July 2010 • MOP 30 • ISSN 2070-7681
Electric Dreams Macau’s cap on live table numbers could be a golden opportunity for the electronic variety
Marina Bay Sands In Focus: Game Changer
The Philippines: All Change? | Mentor the Dragon: Macau Policy | Junket Market View: Tough Love? Top Table: NRT Technology Corp | Fortune’s Wheel Turns for IGT
CONTENTS July 2010
Electric Dreams
6 Electric Dreams
12 Game Changer
18 All Change?
20 Tough Love
22 Mentor the Dragon
26 Top Table
28 Winner Takes All
30 Singles Champion
31 The Power of Ten
32 Pinball Wizard
33 Fortune’s Wheel Turns for IGT
35 From VIZION to Reality
36 Player Power
38 Survival Island
42 Loyalty Costs
44 Regional Briefs
46 International Briefs
48 Event Calendar
18 2 3 Editorial
Our Friends Electric
“We believe that electricity exists, because the electric company keeps sending us bills for it,” said Dave Barry, an American humorist. We also know electronic gaming tables exist, because the equipment manufacturers keep selling them into the market and invoicing the casinos for them. But in the traditionalist table gaming destination of Macau, can electronic tables ever be more than bit part players? The answer is probably ‘yes,’ but not an unqualified ‘yes’. Just as some slot machine games are more popular than others, so some electronic table games are likely to outperform others. The deciding factor may be not how closely the electronic table mimics the play style of the traditional table, but how effective the game is at delighting most of the people most of the time. Let’s not forget that for every ‘traditional’ table game popular in the East or West today, there are hundreds if Publisher not thousands of table games played over the centuries that no one now has heard Kareem Jalal of. Baccarat, blackjack, sic bo and the like are effectively either hybrids or survivors of ‘products’ that are now lost in obscurity. Director In that context and in the long run, the issue may be not whether electronic table João Costeira Varela games can be Wal-Mart versions of live games, working simply by offering smaller Editor overheads and lower minimum bets, but can they cater to a distinct and possibly new Michael Grimes segment of the market? Suppliers tell us, for example, that young people brought up using Apple’s iPhone love Business Development Manager the experience of touch table betting. Beginner gamblers with more conservative tastes seem Domingos Abecasis to prefer taking their first steps on an automated table version of a traditional game, rather than facing the bear pit of a live game surrounded by experienced and sometimes impatient Contributors players. That may account for the trend observed in Singapore following the opening of the Desmond Lam, Steve Karoul two integrated gaming resorts, for single station electronic games. I. Nelson Rose, Richard Marcus Shenée Tuck, James J. Hodl Perhaps for a new generation of players, electronic table games are the equivalent of Andrew MacDonald electronic flight simulators—a safe place to learn before moving into the wider world. The William R. Eadington assumption behind that thought, however, is that electronic tables are not the ‘real thing’ and that self respecting gamblers will always—if not driven purely by bet price—want to go Graphic Designer mano a mano with their peers at a live dealer table. Brenda Chao We’re not so sure. With Macau’s casino revenue growing 65% year on year in June, the government’s cap on live table games could be just the opportunity the electronic table Photography segment needs to bust out of its Cinderella role and grab more of the limelight. Ike For the sceptics, here’s a closing thought: “The horse is here to stay, but the automobile is only a novelty; a fad.” Inside Asian Gaming is published by — The president of the Michigan Savings Bank advising Henry Ford’s lawyer, Horace Must Read Publications Ltd Rackham, not to invest in the Ford Motor Co in 1903. 8J Ed. Comercial Si Toi Michael Grimes 619 Avenida da Praia Grande We crave your feedback. Please email your comments to [email protected] Macau Tel: (853) 2832 9980
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http://www.gamingstandards.com 4 INSIDE ASIAN GAMING | July 2010
Electric Dreams Macau’s cap on live table numbers could be a golden opportunity for the electronic variety
lectronic table games have long been There’s just one problem. There is as touted by equipment manufacturers yet little consistent, strong evidence that Eas the casino equivalent of the players in Macau are willing to migrate en philosophers’ stone. In Western culture, masse from live table games to electronic the philosophers’ stone was a legendary ones, or to view them as a viable alternative alchemical substance, supposedly capable of if live tables are too full. At Chinese New turning base metals, especially lead, into gold. Year, most players would rather crowd The magical allure of automated or semi four-deep around traditional live tables automated table games—particularly in the with minimum bets pushed up as high as Macau market—is their supposed ability to HK$300 than take their chances with the deliver play on much wider margins than automated baccarat tables. traditional live table games because they don’t need expensive and scarce local dealers Against the tide to run them. In the first quarter of this year, There are some notable exceptions to the median monthly wage for a table dealer this general aversion to electronic table in Macau was MOP13,000 (US$1,620). That’s games. Aruze’s Lucky Sic Bo has proven a hit actually higher than the monthly wages paid on mass floors in Macau as compared to the to dealers in the new Singapore integrated traditional hand-shaken dice version. That’s resorts. Dealer salaries at Marina Bay Sands in part because of the clever ‘bash button’ average S$1,800 (US$1,293), according to feature that allows players the illusion of industry analysts, while at Resorts World control once the automated dice shaking Sentosa the average is reportedly S$2,000 has commenced. It could also be because in (US$1,437). China’s relatively low-trust culture, players Lucky for some—Aruze Lucky Sic Bo
6 INSIDE ASIAN GAMING | July 2010 Cover Story
are more inclined to put their faith in an to adopt electronic tables overnight,” adds Macau players definitely aren’t stupid, automated shaker with its dice hermetically the source. but they do seem to be quite conservative sealed in a transparent container, rather In Macau, numerous attempts by in their tastes. They know what they like and than in loose dice shaken by a flesh and equipment suppliers to replicate in they like what they know, and so far what blood dealer on an open casino table. From electronic game form the card peeking, card they like is live baccarat with a flesh and the players’ near-paranoid perspective, who squeezing and general adrenalin-pumping blood dealer. knows what subterfuge could be going on action of live baccarat have been met not so On the face of it, an electronic gaming behind the scenes? much with rejection by players as with sheer system that yields on occasions an extra On the downside for the electronic indifference. Why bother tasting the casino 1.2% house edge to the player compared games lobby, Paradise Entertainment’s gaming equivalent of a hamburger on an to the average live dealer version, doesn’t attempt back in 2008 at creating a niche electronic table when you can dine on prime sound like a natural winner with casino Macau property with a floor entirely steak at the live table? managements. Mr Kinsman stressed, populated by hybrid tables (i.e. electronic That has led some suppliers and some however, it’s a win-win situation for player table games with live dealers) at the operators to market electronic baccarat in and house. SJM-licensed legacy casino Kam Pek on Macau on the value proposition of smaller “At the mass gaming end [of the market], the Macau peninsula, was not a roaring minimum bets because of the lower live table utilisation might only be four to six success. Electronic table evangelists point overheads involved. Unfortunately, rather hours a day, but operators still have to staff out, however, that this may have been than creating a loyal following among value- those live tables,” he pointed out. more a function of the quality of Paradise’s conscious players, the strategy seems to have “They would be better off having some equipment and its marketing strategy than placed electronic baccarat in a kind of ghetto electronic tables around.” of the soundness of the concept itself. as a poor man’s table game suitable mainly In Singapore, by contrast, there seems for the retired and for domestic workers. New day dawns much more acceptance by the players of Well, finally the prospects for electronic electronic table games. TCSJOHNHUXLEY Marketing mish mash table games in Macau could be about to reports almost constant 100% occupancy Yet, arguably, that style of marketing change for the better. There are a number of of its Novo Unity™ II TouchBet® Roulette is approaching the electronic baccarat reasons for that. The first is that the Macau terminals since they were installed at RWS. issue from the wrong end of the spectrum. government’s 5,500 cap on the number Alfastreet says the same about its SI Line Suppliers and operators should instead of live tables in the market between now Modular standalone roulette terminals be focusing on the fairness of electronic and the end of 2012 could soon mean that delivered to RWS. But then Singapore is baccarat for the player. beggars cannot be choosers—i.e., if the not as baccarat obsessed as Macau. In fact, As David Kinsman, Chief Executive gaming market keeps growing in excess of suppliers report to Inside Asian Gaming Officer of Singapore-based Weike Gaming 65% year on year without a corresponding that the operators have actually been Technology told IAG at G2E Asia last year: increase in table inventory, then in some taking some baccarat tables off the mass “Electronic gaming has a direct benefit for gaming rooms if players want to get a game floors at the Singapore integrated resorts players because it gives them the real, true, it will be electronic tables or nothing at all. and replacing them with either blackjack odds of the game. tables, slots or electronic table games—in “An electronic baccarat table runs at particular roulettes. 1.8% [house advantage]. A live baccarat table in Macau runs at up to 3%. Where’s the Clear case player better off? The players will realise that The value proposition in operational very quickly. They’re not stupid.” terms from manufacturers to casinos regarding electronic table games is very clear and hardly disputed, even in Macau. They virtually eliminate payout disputes, accounting mistakes and old fashioned fraud, and they maintain steady 24-hour Sheldon Adelson—a convert to electronic tables? operation with no sick leave and no bad moods. Yet none of that really matters if no The leader of the ‘necessity is the one wants to play them. mother of invention’ revolution appears to “Any time you try and migrate an be Sheldon Adelson, Chairman and Chief established market to a different product, Executive of Las Vegas Sands Corp (LVS). you’re going to have issues,” says a senior During the company’s earnings conference gaming executive spoken to by IAG. call for the first quarter of 2010, Mr Adelson “You can’t take someone who is used to said that Sands China will put 100 electronic betting HK$500 a hand and squeezing the table games on the floor of its US$4.2 billion cards and having the people slam the table Cotai 5 and 6 extension. on a winning point, and then expect them David Kinsman—electronic baccarat fairer That doesn’t seem to have been the
July 2010 | INSIDE ASIAN GAMING 7 Cover Story
still open,” stated Mr Leven. “We will move some tables that we are not using in the other facilities as well as adding electronic games. So the numbers that we projected are the numbers that are in the loan documents and have been approved by the banks.” Mr Adelson added: “We are adding [to Cotai 5 and 6] 100 electronic table games, which offer some very good potential. We’re going to try different electronic table games,” he told analysts. How much Mr Adelson’s statement represents inherent faith in the business proposition of electronic games and how much it’s a case of necessity is open to debate. Slick operation What can be said is that if Sands China decides to put its slick marketing operation Cotai 5 and 6 behind electronic table games, then they are likely to have a better chance of being company’s ‘Plan A’. Back in November 2009, know that we will open with enough tables programmed for success in Macau than they LVS said in a filing to the US Securities and in 5 and 6 to justify the numbers that we have been previously. Exchange Commission addressed to would projected in the loan documents. That will “Already suppliers are vying for that be lenders that it intended to stock Cotai involve moving some tables from some of electronic table business in Cotai 5 and 6,” 5 and 6 with 670 gaming tables and 2,200 our facilities, as well as the addition of some says the gaming executive spoken to by IAG. slots. Then came the government’s live table electronic games.” “People are already trying to get cap, and the rest is history. new product into existing properties so LVS said in its Q1 2010 earnings they can create a market-tested value conference call that it had been promised proposition to Sands China on Cotai 5 and in writing 400 new tables for phase one, 6,” adds the insider. due to open in the third quarter of 2011. If Of course, some electronic tables are that’s the case, it means the government has more electronic than others. There are tables, already broken its own cap. At the end of such as Walker Digital Gaming’s Perfect Pay the first quarter this year, there were 4,811 Baccarat, with radio frequency identification tables in the Macau market. Encore at Wynn tags in the chips and antennae on the table Macau added another 61 when it opened in mid-April, and Galaxy Entertainment Group says it has been told it can have 400 when it opens its Galaxy Macau resort on Cotai in the first quarter of 2011. That would take the market total to 5,272, leaving (in theory) only 228 for Sands China to play with when phase one of Cotai 5 and 6 opens. Michael Leven—government assurances Guarantees Michael Leven, President and Chief Mr Leven was asked to clarify whether Operating Officer of LVS, scotched the idea the 400-table figure included under-utilised of LVS facing any table shortfall on Cotai tables the company might choose to move 5 and 6. from its other properties to Cotai 5 and 6. His Mr Leven stated during the earnings answer was unequivocal. call: “We’ve been assured in writing [by the “No. It’s 400 new tables plus 2,200 Macau government] of 400 tables to start slots. We [also] have assurances from the with and their assurance is of reviewing government that they will work with us to tables as we go over the next couple of get additional tables by the latest in March years. Our expectation is and our lenders of 2013. But if that doesn’t happen, we will Walker Digital Gaming’s Perfect Pay Baccarat
