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August 2009 • MOP 30 • ISSN 2070-7681

Steady As She Goes? Under Macau’s new Chief Executive

Atronic: Big DEAL Singapore: Bay Watch Transact: Fit to Print The ‘G6’ Noteworthy Promotions

In Focus: Integrated Resort 2.0 INSIDE ASIAN GAMING | August 2009 CONTENTS August 2009

Handle With Care

7 7 Cover Story 12 Bay Watch

18 Dynasty

20 Fit to Print

23 The “G6”

26 Integrated Resort 2.07

28 Table to Cage

30 Losing Some Steam 33 33 Big DEAL 36 Cadillac Jack

39 Noteworthy Promotions

44 Regional Briefs

46 International Briefs

48 Events Calendar

August 2009 | INSIDE ASIAN GAMING 2 INSIDE ASIAN GAMING | August 2009 August 2009 | INSIDE ASIAN GAMING 3 Editorial

Wind of Change The gaming industry, perhaps more than many other industries, relies on big personalities and a supportive political framework. Events of the last few weeks have shown how quickly things can change. First there was the signalling of a change of personnel at the top in Macau politics. Fernando Chui Sai On was confirmed as the Chief Executive-elect and will take over from the incumbent Edmund Ho in December—the tenth anniversary of Macau’s return to Chinese administration. Second there was the hospitalisation of 87-year old Dr Stanley Ho, the founder of the modern Macau gaming industry. He underwent surgery for a blood clot on his brain—an operation necessitated reportedly after a fall at home. As far as Mr Chui’s appointment is concerned, many commentators on Macau are predicting more of the same. That means a largely hands-off, arms-length approach to the industry—in terms of giving it as much freedom as possible to generate wealth for the local community, within the framework of international standard regulation. Publisher There are, however, a number of domestic economic issues that were either shelved or only Kareem Jalal partially addressed by the outgoing government. Two important ones are what should be the level of gaming tax levied and how to restructure the economy from being a low skill, low wages society Director importing all its required talent, to a high skill, high wages community creating new wealth organically João Costeira Varela through innovation and excellence in its tourism and gaming sectors. It is hard to see how—with a global recession and the imminent arrival of fresh competition in the Asian casino gaming market Editor from a low-tax, well educated community, namely Singapore—decisive action on these issues can Michael Grimes be postponed indefinitely. Regarding Dr Ho’s recent illness, Inside Asian Gaming wishes him a speedy recovery. He commands Operations Manager the respect of everyone in the local industry. As a person with a mixed cultural heritage—Chinese José Abecasis and Western—he is able to span the sometimes seemingly unbridgeable gap between the viewpoint and expectations of the overseas operators, and the expectations of the host community and local Contributors consumers. Dr Ho also has the pragmatism and force of personality to bring normally sparring Desmond Lam, Steve Karoul factions together for the common good. His prolonged absence from the helm at a time of challenge I. Nelson Rose, Richard Marcus and change for the Asian gaming sector would not be to anyone’s benefit. Shenée Tuck, James J. Hodl Andrew MacDonald Not Just a Game William R. Eadington National governments are often accused of being slow to understand and respond to technological developments and how they affect the way we all do business. Graphic Designer China’s recent crackdown on so-called ‘virtual cash’ earned via computer games suggests that Brenda Chao Beijing is responsive to how a cyber economy can affect what happens in the ‘real’ world. This virtual cash can be generated in a number of ways. Those ways include earning credits for Photography achieving goals in role-playing games. Those credits can then be sold to others for hard cash, in what Ike is sometimes termed ‘gold farming’. Another method is to earn virtual winnings from casino-style or table-style games played for example on a subscription basis that can then be converted to prizes Inside Asian Gaming or cash. is published by In both cases, the net result is the same for the service providers. They tap in to the psychology of Must Read Publications Ltd winning and the feel good effect that has on the player, and get the player to spend real money up Suite 1907, AIA Tower, 215A-301 front in order to generate their virtual winnings. Av. Comercial de Macau - Macau An underlying point about virtual cash is that it’s widely been seen by the online gaming industry Tel: (853) 6646 0795 as a good way to engage players’ interest without falling foul of China’s prohibition on domestic casino gaming. For subscription enquiries, The fact Beijing has decided to intervene in this market appears to be a sign of its concern about please email the social implications of excessive gambling-type behaviour among the population—especially [email protected] among the young. In an economy not yet fully plugged in to international financial markets, excessive speculation in the digital world could also lead to negative implications for the real economy. This For advertising enquiries, is not an empty threat. Exact figures for virtual currency exchange in China are hard to come by— please email official estimates from the Ministry of Commerce recently put the figure in China at “several billion [email protected] or call: (853) 6646 0795 yuan”. At current exchange rates RMB1 billion is equivalent to more than US$146 million. One of the most popular virtual currencies in China is “QQ coins” issued by Chinese Internet service www.asgam.com provider Tencent. The QQ coins can be used to pay for in-game items or elements that subscribers can add to their blog. Some stores and websites had even started accepting QQ coins in payment for low-value items. Printed by The possibility of a parallel currency emerging among the nation’s youth just as China is starting Unique Network Printing Factory Ltd. to play a bigger role in international financial affairs, is unlikely to be greeting with rejoicing in Beijing. Tel: (853) 2828 2832 Whether an accommodation can be found between the commercial needs of the online industry and Fax: (853) 2828 2830 the strategic needs of the country’s leadership, remains to be seen. E-mail: [email protected] Michael Grimes 4 INSIDE ASIAN GAMING | August 2009 We crave your feedback. Please email your comments to [email protected] August 2009 | INSIDE ASIAN GAMING 5 6 Cover Story

Steady As She Goes? More of the same may not be an option for Macau’s Chief Executive-elect

hui Sai On has been formally selected prospects in what is still, after all, a clannish as Macau’s Chief Executive-elect city, and offer none of the advantages found Cand will take up his new post in in the West in having a high public profile December. He will be the second person to (such as book deals or priority reservations hold the job since the territory was passed in restaurants). from Portuguese administration back to China in 1999. Dissenting voices Mr Chui, known in the foreign-language Mr Chui’s election was, however, media by his Western name Fernando Chui, not quite the coronation that some had is a former Secretary for Social Affairs and predicted. The 297 members of the Chief Culture in Macau. It’s hardly Mr Chui’s fault Executive Election Committee did not that he was the only candidate for the top select him unanimously. There were 14 job this time round, but it does rather tarnish abstentions. the democratic shine associated in the West José Pereira Coutinho, a member of with the word ‘election’. Macau’s Legislative Assembly who has Potential rival candidates for the post often been critical of the outgoing Chief seemed disinclined to play electoral Ugly Executive’s administration, said he did not Sister to Mr Chui’s Cinderella merely to make cast his ballot at all, describing it as “a way” the outside world feel good about itself and to express his opinion about the election. By about Macau. Would-be opponents may contrast, the incumbent Mr Ho gained 296 have reasoned that to stand against a shoe- votes in his second-term election. in (as was the incumbent Chief Executive One big public project that Mr Chui Edmund Ho in his election for a second was in charge of while in Edmund Ho’s Fernando Chui Sai On has been elected as term in 2004) would carry all the potential cabinet was the preparation for the the next Chief Executive of the Macau Special for damaging their career and business 4th East Asian Games held in 2005. The Administrative Region

August 2009 | INSIDE ASIAN GAMING 7 Cover Story

project involved construction of several making a gesture in favour of pluralism interests of local business leaders and the stadia and support facilities. Spending on given that there were no alternative casino operators, sometimes at the expense the infrastructure and the games ended candidates. That, in turn, could be a sign of the general population. Supporters of up going 70% over the allotted budget, that some Election Committee members the system say Western-style democracy drawing strong criticism at the time from are willing to act independently outside of is overrated and leads to decision-making some law makers. the consensus government model that has designed to court short-term popularity The abstentions in Mr Chui’s selection developed in the decade since the Special and win popular elections, rather than to process need not be seen specifically as a Administrative Region was formed. Critics government that takes a long view for the vote against him. They could be more about of the model say it essentially protects the good of a whole society.

Known quantity Macau’s chief citizen-elect knows his way around the system

ho is Mr Chui and for what does he stand? According to some Wlocal media analysis he is the archetypal Macau insider. The soubriquet ‘safe pair of hands’ may be stretching things a little given his performance over the East Asian Games budget. Mr Chui is, however, a member of one of the aforementioned business families that pretty much ran Macau during the Portuguese administration and have continued to do so since the handover. Mr Chui’s late uncle was a leading supporter of the Communist Party during the final decades of Portuguese administration leading up to the handover in 1999. That may make Beijing feel a little warmer and fuzzier about Mr Chui than it does, say, about Donald Tsang in Hong Kong. Mr Tsang, after all, wears a bow tie (a classic symbol of Western bourgeois values) and was a career civil servant during the British administration. It would be a surprise if Mr Chui did not have highly placed supporters in Beijing. Having good political contacts is as essential for doing business in China as it is in the West. The difference in the West is that the contacts with politicians are often done through professional lobbyists. Macau’s ultimate insider, Dr Stanley Ho, has declared his support for Mr Chui’s candidacy. If Dr Ho’s long and successful career has proven anything, it’s that he knows how to spot and back a winner. Such support does, though, carry its own burdens. One would need to be a strong personality to be willing to risk disappointing Dr Ho on any policy making issue touching on the casino industry after such in the West seems able to resist the lure of change for change’s sake, an endorsement. but few professional business people seem enthusiastically to court it. The fact that both the outgoing and incoming chief executives, New team Edmund Ho and Mr Chui, are businessmen rather than professional At a press conference following the Macau election politicians may be a cause for celebration among Macau’s casino announcement, Mr Chui said he planned to begin work on forming operators—especially when they think of their experiences of his new administration in readiness for when Mr Ho steps down at dealing with politicians in their home markets. the end of his term in December. Mr Chui did not go into specifics There are, however, some things to be said in support of regarding any policy initiatives he may have in mind. radicalism. One is that it not only embraces, but also on occasion Tough decisions and a long view may well be required from initiates, socially useful change. Strong, opinionated politicians are Macau’s new boss, rather than more of the same. The incumbent often more closely in touch with the public mood than business Edmund Ho has been strong on policy regarding physical lobbyists and can on occasion save business people from their infrastructure (building roads, museums, public squares, etc.), but own folly. That was unfortunately not the case in the US, where has shown less inclination to redesign in any radical way the taxation senior executives in the car industry successfully lobbied the Bush system or the management of the territory’s human capital. administration to be allowed to continue building gas-guzzling pick- Some may think radicalism is overrated. No professional politician up trucks. Now, during a recession, no one wants to buy them.

