July 2013 • MOP 30 • ISSN 2070-7681
In Focus: Mass Market Macau Ainsworth On the Move USPC Opening Doors Japan Edges Closer Back With a Purpose Poised for Legalization WMS Retools for Asia
COVER STORY CONTENTS IN FOCUS 6 Crown’s Jewel Smooth Sailing 16 Macau’s mass-market gaming James Packer appears to have won his battle to develop revenue continues to comfortably a luxury resort in Sydney the likes of which the gaming outstrip that of the dominant but industry Down Under has never seen. Not that the much lower-margin VIP sector. outcome was ever in doubt. But what happens next is Mass revenue, which accounted for more difficult to handicap. 29% of total revenue in June, was up 31% year on year.
Edging Closer 20 Japan’s Liberal Democratic Party Prime Minister Abe has indicated he is open to the idea of casino resorts as part of his strategy for driving economic growth. According to a new report by Morgan Stanley’s Praveen Choudhary and Mia Nagasaka, the long-awaited process of legalization could begin in the fourth quarter of this year. FEATURES Back With a Purpose 24 Never a company to take a back seat when it comes to innovation, WMS Gaming is mapping a strategy for success in Asia based on a dynamic new cabinet and a portfolio packed with new regionally specific games.
Security in Motion TECH TALK 26 From storage to pit to disposal, protecting Custom Choice and tracking cards and dice in transit is 34 Abbiati is leading its expansion what Malaysia-based Mega Fortris does, in Asia with premium chips and casinos across Asia rely on it to do this and plaques that allow for high as well as it can be done. levels of personalization. The Turin, Italy-based manufacturer Commitment Renewed is enjoying strong sales on 28 Aristocrat came to G2E the continent, winning orders from the likes of SJM, The Asia having just secured Venetian and Solaire. almost half the slot floor at Manila’s new Solaire Happy Customers Resort & Casino. It was a 38 At face value, a player’s coup good for almost 600 club card does not machines, and it would really seem to be all that prove instrumental in much—a plastic card driving a solid first half with a magnetic stripe. for the Australia-based But customer relationship slot giant. management analytics are helping casinos boost profits by attracting more BRIEFS guests and keeping them at the resort longer. 42 Regional Briefs Cover illustration by Rui Rasquinho 44 International Briefs EDITORIAL
Of History and the IVS
his month is the 10th anniversary of the Chinese government’s Individual Visit Scheme, Tand little Macau, flush with mainland cash, debt-free and fully employed, has every reason to celebrate. Gaming revenue hit MOP171.4 billion through the first half of this year and is on track to exceed last year’s total of MOP304.13 billion by 15%. That’s an increase of 5.7 billion US dollars, or just about $500 million shy of what all the casinos on the Las Vegas Strip made in 2012 combined. If it comes off, which is likely given Macau’s history of strong second-half performances, the market will generate somewhere between $43 billion and $44 billion— not counting spending on hotel rooms, restaurants, shops and shows. To get an idea of the impact of all that money let’s look at Las Vegas, where leisure and hospitality, the city’s principal industries, account for about 20% of gross domestic product and 29% of total employment. If we go back to 2002, the year before the Individual Visit Publisher Scheme, Macau’s gross domestic product stood at MOP56 billion, and gaming accounted Kareem Jalal for about 33%. Ten years later, gaming is generating an astounding 87% of the city’s total economic activity, whose value hit MOP348 billion last year. That’s an average growth rate Director João Costeira Varela of 18% a year. The impact on employment over the last decade has been no less profound. Gaming Editor directly employs only about 16% of Macau’s active labor pool. But when we factor in hotel James Rutherford and restaurant and related service workers—businesses directly dependent on tourism and whose employment rolls have grown 125% since the IVS was instituted—and add in Operations Manager tourist-facing sectors the government classifies as “recreational” and “cultural,” the industry is Muji Vong supporting in one way or another probably close to 40% of the working population. In terms of public revenue, gaming has grown to the point where it now generates Contributors 76% of the government’s annual tax haul. Its direct contribution to the treasury is about 20 John Grochowski, Tom Hall times that of its counterparts in Las Vegas and all the rest of Nevada. Of course, Nevada’s James J. Hodl, Richard Meyer gaming tax rate is only 6.75%, the lowest in the US, one of the lowest in the world. Macau’s Graphic Designer effective 39% is one of the highest. Arguably, better-balanced, too. For while Nevada’s Brenda Chao recession-battered public finances struggle to support the state’s obligations and maintain basic services, Macau and its casino concessionaires tend to think more in terms of the Photography benefits to be derived from public-private partnership. The result, five years on from the Ike, Alice Kok, James Leong, worst global downturn in a century, is a government with zero outstanding debt, with 10 Wong Kei Cheong straight years of budget surpluses, with fiscal reserves expected this year to reach 59% of total economic output, the equivalent of US$29 billion. Inside Asian Gaming It’s been a remarkable decade by whatever measurable criteria we choose—population is published by growth, jobs and median wage growth, visitor spending, retail sales, property values, capital Must Read Publications Ltd investment residential construction, home ownership and domestic savings rates, enrollment 5A FIT Center in higher education, the volume of student grants and loans, even life expectancy. The Avenida Comercial de Macau decision to open the casino market to competition, transformative as it has been, could not Macau have achieved all this, or surely not in just 10 years, had China’s millions not been traveling to Tel: (853) 8294 6755 Macau on a regular basis as individuals, the economic miracle of their country in tow. The IVS viewed in this light really is Beijing at its big-picture best. Taiwan is the end game For subscription enquiries, please email here. It’s the thing that secures the central government’s commitment to the prosperity [email protected] of Macau and Hong Kong. The IVS was conceived in the context of the tripartite Closer Economic Partnership Agreement whose purpose has been to bind the economies of the For advertising enquiries, two repatriated territories to the motherland. Gaming had very little to do with it. The goal is please email integration, and the program has been steadily expanded so that it now covers 49 cities in 17 [email protected] mainland provinces, encompassing an eligible population 4/5ths as large as that of the United or call: (853) 6680 9419 States. In 2002, mainland Chinese accounted for 37% of visitors to Macau. They’re now 60% and counting. And more than 40% come on the IVS. The SARS epidemic in 2002-2003 may www.asgam.com have hastened its implementation, but the backdrop is social and cultural and geopolitical. The special economic status enjoyed by the border cities of Shenzhen and Zhuhai, the Inside Asian Gaming massive investment in the development of Hengqin, the Hong Kong-Zhuhai-Macau bridge, is an official media partner of: the new rail line between Beijing and Guangzhou, the longest high-speed link in the world, its extension through Zhuhai to the Border Gate, the expansion of the immigration facilities there—they’re all part of this. China is being knit together. Rewoven is more like it. Macau is being absorbed, if you want to call it that. It is inevitable. Fortunately, it’s been tremendously beneficial as well.
James Rutherford http://www.gamingstandards.com We crave your feedback. Please email your comments to [email protected] 4 INSIDE ASIAN GAMING | July 2013
COVER STORY
Crown’s Jewel James Packer appears to have won his battle to develop a luxury resort in Sydney the likes of which Australia’s gaming industry has never seen. Not that the outcome was ever in doubt. What happens next is more difficult to handicap
ustralia’s long tradition of one market-one casino is history, swept away on a rising tide of Chinese wealth. A James Packer’s A$1.5 billion Crown Sydney Hotel Resort doesn’t yet have a development deal with New South Wales, doesn’t have legislative or planning approval, doesn’t have its all-important gaming license, but it’s looking like a go, barring a massive public backlash. Its swirling 60-story hotel tower, the tallest structure in the city at a planned 250 meters, is already penciled onto the skyline, and that was true for all intents and purposes at least as far back as last August, when Mr Packer’s Melbourne-based Crown Limited locked itself in as the exclusive resort developer at Barangaroo, a waterfront lot ideally situated on the edge of the Central Business District and the last significant buildable acreage on Darling Harbour. There has been an air of inevitability surrounding Crown Sydney Rendering of Crown Sydney from the start. It had “done deal slapped all over it,” groused Richard Ackland, a columnist for the Sydney Morning Herald, writing last waned and it has lost its No. 1 status across a number of measures. October. It has been outperformed and outspent by competitor destinations No question. And deservedly so, perhaps, as it directly addresses in Australia and the Asia-Pacific region over many years and its mounting public- and private-sector concerns that New South Wales competitive position has been eroded.” and its principal asset, Sydney, are missing out big-time on the Asia The state “requires growth not only in visitor numbers but also in tourism boom. visitor spend,” the report said. This was detailed in stark terms in a report issued in June 2012 by In other words, it needs to become more like its sister state the state’s Visitor Economy Taskforce: of Victoria, whose share of international arrivals has increased as “NSW needs to confront the fact that its destination appeal has New South Wales’ has fallen. Victoria also happens to be home
As far back as last August, Mr Packer’s Melbourne-based Crown Limited locked itself in as the exclusive resort developer at Barangaroo, a waterfront lot ideally situated on the edge of the Central Business District and the last significant buildable acreage on Darling Harbour.
6 INSIDE ASIAN GAMING | July 2013 COVER STORY
Trend of Top 5 Outbound Destinations from China
18,000
16,000
14,000
12,000
10,000
8,000
6,000 Outbound Travellers (000s) Outbound Travellers 4,000
2,000
0 Hong Kong Macau South Korea Taiwan Thailand Australia 2001 2012 Note: 2012 is a forecast value
Source: Tourism Economics (Tourism Decision Metrics) to Crown’s flagship resort casino, Crown Melbourne, the most popular attraction in Australia, according to figures compiled Australia Visitor Arrivals from China and Hong Kong by Euromonitor International, and this is significant in light of Arrivals % Change % Change Market (Year End (Year End (Three months to the “high-spending, particularly high-yield international visitors, March 2013) March 2013) March 2013) predominantly from China” which the Taskforce identified as China 659,400 17.5% 16.6% NSW’s “key target market”. Actually, casinos are the country’s second- and third-most Hong Kong 183,400 7.8% 14.5% popular attractions, too, if Euromonitor’s numbers are to be believed. Crown rival Echo Entertainment’s Jupiters Gold Coast in the state Average Annual Growth in TIEVa for Australia’s Top 10 of Queensland booked 10.6 million visits in 2010. Echo’s monopoly Inbound Markets by Value, 2001-2011 casino in New South Wales, The Star, which sits on a cove of Darling Harbour within sight of Barangaroo, had 9 million. (The Sydney Opera House was back there somewhere at a mere 7 million.) Japan But Sydney has infrastructure problems. Mainly, it needs more United States of America quality hotel rooms. The city is running at better than 86% occupancy (includes Hawaii) (“very high” by world standards, the Taskforce’s report notes), and average rates exceed $200 a night. It’s estimated that between United Kingdom 5,000 and 8,900 more rooms will be needed by 2020 to meet visitor demand. Germany It’s not a problem that is Sydney’s alone. The last decade has seen Australia drop from the world’s No. 3 destination for luxury travelers Total (%) to No. 7, according to the Hurun Report, a Shanghai-based magazine b Singapore that tracks trends among China’s burgeoning wealth class. AAGR “My overall take is that I don’t think the Australian tourist industry New Zealand in general has put much effort into the luxury consumer,” said Hurun’s
Editor Rupert Hoogewerf in a recent interview with Australia’s Fairfax South Korea Media. “Ten years ago it was the preferred destination for Chinese tourists, full stop. But what’s happened, as other countries have come Malaysia up, Australia has dropped down the list for luxury travel. I have not seen any events or media (advertising and marketing) from Australia India that is targeting the luxury consumer. Basically they have coasted very nicely. It may not mean things are not happening, but they are China (excludes SARs and Taiwan Province) on such a low-key profile compared to Singapore, which is all over China and targeting the top-end spenders.” -10.0 -5.0 0.0 5.0 10.0 15.0 20.0 And there is this from a June 2012 report by Allen Consulting Source: Australian Bureau of Statistics, Overseas Arrivals and Departures Group, which Crown hired to help the company make its case for a Total Inbound Economic Value, (or tourism exports), Crown Sydney with the state: b Average Annual Growth Rate
July 2013 | INSIDE ASIAN GAMING 7 COVER STORY
“Most Asian cities have the added advantage of being lower cost In a June letter to the government Mr economies where international tourist dollars stretch further. As it is Packer said, “The Star has failed to very difficult for Sydney to compete in terms of price, it is essential for Sydney to differentiate itself by offering quality tourist attractions capitalize on the opportunities provided by and tourism products.” the growth in Chinese tourism, the massive It is an easy sell, all things considered, the idea that the city needs Asian high-roller market and Sydney’s a better and more ably managed mousetrap than The Star, and it’s ultimately what won the day for Crown. natural attraction as a superior destination As Mr Packer wrote to the NSW Cabinet in June, “The Star has for high-end tourists and VIP players.” failed to capitalize on the opportunities provided by the growth in Chinese tourism, the massive Asian high-roller market and Sydney’s natural attraction as a superior destination for high-end tourists and VIP players.” The case for Mr Packer as the man to turn the situation around was supplied by a blue-ribbon committee appointed last year by Premier Barry O’Farrell, who has made no secret of his belief that the casino tycoon would be good for Sydney and for New South Wales. Heading this committee was well-known banker David Murray, who used to manage the Australian government’s pension funds. Its advisors included a retired judge of New South Wales’ Court of Appeals. Meeting behind closed doors they weighed Crown Sydney’s merits against the monopoly status quo. Echo, which holds license exclusivity in the state through November 2019, didn’t go quietly but shook things up with a $1.1 billion counter-proposal, which it amended at the 11th hour with an interesting but unwelcome offer not only to share the market but to throw a pedestrian bridge across the harbor to link the rival resorts. The panel took all of eight working days from formal submissions to get its ducks in a row. The Cabinet took even less time to accept its recommendation and on 4th July approved Crown Sydney to move to the final stage of the process
“Most Asian cities have the added advantage of being lower cost economies where international tourist dollars stretch further. As it is very difficult for Sydney to compete in terms of price, it is essential for Sydney to differentiate itself by offering quality tourist attractions and tourism products.”