8 INSIDE ASIAN GAMING | July 2010
Cover Story
sympathetic the regulator is to the industry’s position. A good example recently is in the United Kingdom, where a manufacturer was able to get the regulator to designate its electronic poker table game as a table game, rather than an EGM. The advantage in that particular case was that the supplier was selling into a casino where there was a strict limit on the number of slots allowed, but a looser restriction on the table quota. Given the recent superheating of the Macau gaming market, is there even an argument for putting a cap on the number of EGMs allowed in Macau? Does it make sense to close the front door of casino TouchTable MultiPLAY Roulette expansion by capping the number of live tables, while at the same time leaving the to track all betting and payouts. They offer licensed and regulated as an EGM, then it back door open for EGMs? wonderfully efficient tableside accounting, stands a better chance of killing two gaming There is a potential political problem to player tracking and many more hands per birds with one stone—maximising the that approach. Given that it seems mainly to hour, but otherwise in look, feel and playing number of players using it, and minimising be Sands China that is suffering the most from style appear just like a ‘traditional’ table. the table overheads, thus boosting profit the fallout of the table cap, were the Macau There are tables that can be switched from margins. government now to impose restrictions on full automation to attendant operation “You don’t have to be a genius to electronic games, it could look dangerously to fully trained dealer mode at the flick realise that even with the capital costs of like an anti-LVS stance, rather than a policy of a switch or a series of switches, such as an electronic table, the much lower annual for the good of the community and the TCSJOHNHUXLEY’s TouchTable MultiPLAY licensing costs to the government mean you economy as a whole. Series. There are tables with voluptuous or can maintain a reasonable margin on a much “There has certainly been some talk of hunky (depending on the clienteles’ tastes) smaller handle than is generally achieved by an electronic table games cap,” says Ricardo virtual dealers on video screen. There are a traditional table game.” Siu, Associate Professor of Economics and even tables with robotic arms adapted from International Finance at the University of car factory assembly lines, dealing cards to Cap for electronic tables pondered Macau and an acknowledged authority on players with all the charm and personality The history of regulation in some the VIP gaming sector in Macau. of Star Wars’ R2-D2 repairing Queen Padmé markets is that tables with an element of “The progress on it doesn’t seem very Amidala’s starship. electronic functionality are sometimes advanced. That’s because of the fact that designated as slots, and sometimes as since the middle of last year the Macau What’s in a name? tables. How they end up being defined government and the DICJ really wanted to How a table is designated—i.e. as an can depend on some extent to how well focus on the VIP segment first. Whether the electronic gaming machine (EGM) or as a or how convincingly the manufacturer government would return to this issue later live table—matters for all sorts of reasons. lobbies the regulator, or indeed how is hard to say at this stage.” Not the least of them is that an EGM designation in Macau means a much lower annual government licensing fee than for a live table. “On a mass [live dealer] table, as an operator you’re paying MOP100,000 a year per table in government licensing,” says the gaming executive. “The most expensive licence is for a VIP table. If the DICJ [Macau’s gaming regulator] isn’t telling, then I’m not telling. But it’s a lot of money. “On an EGM, you’re paying MOP1,000. The licensing fees are calculated by revenue,” explains the source. If a table product can stay close to the look and feel of a traditional table but be
10 INSIDE ASIAN GAMING | July 2010
Marina Bay Sands
Game Changer With Marina Bay Sands—the world’s most expensive casino resort—now officially open, expect a shift in Singapore’s nascent gaming landscape
Dr Miriam and Sheldon G. Adelson at the Marina Bay Sands Opening Celebration Gala Dinner
t the June 23rd grand opening the cast of Las Vegas musical phenomenon opening glitches of such a project. ceremony of the US$5.7 billion Marina Jersey Boys and LVS stalwart Diana Ross, ABay Sands (MBS), ever-brash Las who also performed at the Venetian Macao Continental shift Vegas Sands Corp (LVS) Chairman Sheldon opening in August 2007. Grammy-award On the eve of the MBS grand opening Adelson declared his integrated resort (IR) winning singer and former member of ceremony, Mr Adelson said he expected 90% would “forever change” Singapore’s image Destiny’s Child, Kelly Rowland, performed of LVS revenue to come from Asia by 2020. and give the country’s tourism industry a an outdoor concert for the general public. The company’s Macau operations already major boost. Climbing relay teams also scaled the façade accounted for 73% of its revenue at the end Though MBS is now officially open, of one of the hotel towers to entertain the of last year. the property is still experiencing teething crowds outside. Although the finishing touches are still troubles. VIP guests checking into the newly Throughout MBS, there are tell-tale being put on MBS, Mr Adelson is already opened third hotel tower for the big opening signs of the rush to complete the mammoth talking of his desire to open a casino in South bash complained of long waits to check in, property to schedule, including blotchy paint Korea, and said he was looking at developing and when they got up to their rooms, they jobs and unpolished finishes. These are stray a Las Vegas-style strip complete with luxury were faced with the challenge of getting details, however, and the kinks will be ironed hotels and spas in either Italy, Greece or ready for the gala dinner without hot water. out over the coming weeks. Judging by the Spain. This follows comments in December Still, the VIP dinner itself went off happy faces bopping along to Ms Ross’s that his company is “actively looking” at without a hitch, featuring the requisite closing performance, MBS has cultivated projects in Japan, Taiwan and India. Chairman speech and performances by sufficient appeal to counteract the inevitable A Bloomberg poll of 13 analysts resulted
12 INSIDE ASIAN GAMING | July 2010 in an average forecast EBITDA [earnings crowded than the rest of the main floor. before interest, tax, depreciation and amortization] for MBS of US$329 million in Enlightened design 2010. According to MBS CEO Thomas Arasi, There’s a night-and-day difference the property attracted close to 500,000 between the main gaming floors at MBS and visitors in June. Mr Arasi said he expects RWS. The RWS casino follows the old school MBS will attract 70,000 visitors a day once casino design concept of low ceilings and dim it is fully open. lighting, while MBS takes the revolutionary In a June 3rd regulatory filing, LVS stadium-style design of Sands Macao and estimated it will generate as much as US$3 makes it even brighter and grander. billion in adjusted EBITDA in 2011. The Unverified insider reports suggest the company’s majority-owned Hong Kong- RWS casino is still pulling in more high-rollers listed unit, Sands China, may generate US$1 than MBS, perhaps owing to established billion to $1.2 billion in 2010, it added. relations between VIP players and RWS operator Genting at its Malaysian property, Crowd control or even that RWS is offering VIPs better The MBS casino is set to feature 500 incentives. If the Macau market is any guide, gaming tables and 1,600 slot machines. however, relationships between casinos and With MBS gearing up, the immediate high rollers are hardly loyal, and once MBS result seems a tempering in casino traffic hits its stride, there could well be a migration at Singapore’s other IR, Resort World of VIPs away from RWS. Indeed, MBS would Sentosa. seem a more natural habitat for well-heeled In the weeks after RWS opened on 14th Singaporean, Indonesian and Malaysian February, the main casino floor at RWS was gamblers, with its downtown location, high- crowded with local and foreign players to end shopping and upscale restaurants. such an extent that when IAG visited on a weekday afternoon, tables were ringed three to four deep by players, and slot machines had very few empty seats. Local players complained of not being able to play at the tables and slots despite having to fork out the casino entry fee of either S$100 per day or S$2,000 per year. In order to keep locals—who are likely to be the most frequent players—happy, RWS set up an area restricted to Singapore residents on its main gaming floor, dubbed the Orchid Room. With both RWS and Big ‘wow’ MBS opening up more tables and slots, The key new attraction unveiled at when IAG went for a repeat weekday visit the grand opening of MBS that was not to RWS in June, not only had the crowds available during the April 27th soft opening greatly diminished around the tables, but is the Sands Skypark, with the pool and it appeared the Orchid Room was more observation deck opened to the public on Aerial View of the Marina Bay Sands SkyPark
June 25th. At three times the length of an Olympic pool and 200 metres in the air, the SkyPark infinity pool is the largest outdoor pool in the world, and arguably one of the most breathtaking. Infinity pools give the effect that the water extends to the horizon (in this case, the Singapore skyline). The entire boat-shaped (or banana- shaped, according to your point of view) SkyPark is longer than the Eiffel tower laid down, and sits perched atop the property’s three 55-storey hotel towers. Elements of style Marina Bay Sands commissioned five well-known artists to create works of art to ‘integrate’ with the buildings. Among these is a 40m-long installation by British Ned Kahn’s Rain Oculus sculptor Antony Gormley, made from 16,100 steel rods. Environmental artist and sculptor Ned Kahn contributes cascading wind arbors to the property’s exterior, and a rain oculus to the roof of the luxury shopping mall. The mall also features an LVS-trademark indoor canal, on which shoppers can ride along in Sampan boats styled on traditional Chinese vessels from the 17th century. Meanwhile, artist Chongbin Zheng created Rising Forest, which consists of 83 three metre high pots with trees in them. The pots were so big the artist had to build a customised kiln the size of a small building to make them in. Plenty of room When complete, MBS will feature Antony Gormley’s installation at MBS Chongbin Zheng’s Rising Forest
14 INSIDE ASIAN GAMING | July 2010 Marina Bay Sands
2,560 hotel rooms. Pictured below is a quite unreasonable.” selection of some of the tasteful and Marina Bay Sands sued the lawyers spacious interiors on offer. after they withheld payment for the first conference it hosted. IPBA 2010 Pte, on Unhappy conference campers behalf of the Inter-Pacific Bar Association The 120,000 sq. m convention and conference, countersued for misrepresenting exhibition centre at Marina Bay Sands has a “complete disaster” as a world-class venue. become the subject of a heated legal dispute Sands used the attendance of Singapore between MBS and a group of lawyers who Minister Mentor Lee Kuan Yew at the event to held a conference at the venue. According speed up its casino and occupation permits, to Bloomberg, Las Vegas Sands Corp (LVS) according to the IPBA lawsuit. Chairman Sheldon Adelson said he was “People should know that there will ready to settle “any day they want” with the be little glitches in an opening of a new lawyers’ group that accused it of using their property,” said Mr Adelson. “They couldn’t conference to hasten its gaming license. stand even one glitch.” “We much rather make love than war,” Delegates at the conference complained Adelson said in a Bloomberg Television of unfinished rooms, power failures, closed interview in Singapore. “We tried to settle facilities and lost luggage, and the Bar with them; they didn’t want to and were Association’s annual general meeting
Horizon Room Singapura Suite main bedroom
Singapura Suite living room
July 2010 | INSIDE ASIAN GAMING 15 Marina Bay Sands
discussed an “unprecedented” motion empowering it to sue Sands, according to IPBA’s lawsuit. The conference was held May 2nd-5th. “We never would have sued them if they Sands Expo and Convention Center didn’t return the checks,” Adelson said. “I don’t know about in Singapore, but in the US it’s a criminal offense to return a check or to write a check that you don’t intend to cover.” “Now believe me, we make every effort,” Adelson said. “We send employees in to live in the rooms, to try out the toilets, sinks, lights, drapes, to make sure everything is working as it’s supposed to and that’s what we did. But in any new property and in any ongoing property, you always have something that happens.” Meanwhile, the IPBA organizing A private room at Fuse bar committee said MBS never formally apologized for the problems encountered during the conference. MBS executive George Tanajisevich met IPBA President Lee Suet Fern once after the conference and didn’t make any settlement offer, the committee said. Lee, the daughter-in-law of Lee Kuan Yew, chaired the conference. “Since then we have not heard from Sands except through their lawsuit and sound bites to the media,” according to an IPBA statement. Food for the eyes, mind and gut Marina Bay Sands will boast restaurants from a line up of celebrity chefs, including Mario Batali (New York), Daniel Boulud (New Still to open—The Louis Vuitton Crystal The Jin Sha restaurant York), Wolfgang Puck (Los Angeles), Santi Pavillions Santamaria (Barcelona), Guy Savoy (Paris) and Tetsuya Wakuda (Sydney). Chefs Santi Santamaria, Guy Savoy and Tetsuya Wakuda will have their restaurants on the mezzanine layer of the casino while Mario Batali, Daniel Boulud and Wolfgang Puck will have signature restaurants situated near the two Marina Bay Sands Theatres. Each of the six chefs is personally involved in the concepts, menus, and interior design of the six different restaurants. When fully completed, MBS will feature several other dining venues, an Art Science Museum, an outdoor event plaza and two floating crystal pavilions, one of which will house a flagship Louis Vuittion boutique. The Walt Disney musical “The Lion King” has been delayed because the building is Marina Bay Sands CEO Thomas Arasi at a conference with the resort’s celebrity chefs, Daniel not yet ready. The stage show will open in Boulud, Guy Savoy, Santi Santamaria, Tetsuya Wakuda and Justin Quek the first quarter of 2011, according to LVS.
