanese-style the cleanest facilities and highest levels of sanitation if it hopes massages such as “Shiatsu” which features finger acupressure that to succeed. relaxes muscles. There are a wide variety of massage techniques in Finding the right design balance between traditional, modern

28 inside asian gaming May 2017 Japan

May 2017 inside asian gaming 29 FJapaneature

and “wow” features will be an important consideration too. Large rooms in IRs will prevail, being incrementally larger and more luxurious depending on guest importance. But there is also a need “Does a Japanese IR need for a Ryokan-style hotel room. This type of room would feature tatami mats, shoji paper screens and of course a private soaking tub. The a sports arena? The answer service in these types of rooms would feature food and beverage provided in a traditional manner. Guests of these rooms would wear is ‘of course’, but with an a Yukata, a traditional cotton robe, offered in a wide range of colors depending on the age of the wearer. This type of room would be a emphasis on sumo. premium product for higher end clientele, but would also be the type of experience a tourist might seek. Sumo is a popular sport Another cultural difference in a Japanese hotel room would in Japan that attracts a be in regard to the amenities provided. In many countries it is common to find a low-cost toothbrush, shampoo, soap and a few betting audience, which is other minor items in the hotel room. With some hotels pitching “green” or having sustainability measures, many amenities might the type of clientele any only be available on request. In Japan, the expectation is that everything a guest would need casino will desire.” during their stay is provided in the room. In a typical Japanese hotel

A sumo wrestling arena is a must for any Japanese IR

30 inside asian gaming May 2017 Japan

room there would be comfortable slippers, robes and even pyjamas in Japan that attracts a betting audience, which is the type of for each guest. If a new IR doesn’t provide a full amenity package in clientele any casino will desire. Additionally, sumo wrestling is very each room, operators will learn the hard way that Japanese guests popular nationwide so media coverage would provide an additional demand this level of service. opportunity to promote the IR. Sumo can be further expanded as Sport and entertainment will also be key features for Japanese a means to interact with guests through VIP bespoke events and IRs. Unlike Las Vegas which boasts many of the United States’ top various promotional activities within the IR. Basketball, baseball and nightclubs, Macau has only a few nightclubs with DJs. Instead, the football are all popular, so a mixed purpose arena able to cater for entertainment of choice for Macau’s mostly Chinese patrons is sports and music is essential – not forgetting the array of J-pop as karaoke clubs and this won’t be dissimilar in the Japanese IR. In well as international pop and rock stars that continue to put Japan on keeping with Japanese traditions, there is an opportunity to offer their tour schedules even today. “Geisha” style entertainment facilities. Of course, a westerner’s IRs offer a wide range of locally and internationally branded first thought may be that this would be some type of illegal activity, restaurants, retail outlets and hotels. Food and their own home-style but in fact Geishas are trained artists with musical skills. Geishas cuisine are hugely important to Asian audiences. Ethnic cuisines traditionally play a Shamisen (a three-string guitar), sing traditional are also important as seen with Chinese consumers, whether from folk songs, draw and also play games with their guests. The the north or south of China. In Japan, the most important cuisine is entertainment provided by a Geisha creates a memorable experience sushi and sashimi, but noodle restaurants are also popular across for all involved. the country. There will be ethnic dishes and renowned chefs within Another activity that will help the Japanese IR capture the high- this deliberation of restaurant decision making for the IR. end market segment is golf. The Japanese absolutely love playing Non-gaming – be it retail, cuisine, entertainment or relaxation golf, but in Japan it is very expensive and extremely difficult to get tee – has become an increasingly key asset around which IRs develop times. Even when you are on the course, you are expected to play well their marketing messages, with gambling at its center. Gambling and quickly so as not to slow down the players behind you. advertising is prohibited in China so non-gaming IR advertising Multi-level driving ranges are common in Japan and golfers is a common tactic. Complimentary policy and rewards will be practice regularly to improve their play on the course. It is common important marketing tactics for Japanese IRs too, just as it is for any for Japanese golfers to fly to regional destinations such as the global IR development. Even before opening, the Japanese IR will Philippines and play golf for the weekend. This weekend trip can cost be keen to secure a loyal patronage and growing database. Around less than one round of golf in Japan. An IR with one or more golf this, gaming and non-gaming incentives will be given depending on courses will become a magnet for Japanese high rollers. Steve Wynn gambling profile. built his exclusive Shadow Creek golf course in Las Vegas specifically In Japan, true loyalty will go beyond the points, in that the patron to meet the needs of his high-end players. MGM Grand features a full will want to experience a real sense of reward, authentic hosting and service Topgolf entertainment complex, a high-tech range that tracks quality service. Naturally, the process of finding the perfect product shots. Here, golfers can hit golf balls, enjoy the pool, have a drink at mix for an IR is a complex one and requires extensive research, various bars, attend a concert or host a private event. focus groups and thoughtful decision making to ensure that when Does a Japanese IR need a sports arena? The answer is “of facilities come online, patrons frequenting the property are properly course”, but with an emphasis on sumo. Sumo is a popular sport catered for.

May 2017 inside asian gaming 31 FJapaneature

Spotlight on Japan

The second Japan Gaming Congress takes place this month with leading operators, local politicians and industry experts converging on Tokyo for this landmark event.

ith the eyes of the gaming world now very much focused on Japan, May sees the Grand Hyatt Tokyo play host to the second edition of the Japan Gaming Congress (JgC). WIt is now three years since the inaugural JgC in 2014 and how the stakes have changed since then. December saw Japan’s ruling Liberal Democratic Party (LDP) pass the long-awaited Integrated Resorts Promotion Bill in December, which legalized casino gambling and set in motion the more critical push to pass the Integrated Resorts Implementation Bill. The Integrated Resorts Implementation Bill will set out the framework for IRs in Japan including where they are to be built, how licenses will be issued and the regulatory framework around which they must operate. Which brings us to the JgC – a two-day educational forum The Grand Hyatt Tokyo that will offer clear, practical insight and understanding

32 inside asian gaming May 2017 Japan

The JgC will include preliminary speeches from Mr Yoshihide Suga, Chief Cabinet Secretary for the LDP, who will discuss “It is now three years since the Japan’s growth strategy around IRs; and Mr Hiroyuki Hosoda, Chairman of multi-party committee for the LDP, who will talk inaugural JgC and how the stakes about the policy objectives of the government’s IR promotion. have changed since then.” The Congress will include a special Operator Vision concept whereby leaders from some of the world’s most prominent gaming operators will provide individual presentations throughout the day sharing, “their insights and general vision on how they plan to use their knowledge and experience to create a unique IR whilst into Japan’s casino legislation. Featuring 14 panels focusing successfully collaborating with their Japanese stakeholders,” specifically on issues surrounding Japan’s gaming industry, according to event organizer Clarion Events. topics to be discussed will include: These will include Melco Resorts CEO Lawrence Ho, Galaxy Entertainment Group President Michael Mecca, Marina Bay Sands • Understanding Japan’s political environment CEO George Tanasijevich, Wynn Resorts President Matt Maddox, • Which IR model is appropriate for Japan President of International Development at Caesars Entertainment • Opportunities for local firms to enter the market Steve Tight, MGM Resorts CEO and Representative Officer Ed • Building a MICE economy and its benefits Bowers and Sega Sammy President and COO Haruki Satomi. • Problem gaming: What’s the solution? They will be watched by representatives of other operators • Licensing regulations: What will they look like? from all corners of the globe keen to learn more about Japan’s • IR locations and the importance of choice potential IRs, while the JgC’s VIP guests will include key • Best practice in IR financing government groups and attendees from the City and Prefectural

Wakayama Hokkaido

May 2017 inside asian gaming 33 FJapaneature

Osaka Nagasaki

“The JgC’s VIP guests will include key government groups and attendees from the City and Prefectural Governments of Osaka, Hokkaido, Wakayama and Nagasaki.”

Governments of Osaka, Hokkaido, Wakayama and Nagasaki. effectively the Japan Pachinko Association – to discuss Pachinko Among the presentations not to be missed at the JgC will be and its view on the upcoming IRs. one by Global Market Advisors regarding its new White Paper – Of course, Inside Asian Gaming will not only be in attendance Japan Integrated Resorts, which includes a recommendation to but will be playing our part too with Editor-at-Large Muhammad create an “Osaka Strip” of IRs similar to the Las Vegas Strip and Cohen chairing Day 1 and CEO Andrew W Scott moderating a Macau’s Cotai Strip. panel on non-gaming within Japanese IRs. The other standout attraction will be the first ever foreign We’ll be keeping readers up to date on all the goings on in introduction and presentation to a non-Japanese audience by the Japan via our daily Breakfast Briefing e-newsletter and in coming Chairman of the Japan Game-Associated Enterprise Corporate – issues of IAG.

34 inside asian gaming May 2017 Trade events

May 2017 inside asian gaming 35 Keen observations

Yet another trade show?

In his latest column for Inside Asian Gaming, Dr Brian To looks at the importance of modern day trade shows to business strategy and the failings of some companies to capitalize.

By Professor Dr Brian To

36 inside asian gaming May 2017 Keen observations

Trade shows provide a unique opportunity for exhibitors to showcase their latest products

ith many countries experiencing subdued Professor Dr Brian To is a growth and financial forecasts being recast, global strategist and senior China has been busy setting itself a 6.5% practice professor with growth target for the year and will undoubtedly over six advanced degrees implement new growth drivers and accelerate in business, management, policy, Chinese business more liberal free trade initiatives to reach its target. and managing change. WYet, while country leaders are busy engaging policies and He consults to several new plans for revitalisation, the mere mortals of industry are Asian governments and readying for yet another year of tradeshows, expos, meetings and militaries, Fortune 500 corporations and ultra- roadshows to pursue revenue expansion strategies. For all of the high net worth individuals advantages that social media can provide, it can be both expensive and their family-owned and disappointing which is why face to face advertising remains so businesses in Asia and important – provided it is done right. North America. Brian presently coaches several Earlier this year I attended ICE at ExCel in London where I was country leaders, corporate reminded that preparation is key to facilitating “yet another trade CEOs and entrepreneurs show” both on the part of the exhibitor and the roving attendee, focused on personal and who has to move quickly through the aisles in practical walking professional effectiveness shoes. In almost every instance – well over 80% of the time – that and revenue expansion strategies. He can I walked past an exhibit, no representative approached or made be contacted at any supportive or welcoming non-verbal gesture that indicated, [email protected] “come inside my booth”, “how can I help?” or “Do you have a burning question?”