8 INSIDE ASIAN GAMING | July 2013
COVER STORY
competing for business. There are some 515 venues with machines games operating in Victoria, where total devices are capped at 30,000, versus more than 3,000 locales in New South Wales, where up to 99,000 devices are allowed. Crown Melbourne has 60% more table games than The Star and therefore more capacity to serve high rollers. VIP accounts for about 30% of Melbourne’s total gaming revenue. It’s around 19% at The Star.
“The decisive factor was the opportunity to introduce competition into the market. Sydney was falling short of its potential share of the growing international gaming and tourism market and has underperformed “If you look at markets that have been compared with Melbourne.” liberalized, the liberalization process tends — New South Wales Premier Barry O’Farrell to grow markets over restricted-supply markets, and Sydney is restricted in terms state law requires of so-called “unsolicited projects,” which means of table supply.” negotiating a binding offer with the government and obtaining the aforementioned approvals. It will cost Crown an up-front payment of — David Green, Newpage Consulting $100 million to get the ball rolling. It also means Sydneysiders finally are going to get their say, and Critics, however, point out that if the government was serious that could prove lively. about competition it would have opened the market to outside For Mr Ackland at the Herald, “Harnessing economic growth to bidders, as Macau and Singapore did, or at least hold a tender for gambling is such a hackneyed, failure-ridden experiment that it’s a the second license. “What Sydney gets from this chronically flawed wonder it’s being seriously entertained in this city.” process won’t be what David Murray’s committee outlined,” wrote A grassroots petition is being circulated online opposing Crown Michael Pascoe in Business Day. “All that really happened was Echo’s Sydney, abetted by the likes of Alex Greenwich, an Independent Star monopoly being bumped into a ditch.” for Sydney in the NSW Legislative Assembly. “Public submissions But that hasn’t entirely been settled either, according to David were not sought, there was no community debate and massive Green, a former regulator in South Australia who heads the gaming community opposition was ignored,” he says. “I asked for terms of practice at Newpage Consulting, based in Macau. “The New South reference and they were not forthcoming with that. The government Wales auditor-general has already said tender rules do apply. The AG has rushed every step of this process and they have changed the reports to [the Legislative Assembly] directly. So it’s a very important rules constantly.” position. And the government will be careful not to appear to buck Greens MP John Kaye has been rather more blunt, calling it a it. I think it’s the reason why the advisory panel was set up, to see “sham and the outcome a disgrace”. whether the government can entertain an unsolicited bid without Defending the government’s decision, Mr O’Farrell said, “The going to tender.” decisive factor was the opportunity to introduce competition into Supporters, on the other hand, point to the fact that no one else the market. … Sydney was falling short of its potential share of is stumping up $1.5 billion for tourism development in Australia’s the growing international gaming and tourism market and has largest metropolis, which has seen only one new five-star hotel since underperformed compared with Melbourne.” the turn of the century (Echo’s The Darling at The Star, ironically He has an argument. In the decade up to 2011, Victoria grew its enough). That’s why Patricia Forsythe, executive director of the share of Australia’s total inbound visitation by 8% while New South Sydney Business Chamber, calls Crown’s approval a “clear winner” Wales’ fell by 7%. The gaming comparison isn’t entirely fair, though. for the city, and Ken Morrison, who heads the Tourism & Transport Crown Melbourne has three times more hotel rooms than The Star Forum, a national private-sector think tank, calls it “great news”. and 1,000 more machine games and far fewer pub and club slots “What we need in this city is a new tourism magnet,” he said, and
10 INSIDE ASIAN GAMING | July 2013 COVER STORY
competition.” Echo Chairman John O’Neill said only that the company is “exploring other initiatives”. But it’s reported that Malaysian conglomerate Genting Group recently bought another chunk of Echo’s swooning stock to lift their investment in the embattled operator, which is also under a concerted Crown assault in Queensland, to more than 7%, and they’ve applied to regulatory authorities in NSW for permission to increase that above 10%. “I’m sure there is another angle they are pursuing,” said fund manager and Echo shareholder Paul Xiradis. “They are a world-class operator.” Certainly they’re a resort giant every bit Crown’s peer, with In its report the Murray panel said, holdings that include Singapore’s Resorts World Sentosa, the mega- “It is likely that Echo would be motivated slot house at Resorts World New York City and a sizable chunk of land to undertake at least some on the Las Vegas Strip where they’re planning a casino with several billions of dollars’ worth of hotels and other attractions. of its published strategic investment plans As one prominent local investor put it, “This isn’t the end of the in response to the introduction game.” of competition.” Echo Chairman John As for Crown Sydney, what the corporate literature promises at Barangaroo is “a landmark building instantly recognizable around O’Neill said only that the company the world” with 350 rooms better than Forbes 5-star at 55-70 square is “exploring other initiatives”. meters standard and suites and villas of 100-500 square meters. There will also be 80 luxury apartments for sale. Not much detail has Crown’s “will draw in thousands of new international visitors.” been released beyond that. There will be meeting and exhibition Mr Pascoe is among the many who agree with this, at least in space, some of it outdoors. There will be “luxury sun decks” and no principle. But a proper discussion of it has been short-circuited, in doubt something suitably spectacular 250 meters up on the roof. his view. “What Crown skillfully scuttled was the opportunity for The public spaces will be targeted at the well-heeled with celebrity a genuine review of what New South Wales’ optimum gambling chef restaurants, bars and lounges, high-end retail, a state-of-the-art industry might be. The state is awash with opportunities for mugs spa and an infinity pool. Construction is expected to take three and a to lose money—close to world’s worst practice when it comes to half years once all the approvals have been obtained and the gaming pokies—without a serious appraisal of how it all fits together.” license secured. Crown wants to open the hotel by 2018, the casino the following year when Echo’s monopoly expires. Barangaroo ‘This Isn’t the End’ should be fully redeveloped at that point, and Crown expects it will Or has that conversation merely been delayed? be welcoming an average of 33,000 visitors a day. In its report, the Murray committee said, “It is likely that Echo There is never mention of a “casino,” only a “VIP gaming facility,” a would be motivated to undertake at least some of its published euphemism Mr O’Farrell and the government have readily embraced. strategic investment plans in response to the introduction of It will occupy at most 20% of total gross floor area or 20,000 square
Crown Melbourne
July 2013 | INSIDE ASIAN GAMING 11 COVER STORY
meters, whichever is less—a considerable space, considering that Mr Xiradis called it a “game changer” in an interview in The slots are not allowed and there will be only 120 table games (“initially,” Australian. “To me it doesn’t make commercial sense. I am suspicious Crown says) together with their electronic multi-terminal variants. (No of how the thing will work.” word yet on how these will be counted as part of the whole.) Main A fund manager who declined to be named said, “Thirty dollars a floor table revenue will be taxed at 29%, 10% on revenue derived from hand is not VIP. That is a full-blown casino.” junket play, same as at The Star. This includes Goods and Services Tax Working from this expansive definition, Mr Packer told the and a community benefit levy of 2%. Crown wants the GST rebated on government he is confident Crown Sydney will “almost treble the international play and domestic play outside New South Wales. volume of VIP business coming to Sydney from Asia, and in particular Plans so far call for 10 private gambling rooms, although play China”—leveraging the value of Crown’s 33% joint venture stake throughout will be on the basis of membership, “which aims to in Macau operator Melco Crown Entertainment together with the attract high-spend patrons,” Crown says, “similar to that operating in company’s “extensive” pan-Asia sales network and its success at the VIP gaming areas at Crown Melbourne.” This is expected to limit marketing to the high end at Crown Melbourne. participation by locals to no more than 5%. Mark Wilson at Deutsche Bank says Crown will need $23 billion in But how the company and the state are defining “VIP” has annual wagers in Sydney to achieve a return he would deem “adequate”. observers somewhat confused. Crown’s submission to the That shouldn’t be too difficult, given the $24.3 billion the company government makes provision for “low-limit” tables priced at booked in VIP turnover at Melbourne in the six months ended in minimums that may vary from A$30 for baccarat to $25 for roulette December. Crown won over the government in part by persuading it to $20 for blackjack to the lower of wherever minimum bets may fall that Sydney was being “short-changed” on tax revenue on VIP compared “from time to time” on the same games in the VIP areas at Melbourne. with Melbourne, where the company generates twice as much from the Macquarie Securities analyst Andrew Levy describes this as the “low overseas trade as The Star and half again as much from domestic VIP. The side of expectations”. By comparison, minimums at Macau’s public Star boosted its turnover in the sector by 20% in the six months through tables have averaged something north of A$230 over the last 12 December, but the total was only about half of Melbourne’s. Normalized months, according to Deutsche Bank research. Crown Sydney’s for hold, The Star kept $72 million of it. Melbourne realized $327 million definition of VIP, Mr Levy wrote in a note to investors, “does leave in VIP revenue over the same period, but normalization played a more scope for higher-than-expected levels of cannibalisation of The Star’s significant role, its win rate having dipped to 1.23%, well below the existing customer base.” expected range of 1.35%.
Buddha and Baccarat
n Wyong, about an hour’s drive north of cost at A$500 million and has signed a purchase agreement with ISydney on New South Wales’ Central Coast, Wyong Shire Council for 15.7 hectares of land for a “tourist mecca” they’re talking about building a full-size with a theater, a traditional Chinese courtyard, the obligatory panda replica of the Forbidden City. attraction (no live animals, though), tributes to the architectural Seriously. styles of the Tang, Song, Ming and Qing periods and a nine-story Australian Chinese Theme Park, the temple housing a giant Buddha. enterprising entity behind it, puts the “We were the fourth or fifth council they approached after everybody else laughed in their face,” Mayor Doug Eaton told China Daily. Mayor Eaton isn’t laughing. He’s a believer. He says, “What this proposal will do is bring millions of dollars’ worth of tourism into the area—which will have a flow-on effect to the entire region’s economy.” Tourism is big business in Australia, good for A$41 billion last year, almost 3% of gross domestic product. And China is big tourism. The Middle Kingdom passed the UK a couple years back as the second-largest source of inbound travel after New Zealand. One in nine visitors to Australia in the last year was Chinese, and this doesn’t count Hong Kong, Macau and Taiwan. The total, 659,400, was up 17.5% year on year, more than triple the rate of growth of foreign arrivals as a whole. Total inbound visitation, which is forecast to grow 4.6% in the year ahead, will largely be driven by this surge, China’s contribution expected to increase 15.9% this year and 10.4% next year, followed by Malaysia (13.9%), Singapore (12.5%) and India (7.5%). Asia, in fact, is now home to seven of the country’s top 10 tourism feeder markets, and the next seven years are likely to see the
12 INSIDE ASIAN GAMING | July 2013 But in attempting to assess Crown Sydney’s prospects against this reputed underperformance on the part of The Star it helps to remember that VIP accounts at most for about 35% of Australian casino revenues, if that—and this is “VIP” rather broadly defined, as the project’s proposed minimums show—and Australia accounts for only about 3% of the Asian VIP market. Analyst Sacha Krien at CLSA believes Crown Sydney can boost this by $500 million a year, which in two years would lift the country’s share to 4%. But what will be the impact of increased competition elsewhere in the region? The Philippines will likely be home to four new integrated resorts in Manila by the time Sydney opens, and South Korea will have expanded at some level, and “What Sydney gets from this chronically Taiwan and very possibly Japan will have opened up. flawed process won’t be what David Crown doesn’t like the cannibalization discussion and succeeded Murray’s committee outlined. All that really in beating it back in NSW by claiming that far from slicing Sydney’s pie thinner it will improve VIP revenue at The Star by 15% within happened was Echo’s Star monopoly three years. being bumped into a ditch.” Mr Green doesn’t think it will be an issue either. “I think it runs against history,” he says. “If you look at markets that have been this, made its approval contingent on it and included it in its 4th July liberalized, the liberalization process tends to grow markets over announcement to the media. What this will mean two decades from restricted-supply markets, and Sydney is restricted in terms of table now, or how it would be enforced, is anybody’s guess. As it stands, supply.” Crown Sydney will have to make good on it without benefit of the Crown is forecasting $1.4 billion in incremental gaming tax monopoly its operating company has always enjoyed in Melbourne. for NSW in Crown Sydney’s first 10 years of full operation, a period New South Wales figures to win however it turns out. it calculates as commencing in 2022. Its submission to the state “I look at it as a competitive situation between two operators, includes a guarantee of $1 billion in incremental tax over the first one of whom has an extraordinarily better track record than the 15 years. The government, seizing on the public relations value of other,” says Mr Green. “Government can only gain.”