16 INSIDE ASIAN GAMING | July 2010 July 2010 | INSIDE ASIAN GAMING 17 Philippines
All Change? Philippines gaming investors ponder whether a new regime at Pagcor will really improve their lot
n ally of recently inaugurated President Benigno Aquino III has been lined up to be the new chairman of the Philippine AAmusement and Gaming Corporation (Pagcor), the country’s gaming regulator-cum-operator. At the time Inside Asian Gaming went to press, the new man was identified as Cristino ‘Bong’ Naguiat, described as a close friend of the nation’s new chief executive. To add spice to the story, Mr Naguiat was in the past reportedly fired from a junior post in the treasury-finance department at Pagcor by retiring Pagcor chairman Efraim Genuino. Dr Genuino announced his departure as Pagcor boss in mid-June only days before President Aquino was sworn in following his May election victory. It was, however, an open secret in political circles that the new national president—known popularly as ‘Noynoy’—wanted Dr Genuino out, despite his so-called midnight reappointment by outgoing president Gloria Arroyo. The Pagcor job is a politically important and sensitive one. Pagcor had a declared income from gaming taxes and operator licensing fees of P29.78 billion (US$640 million) last year. That makes it the third biggest raiser of cash for public use after the country’s Bureau President ‘Noynoy’ Aquino
18 INSIDE ASIAN GAMING | July 2010 Philippines
of Internal Revenue and the Bureau of Customs. Critics say Real change Pagcor should be contributing If the new administration decides Pagcor should be classified as more to the public coffers and operator ‘fish’ rather than regulator ‘fowl’, it may then wish to think that a lot of money is either about whether it needs to set up an independent regulatory body wasted or disappears from the for the industry like most of the world’s major gaming jurisdictions. books. It may also be necessary to hand gaming tax collection and redistribution powers to another body, perhaps similar in structure Charity begins at home to the UK’s National Lottery Commission. The NLC collects and In theory, Pagcor’s revenues distributes the duty raised on the sale of the UK’s National Lottery are supposed to contribute tickets to charitable causes. specifically to public spending Without some genuine structural reform, the Philippines risks on socially deserving causes being sidelined as a boutique gaming market of strictly limited such as the Philippine Sports interest to overseas investors. That’s despite the market’s strong Commission. In practice, Pagcor potential in terms of demand from domestic players (who have free has for years been mired in access to domestic casinos, unlike the locals in South Korea and allegations of unauthorised Singapore) and from tourists. spending, loose accounting Retiring but not shy—Dr Efraim The early signs are that the Philippines will resort to the default and cash being diverted to Genuino position of many decades—talking a good game regarding reform, party political causes. but continuing with business as usual. Dr Genuino has apparently In mid-June, an anti-fraud campaigning group called Kontra been rewarded for his controversial tenure at Pagcor with a three- Daya produced what it claimed was documentary evidence that hectare plot of land at Clark Freeport Zone, the former US Air Force Pagcor money had been used to fund a political party founded by Dr base site near Angeles City, 40 miles from Metro Manila. It could Genuino. That anti-narcotics party, Batang Iwas Droga (BIDA), put Dr potentially be used to develop a casino. Clark is already home to the Genuino’s daughter, Sheryl Genuino-See, at the top of its nominee Stotsenberg Hotel and its Casino Casablanca. list during the May national elections. Kontra Daya claimed that between December 2008 and March 2009, Pagcor wrote cheques totalling P28.2 million (US$610,000) to BIDA Foundation Inc and BIDA Production Inc. Dr Genuino has denied acting improperly. As well as sports training, pre-school education and the President’s Social Fund are by law funded from Pagcor remittances. But payments to political parties are technically outside Pagcor’s official remit. Hybrid role Attempts to improve transparency in the financial affairs of Pagcor are arguably not helped by the organisation’s dual role as a gaming operator in its own right (in parallel with a number of private operators) and as the regulator of the country’s land-based gaming industry. The country’s lawmakers and the public spending watchdog, the Commission on Audit, do in theory have oversight of Pagcor. In practice, they have found it very difficult to impose their authority over an organisation that in the past has regularly appealed direct to the presidential palace for political protection over the heads of lawmakers when the political heat is turned up. President Aquino ran a campaign based principally on cleaning up corruption in the country. Whether his ascent to office and his appointment of Mr Naguiat as Pagcor chairman will benefit private and overseas investors in the Philippines gaming industry remains to be seen. The main complaints expressed by foreign investors in Philippines gaming to IAG have been lack of transparency on investment terms, constant requests by numerous third party agents for facilitation fees on projects (effectively bribes) and accounting irregularities. If Pagcor chairman in waiting Mr Naguiat is to have a hope of reforming gaming administration in the Philippines, then looking at Pagcor’s hybrid operator-regulator role would probably be a good place to start.
July 2010 | INSIDE ASIAN GAMING 19 Market View
Tough Love Macau’s junket operators aren’t throwing money at new customers, despite China’s economic boom
“A bank is a place that will lend you money if you can prove that you don’t need it.”
Bob Hope, American comedian and actor
nalysts and investors have for some time pondered the assumptions, the reality of the Macau VIP market is often quite question of whether there is a correlation—either positive different. The insider says that junkets are in fact less inclined to jump Aor negative—between the rise of mainland China’s economy on the bandwagon of China’s economic boom than many outsiders and the growth of the VIP gambling market in Macau. assume and are typically more selective in their credit issuance One assumption behind the positive correlation thesis is that policies than commercial banks. By that reading, the 95% growth China’s economic success must have delivered new high rollers from in gross gaming revenue seen year on year in May could be more a China into the Macau VIP market. Still, only the junkets and casino function of a relatively small number of proven VIP customers rolling operators (and possibly the local regulator) know exactly from where greater amounts on the back of a strong economy, than of large the VIP customers hail, and they’re not exactly lining up to divulge numbers of new customers piling into the high roller market. that information to the market as a whole. “It’s true there are some new players coming into the Macau VIP Given, however, that 54.1% of Macau’s visitors in May came segment as a result of the economic development of China,” says the from the People’s Republic, according to DSEC, Macau’s Statistics junket source. and Census Service, it seems reasonable to assume that a similar “But we are careful about who gets credit. In our case it takes six percentage of Macau’s high rollers also originate from that jurisdiction. months from the introduction of a new player to our organisation to Even if that assumption is misguided, and mainland high rollers are that player being issued with credit.” making a proportionally smaller contribution to Macau’s VIP gross The insider adds the junkets typically shy away from chasing than indicated by the raw visitor statistics, then it’s still likely that customers and prefer to work on the basis of networking and Greater China’s economic success is at the very least boosting the recommendation. The stance appears to give credence to the wealth of Macau’s traditional VIP customers—high net worth players business saying—often repeated privately by Macau junket from Hong Kong. Many of that cohort have direct investment in operators—‘Know your customer.’ manufacturing companies in Guangdong, the heavily industrialised Macau’s VIP credit market hasn’t always province next door to Macau, or have investment in mainland assets been so orderly. The due diligence strategy such as property. was effectively thrown out of the window A third assumption behind the correlation/ by some junkets for nearly two years non-correlation debate is that because junket- between December 2007 and late 2009. supplied VIP players are commonly extended That was because of cutthroat competition credit, this must mean access to ready liquidity for players after an extremely aggressive on the mainland side of the border equals a (some analysts said at the time irrational) deal bonanza of gambling credit on the Macau side sealed just before Christmas 2007. Under of the fence. An adjunct to that assumption is that the deal, Melco PBL Entertainment (now such credit must be arranged on a one-for-one basis: Melco Crown Entertainment), operator of i.e., one Hong Kong Dollar of credit for every Hong Kong the then struggling Crown Macau (now Dollar wagered. Altira), agreed to pay a record 1.35% commission on rolling chip volume to Inside view junket consolidator AMA International A junket insider tells Inside Asian Gaming that set against these in order to bring much needed VIP
20 INSIDE ASIAN GAMING | July 2010 Market View
business to Crown. AMA is a subsidiary of Amax Holdings (formerly Amax Entertainment Holdings), a company that initially raised junket working capital via equity issuance on the Hong Kong stock market. The junket insider explained: “When Amax came into the market, the junkets did start chasing after players in order to compete. That did lead to some bad debt. It doesn’t happen now.” The umpire strikes back One likely reason for the shift from a buyers’ to a sellers’ market in VIP junket services in Macau is the implementation by the Macau government in September 2009 of a long anticipated 1.25% cap on rolling chip commission. But as our article last month ‘Caps, What Caps?’ by gaming consultant Ben Lee explained, there are other ways Getting to know you—junkets vet new customers for casino operators to compete for junket business and for those junkets in turn to differentiate themselves in a busy market. This is via willing to take on the commercial risk or who didn’t have up to date the medium of profit sharing. Profit sharing is an alternative junket intelligence on the level of commercial risk involved in dealing with arrangement where instead of the casino paying the junket operator that particular customer. commission based on rolling, the former agrees to split the win/loss “There was a time when a person could be refused credit at say result from designated VIP rooms with the latter. the Wynn then walk across the road to say the Grand Lisboa and get “I think there’s still a good deal of confusion in the public’s mind credit there,” states the source. regarding the business models operated by the junkets in Macau,” “That doesn’t happen today,” explains the insider. says Ricardo Siu, Associate Professor of Business and Economics at “Most junkets don’t share information directly between each Macau University and a long-time observer of and commentator on other except perhaps informally in what we sometimes refer to as the VIP gaming segment. ‘Rumour Control’. But where a junket has operations across several “The system of incentives varies from one operator to another properties, those operations do talk to each other. That means it’s a and one junket operator to another,” he adds. lot harder for a player declined junket credit in one property to go One common factor, however, between the different junket across the road and get it in another.” business models under current market conditions seems to be a preference for setting up what are in effect commercial and financial Conditional love firewalls between the working capital of the junket and the credit Even when a junket takes on a new VIP, the junket’s exposure exposure of the player. This conservatism stems principally from the to that player is managed on an incremental basis, suggests the fact junket operators are operating on very small margins (generally source. a spread of between 1.1% and 1.41% of the gross wagered). As a “If it’s a new customer and they want to play with say result junkets typically depend on a high volume of roll to carry them HK$500,000-worth of chips, they might get only 25% of that on a over the profitability goal line. If a player debt goes bad, the loss may credit basis from us.” need to be covered out of the junket’s working capital. In other words, the player needs in effect to provide 75% ‘equity’ on the deal. Depending on the financial profile and personal Courtship circumstances of the player, such an equity arrangement may The insider spoken to by IAG says that after the initial introduction last indefinitely or until such time as the player’s track record for of a potential high roller to the junket, a ‘warming up’ period follows. repayment is clearly proven. During this phase, the junket’s representatives may visit the person Such conservative lending policies by the junkets could be at his business place or even his home to understand the nature of good news for investors and the Macau casino market as a whole. his business and to understand his social situation. Moody’s, a ratings agency, warned at the end of June that the quality “This process helps us avoid bad debt,” explains the insider. of some mainland lending associated with China’s financial “You only need to have one player go bad on you and that’s stimulus package was questionable. It mentioned your profit gone for the month,” the insider adds. loans for property and investment vehicles “Please remember that when a casino issues chips set up by local governments as carrying directly to a premium player, if that player doesn’t some of the highest risk. In that kind of honour the line of credit, it is a receivable that can be macroeconomic climate, it could be that written off. When we as a junket issue chips, that’s the junkets are not only protecting themselves real money. We have to pay the casino operator for from commercial risk, but also protecting those chips. If the debt is not honoured, that can Macau as a whole from a potential hard affect the junket’s working capital.” landing should there be any sudden and In the past, it was possible for a disorderly unwinding of credit deals high roller declined credit by one in China. junket operator to keep shopping around in Macau until he found Happy ever after? Junkets’ love for players is strictly someone in the market either conditional July 2010 | INSIDE ASIAN GAMING 21 Macau Policy
Mentor the Dragon Rules governing Macau’s soaring junket operations are clearly spelled out, says lawyer Bruno Nunes
s much as people try to introduce Melco/PBL1. the concept of “diversification of Currently 33 casinos operate in Macau, Athe economy”, there is no way with a total of 4811 tables and 14,503 slot around the fact: Macau is gaming, and machines. This inventory has just delivered mainly high stakes gaming. Diversification the highest grossing quarter ever in the plans are either wishful thinking or are in casino history of Macau with gross revenues the infancy stage. amounting to almost 41 billion patacas2. Of If it is casino gambling that makes these revenues almost 70% derive from the Macau the world’s gaming capital, then VIP segment, where the biggest contributors what much of the outside world— are the junkets. especially investors—want to understand Macau’s system of contractual deals is the legal framework that regulates the in VIP gaming was established in the mid junkets, the specialist agents that help to 1980s, during STDM’s gaming monopoly create most of the revenue via VIP ‘roll’. concession. Although contracts between The agents do that by facilitating the junket agents and casino operators extension of credit to high rollers in return assumed at that time an important role in for a commission on their roll. the supply of VIP players to the casinos, limited government regulation was in place Background on gaming and junkets to control junket activity. The principal in Macau reason for this was that there was only one Gaming in Macau has existed for gaming concessionaire. The control resided centuries and was legalised in the mid 19th mainly in authorisation and general control century. In 2002 the 40-year monopoly of of the junkets by the Gaming Inspection STDM ended following the approval of Law and Coordination Bureau. The contracts no. 16/2001 (a legal framework for games themselves were private agreements of fortune and chance in a casino). Thus between junket and operator, operated far, six gaming licences have been granted: within the general framework of Macau Sociedade de Jogos de Macau (SJM), Wynn commercial law. Junket regulation–Confucian principles of Resorts, Galaxy Entertainment Group, Las Study of legal history in most cultures moderation allied with Western legal tradition Vegas Sands, MGM Mirage/Pansy Ho and suggests commercial custom comes first
1 Macau implemented the concept of concessions awarded by public tender for games of chance within casinos (thus technically not licensing the operation of a casino in itself) under Law no. 16/2001. Article 7, no. 1, which states there should be a maximum of three licences. These were granted to SJM, Wynn Resorts and Galaxy Entertainment Group. Three sub concession licences were granted to Las Vegas Sands, MGM Mirage/ Pansy Ho and Melco/PBL (now Melco Crown Entertainment). These operators had to enter a sub concession agreement with the government. 2 www.dicj.gov.mo/web/en/information/DadosEstat/2010/index.html