May 2017 inside asian gaming 37 Keen observations

“Given that preparations and Many exhibitors are now using a variety of methods set-up arrangements can also to draw attention cover two to three days in advance of a trade show, there it seems absurd to let them slip away when they are right there in cannot be any forgiveness for front of you. I previously mentioned that preparation is key to maximizing poor attitude or apathy.” opportunity at trade shows given the spiralling costs of both attending and hosting, particularly since many of these shows are now becoming even more hyper-competitive with everything from contests, entertainment, food and beverages and even scantily clad men and women used to attract immediate attention to the booth. Here are some preparation ideas that might just help you avoid Perhaps on the third day of such an event one could expect falling victim to missed chances. The starting point is to ensure the such apathy, but not on the first day of what is a major opportunity. design of the booth and your displays are at least attractive, together Given that preparations and set-up arrangements can also cover with your brochures and business cards. It also helps if the team two to three days in advance of a trade show, there cannot be representing your company have undertaken a course of at least a few any forgiveness for poor attitude or apathy. Trade shows are days in understanding how to employ non-verbals, human behavior particularly expensive today and given they are an essential part and advanced interpersonal communications. Leaving any of those of most corporate sales and marketing strategies – particularly for skills to chance and assuming that your representatives already have new product roll outs – the excitement of these new products and these skills is gambling at best. All skills need to be revitalized and services should be matched by the enthusiasm of the professionals refreshed at least bi-annually. presenting them. These skills, both verbal and non-verbal, as well as cultural It is predicted that there will be 150 million global travellers by education, cross selling and sales training skills are critical at all trade 2020, up from 122 million in 2016, and while most of these travellers shows in order to maximize event opportunity given that with almost are tourists, many are also business tourists looking for property, all prospects we only have nanoseconds in which to entice prospects business opportunities and attending conferences and trade shows. to our lair. This fast growing segment represents an enormous opportunity and Get ready and enjoy!

38 inside asian gaming May 2017 May 2017 inside asian gaming 39 Features

Asia’s final fantasy

Ben Blaschke: Thanks for chatting with us Jeffrey. Can you IAG speaks to Jeffrey Haas, start by providing a brief explanation of exactly what Daily Fantasy Sports is and how it works? Chief International Officer Jeffrey Haas:I actually have calls with people who have no idea what Daily Fantasy Sports (DFS) is all the time. The first question at DraftKings, about the I ask someone is whether or not they are a sports fan and a lot of people who are sports fans have played in some sort of season-long rapid rise of Daily Fantasy fantasy game with their friends and colleagues. Everyone pays their $10 or $100, they pick their teams or their fantasy players each week Sports and the game’s and whoever comes out on top at the end of the season takes the majority of the prize pool. global regulatory state What we do is take the experience of a season-long fantasy game and compress that into a much shorter duration. It is one ahead of DraftKings’ push day, for the most part. For the English Premier League it might be across a weekend and for golf it is played across the four days of into Asia. the contest. What we allow is the social experience of playing with friends – we have private leagues which people play in – as well as the opportunity to play with other players around the world. People love By Ben Blaschke the social experience of that as well as creating an additional layer of engagement in following the sports they love.

40 inside asian gaming May 2017 Features

BB: So DFS is changing how people watch sport? JH: First of all I should point out that fantasy football has been JH: Yes, because players are watching games from start to finish around for more than 50 years in the United States. Fantasy sports now and refreshing constantly to see what is happening in relation also became massive among hardcore baseball fans which led to to their DraftKings line-ups – not only their own line-ups but also newspapers running competitions not just in the US but around in relation to their friends’ line-ups. And because we create a better the world. sports experience, the sporting leagues and sports teams love what The broadsheets would have a system whereby you would fill it we do too. in, check it in, mail it in, fax it in and then see how you were doing. Because of DraftKings, 55% to 60% of players have started It’s certainly been like that in the UK for 25 years or so. following an additional sport. And they’re not only following their Then there was the advent of online in the late 1990s. I favorite players and clubs, they are following all the players and all remember playing season-long NHL with my friends in Toronto the clubs across the entire season so they can make good decisions when I was growing up in the late 90s and loved it. What we’ve seen in terms of their line-ups. is new technology and consumer trends impact the transformation That means consuming more sports content, which is of a traditional game that’s been around for a long time. why various leagues such as Major League Soccer, NHL, MLB About seven years ago somebody created this category called and the owners of some sports teams have invested in Daily Fantasy Sports which again is a phenomenal experience DraftKings. They really believe in what we’re doing – creating a compressed into a shorter period. And when new categories emerge richer sports experience. in any industry there is always a lag in regulation that is needed We don’t just consider ourselves a games operator but a media to create safeguards for consumers to ensure the operators are and technology company as well. We’re diversifying our revenue running their businesses to the best standards possible. models in the United States to account for that. We’re doing more and more because we realize that as a media company with fans BB: Where does DraftKings fit in? who are massively engaged in our product, there is a chance to JH: DraftKings launched our business in 2012 in the United States monetize that. and from day one we sought to run our business with integrity because we believe that’s vital both for our reputation and the BB: DFS enjoyed a boom in the United States in late reputation of our industry as a whole. We also want to make sure 2015 but that same boom also attracted the attention of our players have a safe and positive experience. regulators. What’s the current status of DFS in the US? As our business grew rapidly, we sought to reinvest our

“What we do is take the experience of a season- long fantasy game and compress that into a much shorter duration.”

May 2017 inside asian gaming 41 Features

“Because of DraftKings, 55% to 60% of players have started following an additional sport … and they are following all the players and all the clubs across the entire season.” Jeffrey Haas

revenues into marketing and in 2015 we invested a lot of money into opportunity to meet with them in December 2015 and in January marketing and attracted a lot of attention as a result. That attention 2017 they launched their new regulatory framework and legislation brought a lot of questions to our business in terms of who and what around games of skill. We were privileged and honored to receive we are, how we want to operate moving forward and so on. the first controlled games of skill license in Malta and we launched We were very quick to stand up and say, “We want to be in a number of European countries a few weeks ago where we are regulated. We want to pay taxes, we are running a good business seeing some really strong results. here and are more than happy to engage in discussions with any Some surprising results too. The NBA, for example, is huge in authorities who feel they are stakeholders here.” Germany. Every day in Germany the NBA is our biggest sport. As a result we engaged with legislators across the US as to what it is we seek to do and in the 18 months that have passed since BB: How many European countries are you currently then, 11 states have now passed legislation regulating DFS. The key allowed to operate in? point though is that they are recognizing in the statute of law that JH: DFS as a game of skill can be operated across the EU under any DFS is a game of skill and should be regulated as such. It focuses license using something called the Point of Origin Principle under on consumer safeguards but of course there is a tax element there the E-commerce Directive. That means if we are legal and licensed which we are more than happy with. We’re seeing the advent of a regulatory infrastructure spread across the United States and of course this is good for our business, great for our industry and the best thing possible for our players. We’re very happy with what has happened.

BB: What is the regulatory status globally? “In DFS there is no systemic JH: We’ve been talking to regulators around the world, in every jurisdiction on the planet. We’ve been reaching out proactively element of chance. There is no roll to tell people who we are and what we are. That has included of the dice, there is no random Australia, Asia, the CIS, Latin America, North America and of course across Europe. number generator, there is no One of the most interesting discussions we’ve had in Europe has been with the Malta Gaming Authority. We’ve been looking at element of chance as to how people this for years. In 2015 they published a white paper on games of skill apply their approach to the game.” and recognized that a different regulatory mindset was required to approach games of skill compared to games of chance. We had an

42 inside asian gaming May 2017 Features

in one member state, such as Malta, we can use that license to In DFS there is no systemic element of chance. There is no operate in any other member state across the EU that does not roll of the dice, there is no random number generator, there is otherwise regulate or prohibit the activity. So we can use this license no element of chance as to how people apply their approach to in most of Europe but some places we can’t – France, Italy, the UK, the game. It all comes down to your own skill and analysis of the Belgium and Denmark all regulate DFS as a standalone activity so players who are competing. It is a different type of animal and you need to apply for a national license to operate there. that requires a lot of education when speaking with regulators In Germany you don’t require that license. We do have a UK because their default position is, “This is just gambling.” It’s license so the countries we are operating in today are the UK under only once you show them the data and the research reports that a UK license, Germany and Malta under a Maltese license and then you’ve done that they realize it is in fact something different and we will be using that Maltese license to go into many other markets requires a bespoke approach. in Europe. BB: Which sports tend to be the most popular globally and BB: Online poker is another skill game that has had to within certain jurisdictions when it comes to DFS? navigate a similar regulatory minefield as DFS across the JH: We share liquidity globally and all of our sports are available globe. How do the two pastimes compare? in all of our territories. In the UK it’s no surprise that 93% of our JH: Well as you know I previously worked in the poker industry for players play football first – the Premier League, Champions League, many years and can talk about poker at length but although poker is Europa League and so on. We have seven football leagues available. a game of skill, it still has that random element. Mahjong is a game The second sport wouldn’t be a surprise either – 65% of our of skill but still requires the shuffling of the tiles. players play fantasy golf. And then they play everything. The NFL