continent contributing more than half Australia’s projected growth ($204) and fifth in spending on restaurants in international travel. Forty-two percent of that is expected to come and accommodation ($2,169). from China. By 2020, more than 1 million Chinese will be coming And they’re decidedly more interested annually and contributing to the economy somewhere between $7 in casinos than kangaroos. Their gambling billion and $9 billion. spend per trip—$506 on average for In anticipation, “Industry and governments need to deepen the year ended 31st March—exceeds consumer understanding, strengthen distribution, develop tailored everyone else’s. The only countries marketing campaigns, and appropriate product, as well as relevant that come close are Asian, and one policy frameworks,” says Tourism Australia, a federal government of them is Hong Kong, which agency charged with promoting the country. The agency has trained is third at $390, just behind 6,000 travel specialists in mainland China to target potential visitors. Singapore at $400. In April, former Prime Minister Julia Gillard traveled with a high- level delegation to the country’s No. 1 trading partner to lay the groundwork for an annual trade and tourism fair and to make the Australian dollar only the third currency (after the US dollar and the yen) to be traded directly against the yuan. In May, the country’s second-largest department store chain, David Jones, launched a partnership with UnionPay, China’s leading payment card provider. For consumer sectors such as gaming and retail, it’s more than the sheer numbers, it’s the spending that makes China the brass ring. Its citizens contributed 17.5% of Australia’s total inbound visitor expenditure in the year ended 31st March, contributing almost $3.8 billion to the economy. They outspend all inbound markets, collectively and per capita (A$7,036), the latter at almost double the average of all international arrivals. Tourism Australia expects the Chinese this year will generate about 20% of the growth in visitor expenditure across the board, international and domestic. They already lead all nations in terms of visitor nights, they spend the most on stuff ($1,206), they’re second in entertainment spending
July 2013 | INSIDE ASIAN GAMING 13 FEATURES
Hope Springs PAGCOR, the Philippines’ government-owned gaming regulator-cum-operator, offers an optimistic projection of the country’s gaming revenues based on the expected strong performance of new resorts opening at Manila’s Entertainment City
he government agency that regulates gaming in the Philippines is forecasting Tthe country’s casino revenues to hit US$2.5 billion this year on the strength of the first resort opening at Manila’s new Entertainment City. Cristino Naguiat Jr., chief executive of the Philippine Amusement and Gaming Corporation, credits Solaire Resort & Casino, which debuted at Entertainment City in March, with driving much of the expected 25% year-on-year increase. Solaire, operated by Global Gaming Asset Management and majority-owned by Bloomberry Resorts, a PSX-listed company controlled by ports tycoon Enrique Razon, reported P578.3 million (US$13.5 million) in revenue in its first 15 days of operation, 86% of it from the casino. “We’re getting a lot of visitors and it’s ramping up nicely,” said Mr Razon. Solaire is the first of four mixed-use gaming and leisure complexes planned for Entertainment City, a 100-hectare swath of Solaire Resort & Casino government-owned land reclaimed from Manila Bay and located about five miles across Solaire lured back some 400 experienced Global, a Philippine corporation with extensive town from the city’s international airport. Filipinos who were recruited for management holdings in residential and commercial real After the other three resorts under positions. Mr Naguiat says thousands more estate and food and beverage. development or on the drawing board at could come back once Entertainment City is The fourth is under development the Manila Bay complex come online, annual fully built out. by a Philippine subsidiary of Universal gaming revenues nationwide could hit $10 Current plans call for Belle Grande Manila Entertainment, the Japanese machine billion over the next five years—90% of it Bay to open down the street from Solaire next gaming giant controlled by Kazuo Okada. from Entertainment City, Mr Naguiat says. summer. Macau’s Melco Crown Entertainment Bloomberry Resorts is also busy One result, he says, is that overseas is a major investor through a local subsidiary in expanding Solaire, expecting to open the interests are taking a fresh look at the country partnership with Philippine retail and property resort’s second phase in the third quarter of as a regional leisure destination. “They are magnate Henry Sy. 2014. Mr Razon says the expansion is fully interested in the direction [of Philippine The third resort, scheduled to open in funded and 40% complete. gaming] and how we see the Philippines late 2015 or early 2016, is being developed Bloomberry is spending US$480 million right now.” by Travellers International Hotel Group, the on the second phase, which is slated to It also means new ways to battle the joint venture that owns the country’s popular include a second hotel with 308 rooms and country’s stubbornly high unemployment Resorts World Manila casino and hotel suites, more restaurants, an array of high-end rate while providing new opportunities for complex. Travellers’ principals are Genting retail outlets and entertainment facilities. Its nationals working in competing markets Hong Kong, a subsidiary of the Malaysia-based completion will bring the total cost of the abroad, including Macau and Singapore. Genting resort conglomerate, and Alliance resort to $1.2 billion.
14 INSIDE ASIAN GAMING | July 2013
FEATURES
Smooth Sailing With easier comps ahead and the mass market showing no signs of slowing down, concerns about the sustainability of Macau gaming revenue growth in the second half seem overdone
he growth of Macau’s high-margin focused ones—are seeing profitability by the J.P. Morgan Macau Profitability Index, mass-market gaming revenue increase by a greater degree than the was up 24%. Tcontinues to comfortably outstrip that headline revenue number. Mass revenue, which accounted for 29% of the dominant but much lower-margin VIP Macau recorded MOP28.3 billion in of total revenue in June, was up 31% year on sector, and the result is that local casinos— gross gaming revenue in June, a 21% year on year. The figure does not include slots, which and particularly the more mass market- year increase, while profitability, as gauged are classified separately and accounted for
Macau Monthly Gaming Revenue Macau Monthly Junkets’ Rolling Chip Volume
Monthly Gaming Revenue (MOP bn) yoy change (R.H.S) MOP bn Monthly VIP rolling chips yoy change (R.H.S) 35 60% 700 80% 70% 30 600 60% 25 500 40% 50%
20 400 40% 30% 15 300 20% 20% 10 200 10% 0% 5 100 -10% 0 0% 0 -20% Jul11 Jul12 Jul11 Jul12 Jan11 Jan12 Jan13 Jan11 Jan12 Jan13 Jun11 Jun12 Jun13 Jun11 Jun12 Jun13 Oct11 Oct12 Oct11 Oct12 Apr11 Apr12 Apr13 Apr11 Apr12 Apr13 Feb11 Feb12 Feb13 Feb11 Feb12 Feb13 Sep11 Sep12 Sep11 Sep12 Mar11 Mar12 Mar13 Mar11 Mar12 Mar13 Dec11 Dec12 Dec11 Dec12 Nov11 Nov12 Nov11 Nov12 Aug11 Aug12 Aug11 Aug12 May11 May12 May13 May11 May12 May13 Source: J.P. Morgan estimates, DICJ Source: J.P. Morgan estimates, DICJ
16 INSIDE ASIAN GAMING | July 2013 IN FOCUS
JPM Macau Profitability Index Luck-Adjusted JPM Macau Profitability Index
6.00 Sector profitability HK$bn 60% 6.00 Sector profitability HK$bn 60% Profitability yoy chg in % (R.H.S.) Profitability yoy chg in % (R.H.S.)
5.00 50% 5.00 50%
4.00 40% 4.00 40%
3.00 30% 3.00 30%
2.00 20% 2.00 20%
1.00 10% 1.00 10%
0.00 0% 0 0% Jul11 Jul12 Jul11 Jul12 Jan11 Jan12 Jan13 Jan11 Jan12 Jan13 Jun11 Jun12 Jun13 Jun11 Jun12 Jun13 Oct11 Oct12 Oct11 Oct12 Apr11 Apr12 Apr13 Apr11 Apr12 Apr13 Feb11 Feb12 Feb13 Feb11 Feb12 Feb13 Sep11 Sep12 Sep11 Sep12 Dec11 Dec12 Dec11 Dec12 Mar11 Mar12 Mar13 Mar11 Mar12 Mar13 Nov11 Nov12 Nov11 Nov12 Aug11 Aug12 Aug11 Aug12 May11 May12 May13 May11 May12 May13 Source: J.P. Morgan estimates, DICJ Source: J.P. Morgan estimates, DICJ
ahead against low bases of comparison. The mass market, by contrast, is advancing against a strong growth base, with mass revenue having consistently grown around 30% in the second half of last year, even as VIP growth faltered. In 2Q 2013, total Macau gaming revenue increased 16% year on year, mass grew 31% and VIP was up 11%. Looking ahead, J.P. Morgan’s Kenneth Fong forecasts Macau revenue to grow “by around a mid-teen rate” in July. Although credit tightening in China and recent turmoil in global financial markets have raised concerns about the sustainability of growth in the second half of the year, it seems likely any fallout would be concentrated in the VIP business, which depends most on the free flow of credit, while Macau’s mass sector will continue its relentless forward march supported by infrastructure improvements, new resort and gaming capacity, China’s burgeoning middle class and, of course, all that pent-up In the latest quarter, SJM experienced a two percentage demand for casino gaming on the mainland, point drop in its share of overall revenue to 25.0%, only a miniscule fraction of which is currently though that’s largely the result of an unlucky quarter in its being served by Macau. VIP segment—its 2Q VIP win rate of 2.93% was the lowest Market Shares among the six operators. Following the liberalization of Macau’s casino industry in 2002 allowing the entry of five new operators, the market share lead of 4% of total revenue in June. Slot revenue revenue and VIP rolling chip volume were up erstwhile monopoly operator SJM has been in recent months has been growing at a 18% year on year in June (the industry-wide steadily eroded. decidedly slower rate than revenue from the VIP win rate in 2Q 2012 and 2Q 2013 were In the latest quarter, SJM experienced tables and ETGs served by live dealers that identical, at 3.18%), coming off a low base a two percentage point drop in its share constitute the mass segment. It was up 13% in June 2012, when rolling chip volume had of overall revenue to 25.0%, though that’s in June, but only 6% in the second quarter. declined 2% year on year. The year-ago July largely the result of an unlucky quarter The VIP sector had contributed 71% of and August VIP volume comps are weaker in its VIP segment—its 2Q VIP win rate total revenue in 1Q 2012, but by June this still, suggesting the VIP sector will continue of 2.93% was the lowest among the six year its share had declined to 67%. Both VIP registering moderate growth in the months operators. The industry-wide average was
July 2013 | INSIDE ASIAN GAMING 17 IN FOCUS
3.18%, Sands China achieved 3.47%, Galaxy Share of Overall Macau Gaming Revenue by Operator (%) Entertainment Group, 3.16%, Wynn Macau, 3.13%, MGM China Holdings, 3.14% and 1Q 2012 2Q 2012 3Q 2012 4Q 2012 1Q 2013 2Q 2013 Melco Crown got 3.10% at Altira and 3.66% Sociedade de Jogos de Macau 28.0 27.4 26.8 27.6 27.0 25.0 at City of Dreams. Sands China 17.6 17.3 19.1 20.4 20.6 20.7 Discounting luck factor by considering Galaxy Entertainment Group 18.8 21.2 19.4 18.2 18.7 18.8 VIP rolling chip turnover by operator, the Melco Crown Entertainment 13.4 12.6 13.2 13.5 13.3 14.8 movements were less pronounced, though Wynn Macau 12.2 11.8 12.1 10.7 11.3 10.5 again it was SJM that lost most ground MGM China Holdings 10.0 9.6 9.4 9.6 9.1 10.2 between the first and second quarters of 2013. The most apparent trends since Share of VIP Revenue by Operator (%) the beginning of last year are the steady increases in Sands China’s and Melco 1Q 2012 2Q 2012 3Q 2012 4Q 2012 1Q 2013 2Q 2013 Crown’s shares of VIP rolling chip turnover, Sociedade de Jogos de Macau 25.9 25.5 24.8 26.7 26.7 24.8 while capacity-constrained Wynn Macau Galaxy Entertainment Group 20.4 23.4 21.0 19.3 19.9 19.7 has seen its share decline. Sands China 15.7 14.7 16.1 17.3 17.2 16.8 In the mass market, SJM’s share of Melco Crown Entertainment 13.9 13.1 14.2 14.2 13.7 15.5 revenue continued to fall in the face of Wynn Macau 13.2 12.9 13.6 11.9 12.5 11.9 significant capacity expansion by Sands MGM China Holdings 10.9 10.4 10.2 10.5 9.9 11.3
Share of VIP Rolling Chip Turnover by Operator (%) China at Sands Cotai Central and as Galaxy 1Q 2012 2Q 2012 3Q 2012 4Q 2012 1Q 2013 2Q 2013 and Melco Crown continue to ramp up their Sociedade de Jogos de Macau 28.3 28.1 27.1 28.4 27.7 26.9 premium mass businesses. SJM’s loss of Galaxy Entertainment Group 22.4 23.0 21.7 19.7 19.3 19.9 mass-market revenue share could also be Sands China 12.5 13.3 14.9 15.3 15.8 15.5 partly the result of the company’s recent Melco Crown Entertainment 12.6 12.8 13.6 14.3 14.6 14.3 reclassification of some of its premium mass Wynn Macau 14.3 13.5 12.4 11.5 11.6 12.1 tables as VIP tables, triggered by maximum MGM China Holdings 9.9 9.3 10.3 10.7 11.0 11.4 bets exceeding an apparent HK$300,000 (US$38,460) threshold that Macau’s gaming regulator, the DICJ, views as the cut-off Share of Mass Market Revenue by Operator (%) between mass and VIP. 1Q 2012 2Q 2012 3Q 2012 4Q 2012 1Q 2013 2Q 2013 Sands China unseated SJM as the market Sands China 22.8 24.7 26.4 27.8 28.8 29.9 leader in mass revenue in the first quarter of Sociedade de Jogos de Macau 34.3 32.6 31.6 29.6 27.6 25.6 this year and further extended its lead in the Galaxy Entertainment Group 14.3 15.0 15.5 15.5 15.9 16.7 second quarter, commanding a 29.9% share. Melco Crown Entertainment 11.8 11.3 10.7 12.0 12.3 12.9 Wynn Macau lagged the field with a 7.1% MGM China Holdings 7.2 7.6 7.3 7.3 7.1 7.7 share, having been overtaken in the quarter Wynn Macau 9.5 8.8 8.5 7.8 8.3 7.1 by MGM China.