8 INSIDE ASIAN GAMING | August 2009 August 2009 | INSIDE ASIAN GAMING 9 Cover Story

distribution of the net wealth generated by the economy is lopsided. A small number of highly qualified people earn the bulk of the money, and a large number of under- qualified or unqualified people earn average or below average incomes. To keep the whole economy ticking over, the territory adopts what is essentially a developing world model. This is to import management and professional experts to run its most important industries (principally gaming and real estate development), while locals remain economic diversification, which in turn could under-represented in senior management Adapt or Die affect the long-term value of investments in roles in those and other industries. Clinging to the status quo the Macau economy. Under-achievement in the educational field—such as an inability Easy options has its perils in some cases even to speak Mandarin let This situation is tolerated among the alone English—also has an impact on service locals because lawmakers have designated o economy exists in a vacuum—even quality in a service-driven economy touted that casino dealer jobs are reserved for None as blessed as Macau. At first by the government as a world-class tourism permanent residents. This means that school glance, sitting next door to the most destination. Singapore, the next jurisdiction leavers have the opportunity of moving populous political entity on Earth (i.e., to enter the Asian casino gaming market, quickly into casino jobs paying well above Mainland China)—a place where the suffers from no such underdevelopment of the local average—typically 15,000 patacas citizens love to test their luck, but where its human capital. (US$1,900) per month. In reality, unless the casino gambling is technically illegal— dealers acquire other skills and experience looks like a licence to print money. It is, Grasping the nettle they can quickly find they are in a gilded but Macau does face significant structural There are no signs so far that Macau’s cage, with little chance of promotion or any challenges. Its gaming tax rate at nearly political leadership is tackling the cause of opportunity to switch professions. 40% of gross revenue is among the that particular structural weakness. Simply If Macau is to broaden its economic base highest in the world, even if its personal expanding college campuses won’t cut it beyond the casino sector, as suggested by and corporate tax rates are not. With each when school leavers can walk into a well- China’s Vice-President Xi Jinping on a visit year that passes, more jurisdictions and paid job as a casino dealer with few formal to the Macau and Hong Kong SARs in April, more supply of land-based product with qualifications. There are two possible ways then Macau’s Chief Executive-elect will lower taxation on the gross come onto the to implement a structural reform. One is to need to think about getting young people market in Asia. At the same time, China’s bar Macau residents aged under 21 from to stay in education for longer. There is no high rollers show an increasing inclination working in casinos. The other is to bar all quick fix to achieve this, but the raising of and ability to travel further afield for their visitors aged under 21 from casinos. Policing the casino employment age would probably casino entertainment. The argument that an employment ban would be far easier than be the best and easiest-to-implement policy what high roller gamblers in Macau lose in policing a blanket ban. This idea was actually measure available to the politicians. tax off their gross stake they gain in terms touted by Edmund Ho last year before the If anyone among Macau’s current upper of tax free personal spending doesn’t really economic downturn took hold and was echelon of lawmakers understands the wash. Most of their living expenses while supported in principle by, among others, Dr value of education, it’s Mr Chui. According they’re in town such as accommodation Stanley Ho. to media reports he holds a bachelor’s and catering are effectively absorbed by The argument for the move appears degree in community health from California the casino operators and agents in the strong despite the current recession. State University, and a master’s degree and form of ‘comps’. On paper, Macau has one of the highest PhD in public health from the University of Macau also displays a significant rankings for gross domestic product (GDP) Oklahoma. tendency toward public affluence and of any economy in East Asia. How that GDP is A difficulty facing Mr Chui is that there private squalor—almost the diametric distributed is an important issue. It’s beyond are competing pressures. The last thing the opposite of the description the Canadian- dispute that the near 40% of the gaming casino operators want during an economic American economist John Kenneth Galbraith gross paid in taxes by the casino industry downturn is upward pressure on wage costs, gave to United States’ society in the mid is of huge benefit to the local population. It resulting from an increase in the casino 20th century. A major issue for Macau is that allows the government to spend money on employment age. Dr Stanley Ho went on its people are largely under-educated, and infrastructure, to subsidise the living costs record recently on The Pearl Report—a under-achieving. This matters because it can of low-paid workers and to build a budget current affairs series on one of Hong Kong’s have a restricting effect on any attempts at surplus for emergencies. In practice, the English language commercial channels TVB

10 INSIDE ASIAN GAMING | August 2009 Cover Story

Pearl—blaming the foreign operators for such as China, there are no such legal to test their popularity in Western-style inflating dealer wages by in effect starting constraints. democratic ballots. Yet if there is one factor a pay war in the early heady days of market that stands out above all others in terms of expansion after 2004. Tough call Asia’s economic development model versus Unless the operators were given an that of the West, it is the willingness in Asia Policy risks assurance they would be allowed to cap in general and China in particular to think Were the Chief Executive-elect Mr Chui casino worker wages, it seems unlikely long term. to raise the casino employment age, then they would support a rise in the casino If Macau’s Chief Executive-elect wants to the new rules are unlikely to be applied employment age to 21. For the Chief prove his patriotic credentials with Beijing retrospectively. In other words, those under- Executive-elect to propose raising the he may need to make some tough decisions 21s already working in casinos would be minimum age during a recession without on structural issues that reap rewards allowed to stay on. Nonetheless, it would creating any immediate, quantifiable tomorrow, rather than simply presiding effectively remove a whole generation of return in terms of building the economy, over a ‘steady as she goes’ administration school leavers from the casino job market. would certainly require boldness and a that deals only with the needs of some of To do that at a time when the number of willingness to overrule lobbying by the his constituents today. casino tables is still going up in Macau casino industry. (albeit more slowly than in previous years) The political leadership in Mainland could only have an inflationary effect on China has shown on a number of high dealer salaries. profile occasions it is willing to put the A way to prevent that would be for public interest ahead of private interest. The operators to form a ‘cartel’ or price-fixing example closest to home in Macau is when agreement on wages of the sort recently last year China began restricting the issuing announced by Las Vegas Sands Corp and to its citizens of Individual Visit Scheme Melco Crown Entertainment Ltd regarding travel permits for Macau. Other examples a ceiling on commission paid to VIP are China’s one child policy (though that agents. Such arrangements are illegal in appears to have softened as of late) and the mature markets such as the United States, capping of personal borrowing within the Australia and the European Union as they domestic banking system. are considered to be against consumer and Cynics in the West might argue this Edmund Ho has been serving as Chief worker interests. In developing markets is because China’s leaders don’t have Executive of Macau for two consecutive terms Market View An analyst expects at least some honeymoon effect from Mr Chui’s election

ill Lerner of the consultancy Union in Macau, near-term. These include an BGaming, formerly Managing Director, implementation of junket commission caps Senior Gaming & Lodging Analyst at (SJM’s Stanley Ho has organized a meeting Deutsche Bank in Las Vegas, gave his reaction of concessionaires/sub-concessionaires to the selection of Mr Chui as Macau Chief this week regarding implementation); the Executive-elect. 60th anniversary of PRC establishment “It is our view that Macau visa restrictions (1st October 2009); a macro credit thaw have been easing quietly, which seems more would work its way to Macau helping to characteristic than a splashy announcement shorten junket credit cycles—bolstering about an official ease that some are working capital and rolling chip volume in anticipating,” said Mr Lerner. turn; further expansion of the Individual “That said, we do believe Beijing, as a Visit Scheme (IVS) to extend to additional sign of support for the new administration, provinces; phase two of Gongbei Gate will ultimately issue a supportive statement expansion (4Q09), Lotus Bridge gate about the importance of Macau’s key expansion (Year ending 09 twenty more industry, and ultimately higher frequency vehicle lanes), Pac-On ferry terminal visitation will become easier. Since the additional berths (YE09); Encore Macau, 10th anniversary of Macau’s handover to L’Arc, and Oceanus openings; potential HK China coincides with Chui’s effective date listings for WYNN and LVS (which could (December 20), this timing seems logical. favourably mark-to-market valuations for “We anticipate additional catalysts Galaxy and SJM).”

11 Singapore

Bay Watch How important is Marina Bay Sands for LVS?

as Vegas Sands Corp. (LVS) remains under some pressure regarding its Macau project debt. As a result, analysts and Linvestors are interested to know what difference, if any, the opening of its Marina Bay Sands (MBS) integrated resort in Singapore will make to the fortunes of the company. CLSA Asia-Pacific Markets, an independent brokerage and Singapore is a more popular destination for Indonesians, Thais and Malaysians investment group, has attempted to give some insight into that issue following a recent investors’ site visit in Singapore and discussion total. Ahead of running our own estimates, we believe this seems Big bucks - Total cost of casinos built around with LVS executives. reasonable. A quick reminder that in the US it is 50/50 (gaming/non- the world Aaron Fischer, CLSA’s Director of Gaming & Leisure Research, based gaming) and in Macau 90/10 (gaming/non-gaming). in Hong Kong, and his colleagues Dhruv Vohra and Jon Oh, based Marina Bay Sands “Management expect that gaming revenue could be split more Resorts Singapore in Singapore and the United States respectively, cover the topic in towards VIP than mass with around a 60/40 split. There is space for Wynn Las Vegas their recent report ‘Red Dot Roulette’. In case readers are wondering, 1,000 gaming tables but the final number or mix between VIP and Venetian Macau Singapore’s leaders and citizens often refer self deprecatingly to their mass market has not been disclosed,” continues the report. Encore Las Vegas city state as the ‘red dot’—probably because of map makers’ practice “With respect to VIP play, management believe it will be less City of Dreams Venetian Las Vegas of using red dots to indicate the capital cities of countries. likely that a junket commission war breaks out, as [of the sort seen] Bellagio “A review of consensus [opinion] suggests that the Ebitda in Macau, given the existence of only two players [operators]. Wynn Macau [earnings before interest, taxation, depreciation and amortisation] We would agree. Also, MBS will be heavily targeting direct high- MGM Grand contribution [of Marina Bay Sands to LVS] is expected to be between roller play. While there is scope to attract players that are visiting Mandalay Bay US$700 million to 800 million in 2011-12, which represents around Paris Las Vegas Macau, the MBS business model has not been created to tap into Sands Betlehem 40% of group Ebitda. Also, the valuation contribution is also expected Artistic scale model of the Marina Bay Sands that market segment. The Mirage to be around the same level,” says the CLSA report. “It seems that the market will be sufficient if tourist arrivals do Grand Lisboa The team also gives useful figures on MBS’s expected table and Ebitda of around US$700-800m. This would depend on forex [foreign meet the Singapore Tourism Board objectives of 17 million [arrivals Luxor slot inventory and compare them to those of the other LVS properties exchange] rates and also the mix of VIP and mass-market business. annually] (from 10 million),” says CLSA. Crown Macau Treasure Island in the US and Macau. Also, we would need further clarity on a number of regulations,” the “While no official comment has been made, it seems that the Star World “The company hasn’t disclosed the exact number of gaming CLSA team adds. junket commission rate will be around 1.25% with scope to pay New York tables and slots, but we can see from the following comparison “We did not drill into too much detail on debt covenants slightly more to bring in players from further away destinations.” Monte Carlo that MBS will be one of the largest casinos for the group, alongside and financing plans, and we will follow up with management Palms (US$m) Venetian Macau,” say the authors. on the finer points in due course. Nonetheless, we understand MBS vs RWS [Resorts World at Sentosa] and Macau Sands Macau that the debt covenants kick in after the first full four quarters. “Singapore maintains quite an advantage over Macau with 1,000 2,000 3,000 4,000 5,000 6,000 Table and slot comparison by property When opened, the credit facility will not be completely drawn respect to infrastructure, particularly in terms of airport capacity and Source: CLSA Asia-Pacific Markets Units Tables Slots down with payments made in 2010 and MBS will be still paying proximity,” says Mr Fischer and his team. [Resorts World at Sentosa] as there is a greater focus on ‘getting Sands Bethlehem na 3,000-5,000 out for capex [capital expenditure] until 2Q2011—around “Singapore is expected to be more popular for Indonesians, it right’ for the opening. We believe this is a sensible approach, Venetian Las Vegas 130 1,550 Palazzo Resort 130 1,375 US$500m in 2011. By that point, management should be Thais and Malaysians. Visitors from these markets have different particularly as both resorts have a different product positioning. Sands Macau 505 1,250 generating at least S$800m in Ebitda or there may be some preferences or interests than the typical mainland player in Macau. When compared to RWS, [MBS] management cite the clear Venetian Macau 700 2,200 debt covenant issues. The current borrowing cost is between More often than for players in Macau, it is expected that the partners differences in positioning—that MBS is focusing on the MICE Four Seasons Macau 120 180 3-3.5%, which is based on Sibor [Singapore Interbank Offered and families will also join [sic]. [Meetings, Incentives, Conventions and Exhibitions] business while Marina Bay Sands c.750 1,500 Rate] plus a minor spread. “Customer expectations [in Singapore] are considered to be RWS is more targeting the family experience, particularly with the Source: CLSA Asia-Pacific Markets “Gaming will contribute a significant contribution to earnings. slightly more advanced, with greater demand for luxury shopping Universal Studios and water-themed attractions. This is not implying that non-gaming will under perform. In fact, and high-end restaurants for Singapore customers versus Macau,” “The RWS site is 3 times larger but has height restrictions of The numbers management expects the hotel, retail and other components to be states CLSA. 11 storeys. Both resorts should be complimentary to one another, “During 2008, the company had provided guidance for 2012 very competitive in Singapore. (We believe these components will “Indonesians seem to be a potentially very lucrative market for although both will compete more directly on the gaming side,” Ebitda of US$1.2bn. Understandably, the company is no longer perform exceptionally well). However, we need to recognise that Singapore—the distance is not far; and many wealthy Indonesians suggests CLSA. maintaining that guidance, as the world is now at a different place the average bet in Asia is around US$100 versus Las Vegas at closer maintain private wealth management businesses in Singapore. It than where we were previously,” says CLSA. to US$20. This comes down to the greater propensity to gamble of is possible that Singapore becomes a more interesting option for The casino “Management believes that MBS will generate the highest Ebitda Asian players versus American customers. those players, who currently visit Crown in Melbourne or Burswood “The casino will have a similar atrium style to the Sands Macau out of any casino globally, which we also tend to agree with. Ahead of “Previous guidance [from LVS on its Singapore business] in Perth. with two mass market floors and two VIP floors. The street level finalising our own model, it appears that consensus is expecting 2012 suggested that gaming Ebitda would represent around 75% of “In terms of timing, MBS are not in a race to open before RWS will be on the second floor; looking up will be the VIP rooms