22 INSIDE ASIAN GAMING | July 2010 Macau Policy
and regulation follows after. That’s especially The current regulation places a great further year must be submitted by 30th the case if commercial custom is perceived emphasis on the fact that the procedure and September. as becoming too skewed towards the subsequent investigations after the licence The junket company is then able to businesses involved and too far removed is granted are aimed to determine whether operate according with the applicable laws from the interests of society as a whole. or not the applicant or the licence holder is and the terms and conditions set forth in Following the liberalisation of the fit to develop the junket activity. the agreement signed with the gaming gaming sector as it had been operating If the applicant is a company, Article operator. up to 2001, the Macau government 4, no. 1, requires that their corporate Article 24 determines that this contract assessed the situation. It decided that the purpose is solely the junket activity and must be in written form and notarised. It must concentration of Macau’s gaming revenues that their registered capital is only held by determine the amount and way of payment on the high-stakes gaming sector (and the individuals and not companies. This is in taxes thereof) was closely linked to the order to allow the authorities to identify the junkets’ activities and that therefore specific ultimate beneficiary of the junket business regulation was justified. transacted. Administrative Regulation no. 6/2002 (amended by Administrative Regulation For companies to apply for a licence, no. 27/2009) was thus approved to regulate Articles 7, 8, 10 and 11 determine the activity of promoting games of luck and that: chance and other casino games in Macau. 1) A company must be incorporated and It covers the licensing and verification the registration of the company at the procedures related to the suitability (ethically Business Registry follows only after the and commercially) of the applicants, license is granted by the DICJ. their registration with the gaming 2) The applicant, shareholders with more concessionaires and sub concessionaires, than 5% of the share capital, directors and the payments of commissions or any who are not shareholders, and principal other kind of payouts to them. employees, must complete Forms no. I This legislation—drafted in Portuguese and II (covering disclosure of background and Chinese the—two official languages and personal information) and submit of Macau—starts by defining, in Article 2, them to the DICJ with the application junket activity as the activity of promoting and a criminal record certificate issued games of fortune and chance or other games by their place of residence. in casinos to players, through the granting of Junket licence holders need to repeat facilities (transportation, accommodation, this process every six years, although the meals and entertainment) in return for a authorities also have the power to make Balancing act–Macau encourages legal casino commission or other type of compensation interim checks. gaming within certain limits by the gaming operator. Article 3 determines 3) The applicant must guarantee a deposit that this activity can only be carried out by of MOP100,000.00, in benefit of the of any commission or other compensation. It those licensed by the DICJ for the purpose. DICJ, to cover expenses incurred in the should state the way the junket will operate By the end of 20093, the DICJ had licensed application procedure (e.g. preparation in the casino, specific spaces assigned to the 169 junkets, 129 being companies and the of risk assessments reports on the junket operator and any guarantees made remaining 40, individuals. applicant or of its shareholders). The by the junket. The contract should also This first of two articles analyses the balance of the deposit is returned upon state that these operational matters will all licensing procedure and the junket’s dissolution of the junket. be submitted to the exclusive jurisdiction main obligations. A second article will 4) An applicant must have the support of Macau’s law and courts. One copy of focus on the famous commission cap, its of one of the six licensed gaming this agreement and any changes to it must enforcement, and comparison with nearby concessionaires and sub concessionaires. be filed with the DICJ, within 15 days of jurisdictions and what the future may hold The operator must file a declaration its execution. This is to enable the DICJ to for the junket system. stating their willingness to work with the assess the agreement for compliance with applicant. the junket regulations. The licensing procedure Any changes to the shareholder’s or To obtain a junket license the applicant Following the approval, a junket licence director’s structure and assignment of must undergo a licensing procedure that is issued and the business registration is shares, must be notified to the DICJ, along aims mainly to confirm their suitability concluded. The junket licence is valid for with relevant documentation. Failure to do and that of their shareholders, directors a calendar year from 1st January to 31st so nullifies the legal validity of the changes and principal employees or collaborators. December. Any request for renewal for a to the contract.
3 B.O. no. 4, II Series, of January 27, 2010
July 2010 | INSIDE ASIAN GAMING 23 Macau Policy
Any violation of the legal provisions that under Article 32-A and 32-B: regulate the junket activity will be taken • A fine ranging from MOP100,000 into consideration in the assessment as to (US$12,470) to MOP500,000 (US$62,345) 4, whether the junket is fit to carry out the if a commission was paid in violation of activity. the junket commission cap (applicable to junkets and casino operators alike) The junket activity itself determined by the Secretary for Junket activity is regulated by Economy and Finance under the new Administrative Regulation no. 6/2002 Article 27 (introduced by Administrative and Law no. 5/2004 (the legal regime of Regulation no. 27/2009) 5. concession of credit for gaming or betting), • A fine ranging from MOP50,000 the Commercial Code of Macau and also (US$6,235) to MOP250,000 (US$31,173), by, Law no. 16/2001 (known popularly as if the casino operator does not provide the Gaming Law) and its complementary the DICJ with the lists of all payments regulation. of commissions or compensations, the The junket activity is not by nature withheld tax and all information needed exercised exclusively for a specific casino to calculate such commissions; operator unless otherwise contractually • Suspension of the junket’s licence for six agreed with that operator. Initially the gaming months or revocation of the licence; concessionaires and sub concessionaires did Macau’s chief executive–power to impose • Publication of the decision on the DICJ’s fines request exclusivity. website and in two daily newspapers for criminal conduct by the junkets, namely five consecutive days. Rule breakers will In order to better control junket money laundering; bear all costs of these announcements. activity, legislators have introduced • Promptly pay the commissions and When taking all of the above rules into the concept of joint liability. Article compensations due to the junkets. consideration, and comparing Macau to 29 of Administrative Regulation no. other gaming jurisdictions where junkets 6/2002 says casino operators are The gaming concessionaires and sub exist, one can see that claims in the media jointly liable for any infringement concessionaires are also required to assist and elsewhere that Macau has a lack of of regulations by the junkets and the DICJ in its supervisory duties. regulation or light touch regulation are for the junket’s activity in casinos. largely exaggerated. Such claims derive In addition Article 30 states that Junkets must fulfill the following mainly from the lack of knowledge of the gaming concessionaires and sub obligations: provisions in place in Macau. Enforcement concessionaires must: of the rules is a separate issue, which we will • Allow the DICJ’s supervision and discuss in the second article. • Submit to the DICJ, within a specific inspection and provide it with any reporting timetable, a list of all payments documentation and information of commissions or compensations, the requested; withheld tax and all information needed • Comply with all legislation and to calculate such commissions; instructions given by the DICJ; • Submit to the DICJ, every three months, • Allow any audits by the DICJ or the a list of all the junket’s corporate Finance Services Bureau; bodies, their principal employees or • Comply with all the contractual terms collaborators; entered with the gaming concessionaires • Inform the DICJ of any fact that affects and sub concessionaires and their the solvency of the junket; instructions, provided their autonomy is • Keep updated the junket’s commercial not impaired. bookkeeping; • Supervise the junket’s activity, especially The Chief Executive of the Macau the compliance with the applicable SAR government, or under delegated regulations; authority, the Secretary of Economy Bruno Nunes is a lawyer based in Macau • Communicate to the relevant authorities and Finance, have the power to with a practice focused on gaming, corporate any situation that might represent a impose sanctions on rule breakers and intellectual property law.
4 The fines were set at a maximum of MOP$500,000 since the government intended to have them approved by Administrative Regulation. Fines above that amount would require a separate law approved by the Legislative Assembly. 5 The commissions or any other type of retribution to the junket cannot be higher than 1,25 % of the total wager (net rolling) no matter what the basis for its calculation, as per No.1 of the Dispatch of the Secretary for Economy and Finance, no. 83/2009.
24 INSIDE ASIAN GAMING | July 2010
NRT Technology Corp
Top Table NRT’s Quick Table promises to revolutionise casino player buy ins
very time a casino player has to convert cash to gambling credit and gambling credit into cash, it creates a challenge for the Ecasino operator. The challenge is that the process involves a certain amount of time and effort (possibly lining up at the cage or rummaging around in a wallet for an unrumpled bank note). That can create a disincentive for the customer and a barrier preventing the operator from getting access to the full economic potential of that player. A similar barrier is created for players who start their casino visit by playing slots and then want to move to the tables. At present, they must take their slot issued TITO (ticket-in, ticket-out) voucher and either go to an automated kiosk and convert it to cash and then buy chips at the table, or take the TITO ticket to the cage and pick up chips there. NRT Technology Corp, a Canada-based company, is already helping to smooth the cash-credit conversion process via its QuickJack™ kiosks. These high specification automated service machines allow casino players to cash out TITO tickets or make cash withdrawals without the inconvenience of waiting at the cage. Now NRT has taken important steps toward a truly cashless gaming floor with a concept that marries the convenience of the payment kiosk process with the seamlessness of ticket-in, ticket-out play. The Quick Table™ is still in the development stage, but it offers a real breakthrough, says Art Ayow, NRT’s Vice President of Sales – International Gaming, Lotteries & Banking. “The Quick Table we displayed at G2E Asia is the first time an integrated table system has been demonstrated anywhere in the world. What we have done essentially is to adapt many of the value added and key attributes of the kiosks into this product. So, for example, the bill validator we use on the Quick Table is the same as the one in the kiosk,” he explains. Cash capability Quick Table in effect combines the payment interface functions of the kiosk and of a slot machine. Quick Table has a bill and ticket validator and a ticket printer allowing players to cash in directly at the table or pay for their chips via a TITO ticket they have brought to the table. The technology is integrated into the table, rather than being retrofitted as a mobile unit. The latter option is still being investigated. However, it requires adaptation into an existing table and product compliance is still outstanding, says Mr Ayow. “We came up with the ‘fully integrated table concept’ for Asia about six months ago, in partnership with JCM,” he states. “For the first time, it allows a casino client who plays slot machines to go straight over to a table and play there without needing to cash their slot TITO ticket either at the kiosk or the cage. Today, the Quick NRT’s Kevin Lam and Art Ayow
26 INSIDE ASIAN GAMING | July 2010 Quick Table™
Table accepts tickets or cash. In the future, it will be able to accept smart cards.” While there may not currently be much crossover of slot players to tables and vice versa, NRT believes that Quick Table offers multiple benefits for players and operators alike. “The benefit is not just the cross pollination—the key benefits of Quick Table is chip retention at the table, better real-time reporting of cash holdings and improved systems management ,” states Art Ayow. “The casinos pay a very high price when people walk away from the tables with chips in their hands. The casinos have to replenish the chips. They lose track of those chips. When they leave the Quick Table, they will get a ticket, which they can cash or keep for future use. And from the property’s perspective, instead of having the dealer count the chips and pay the cash, the dealer’s already been able to deal another hand.” Security Another advantage of Quick Table’s TITO capability is to detect counterfeit bills at the table. “When a dealer is counting cash, he or she has no way of identifying what is counterfeit. With our product, he has that option because Quick Table has a bill validator,” points out Mr Ayow. “It slows down the process a little bit, but it depends on what the casino operator wants to do. Does he want to hold up the game? Does he want to send a message to security to say, ‘Hey, we have a guy here who’s brought in a stack of 50 bills and five of them are counterfeit’? Or does he want to process the game and allow security time to deal with the situation? Quick Table offers that flexibility.” The processing power of the Quick Table is run by the same CHS™ (Cash Handling System) software that powers NRT’s automated kiosks. That means the Quick Table’s cash and TITO handling capability meets international banking standards as well as the regulatory requirements of the major gaming jurisdictions. A handle on handle “But our cash handling system gives them a much better chance of knowing precisely the handle. In fact, it’s so accurate it could save them the trouble of having to do a recount back in the cash room.” NRT is confident that once the Quick Table concept is fully developed, it could be sold directly to new casino properties as the next generation solution for cash handling at tableside. “We think we could sell it straight into a new casino. And if we make the value proposition attractive enough, it could be a replacement option in an existing casino. We’re very excited about its potential,” says Mr Ayow. Weike Gaming Technology
Winner Takes All Weike Gaming Technology offers players a new approach to slot tournaments
nstead of just playing against the machine or against the the machine,” adds Mr Kinsman. house, the idea of the tournament function of ‘Winner The key factor behind the development of the Winner Takes All “ITakes All’ is it allows the player to play against other players,” concept was to create a game “where we took the enthusiasm— comments David Kinsman, CEO of Singapore-based slot machine especially of the Chinese players—where they love to beat somebody. manufacturer Weike Gaming Technology, about his company’s latest In this instance, they’ve got the chance to actually eyeball the people product release. that they’re going for, and they can see how they’re going, and “So it really is a sort of a hunt. When players get into that they’re chasing each other. Obviously, we’ve given them ultimate tournament mode, it’s not the house involved. In fact, interestingly flexibility. In the tournament mode they can actually increase their enough, the way the machines work, when it hits the tournament credits and put money into the machine—because it’s their money. mode and you go into the tournament play, it’s 100% return to They can also go to maximum bet. So they can be betting minimum player. So even if you don’t win the tournament, and you’ve had to get into the tournament, and then the moment the tournament some good wins, you can still have quite a successful payout out of starts, they can be betting maximum. just participating in the tournament.” “If they’ve had a big win, they can just stop and wait, because the The game offers a four-level mystery jackpot, “and each of the tournament is a timed exercise, and at the end, the person who has four levels can be tournament, even the lower levels, or it can be got the most credits on their tournament win meter wins the money a combination of some levels running tournament play and other that’s up for grabs. Even if you haven’t won the big prize, whatever is levels just running a standard mystery jackpot that will go straight to on your credit meter, you’ve won.”