DraftKings has recently partnered with Major League Soccer in the US

May 2017 inside asian gaming 43 Features

The Green Bay Packers’Aaron Rodgers was the best performing DFS quarterback last season

has been phenomenally successful in the UK which blew us away They are running a real money DFS product which I won’t comment but the NFL has been investing in the UK for 11 years now. They any further on. will play four games in the UK for the first time in 2017 – two at There is also a Mandarin language DFS site operating out of Wembley and two at Twickenham – and all NFL games have sold Taiwan today called FantasyPK.com and they’re killing it in Taiwan. out in previous years. The MLB wants to hold games in the UK too. Who knows this outside of the region? Very few people, so we’ve UK players basically play everything, although I can tell you there are been doing our research and we’re learning. exactly 12 players in the UK who play NASCAR! Then of course there are two huge operators in Australia – When we eventually launch in Australia and have AFL and NRL, Moneyball and DraftStars who are doing a great job. They are there is no doubt that 90% of players will play those, but how many growing the market and people are loving it. We’re seeing regularly players in the US or Canada or Germany will play AFL or NRL? increasing prize pools – AFL, NRL and NBA in particular. Then in Honestly I don’t know, but we think globally. We make all of our sports India, DFS is on fire with Dream11 doing a great job. available to all of our players, we have really compelling contests and It’s not like we are the first people coming in. We’re just very we give people an opportunity to create a global community. interested, we want to learn some more and we believe there is a phenomenal opportunity. We just don’t know what that looks like BB: Where does DraftKings and DFS as a whole stand right yet or when we’ll go live. now in regards to the Asian market? JH: We want to be a global operator so we want to be available BB: How do you feel about the potential for DFS in Asia? everywhere, in every market on the planet in order to help sports JH: Oh very excited, but then I spent 10 years around Asia looking fans connect with each other and we feel we have a phenomenal at the potential for poker … and look what happened over time! platform to do that. We started it through PokerStars in 2007 and now it’s enormous I’m excited about the opportunity in Asia. I can’t tell you exactly – in mainland China in particular. We recognize the potential for what we’re going to do yet – it’s still early days – but one of the DFS in Asia, we just want to do it right and what that means is reasons we’re coming to G2E Asia is to meet people. We’re eager to going in respectfully, telling people what we are, who we are and meet everyone we can – particularly rights holders and legislators and asking how we do business here. regulators. That is our focus. But it’s not like this is entirely a greenfield opportunity for us. There are DFS operators live in Asia today. BB: With that in mind, what is your purpose for coming to Ballr.com is based out of Singapore and they are running a G2E Asia in 2017? product that is not for real money but is advertiser funded. They are JH: We’re looking to learn, we’re looking to meet people. Hopefully focussed on Southeast Asia. people seek us out or we can seek them out and we all learn a bit There is another site called FanXT.com also out of Singapore. about one another.

44 inside asian gaming May 2017 May 2017 inside asian gaming 45 Rules of the game

The Rise of Indochina Part 1

In the first of a two-part series examining Vietnam and Cambodia, MdME’s Rui Pinto Proença guides us through the regulatory framework surrounding the Cambodian gaming industry.

By Rui Pinto Proença

ith all eyes – and business development budgets – on Japan since the Integrated Resort Promotion Rui Pinto Proença is a partner at MdME, where he heads the firm’s Corporate and Bill was approved by the Diet at the end of last Gaming practice. MdME is a full service year, the recent developments on the Indochina Macau law firm and a member of the peninsula have been overshadowed by the land MLGTS Legal Circle, an integrated alliance of the rising sun. This is no surprise. With more population than with renowned law firms in Portuguese VietnamW and Cambodia combined and a GDP per capita that is more speaking jurisdictions. MdME is also than 10 times higher than both, analysts estimate that Japan – who the Macau member firm of Lex Mundi, a world leading network of independent law will not prohibit local participation – could easily become the second firms, with in-depth experience in 100+ largest gaming market in the world after Macau. countries and access to more than 21,000 Japan, however, will not be a market for all. Licenses will be scarce lawyers worldwide. (at this point, two to three seems to be the consensus) and with virtually all big players wanting a piece of the action, the going rate to

46 inside asian gaming May 2017 Rules of the game

Ministry of Economy and Finance (MEF) of the Royal Government of Cambodia (RGC) has released for public consultation its first “At the end of last year, Cambodia draft bill of the Law on the Management of Integrated Resorts and reportedly had more than 75 licensed Gaming Trade (LMGT). With radically different gaming markets, the two countries do casino venues spread throughout the not have the same policy priorities and thus have taken to regulating country. This is probably more than all the industry with distinct approaches. In this two-part article, The Rules of the Game will take a closer look into the recent and the other Asian jurisdictions combined.” prospective regulatory developments in these jurisdictions, starting with an overview of the Cambodian LMGT draft bill. Often dubbed as an emerging market, Cambodia is by no means a newcomer to the gaming scene. Although officially illegal since the enactment of the 1996 Law on the Suppression of Gambling, build an IR has been set at a whopping US$10 billion or, in the words the offer of casino gaming to non-nationals has been authorized of one of the eager contenders, at “whatever it takes.” This is no small by the RGC on an exceptional basis for decades. At the end of last change and will shut out many gaming operators that, albeit suitable year, Cambodia reportedly had more than 75 licensed casino venues and financially sound, may not be able to compete at such a level. spread throughout the country. This is probably more than all other For these companies and for the unlucky losers of the race Asian jurisdictions combined. to Japan, the Indochina peninsula may bring good enough With the exception of Phnom Penh’s Nagaworld, operated by opportunities to expand their footprint in Asia at a more affordable Hong Kong-listed NagaCorp (which holds the monopoly within price-tag. It is against this regional background that both the a 200km radius of the capital), most casinos are located in the Socialist Republic of Vietnam and the Kingdom of Cambodia have border towns of Poipet (bordering Thailand) and Bavet (bordering been, at their own pace, laying the foundations for the development Vietnam), with some operating in the beach tourism destinations of of their respective gaming industries. After a long (and, for some, Koh Kong and Sihanoukville. Despite the numbers, there has been painful) wait, the Government of Vietnam has issued earlier no consistent strategy to govern and develop the gaming industry. this year its Decree on Casino Business. At the same time, the The terms of investing and operating a casino have been defined on

NagaWorld in Phnom Penh holds a monopoly on casino gaming within 200km

May 2017 inside asian gaming 47 Rules of the game

(1) a prohibited zone; (2) a promoted zone; and (3) a favored zone. All areas that are not qualified as promoted or favored zones are, “Cambodia … has released for public by default, prohibited. In such areas, the operation of gaming is consultation its first draft bill of the not allowed under any circumstance or form. In a predominantly Buddhist country, the creation of gaming-free areas is particularly Law on the Management of Integrated important to safeguard respect for sacred sites. Resorts and Gaming Trade (LMGT).” The promoted zones are located in the coastal provinces of Sihanouk and Koh Kong and includes its adjacent islands. These are the only areas where new IRs may be developed under the Gaming Law. Owners and operators of IRs and casinos in promoted zones will benefit from more favorable investment terms. Favored Zones are the ones in which casinos have been approved a case-by-case basis under the license granted to each of its holders. to operate prior to the enactment of the LMGT. Casino licenses in All that will change if the LMGT is approved by the National favored zones will be grandfathered subject to complying with the Assembly. The draft bill – as made public by the MEF – currently provisions of the LMGT. A grace period for complying with minimum stands at 13 chapters and 120 Articles. Here are some its most capital obligations and with the new accounting, auditing and tax relevant features. obligations will be granted. Governing Scope. The LMGT applies to the management and Regulator. The LMGT establishes the Integrated Resort operation of Integrated Resorts, the Gaming Trade, Online Gaming Management and Gaming Trade Committee, referred to by the and other forms of Gaming pursued with commercial purposes abbreviation “GMC”. The GMC is the government body responsible within the territory of the Kingdom of Cambodia. Gaming Trade is for defining policy, issuing regulations, approving games, collecting referred to as the operation of casino games and other forms of gaming revenue and generally supervising and enforcing the LMGT. gaming with profit-making or commercial purposes, while Gaming is The GMC is composed of seven members representing different defined as the playing of casino games, online games or other games ministries, including a General Secretary and a Deputy General where a prize in money or money’s worth may be one based on the Secretary directly appointed by the Prime Minister. Most importantly, player’s luck or skill. the GMC will also be the entity that approves the development Zoning. One of the most interesting features of the LMGT of integrated resorts and the licensing of casino operators, key is the fact that it divides the Kingdom into three gaming zones: personnel and equipment suppliers.

48 inside asian gaming May 2017 Rules of the game

May 2017 inside asian gaming 49 Rules of the game

Licensing. The LMGT sets out a dual licensing structure which relaxed licensing environment may help Cambodia boost its VIP allows the separation of the development and ownership of the business in the short term. property from the operation of its casino. The development and Participation. The LMGT will not allow Cambodian nationals ownership of an IR within a promoted area is subject to authorization to participate in gaming or to enter casinos. While this limitation may of the GMC. Only an entity that owns land in a promoted area or is deter some potential investors from entering the market, it sets no entitled to develop it may apply. During the application process the greater restrictions than the ones that exist today. Moreover, standing GMC will take into consideration the applicant’s financial soundness in a humble 40th place out of 47 Asian countries by GDP per capita, and capability to develop the property, as well as the resort’s quality, it is doubtful that any significant investment would base its strategy uniqueness and attractiveness. in tapping the local market. A successful applicant will enter into an IR development Tax. Casino operators will pay taxes based on gross gaming agreement with the RGC. The maximum number of IRs and the revenues. Although the applicable rates are yet to be announced, the minimum investment obligations will be determined by the RGC. This LMGT indicates that these will not be the same for casinos operating grants the regulator sufficient flexibility to adjust the requirements for within an integrated resort located in a promoted zone and for those new-to-market players according to the development of the industry located in a favored zone. The former will also pay different rates for from time to time. On the other hand, only an IR or casino owner revenue generated by mass market players and by VIP players. An or an entity that has entered into a casino operation agreement with interesting feature of the LMGT gaming tax is that the definition of one of the former may apply for a casino license. A casino licensee gross gaming revenue allows for deduction of junket commissions. must be financially sound, experienced and suitable. A casino license There is still a long way to go until the LMGT is enacted. Upon to operate in a promoted zone may be issued for a period of no more public consultation, the bill must be approved by the Council of than 20 years, while a license to operate in a favored zone may only Ministries and, finally, by the National Assembly. Amendments to the be issued for a 5-year period. text are likely to occur. However, if the final draft remains faithful to Gaming Promotion. Junkets are referred to as Gaming the core principles of the current proposal, Cambodia will benefit from Trade Promoters and are allowed to operate in Cambodia subject a regulatory framework that is likely to appeal to more sophisticated to incorporating a local entity and registering with the GMC. As in investors. By reining in the existing border casinos and channeling Macau, junkets are allowed to operate for a one-year period upon new investments to the coastal provinces, the Kingdom may, with one registration. The requirements and proceedings for registering as a stroke, phase out less desirable players and create something Asia is gaming trade promoter are to be defined by the GMC. Gaming trade yet to see – a beachfront casino strip. The challenges, as I see them, promoters are allowed to extend credit for gaming on their behalf or will come after LMGT’s approval. The capacity of the RGC to enforce as an agent of a casino operator. With regulations governing junket the law and the credibility amongst foreign investors of a politically- activities becoming increasingly more stringent across Asia, a more charged regulator could indeed be a game of high stakes.