12 INSIDE ASIAN GAMING | August 2009 Singapore

Bay Watch How important is Marina Bay Sands for LVS?

and looking down will be a huge mass-market floor,” states the on margins,” says the report. analysts’ report. “The Mass Rapid Transit (MRT or subway) will connect to this SkyPark to become a major Singapore icon lower mass market floor. This is an important point because MBS “The SkyPark will be longer than the Eiffel Tower and the will have two major entrance points into two mass-market casino cantilever (the part that sticks out over the edge) will be 60m. On floors—we know that in Macau, if there is only one entrance from top of the SkyPark, there will be two areas: one public and another the street, it becomes much harder to drive the traffic to the upper private. We understand the majority of the space will be for private casino floor. use, ie, for use by hotel guests. We believe one of the highlights “This means that the utilisation for both floors should be fairly will be the 150m infinity pool running along the front and looking high or at least even. But note that the MRT station will not be over Marina Bay. The model and artist’s impression look impressive operational until 2012. and we can’t wait to see the finished product. The public area will “MBS expects that within [the] VIP [accommodation] there will feature restaurants and bars. We believe the SkyPark will become a be more rooms to account for the different player segmentation/ key attraction for tourists and locals.” demographics. In Macau, nearly all the VIP players are from the mainland or Hong Kong (and for the record, I have never seen a Hotels: Three blocks, two styles Caucasian player in the VIP rooms in Macau in the past five years),” “There are three hotel blocks with two styles of rooms. One asserts Mr Fischer in the report. looks back over the gardens and will have a balcony with garden “Singapore will attract a wider variety of nationalities and MBS planters. The other room will overlook the bay and Singapore city. will have to cater for cultural differences and ensure each player is as We imagine that the former style will be more popular with tourists comfortable as possible. Even in the mass market, the players will be and the latter for business visitors,” say the survey authors. more diverse. Ultimately the game of choice in Asia is baccarat and “The hotel atrium (looked very high but not sure of height in this game will dominate. But, with more customers from the Middle metres) runs between the three hotel blocks, being the widest at the East, Indonesia, India, Eastern Europe, Australia, the UK etc, MBS will hotel entrance at tower one and narrowing to tower two and then offer 19 types of games to start with (this compares to 11 in Macau). three. We understand there will be a major piece of artwork and But the product mix will be adjusted as play dictates. also be 3-4m high pot plants, which are being specifically crafted “The entrance fee for locals is S$100 per 24-hour visit or an overseas.” annual fee of S$2,000. We understand that both the one annual fee as well as [the] 24-hour visit fee only entitles the patron to [visit] MICE focused property specific IRs and not to [sic] both. We understand that “The MICE area is huge and will be a dominant feature of the there will be two entrances, one for locals and one for foreigners. IR. There are two other convention facilities in Singapore, but “Locals will be required to supply state-issued identification. We this will be larger and also directly connected to hotels, other understand that all foreigners will not be asked for identification facilities and entertainment options. There is capacity on the but be spot confirmed. One investor asked if IR management 4th floor ballroom for 6,000 persons for dinner. Levels two and could offset entrance fees with comps (complimentary goods and three contain meeting facilities, with the exhibition space on the services such as food vouchers) but management said this would not ground floor. The design and capacity is similar to Macau and be possible because it conflicts with the intention of the regulations,” Las Vegas. We believe Singapore might be able to attract more reports CLSA. meetings versus product exhibitions. Singapore has missed the “In Macau, the VIP business (which is around 70% of total rotation of events in the past and will now be able to capture gaming revenue) is divided between 75% junket and 25% direct (with player). MBS expects the split to be more like 50/50 or 40/60, as Singapore has an established banking system. “In Macau, one of the primary roles of junkets is facilitation, as there are limits in the amount of renminbi [Chinese currency] that can be brought into Macau (Rmb20,000 and US$5,000 per visit [from Mainland China]—which is less than the average bet in a [Macau] VIP room). “MBS expects Indonesia, Malaysia and Thailand will be a rich source of VIP players for Singapore given the close proximity [of those countries to Singapore]. Russia, Middle East and India will also be a new source of players for the Asian gaming markets, which previously have not found [sic] Macau to be a popular destination. “The higher mix of direct players bodes well for margins. (But please note that cash rebates are also provided to direct players). MBS expects that a reasonable junket commission rate is 1.25%, this is the rate which operators are seeking in Macau (rates currently vary from 1.25% to 1.4%). With only two players in the market, we believe a junket-commission battle is less likely, as As in Macau and Las Vegas, MICE will be an important part of the seen in Macau recently which had a significant negative impact equation for the Singapore resorts

14 INSIDE ASIAN GAMING | August 2009 August 2009 | INSIDE ASIAN GAMING 15 Singapore

this customer base,” suggests CLSA. “We understand that the first event is booked for 1st April 2010. The sales teams are generating ‘tremendous interest’ but the company has not disclosed booking numbers and other statistics. We should keep in mind that the current environment is not ideal for these kinds of bookings, with the booking lead time down to around 30 days versus the previous average of 9-10 months in Las Vegas and Macau. Those events from further afield will tend to book earlier due to logistical issues, such as long-haul flight bookings. Currently, 88% of LVS Macau bookings are held within 34 days.” Retail and restaurants: Will be popular with locals “Retail will be an important element to attract visitors, particularly from Singapore. We understand the response from retailers has been ‘good so far’ and the company will announce the anchor tenants soon. We would be expecting brands such as Louis Vuitton, Gucci, Tiffany, Cartier, Hermes, Prada, Tod’s, Burberry—i.e., the usual suspects. The company mentioned there are some very exciting elements being incorporated into the design, which will really differentiate the retail environment vs the existing offering in Singapore—this is intriguing but we weren’t able to squeeze any more info from management on this. We understand the mall will feature vast natural sunlight and have canals—with boats for rides but sadly no gondoliers (as at the Venetian Macau).” “There will be numerous restaurants and bars, including a 24-hour lobby restaurant (we believe these work well The MRT will be a big plus when it opens in 2012 because they create atmosphere) and a large Chinese restaurant. There will also be six celebrity chef restaurants—names have not Staffing and training yet been announced.” “Staffing and training is a challenge for both MBS andRWS, especially as getting the service delivery right will be one of the Other entertainment options key long-term success drivers of both resorts. On the casino side, “There are two theatres with around 2,000 seats each. One dealers take around three months to train up from no experience. We will house a resident show. Currently the average running time is understand that the dealer positions will be filled by Singaporeans around 12 weeks. With 90% of tickets sold to locals, the duration and the managerial and supervisor positions will be filled by those is limited. MBS hopes that tourists will be able to ensure a longer with more experience in the casino industry, which may mean more running time, which we believe would substantially improve the positions are filled by expatriates,” state the analysts. economic-return profile. MBS hopes to leverage relationships with “The IR would require as much [sic] as 10,000 people to operate, a major shows globally such as Phantom of the Opera and the Blue large number for any city. Of the 10,000, around 4,000 will be required Man group. The other theatre will be for limited duration events for the casino, 4,000 for the hotel and 2,000 for others. Of this, 15% from one day to one week, etc. Examples would be rock concerts will be management and supervisory positions. MBS is working and fashion shows,” says CLSA. closely with relevant government bodies to ensure that the process “The ArtScience Museum will be in the lotus-inspired building is equitable for all interested parties (like the government, MBS and on the water. MBS will curate some events and bring some in from local workforce). The recent increase in unemployment will alleviate other institutions. There will be a waterfall to capture the water when some of the issues and prevent a bidding war with RWS, which will raining and a lightshow to draw the crowds. An event plaza will be on also need around 10,000-11,000 employees. We understand that the the front waterside promenade with capacity for 10,000 people. The dealer wage would be up to S$2,000 per month, or maybe less. levels are adjustable depending on whether the event is on the water “In terms of people, we understand that the average age is (stepped down) or in the sky, for example for fireworks, in which case slightly older at 32 vs 26 in other markets. We understand that ex- the platform would be flat.” Singapore Airlines staff is a very rich source of talented employees. The applicant mix tends to be more skewed to males versus females, Connectivity which is the opposite to other casinos.” “As mentioned earlier, the MRT will open in early 2012 and MBS CLSA ends its report on Marina Bay Sands in an upbeat mood. is working with the authorities on this matter. In the meantime, “Marina Bay Sands is set to become a premier entertainment customers can arrive via taxi, buses, drive their own car (2,600 car destination with its vibrant diversity of attractions and facilities, parks) [spaces] or get the MRT to Marina Bay and walk the last few according to the company’s website. The vision is to build an hundred metres. In terms of pedestrian access, there will be a bridge integrated development that is timeless, a landmark that possesses a connecting MBS to the Suntec complex.” distinct identity which will distinguish Singapore from other cities.” 16 August 2009 | INSIDE ASIAN GAMING 17 Macau

Dynasty Dr Stanley Ho’s recent hospital stay has focused minds on a Macau without the ‘King’ of gambling

hat a difference a week makes. other than some vague notion (recycled the Executive Director, or to Angela Leong, Only days after Dr Stanley Ho at regular intervals by United States law Dr Ho’s fourth consort and mother of his Wwas declared the new chairman enforcement agencies) that shady characters youngest children. of what in effect is a cartel of the Macau are associated with VIP gaming rooms in Dr The primogeniture model favoured casino operators designed to tone down Ho’s properties—is anyone’s guess. by European feudal aristocracies (i.e., competition and see them though the chill inheritance by the first-born son) is typically of recession, he was out of the game through Succession planning found in business dynasties in China and the ill health. What does seem clear is that the health rest of Asia. It’s been reported that Dr Ho underwent scare has focused attention on the leadership But in a business ‘reign’ as long as Dr surgery at Hong Kong Adventist Hospital for succession at SJM Holdings, Dr Ho’s Hong Ho’s, with 17 children born over the course a blood clot on the brain. Kong-listed casino operating company, as of more than four decades, a succession Some of the more lurid media speculation never before. style more akin to the Ottoman Empire has suggested that Dr Ho’s removal (albeit Depending on what you read and seems to have emerged over the years. one hopes on a temporary basis) from the whom you believe, SJM is either a top down, Under the Ottoman system, individual Macau gaming scene could see a reprise command and control organisation, or wives would manoeuvre to try and ensure of the triad turf wars that broke out in the operated on a ‘divide and rule’ basis. In the their own (male) children were the last ones territory prior to the handover to Chinese latter analysis, SJM is said to have parallel and standing in the race to the throne. administration in 1999. often overlapping management structures Lawrence Ho, Chairman of Melco What the basis is for this speculation— reporting respectively to Dr Ambrose So, International Development and Co-

Dr Ho, third from right, heads the Chamber of Macau Casino Gaming Concessionaires and Sub-concessionaires