David Kinsman
28 INSIDE ASIAN GAMING | July 2010 Tournament appeal On the main floors of Macau casinos— in contrast to VIP rooms, where players like their privacy—crowds attract more crowds, as reflected by the familiar scene of players jostled three-deep around one sic bo table, while the adjacent table sits empty. Observing that gambling in Macau is a spectator sport, casino architect Paul Steelman came up with Sands Macao’s revolutionary stadium-style design, which is considered one of the main factors behind the property’s tremendous popularity among Chinese visitors—and is clearly the major influence on the design of Las Vegas Sands Corp’s latest property, Marina Bay Sands in Singapore. Slot tournaments have the potential to create crowd-pulling excitement among the participants, and are set to become more popular in Macau and the rest of Asia. “We believe that tournaments are one of the most under- developed and under-exposed parts of the slot business [in Macau],” suggests Weike Gaming Technology CEO David Kinsman. “New South Wales in Australia, as you know, has been a very strong slot jurisdiction for fifty to sixty years. Tournaments have always been a very big part of gaming machine promotions in Australia, especially in New South Wales. Here [in Macau], there’s been very little. We know that Atronic did a product which was basically just a tournament product, and you couldn’t use it for anything else. You only switched it on when you wanted to play a tournament. They have a single-use package, which is very different to what we have here [with Winner Takes All]. What we came up with was a 50-line package that is a dedicated game. “Now one of the important things is it’s got to be one game for everybody. If you have different games, some players wrongly or rightly may think one game may have an advantage over another. So it’s only one game. We have back-up games that are available, so we can change it. We’re also able to theme the tournament to a particular [casino] site, so it doesn’t have to carry the Winner Takes All brand. “One of the good things is we work together with Paltronics in almost a joint development project, and we have a long-term contract with Paltronics that means all of the patented sections—and there a lot of patents involved in the package—are completely protected. So we can’t be copied, we can’t be plagiarised. And it’s interesting when I see two other manufacturers here [at the G2E Asia show, held in Macau last month] that have rushed so-called tournament products onto the market, knowing that we were going to launch this here at the show. It’s also interesting to see that the other manufacturers’ products are not available, whereas in eight weeks time, we’ll start rolling out our product into venues in Macau, Singapore and possibly the Philippines.” Alfastreet
Singles Champion Alfastreet’s SI Line of standalone roulettes and sic bo games offers flexible deployment on a crowded floor
lfastreet’s automated multiplayer roulettes and other automated table products are already big Asellers in Southeast Asia. Now the company is building sales of its single terminal table game range in the sophisticated gaming markets of Singapore and Macau. Leading Alfastreet’s assault on those markets are the company’s SI Line Modular stand-alone terminals. They have been specifically designed to cater to each casino’s individual floor-space and floor-design requirements. “Singapore and Macau are the most progressive markets in the sense that the players and the operators are looking for new concepts with single terminals but multi game options,” says Albert Radman, Alfastreet’s Sales Director for Asia. The modular design of the SI Line incorporates electronic player stations with touch screen displays that are linked to fully automated games. SI Line is available in roulette format or sic bo format. Its modular design means it can be set up as a standalone game or as part of an array for more communal style play. In the roulette version, all action is captured live with a camera focused on the automated roulette wheel and presented on a large screen display. The system is scalable to 250 terminals using one automated roulette wheel. Individual terminals feature touch screen displays, automatic and secure cash and coin handling, ticket-in, ticket-out (TITO) systems and multi- denomination features. “In Singapore, we have already delivered single terminals and we hope to bring more,” says Mr Radman. “In Singapore, everybody adores the roulette. The roulettes are full all the time, no matter how many you put on the floor.” The SI Line can also be set up to accommodate multiple wheels. “Players like to choose not just between the games, but between different wheels,” explains Albert Radman. “Many of the players believe in luck— especially here in Asia. So if they have a choice of wheel, they like that. If they have only one wheel, and they find their lucky numbers aren’t coming up, they are more likely to leave the table. If you give them more wheels, there is a better chance they will sit down and play.” Albert Radman Alfastreet’s SI Line roulettes and sic bo
30 INSIDE ASIAN GAMING | July 2010 TransAct
The Power of Ten TransAct shows off its next generation printer at G2E Asia
ransAct Technologies Inc displayed its next generation ticket printer, the Epic Ten80™, at TG2E Asia. The Epic Ten80 is up to 30% faster than even the famously reliable and robust Epic950®. The latter is already a hit in Asia Pacific markets, with Melco Crown Entertainment choosing the Epic950 for its entire gaming operation at its City of Dreams resort on Cotai, Macau, when it opened in June 2009. “The new processor we have included in the Ten80 provides more horsepower which allows faster printing,” says Tracey Chernay, now Executive Vice President of Sales and Marketing for TransAct, an expanded role from her previous job as Senior Vice President, in recognition of her sales and marketing performance for the company. “The Ten80 will also print really robust jobs like say a coupon, very quickly. It also has the capacity to have a game connection and a secondary connection at the same time,” she adds. “It’s really one printer for all game types because it has four different types of connecters built in—two serial, two USB with additional flexibility to support Netplex. So you could have a combination of serial connection for the game and a USB connection for a promotional system for the players. In addition, all the proven reliability features of the 950 we have also put into the Ten80,” explains Ms Chernay. The new printer was first released to the original equipment manufacturers last month. It will be integrated into their products and compliance tested over the summer with the expectation it will be available to casinos in the autumn. “We’re going to continue to carry the 950 and bring on the new Ten80. We anticipate that new casinos are going to want to take a look at both to see which one fits them,” says Tracey Chernay. “The way we’ve built the product gives OEMs the flexibility to decide how they want to configure it. With the two USB connectors, for example, maybe they want a USB game connection and an active USB firmware download connection. It’s the TransAct’s Tracey Ten80’s flexibility that makes it a winner.” Chernay with the Epic Ten80
July 2010 | INSIDE ASIAN GAMING 31 Panter Gaming
Pinball Wizard Panter Gaming introduces a roulette game with a difference
fascinating newcomer on the floor at G2E Asia was Panter Electronic Roulette from A Slovenia’s Panter Gaming. It’s a single player roulette with a difference, because the player gets to fire the ball onto the wheel via a pinball-style launcher. “Our idea was that you can be the croupier and the player at the same time. You have the feeling of controlling the ball,” says the game’s inventor Gino Dominico. “Previously I was involved in electronic roulettes. With this product I wanted to do something unique and something that was mechanical, not using air or something like that. “People love it. Because the player decides when to launch the ball in the game they get the feeling of having influence on hitting the winning number. That means they want to play again and again,” says Mr Dominico. Panter Gaming recently became part of Austria’s Novomatic Group, which is providing marketing support for the product. “Chinese people love the product because they get to interact directly with the game,” says David Orrick, Novomatic’s Communications & Business Development Director. “It’s not actually a manipulation by the player because the game is certified and governed by the rules of roulette,” he stresses. “Engineering the game to guarantee the number of spins took one year to solve,” adds Gino Dominico. “We have machines now in Belgium, Spain and Holland and we expect GLI certification in one or two months. We think it will be a hit in Asia too,” he adds.
Gino Dominico
32 INSIDE ASIAN GAMING | July 2010 IGT
Fortune’s Wheel Turns for IGT The gaming manufacturer is having its best year in Asia
GT is well known for its strong catalogue of licensed slot games and its casino management Isystems. That strength is paying off in the Asia Pacific region, with IGT reporting it has captured about a quarter of the market in both of Singapore’s integrated gaming resorts. “This year has really been great for us. Customers once again are in purchase mode. In fact, we’re having our best year in Asia so far,” John Gomes, IGT Asia’s managing director, told us at G2E Asia. “In Singapore, IGT did really well with about 25% market share across both properties. In Resorts World Sentosa we also have IGT Advantage® SMS [slot management system] and in Marina Bay Sands we have IGT Advantage® Table Manager,” adds Mr Gomes. IGT premium products on show at G2E Asia included the Wheel of Fortune® enhanced version complete with big screen (based on the popular syndicated television game show) and Sex and the City™, the slot game themed around the popular and long-running HBO television series. “We look at placing them across casinos in small numbers to create some liveliness on the floor and to give some recognition to the name brand as well,” says John Gomes. “Sex and the CityTM is a worldwide launch under licence from HBO and we’re very proud to be partners with HBO. We’ve got the game approved for the Asian markets. In the US, we have over 1,000 units placed to date. We have great hopes and expectations for the product.”
John Gomes, Managing Director IGT Asia 34 INSIDE ASIAN GAMING | July 2010 JCM Global
From VIZION to reality JCM Global’s latest and greatest bill validator is poised for market launch
The SENTRY 2.0 Bezel
CM Global’s iVIZION™ bill validator, revealed for the first time at G2E in Las Vegas in November, is likely to go live in the market in the third or fourth quarter of this Jyear. “We’re very pleased to report that the iVIZION is with the equipment manufacturers today in the process of getting certified by them, so we expect deployment of the product later this year,” Kunal Mishra, JCM Global’s General Manager for New Business Development, told Inside Asian Gaming at G2E Asia in Macau last month. As JCM Global explained to IAG in our February edition, iVIZION was conceived as a network application, not simply a bill validator. That allows equipment manufacturers and casinos to adapt the technology for their operational needs. “Our aim was always to provide a platform on which people could build value added features,” states Mr Mishra. “We provide the core technology and all the relevant inputs and outputs. Their people then use their own creativity to come up with applications that make sense for the casino. “As the product gets evangelised throughout the industry and more and more people look at it, they’re finding more applications to build around the iVIZION. That’s exploiting the CIS [contact image sensor] or our SENTRY 2.0 Bezel technology. “Initial indications are that it’s exceeding even our expectations. We call it the foundation of intelligent validation,” adds Mr Mishra. “We anticipate the roll out to begin in Q3 and Q4 of this year. As to jurisdictions, that’s dependent on submission factors. In terms of which jurisdictions will be first, that’s more a determination between us, our OEM partners and our casino partners, though we do expect the initial rollout will be in the US market.”
JCM Global’s new iVIZION™ bill validator
Advertise with Inside Asian Gaming For advertising enquiries, please email: [email protected] or call Domingos at +853 2832 9980 July 2010 | INSIDE ASIAN GAMING 35 UP2U Baccarat
Player Power UP2U Baccarat offers new betting options for a traditional game
n the baccarat-focused gaming market of Macau, it’s not always “No matter how well other easy for new products to gain acceptance among players. UP2U baccarat formats do in Macau, IBaccarat from SASIAN Gaming has been able to do that by casinos will always retain a certain retaining the traditional baccarat format, but enhancing it with more percentage of traditional baccarat betting options. tables. This is the market that “It’s almost as if Chinese card players are taught the rules of we target with UP2U Baccarat— baccarat by the time they are three or four years old,” says Danie traditional, but with a bit of spice Van Vuuren, Chief Executive of SASIAN Gaming and a founder of when you want it,” he states. the company. “It’s a bit like putting a pot of “Everybody here knows the card rules forwards, backwards, chilli on a meal table. The player sideways. You don’t mess with the card rules. But with the can add as much or as little as they betting, Asian players do seem very willing to accept variations,” like, to spice up their game.” Danie Van Vuuren he points out. SASIAN says flexibility is As the name of SASIAN’s product suggests, it’s up to the player what makes UP2U Baccarat unique. Players can switch between the to decide how much fresh betting ‘zing’ he or she wants to add to traditional and the new bets from one hand to the next, or combine the play. Macau players are already familiar with no-commission the two at any time, in any ratio. baccarat, but UP2U Baccarat claims to add a new level of value and excitement for the players. The three UP2U concepts • Two different configurations of the same wager can run side by Complementary side (e.g. Banker/UP2U Banker), with the player having ongoing “UP2U Baccarat is designed to complement traditional baccarat, choice between the two. not to replace it,” says Mr Van Vuuren. • Players can bet on either, or both, in any ratio with reverse The development of UP2U owes much to his own experience commission. That means the majority of winning totals are paid of observing Asian card players in 19 years as a casino employee— in excess of even money, bringing new excitement to a game that nine of them in Asia. He and his partners branched out into game development in 2004.