The Grand Diamond City “Despite the Hotel & Casino sits just inside the Cambodian border numbers, there with Thailand in Poipet has been no consistent strategy to govern and develop the gaming industry. The terms of investing and operating a casino have been defined on a case- by-case basis.”

50 inside asian gaming May 2017 May 2017 inside asian gaming 51 Features Lex Mundi lays down the law

Led by Macau law firm MdME, worldwide legal collaborative Lex Mundi will launch its new Global Gaming Law Guide at G2E Asia 2017. The guide is published by Inside Asian Gaming.

2E Asia has long provided a high profile opportunity due diligence and must undergo regular quality and peer review for companies within the global gaming industry to procedures in order to retain membership in the exclusive Lex launch new products and ideas, however this year’s Mundi network. show will play host to one of the most unique initiatives “The gaming industry is and continues to be a complex, highly in G2E Asia’s 11-year history. regulated industry. With the continued growth of business and Wednesday 17 May – Day 2 of G2E Asia – will see the launch of investment opportunities around the globe, clients need to navigate Gthe inaugural Lex Mundi Global Gaming Law Guide in a ceremony to current and emerging regulatory and jurisdictional issues that may be held at the commencement of the Regulators’ Luncheon Event. impact their business strategies and tactics. The brainchild of Macau law firm MdME, Lex Mundi is a “Member firms have the local-market knowledge, experience collaboration of law firms from over 100 countries with expertize and understanding necessary to handle clients’ complex challenges in the gaming industry, allowing member firms to offer clients and opportunities, including mergers and acquisitions; private an integrated solution to their legal and regulatory needs across equity; project finance; capital markets (debt and equity); litigation multiple jurisdictions. and dispute resolution; corporate governance; intellectual property; “Lex Mundi member firms are top-tier law firms in their respective real estate; and labor and workforce issues in a wide variety of jurisdictions and among the most experienced and knowledgeable in industry sectors.” the world,” explained MdME Partner Rui Pinto Proença. Lex Mundi’s key initiative is the Lex Mundi Global Gaming Law “They deliver indigenous insight, a market-specific focus and Guide. Aiming to provide a better understanding of the laws governing global connections to a diverse range of domestic and international gaming in key jurisdictions, this first edition to be launched at G2E clients. Each member firm is admitted only after substantial Asia includes contributions from 23 member firms representing 26

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May 2017 inside asian gaming 53 Features

“The brainchild of Macau law firm MdME, Lex Mundi is a collaboration of law firms from over 100 countries with expertize in the gaming industry.”

MdME Partner Rui Pinto Proença

jurisdictions across five regions – North America, Latin America, Europe, Asia Pacific and Africa. The information has been compiled by Lex Mundi member firm lawyers who specialize in the practice of gaming law and are regularly called upon to advise their clients on such matters. Issues addressed in the guide for each jurisdiction include:

• What is prohibited or regulated gambling • How the advertising and promotion of gambling is regulated • The effect of legislative prohibitions outside the territory of enactment • Whether licenses are available to conduct gambling activities and if so, on what terms • Whether there are any restrictions on the use of hardware or software for gambling purposes • How gambling revenue is taxed • The applicability and requirements of anti-money laundering laws to gambling transactions • The enforceability of gaming debts

Explaining the importance of the Lex Mundi Global Gaming Law Guide, Mr Proença said, “Around the world, businesses and participants face legal issues in the gaming industry that affect a number of representatives including operators, investors, software developers, payment services providers, advertisers, equipment vendors, agents, intermediaries and players. “Although there are other gaming guides on the market, what differentiates the Global Gaming Law Guide is not only the in-depth expertize of its contributors but also the fact that it will be freely accessible in an interactive online format with comparative tools.” Users can access an online interactive version of the Lex Mundi Global Gaming Law Guide at www.lexmundi.com/ GlobalGamingLawGuide. The interactive guide allows for a country report and a comparison report between two or more jurisdictions to be viewed and downloaded at the reader’s convenience.

54 inside asian gaming May 2017 May 2017 inside asian gaming 55 iGaming Blue Pages

iGaming in Depth

Changing the game

Online platform provider Bit8 believes it will revolutionize the previously under-served online lottery market with its new product, Lotto Hero.

56 inside asian gaming May 2017 iGaming Blue Pages

iGaming in Depth

or most of us, the word According to the product’s developer, This generation which has been brought “lottery” evokes memories of platform provider Bit8, Lotto Hero tackles up on computer games is not averse to lining up at the local newsagent many of the problems that have previously gambling, they just prefer games available at or supermarket whenever a big plagued online lotteries head on. online casinos. They prefer quick fire content draw is announced then waiting “Most players still view lottery as a with instant gratification. anxiously for the weekend draw amid dreams weekly offline experience,” says Bit8 CEO “Lottery isn’t taking advantage of these ofF striking a life-changing win. Angelo Dalli. “They buy their tickets in an players who prefer spin and win rather than And little wonder either. To this day, the offline establishment and wait for a weekly waiting for Saturday night’s draw like their vast majority of lottery play continues to take or at best bi-weekly draw. parents used to do. place in its traditional form. “The appeal for them is the chance “With Lotto Hero we are talking about While other forms of gaming have to win a life altering prize but that chance an hourly millionaire maker product. Players gradually found their way into the online comes around rather infrequently. As a result select seven numbers out of 35 and one card arena, the very nature of lotteries – which of this plodding pace, lotteries are failing to suit out of four suits. A draw then takes place run infrequently but offer potentially huge appeal to millennials with their faster-paced, on the hour, every hour – 24 hours a day – 365 jackpots – has made their online transition device-led, online focused social lives. days a year. That’s 8,760 draws every year. much more difficult. As Gerard Starkey, Head of Content at EGR, observes, “Of all the gaming verticals, lottery has been the slowest to adapt to the digital world and modern consumer habits. “With draws being held on a weekly or “If lottery is ever going to satisfy the instant bi-weekly basis, it’s clear that if lottery is gratification needs of the digital savvy ever going to satisfy the instant gratification needs of the digital savvy millennial, a fresh millennial, a fresh thinking and innovative thinking and innovative approach is a must.” Which brings us to a brand new product approach is a must.” set to be released in late May – Lotto Hero.

May 2017 inside asian gaming 57 iGaming Blue Pages

iGaming in Depth

Lotto Hero’s payout structure

“A player never has to wait more than rules for customers to learn so there are no 60 minutes to get involved which makes barriers to entry. Its beauty is its simplicity.” it appealing to both slots and sportsbook “With Lotto Hero we are Moreover, Lotto Hero promises to bridge type players. The primary draw offers a that most difficult of ravines – providing the lottery jackpot of up to €1 million which can talking about an hourly same massive payout potential that has also grow up to €10 million depending on millionaire maker been the key to traditional lotteries without frequency, how many players and whether the week-long wait between draws. the jackpot has gone off.” product … a player “In the end we settled on hourly draws Lotto Hero is being spruiked as an and I think we’ve got it right in that regards,” opportunity for operators to diversify never has to wait more Dalli adds. “We thought a lot about the their offerings, with statistics showing than 60 minutes to get exact time periods and whether the draws that a quality lottery product can boost should be slightly more frequently or even an operator’s gross gaming revenue by involved which makes less frequently. around 10%. it appealing to both “We did a lot of market research on this Perhaps more significant though is and settled upon an hourly draw because its potential appeal to a segment of the slots and sportsbook we think it is something that will appeal market that until now has been largely to sportsbook players during halftime, for ignored by the online world. For all of the type players.” example. For casino players, an hour is a long latest online casino innovations, the huge time so there will still be that anticipation – growth of eSports and talk of an impending 59 minutes to be exact because you cannot virtual reality revolution, lottery provides a buy tickets in the last minute before a draw. simple, no-fuss option whereby players can “So we think it will end up being a unique choose their own numbers and enjoy the – making them look nice, making them product that manages to avoid boring anticipation of a potentially huge score. appealing and also making a product for the millennials. We think it is just about right.” “We are talking about the world’s first modern world. It’s a product that doesn’t go Bit8 expects to begin integrating Lotto interactive, truly online lottery product,” to sleep and can be used around the world. Hero into operator platforms by the end of says Dalli, “It is the gamification of lotteries There are no skills required and no new this month.

58 inside asian gaming May 2017 May 2017 inside asian gaming 59 Industry profile

Raquel Dias: Can you tell us about your background? Miguel Choi: I was born in Hong Kong but grew up in Macau. There is a little story behind this; my mother is from Macau and my dad from Hong Kong. Growing up I always heard that the reason they had picked the neighboring city was because my grandparents wanted to be the first to see me! My nationality is Portuguese, hence the spelling of my name.

RD: How did you get involved in the gaming industry, was it a natural decision? MC: It wasn’t planned at all. It all just happened! When I was old enough, I went to study in Canada. I graduated in 2005 and these were exciting times for the city. I had picked Computer Science so, when I came back to Macau, I first got a job at CTM as an IT programmer. It was in 2008 that I joined Venetian to work in IT Support. As luck would have it, I was promoted Miguel Choi: and soon started dealing with clients, which was around the time that online gaming company Laxino contacted me. They were developing their first poker and online slots games and my job was to work as a bridge between the players and the IT team. I stayed with the company for three years. Home There was a brief period working for GPI, basically manufacturing gaming chips. My job had more of a technical aspect to it. I was responsible for coming up with ways in which the chips could be more secure as well as helping increase turnover by making grown the game faster.

RD: Can you tell us a bit about Aristocrat and how you came to be involved? MC: While I was still at GPI, I got a call Inside Asian Gaming Deputy Editor from a headhunter. I was extremely excited, Aristocrat is a big name in the industry Raquel Dias finds out a little and it was quite an opportunity. They were interested in my background since I had more about local boy made good, some experience with the market and some understanding of the games themselves. I went to the interview for the role of Regional Aristocrat Regional Marketing Marketing Manager and here I am!

Manager Miguel Choi. RD: What aspect of the gaming industry do you find the most challenging? MC: I would say that the hardest part

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is keeping up with all the changes. The for both hobbies. We are so close to gaming industry is always evolving everything and at the same time there is no and we have to know everything that shortage of food options. From 3-Michelin is happening to be ahead of the game. “The gaming Star restaurants to the little Chinese The other part is that, in my current eateries, we have everything here! job, there are many aspects that must industry is always be perfect. Working in slots means you evolving and we RD: Was there ever a “turning point” have to make sure the music, the sound in your life? quality, the image as well as the game have to know MC: Wow… that is a difficult question! I are all good … but that is what makes it suppose I have to say marrying my wife exciting too! everything that is has made a big difference in my life. You know what they say, “happy wife, happy RD: What interests do you have, happening to be life,” and it is definitely true. She made me outside of the industry? a better person. She also brought two little MC: So, so many. If I had to pick two, I ahead of the game.” puppies with her and I cannot imagine my would go with food and traveling. I love life without them now, Coco and Miu Miu, a Japan, for example. I think Macau is perfect Pomeranian and a poodle.