18 INSIDE ASIAN GAMING | August 2009 Macau

Chairman of Melco Crown Entertainment (Nasdaq: MPEL), the operator of City of Dreams, and his sister Pansy, a joint venture partner with MGM MIRAGE in the MGM Grand Macau, as well as managing director of Dr Ho’s investment companies Shun Tak and STDM, are the names that usually come up in connection with the succession issue. Grounds for dispute That rather supposes, though, that Ms Leong and Dr So would simply stand aside and let one or both of those relatively ‘senior’ offspring run things. That is by no means guaranteed, especially in Ms Leong’s case. The Ho family has shown over the years that it is not afraid of litigation and has the funds to pursue it. That was proven by the drawn out attempts by Dr Ho’s sister Winnie to block the flotation of SJM last year. It also assumes SJM would be kept whole, rather than being broken up into composite parts for absorption into the existing gaming operations of Lawrence and Pansy, as a sort of ‘living will’, or sold off in chunks to any other interested party willing Dr Stanley Ho upon receiving the G2E Asia Visionary Award to pay for the privilege. Assuming SJM were kept whole—at least lose some of the very qualities that have Macao and MPEL’s City of Dreams have in the immediate period of succession—it allowed the company to maintain a healthy in effect kissed and made up regarding could prove an awfully juicy bone for any share of a growing ‘pie’ in terms of gaming competition on VIP commission at their dogged litigants to chew on. The potential revenues. neighbouring sites on the Cotai Strip™. There for such goings on when the stakes are that To say Dr Ho has seen it all and done could be more operator love-ins to come. high was shown last year, regarding the it all in Macau gaming may not quite be As Stephen Weaver, Asian regional fortune of Hong Kong heiress Nina Wang, accurate because his reign isn’t over just president of LVS, told IAG after the also known as ‘Little Sweetie’. Ms Wang, who yet. But he does have an ability to bring inauguration of the operators’ Chamber died two years ago at (by modern Chinese disparate groups together for the benefit of at the Grand Lisboa Casino in relation to standards) the relatively girlish age of 69, the gaming industry and its shareholders— the bilateral deal on commissions: “We’re was estimated by Forbes to be worth US$4.2 as well as for the wider community through neighbours, we’re on friendly terms, so it billion in 2007. philanthropy. didn’t make sense to enter into [commission] A recent example of Dr Ho as both agreements that might have to be amended Fatal distraction fixer and mediator came in late July when later at the behest of the government.” Any power struggle within or about SJM he was named the inaugural chairman of Dr Ho is no softie and has been known to in a post-Dr Ho world would at the very least the Chamber of Macau Casino Gaming use some choice terms when he wishes. But be a major distraction for the company in Concessionaires and Sub-concessionaires. he does have the experience, the diplomatic a very challenging and competitive era in ‘Cartel’ is not a word you will hear skills and ultimately the pragmatism to Macau gaming. being used by the chamber or its individual make people see, as the Italians say, that Both Pansy and Lawrence have proven members. But if it walks like a price-fixing ‘one hand washes the other’. For the Macau themselves to be very competent business duck and it quacks like a price-fixing operators to tear each other apart now people. But arguably a significant part of the duck, then—Inside Asian Gaming would might benefit some consumers for some of brand value of SJM lies in Dr Ho’s personal maintain—it’s a cartel duck. Casino operators the time. Ultimately, though, the chances relationships with powerful people in who might otherwise be at each other’s are that a price war would merely strangle Macau, Hong Kong, and Mainland China, corporate throats in a red meat capitalistic at birth any aspirations Macau has to be a as well as the wider world, and his ability to system such as the United States, seem quality tourism destination, and instead broker deals with them to SJM’s competitive happy to sit down as meekly as lambs once create a world of product piled high and advantage. Dr Ho gets them together for dim sum. sold cheaply. Were SJM to be run on less idiosyncratic For the sake of Dr Ho in particular and and more corporate identikit lines, as just Peace breaks out Macau in general, we must all hope he can another listed gaming company, it could Las Vegas Sands Corp’s The Venetian get back to his desk as quickly as possible.

August 2009 | INSIDE ASIAN GAMING 19 Transact

Fit to Print Tracey Chernay, TransAct Technologies’ Senior Vice President of Sales and Marketing, discusses the strong showing of the Epic 950 printer and her company’s continuing solid financial performance in the face of the recent economic downturn

ransAct’s Epic 950 printer was specified as the printer of choice on all the slot machines at the glistening new City of Dreams Tmega resort on Macau’s Cotai Strip. As TransAct Senior Vice President of Sales and Marketing Tracey Chernay explained, “we integrated with all the major [slot machine] manufacturers that are on the floor there and supported the City of Dreams opening. I’m really thrilled with the opportunity to be in a property of that calibre, and the size of the win was tremendous.” As Ms Chernay points out, “we gained some real groundswell of support for the 950 in Asia. It started with Wynn Macau, then Crown and now City of Dreams, as well as many of the other properties that have chosen the 950 when they add printers to their floor.” Inside Asian Gaming caught up with Ms Chernay recently in Macau to ask her about TransAct’s progress in the region.

IAG: How has TransAct been able to do so well in Asia? Ms Chernay: I think a lot of it has to do with having local sales and support here in Macau. We have a resident sales manager, Andrew Hanley, who works here, who is really key to our success in this region. Andrew is accessible, he has the support necessary to make all of the equipment work smoothly, and has a great relationship not only with the customers, but also the good interface back into engineering with our company. This can make it pretty seamless for both the casino properties as well as the OEMs [original equipment manufacturers]. Tracey Chernay, Senior Vice President of Sales and Marketing of TransAct Technologies Beyond the local sales and support, the product itself has shelf very minimal, because you only need a few spares. You don’t obviously also been a big reason for the success of TransAct in need specific Bally spares or IGT spares. It keeps the need for having the region. What advantages does the Epic 950 offer over other extra inventory down, which saves costs. printers? Among the unique features of the 950 are the ease with which The real advantage of the 950 is the serviceability, ease of use and you can integrate the product with the support tools we provide for reliability of the product. We’ve had tremendous reliability ratings the OEMs to get the product integrated. And for the operator, there’s with the product. We track quality very closely, and our failure rate on the ability to access the paper pack very easily, to buy component the product is so low that most of the operators don’t have occasion parts for a 950 should they need to, and then easy warranties with us to have even one replaced. that allow them to just pull an old printer out, pull a new one off Secondly, there’s a feature of the product that makes it the shelf, and then we’ll just pick up printers on a regular basis a little bit unique in that the outer chassis of the printer is and just provide replacements for them. mounted into the EGM [electronic gaming machine], and The thing that the operators like the it stays there. That’s the connection to the EGM. The best is that the high reliability inner chassis of the printer comes out, and it doesn’t factor means they don’t matter whether it’s a Bally, have to think about IGT or WMS game, you the printer much. It just flash the correct saves them costs of firmware on it and it can servicing and saves go in any game. That them on staff time. And makes the requirement to keep spares on the TransAct’s Epic 950

20 INSIDE ASIAN GAMING | August 2009 Transact

their staff like the 950 because it’s easy to use. One other thing the operators say they like about the 950 is that in terms of the paper stock, the 950 will notify when the printer is down to just one or two tickets left, and the operators like that ability to notify when it’s down so close to being out, because that way they don’t get so much paper left in the tray when they put in a new ticket stack, and so they’re not wasting. Other printers notify when there are 30 or 40 tickets left in Epic 880 the stack. Competing products can have a lot of paper left in the printer when they notify ‘ticket low’. With the 950 you can specify down to very low, down to one or two tickets. That is a real advantage; it’s less paper wastage, it’s more green, and everyone’s looking to be a little more environmentally friendly, as well as saving money. Each product works differently, and the older products in particular that might have been out there for longer don’t have the ability to go Macau’s City of Dreams specified TransAct’s Epic 950 as the printer of choice on all its slot machines down to such a low trigger. yet announced second quarter results, but we’ll keep you posted on Your latest product launch was ServerPort™. How has that how we’re going. been doing? We’ve been working with all the major OEMs to make sure that What do you attribute your positive results to? the ServerPort™ is integrated into their system, and what it does is It really gets down to having innovative products, great customers provide the ability not only to download firmware remotely to the relationships and superior service in our regions. If you look at what printer and to monitor the printer status through applications like we’ve done here in Asia, for example, by locating sales and support Bally’s display manager and DCM, for example, but also it provides in the region, our customers believe they can count on TransAct, they access to the dualport of the printer that will allow you to print know how to reach us easily, the communications flow easily with coupons and vouchers separate from the gaming ticket. So that local sales and support, and I think it’s critical to the whole equation. dualport capability is really important and ServerPort™ is the access It’s product, and place, and price and the entire offering. We really to that dualport. wrap that up in a package for the customer that I believe is superior Right now we’re at the stage of working with the OEMs and to anything out there. educating our casino customers about what ServerPort™ can offer The City of Dreams win was a big one for you, but with the go-slow them, and we’re excited about that potential. I think what you’ll on development of further new casino properties, are you concerned see is that as this region grows in the number of properties and the about TransAct’s prospects over the next couple of quarters? properties become more competitive with each other, they’re going Obviously, we’re very interested in the health of the overall to be looking for ways to differentiate themselves and reward their gaming industry and want to see the gaming industry come players. We think ServerPort™ will be a key part of that strategy. back. We’re all very dependent on that. However, we’re also very ServerPort™ will offer those really forward thinking properties aggressive about going out there and winning the business that’s with great marketing departments access to another tool they available to be won. We are offering more value and performance can use to differentiate their property. For example, coupon in every proposal with a commitment to personal customer service. printing might be a key one for several major properties in the And to that end, we’re also making investments in our business. For Asian region, where they can incentivize their customers, cross example, we’re in process to add incremental sales and technical market to outlets within their properties, as well as reward their sales positions to take advantage of opportunities in existing players who have been loyal and played a lot with them, by and also developing markets. offering them some comps. Despite the economic crisis and the waning fortunes So are you in the unusual situation of increasing your of the gaming industry worldwide, TransAct’s business is headcount, while other gaming suppliers are actually growing... laying off staff? TransAct has been particularly fortunate to have a Yes, we are growing staff. We’ve just added a very diverse business. We’re not only in the gaming number of people to our staff in inside sales and business, but also in banking teller printers, point marketing, so TransAct is actually growing. And of sale and lottery. Fortunately for TransAct, we we expect that you’ll see further growth from us had a record year in 2008—across the board, here in Asia in the short term. We anticipate that but particularly in gaming. The First half of we’ll be adding even more local technical support 2009 is going quite well, and we announced to work alongside Andrew as well. our first quarter and we were profitable. We’ve not ServerPort 950

August 2009 | INSIDE ASIAN GAMING 21 22 INSIDE ASIAN GAMING | August 2009 The ‘G6’ A bilateral deal on Macau VIP commission could spell a new era of operator cooperation

he ‘pile ‘em high sell ‘em cheap’ to drop off during the recession and the being gazumped by the competition. approach to VIP table gaming in Macau effects of baccarat house return volatility Tcould get a little harder in future kicked in. Price deals following a bilateral deal between Melco An interesting question from Inside Asian The prospect of some sort of price fixing Crown Entertainment Ltd (Nasdaq: MPEL) Gaming’s perspective is why the commission arrangement on the commission issue and and Las Vegas Sands Corp. to cap Macau VIP deal was bilateral and not universal among other topics such as casino staff pay may agent commissions at 1.25%. the operators. The Macau government however have moved a little closer in Macau. What this means in practice is MPEL indicated last year it would be minded to At the end of July senior representatives from yielding 0.10% commission to the market. knock heads together and legislate a 1.25% the six licensed and sub-licensed operators This has been on the cards for more than commission cap if the industry didn’t put its met at Sociedade de Jogos de Macau’s (SJM) a year following a price war started when own house in order. Grand Lisboa property to sign an agreement MPEL signed a 1.35% commission deal One possible explanation is that MPEL that formalises the establishment of a trade on rolling chip turnover with the Hong and LVS were currently the only Macau body—a sort of ‘G6’ for the operators. Kong listed junket consolidator Amax late operators competing against each other at As an indication of the significance of in 2007. In the deal MPEL took a gamble a commission rate above 1.25%. Another the new arrangement, the signing ceremony that cutting its margin on VIP play would is that the other operators can’t agree for the grouping—known officially as deliver volume by creating impossible- among themselves on a cap and so MPEL the Chamber of Macau Casino Gaming to-ignore incentives for the agents. Those and LVS are leading the way in the hope Concessionaires and Sub-concessionaires— economies of scale would ultimately mean the others will follow. A third is that the was held in the presence of a who’s who restoration of MPEL’s margin, the company remaining concessionaires won’t disclose of the industry. Those attending from the reasoned. And so it came to pass—for a to rival operators—even within the highest government side were: Edmund Ho, Chief while—until other operators joined the executive circles—what commission deals Executive of the Macau SAR; Francis Tam, price war; rolling chip volume started they have struck with agents, for fear of Secretary for Economy and Finance, and