Sands China unseated SJM as the market leader in mass revenue in the first quarter of this year and further extended its lead in the second quarter, commanding a 29.9% share.
18 INSIDE ASIAN GAMING | July 2013
IN FOCUS
Edging Closer Morgan Stanley believes Japan is on the verge of passing a bill legalizing casinos
arly last month, a small Japanese political party submitted a bill to legalize casino gaming in the country to Japan’s Eparliament, the Diet. By most accounts, in doing so, the Japan Restoration Party may only have served to complicate efforts by a cross-party lobby group, which plans to jointly submit such legislation after the country’s upper house elections, scheduled for the 21st of this month. In April, the cross-party alliance, consisting of 140 lawmakers, selected Prime Minister Shinzo Abe as their Chairman and agreed on a plan to submit a draft casino bill during the Diet’s extraordinary session in the autumn. The JRP is part of the group, known variously as the Alliance for the Promotion of International Tourism and the IR (Integrated Resorts) Alliance. Rather than the JRP’s preemptive separate submission, it will likely be the Alliance’s joint bill, submitted sometime between September and November, that offers the best chance of finally making the decade-long effort to bring casinos to Japan a reality. Hopes were initially kindled by the return to power in December Japan’s primary speculative pastime of the business-friendly Liberal Democratic Party under Prime is pachinko, a form of quasi-gaming Minister Abe, who has indicated he is open to the idea of casino resorts as part of his strategy for driving economic growth. played on pinball-style According to a report last month by Morgan Stanley’s Praveen machines which generates about US$36 Choudhary and Mia Nagasaka, the process could begin in the fourth billion in net revenue per year. quarter of this year. The report stated: “We expect the IR promotion bill to be passed before the end of this year and the implementation That suggests enormous untapped bill to be ready within the next 24 months, after which interested demand for purer forms of gaming.
20 INSIDE ASIAN GAMING | July 2013
IN FOCUS
parties could submit their bids.” Number of HNWls in Japan Vs China The report continues: “The process of passing the promotion bill is relatively simple, but drafting the implementation bill will likely Million People Japan China 2.0 require an extensive amount of collaboration among different parties 1.82 1.8 1.74 and between State and municipalities. On top of this, there will likely 1.65 be a widespread effort to pick the best practices from other regions 1.6 1.52 1.4 1.37 to suit Japan’s particular needs. We believe that there is a significant 1.2 lack of understanding of other jurisdictions at this point, and thus we 1.0 think it is too early to predict the nature of regulation in Japan.” 0.8 “Japan is potentially one of the largest gaming destinations in 0.56 0.6 0.46 0.54 0.41 the world,” stresses Morgan Stanley. “We expect it to invite bids from 0.4 0.36 foreign operators in the next 2-3 years and open two integrated 0.2 resorts by 2019-20.” - 2007 2008 2009 2010 2011
Japan’s Potential Source: Capgemini Lorenz Curve Analysis, 2012 There is no doubt that casino gaming would prove a big earner in what is the world’s second-largest developed economy and third- Number of Japanese Visitors to Major Asian largest in terms of nominal GDP. Currently, the market for gaming- Gaming Destinations, 2012 related activities in Japan is around US$56 billion annually and the Million People primary speculative pastime is pachinko, a form of quasi-gaming 4.0 played on pinball-style machines that generates about US$36 billion 3.52 3.5 in net revenue. That suggests enormous untapped demand for purer forms of gaming. 3.0 Among the main factors Morgan Stanley identifies as 2.5 contributing to the success of future casino resorts in Japan are the 2.0 country’s big concentration of high net-worth individuals—Japan has the largest number of HNWIs in Asia with a cumulative net worth 1.5
1.0 0.76 0.47 Japan’s Existing Gaming/Gambling Market 0.5 0.41 0.40
Total No. of - Drop Players Take GGR GGR Korea Singapore* Malaysia Phillipinnes Macau 2011 (bn Yen) (in ‘000) Out Rate (bn Yen) (US$bn) Source: CEIC, Morgan Stanley Research Pachinko 18,900 12,600 15%* 2,835 35.7 Note: Singapore data is available through Sept 2012 only; Morgan Stanley has Lottery 1,440 38,400 54% 542 6.8 projected the data for the remaining three months. Central Horse Racing 2,294 9,300 25% 573 7.2 Local Horse Racing 33 2,900 25% 83 1.0 of US$4.2 trillion—and its strong infrastructure and air connections. Bicycle Racing 623 1,200 25% 156 2.0 Japan also benefits from proximity to Beijing and Shanghai, China’s Motor Boat Racing 920 2,000 25% 230 2.9 wealthiest cities and a major source of visitors to casinos in South Motor Boat Racing 8 600 25% 21 0.3 Korea and Singapore. Furthermore, the continued development of Total 56.0 gaming across Asia bodes well for Japan’s future casinos, which will Source: Leisure White Paper 2012, Presentation of Director & Visiting Professor, offer players across the continent a fresh choice of destination come Center for Amusement Industry Studies, Osaka University of Commerce. 2019-20. * Takeout rate for Pachinko is approximately 15%. Despite Morgan Stanley’s optimism, the report does point to
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22 INSIDE ASIAN GAMING | July 2013 IN FOCUS
Sega Sammy Holdings Stock Price ¥
3000
2500
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Aug Sep Oct Nov Dec 2013 Feb Mar Apr May Jun Jul The Fuji Television Building in the waterfront area of Tokyo’s Minato district potential impediments to getting casino gaming off the ground, Japanese visitors and is likely to suffer the largest cannibalization including the political instability created by frequent changes in following the opening of Japan’s IRs. leadership and opposition from political and citizens’ groups worried As for which global casino operators might participate it will give rise to problem gambling and other social ills. Also in casino development in Japan, analysts point to the usual clouding the outlook is regulatory risk—both over-regulation of the suspects, including Las Vegas Sands, Genting Group and Caesars industry and measures to keep locals out of casinos. Then there’s the Entertainment. Domestically, if the stock market’s wisdom is old chestnut of Japan’s aging/declining population, and the fact that anything to go by, the front-runners appear to be Sega Sammy a long history of strained relations between China and Japan could Holdings—which is developing an IR in South Korea in partnership keep away Chinese visitors. with that country’s Paradise Group—and Fuji Media Holdings, a Japan’s first casinos will be housed within two Singapore-style broadcaster located in a section of Tokyo considered prime territory IRs featuring leisure and entertainment and MICE facilities as well for casino development. as gaming, says Morgan Stanley. In their report, Mr Choudhary and Sega Sammy stated a desire as far back as 2007 to invest in Ms Nagasaka offer four approaches to estimating the size of the casinos in Japan should the opportunity arise and last February country’s gaming market, including: revenue to GDP; percentage purchased a resort in Miyazaki Prefecture. Two months after that of pachinko; table efficiency; and population/visitation/HNWIs. The acquisition was announced, company President Hajime Satomi resulting market estimate is US$8-11 billion. reasserted the company’s intentions, saying, “Of course, [a casino] The eventual opening of casinos in Japan is not expected to have is what we have in mind.” much of an impact on Macau, where the bulk of visitors hail from Another potential beneficiary of casino legalization in Japan is neighbouring Guangdong province in China and Japanese visitors Konami Corp. and its slot-manufacturing subsidiaries. Given the local do not feature prominently in the mix. Of Asia’s major gaming population’s affinity for pachinko, Japan’s casinos are expected to destinations, South Korea receives by far the largest number of contain a high concentration of gaming machines.
Fuji Holdings Stock Price Konami Stock Price ¥ ¥
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Aug Sep Oct Nov Dec 2013 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2013 Feb Mar Apr May Jun Jul
July 2013 | INSIDE ASIAN GAMING 23 FEATURES
Back With a Purpose WMS Gaming is mapping a strategy for success in Asia based on a dynamic new cabinet and a portfolio packed with new regionally specific games
The new Blade cabinet is supporting an array of new titles coming in the months ahead.
ever a company to take a back seat to the region, and we have a clear pipeline market and developed in partnership with a when it comes to innovation, WMS now of games which: a) are translated and design studio in the region, new game sets NGaming decided last year to take b) specifically designed for this region— for the Game Chest Multi-Game series, WMS’ a hiatus from Macau’s slot floors to retool customized math models, customized first multi-game portfolio, and several new on a new platform for the dual-language themes and compliant for the Macau and themes for the proven performer series G+ requirement the territory imposed in 2012 Singapore markets.” Deluxe, G+ Deluxe 5x4 and Colossal Reels. and to develop game themes and math WMS signaled its return in a big way at “We have a roadmap of themes for models tailored to a market that is growing G2E Asia 2013 with more than 30 games this region,” says Julien Drouet, Director of in importance for the US-based slot giant. on a range of stylishly functional cabinet International Product Management for WMS. “The difference in the past was configurations, powered by the advanced The first group of games to be unveiled that the translation strategy and the CPU-NXT2 and CPU-NXT3 operating this summer on the Blade cabinet will customization strategy was a bit hit-or-miss,” systems, and bolstered by an array of new include the new Fortune Palace theme. says Jon Lancaster, Executive Director of math models that answer the Macau player’s This 5x4-Reel 40-line game showcases International Sales for WMS. “But in the last demand for a more varied experience with “Asianized” math and innovative CPU-NXT3 12 months we’ve looked at that in light of a shot at bigger payouts. These include new features such as “Bonus Guarantee,” which the new regulations and our commitment themes targeted specifically at the Asian assures players that when max lines are
24 INSIDE ASIAN GAMING | July 2013 FEATURES
played, the free spin bonus is guaranteed The new Blade cabinet figures to award a minimum of 10x total bet, and prominently in this plan. Boldly styled and “Wager Saver,” where a player whose bank is instantly eye-catching, the cabinet was down is provided the option of betting their shown at G2E for the first time in 2012, remaining credits in order to win enough to and its unique aesthetics were enhanced spin one more time and place one more bet. this year at G2E Asia 2013 with a library of Similar targeted math models and features exclusive game content developed with have been designed for titles including Asian players in mind. The insights of many Lantern Festival, Emperors & Pharoahs and of those players, combined with operator Fortune Ruler, with a steady stream of new feedback, have been integral to the design, titles arriving in the months ahead. and the processing power of the CPU-NXT3 “The goal is to re-establish our means more features and a richer visual reputation,” says Mr Lancaster. “We’ve still got experience than ever seen before. a footprint, but now with the new product Mr Drouet describes it as a three- we want to build on that. We’re going to be part product offering: beginning with the establishing our standalone product. Then, introduction of the first titles on the Blade nine or 10 months from now, we’re going to cabinet; followed by local-area progressives, have the first local-area progressives coming both fitted with Macau-specific math through. So step by step.” models; and an aggressive move into participation games. “We want to become a presence here,” he says, “and we’re putting the resources and energy into that. We decided to do it right.” Licensed titles have always been a strong suit for WMS and two iconic brands ‘We have a roadmap of themes for this region,’ says —Willy Wonka & The Chocolate Factory Julien Drouet, director of International Product and Spider-Man—were highlighted at last Management. month’s show. The company believes in the cross- 2.0 offering, players get to explore the cultural appeal of Spider-Man. This is WMS “Scrumdidilyumptious” joy of pursuing a at its innovative best, a Sensory Immersion jackpot by finding a “Golden Ticket” hidden 2.0 game that leverages the interactive in a “Wonka Bar” while the odds of finding excitement of D-BOX Technologies’ it increase each time the jackpot is not synchronized motion chair and the theater- won. And a ride on the “Chocolate River quality sound and graphics powered Boat” comes to life thanks to the trademark by the CPU-NXT3 platform to deliver an graphics, superior play mechanics and unforgettable game experience. advanced touchscreen functionalities, The unique play dynamics all synchronized with the excitement of come courtesy of its “dual- the D-BOX motion chair. Even the game’s array” reel-spinning “Wonkavator” feature, the free-spin trigger video action—two full used to determine which bonus round will 5x3 reel layouts along with be awarded, is motion-enabled. six random “Spider-Sense” Colossal Reels, which was also featured, features coupled with is another top performer for WMS by exciting bonus rounds that virtue of the wide-screen Bluebird2e include video and audio clips and Bluebird xD cabinets and the robust from the popular Hollywood capabilities of the CPU-NXT2 platform. The film franchise. series features two reel sets—traditional With the Willy Wonka & and oversized—that transfer wild symbols the Chocolate Factory game, between reels. The series has been another Sensory Immersion expanded this year with two new game themes and math models, both featured Spider-Man, a Sensory at this year’s G2E Asia. Immersion 2.0 game, features In all, WMS is confident in the opportunity a synchronized motion chair to expand its floor share, and looks forward and theater-quality sound and to continuing to be a committed partner to graphics. this important market.