Tables turned—SASIAN Gaming’s UP2U Baccarat
36 INSIDE ASIAN GAMING | July 2010 Win a trip for 2 to the Malaysian
traditionally has only ever had payments of even money or less. MotoGP in October • The Bonus Box gives players the opportunity to turn a penalty situation into a bonus payment of up to four to one.
The UP2U ‘player’ and ‘banker’ bets can be played once in a while, as a side-bet, or constantly, as an alternative to the traditional bets— all without affecting other players’ style of play. “In traditional baccarat, a winning bet on ‘player’ only gets paid even money—never more, never less,” points out Danie Van Vuuren. “A winning bet on banker in traditional baccarat gets what’s called ‘19 to 20’ payment. That’s for every 100 the players bet, they get 95 back. No commission baccarat still keeps the player payment Blues, Bikes, the same, but on banker it pays even money on all winning totals except on the total of ‘six’, when it pays half. “UP2U incorporates what we call reverse commission. Again, Rock and Booze... based on the winning point counts—you can only win on points we’re gonna one through to nine. With UP2U, on most of the points we will pay in excess of even money,” he explains. have a real good time! “From one point to six points, these bets will actually pay ‘taxes’ in terms of reverse commission. So instead of taking five percent The Guinness Guitar Giveaway away, we’re adding it on top, for a net difference of 10%. The idea is, if the person plays both bets and he wins on a low total, he pays a monthly draw for an electric guitar signed ‘tax’ here, but he gets it back there, which gives him an effective by a famous rock blues legend even money proposition. Free Blooze Bus service for guests Converting a penalty “On eight or nine points, it will pay even money. He’s not www.facebook.com/theroadhousemacau lost anything, but he’s also not paying tax [commission]. The catch comes on the seven. When the player wins on seven points, this bet isn’t paid immediately. It comes to the bonus box. This is one of the new concepts that we bring to baccarat. Although it is a penalty situation, the player has the opportunity to turn the penalty situation into a possible bonus situation. The outcome of the bonus box bet is based on the Place your bets—UP2U in close outcome of the next hand,” says Mr Van Vuuren. “Given the propensity of Asian baccarat players to track past wins and predict future ones, we think the additional payments of the UP2U betting configuration encourage new and exciting playing strategies.” UP2U Baccarat was introduced to The Venetian Macao and Sands Macao casinos on a trial basis in December 2009, and the company is in talks to have it adopted in other regional markets. SASIAN says it quickly proved a hit in Macau, outperforming the surrounding traditional baccarat tables in terms of both win per hour and hold percentage. SASIAN says the new betting options had no adverse Avenida do Dr. Sun Yat-Sen Sun Dr. do Avenida effect on the pace of the game, nor on productivity from the operator’s point of view. Rua de Madrid, “UP2U Baccarat has showed that Asian baccarat players are Wan Yu Villas, Hai Xing Xian do Avenida very willing to try new flavours of their favourite game,” says Mr Macau Marques Silvério Jaime Covernador do Avenida Van Vuuren.
Kum Iam Statue UK Gambling Act
Survival Island UK Casinos face up to life after the Gambling Act
he economic and regulatory 142, 24 were in London and 118 in the firm of Memery Crystal, blames democracy landscape that has evolved in the UK provinces. for why none of the 16 licenses is currently Tis very different from that envisaged in When the Gambling Act came into force active. “The local administrations have the heady days of 2002 when consultation in September 2007, it allocated 16 new been slowly but steadily grinding on leading to the 2005 Gambling Act began. licenses: eight for “small” casinos and eight towards the issue of licences,” he says. “Local However, the British casino industry is for “large” casinos, the essential differences democracy means giving everyone a say, nothing if not resilient. The patient may not between the two being maximum square so local authorities consulted on their new be very well, but it certainly isn’t dead. footage and allowable gaming positions. gambling policies and proposed criteria Along with most sectors of the UK The act also stipulated where those licenses for awarding the precious licences. The economy, times have been difficult for the could be awarded by local authorities. Large process is complex, involving the running of casino industry. The effect of the recession casinos could be licensed in Great Yarmouth, a competition whereby applicants will need on consumer spending was to be expected, Kingston-upon-Hull, Leeds, Middlesbrough, to illustrate the additional benefits their but the industry also has had to contend with Milton Keynes, Newham, Solihull and proposals can bring the community besides the new regulatory environment created by Southampton. The small casinos could be a mere gambling opportunity.” the Gambling Act. licensed in Bath and North East Somerset, Roy Ramm, director of compliance for In 2009, there were three casino Dumfries and Galloway, East Lindsey, London Clubs International, speaks for many closures—including London Clubs Luton, Scarborough, Swansea, Torbay and in the industry. “The process of allocating the International’s Fifty, formerly the famous Wolverhampton. While there are some 16 licenses has been unbelievably slow,” he Crockfords—and two openings, which applications pending with local authorities, says. “That is partly down to Government not meant that there were a total of 142 casinos as yet, none of the new licenses has resulted passing the necessary enabling legislation operating in the UK at the end of the year, in a new casino. until 2008. It probably won’t be until 2011 compared to 143 the previous year. Of the Peter Wilson, a lawyer with the London before any of those new casinos see the light
38 INSIDE ASIAN GAMING | July 2010 of day, which is disappointing.” 200-300 jobs for the local economy.” Scott Longley, business editor of industry news website Gambling Compliance Mixed Blessings believes it unlikely that the 16 licenses The latest prevalence study conducted will become actual casinos, even with a by the country’s regulatory authority, the change of government. “The 16 small- and UK Gambling Commission, showed that mediumcasino proposals got caught out in less than 5% of Britons have ever visited the shakedown when Gordon Brown nixed a casino, and one of the reasons for the the ‘super casino’ in a fit of Presbyterian low level of penetration is the plethora pique, and they haven’t really surfaced since. of other gambling options open to them, Although it is thought to be in the hands of such as high street betting shops and the local authorities, it would appear that they online portals. The availability of these have sunk without a trace. There might be other channels has also had the effect some interest in reviving the plans for them, of decreasing the value of licenses. As as the UK casino industry, in parts at least, Wilson points out, “The recession, growth has done a good job of recovering from the of machine gaming in betting offices imposition of the smoking bans in Scotland and ever-expanding facilities for online and then England and Wales and the new gaming have all combined to damage taxes imposed in 2007.” The hopes now rest casino footfall and drop, so the prospect of on the new Conservative-led government, having to finance a massive upfront capital and it appears casinos are no longer high investment in developing a multiplex enough on the agenda. casino and entertainment facility is less The Conservative Party was hugely critical attractive now than at any time since the of the Labour Government’s Gambling Act Gambling Act was implemented in 2007.” during the years it took to reach the statute As an example, Clermont Leisure, a book but has yet to announce any clear subsidiary of Guoco Leisure, had applied for policy changes. It is unlikely that it will rip up 30 licenses in 2007, but announced to the the act in its entirety, but it is possible that it Hong Kong stock exchange last year that it may make the unused 16 licenses portable was withdrawing all of them. so that local authorities that want casinos Conversely, one of the positive effects of can accommodate operators who wish to the act was to put an upper limit on the total open in their areas. number of casinos that will be allowed in That change in policy would be the country. This means that operators know welcomed by Ramm. “We need to get how much they can expand their estates, away from the whole concept of permitted and this has certainly enabled Grovesnor, areas and say to local authorities, ‘If you part of the Rank Group, to set some targets, want a casino you can have one, as long as as Rank Director of Communications Dan someone is prepared to move an existing Waugh explains: “We increased our estate licence there.’ That way you wouldn’t from 32 casinos at the beginning of [2009] increase the total number of casinos, and and had 35 by the end of the year, while the there would still be less than 200 in the whole market went from 145 to 142. There is whole country, but it would mean all the now a ceiling on the market, and we know licenses were being used and casinos were where it is.” in places where they were wanted.” Grosvenor has 12 licenses it is not He cites the capital as an example. using, and Waugh says current plans are to “Only two out of the 32 London boroughs expand from 35 to 47 casinos, and maybe have casinos: the Royal Borough of The 16 small- and Kensington and Chelsea and the City medium-casino proposals of Westminster. If another borough like Croydon, Havering or Harringay wanted got caught out in the a casino, what is wrong with one of the shakedown when casinos that are concentrated in the West Gordon Brown nixed End, which doesn’t need a boost to its night time economy, moving to the outskirts? the ‘super casino’ in a Currently, we have people coming into the fit of Presbyterian pique, West End to use casinos when they could and they haven’t really have the facility where they live. A casino Restrictions on casino advertising have been surfaced since.” in somewhere like Havering could create eased UK Gambling Act
more, if opportunities arise to acquire the Treasury. We want to see a joined-up casinos or licenses. approach by Government that aligns fiscal Interestingly, Waugh is not as critical policy with social policy.” of the act as many in the industry. “I think Although trading has been tough, UK people are forgetting that there were some operators have responded by innovating very good things in the act,” he says. “We and looking closely at their offering. LCI and went from 10 jackpot machines to 20, and Grovesnor have been leaders in marketing the 24-hour rule, which was truly draconian, the casino experience as leisure rather than was rescinded. Casinos are now allowed to a pure gaming activity. advertise more than their addresses. So there “We want people to look at it in the were some pretty outmoded restrictions same way as, say, a night at the theatre,” A lounge in a new G Casino that have fallen away.” Ramm says. “In London, if you go out to Tax is another matter. British casinos dinner and a show you won’t get much some ways, such as offering entertainment pay a tax on gross gaming revenue that change out of £150, but you’re OK with and quality catering, the Gambling Act stops is calibrated at a rate that increases with it because you have had a good time. It them from changing their core offering of revenue. The tax was increased in 2007. As should be the same with the casino. But table games. Ramm, for one, worries that it stands now, the first £1,929,000 is taxed you have to offer more than just gaming.” new customers, who are familiar with online at 15%, the next £1,317,000 at 20%, the Waugh says that Grovesnor has adopted gambling, will be disappointed with the next £2,329,000 at 30%, up to £4,915,500 at such a strategy with its new G casino brand. traditional casino offering. 40%, and at 50% above that. In addition, so- “Traditionally, casinos in the UK have “About the only place you cannot bet called Category B slot machines in casinos just offered table games and slots, and we online in the UK is in a casino,” he explains. are charged an amusement machine licence think customers will want more than that. “You can play online at home, or even in duty of £2,815 per machine per year, and the So our new G casinos tend to be larger a church, but not in a casino. Under the value added tax of 17.5% is assessed on all than the traditional casinos, but the extra act it is impossible for casinos to offer the winnings. These rates are high compared floor space isn’t given over to gaming but kind of technology and gaming product with those of other jurisdictions, but given rather to a decent quality restaurant, a nice that people are getting used to online. At the state of the country’s finances they are bar and a sports lounge where people can present, we can only offer card games with unlikely to be significantly lowered by any watch the football. In our older casinos we paper playing cards. We would like to be new government. were getting around 90% of our revenue able to offer them with virtual cards and “I think we are more concerned about from gaming, but in our new casinos we’re offer virtual blackjack and virtual poker.” taxation,” Waugh says, “and it is particularly bringing it down to closer to 70%, so we’ve disappointing the Department for Culture, more than doubled non-gaming revenues Simon Banks is a London-based journalist Media and Sport has had its plans for as a proportion of our business.” specializing in the sports and gambling the industry effectively scuppered by While operators are able to innovate in industries.