August 2009 | INSIDE ASIAN GAMING 23 The G6

Dr Manuel Neves, Director of the Gaming Inspection and Coordination Bureau, the territory’s gaming regulator. From the operators’ side, the representatives were: Dr Stanley Ho, Managing Director of SJM, S.A.; Francis Lui, Vice Chairman of Galaxy Casino, S.A.; Linda Chen, COO of Wynn Resorts (Macau), S.A.; Stephen Weaver, President of Asian Region of Venetian Macau, S.A.; Pansy Ho, Managing Director of MGM Grand Paradise, S.A.; and Lawrence Ho, Co-Chairman and CEO of Melco Crown Jogos (Macau), S.A. Such a pubic show of harmony by the operators would have been hard to imagine even late last year. Back then, the operators were in a war not just for customers and revenue but also in a war of words over their respective approaches to investment in Macau. Mutual concern Now, during a recession, the operators probably have more commonality of interest—not least in keeping overheads down and margins stable or if possible rising upward. Even before the signing ceremony at the Grand Lisboa, the operators had been meeting regularly this year to discuss issues of mutual interest, including pricing and intensity of competition. One of the striking things about the association is that in those initial meetings it was the very top people such as Dr Ho and Mr Lui, or their immediate deputies, who were getting together for discussions. This suggests they had a mandate for direct policy making Representatives of the Macau operators gathered at the Grand Lisboa to form the Chamber of rather than merely acting as a talking shop. Macau Casino Gaming Concessionaires and Sub-concessionaires It may be that as the Association matures and broad principles are agreed among the the trade association is window dressing jobs and social harmony. That doesn’t mean operators, more discussion and negotiation and how much of practical benefit to the the end of cutthroat competition for VIP will be delegated to subordinate executives industry, workers and consumers, time customers and turnover. at committee or sub committee level. This will tell. Unions might argue a cap on The insider told IAG: “The structure of makes practical sense given that the time wages helps operators and their investors VIP room agreements often means working and availability of the top people is often but doesn’t help workers very much. The capital is provided via a third party company limited. operators might equally counter that a to a betting agent who then extends credit What the whole trade body trend does wage war during a recession risks damaging to players. Commission on the resulting suggest is that Macau’s political leadership the very industry that created the jobs in the rolling chip volume need not come in whole has in effect conceded it is willing to allow first place. out of the operator’s end of the deal. the industry to put its own house in order. “It can come via incentives offered to the The area where politics and commercial The fine print VIP agents via the capital-providing entity. interests can sometimes overlap—such as When it comes to commission caps, as Essentially it’s a question of ‘borrow more competition over VIP commission—is an one industry insider pointed out to IAG, the working capital from us and we’ll do you a especially sensitive one for local politicians. devil is in the detail. The purpose of the cap better deal on price’. That way the operator They appear to prefer a laissez faire approach in the first place was to prevent so-called can perfectly safely say to the government and small government as far as management ‘irrational’ competition between operators ‘We’re sticking to the commission cap’ when of the gaming sector is concerned. to the detriment of operator margins and in reality its VIP room partners are still battling How much of this new togetherness by ultimately the detriment of local industry away for customers,” adds the source.

24 INSIDE ASIAN GAMING | August 2009 25 Transact

IntegratedIntegrated ResortResort 2.02.0 TheThe nextnext generationgeneration ofof casinoscasinos maymay bebe leaner,leaner, meaner—andmeaner—and tallertaller

as Vegas-style integrated resorts were going to transform nights, but the people in there aren’t necessarily gamblers. The issue Macau’s gaming industry. But the non-gaming facilities of may be, rather, was the money and effort used in building the bar in Lthe most spectacular proponent of this business model—The the first place really worth it in a heavy gamblers’ market like Macau? Venetian Macao—have arguably underperformed so far relative to Would MGM MIRAGE and Pansy Ho have been better off using the the capital invested in them. space for more gaming tables? A conference session at G2E Asia 2009 titled: ‘The It depends. It depends in particular whether you think Integrated Resort: Scaled Down?’ heard how the industry a service industry (for that after all is what the casino in Asia and further afield is responding to the lessons business is) should merely reflect consumers’ existing learned. tastes, or whether it should strive not only to anticipate Paul Heretakis, Vice President of Westar Architects, but also actually to create new tastes. How for example did has some insight about what works in the United States. we know that people would like modern theme parks until His company has reportedly been involved in a number of Walt and Roy Disney actually built one? high profile casino design and remodelling projects there, While some developing trends prove to have universal including The Venetian, The Bellagio and Beau Rivage in Las appeal, understanding cultural differences in the globalised The Crown Vegas, and Harrah’s and Trump Plaza in Atlantic City. Entertainment market as it exists today is critical for designers and “In America, a bar on the casino floor creates a ton of Complex in architects to create new IRs and evolve existing ones, said energy. Here [in Macau] a bar sucks the energy right out of Melbourne, Mr Heretakis. a place—there’s nobody drinking and nobody wants any Australia part of it,” suggested Mr Heretakis. Growing pains For example, it is well documented that non-gaming amenities in Trend follower or setter? Las Vegas make up a much larger portion of market revenue than they While this makes for a good sound bite, it isn’t necessarily accurate. do in Macau. That doesn’t necessarily invalidate the transplanting of The Lion’s Bar at the MGM Grand Macau for example is packed most the IR concept to Asia, asserted Mr Heretakis.

26 INSIDE ASIAN GAMING | August 2009 In Focus

“In Las Vegas and Atlantic City, resorts started out small and grew as new dining and entertainment trends were added. Here in Macau some of the amenities are brand new so an evolution process needs to take place. Instead of the resort growing with the market, this market has to grow into the resort,” he suggested. A popular perception internationally about the Asian casino industry is that it tends to borrow design, marketing and merchandising ideas from Las Vegas and other Western jurisdictions. But Western casino operators appear to be drawing on important lessons learned by Asian casino developers. A combination of rising land values during economic boom times, and stressed balance sheets during a bust, has led many Las Vegas operators to focus on incremental changes to existing properties rather than building anew on green or brown field sites. For at least the previous three decades and probably longer, the Vegas model was one of so-called ‘implosion’, i.e., the constant tearing down of properties that had reached a certain age, and their replacement with new ones. “The idea of building big resorts [in Las Vegas] is dead—for now,” Dennis Forst, a stock analyst with KeyBanc Capital Markets told the Las Vegas Sun in July. “Investors want to know how they’re going to pay down debt and shore up their balance sheet. They don’t want to hear about spending a billion dollars on a new venture,” he said, referring to the financial troubles of Las Vegas Strip resorts now under construction. Softly softly That incremental approach has been seen in Macau, with Stanley Ho’s casino holding company SJM adding hotel accommodation to his Grand Lisboa property and Steve Wynn currently building Encore Macau, the VIP-focused extension to Wynn Macau. As US real estate becomes more expensive and projects extract more value from less space, architects have begun adopting Asian design techniques, said Brad Friedmutter, founder and CEO of Friedmutter Group, during the G2E Asia 2009 session. The Group is an architecture and design practice with offices in Las Vegas, New York, California and Hong Kong. In recent years the average ‘footprint’ (i.e., plot size occupied) of new Las Vegas developments has been shrinking relative to the amount of gaming, retail and hotel space on offer. This mirrors exactly the format of developments on Macau peninsula, where land is scarce and expensive. Only on the island of Cotai, reclaimed from the muddy waters of the Pearl River Delta, have the operators been able to stretch their integrated resort ‘legs’. Mr Friedmutter believes condensed sites and multi-level casinos will eventually become the norm across US markets.

The Lion’s Bar at the MGM Grand Macau has been a successful hit in the city’s nightlife

August 2009 | INSIDE ASIAN GAMING 27 Table to Cage Gaming Partners International has been managing Asian gaming chip supplies for more than four decades

aming Partners International S.A.S. Pepper’s Lonely Hearts Club Band album “Here [in Asia] most of the casinos using (GPI) is a strong contender for the and two years before US astronauts landed RFID are using readers at the cage only, for Gtitle of longest continuous supplier on the Moon. the moment, as a filter to check all ‘in and of equipment to the Macau gaming market. “We’ve been supplying STDM and out’ transactions,” explains M. Leparoux. The French company has been supplying latterly SJM since 1967. In that time we have “The operators here in Asia are investing betting chips and plaques to Dr Stanley Ho’s supplied several million pieces of gaming in RFID for security purposes to secure their gaming operation for more than 40 years. chips to the Macau market,” says Christophe chip bank. That’s good. But everybody To put this extraordinary market Leparoux, Manager, International Sales and will tell you that counterfeiters will try and presence in perspective, when GPI delivered Marketing for GPI. introduce fake chips at the table, not at the its first consignment to Macau, it was the cage,” he stresses. year that The Beatles released their Sgt Constant development “At the moment in many cases operators GPI hasn’t rested on its laurels since are securing the cage but not the table. the ending of Dr Ho’s gaming monopoly. It Securing the cage is better than nothing— currently holds around 90% of the Macau you can check transactions. But the next step market for gaming chips and plaques— would be to have reader at the table so that many of them fitted with tiny silicon circuits one can regularly check the chips, or review that can send radio messages to computers operations if table staff or security have so that casinos can keep track of their chip concerns about a customer. You can make inventory. This radio frequency identification checks very quickly on a case-by-case basis (RFID) technology is also used to help using a small computer display available to prevent counterfeiting of medicines and the dealer. It’s about working toward full other high value goods. deployment of RFID technology.” In the context of the gaming industry, In security industry circles there’s a GPI says its current goal is to help the saying that technology is a great tool but market convert from security checks never a total substitute for the human eye done on chips at the casino cage, to a and human mind when it comes to stopping comprehensive audit system using RFID scams and fraud. So how secure is RFID? GPI chips from the Circus Casino, Liverpool, UK readers on gaming tables. “The [computer] chips [in RFID gambling