May 2017 inside asian gaming 61 Industry profile

“These are also good times with a lot of development in new gaming jurisdictions around Asia. More and more markets are growing and that is very interesting.”

RD: Going back to your work, what do you like most about your job? MC: I love the fact that there is never a dull moment. It is actually quite fun. We get to be involved in the process of creating all these games and play with them! I also do a lot of traveling, which means life is exciting. These are also good times with a lot of development in new gaming Miguel Choi with his dogs jurisdictions around Asia. More and more markets Coco and Miu Miu are growing and that is very interesting.

RD: What would be your advice for the next generation of local talent looking to make an impact in Macau’s gaming industry? MC: I’m only 33 years old, I think I’m still part of the “next generation!” But honestly I think your background does not matter too much. I started in a completely different field and here I am. What is important is keeping up with the pace and learning about the industry as much as possible.

RD: Finally, what is your hope for Macau’s future? MC: First of all, I think Macau has grown at an impressive rate. This last round of openings in Cotai that happened last year alone changed everything. There are still more to come with SJM and MGM developing their properties on the Cotai Strip. For us this is, of course, the best news possible and presents a good challenge. What I would like to see is more entertainment. The local government has been pushing for it and it has been happening, but I would honestly like to see it grow even more. It is important to cater to all segments of the market and Macau needs more entertainment for families and other non-gaming facilities.

6262 insideinside asian asian gaming gaming May Ma y2017 2017 May 2017 inside asian gaming 63 The Dismal Optimist

How About That Hamburger for Kim Jong-un?

By Dr Peter T Treadway Dr Peter T Treadway

Professor, author and examines the basis of financial advisor, Dr Peter T Treadway long-standing tensions is currently principal of Historical Analytics LLC, between North Korea and a consulting firm with an investment approach based the US – something that on his Wall Street experience as economist, strategist and will affect stock markets securities analyst. around the world.

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his column is usually written from the perspective of American attack. Given North Korea’s history and the US propensity technology, globalization and the stock markets. Let me for intervening in local conflicts, a US attack is a realistic worry. North say this about that. The world’s stock markets won’t be Korea has buried its missiles and nukes underground. The country is going up if there is a war in the Korean Peninsula. Some an armed garrison. people may regard North Korea and its unpredictable North Korea has a totally inefficient socialist/communist leader as unsolvable problems. They are not. It may be a good thing economic system that saw its people starve in the 1990s. It is a Tthat Donald Trump, would-be warrior and deal maker that he seems country where human rights are ignored and it is isolated from the to be, is the American President. Trump, if he could just spend a global economy. In spite of all this, if not stopped North Korea will little time understanding America’s role in Korean history since 1945, be capable within a few years of hitting the US with nuclear missiles. could make a deal with Kim Jong-un and push North Korea off the Incidentally, this would be a technical achievement given all the front pages. obstacles North Korea faces and is the product of a population that is intelligent and industrious. These are the same Korean people who So Mr President, where’s Kim Jong-un’s Hamburger? under the superior capitalist/democratic system in the south have In his campaign for President, Donald Trump explicitly stated that he built companies like Samsung and Hyundai. The same Confucian was prepared to sit down and have a hamburger with Kim Jong-un, the work ethic pervades North and South Korea as it does all East Asia. current ruler of the Democratic People’s Republic of Korea, aka North Building missiles and nukes doesn’t require imagination, innovation Korea. Trump the Campaigner bragged how he was master of the art or political freedom. Rather it is a matter of technical discipline and of the deal. By implication, he didn’t suffer from the inhibitions of the competence and implementation of known technologies. The North George W Bush or Barrack Obama Administrations, which avoided Koreans can do it. direct meetings with North Korea. Trump the Campaigner seemed to instinctively know that a military solution was not the preferred way to deal with the North Korean missile/nuke program. In my opinion, the Campaigner was 100% right on the Korean question. The North Korean problem does not have an acceptable “North Korea has had over 60 military solution and sanctions, so far anyway, have not worked. This years to prepare for a possible is a hostage situation where the Korean people – North and South – as well as the 30,000 American troops stationed in South Korea, American attack. Given North are the hostages. Seoul, South Korea’s capital and major city, is only 30 miles from the North Korean border. The US cannot call Kim’s Korea’s history and the US bluff that if attacked he would unleash massive destruction on South propensity for intervening in Korea. It would be largely Koreans who did the dying if the US was wrong and Kim carried out his threat. local conflicts, a US attack is a North Korea has had over 60 years to prepare for a possible realistic worry.”

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A Good Deal Is One Where Both Sides Are Happy The US and the world want the North Korean government to cease and desist with its missile/nuclear bomb program. That’s a given. But it seems nobody ever asks what do the North Koreans and “Building missiles and nukes specifically Kim Jong-un want? Trump must try to understand what doesn’t require imagination, that is. In my opinion, the North Koreans are not building their missiles and nukes to attack their neighbors or the US. What they innovation or political freedom. want most of all – more than even reunification of the Korean nation Rather it is a matter of technical – is security from American attack and recognition by the United States. So why not give them this? discipline and competence To be fair, you cannot blame the North Koreans for their fear of the United States. The North Korean experience with the United and implementation of known States has not been a happy one. For starters, in 1945 it was the technologies. The North Americans and the Russians that arbitrarily divided Korea in two (it was supposed to be temporary). Prior to that, Korea as a unified Koreans can do it.” entity had existed for at least 1,500 years. During what started out as a civil war, in 1950 the US intervened on the non-Communist side. Bombers directed by General Curtis Lemay pounded all of Korea. The toll on the North was especially horrific. An estimated two to three million civilians died as the bombs and the napalm rained down. Reservoirs, civilians, fishing boats – of the “Axis of Evil”. After Iraq, regime change was supposed to come everything was targeted. And of course the senior American general, to Iran and then North Korea. That was the Bush/neocon plan and Douglas MacArthur, wanted to use nuclear weapons when the unfortunately it turned out to be the Bush/neocon nightmare. Partly Chinese entered the conflict. Yes, President Truman fired MacArthur, as a result of being put back in the isolation box, the North Koreans but that might have been cold comfort to the North Koreans. Some resumed their missile/nuclear weapons program. other US president might make a different decision. Kim Jong-un must be aware that in Libya, Muammar Gaddafi – at The Korean War ended not with a peace treaty but with an US urging – gave up his weapons of mass destruction and then, as armistice agreed in 1953. In theory, the parties are still at war. The a “reward” for good behavior, was driven out of office by a coalition armistice had a section forbidding the introduction of nuclear of the US and European countries. Gaddafi suffered a horrible death weapons to the Korean Peninsula. But in 1956 the United States by colonoscopy by bayonet. Kim must be aware that the US invaded unilaterally abrogated this section of agreement. Iraq and turned the Middle East upside down, with Iraq and Syria Over the years the US has flip-flopped, sometimes supporting in shambles and literally millions winding up refugees or dead. The dialogue with North Korea and sometimes supporting isolation. An interesting thing is that Donald Trump the Campaigner, who criticized argument can be made that dialogue did produce positive results. prior American interventions in Iraq and Libya, had a skeptical view But in 2001, the new Administration of George W Bush put North of these events that Kim Jong-un might be comfortable with. Korea back in the isolation booth and declared the country to be part The US can make a deal with North Korea. The United States must define what its objectives are in any negotiation. In my opinion the only American objective should be to convince North Korea to give up its missile/nuclear weapons program. This will require – to use Trumpian language – an amazing verification program and no North Korean leader doubt Chinese participation. Kim Jong-un is right Regime change should not be an American objective. Kim Jong-un to be wary of the US may be a ruthless butcher, he may be a “crazy fat kid” as Senator McCain is reported to have said, he may qualify for all the negative adjectives American politicians hurl at him (like they used to hurl at Saddam Hussein). But he isn’t stupid and he is not going to negotiate his own demise. And he is the guy running North Korea. North Korea has been prophesized to collapse for years but somehow it hasn’t happened. Enough with traditional American moral masturbation and wishful thinking. Mr President, let’s make a deal.

What About a Missile Defense System? Depending on the reliability of any verification scheme negotiated, one option for the US that could accompany or substitute for any agreement would be to build an anti-missile system to defend against North Korean missiles. In fact, anti-ballistic THAAD (Terminal High Altitude Area Defense) missiles are being installed

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in South Korea reportedly on a rushed basis. According to some Isolation Nurtures Dictators reports, it is unlikely this system would be 100% reliable against In my opinion integration into the global economy is the most potent North Korean missiles. In any case they would not be useful in way to achieve regime change and the ultimate removal of dictators. protecting the United States against North Korean intercontinental So often the US has attempted to punish dictators by forcing their ballistic missiles. This system is a very poor Plan B in the absence countries into isolation. But isolation strengthens dictators, global of an agreement with North Korea. integration weakens them. The Chinese are opposed to the THAAD system since they think The best example of this was the fall of the Soviet empire. The it would be utilized for spying against them. To some extent it is up to people of the so-called East bloc and the Russians themselves the Chinese to come up with a verification system which would make saw how their Western European cousins were living and what a THAAD defense system unnecessary. “Minor” detail: The Chinese they were missing. A similar story can be told for China where have a mutual defense treaty with North Korea that was signed in enough Chinese people had gone abroad and the urban Chinese 1961 and has been extended to 2021. population knew they were unnecessarily poor. The country was Another complication: The THAAD system is being based on ripe for the reforms of Deng Xiaoping. Cuba on the other hand South Korean soil. Not all South Koreans are enthused about this. has been under US embargo and isolation since 1959. Castro China has already imposed informal but significant economic remained in power. sanctions against South Korea in response to the THAAD deployment. For those who care about such things, a prerequisite for regime And people living near the THAAD missiles worry that they would change in North Korea is less, not more, isolation. Ironically, in as become targets in the event of North Korean retaliation. much as they help keep his people in ignorance of the outside world, It should be noted that as this goes to press, South Korea only more sanctions which isolate North Korea might make Kim Jong-un had an acting president. This will change soon with elections being happy. So long as the North Korean people live in ignorance of the held on 7 May. South Korean and American interests do not always rest of the world and how much their society is behind, they will coincide. Installation of the THAAD system is one contentious issue. remain quiescent.