40 INSIDE ASIAN GAMING | July 2010
Marketing
Loyalty Costs Andrew Klebanow explains how to calculate the player reinvestment rate
segments of its database. Then, management system, primarily for meals as discretionary comp costs and at the casino’s restaurants. Also included mail redemption costs rise, casino are discretionary comps that are issued leadership begins to ask, “So what is our by casino hosts for additional meals, player reinvestment rate?” hotel rooms, airfare, limousine service While there is general agreement that and other premium services. Other the money spent on fostering loyalty and comps that fall into player reinvestment encouraging repeat visitation forms the are complimentary room offers and show bulk of player reinvestment costs, casino tickets issued to players through direct operators differ on the specific expenses that mail offers or other marketing campaign make up player reinvestment. Some financial vehicles. officers lump all of the costs associated with Those comps that are excluded are casino marketing and advertising to form beverage comps that are distributed to all what they think is player reinvestment while gamers, regardless if they are members others limit it to just those costs associated of the rewards program, employee and with the administration of the player rewards manager meal comps and any other program. Others take a more analytical comp that is not associated with tracked approach and attempt to identify only those gaming activity. How to Calculate the Player costs that are directly associated with player (2) Points Redeemed For Cash or Non- Reinvestment Rate reinvestment. Negotiable Slot Credits. Almost every The terms “player reinvestment” and player rewards program issues points “player reinvestment rate” are often used to What is Player Reinvestment? to players using their reward program describe the costs associated with the suite Player reinvestment is comprised of all cards. Those points are usually redeemed of benefits that casinos bestow on their marketing expenses that are used to foster for same-day cash back, non-negotiable players. However, despite the frequency loyalty and encourage repeat visitation wagering credits, comp meals, catalogue with which these terms are used, there is no among rated/carded casino patrons. The merchandise and/or other premiums. industry-wide definition that describes the player reinvestment rate is a simple fraction The dollar cost of points redeemed specific components that make up player with total player reinvestment expenses in is the second component of player reinvestment. To better understand how the numerator and carded/tracked win (win reinvestment. It does not include points the industry defines player reinvestment, a that is attributed to players who use their earned or accrued; only those that are survey was conducted among United States player reward cards) as the denominator. redeemed. casino operators operating in a number The resulting ratio is the player reinvestment (3) Free Play and Non-Negotiable Play of jurisdictions including Indian casinos, rate. The numerator in this ratio is comprised Redeemed. The advent of more riverboat/barge casinos and Nevada casinos. of the following components. sophisticated casino management A key finding of the research was that in (1) Comps. Comps issued to customers systems now allows for the issuance of the evolution of most casinos, understanding make up the lion’s share of player “free slot play.” As an example, a player what a property’s player reinvestment rate is reinvestment expenses. However, not who generates 100 points in a given does not become an important issue until all comps are associated with player day may receive a bounce-back offer two seminal events occur: 1) the casino reinvestment. Those that are include redeemable for $20 in free play if he/she institutes a host program and 2) it begins to system generated comps that are return within 72 hours. These awards are mail out cash and free play offers to various issued through the property’s casino credited directly to a player’s account
42 INSIDE ASIAN GAMING | July 2010 Marketing
and can be redeemed by the player directly at a gaming device. Since this Player Reinvestment Analysis kind of premium is predicated on carded % of Carded Win gaming activity, it is a form of player reinvestment. Total Gaming Revenue $6,500,000 Casinos also send table game players Carded/Tracked Win $4,030,000 coupons redeemable for non-negotiable Total Comps $180,000 4.5% gaming chips. The value of these offers Bonus Ponts Redeemed $66,300 1.6% is predicated on a player’s theoretical Free Play Redeemed $225,500 5.6% win and serves both as an incentive to Other Mail Offers Redeemed $210,000 5.2% visit and a reward for past visitation and Special Events $45,000 1.1% is thus a form of player reinvestment. Promotions $75,000 1.9% (4) Direct Mail Offers Redeemed. Mail Food Discounts to Players $22,000 0.5% that is sent to various segments of Amount of Player Reinvestment $823,800 the casino’s database in which some Player Reinvestment Rate 20.4% kind of premium is offered is generally considered a form of player reinvestment. Source: Gaming Market Advisors However, only the direct costs associated illustrated in accompanying table. with the redemption of these offers is a component of player Experimentation to Find the Right reinvestment. The Reinvestment Rate costs of printing Once the data has been collected and a and mailing these snapshot taken of the player reinvestment offers to the database rate, the astute operator can then adjust his are not part of the player marketing campaigns to yield better results. reinvestment matrix but For example, by adjusting the amount of simply a form of casino marketing. mail offers sent and/or their values, it would The logic behind this is simple: why be logical to see a change in the amount of charge the costs of say, a 10,000 piece giveaways that are made available to mail offers redeemed as well as changes in mailing to those people who actually members of the casino’s database. Most carded win. By monitoring these changes redeemed their offers? Thus, printing often, participation in these promotions and tracking their results over time, it is and mailing costs are excluded from the requires players to use their rewards cards, possible to determine the optimal amount player reinvestment analysis. either to gain entry or to earn drawing of to spend on each marketing program to (5) Special Events. Casinos conduct special tickets. Also, additional entries are given maximize return. events such as player appreciation to players who earn more points. Those dinners, receptions and other private promotions that are predicated on some The Right Reinvestment Rate parties for their premium players. All form of gaming activity are considered a Once an ongoing player reinvestment costs associated with this loyalty program form of player reinvestment. analysis is in place, the question that is are part of the player reinvestment (7) Food Discounts to Carded Players. often asked is, “what is the right player matrix. They include the exorbitant Often Casino Marketing will give food reinvestment rate?” The answer is, “it costs for meals charged by the Food and discounts to players who present their depends.” In highly competitive and mature Beverage Department to the Marketing rewards card to restaurant cashiers. The markets player reinvestment rates can rise to Department, the various gifts and difference between the retail price of 30% while in monopoly environments they cash drawings that are often part of those meals and the discount price is a rarely reach 20%. Casinos that spend above these events as well as the incremental form of player reinvestment. A casino 35% risk entering a danger zone where they labour costs generated by the may also offer a promotion in which are simply buying loyalty. Ultimately, each Security Department and Engineering players must earn a minimal number of casino operator must determine their own Department that are necessary to stage bonus points in order to get a free buffet. optimal player reinvestment rate. Further, these events. Once again, the costs of those free meals by monitoring spending levels for each (6) Promotions. The category “Casino are considered player reinvestment. component of player reinvestment on a Promotions” is an ill-defined term. It is monthly basis, each property can find its often used as a blanket term to describe Tracking Player Reinvestment own marketing sweet spot, which is the a wide range of marketing activities. In The total of these various player right spending level for each component of this context, promotions are the various reinvestment costs makes up the numerator player reinvestment. drawings for cash, motor vehicles and while the denominator is carded/tracked Andrew Klebanow is Principal of Gaming other prizes; merchandise giveaways, win. With this data it is then a fairly Market Advisors. He can be reached by random “hot player” promotions, scratch easy exercise to track a casino’s player calling (702) 547-2225 or email andrew@ cards, card swipe promotions, and other reinvestment rate on a monthly basis. This is gamingmarketadvisors.com
July 2010 | INSIDE ASIAN GAMING 43 Briefs
TCSJOHNHUXLEY says the TouchBet terminals at RWS have Regional Briefs seen 100% occupancy since the resort opened in February. It attributes some of that success Sands China Seeks Chinese airline partner to TouchBet’s configuration as a single player terminal, creating a relaxed environment for new and experienced players alike, thus significantly increasing time on machine. From the operator’s perspective TouchBet also offers multi- game potential. Initially, RWS has chosen a roulette option, but blackjack, baccarat, sic bo and poker games can be added and offered to players very easily, points out the supplier. Brian Chan, Director Casino Planning & Compliance at Resorts World Sentosa, said: “We have been absolutely delighted with the performance of Novo Unity II TouchBet Roulette and have already seen return on investment in a very short period of time. It offers a scalable solution that can grow with demand, whilst delivering more Sands China Ltd may team up with a Chinese airline flying to Macau game choice to players.” to start low-budget travel deals, according to a Bloomberg report. Meanwhile, TCSJOHNHUXLEY has promoted Rebecca Kingswell “We are very hopeful that we will see a new carrier service coming to the post of Executive Director of to Macau within the next 12 months,” Chief Executive Officer Steve Operations (Singapore). Ms Kingswell will Jacobs said in an interview in Beijing. “There are quite a few low-cost continue to lead the regional sales team airlines that would love to come to Macau.” from Singapore and report directly to Sands China, the Hong Kong-listed unit of Las Vegas Sands Corp Tristan Sjöberg, Managing Director (Asia). (LVS), seeks partnerships with travel agents and may start two-to-four Ms Kingswell has 15 years experience day package deals to Macau, Mr Jacobs said in a speech in Beijing. of working in Asia, including a leading role About half of the company’s rooms are sold to families, he said. in setting up TCSJOHNHUXLEY’s operations About 85 percent of Sands China’s customers come from in Macau in 2003. She moved to Singapore mainland China—which excludes Taiwan, Hong Kong and Macau. in a newly created role as Regional Sales Mr Jacobs didn’t specify which airlines he had discussions with. Rebecca Kingswell Director in May 2008. In that job, she Air China Ltd, China Eastern Airlines Corp’s Shanghai Airlines, Air has built sales and an effective network for after sales service and Macau and Xiamen Airlines are among the carriers that have flights support in Singapore, Malaysia, Myanmar, Laos, Cambodia, Vietnam, to Macau from mainland China. India and Nepal. Sands China’s tour of 13 Chinese cities focused on Macau’s “Rebecca’s hard work and understanding of the Asian market has entertainment, hotel, and business facilities. Mr Jacobs’ speech in undoubtedly contributed to the company’s success in the region,” Beijing did not mention gaming. said Tristan Sjöberg Mr Jacobs also said financing for a new resort in Macau is “more “It culminated in the substantial orders recently received for the than sufficient” to complete a new 6,000-room project in the third integrated resorts of Marina Bay Sands and Resorts World Sentosa in quarter of 2011. Singapore. Rebecca’s knowledge and experience is second to none Sands China last year raised US$2.5 billion in an initial public and we are sure she will continue to develop and contribute to the offering and $600 million in a convertible bond sale. It is using $500 group’s success,” he added. million from the listing for the resort complex as well as a $1.75 billion loan signed on May 17, he said. Last year, LVS derived 73% of its US$4.56 billion revenue Happy returns for Interblock in Vietnam in Macau. The proportion of revenue LVS earns in Asia is set to Interblock Asia has successfully installed its electromechanical increase further after the US$5.5 billion Marina Bay Sands opened roulette multiplayer Megastar 08 at in Singapore in April. Club 21 in Ho Chi Minh City, Vietnam. The company says the third generation eight-station Megastar 08 Winning Touch for TCSJOHNHUXLEY in Singapore is its most successful product thanks TCSJOHNHUXLEY scored a major sales success with Resorts to its reliability and robust but elegant World Sentosa (RWS) in Singapore, including an order for more than design. By using Interblock produced 100 Novo Unity™ II TouchBet® Roulette terminals. electronics and software, the company Genting International, the operator of RWS, had previously adds it is able to maximise the quality Interblock’s Megastar 08 installed Novo TouchBet Roulette at Resorts World Genting, its casino of its after sales service and support property in neighbouring Malaysia. to venue operators.
44 INSIDE ASIAN GAMING | July 2010 Briefs
Michael Hu, Regional Sales Manager, Interblock Asia Pacific, This compares to what will ultimately be a massive margin story at commented: “Club 21 did try a croupier style roulette which was Resorts World Sentosa, which reported a 33% EBITDA margin in its semi automated, but they eventually went back to Interblock simply first stub quarter and appears to be going higher (S$335 million in because Interblock is present everywhere in Vietnam and enjoys revenue and S$109 million in EBITDA), according to the report. overwhelming popularity amongst players. It is one of the ‘must Union Gaming Research believes part of the motivation behind have’ games in clubs to meet the tastes of regular visitors.” the sale of the UK casino assets to Genting Singapore’s sister Interblock Asia Pacific Pty Ltd is a 100% owned subsidiary company is a valuation play, with the UK casino assets representing of Slovenia’s Elektroncek d.d. Interblock is a globally recognised a drag on the Singapore listing’s valuation. Genting Singapore is trademark for automated electro-mechanical and video roulette, current trading at 15.1x 2011 consensus EBITDA expectations vs. dice and card products. The company, under the Elektroncek name, Genting Malaysia at 5.0x 2011 consensus EBITDA. Genting Singapore distributes its products in more than 50 countries around the world, currently has the richest valuation of all operators with exposure and has more than 20,000 installed stations. to Asia, which Union Gaming believes is already justified given the trajectory of the Singapore IR market. BMM Compliance opens lab in South Korea Harrah’s hopes to enter Macau BMM Compliance has been selected to open the first dedicated testing centre for gaming devices in South Korea. Through this testing centre it should become easier for gaming machine manufacturers from South Korea to be able to have independent testing performed for their own market and also meet the technical regulatory requirements of other jurisdictions around the world. The deal is a three-way partnership between BMM, the Arcade Game Regional Innovation Center (AGRIC) at Dongseo University in Busan and iReal Inc, a Busan-based technology developer working on products including virtual 4D animation. The facility, officially known as BMM Korea (Gaming Device Testing Center), will be based on the university campus. It will offer full gaming device testing and individual games platform testing. “Winning this exclusive partnership with the highly respected Reuter’s reported that Harrah’s Entertainment Inc, the world’s iReal and AGRIC partnership is a significant vote of confidence in largest casino operator by revenue, hoped Macau could allow new how BMM Compliance conducts its business worldwide,” says Martin entrants to its local gaming market. Storm, President and CEO of BMM International. Harrah’s, which was bought by private-equity firms TPG Capital “A number of Korean manufacturers approached us concerning LP and Apollo Management LP in a 2008 US$31 billion buyout, an urgent need for a high-quality gaming device test lab located operates more than 50 casinos in six countries, including Las Vegas in Korea that would provide us with a facility that operates in our resorts Caesars Palace and Paris. time zone and speaks our language. After considering a number of Michael Chen, Harrah’s president for Asia, told Reuters he hopes alternatives and possible partners, BMM Compliance was the only his company would eventually be allowed into Macau, but did not one that understood, and was responsive to, what we wanted and give a timeframe or say how its entrance would be accomplished. needed. We are very pleased to be partnering with them,” said Tae “The government will make it clear when they want to invite new Soo Yun, Executive Director of AGRIC. entrants in, and when they do we’ll be there,” Mr Chen said. “Now we BMM describes itself as the longest established and most are patiently waiting for the next opportunity to arrive,” he added, experienced private independent gaming test lab in the world. The referring to gambling opportunities in Asia. company is based in Las Vegas, Nevada and has offices in Lima (Peru), In 2002, Harrah’s decided not to bid for a gaming license when Midrand (South Africa), Graz (Austria), Barcelona (Spain), Melbourne the former Portuguese colony opened up its market to foreign casino and Sydney (Australia), Singapore, Macau and South Korea. operators, because it believed the regulators in the 14 jurisdictions in which it operates would not permit it to run casinos in Macau, Mr Chen told Reuters in an interview last year. Genting cleaning up Singapore listing While it has no casinos in Macau, Harrah’s paid US$577.7 million According to a report by Union Gaming Research, Genting in 2007 for a 70.8 hectare golf course on Macau’s Cotai Strip. Singapore announced it will sell its UK casino assets to Genting Mr Chen said Harrah’s, like most major casino operators, was Malaysia for S$689 million (US$493 million), which Union Gaming also interested in other Asian markets such as Japan and Taiwan, believes represents about an 8.6x multiple of forward EBITDA. Prior to where various levels of discussion were ongoing about opening the the opening of Resorts World Sentosa, the Genting Singapore listing local gambling markets, but little had so far taken place in terms of consisted primarily of the UK casino assets (when it was known as definitive action. Genting International). In its most recently reported quarter (1Q10), “In Asia, gaming is highly underpenetrated. We’re just at the the UK assets generated S$126 million in revenues (US$90 million) beginning of the growth curve. We’ll be very excited if any of these and S$20 million in EBITDA (US$14 million), or a 16% EBITDA margin. markets open up.”