28 INSIDE ASIAN GAMING | August 2009 GPI

technology however, seeing is believing, operator profits. so GPI has been taking its demonstration “With poker for example it helps with the team out on the trade show circuit in the US, rake,” he explains. Europe and Asia. “We had it [RFID] on site [in various poker “For those [operators] who have made the rooms across Europe] from last year. The choice to move to RFID, for example, instead operators report they make 25% more hands of having only the RFID chip readers at the per hour when using RFID tables. Plus with cage, the demonstration team explains that poker the players are a special kind of crowd, you can have RFID equipment on your tables and there’s a lot of interaction between the to verify all your chips and make sure all your dealer and the players. An RFID-enabled chips are authentic,” says M. Leparoux. table gives the dealer more time to entertain “It’s about moving on technologically,” the player because the exact pot or the exact he adds. rake is being automatically calculated.” Applications There is also a market in Asia for hybrid tables that have an automated dealer but allow players to bet with real chips. “When you’re a passionate gambler you want to be able to feel the chip in your hand,” Christophe Leparoux explains M. Leparoux. chips] are encoded and encrypted, so you “The importance of the physical chip in would need to get access to the specific this Asian market doesn’t mean there isn’t a readers and protocols to be able to read the future for the multiplayer machines, but they information before you could go any further,” maybe cater for a different type of customer,” says M. Leparoux. he adds. “Of course in this area nothing is 100% When it comes to casino security there’s sure but it’s the next best thing. When we no point locking the front door and then supply RFID plaques to City of Dreams for leaving the back door wide open. This example, the coding is different to those is where GPI is able to offer a genuinely supplied to Altira [CoD’s sister property in comprehensive service, supplying electronic Macau]. So they use different databases,” detection gates (or ECS ‘Electronic Chips he adds. Surveillance) that can be installed at staff entrances as well as customer entrances. Roll out “It’s useful, for example, in preventing In Europe, GPI’s comprehensive RFID GPI chips from the Montecasino, South Africa the risk of staff pilferage,” says M. Leparoux. chip tracking system is already used in a “If somebody goes through the gate number of properties. Instant review with a chip in their pocket, it will trigger an “At G Casino in Manchester, in the UK, “You can have an RFID [table] tray as well alarm. It also picks up the ID number of the we have an almost fully integrated, RFID- that will do the inventory. That will allow you RFID chip, so you can also do some tracking enabled operation,” says M. Leparoux. at any single moment to know exactly what’s of the chip. This is a function available with “All their table inventory is checked with in your chip tray inventory. We can couple the low frequency RFID systems.” RFID. It’s not a 24-hour [casino] operation, but this at the table with a JCM bill validator.” In a perfect world, casinos would always when they open the tables in the afternoon, “We want to demonstrate that beyond choose the latest and greatest technology instead of doing the physical check of all the the RFID chip there are different kinds of for their floors, their systems and their chips in all the chip trays in all the tables, applications. You have the back office, back offices. The reality is that budgets are they just launch the RFID check and the the table, the cage—and everything is always finite, even during economic boom inventory is tallied automatically. They do available today. times. As a result, it’s up to suppliers such the same thing before they close the casino “Here in Macau, for example, City of as GPI to make a compelling economic and in the evening. They reckon they save at least Dreams is using our RFID products. Wynn operational case to operators before they half an hour per table every single day.” has been using our RFID; Altira as well, and will sign the cheques for new equipment. If a relatively low volume (in revenue StarWorld. We just did Newport [City] in “If there is one message about RFID it is terms) table market such as the UK can the Philippines, the new operation by Star that it’s not the technology of some distant benefit from table-to-cage coverage, then Cruises. Sentosa will most probably be future. It’s very much a fully deployed and the benefits to a high turnover markets using our RFID,” he adds. mature technology,” says M. Leparoux. such as East Asia are likely to be multiplied M. Leparoux says another key “We have sold 12 million RFID chips so in terms of staff time and revenue leakage advantage of tableside RFID technology is far. In some jurisdictions it’s already fully prevented. When it comes to applied that it can boost volumes of play and thus deployed. It’s the technology of today.” 29 Market Outlook

Losing some steam? Over 200 casino executives across the United States were interviewed regarding their impressions and plans for server-based gaming in their facilities. The results may surprise you

Figure 1: Issue MOST Likely to Delay Server-Based Gaming Development Server-based gaming is coming—but at what cost? Although more than half (52 percent) of the survey participants still believe that the widespread adoption of server-based gaming will occur within the next four years, compared to the last time we surveyed this group a much higher proportion (45 percent) feels that cost will further delay the onset or further development of server-based gaming at their facilities. See Figure 1.

Figure 2: Are Current Economic Conditions The economy is still Driving Changes in Investment and Uptake of Server-Based Technologies? hurting plans for SBG adoption We asked how much of an impact the current economy is having on casino industry investment and uptake of server-based gaming. Figure 2 shows the dramatic toll the economy is taking. Nearly half of survey participants indicated that the economy is having at least a “moderate impact” on their plans. However—note that 18 percent report no negative impact at all, and 25 percent report only a slight impact. Figure 3: Impact of the Economy on Server-Based Gaming Investment Impact of the economy on server-based gaming investment Finally, we asked those without any server-based gaming currently on their slot floors what specific impact the economy was having on their plans. Figure 3 highlights the ambiguous nature of server-based gaming plans with two- thirds of casinos indicating that they have delayed their server-based gaming plans without a specific timetable for the reconsideration of those plans.

Reprinted with permission from Casino Journal. For more information on this study, or other market research needs, please contact: John E. Thomas, Executive Director, Gaming Insights Group, Clear Seas Research at [email protected], 248.786.1659 or visit or visit www.clearseasresearch.com.

30 INSIDE ASIAN GAMING | August 2009 August 2009 | INSIDE ASIAN GAMING 31 32 INSIDE ASIAN GAMING | August 2009 ATRONIC

Big DEAL ATRONIC says its Asian slot offer is showing results

lot makers including ATRONIC have continuously outperforming other concepts head start thanks to licensing deals gained many insights from working in the market. From its Community Bonus with Endemol, the Dutch company that Sin the Asian market. Two are that Series™ to multi-level progressive, bonus makes some of the world’s most popular identifying truly global products or where links, tournament concepts and mystery television game shows, including DEAL necessary localising slot game content, jackpots, ATRONIC says is offering the OR NO DEAL. The programme’s television are complex processes. There are however broadest range of linked gaming concepts format has been licensed or adopted in considerable rewards to be had from in the industry. 70 countries and autonomous territories, executing these processes well. ATRONIC’s strategy in Asia has been including China, Hong Kong, Taiwan, ATRONIC is one of the current especially focused on linked gaming. The Singapore, The Philippines, South Korea, generation of manufacturers active in company has identified that jackpots and Vietnam and Japan. Macau and other East Asian markets that group entertainment is highly popular in With that kind of public awareness, are moving to new levels of sophistication very culturally diverse markets ranging it’s not surprising ATRONIC’s DEAL OR NO when it comes to understanding the ‘sweet from Macau to The Philippines. It has a DEAL™ – THE EXPERIENCE was one of the spot’ of a game for locals. It’s a long way on first games to be installed at Melco Crown from 2004 when some suppliers thought Entertainment’s City of Dreams resort on using colours considered lucky in Cotai, which opened on 1st June. Asia or adding Chinese language Many Mainland Chinese players characters onto an essentially will already be familiar with Western game would do the work the game format from several for them. television shows aired in China, Finding the sweet spot for including Lucky Cases (幸運 the Macau and other East Asia 箱) and Ai Chang Cai Hui Ying markets need not involve overt (愛唱才會贏), which translates Asian theming. If a game is good, as ‘You win if you love to sing’. it is often good across multiple In Hong Kong, the show is regions and multiple markets. What broadcast in Cantonese and it may need more than anything English under the original name is strong marketing support Deal or No Deal (一擲千金). In and proactive player education. Chinese this four-character phrase ATRONIC—100% owned by literally translates as ‘Stake a GTECH Corporation, one of thousand pieces of gold in one the world’s leading gaming throw’. ATRONIC says DEAL OR technology and services NO DEAL – THE EXPERIENCE is company—has put a great deal already proving to be a hit in of effort in to ensuring its new Macau. releases in Asia get that vital marketing support. Popular “We have found that Just link it! players at City of Dreams are ATRONIC has a long and very keen to try out the new highly successful history in DEAL OR NO DEAL – THE the development of linked EXPERIENCE machines,” gaming concepts. The says Nadine Levermann, company points out that its Senior Marketing Manager, multi-level progressives CASH ATRONIC International Group. FEVER™ and KING KONG CASH The game’s Lucky Case are being enjoyed by players Bonus function precisely all over the world and are ATRONIC’s DEAL OR NO DEAL™ - THE EXPERIENCE taps in to the local

33 ATRONIC

familiarity with the Lucky Cases television A new bonus feature allows players to the probability of hitting the DEAL OR NO show. Players in ATRONIC’s game have 20 choose between two cases containing ‘Major DEAL bonus. cases from which to choose. Progressively Win’ and ‘Minor Win’ or to select ‘Banker’s “I think the reason for the popularity players select cases to eliminate and, after Offer’. When playing max bet, the cases of DEAL OR NO DEAL – THE EXPERIENCE each round, are presented with offers from contain the major and minor progressive is, as we say in the title of the game, it’s an the bank. The player can take the offer— jackpot levels. DEAL OR NO DEAL – THE experience. There’s a high level of player ‘DEAL’, or reject the offer—‘NO DEAL’ and EXPERIENCE furthermore includes a new interaction and involvement, just as there is continue play. ‘Side Bet’ feature that drastically increases in the television show,” says Ms Levermann.

Big Game FISHING ATRONIC strikes gold with an essentially Asian theme

nother ATRONIC linked gaming concept introduced into and by the recipient as a blessing and as a wish for good luck. Athe Macau market in the final quarter of 2008 is FISHING The association of goldfish with good fortune is reinforced in FOR JACKPOTS™. The product—with its iconic animated lucky Chinese legend. One tells of a period of drought ending when the goldfish—has been diligently researched for the Greater China world’s first goldfish jumped out of a well. Other Chinese myths market using an existing game framework. have goldfish present at the beginning of time. The strategy in this case is tap in to local entertainment and cultural preferences without in any way looking or feeling like Cultural connection some kind of reverse engineering. We mention this at length because readers will understand by “FISHING FOR JACKPOTS is a five-level progressive jackpot now that it’s no accident that ATRONIC chose its goldfish theme concept that has been carefully themed for the Asian market,” says for FISHING FOR JACKPOTS. The act of fishing itself can be viewed Michael Kos, one of ATRONIC’s Product Marketing Managers. by Chinese people as auspicious, further reinforcing the feel good factor for the player. Running deep A memorable feature of the slot game is the way the game Anyone who has spent even a short amount of time in East graphics have been set up on the bonus play. Animated Asia quickly becomes aware that goldfish lucky goldfish swim ‘upstream’ from the are much more than a cheap, low bottom of the screen toward the top, maintenance version of a family pet in veering off to the right to navigate the way they tend to be in the West. their way up channels of differing In Asia, it’s not only the goldfish monetary value. The nearer the top themselves, with their ‘lucky’ of the screen the side channel, the colouring in terms of attracting greater the value of the bonus. wealth and prosperity, but the “We use goldfish as a symbol calming nature of the water in of good luck and surplus. All the which they swim that are widely on screen text is in Chinese to felt to have a positive effect on the explain to players how the jackpots human mind. work,” states Mr Kos. Some feng shui practitioners regard “We have five-level, predominantly even a painting of goldfish as having lower value jackpots but the the same soothing effect as an actual important thing is they can be hit goldfish tank. Chinese brush paintings frequently. It is fully configurable of goldfish perfectly capture the by the operator at all five levels,” lightness of the fins, the lines of the he adds. body, and the life force of the animal in “We have a suite of standard a few simple strokes. base games that contain all their In Mandarin Chinese, there are two functionality, and then we have two words that are spelt in English as ‘yú’. To additional bonus concepts which the untrained foreign ear they can play for the jackpot. We have a sound exactly the same, but one line trigger and also a mystery means ‘fish’ and the other means trigger. Once the player gets ‘bounty’ or ‘surplus’. Therefore into the bonus function they are goldfish became a symbol of guaranteed to win at least one surplus and wealth, and a gift of level of the jackpot,” explains goldfish is considered by the giver FISHING FOR JACKPOTS™ Mr Kos.