July 2013 | INSIDE ASIAN GAMING 25 FEATURES
Security in Motion From storage to pit to disposal, protecting and tracking cards and dice in transit is what Mega Fortris does, and casinos across Asia rely on it to do this as well as it can be done
alaysia-based Mega Fortris is trusted the world over as a Shown for the first time at this year’s G2E Asia in May, this is an end- manufacturer of seals, locks, labels, bags, pouches and to-end solution for monitoring and managing vital inventory based Mboxes for the protection of all manner of precious cargo on some innovative uses of radio frequency identification. The heart in transit—cash, confidential documents, discs, tapes, medicines, of MCMS is an application called Intelliseal, developed in partnership chemicals—whatever its customers most need to get safely and with CaptureTech, a Netherlands company that specializes in active securely from here to there. and passive RFID-tracking applications. It employs reusable seals “Prevention, Protection, Peace of Mind” is Mega Fortris’ motto, embedded with a passive RFID chip that fixes the location of everything and it’s one to which the size and geographical diversity of its client that moves and requires tracking—playing cards, dice, buttons, base readily attest. It’s a list that includes banks and financial services baskets, vaults, seals, trolleys, you name it—and it does it in real time. providers, manufacturing and petrochemical The chip transmits at an ultra-high-frequency and pharmaceutical companies, retailers, food 860-965 MHz, providing coverage across 700 and beverage suppliers, police, security and to 800 meters, and it is being fine-tuned for transportation and cargo handlers on land, sea, reading by existing CCTV networks to integrate rail and air. its tracking capabilities with the workings of the The company enjoys the same trust in surveillance and security departments. the gaming industry. If you’ve ever noticed “They will have the technology to tag RFID those see-through boxes in which new and to video,” Mr Arul explains. “It automatically will used playing cards and dice are transported show where a particular box is.” to and from the tables—chances are they’re Mega Fortris is readying MCMS for full Mega Fortris’. It’s a decidedly low-tech solution, launch in January 2014, at which time the almost nondescript, which of course is the idea. company will be offering to upgrade the Mega Yet there is no margin for error in how it must Casino Boxes in all its casinos at a nominal cost. work. The Mega Casino Box, as it’s called, has to “We are contacting them, telling them be lockable, but its contents have to be visually what’s coming up,” says Mr Arul. “And if you apparent and easily accessible. It has to be buy the boxes with our system it makes it more tamper-proof and resistant to damage and the integrated, which makes life easier, and you elements. But it must be traceable everywhere can already have the CCTV system.” on the property. If you’ve ever noticed It’s a compelling proposition. Mega Fortris generated 110 million ringgit those see-through boxes MCMS is an open-architecture plug-and- in 2012 (US$35.7 million)—a 29% increase play platform, modular and customizable to suit year on year—by being very good at this sort in which new and used an operation’s specific needs, and as evidenced of thing. It employs 600 people full-time in playing cards and dice by the CCTV interface it’s fully capable of 19 offices on five continents. Its expertise are transported to and supporting third-party legacy systems. The has been acknowledged by the Federation communications layer is designed on TCP/IP of Malaysian Manufacturers, which awarded from the tables—chances and digitally encrypted to be especially secure, the company its 2012 “Excellence Award”. Its are they’re Mega Fortris’. and it features an offline mode, so even if a reputation is such that it regularly advises network goes down, MCMS keeps operating, clients on a variety of issues related to logistical security. Casinos turn eliminating the need to revert to manual paper entry, and when the to it often for consultations that include vulnerability assessments, network is restored the system automatically syncs with the central security audits and compliance with ISO standards. database so everything is updated and not a beat is missed. “Yes, we provide those kinds of value-added services,” says Chief The new US$1.2 billion Solaire Resort & Casino in Manila has Technology Officer Clement Arul. “We do that for all our customers. deployed a number of the modules, including the comprehensive We are not only a seal-manufacturing firm. Because security is card-tracking, and Mega Fortris expects at least three other casinos about how much you can make life difficult for the bad guys. There in the Philippines capital will be using MCMS in the next couple of is nothing hard and safe in this world with respect to IT and digital years. Both Crown Melbourne and The Star in Sydney have signed up networks.” for the system. MGM Macau is also taking a look. It’s why Mega Fortris has set out more recently to get decidedly “They sent staff all the way to Malaysia to see the live system high-tech with what it calls its Mega Casino Management System. working,” Mr Arul notes with pride.
26 INSIDE ASIAN GAMING | July 2013
FEATURES
The Commitment Renewed Robust growth in its Asian markets helped propel Aristocrat to a double-digit increase in profit in the first half—and if the innovations displayed at G2E Asia are any indication, that performance is set to continue
ristocrat came to G2E Asia in May having just secured almost half the Aslot floor at Manila’s new Solaire Resort & Casino. It was a coup good for almost 600 machines, and it would prove instrumental in driving a solid first half for the Australia-based slot giant in which net profit after tax grew 11.2% year on year to A$52.6 million on $383.2 million in revenues. Aristocrat singled out “maintenance of our leading position in the Asia Pacific market” as a highlight of those results. Indeed, revenues outside the Western Hemisphere and Australia accounted for 18% of all the business the company did in the six months through 31st March and were up 4.5% over the same period in 2012. “The Asia Pacific business grew significantly,” Aristocrat said in its analysis of the results, “supported by a product portfolio tailored to the markets in the region.” This was clearly in evidence on the show floor at The Venetian Macao, where the “2013 is about reaffirming our commitment to Asia company unveiled two new entries in its popular Legends series—50 Dragons Deluxe and supporting our customers with dedicated and and Fortune King Deluxe—and treated the best-performing content region to a first look at its innovative Wonder specifically developed for this region.” 4 multigame platform. “2013 is about reaffirming our commitment to Asia and supporting – Aristocrat General Manager Asia David Punter our customers with dedicated and best- performing content specifically developed Macau. The Legends version, which debuted volatility” option that guarantees longer for this region,” says General Manager Asia in 2011, offered higher win multiples and stacked wilds for an even spicier gamble— David Punter. a compelling free games feature that lets leveraging, as 5 Dragons Legends does to The Legends Series has risen to the players choose either a set number of spins great effect, that vaunted approach to game challenges implied by that commitment by with up to a 40-times multiplier or a “Mystery math for which Aristocrat is famous. Fortune extending the popularity of proven game Choice” that randomly selects the number of King Deluxe offers two new features plus brands with new features and notable games and the multiplier. The reception was bonus free games and a similarly enhanced enhancements to the mechanics and the enthusiastic, and 5 Koi Legends followed visual package. quality of the graphical interface of classics in 2012. This year, with 50 Dragons Deluxe, As Mr Punter puts it, “We have to be like 5 Dragons, the Reel Power stalwart that players will be enjoying an all-new graphics changing. We have to mold ourselves to arguably is still the best-known game in and sound package and a “choose your what’s happening in the region”—and the
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FEATURES
maturation of the Macau machine gambler, he notes, has been one of its more significant developments. “You’re getting players that have got a lot more variety. We’re seeing changes in denomination come into play, more animation and graphics, lower volatility games and higher volatility games. Where it used to be just standalone and link, now there’s licensed product in the marketplace, there’s features in the top box, and you’re starting to see more standalone jackpot- style games.” Legends is one response. On Demand is another, a downloadable solution, shown in Asia for the first time at G2E, that lets operators change out game content with the touch of a button. This includes a number of dual-language titles. Then there’s More Power, a new iteration of Reel Power that brings a whole new level of interaction to the popular standalone progressive format. 50 Dragons Deluxe and Fortune King Deluxe are the latest additions to the popular Legends series. More Power features expanding reels that shift from 243 ways to win in 3x5 reels in the FA in the form of a symbol-triggered jackpot top box in the shape of a locomotive free games feature to 1,024 ways in 4x5 and and selectable volatility that lets players smokestack and a randomly triggered up to 3,125 possible combinations in 5x5s. target the prize they want to aim for. The “Multiplier Wheel Feature” that boosts The Hyperlink multi-progressive bank on the show floor was fitted with an base game wins up to 100 times. A “Gold platform is getting a fresh look as well, and A-list underneath consisting of 5 Dragons Class Feature,” also randomly triggered, G2E saw the pairing of Hyperlink 2.0 with Deluxe, Fortune King and Choy Sun Doa. moves the player into a special three-reel Dragons on the Lake, a game designed Also unveiled was an exciting reprise of screen for 20 free games. Jackpots are specifically for the Asian market that brings Hyperlink’s legendary Cash Express—Cash generated via a “Stop Reels” button that together elements of 5 Dragons and FA FA Express Gold Class, sporting an interactive halts each of the five reels on a points total, the cumulative points corresponding to a progressive. There’s also an additional prize level that resets to a higher amount than the traditional four. The show also saw the Asian debut of Wonder 4, an entirely unique take on the multi-game concept that allows players to select one or more of four base games in any combination or all four at once. It’s a multi-game within a multi-game with an innovative drag-and-drop feature that lets players move the titles from the menu onto any of the reel sets. Choices include two Reel Power scatter-pay games and an Xtra Reel Power game in addition to the standard pay- line game. A bonus-packed “Super Feature,” triggered when the symbols line up on reels 1, 2 and 3, gets four games going at once at heady max bets in the range of 1,600 credits. The version designed for Macau and the larger region, “Wonder 4 Stars,” features 5 Dragons and 50 Lions, another proven performer. It was just days after G2E Asia that Dragons on the Lake—Hyperlink 2.0 with an Asian twist, featuring symbol-triggered jackpots and selectable Aristocrat stated its expectation that profits volatility. in the next six months will be as robust as
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the first six, with the Asia Pacific division continuing to play a leading role. Revenues in the region were up 7.8% in the first half over the same period last year on a 14% increase in overall volumes, and “The [market] is expected to remain strong throughout 2013 and into 2014,” the company said, “with new openings complementing our established regional business.” Jamie Odell, chief executive of parent Aristocrat Leisure, said at the time: “This positive momentum has allowed the business to refresh our strategy, fund acquisitions and invest in share-taking opportunities in both existing and emerging segments.” What this promises for the months ahead is that more of the market-leading innovation witnessed at G2E Asia will find its way to the slot floors of Macau, the Philippines and Singapore—“an increasingly competitive region,” as Aristocrat describes it, where “a tailored product portfolio Cash Express Gold Class is packed with new features, including a fifth jackpot level that resets to a higher focusing on regionally relevant content will amount than the traditional four. continue to drive market share.”
5 Dragons Legends was voted ‘Best Standalone Slot’ in the Inside Asian Gaming 2013 Supplier Awards. IAG Editor James Rutherford, right, presents the trophy to (from left) David Punter and Aristocrat Australia Design Studio Director – Concept Matt Chan and Asia Pacific Regional Marketing Manager Nathan Drane.