July 2010 | INSIDE ASIAN GAMING 45 Briefs
includes hotels, Star Cruises and Norwegian Cruise Lines, power generators and palm oil plantations. International Briefs In February, a Genting affiliate opened Singapore’s first casino, a US$4.7bn resort with a Universal Studios theme park, adding to Top Hong Kong honour for Stanley Ho the group’s Resorts World casinos in Malaysia and the Philippines Macau’s former gaming monopolist Dr Stanley Ho has been capital of Manila. Genting also is the biggest casino owner in the UK, awarded the Grand Bauhinia Medal by the Hong Kong government. operating under the Circus, Maxims and Mint brands. The medal recognises the recipient’s life-long contribution to the There is competition for deals in Las Vegas as the city recovers well being of Hong Kong. In Dr Ho’s case, that means his funding of from its worst slump on record. Hedge fund billionaire John Paulson local charities. is acquiring a 9,9% stake in Harrah’s Entertainment. It’s the highest award under the Hong Kong honours and awards Genting Malaysia had held investment talks with large US system that replaced the British one after the return of Hong Kong to casino companies since December 2008, Mr Leong said, declining Chinese sovereignty in 1997. to specify them. “A responsible entrepreneur must know his or her obligations Mr Leong, nephew of Genting chairman and CEO Lim Kok Thay to society, and my personal experience tells me that fulfilling such and grandson of founder Lim Goh Tong, joined the family firm in obligations is a wonderful source of happiness and satisfaction,” Dr September 2004 after four years at Goldman Sachs. Ho, chairman of Macau casino operator SJM, said in his acceptance Genting is one of six potential bidders vying to renovate statement. Aqueduct and operate a slot machine-style “racino” with 4,500 video- lottery terminals. Genting eyes US investments Malaysia’s Genting Group, which Nevada gaming revenues dip in April expanded its casino holdings from a Nevada gaming revenues fell almost 6% statewide in April, but single hilltop site near Kuala Lumpur casinos on the Las Vegas Strip fared better than the rest of the state. into gambling resorts in Singapore, According to figures released by the Gaming Control Board, the Philippines and the UK, is now Nevada casinos collected US$810.4 million from gamblers in April, a looking for investments in the US, 5.7% decline compared to $859.5 million collected in April 2009. according to a Bloomberg report. On the Strip, gaming revenues in April were US$437.3 million, The report quoted Justin Leong, a decline of just under 1% head of strategic investments and compared with $441.7 million corporate affairs at Genting, saying collected in the same month a “Genting Malaysia is aggressively year ago. Justin Leong searching for opportunities to Other areas of Clark County invest in the US casino gaming market.” During the interview with didn’t fare as well. Countywide, Bloomberg in New York, Mr Leong added: “Our strategy is building gaming revenues fell 6% while a US presence.” downtown casinos were off Armed with US$1.7bn in cash and free of debt, Genting Malaysia 9.1%. Boulder Strip casinos were was seeking acquisitions, new markets and potentially a strategic down 25.5% and North Las Vegas partnership in the US, Mr Leong said. The Kuala Lumpur-based casinos were off almost 12%. company, which said last month it may bid to develop a slots casino Casinos that make up the at Aqueduct racetrack in New York, first invested in the US sector in balance of Clark County saw May last year, buying MGM Mirage bonds, when the latter sought to revenues decline almost 13%. The Las Vegas Strip raise cash to avoid a potential bankruptcy. “It’s unlikely to be a single asset. If we were to acquire something, it’s more likely to be a portfolio of assets or a substantial stake in Casino licensees told to stay clear of Internet gambling a company.” Genting Malaysia was also looking at developments companies and new gambling jurisdictions opening in the US, Mr Leong said. A member of the Nevada Gaming Genting Malaysia had invested in every capital issue by Las Vegas- Control Board said casino licensees based MGM since, he said. should continue to keep their distance Kirk Kerkorian, who founded MGM Mirage and is its biggest from Internet gambling companies shareholder, said in October that his Tracinda was exploring “strategic that accept wagers from Americans, alternatives” for its 37% stake. Kerkorian said in regulatory filings that according to a report in the Las Vegas MGM Mirage was undervalued and he was open to proposals. Review-Journal. Mr Leong would not elaborate on Genting’s interest or say In a letter posted on the agency’s website, control board member whether there had been talks with Mr Kerkorian, whose stake in Randall Sayre told an unidentified gaming attorney that his advice MGM Mirage is valued at US$1.9bn. to clients about not doing business with certain Internet gaming Revenue from the Malaysian casino, a gambling monopoly operators was “sound from both a state and federal perspective.” held for almost four decades, helped build the Genting empire that The letter was in response to a question surrounding the
46 INSIDE ASIAN GAMING | July 2010 Briefs
distinction between .com and .net websites operated by Internet “She is a proven leader with an gaming companies. The companies often create two portals, with outstanding gaming industry track the .com site accepting wagers. The second site, designated by .net, record of success, having played a key does not accept wagers and serves as an introductory and tutoring role in the sales and development of location for potential gamblers. However, the .com locations are several games and brands. easily accessed through the .nets. “Jean’s experience in strategic Mr Sayre agreed that the distinction between the two sites and tactical product planning and has become blurred. Internet gaming companies that accept execution, coupled with her extensive wagers from Americans and enter into business relationships with contacts in the entertainment Nevada’s non-restricted gaming licensees are “inconsistent with industry, means she will play a pivotal the Nevada Gaming Control Act and regulations promulgated role in the expansion of our portfolio pursuant to that Act.” of licensed entertainment brands, Mr Sayre said any current business relationships are being brand libraries, and overall product explored by the regulatory agency. “Those activities that require marketing,” added Mr Savage. Jean Venneman board review and approval are being looked at more closely so that determinations can be made as to whether business relationships between Nevada licensees and Internet-based companies violate Epic new role for TransAct’s Tracey Chernay state and federal law/regulations,” Mr Sayre wrote. Tracey Chernay has been promoted from Senior Vice President Technically, it is illegal for Internet gaming websites, which are to Executive Vice President of Sales and Marketing for TransAct incorporated and based outside of the United States, to accept Technologies Inc., one of the world’s leading companies for the wagers from Americans. In 2006, the Unlawful Internet Gaming development and manufacture of gaming and lottery printers. Enforcement Act was enacted, making it a crime for banks and other “As a part of that role, I have picked up responsibility for all financial institutions to process transactions used in online gaming. sales of the company, including our TransAct Services Group,” While the potential legalization of Internet gaming has surfaced explains Ms Chernay. in Washington, D.C., and the American Gaming Association now “That’s the group responsible for selling supplies and services, believes technology exists to allow the activity to be regulated at the operating our web store and operating technical support. I’ll be state or federal level, nothing has changed. looking to explore synergies to incorporate more of our services into Mr Sayre said the US Department of Justice has not shown any our regular printer business. indication it plans to relax its position that Internet gaming is illegal. “We also have a great web store at TransAct Services Group and “The lack of federal criminal prosecutions under (the act) should we will be adding to that by adding the printer products to the not be interpreted by the gaming industry as a lack of interest by website. I’m really excited about the promotion and about exploring state and federal law enforcement and regulatory agencies on this the synergies between the businesses. issue,” Mr Sayre wrote. “I think by working together the Services Group and Printer Sales Questions about the business relationships arose after two poker team can really take our offering to customers to the next level.” events earlier this year on the Las Vegas Strip. *At G2E Asia, Kareem Jalal, Publisher of Inside Asian Gaming In February, The Venetian held the inaugural event of the North magazine, presented Tracey Chernay with an IAG Supplier Award American Poker Tour, which is sponsored by PokerStars.net. In the 2010 for Best Electronic Gaming Peripheral-Printer in recognition of US$5,000 buy-in event, 872 players entered, including 25 who the performance of TransAct’s Epic 950®. qualified through PokerStars.net. In March, Caesars Palace hosted the National Heads-Up Poker Championship. The event did not have an online poker sponsor but a related televised poker event, “Face the Ace,” was filmed in several Las Vegas casinos and sponsored by FullTilt.net. Gaming regulators are currently investigating the suitability of 888, an online gaming company based in Gibraltar that is providing software for Harrah’s Entertainment to manage three Internet gambling sites in the United Kingdom, which do not accept wagers from Americans. The issue marks the first time Nevada regulators are investigating the suitability of an online gaming company that accepted wagers from Americans before the act’s 2006 adoption.
New VP of Product Marketing for Bally Technologies Jean Venneman has joined Bally Technologies as Vice President of Product Marketing and Licensing. “We are extremely pleased to welcome Jean to Bally,” said Dan Publisher Kareem Jalal presents Inside Asian Gaming’s Supplier Award Savage, Bally Technologies’ Vice President of Marketing. to TransAct’s Tracey Chernay
July 2010 | INSIDE ASIAN GAMING 47 Events Calendar
Events Calendar A more comprehensive events listing is available on our website, www.asgam.com.
14 - 16 July, 2010 20 - 22 July, 2010 World Gaming Executive Summit 2010 Sportbetting and Lotteries Asia Eurostars Madrid Tower, Madrid, Spain Hyatt Regency, Hong Kong The only annual gaming conference that brings together senior- Asia’s only dedicated sportsbetting and lotteries returns to Hong level executives from both online and offline gaming operators. Kong in July, straight after the World Cup. Learn about the latest Website: http://www.terrapinn.com/2010/gamingEU/ developments in the Asian sportsbetting industry as well as network with key operators from Asia and the rest of the world. 15 - 16 July, 2010 Website: http://www.sportsbettingasiacongress.com/ Gaming Asia 2010 Marina Bay Sands, Singapore 26-28 August, 2010 This year’s premier exhibition for the gaming industry in GTI Asia China Expo 2010 Southeast Asia. Poly World Trade Center, Guangzhou Tel: +65 6481 1968 GTI Asia China Expo saw its successful debut in 2009 and definitely E-mail: [email protected] proved itself as an excellent platform for the industry to know Website: http://www.gamingasiaexpo.com/ more and better about the Chinese market. Website: http://www.gtiexpo.com.tw/cnen/ 19 - 20 July, 2010 Integrated Resorts & Entertainment Marina Bay Sands, Singapore Features highlights from leading global case studies and provides networking opportunities for professionals in the Integrated Resort & Entertainment field. Contact: Ms Esther E-mail: [email protected] Website: http://www.marcusevans.com/ 19 - 21 July, 2010 Casino Marketing: The 2010 Conference Paris, Las Vegas, United States Addresses marketing challenges across all facets of the gaming industry, including commercial casinos, tribal casinos and racetrack casinos. Contact: Christine Faria Tel: 775-329-7864 E-mail: [email protected] Website: www.casinomarketing2010.com
denotes events where Inside Asian Gaming will be available. To list your event here and on our website, email [email protected].
48 INSIDE ASIAN GAMING | July 2010
50 INSIDE ASIAN GAMING | May 2010