May 2017 inside asian gaming 67 Trade events

G2E Asia broadens its horizons

G2E Asia 2017 will not only he 11th anniversary of Asia’s biggest gaming industry trade show and exhibition, G2E Asia, returns to Macau be the biggest in its 11 year from 16 to 18 May 2017 with the focus of this year’s show on the integrated resort experience. history, it will also be the TAn homage to the Macau SAR government’s recent calls for a greater diversity of entertainment offerings, G2E Asia’s Integrated most diverse with this year’s Resort Experience (IRE) will centralize the sourcing of new show focusing on resort products, technologies and services that drive revenue and value from non-gaming sources including clubs, bars, IR technology and experiences and technology. business solutions. These will all be geared towards customers looking for the ultimate experience beyond the casino floor.

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“G2E Asia’s Integrated Resort Experience will centralize the sourcing of new products, technologies and services that drive revenue and value from non-gaming sources.”

“Reflecting the casino industry’s increasing reliance on non-gaming amenities and attractions, more than a dozen companies will be showcasing IR Technology and Business Solutions, featuring hospitality integrated solutions, security systems, big data analytics and CRM, as well as a broad array of solutions that can improve patrons’ experience and boost operational efficiency,” explained Chief Operating Officer for Reed Exhibitions Greater China, Josephine Lee.

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“Among the key features of this year’s exhibition will be MICE as Macau looks to follow in the footsteps of Las Vegas and become a global center for business.”

“Day 2 of G2E Asia 2017 Conference will also spotlight on ‘Integrated Resort Operations and Marketing.’ “Attendees to the event can look forward to a diverse range of new products and solutions, insightful conference and educational forums as well as numerous social and networking opportunities to expand business contacts.” Among the key features of this year’s exhibition will be MICE as Macau looks to follow in the footsteps of Las Vegas and become a global center for business. In fiscal 2016, Las Vegas brought in revenues of US$25.2 billion – its second best year on record – yet gaming revenue made up just 34.2% of that figure, the lowest percentage ever and down from 34.9% 12 months earlier. G2E Asia 2017 will also have a heavy focus on technology, with some of the show’s newest exhibitors bringing with them digital display integrated systems, security solutions, augmented reality, big data analytics and CRM, as well as a broad array of solutions that can improve the patron experience and boost operational efficiency. They will include Hong Kong-based Regal Crown Technology, which will showcase its comprehensive system integration solutions; Arbor Networks, which will feature network visibility solutions that enable fast malware detection and mitigation; and US-based tech corporation Oracle, which will launch Oracle Hospitality – a new global business unit dedicated to helping the hospitality sector accelerate its move to the digital economy. In line with this technological focus, this year’s G2E Asia will include a special networking event targeted at IT heads from across Asia. The “Future Technology Leaders Get Together” event will provide a unique opportunity for 120 future technology leaders from integrated resorts, suppliers and governments to convene, exchange ideas and inspire as they discuss the application of innovative tech solutions to drive customer engagement and enhance efficiencies throughout the industry. And keeping up with all that is going on at G2E Asia 2017 will be easier than ever with the launch of G2E Asia Daily – a free daily newspaper produced by Reed Exhibitions in collaboration with Inside Asian Gaming.

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G2E Asia Daily will be printed and distributed on the morning of each of the three show days on May 16, 17 and 18, providing the latest news from the conference and exhibition floor, showcasing exhibitor products and providing information on everything from G2E Asia press conferences to product and media launches and networking events. The launch of this exciting new product reflects the incredible growth that G2E Asia has enjoyed since first launching in 2007. This year’s show is expected to attract over 12,000 visitors, with the exhibition floor boasting 180 exhibitors covering around 12,000 square meters of space. “More than 70 companies will also be demonstrating their cutting-edge and innovative online gaming solutions, of which 45% are new to the event, to serve the fast-growing iGaming community,” said Ms Lee. “The event is on course to break even more records with a growth of more than 25%, with one third of them first-timers, making their debut showcasing their products and solutions.”

Don’t forget to pick up your copy each day at

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May 2017 inside asian gaming 73 74 inside asian gaming May 2017 May 2017 inside asian gaming 75 G2E ASIA 2017 Solutions Showcase

Aristocrat answers Asian call

Leading slot machine supplier Aristocrat will be showing off its vast array of Asian themed games at G2E Asia 2017.

ristocrat’s global slot sensation Lightning Link is expanding at G2E Asia with new games that have beenA customized to the Asia Pacific market, complete with tailored graphics, jackpots and bet options. This will include the third title of Aristocrat’s new hit Link – Eyes of Fortune – which will be on display to support the first two titles Happy Lantern and Dragon Riches. Also building on the success of Lightning Link is Aristocrat’s new Long Teng Hu Xiao slot game. Long Teng Hu Xiao combines scalable bonus prizes and prizes on the reels linked progressive with strong Reel Power mechanics for a new level of fun. “Our global teams of designers, creatives, mathematicians and engineers are united behind one goal: to create innovative games and cabinets that help our customers provide their guests with the best player experience and entertainment possible. We are excited to present our newest innovations at G2E Asia and to showcase our broad and deep product portfolio that will help our customers appeal to every type of player,” said Vincent Kelly, Aristocrat Managing Director Asia Pacific. Speaking of innovation, Aristocrat will be displaying key extensions to one of Asia’s most recognized and successful slot brands, 5 Dragons. These include:

• 5 Dragons Empire, a new four-level Hyperlink jackpot game that entertains players with an innovative game mechanic, multipliers, bonus prizes and the chance to win Hyperlink jackpots. • 5 Dragons Empire Link, which will appear

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“Our global teams of designers, creatives, mathematicians and engineers are united behind one goal: to create innovative games and cabinets that help our customers provide their guests with the best player experience and entertainment possible.”

on Aristocrat’s Arc Single and Behemoth cabinets with two launch titles – 5 Dragons and 5 Dragons Deluxe. • 5 Dragons Grand, which will bring all the excitement of 5 Dragons to the unique experience of Aristocrat’s Arc Double cabinet. This new version features an enhanced reel layout with increased ways to win, jackpot multipliers and a fun wheel feature with free games and jackpots. • 5 Dragons Rapid, which extends the excitement of 5 Dragons to Aristocrat’s Core Products standalone game category. Building on Aristocrat’s brand presence at G2E Asia will be new versions of player favorites Fortune King Rapid and Lucky 88 Extra Choice.

In addition, Aristocrat will be showcasing the Spin It Grand slot game at G2E Asia 2017. Spin It Grand is a new game concept in the company’s stand-alone progressive jackpot category with a wheel-style mechanic in the top box. Spin It Grand is part of Aristocrat’s ongoing commitment to growing the mass market and will provide stunning visuals and floor presence akin to its Super Wheel Blast Standalone Progressive game category while incorporating key trends such as Metamorphic Bonuses, scalable prizes by denomination and stacked symbols. And Aristocrat’s Games of Fortune collection – crafted specifically for the Asia Pacific marketplace – will include completely new Multiline Baccarat, Baccarat 88, Baccarat Streak and Baccarat Zhuan Zhuan Fa slot games on the Arc Single cabinet. Based on Baccarat and wrapped in Aristocrat creativity, these will be games to watch. Aristocrat can be found at Booth #637 at G2E Asia, or can be contacted online at www. aristocrat.com and on Facebook and Twitter.

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The business of bonusing

ore than 8.5 million pages on terms of acquiring quality (players), players Google are devoted to online are focusing on quantity (bet returns). Comtrade Gaming’s casino promotions, which means Players find any reason to try new iCore – Enterprise thatM there is both strategy and opportunity bonuses and campaigns before committing Gaming Platform allows when focusing on this aspect of operator to new operators. These “financial business. These site administrators encouragements” drive players to test new operators to configure work with players to find, test and post games, help increase their return with no their bonusing to fit online marketing campaigns because additional risk and are adjusted to fit various specific player needs. they understand the sizeable competition player profiles and needs. According to amongst operators in attracting players to Gambling.net, “Whether the bonus money their site. While operators are thinking in can help you overcome a small house edge

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“Players find any reason to try new bonuses and campaigns before committing to new operators.”

at the blackjack tables or allow you to show a retention strategies. Customizing them Reputable casino platforms create a profit against tough competition in the poker at the rate that online trends or player streamlined bonus creation module that room, getting a top gambling bonus is often responses call for is done most successfully provides the functionality to create highly the difference between winning and losing in through an iGaming platform that is tailored campaigns that can be tested on online gambling!” Whenever a player gains capable of handling business intelligence, player samples before being implemented to something, even if only occasionally, they customer relationship management and their target group. The method behind creating will return. multi-channel products. a lucrative bonusing campaign is based on the With the digitalization of online gaming, Not all platforms are created equally and business equivalent of the scientific method: bonusing accompanied with gamification is this can create a significant effect on bonus marketing campaigns based on measurable shaping to be one of the defining benefits to campaigns and the operator’s ability to data and predictive modelling. the multi-channel experience and the most increase their business. Effective bonusing While operators and marketers focus on attractive difference from the experience can do each of the following: external lifecycles, an internal cycle exists land-based casinos offer. that triggers various business development While inexperienced players may focus • Attract players points that will be shown by Comtrade on bigger bonuses, experience shows • Increase player lifetime value Gaming’s Bonus Module on their iCore – them that they should focus their choices • Brand enforcement Enterprise Gaming Platform. on ones that fit their specific needs and Operators see the performance this feature proves to be one of the most With online casinos looking to create indicators before creating campaigns to convincing selling points when operators memorable and attractive engagement, drive business activity. These include: change platforms. The advantage of online the first step when in acquisition and bonuses are the immediate configuration retention campaigns are literal “rewarding • Bringing awareness to a new range of possibilities to continue a player journey, experiences” that are created to drive games configured onto the product real-time rewarding, adjustments to different forms and activity of play. Financial portfolio acquisition responses and experimentation incentives can be bonuses that reward • Driving continuous play by multiple with campaign variables. playing time or increase bet size to meet bonuses being triggered by previous Central Bonus Modules within online bonus eligibility among a variety of other bonus redemption platforms serve as a single point for bonus creative options and ultimately follow a • Rewarding VIP players to extend player management across multiple brands, player journey of attracting their interest, lifetime value suppliers and products and work as the rewarding their investments and retaining • Cross-selling products to decrease control center for both acquisition and their loyalty. additional acquisition costs