July 2013 | INSIDE ASIAN GAMING 31 FEATURES
Getting a Shoe In The Bee-Tek™ Intelligent Electronic Baccarat Shoe provides a door opener to casino markets across the region for The United States Playing Card Company
he United States Playing Card Company has been supplying Tplaying cards since 1885, and its brands, including Bee®, Bicycle® and Congress®, remain the most internationally recognized in their category. Although USPC is the undisputed market leader in the US, Asia is dominated by a competing supplier. The most coveted of the region’s markets is Macau, where the insatiable appetite for baccarat results in the consumption of over 100 million decks of cards a year. USPC has its focus set firmly on that market, having opened a Macau office in December 2011 and hired Adam McGregor as its vice president of sales for Asia, based out of that office. Mr McGregor says of USPC’s mission in the region: “It’s about being here, supporting the market and trying to provide the operators what they want. It’s about giving them tools that improve efficiency and generate revenue. It’s not just about supplying a card any more. It’s technology, it’s so many things.” That security-enhancing and efficiency- boosting technology takes the form of the new Bee-Tek™ Intelligent Electronic Baccarat Shoe, the central pillar of USPC’s baccarat solution. Released last year, the Bee-Tek shoe is, according to the company, not only more secure and less vulnerable to degradation over time than competing products, but also based on an open-architecture platform to enable upgrades and expansion. The Bee-Tek shoe took center stage at the USPC stand at this year’s G2E Asia, held 21st to 23rd May at The Venetian Macao. According to Mr McGregor, “we’ve got plenty of interest in it. We’re all over the place at the moment. It’s Singapore, the Philippines, USPC Vice President Sales - Asia Adam McGregor, left, and Technical Customer Service Manager - Asia Austin Ao Macau, Korea, Australia, New Zealand.” Mr McGregor points out that USPC is we obviously want to be a big part of that.” casino market. “I think what’s in our favour acutely focused on building its presence USPC President of Global Sales Retail and is every CEO of every business in the world, across the continent. “That’s not to say we Casino Michael W. Slaughter argues that in what keeps them up at night is constant want to take any focus away from the US, addition to the strengths of the company’s supply chain. And having limited suppliers but Asia is a growth area. It’s a key market in new shoe, there’s a basic business rationale can inhibit your ability to grow your business, playing cards. It’s the biggest in the world. So for USPC to increase its share of the Asian as well as for you to get the best pricing in
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the marketplace. Also, you never want to be short of a key product that operates your business. So we feel that even as a secondary supplier into the marketplace, we would substantially grow market share just because of that simple level of support as a secondary supplier. But more importantly, we want to be a primary supplier. We think we’ve got the right product and the right service level to be able to do that.” The Bee-Tek shoe works exclusively with Bee brand playing cards. “There’s a reason for that,” explains Mr Slaughter. “That exclusivity ensures that you can have a much more secure game both for the casino and the player, simply because the technology is limited.” USPC’s cards are high-tech, sophisticated products that come in many formats for many settings, including hardwearing plastic and paper composites for poker rooms, as well as more traditional linen-finish paper cards for card-squeezing baccarat players in markets such as Macau and Las Vegas. USPC claims to be the only manufacturer that makes its own cardstock, scanning for imperfections and doing its own embossing, while other suppliers buy paper pre-embossed. Embossing the paper after printing means the surface of the card retains the slightly dimpled effect essential to allow a tiny cushion of air between each card. That, in turn, allows for more efficient card shuffling via machine, eliminating the risk of two cards being dealt simultaneously USPC’s card manufacturing process is fully automated. from the shoe. By contrast, when suppliers buy paper pre-embossed then print on it, “The reason our cards work so well in and technology in place that will take as the ink fills in the embossing. shuffling machines is that the embossing much of the human decision-making out of gives a little bit of separation between each the equation as possible,” says Mr Madding. card in the pack—it effectively creates an In July 2009, USPCC moved from its air cushion. A very smooth (pre-embossed) Cincinnati, Ohio base, where it had been for card on the other hand tends to cause more than a century, to a brand new purpose problems for shuffler machines. Sometimes built 570,000 square feet manufacturing more than one card can come out,” explains plant across the river in neighbouring USPC International Casino Sales Director Kentucky—only a short distance from Scott Madding. Cincinnati Airport. The company also Another key differentiating feature of invested US$30 million in new equipment the USPC card manufacturing process for the plant. is that it is fully automated. “What “We find that the more automation we we’ve been doing over the have the better, and the fewer mistakes. years, more from a security Every time a human hand touches the standpoint than anything product—and that includes in the casinos else, is to get equipment where the card packs go into the pre-shuffle room—the opportunity for something untoward to happen, such as a card going The Bee-Tek™ missing or collusion with someone wishing intelligent electronic to cheat the system, is there,” adds Mr baccarat shoe Madding.
July 2013 | INSIDE ASIAN GAMING 33 Custom Choice Abbiati is leading its expansion in Asia with premium chips and plaques that allow for high levels of personalization
eadquartered in Turin, Italy, Abbiati Casino Equipment last consistency was the overriding factor in the company’s selection as year secured the services of veteran industry marketeer the main supplier of chips and plaques to Solaire. HChristophe Leparoux to better serve the Asian market and “We chose Abbiati for our higher-end casino currency because exploit what the company sees as a prime opportunity to grow sales of their leadership position in quality chip supplies, as well as their in the wide range of products it manufactures and supplies. ability to provide the most design and security options to meet The range covers traditional equipment such as roulette wheels; customized tables and chairs; value chips, plaques and jetons; table layouts; and tokens and other gaming accessories. It also covers products boasting cutting-edge technology, such as roulette wheels equipped with patented laser monitoring and linked to an electronic results display and external terminals; and RFID systems utilizing 13,56 MHz PJM technology. Abbiati has recently enjoyed strong sales of its premium chips and plaques in the continent, winning orders from the likes of SJM, The Venetian and Solaire. The currency shipped include plaques and a wide range of American-style chips, both available in an array of colors, diameters, styles, finishes and unique security features. Plaques like the ones you’ll see in Solaire’s recently-opened VIP rooms are richly crafted in traditional mother of pearl and fitted with UV-sensitive links for extra security and serialization. The chips on the main floor and in the VIP areas are designed with the same attention to detail, manufactured under a computer-controlled CNC injection-molding process that ensures state-of-the-art consistency and durability, each one carefully ground on its face to just the right thickness for smooth handling and uniformity, and along its edges to guarantee that size and diameter never vary. High-security holograms, customized to Solaire’s name, logos and chips sets, ensure unparalleled protection against counterfeiting. Abbiati’s ability to design and produce various sets in several currencies that are easily distinguishable from one another while maintaining Giorgio Abbiati, right, and Christophe Leparoux
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our stringent requirements,” said Dennis Andreaci, Senior Vice President Gaming. “The quality of service and the professionalism of their staff and representative were crucial in ensuring that the chips were delivered in time for our opening.” In addition to offering the highest levels of security, Abbiati’s chips and plaques can also be personalized for individual clients. Speaking at this year’s G2E Asia, Giorgio Abbiati, CEO of Abbiati Casino Equipment, explained, “we’re creating a lot of new security features, as well as developing new possibilities to personalize casino currency, including research into the use of new materials that can be used for personalization.” “The other thing that we’re highlighting at the show this year is our baccarat tables, one of which features the Walker Digital RFID platform,” added Mr Abbiati. “We’ve also got a smaller-sized table for three players—it’s a new design created especially for VIP rooms, where players may want to play in smaller groups.” The tables are designed to complement the VIP room experience with a choice of solid woods—mahogany, oak or cherry wood—with leather, alcantara, skai and carbon fiber trim features known for their aesthetics and resistance to wear, finished with layouts woven from the best wools and micro-fine cloths and incorporating a package of advanced ergonomics and security features. Abbiati’s reputation is built on over 30 years of commitment to the highest manufacturing standards and best materials, blending technological innovation with traditional craftsmanship to produce the finest in furnishings, layouts and accessories for the pit. Its products are found in more than 120 casinos on four continents, and according to Mr Abbiati, Asia has come to play “a very significant role” in the family-run company’s business. If its recent performance is any indication, the company looks set to continue expanding its presence in an Asian market hungry for high-quality alternatives.
RFID-enabled baccarat table with carbon fiber trim, designed and manufactured exclusively for Walker Digital Table Systems’ Perfect Pay Table Network. Poised to Expand Ainsworth is looking to build its presence in Macau with a range of slots developed specifically for the local market
rom October 2012, all new slot games denom linked progressive Fortune Ox, in the US. In April, the company announced in Macau are required to feature player- featuring a HK$2.5 million jackpot. Available it had joined forces with Bally in a content- Fselectable dual-language (Chinese in the unique triple-screen Super A560 sharing agreement designed to help power and English). All the major manufacturers cabinet, Fortune Ox provides increased start- both companies’ expansion into online exhibiting at G2E Asia in May showcased up value options plus rapid-hitting bonus and remote gaming. The deal will see their latest dual-language titles, but the only prizes and frequent free game features. Ainsworth provide a variety of games for stand where every single game on display Then there’s Ainsworth’s 3-level Bally Technologies’ iGaming Platform and appeared to be dual-language was that of standalone progressive, Thunder Dragon, Remote Gaming Server for distribution in Ainsworth Game Technology. which, according to the company, is a market- regulated markets in the United States and It’s the first time the company has first concept wherein scatter combinations elsewhere. designed games specifically for the region, not only trigger the free games feature, but Underlying Ainsworth’s recent success with strong Asian themes in evidence also simultaneously reveal any one of three is the strong performance of its robust A560 throughout its stand. In highlight was big standalone progressive levels. family of cabinets. The latest in the line, the Treasure Storm, packed with three linked Another unique concept on display A560st, is available in two different modular progressives, two standalone progressives was the Double Shot Oriental game versions—single 23” LCD and Dual 23”/27” and an engaging free games feature. package which gives players a choice of LCD. According to the company, the A560st Available with an eye-catching signage four different features once the feature is offers state-of-the-art technology with its package, Treasure Storm is a 40-/50-line triggered. Ainsworth also showed off new powerful Quadtronic processor, compact game targeted at the 5 and 10 Hong Asian-themed titles for its popular 4-level storage and premium sound system. On Kong cent denomination segments. The standalone progressive series, Quad Shot, the front end, there is an intuitive player progressive can pay out over HK$1 million at including Dragon Charm, Jade Emperor and interface supporting a 15-button play deck the top level and hits frequently at the lower Wings of Fortune. with a programmable button option. levels. The initial launch of Treasure Storm New South Wales-based Ainsworth Ainsworth is confident of success in Asia comes with a choice of three base games: Game Technology was founded in 1995 over the coming months. As CEO Danny 888 Blue Dragon, 888 Red Dragon and 888 by the legendary Len Ainsworth, long Gladstone states, “With the strong success Yellow Dragon. acknowledged as one of the fathers of slots of brands such as Double Hit & Quad Ainsworth is offering all its games with in Australia and the man who established Shot series combined with our continued jackpots. Other big Asian themes at its G2E industry heavyweight Aristocrat. Over commitment for providing high performing, Asia stand included the mystery jackpot the past few years, Ainsworth has greatly innovative and engaging games to the Snake Mystery, created to commemorate increased its share of the Australian market Asian market, Ainsworth looks forward to the Year of the Snake in 2013, and the high- and grown international sales, particularly an outstanding year.”
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Tech Talk
Happy Customers Customer relationship management analytics are helping casinos boost profits by attracting more guests and keeping them at the resort longer By James J. Hodl
t face value, a player’s club card does behavior,” Ms Osborn added. “Casinos can Graphics to view complex analysis, a process not really seem to be all that much—a then mine this data to micro-promote them that provides a better way to understand Aplastic card with a magnetic stripe for future visits based on their individual data and quickly identify patterns, trends that gaming properties started to use in the interests, and boost their loyalty and value.” and improvement opportunities. 1980s to promote customer loyalty while Naturally, these systems can gather and With gameViz, slot managers can gathering wagering information. track all sorts of wagering information— quickly identify underperforming machines But from this simple and inauspicious games played, hours played, size of wagers so they can take action to reconfigure the beginning a new dynamic technology has and much more. But there is also value in gaming floor, said Kimberly Armstrong, sprung—business intelligence (BI) and gathering consumer spending data from director of marketing at BIS2. “Rather than analytics systems, networks that gather bits other aspects of the gaming resort business pour through spread sheets hour after of patron data from a myriad of sources and such as hotel/resort facilities, retail purchases hour, managers can view all necessary use that information to generate greater and even on-premises restaurants. information on a single screen shot,” loyalty (by promoting more frequent visits) Ms Armstrong said. “The system notes and boost profits (by promoting longer Off to See the Viz how and where players are spending on playing time). There is currently a broad selection of BI participation games. And it culls data on “Casinos are facing increasing challenges devices on the market specifically designed how new machines are doing, how location in promoting and securing customers,” said to help casinos gather, parse and act on all affects performance, maps patterns of play Natalie Osborn, patron value optimization this information. One such product is BIS2’s such as how the end machines are doing expert at SAS Institute Inc. “Competition is gameViz, a data visualization BI software compared to center machines, and how the increasing as more casinos open nationwide, solution that allows casino operators to machines in walkways and near restrooms resulting in casinos fighting for guests.” directly interrogate their data, and see and restaurants are doing. This type of “To get an edge, casinos are resorting to the results visually using innovative and detail can be hard to see when you are business intelligence and analytics solutions powerful Super Graphics. Users are able to simply using machine and bank numbers.” that enable storage of detailed information understand and take action on their gaming A companion system performs similar on all patrons’ needs, preferences, value and data in a new way by utilizing BIS2’s Super analysis on table games.