34 INSIDE ASIAN GAMING | August 2009 FISHING FOR JACKPOTS How the game works he game starts with a video reel Tsequence. The interactive FISHING FOR JACKPOTS™ Bonus can be triggered two ways, either by three goldfish symbols appearing only on reels one, two and three, or via the mystery trigger, which enters players into the Red Envelope Bonus. The envelopes represent the gifts of money commonly exchanged among people during Chinese New Year and known as ‘lai see’ in the local Cantonese dialect or ‘hong bao’ in Mandarin. If the Red Envelope Bonus is activated, the player selects one of four red envelopes appearing on screen to reveal either a credit win or entry to the FISHING FOR JACKPOTS Bonus. Any one of the five progressive jackpots can be won with any bet once the bonus round has been triggered. The probability of entering the bonus increases with higher bets encouraging players to raise their average bet. During the bonus the high quality TFT (thin-film transistor) screen displays the five jackpot levels: Minor, Major, Grand, Prime, and Royal. Each jackpot level has positions for three fish. The bottom TFT screen turns into a watery paradise with five goldfish suspended in pools. Players select one goldfish, which swims to the top TFT screen and into one of the free positions within a jackpot level. The player continues to select goldfish until one jackpot level has three goldfish— the winning jackpot level. Focus group The first Macau units of FISHING FOR JACKPOTS were installed in Macau in November 2008 in the SJM-licensed Golden Dragon casino. “We did a player focus group prior to releasing the product in the market and FISHING FOR JACKPOTS™ was on exhibit at the recent G2E Asia show in Macau we got a very good response—hence the fish. That’s a symbol that Chinese people says the company. Equally importantly for basis: Wild Fangs™; Golden Light™, Bengal understand and relate to. It’s about luck. operators with busy slot floors, is that that Tigers™ and Treasure Hunt™. The operators are more than happy with it ATRONIC offers a varied library of game A variety of signage options have in terms of the performance,” says Nadine titles to ensure maximum player appeal and been designed to suit all types of gaming Levermann. performance on the floor. operations and budgets. The strong visual FISHING FOR JACKPOTS takes advantage FISHING FOR JACKPOTS has been impact of a fully themed FISHING FOR of the high quality playing experience of launched with the following games with JACKPOTS bank will attract players across ATRONIC’s e²™ dual screen technology, additional titles to be released on a regular the gaming floor, says ATRONIC.

August 2009 | INSIDE ASIAN GAMING 35 Cadillac Jack

Courting Asia Cadillac Jack seeks to build on its success at home

adillac Jack, a leading supplier of gaming equipment to the have the opportunity to be successful United States and Mexico markets, has ambitious plans to in any market,” he adds. Cextend its reach into Asia. “Understanding what matters to The company recently showcased a selection of its popular slot our clients is the driving force behind products at G2E Asia 2009 in Macau in collaboration with Silver everything we do. By recognising Heritage Ltd, the Hong Kong based operator of Asian electronic their priorities and challenges, we can develop and deliver the right gaming rooms. Cadillac Jack’s In the Americas Cadillac Jack is particularly strong in the supply solutions to ensure the continued So Hot™ is very popular of equipment to the Native American casino market, as well as to the success of their business.” among players growing Mexico gaming market. Both of these markets are strongly In Asia, those priorities and value and price driven—from both the operators’ and the players’ challenges include budgetary limitations, both from the operators’ perspective. and players’ perspective and also often regulatory caps on maximum Cadillac Jack believes its experience in these value-focused betting and on size of jackpot. markets will give it a good opportunity to sell into the equally value- focused emerging gaming markets in Asia. Strength and Experience Cadillac Jack is well positioned to tap in to this demand. Although Upward and onward its core market, the United States, is a single country with a central “We strive to develop content and technologies specific to the government, casino gaming there is regulated on a state-by-state needs of each of the markets that we serve, whether it is Native and tribe-by-tribe basis. This means that Cadillac Jack is constantly American Class II or Class III slots, traditional Latin-style Bingo for rising to the challenge of fine-tuning its product offer for scores of the Mexico market, or specific themes and features suitable to individual markets and scores of different regulators. It’s achieved the various markets in Asia,” says Mauro Franic, Cadillac Jack’s Vice this by extending the range of its products and by making those President, Product Management & Marketing. ranges as flexible in terms of functionality as possible. “When you serve the needs of the customer effectively, then you “Our focus has always been to develop compelling, feature rich

A Sure Bet

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36 INSIDE ASIAN GAMING | August 2009 products that create exciting gaming experiences for players while increasing profitability on the game floor,” explains Mr. Franic. “To realize this goal, we constantly evolve and improve our technology, which has allowed us to increase game performance and incorporate a variety of entertaining bonus features that attract players and provide a strong value proposition for our partners.” “We believe this principle can be applied successfully in Asian markets,” noted Mr. Franic.

Tiger Magic™ was showcased during the G2E Asia in Macau Flexibility This provides flexibility in dealing with the regulatory requirements of its different markets. This flexibility could greatly assist the company in its entry into Asia. In Macau, for example, the demand is for Class III machines with on-board random number generators. In some other Asian markets, Class II machines operated on a community gaming or bingo-based system, where players compete against each other rather than the house, predominate. Cadillac Jack will have the ability to work within many of the Asian markets since its slot products are available in either Class II or Class III formats. The products that will initially be introduced in Asia include the company’s popular 20 Line video reel games and its new series of 50 Line games. So Very Hot! Cadillac Jack’s top performing and most popular game, So Hot™, features multiple free game bonus events where all wins are doubled. This sizzling game has proven to be a crowd pleaser and the company has chosen to develop many of its new 20 Line games around the So Hot model. So Hot was introduced to Asia along with Double the Devil™, Gecko’s Gone Wild™, Sakura Sun™ and Star of Phoenix™ during the recent show, and will soon be placed into casinos in Laos and elsewhere. 50 Line Cadillac Jack’s 50 Line series is specially suited to markets where players enjoy machines set up for short bursts of max play, with frequent opportunities to hit the top awards. Those opportunities come during the free spin bonus, when three of the lower paying symbols morph into the highest paying symbols. What also makes the games extremely playable are the multiple vertical wilds which increase the reward amount and the game’s volatility. A sample of the new themes in the company’s 50 Line series were displayed at G2E Asia, including Asian-themed titles Tiger Magic™ and Wild Ninja™. 37 38 INSIDE ASIAN GAMING | August 2009 Feature

Noteworthy Promotions Raving Consulting’s Dennis Conrad offers his ranking of the best (and worst) US casino promotions of 2009

ll admit it, I’ve lost count. This is either winners in “The Best” category should feel And, oh yeah, much of the “crappy” info the 12th or 13th (or maybe the 14th) proud to receive my praise, but they might comes from a small but reliable cadre of I’edition of my annual labor of love, the not. The Hall of Shame (“Worst”) winners snitches (er, sources) who get some strange “Best (and Worst) Casino Promotions” of the will probably hate me (even though I don’t high by sharing with me examples of the year. Others probably call it something like mention them by name), but I am hopeful supreme failures and excesses of the casino “Conrad Gone Wild” or “How to Win an Award that they achieved some excellent learning marketing wars. You’re Not Sure You Want”. from their stumbles. And once again I have attempted to I didn’t mean for this to develop into My selections are based on an not only highlight the big ideas but also an annual affair, but it has. Below is a list of unparalleled network of direct-mail the little things that made a big difference the most noteworthy honorees (well, OK, samples, numerous personal visits as both for casino customers, employees and some are “dis-honorees”). To recap, there is a consultant and player, a wide variety of communities. no award process for the “Best (and Worst) news and information sources and from the So here they are, for your learning and Casino Promotions of 2009”. Heck, there are advertising, PR, collateral materials and Web entertainment pleasure, “The Best (And no awards. There is one judge—me. The sites of the casinos themselves. Worst) Casino Promotions of 2009”!

The Best opening PR bonanza had already happened. THE TRAVELING $5 MILLION Economic stimulus package indeed! Seminole Casinos (Florida) It was called “See $5 Million/Win $1 Million”. Seminole Casinos built a display YES, THEY COULD case that securely held $5 million (in $100 Indiana Live! Casino (Shelbyville, Ind.) bills) and rotated it through five of their So who better to help open your new tribal casinos over two months. Throw in casino than Barack Obama? Well, OK, there some pretty models and some real burly are certainly some issues in making that security guards to go with the exhibit, happen. But when Indiana Live! Casino free pictures of guests in front of the $5 opened its new facility with an Obama look- million (downloadable from the Web site) alike (and sound-alike) impersonator in its and a free daily “swipe to win” for up to TV and print ads and on its billboards no one a million bucks (and where every kiosk thought “No, you can’t!” So what if the White swipe won something)—and you’ve got a House soon called and asked the casino to traffic-driving mega-promotion with legs. pull the plug on the campaign? The pre- Somewhere, Benny Binion (originator of 39 Feature

the original $1 million display) is smiling. Well, maybe gambling in your casino with perhaps Gold Dust’s hot machines). Personal, your Boomer Buddies. strategic, and it takes only a card and stamp, without reaching any deeper into a casino’s marketing war chest.

“WE’RE SORRY” Southwest Airlines

Keeping with the “Best (and Worst)” MAKING A STATEMENT tradition of honoring efforts from outside Barona Resort & Casino (Lakeside, Calif.) the gaming industry (whose ideas Banks give account statements. should be immediately stolen for casino Brokerage firms give account statements. PROMOTIONS YEARBOOK application) I bring you the apology So do hospitals. But casinos? Well, if you Casinos Austria International letter from Southwest Airlines. Written to are the ultra-innovative Barona you do. If your company passengers on a flight to Tulsa, Okla., who Barona’s was sent out to each Club Barona had casinos all over had to suffer the “bizarre behavior” of an member in its year-end “Rewarding the world and on unruly fellow traveler, the note from the Moments” newsletter. The statement numerous cruise ships assistant manager of Proactive Service listed the yearlong value of each player’s I’m betting they all did Communications (tell me you have a cash offers, hotel offers, food offers promotions, creating a position like that!) contained one Southwest and complimentaries received; plus it virtual tapestry of local LUV (flight) voucher, an acknowledgement mentioned the $3,055,323 (who keeps marketing for diverse markets. And if you of the “hassle” and “inconvenience,” a count of this stuff?) in cash and prize were Hermann Pamminger, Casinos Austria wish for “better flight memories” and giveaways for the year that each member International’s corporate head of marketing, an expression of appreciation for their had a shot to win. Why have a players club you’d see the wisdom of sharing the best of Southwest patronage. … Hey, Southwest card? This makes a statement. the best in a “Promotions Yearbook”. Made gets it, and you should too. up of essential details from promotions conducted at 37 casinos in 13 countries and “FREAKS” on 10 cruise ships, the “Promotions Yearbook” O’Sheas Casino (Las Vegas Strip) speaks to the principle that promotional If your casino wisdom should be shared, celebrated and is small and quirky “floated” through the company. and you’re nestled between the big YOU’VE GOT POINTS guys on the Las Vegas Gold Dust West (Reno, Nev.) Strip you just might Sometimes the best is just so simple. For have to get a little Gold Dust West in Reno this recognition- freaky. And that’s worthy effort came in the form of a personal exactly what O’Sheas BABY BOOMERS FESTIVAL note card, personally written and signed did by becoming the Silver Legacy Resort Casino (Reno, Nev.) by a living, breathing home of the carny We’re not seniors anymore, we’re Baby Gold Dust West front- show “Freaks” from Boomers! And we have disposable income, line employee named the demented mind of X-rated hypnotist and we will spend it at casinos. Especially Pamela. The reason and showman Anthony Cools. In one act if, as Silver Legacy did, you host a Baby for this note? To let me of “Freaks” a guy loses an eye and later lifts Boomers Festival. … Say what? Sure, all you know that I had $15 in weights with the weights attached to his need is a Baby Boomer Wine Walk, a “speed- cash compiled on my eye sockets. A woman drinks a glass of wine dating” event, an astrological matchmaking Gold Rewards Card and then eats the glass. There is a huge drag party, a flirting competition and a couple just waiting for me to queen manipulating a grotesque dummy. of speakers talking about finance, sexuality pick up and put in my Not your cup of tea? Maybe not, but its and health. What else could a Boomer want? hot little hands (and award-winning originality might just draw a

40 INSIDE ASIAN GAMING | August 2009 41 Feature

few bodies or create a retail opportunity.— promotion and do what Station Casinos “Freaks” sells branded vomit bags at its did—give away turkeys and pumpkin pies. souvenir stand. Last year at all Station Casinos (that should tell you this is a home run), on one pre- HUGGING MONKEYS Thanksgiving day, players club members Santa Ana Star Casino (Bernalillo, N.M.) could “Earn 1,000 Points and Get a Turkey” Moving from the creepy to the warm and fuzzy, I bring you the “Hugging Monkeys” from Santa Ana Star Casino. Held as a Valentine’s Day promo, these arm-in-arm cute critters from just down the evolutionary scale could both be yours for a mere 500 with wine, champagne and music. Over two days there were 10 one-hour “lifts,” including the first-ever wedding in the sky. … Now that’s a real high!