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Bonus summary

Product Credited Bonus win Used Pending Current bonus balance Last credited %Amount %Number

Live dealer EUR 603,00 EUR 0,00 EUR 603,00 EUR 0,00 EUR 0,00 21-03-2017 09:24 %31,00 %47,00

Sportsbook EUR 379,00 EUR 0,00 EUR 379,00 EUR 0,00 EUR 0,00 14-03-2017 10:41 %62,00 %78,00

With bonuses, customers are encouraged then configure campaign variables and financial and business statistics to evaluate the operator market. Instead of until they see their ideal results in related to acquisition, conversion and focusing on mass-market sign-up bonuses, the sample group and selected player retention. Additional data extracts can be platforms such as Comtrade Gaming’s iCore bonus profiles. provided for specific business interests divides bonuses based on particular stages • Step 2: Once bonus configuration is based on player behavior to shape future in player lifecycle development to trigger optimized, the campaign is introduced campaigns and desired responses. or award particular behavior. Personalized to the segments that were created by the offers are provided based on segmented platform’s player segmentations. playing styles and operators take a more relationship-based approach. Central bonusing works with loyalty Player overview Once players begin playing, the platform campaigns introduced later in a player’s can determine and segment their particular lifecycle with data collected on CRM and playing style and introduce targeted business intelligence modules. For example, incentives through real-time notifications, Comtrade Gaming’s Multi-channel bonusing whether they be in-game, device push is scalable and evolves with the operator notifications or targeted e-mails. Not only through real-time activity monitoring and does this manage player relationships but it optimized player profiles. also shapes the player experience based on their particular activity. Analysis: What is measured, is mastered Testing Effectiveness • Working with the business intelligence • Step 1: First-rate platforms allow the back office, marketing and management operator to see preliminary results with teams can assess the progress and a test group to gauge responses for the outcomes of campaigns. The bonus

extensive campaign format. The bonus impact should be measured in terms of Average Lifetime Value Deposit Turnover Ratio administrator and marketing team bonus cost and generated net revenue

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Bonus cost: 3,251 £ (8,3%)

Generated net revenue: 4,568 £ (9,6%)

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• Customer relationship management The bonus module on platforms are both monitors marketing actions to maximize “Not all platforms are created an acquisition and retention component player loyalty and platform activity and is the foundation to multi-channel and with group segmentation and targeted equally and this can create product support. Between real-time rewards campaigns. Player information that is a significant effect on bonus that run across any product or supplier and at-hand serves as the data foundation to campaigns and the operator’s the automated segmentation that supplies setting business KPIs, create personalized operators with the ability to customize offers and shape campaigns to improve or ability to increase their business.” their marketing efforts, player conversion enhance integrated player demographics. workflows are perfected.

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Safe and secure

Gaming Partners International continue to set the standard for gaming product technology and innovation, with this year’s G2E Asia highlighting the company’s impressive gaming chip security.

aming Partners International’s new V-Series gaming chips will be the star of the GPI booth at G2EG Asia as the leading global supplier of table game products shows off its array of chips, plaques, jetons, playing cards, RFID solutions, layouts and dice. The V-Series is produced with a new, innovative and highly durable injection material formula. It is a Bourgogne et Grasset (BG) chip that was developed to provide customers an additional gaming currency option with advanced chip design flexibility. The V-Series chips are unique in that they allow customers to design their chips with a greater amount of versatility. The V-Series is invisible under standard UV wavelengths with the company’s Chip Inventory System offers a wide range of chip and decal security but is revealed with a special device. (CIS) software, SMART delivers a complete features and for customers who order the Because it can be added to plastic injection- currency tracking and authentication V-Series with four or more color shots, the molded chip materials, it provides mass solution. GPI offers the necessary chips also come standard with an infra-red chip validation for chips placed in stacks components for SMART RFID currency security feature exclusive to GPI. or racks. SecuriFilm, which is compatible — both antennas and readers. SMART is Security is the key to GPI’s products with RFID, is used on a chip’s decal and available in all of its currency brands. with the extensive range of currency security features a semi-transparent hologram- Chips aside, GPI will also feature its features providing customers expanded like effect. SecuriFilm can be easily full graphic EGC layouts which will be options in protecting their currency. These authenticated at the table and includes an covering its tables and on display. The include overt security features that are easily additional covert security feature enabling synthetic layouts offer sharp and vibrant authenticated through visual inspection and a higher level of validation. color graphics that can duplicate almost any covert security features that are invisible and G2E Asia customers will be able to photo or sophisticated design with exacting can only be authenticated with special tools. see firsthand demonstrations of GPI’s precision. They are ideal for all game types, Currency security features can be layered to exclusive SMART RFID offerings. SMART provide an exceptional playing surface and help provide optimum currency protection. offers the latest advancement in casino are a durable and economical choice that GPI’s three-in-one UV is a taggant that currency RFID technology and when used provide extraordinary design flexibility.

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May 2017 inside asian gaming 83 G2E ASIA 2017 Solutions Showcase

Slots spectacular

Global gaming giant International Gaming Technology (IGT) will highlight its impressive array of innovative and Asian-themed slots at G2E Asia in 2017.

GT’s stand at G2E Asia this year, booth 601, will host a range of gaming products that reflect the company’s G2E Asia 2017 Itheme, “Innovations for Asia.” Leading the way will be a number of IGT’s progressive slot machine themes, including Rong Hua Fu Gui on the CrystalDual cabinet. The four-level progressive video slot game was designed for the Paltronic Link and includes a mystery bonus trigger that unlocks the game’s Pick Bonus. Rong Hua Fu Gui features the Rapid Touch feature for progressive picks and leverages a proven math model. IGT will also spotlight the multi-level progressive title Cai Yun Heng Tong. A follow-up theme to the highly successful game Gong Xi Fa Cai and sister-game to Wan Shi Ru Yi, Cai Yun Heng Tong offers players a high-volatility four-level progressive. The game’s multiplier symbols generate coins that can trigger the MLP bonus or place random wild symbols anywhere on reels two, three, four and five. For those yet to experience IGT’s incredible 4D slot machine technology, the innovative SPHINX 4D game on the CrystalCurve TRUE 4D cabinet will make its Asia debut at the show and is a must-see. The game offers a multi-sensory experience that enhances its glasses-free 3D technology with mid-air haptic and gesture-based technologies that enable players to touch and manipulate 3D objects emerging from the screen.

84 inside asian gaming May 2017 Solutions Showcase G2E ASIA 2017

G2E Asia will be the world debut for IGT’s TRUE 3D title Phoenix Rising 3D. Housed on the AXXIS 3D cabinet, Phoenix Rising 3D features bold, fiery graphics and offers players an immersive glasses-free 3D gaming experience. The game leverages the Surrounding Wilds feature to create frequent and entertaining wins. Players can engage the game’s Free Games Bonus that is triggered by three or more 3D Fireball symbols, and the game’s Wheel Progressive Playoff Bonus that is triggered with three 3D Wheel Symbols. As a leading systems provider in Asia, IGT will showcase its globally successful casino management systems solutions such as IGT Advantage, along with a series of other systems solutions and bonuses that Asia-based operators can leverage to maximize the regional popularity of table games and the universal relevance of mobile devices. IGT will spotlight its Table Manager solution, an automated system for rating and rewarding players and its Lucky Chip Bonus, a bonus module that can drive trial play and creates surprise jackpots for table game players. The award-winning Cardless Connect mobile solution will also be demonstrated at IGT’s stand. Cardless Connect can be embedded into a casino’s mobile app, enabling players to initiate patron loyalty sessions using their mobile devices, and seamlessly transfer funds from their existing player accounts – eliminating the need for physical loyalty club cards and TITO tickets. G2E Asia attendees can experience IGT’s award-winning PlaySpot mobile software solution. Recently named “Casino Product of the Year” at the Global Gaming Awards, PlaySpot enables players to place wagers on live roulette and baccarat games that are taking place on the casino floor, from their mobile devices, from any location within the casino. Players can enjoy live feeds from active tables on the casino floor, and can set table play criteria and be notified when a table meets the conditions and is “hot.” To experience these and more IGT “Innovations for Asia” visit stand 601 at G2E Asia. For more information visit igt.com.

May 2017 inside asian gaming 85 G2E ASIA 2017 Solutions Showcase

Chip me up

Abbiati Casino Equipment will be bringing its impressive new array of high-security casino chips and plaques to G2E Asia in 2017.

bbiati Casino Equipment, a leading patented invisible laser technology (Class provider of casino currency products 1A). Abbiati’s wheels can connect to and and table game equipment around “G2E Asia provides us with run winning number displays, online theA world, will showcase its new line of a unique platform to introduce gaming terminals and management chips and plaques enhanced with innovative systems. Due to their open protocol, security features at G2E Asia this year. our innovative products to the Abbiati’s American roulette wheels have One of the key priorities of the Italian Asian operators, so we look become the preferred choice for many company has always been constant research forward to attending another leading online gaming operators. and development of new technologies “Due to the expansion of the online that help to prevent casino currency successful show.” gaming operations in Asia we believe our counterfeiting. American roulette laser wheel will attract a “Our company has an increasing significant number of show visitors,” said focus in Asia and we have been working Mr Abbiati. hard to meet the demanding needs of the Finally, being the exclusive worldwide Asian customers who require reliable and innovative chips line will include Abbiati’s distributor for Modiano, Abbiati will state-of-the-art products”, said Giovanni patented “Tie” chips as well as the new line present a complete range of 100% plastic Abbiati, Founder and President of Abbiati of chips called “il Gettone”. and paper plastic coated playing cards, Casino Equipment. All of the company’s currency products boasting new high security features such “Asia is an extremely vibrant market for are available with numerous security features as tracking mechanisms and cards with us and is strategically very important as our such as 13.56 MHz PJM RFID, 8-color UV barcodes specifically designed to meet the business continues to expand and develop, pigments, 3-in-1 UV security, Laser Tracer requirements of online gaming operators. which is also thanks to the successful technology, Optical Variable Ink and high In the last few years, Abbiati has been collaborations with partners based locally security holograms to name but a few. selected by many Asian operators as their in Asia. This year the Italian company will be supplier of casino currency products thanks “G2E Asia provides us with a unique exhibiting its new model of baccarat table to the company’s ability to supply its platform to introduce our innovative products specifically designed for the Asian market, customers with unique, secure and stylish to the Asian operators, so we look forward to which features a unique high-end design products. With the new line of chips, plaques attending another successful show.” with elegant and refined finishing. and jetons, Abbiati Casino Equipment seeks Abbiati will present its range of plaques This will be showcased alongside the to establish itself once again as the leading with an impressive collection of new GLI-25 certified American roulette wheel, supplier of incomparable security casino patterns, designs and materials while its which incorporates the upgraded Abbiati currency products.