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Tech Talk
program that enables quick analysis of program might also determine if a customer performance trends, identifying current and that visited a company’s casino in Mississippi potential issues and making more actionable might be a potential visitor to its Las Vegas decisions to optimize profitability concerning property and promote him accordingly, Mr game placement and promoting guests for Porter added. greater playing time. Incentive Play Storage Solution InTRact, a BI software product from Advanced analytics that enable one-to- Tech Results, not only analyzes the one level marketing to customers is included behavior of customers, but also computes A screen shot from gameViz, a data visualization BI in the Data Warehouse solution available what incentives might best spur patrons software solution produced by BIS2. from Teradata Corp. toward return visits and increased Already a popular program in casinos, satisfaction afterwards. These can be With gameViz, marketing managers this solution enables managers to free play credits, comps, discount offers, can see where specific groups of customers warehouse vast tidbits of information about giveaways, or a combination of several of are playing on the gaming floor. It pulls guests to create “a 360-degree view of these. Using this data, a casino also can mailing lists from casino floor maps by each patron,” said David Porter, director of assure the visitor is comped his favorite directly clicking on a machine or a group of hospitality solutions at Teradata. cocktail soon after arrival, or include machines and getting a list of players who Going beyond the choice of games and merchandise from his favorite sports team have played on those machines. And it pulls level of playing time and wagers, the solution as part of a promotional event. a list of players from a certain game type or gathers guest information about type of Once on the gaming floor, the program selection of machines and visually shows room and length of stay in the hotel/resort, continues to promote longer play by where else they play on the gaming floor. preferences of restaurants and menu items, targeting players with ticketless promotions The system further analyzes free slot play and use of the spa or golf course. The program that offer free credits, comps and even (or other promotions) by where customers sorts all behavioral data and develops loyalty- instant-winner games through its Free Play are redeeming their offers on the floor and generating promotions tailored to the Expansion Pack. identifies any patterns in profitability based personal level. Such promotions can be aimed “Free Play rewards can be much less on how the free play is used on the floor, Ms at bringing casual patrons into the casino more expensive to casinos that traditional cash Armstrong explained. often, or during periods when occupancy of giveaways,” said Lars Klander, president and the hotel is normally low. CEO of Tech Results. “And loyalty program Suite Situation Using this warehoused information, the members love receiving more chances to win.”
The CDI Global Suite program, introduced last year by Casino Data Imaging, offers improved visual analysis capabilities. Improved visual analysis is also offered by the CDI Global Suite program introduced last year by Casino Data Imaging. This program’s state-of-the-art platform encompasses all aspects of the casino floor in a visualization format including enhanced 2D and 3D graphics for slots, tables and player analysis. This method of presenting and analyzing data visually goes beyond reporting basic The data warehouse key performance indicators and color coding appliance from to more interactive, animated and actionable Teradata allows presentations, said George Levine, director operators to market of sales and marketing at CDI. GlobalSuite to customers on a thus provides a powerful yet user-friendly one-to-one basis.
40 INSIDE ASIAN GAMING | July 2013 Tech Talk
Plenty of SAS For casinos, this solution enables them base product is priced less than the cost of Predictive analytics is part of the SAS to focus on increasing profit by analyzing a typical senior-level data-based analytics Patron Value Optimization product offered data to separate the good customers from system, Mr Fine added. by SAS Institute. In addition to providing the less lucrative players and to target them As of February 2013, LaserPointCRM a suite of applications that include data with promotions to increase their patronage has been installed at six tribal casinos integration, data quality, data mining, and play. That includes looking beyond in California, Minnesota, Oklahoma and business intelligence and campaign average daily win to overall profitability Washington; and at the Palace Casino Resort management, the product analyzes ongoing of the customer, and projecting future in Biloxi, Miss. trends so that casinos can plan for them. profitability. For instance, if a show lets out at a specific time, casinos can plan to have the proper staffing while optimizing the pricing of the slot machines on the routes guests are likely to take. Going further, based on information The Fine Point Group’s LaserPointCRM helps casinos about customers taking advantage of drive more business in ever-more-competitive promotional specials, casinos can stock the markets. beverages and foods these customers prefer based on previous visits. “SAS Patron Value Optimization can also Stics Predictive Analytics solutions help transform Profitable Break data into insight. predict what incentives might prompt a The new kid on the block is Intermezzo customer to return to the casino based on Inc., which has begun to introduce a full their value,” said SAS’s Natalie Osborn. “For Fine-Tuning line of ClubLinq products designed to some it might be a free meal, but for high- Smaller casinos are the target market help casinos sort their patrons and then rollers a free room could make them your for LaserPointCRM, a database optimization promote future business based on known destination.” tool that requires no onsite hardware preferences. An advantage for casinos is that By analyzing past attendance patterns, or software and no incremental staff to the programs are designed to promote and the product might also advise not to hold operate. Introduced by The Fine Point Group, enable redemption of offers electronically, a promotion for a specific time frame so a Las Vegas consulting and management which greatly trims related costs, said Jeff as not to overtax the property and create firm, this cloud-based SaaS (software-as-a- Baldi, president and CEO of Intermezzo. dissatisfaction among customers by not service) product enables casinos to upload Already available is ClubLinq Identity, having enough rooms or other amenities their customer information to Fine Point which processes patron information for available, Ms Osborn added. and receive business marketing solutions a website content management system. answers (the company hates the word ClubLinq Offers, which will be available this “report”) by return e-mail. Building on the month, provides a “green” option to patrons customized database marketing solutions to receive direct mail promotions in their that Fine Point has been offering for the e-mail in-box. ClubLinq Redemption, set to past five years to casino operators in the US roll out soon, will enable a secure method and Canada, LaserPointCRM is a solution of patron expenditure for merchandise and in a box, said Randall A. Fine, founder and services through the casino’s proprietary managing director. source system. “It is not a ‘tool’ that gives casino “By enabling patrons to opt-in to marketers one more thing to add to offers ranging from free slot play to room The Patron Value Optimization system from SAS already busy schedules, but an answer for discounts over the Internet, casinos can save Institute used predictive analytics to help fine-tune how to drive more business in ever-more- big on the costs of marketing, printing and casino marketing programs. competitive markets,” Mr Fine explained. mailing, putting more revenue in profit,” Mr “Given that it leverages scalable cloud-based Baldi noted. software, we are able to offer it at a fraction Predicting Greatness of our customized, high-touch consulting Stics Predictive Analytics solutions services. And it allows both large and small also help businesses leverage the masses players alike to put the best, and most of information they collect and store, targeted, communications into the hands of The ClubLinq product from Intermezzo processes transforming data into insight for busy consumers.” patron information for website content management systems. professionals who need answers, not According to Mr Fine, LaserPointCRM complexity. These analytic solutions promises 10 times the customization of James J. Hodl is an Illinois-based freelance create profitability models that help typical casino direct mail programs, 15% writer and editor. He can be reached at casino managers make better decisions increases in revenue and profits, and a 50% [email protected]. by integrating more information to make reduction in the time a property spends Reprinted with permission from Casino distinctions among customers. to manage direct mail programs. And the Journal
July 2013 | INSIDE ASIAN GAMING 41 REGIONAL BRIEFS
Indian Businesses Want Betting Legalized to increase table inventory across all its properties from 147 to 500. The Federation of Indian Chambers of Commerce and Industry Pharoah’s Palace and Babylon are run as third-party-promoted is calling on the government of India to establish a commission to “satellites” under the casino concession of HK-listed operator SJM oversee a legalized gambling industry. Holdings. SJM has fee-based or revenue-sharing service agreements In a presentation to officials, federation Chairman Sanjiv Paul said with outside operators at 17 casinos around the city. Macau Legend India is losing “billions of dollars” in taxable revenue through black- is partly owned by SJM, and SJM and members of the family of its market sports betting. founder, Stanley Ho, reportedly have bought into the IPO. Japanese Betting is illegal in India as is casino gambling, except in the pachinko operator Dynam Japan is also reported to be a major tiny state of Goa and a couple of other small enclaves. Businesses investor. Dynam is interested in pursuing a casino license in Japan if represented by the federation want to change that and argue that the government there decides, as expected, to legalize the industry a commission with special powers to license and regulate a legal in the next couple of years. industry would realize “significant taxable income” for the country. An FICCI report says a body based on the UK Gambling Commission would also help to reduce money-laundering and Market Woes Nix Resorts World Manila IPO match-fixing, which has been the bane of professional cricket, the Joining Macau Legend, subcontinent’s most popular sport. Resorts World Manila has also fallen victim to the recent slump in the Hong Kong and Philippine Macau Legend IPO Squeaks Through stock markets. The Wall Street Journal reports that RWM, a popular mixed-use gaming complex adjoining Manila’s international airport, has put a proposed Resorts World Manila US$500 million initial public offering on hold as investors across the region have turned lukewarm on new share issues and are pulling out of developing economies. Resorts World Manila, a joint venture between a Hong Kong subsidiary of Malaysia’s Genting Group conglomerate and Philippine property giant Alliance Global, filed a prospectus for an IPO last month with a view to gauging investor interest in their expansion plans, which include a US$1.1 billion mixed-use casino and leisure The Fisherman’s Wharf entertainment complex complex, Resorts World Bayshore, under development at Manila’s new Entertainment City casino district. Casino, leisure and hospitality operator Macau Legend has held RWM, which opened in 2009, comprises three hotels, a shopping its significantly downsized public offering on the Hong Kong Stock mall, cinemas and a performing arts theater. The site of the country’s Exchange, raising a reported HK$2.2 billion. The stock was listed on largest casino, it has been far and away the Philippines’ market leader the HKSE on 5th July. in gaming revenue. A successful listing would have been the biggest The Wall Street Journal says 934.8 million shares were sold at a offering in the Philippines this year. price per unit of HK$2.35, which is near the bottom of the offering’s Travellers International Hotel Group, as the joint venture is expected range of $2.30-$2.98. called, says it is still shooting for an IPO later this year, sources told The sale, equivalent to US$282 million, works out to only 36% the Journal. of the HK$6 billion-plus (US$770 million) the company targeted in a filing last month as it apparently was swept up in global fears of a credit crunch in China which have battered Asia listings over the Vietnam Plans To Tax Winnings past few weeks, among them Macau’s leading casino operators. The Vietnam’s Finance Ministry is proposing a 10% tax on casino company had delayed the offering at first, hoping not to have to winnings over US$475 (VND10 million) despite a warning from a lower it by more than half. top official that it will discourage gamblers from patronizing the Macau Legend owns the Fisherman’s Wharf entertainment country’s foreigners-only casinos. complex along Macau’s Outer Harbour and operates two casinos A report on the English-language Web site of Tuoi Tre News says and a hotel in the city. The bulk of the offering’s proceeds initially the levy is included in a draft revision of the tax code being circulated were earmarked for a refurbishment and expansion of Fisherman’s by the ministry and took effect on 1st July, so it will apply to the new Wharf with the addition of three tourist hotels, one of which calls Grand – Ho Tram Strip casino opening later this month on the South for a 117-table casino. The complex already contains a casino, the China Sea coast about 70 kilometers from Ho Chi Minh City. Babylon, with 23 public tables and an undisclosed number of VIP The tax has come under fire from the top revenue official in the tables. The company also operates the Pharaoh’s Palace Casino at the northern province of Lao Cai, home to a casino located in the Lao Landmark Hotel downtown, with 123 table games, and says it wants Cai International Hotel that caters to Chinese gamblers. Speaking
42 INSIDE ASIAN GAMING | July 2013 REGIONAL BRIEFS