86 inside asian gaming May 2017 Solutions Showcase G2E ASIA 2017

May 2017 inside asian gaming 87 G2E ASIA 2017 Solutions Showcase

Betsoft recalls iconic characters at G2E Asia

Betsoft will show off its incredible graphics and engrossing in-game story lines at G2E Asia via its Slots3 collection.

etsoft Gaming, a Tier One developer and provider of complete system online gaming software, will Bbe exhibiting the newest games in its Slots3 collection at G2E Asia this year, highlighted by The Slotfather: Part II, Fa-Fa Twins and The Angler. The Slotfather: Part II is the long-awaited sequel to the original smash hit The Slotfather and brings back the iconic characters of the seedy underworld. It features an exciting bonus round where players can claim their own cut of the Slotfather’s ill-won earnings. Also to be shown is the gorgeous, anime- styled Fa-Fa Twins, which pays 243 ways and is dominated by a special functionality where reels will synchronize with adjacent reels to provide many opportunities for winning. The Angler, the newest addition to the Slots3 family, is centered around a burly fisherman and a unique fishing mini game, where new download client, as we believe it will animated feature films. Starting in 2012, players can fish up bonus credits. create a better experience for all players of Betsoft initiated a concentrated push into Betsoft’s new Vault download client will Betsoft games. Our stand, 1809, at G2E the mobile gaming sector, with many of their also be showcased at G2E Asia. Vault will Asia 2017 will be exhibiting the best games popular Slots3 games becoming available as enable players to download Betsoft games available in the market today, alongside the ToGo collection. directly to their desktop computer rather Vault, and we are proud to offer these Betsoft began releasing the highly than accessing them via a browser, creating creations to the show’s attendees as a taste anticipated Slots3 Interactive line of games near instant load times. of what Betsoft has to offer.” in mid-2013, representing the future of online “We always look forward to attending Betsoft Gaming is broadly known as the slots gaming. Betsoft Gaming’s extensive G2E Asia,” said Betsoft’s VP of Sales and innovator and leader of true 3D cinematic portfolio of clients includes some of the top Marketing, Mark McKeown. “This is an gaming. With a game library of over 180 gaming operations in the industry. unmatched opportunity to let our Slots3 games including the iconic Slots3 series, For more information, please contact product shine for the show’s attendees. Betsoft Gaming has met and exceeded the Betsoft Gaming’s sales team at sales@ “We are pleased to introduce Vault, our quality found in console video games and betsoft.com or visit www.betsoft.com.

88 inside asian gaming May 2017 Solutions Showcase G2E ASIA 2017

May 2017 inside asian gaming 89 G2E ASIA 2017 Solutions Showcase

A for Asian innovation

Australian slot machine manufacturer Ainsworth will showcase a selection of its innovative Asian- focused slot machines in Macau.

o show its solid commitment to delivering products designed for the Asian market, Ainsworth will Tshowcase a range of premium titles at G2E Asia. These will be highlighted by spectacular graphics and are packed with features players enjoy such as free games, stacked wilds and jackpots. Firing up the stage at G2E Asia is a range of link progressives and SAP packages shown on the A600 cabinet. Titles will include Lucky 8 Treasures, Fire Power Series, Oriental Express, Grand Fortune, Double Shot Gold, Quad Shot and Lucky Ways. This range further demonstrates the company’s commitment to a long-term pipeline of successful content for the region. Ainsworth recently introduced its new A600 cabinet line, incorporating the company’s deep and long-standing knowledge into an exciting new product for its casino partners. The A600 takes existing Ainsworth technology to the next level with larger game screens, dynamic lighting effects and a state-of-the-art LCD touchscreen button deck. While being focused on supreme engineering and best-in-class reliability, the A600 includes the high-end graphics, high- resolution screens and interactive button decks that are expected by today’s casino operators and slots players. Two 24-inch Ainsworth will also introduce the ultimate flexibility for the operator, Ainsworth screens and game-driven lighting effects stunning A640 cabinet to the Asian market brings an unbeatable combination for enable players to experience Ainsworth’s with Fortune Rabbit, Fortune Rhino and success. For more information, please world-renowned games in an entirely new Rumble Bison. contact Keith Jeffery on +61 2 9739 8000 or way on the A600. With unique player presentation and visit www.agtslots.com.au.

90 inside asian gaming May 2017 Solutions Showcase G2E ASIA 2017

May 2017 inside asian gaming 91 G2E ASIA 2017 Solutions Showcase

Platform to success

TGG’s new HIRO gaming platform sets out to make life easier for both land-based and online operators while providing a huge range of game options to choose from.

ong Kong gaming technology company TGG will be at G2E Asia this year promoting their impressive newH turnkey solution, HIRO. Aimed at bridging the gap between game designers, casino operators and global real-money gaming players in both the land based and online gaming sectors, HIRO is an omni-channel open gaming platform that provides game developers and gaming operators with significant freedom and flexibility to build games that meet global regulation requirements at only a fraction of time and cost. As TGG’s CEO and co-founder Raymond Chan explains, “HIRO is an open gaming platform created by TGG with a standard API made publicly available by TGG that allows game developers to build electronic games for global land-based and online casino gaming markets. Technically there is no limitation to how the games are built upon, using C++, FLASH and HTML5 without difficulty. “The API standard is also transparent “By doing that, casino operators are now “More importantly, HIRO Platform to casino operators for a full understanding able to have direct influence on the product is built upon GLI-11 and GLI-19 technical of how the games are designed and creations with the game designers. This is standards that are recognized by 475 gaming constructed at the framework level, allowing a significant win-win result for the industry jurisdictions worldwide, meaning games the operators to learn about the possibility because for the first time we are narrowing built on the HIRO platform are able to pass of customization of each game listed on the the distance between game creators and local regulations with less effort. HIRO platform. operators in all stages of game development,

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“The considerable size of the game content library on the HIRO platform will allow casino operators to pick and deploy their local favorites with minimal engineering effort.”

without a SAS connection to any casino management system,” Chan explains. “Land-based casinos will need absolutely no further investment on their current IT infrastructure to install the machines and will immediately have access to hundreds of new games at the touch of a finger via TGG’s ‘Marketplace’ concept. “This concept is a natural result of a successful open platform that attracts game developers around the world to build their gaming library. The considerable size of the game content library on the HIRO platform will allow casino operators to pick and deploy their local favorites with minimal engineering effort.” Both the TGG Marketplace and the HIRO platform are now available in global gaming markets such as Mexico and Serbia with Asian gaming hubs Macau, the Philippines, Korea and Cambodia expected in the future. TGG is also planning to launch its first overseas R&D lab this year in Tokyo to better rather than waiting until the final product is market, as estimated in a recent Morgan support its gaming partners in Japan. created and available to the market.” Stanley study. HIRO also provides operators “We are excited to see Japanese creations The fact that the HIRO platform operates with a huge amount of flexibility in terms of joining our HIRO platform, which is giving a in both the land-based and online worlds is a game selection. whole new dimension to how slot games can huge advantage, providing operators access “HIRO is built in a traditional ‘console’ be presented,” Chan says. “Those games will to both the US$40 billion global online architecture, which allows the game to be available soon to the TGG Marketplace market and the US$391 billion land-based run as a stand-alone machine with or via our global distribution network.”

May 2017 inside asian gaming 93 Events Calendar

10|12 May 2017 4|6 July 2017 Japan Gaming Congress World Gaming Executive Summit 2017 Tokyo, Japan Barcelona, Spain A three day educational forum that offers clear, practical The World Gaming Executive Summit 2017 will bring together insight and understanding into the casino legislation in over 80 of the best and brightest speakers in the gaming Japan. Held at the Grand Hyatt in Roppongi, the congress is industry, as they share their expertise and knowledge of future expected to draw strong participation from both domestic and developments with you. Attendees will benefit from targeted international firms interested in the development of integrated content for the offline and online gambling communities, with resorts in Japan. tracked sessions including focused case studies and panels. www.japangamingcongress.com www.terrapinn.com/conference/world-gaming-executive- summit/index.stm 16|18 May 2017 Global Gaming Expo Asia 15|17 August 2017 The Venetian, Macau Australasian Gaming Expo 2017 Sydney, Australia G2E Asia is the premier Asian trade event and the largest regional sourcing platform for global gaming and Wherever you are in the world, jump on over to the entertainment products. G2E Asia services suppliers by Australasian Gaming Expo (AGE) 2017, in Sydney’s all new enabling them to showcase new products, meet qualified International Convention Centre. Experience all the latest, buyers and establish new contacts. Annually, more than 95% of the greatest and glimpse the future at one of the world’s top Asian casino operators are at the show. Held in Macau, the biggest gaming and equipment expos, then take in some of heart of Asian gaming and one of the fastest growing gaming “Australia” whilst staying in the internationally renowned markets in the world, G2E Asia is the hub where professionals harbor city of Sydney. network and conduct business. www.austgamingexpo.com www.g2easia.com 3|5 October 2017 30 May|1 June 2017 Global Gaming Expo 2017 IAGA International Gaming Summit Las Vegas, USA New York, USA Global Gaming Expo (G2E) is the international gaming trade As a premier event that brings together leaders from all global show and conference “by the industry and for the industry.” gaming sectors, the IAGA International Gaming Summit will G2E is the best place for anyone working in gaming to see the provide operators, suppliers, attorneys, investors, bankers, latest products, learn the trends and network with the Who’s regulators and other advisor delegates with an unparalleled Who. It offers a 360-degree view of the industry from slots and opportunity to meet and discuss the top issues and challenges table games to iGaming and food, beverage and hospitality. facing gaming today. Highly regarded as the top educational www.globalgamingexpo.com conference for gaming industry executives, the International Gaming Summit is an excellent opportunity to expand the critical knowledge, tools and best practices you need to be successful in the dynamic global gaming industry. www.theiaga.org

www.asgam.com 94 inside asian gaming May 2017