Foreign tourism is seen by South Korea as a growth industry with special promise, and officials appear to want to encourage its development. The Incheon FEZ is considered a key to this effort because of its proximity to China. The government has approved one resort casino for Incheon to date, a joint venture between Paradise Group, one of the country’s leading operators of foreigners-only casinos, and Japanese pachinko giant Sega-Sammy. Universal, a machine gaming giant with subsidiaries worldwide and casino plans in the Philippines, was not immediately available for comment. The company’s Philippines ambitions, centered on development of a multibillion-dollar resort in Manila, have stalled over bribery allegations that are under investigation by the country’s National Bureau of Investigation and the US Justice Department. Mr Okada was ousted as a director and major shareholder of Wynn The new Grand – Ho Tram Strip Resorts after an in-house investigation found what it considered evidence of wrongdoing related to the Manila development. at a recent session of the National Assembly, Nguyen Thi Kim Yen Universal and Mr Okada are challenging those findings in a lawsuit in said casinos already are paying “very considerable” corporate and the United States. The company also strenuously denies the bribery consumption taxes and warned that the additional tax will drive allegations. foreigners away. The country’s eight casinos are growing revenues at a robust annual average of 10-15% a year, according to the Finance Ministry. Okada Clears Philippines Hurdle They paid VND1.5 trillion in total taxes (US$72 million) in 2011. Though thwarted in South Korea, Kazuo Okada appears to have The casino at the Lao Cai International, owned by Donaco overcome an impasse in the Philippines. His search for new local Singapore, is paying upwards of $10 million a year in tax (VND100 partners there has uncovered a couple of unnamed groups reported billion-200 billion), Ms Yen said. to be interested in helping the Japanese machine gaming tycoon Donaco is controlled by family members of Genting Group move forward with his planned megaresort in Manila. Chairman Lim Khok Thay. Eagle II Holdings, the landowner operating under the umbrella of Mr Okada’s Tiger Resort Leisure and Entertainment, said it has concluded a memorandum of understanding with the two entities Caesars, Okada Rejected in South Korea to sell them 60% of Eagle II, thereby enabling Tiger to satisfy the The government of South Korea has country’s 40% limit on foreign ownership. denied the casino license applications Mr Okada’s original partnership with Philippine property giant of Caesars Entertainment and its partner Robinsons Land fell apart earlier this year after the two failed to Lippo Group, as well as Kazuo Okada’s agree on terms. Universal Entertainment. Tiger President Masahiro Terrada told The Philippine Star the The Ministry of Culture, Sports and entry of the two companies will allow the group to complete its Tourism gave no reasons for the decisions, Entertainment City Manila resort on schedule in the first quarter of according to a Reuters report, but a 2015. Manila Bay Resorts, as it’s called, is slated to include three hotels government official with knowledge of with a total of 2,000 rooms, a casino, restaurants and high-end retail, the matter told the news agency the cinemas, MICE space and other attractions. Its cost is pegged at US$2 decision reflected concerns about Las Kazuo Okada billion, about half of which includes a luxury residential component Vegas-based Caesars’ credit rating. to be developed in partnership with Philippine real estate tycoon Moody’s Investors Service lowered its ratings on the company and Andrew Tan. assigned a negative outlook in April, citing adverse gaming revenue trends. Lippo, an Indonesian conglomerate, has holdings across East Asia in retail, banking and finance, media, real estate, hospitality, energy, IT and health care. The consortium said it was “surprised and disappointed” and believed it had met the license requirements. The partnership had applied in January for permission to develop a mixed-use resort with gaming in an area designated by Rendering the government for development near the international airport in of Kazuo Incheon, not far from the capital of Seoul. Six of these so-called Okada’s “free economic zones” have been set up around the country to planned spur domestic and foreign direct investment via tax breaks and Manila other benefits. megaresort
July 2013 | INSIDE ASIAN GAMING 43 INTERNATIONAL BRIEFS
Lawrence Ho Planning Casino in Russia turned up malfunctions in the mechanism that lowers the lifeboats Lawrence Ho is striking out and in emergency sources of power. on his own, pursuing a casino “The Coast Guard has provided the owners of the ferry with a list deal in Vladivostok. of discrepancies and will be re-evaluating both the vessel and the The co-chairman of Macau’s crew when repairs and training are complete,” she said. Melco Crown Entertainment Despite the setback, the SuperFast held its launch party last has signed an agreement to month, attended by a reported 600 guests that included Genting develop a property in Russia’s executives, Bahamian dignitaries and officials with the local Miami- designated Far East casino Dade County government. zone, known as Primorye, The vessel, which travels at up to 30 knots and is slated for two according to a report inThe Wall trips a day between the Port of Miami and Resorts World Bimini, is Street Journal. integral to Genting’s Bahamas strategy. The company has committed Mr Ho’s is the first big name US$11 million for improvements to a Miami marine terminal to associated with the zone, one Lawrence Ho handle it and will pay the port $7 million a year in rent. of four the government has set “The whole Resorts World Bimini experience is extended to the aside for casino development after the industry in 2009 was banned Bimini SuperFast,” Genting Group Chairman Lim Kok Thay recently from Moscow, St. Petersburg and other major cities where it was told Malaysia’s English-language Sun Daily. “It’s a double enjoyment flourishing virtually unregulated and only lightly taxed. The other experience. This new resort will attract many new visitors from the zones, all relatively remote, are Kaliningrad in Eastern Europe, the US and other countries.” Altai region in Central Asia and in the lower Don River region near Resorts World Bimini opened on 28th June as a joint venture the Black Sea. between Genting’s listed Genting Malaysia subsidiary and RAV Mr Ho’s investment is being made through a Hong Kong-listed Bahamas, the developer of the 750-acre complex, which features entity called Summit Ascent Holdings, one of five bidders the luxury villas, shopping and dining, a marina and other attractions. Primorye government has selected to present casino proposals. The 10,000-square-foot casino contains 15 table games and 153 slot It is not known how many will be selected or when, according to machines. the Journal. The Russian zones have yet to strike a chord with investors, so to encourage development Primorye is offering low capital Gambling in UK Surpasses $9B minimums and tax breaks resulting in an effective levy on Gambling in the United Kingdom generated an increase in gross gambling revenue of zero. revenues of 5% in the last financial year to US$9.48 billion. No details were available on Summit’s project except that plans The latest figures from the Gambling Commission, covering call for it to open in the second half of 2014 at a site about seven the 12 months between October 2011 and September 2012, miles from Vladivostok airport. show all sectors—betting, casinos, lotteries, remote and bingo— The attraction of Primorye is its relative proximity to northeast experiencing growth with the exception of arcades. China, the Koreas and Japan. Beijing is about two and a half hours Betting continued as the country’s largest market, good for 50% from Vladivostok by air, Harbin less than two hours. Casinos are of all revenues. Casinos accounted for 15%, remote gambling 13% prohibited in both China and Japan. South Koreans are permitted to and bingo 12%. gamble in only one casino in their country. Fixed-odds machine games mimicking roulette, blackjack and other casino games remained the biggest driver of betting shop revenues, generating $2.2 billion, an increase of 4.5% year on year. US Coast Guard to Genting: Not so Fast Remote gambling also exhibited healthy growth, up $129 million Genting has expanded (12%) to $1.2 billion. its presence in North America with the opening of a casino in the Bahamas, US Waives More Visas but a key element of the Applicants for visas to visit the United States are seeing wait strategy— a cruise ship for times improve dramatically, and more countries are being added to whisking US players to the the government’s visa waiver list. new luxury resort—has hit A few years ago, waiting for an interview appointment to apply rough waters. for a visa could take up to 120 days. By increasing staffing in many of The 32,000-ton Bimini SuperFast, replete with roulette and the areas most affected, including China and Brazil, many of those blackjack tables, slot machines, a restaurant and a nightclub, is being waits have been cut significantly, the government says. In Bangkok, held in Miami by the US Coast Guard after failing a safety inspection. citizens can get an interview in 15 days. From Amsterdam, it’s 23 The 11-year-old vessel, built in Germany and originally certified in days. Buenos Aires residents only have to wait two days. Panama, was plying the Greek islands before its arrival in American “Facilitating travel to the United States from legitimate visitors is waters, but it has foundered on the Coast Guard’s more stringent one of our highest priorities,” said Ed Ramotowski, deputy assistant requirements. A Coast Guard spokeswoman said the crew was cited secretary of the State Department’s Bureau of Consular Affairs. for “overall lack of proficiency” in a lifeboat drill, and an inspection The international travel industry generates more than US$168
44 INSIDE ASIAN GAMING | July 2013 INTERNATIONAL BRIEFS
billion in economic activity for the country each year, and overseas Leonardo Rapadas, who maintains the machines are illegal because visitors spend an average of $4,500 per trip. Guam law prohibits licensing gambling devices. The Tax Department In fiscal 2012, the State Department issued almost 9 million justified its action on the basis of administrative rules and regulations visas worldwide, an increase of nearly 19%. In China and Brazil, the that are less clear on the matter. Mr Calvo likewise disagreed with demand increased 34%. Mr Rapadas’ assessment, saying his office had reviewed the laws and Those numbers are expected to increase as the government determined the machines are operating legally. continues to expand the Visa Waiver Program, which currently numbers 37 countries. Taiwan joined in November 2012, making it the newest country added. Most of Europe is in the program, as are Hialeah Park Casino Selects MEI Cash Management major Asia-Pacific nations such as Japan, Singapore, Australia and Solutions for Opening New Zealand. Chile recently was nominated for inclusion. The program allows citizens of participating countries to travel to the United States visa-free for stays of up to 90 days for business or pleasure.
Guam’s Senate Votes to Phase Out Gambling Guam’s Senate has passed a bill to make all gambling in the US territory illegal after the government pays off the debt of its financially troubled public hospital. A report in Pacific Daily News says the sunset provision, which passed unanimously, is contingent Hialeah Park Casino on gambling continuing until its proceeds are sufficient to retire the roughly US$18.8 million The Hialeah Park Casino has specified all its 882 slot machines Guam Memorial Hospital owes vendors for services to uninsured use both SC Advance and EASITRAX Soft Count. patients and for bad debt. “We are very confident that MEI is the right partner for us and However, the precise amount of the debt hasn’t been will assist us in our number one goal of providing a great customer determined, the newspaper said, and the $18.8 million figure, an experience on the casino floor as it relates to the note acceptors,” estimate as of March, will not be part of the final version of the bill said Steve Calabro, Hialeah Park Casino vice president and general sent to Gov. Eddie Calvo, who will have 10 business days to decide manager of casino operations. “MEI’s consultative approach— how to act on the bill. combined with its impressive resume—gave us the confidence The measure comes after several days of heated debate over to not only specify MEI, but use its products as core elements to the island’s gambling machines and whether gambling is legal on implementing a comprehensive cash management system. the Pacific Ocean island, the largest of the US Commonwealth of the “Additionally, labor savings from a streamlined drop process Northern Marianas. and customizable reports driving proactive maintenance practices Voters earlier this year rejected a proposal that would have will help us be efficient from day one. Knowing MEI’s experience, legalized commercial bingo at the Guam Greyhound Park. The and its commitment to the profitability of its customers, offers measure also had been a subject of intense public discussion. tremendous confidence.” Supporters, led by Guam-Japan Friendship Village, said commercial SC Advance has evolved from the industry-proven CASHFLOW bingo would boost the island’s economy and benefit educational, SC note acceptor, and according to the company it applies “new health and safety programs through a 20% “business privilege tax” technology and market knowledge to make a great product even on gross income. Opponents said it would hurt non-profit entities better.” It features enhanced recognition technology, faster note-to- that rely on charity bingo for fund-raising and would lead to other note speed, improved barcode recognition and capacity to accept forms of gambling. Non-profit bingo generated more than $10.5 more than 100 different currencies and denominations. SC Advance million in sales in 2011 and paid out $8.7 million in prizes, according also claims the industry’s best acceptance rate for valid street-grade to local reports. notes, including those that are wet, crinkled or torn. Meanwhile, a separate bill to tax gambling machines and establish The ability to enhance SC Advance with EASITRAX Soft a Guam Gaming Commission died last month amid ongoing fighting Count, which is now installed in over 100,000 games worldwide, between the Attorney General’s Office, the Tax Department, machine has evolved MEI’s role as a components supplier to a cash owners and lawmakers on all sides of the legality issue. management partner. EASITRAX is an integrated software/ The Tax Department renewed licenses for more than 200 hardware system that boosts casino profits by streamlining the machines last month over the objection of Attorney General overall cash management process.
July 2013 | INSIDE ASIAN GAMING 45 Events Calendar
9 – 11 July, 2013 24 – 26 September, 2013 World Gaming Executive Summit (GES) 2013 Global Gaming Expo (G2E) 2013 W Hotel, Barcelona, Spain Sands Expo Convention Center, Las Vegas, USA The 7th annual World Gaming Executive Summit is the gaming G2E is the world’s largest gaming event where gaming conference for CEOs and the senior management teams from executives, buyers, and industry professionals meet each elite online and offline operators and their partners. The event fall in Las Vegas to conduct serious business. It’s the gaming brings lottery and gaming executives together as it is co- industry’s most in-depth source of new products, networking, located with the Global Lotteries Executive Summit. ideas and information. G2E showcases over 600 exhibitors, 100 Website: http://www.terrapinn.com/2013/wges/ conference sessions and exciting special events. Website: http://www.globalgamingexpo.com/ 23 – 25 July, 2013 Casino Marketing Conference 8 – 10 October, 2013 Paris Las Vegas Hotel and Casino, Las Vegas, USA European iGaming Congress & Expo A hard-hitting, straight-talking, no-holds-barred senior- Fira Barcelona, Barcelona, Spain level conference for casino marketing executives addressing Forward thinking, innovative and interactive, with new marketing challenges across all facets of the gaming industry, features and formats spanning both the congress and the expo including commercial casinos, tribal casinos and racinos. floor, EiG goes into its 12th year with a 360 degree focus on the Website: http://www.casinomarketingconf.com/ iGaming industry. Website: http://www.eigexpo.com 12 – 14 August, 2013 Gaming, Racing & Wagering Australia 12 – 14 November, 2013 Sydney Convention and Exhibition Centre, Sydney, SAGSE Australia Costa Salguero Convention Center, Gaming, Racing & Wagering Australia returns in 2013 as the Buenos Aires, Argentina official conference of the Australasian Gaming Expo, the Now in its 21st installment, the South American Gaming Supplies Australia’s largest trade show for the gaming and hospitality Expo & Congress held in Buenos Aires attracts gaming industry industry. professionals from around the world with a view to doing Website: http://www.GamingDownUnder.com business in South America. The latest gaming technology will be on display and the event also offers networking opportunities. Attendees include Argentinean and Latin American regulatory authorities, directors, manufacturers, national and international 13 – 15 August, 2013 operators, and many international visitors. Australasian Gaming Expo (AGE) Website: http://www.monografie.com/sagse_bsas/ingles/ Sydney Convention and Exhibition Centre, Sydney, Australia Featuring more than 180 exhibitors across 15,000 square meters of exhibition space, the Australasian Gaming Expo is easily the biggest event of its type in Australia. Visitors have long acknowledged that the world’s best and latest gaming and hospitality equipment is on show at the Expo for gaming and hospitality executives from around the Asia-Pacific region. Websitge: http://www.austgamingexpo.com
denotes events where Inside Asian Gaming will be available. To list your event here and on our website, email [email protected].
46 INSIDE ASIAN GAMING | July 2013