SOLD OUT, EXCEPT FOR YOU Hard Rock Hotel & Casino (Las Vegas) (plus keep your points) and on another day It came as a VIP e-mail invitation—two there was a “Free Pumpkin Pie Giveaway, free nights and a chance to see either Bon Just for Showing Your Boarding Pass Card”. Jovi or Kenny Chesney in concert at The … Gee, turkey and pumpkin pie to draw Joint. But wait, the shows are “Sold Out,” customers before Thanksgiving, who woulda the e-mail said. But you, mister very special thunk it? player, “As a VIP can see your choice of one show as our guest.” I know, I know, if they DINNER IN THE SKY still could offer you a ticket, technically they Seminole Casino Coconut Creek weren’t “sold out”. But what a (Coconut Creek, Fla.) great buzz creator for two points (while supplies last, of course). More And speaking of food, there’s the hot shows and a lesson proof that warm and fuzzy can translate into “Dinner in the Sky” promotion conducted in perceived value cold, hard cash. by Seminole Casino Coconut Creek. Imagine and exclusivity a huge crane taking 22 guests at a time 160 for the Hard TURKEY AND PUMPKIN PIE feet into the air to be served a five-course Rock’s best Station Casinos (Las Vegas) gourmet meal (from the “200 Leagues c a s i n o Ditch the fancy Thanksgiving weekend Above the Florida Sea” menu) complete rockers.

The Worst TWO BUFFETS OR $42.9 MILLION? A North American casino It happens all the time. A slot player mistakenly thinks they have won a jackpot. Unfortunately, there would be no But this time at this unnamed casino the “Best (and Worst)” without some real lights went on, the sounds went off, and lollapaloozas. And this year produced a treasure trove of promotions featuring bad taste, poor judgment, classic screw-ups and common-sense vanishing acts. … The crusty envelope, please! evidently at this video poker bar, is to offer a GUNS AND ROYALS pistol (yes, that kind of pistol) as the bonus. A video poker bar “Hit Two Royals in 30 Days, Win a Pistol!” (Western United States) screamed the outdoor advertising banner— Sure, it’s common to have bonus complete with a drawing of not one but two promotions for hitting royal flushes on video revolvers. Someone ought to be shot (no, poker machines. What’s uncommon, except not LITERALLY).

42 INSIDE ASIAN GAMING | August 2009 Feature

an attendant rushed over to congratulate wait, there’s more. The exact same direct- Casino marketers all should know by now the winner, who believed he had won $42.9 mail piece came the very next day with the that using the word “Christmas” in casino million, the machine’s top jackpot. But a same crappy offer, and that’s when I noticed holiday promotions and direct mail is not few minutes later a supervisor rushed over the offer (or was it two offers?) was only kosher as it might offend non-Christians (or to report it was all a mistake because the good on “Monday through Thrusday” (sic). even Christians). But no one obviously told machine had malfunctioned. So how do you Hey, cheap offer, duplicate mailing, spelling this otherwise smart casino that you might make it up to the customer? Why of course mistake—winner, winner! not want to get cutesy with your holiday with the crack cocaine of casino conflict copy writing. So there it was (in integrated resolution—a free buffet for two. But don’t fashion, no less) the casino’s use of words worry, the comp was later upgraded to a and phrases like “Merry Giftmas, the Gifts buffet for four when the player complained. Yule Love” and “O’Cashmas Tree”. … Casinos … Customer relations jackpot! getting cute with Christmas? Throw ’em to the lions! SORRY, WRONG NUMBER A Midwest U.S. casino CASINO STIMULUS PACKAGE A Western U.S. casino You just knew that one casino was going to win a “Worst” award for bringing up the recession. Yep, there it was, in a headline- LOTTERIES WITH NO WINNERS blazing brochure invitation: “$50,000 An estimated half of U.S. state lotteries Stimulus Package! We’ve got relief for you! Leave it to our gaming cousins in the Exclusive by invitation only.” Complete with lottery business to continue to turn gamblers a cartoon character Uncle Sam, smiling and into groaners. It started as an exposé in USA waving handfuls of greenbacks. Just what Today, informing readers that it wouldn’t your recession-weary customers want to be too wise to buy a $20 scratch-off ticket see—“relief” from your favorite casino if in one state lottery’s $1 million “Explosion” you’ll take their exclusive invitation to come game because the million-dollar top prize in and first blow your money. … Award- had already been won. And the state was worthy. No doubt. still selling tickets even though the top prize So what would you do if your casino left available was a mere $10,000. The USA misprinted your toll-free number and it rang Today article went on to say that “about into another business at all hours of the day half of the 42 states with lotteries keep with people asking about upcoming casino selling tickets after the top prize is no longer concerts? Well, if you are this winner of the available.” Hey, lottery guys, you’re screwing Casino Golden Raspberry you’d sue the it up for everyone. business for whom you created all the hassle with YOUR mistake. OK, OK, it’s alleged that HOLIDAY HOKUM the business owner who got all those calls, A Southern U.S. casino after much frustration and not adequate problem resolution, may have started answering the phone with some not so nice words about the casino (including that it “had burned down”). But suing a guy when you made the initial mistake, that’s a poopy PR award winner.

DOUBLE OFFER WITH TYPO A Western U.S. casino It came as a direct-mail piece screaming a benefit—“Your Free Reprinted with permission from Casino Play is Enclosed”. Inside it spoke Journal to wanting me to come visit every Dennis Conrad is the president and chief week in November to “get more strategist of Raving Consulting Company, a FREE PLAY” than I’ve ever full service marketing company specializing received before. (Really, you’d in assisting gaming organizations. He can be say that about a chintzy offer reached at (775) 329-7864. Visit Raving’s Web of five bucks per week?) But site at www.ravingconsulting.com.

August 2009 | INSIDE ASIAN GAMING 43 Briefs

share,” said Lawrence Ho, Co-Chairman and Chief Executive Officer of Regional Briefs MPEL, commenting on the results. Following Suit The Asian Poker Tour (APT) has renewed its invitation to Olympic MPEL loss as operation ramps up champion swimmer Michael Phelps to join the Macau leg of the circuit at the Galaxy StarWorld Hotel and Casino in Macau on 12th August. The APT made headlines in 2008 when it issued an open letter asking the Beijing 2008 sensation to call in to the inaugural tournament on the way home from the Olympics. Mr Phelps is known not only for his phenomenal speed in the pool—earning him the nickname ‘The Dolphin’—but also for his passion for poker. Whether he likes to use Dolphin gaming chips when playing isn’t known to Inside Asian Gaming. “Forget the controversy about suit changes in your sport, concentrate on these suits: spades, clubs, diamonds and hearts!” says this year’s invitation. “Forget your rivalry with Milorand Cavic, how about a heads-up game with the legendary Johnny Chan or modern day poker icon JC Tran? We know you couldn’t make the meeting with the Pope but how about a meeting of poker minds in Macau?” The Asian Poker Tour Macau Festival runs from August 12th to 23rd at StarWorld. Last year’s event lasted six days but this year’s will be spread across 12 days. The Macau tournament will also feature in a Chinese language film about poker provisionally titled ‘Poker King’. The Asian Poker Tour Macau hosts over 20 events with 15 official side events—the first four taking place between the 12th to A crowd gathers at the COD for a special promotion 16th August featuring guaranteed prize pools. Day 1A of the Main Melco Crown Entertainment Limited (Nasdaq: MPEL), a developer Event kicks off on the 20th August. Amongst the online networks and owner of casino gaming and entertainment resort facilities sending players are: The Ongame Network; the iPoker Network and focused on the Macau market, has announced its unaudited financial PartyPoker.com. In addition, online rooms BWin, PKR, Dafa Poker, results for the second quarter ending 30th June 2009. JBET Poker, Betfriends, 888.com, Titan Poker, RedKings, 32Red, For the second quarter of 2009, net revenue was US$215.8 million, down from US$384.6 million for the comparable period ending 30th June 2008. The company said the relative decrease in net revenue was the result of high rolling chip volume at Altira Macau in the second quarter of 2008, set against low rolling chip hold percentages at Altira Macau and City of Dreams in the second quarter of 2009. Adjusted EBITDA (earnings before interest, taxation, depreciation and amortisation) was a loss of US$23.8 million for the second quarter of 2009, as compared to a gain of US$36.4 million in the second quarter of 2008. The EBITDA loss in the second quarter of 2009 was largely attributed by the company to lower than expected rolling chip hold percentages achieved at City of Dreams and Altira Macau. Adjusted net loss for the second quarter of 2009 was US$78.5 million, or US$0.17 per ADS (American Depository Share), compared to an adjusted net loss of US$1.7 million in the second quarter of 2008, or US$0.004 per ADS. MPEL said the increase in adjusted net loss was driven primarily by the aforementioned factors, as well as incremental depreciation and amortisation expenses associated with the opening of City of Dreams, combined with an increase in non-capitalised loan interest expense in the relevant quarter. “We are still in the early stages of ramping up our business and believe that we have additional room for growth as we execute on our various marketing and yield management initiatives. The Grand Hyatt Macau is on track to open by the end of the current quarter, which should be a significant driver of gaming revenue and market Michael Phelps

44 INSIDE ASIAN GAMING | August 2009 Briefs

ChiliPoker, Winamax, BetSafe, PafPoker and PokerLoco will also the last few years. provide online qualifiers. “Australia is the Sponsors of the side events and collaterals include the Hong largest gaming market Kong Game Club, an organisation that hosts ‘free play’ poker in Asia Pacific, so it’s an tournaments in private clubs all around Hong Kong. Other sponsors entry that we will get are: DafaPoker; Dafa888; The Poker King Movie; JBet, PartyPoker. right,” she adds. com; BWin, Zipang Casino; 777babycasino and PKR. “We look at Australia [as a market] the way an Australian company would look at Chinese currency goes international Nevada. Entering [the] Nevada [market] isn’t something you would do at a week’s notice. You would be foolish to do so. “Australia is a mature gaming market with 200,000 machines. So when you go into Australia you are setting up a full scale operation to meet the market needs. You’re designing product, you’re implementing specific protocols. It’s something you want to get right the first time,” she explains. Bally, which will announce its results for the second quarter of 2009 to 30th June shortly, says the company is well placed to serve Australian customers—in part because there are already a lot of ethnic Asian slot players in Australia. “The experience we’ve had in the region serves us well to go into a market such as Australia,” explains Ms Burns. “There are some parallels between the player here [in East Asia] and the player in Australia.” Korea move Jin Air, a South Korean domestic carrier, is to start direct flights between Korea and Macau four times a week from 29th October. Jin Air currently operates only domestic flights between Seoul There was a momentous day recently for China’s currency, the and Jeju, and Busan and Jeju. yuan, when the first cross-border yuan trade settlement deal was “For Macau, no Korean carrier is operating there currently, so completed. we’ll open the route to the city that is emerging as a family resort It’s still a long way from that to seeing settlement in yuan being destination,” Kim Jae-kun, president and CEO of Jin Air, said in a press available for online business or for VIP casino gamblers to be able briefing in Seoul, according to a report in Korea Times. to take large amounts of yuan legally across the land border with The airfares of the international flights will be about 70 to 80 Macau for settlement of their gambling tabs. percent of those offered by full service carriers, Mr Kim said. Nonetheless, the deal is symbolic of China’s very gradual movement toward being plugged into the international financial system. China’s State Council announced in April a pilot programme to allow exporters and importers in Shanghai, and those in southern Guangdong in Shenzhen, Zhuhai and Dongguan—cities next door to Macau and Hong Kong—to settle cross-border trade deals in yuan. There may be potential for the new cross border settlement system to be abused. Someone could for example set up a shell company in Macau ostensibly for cross-border trade in products or services with Guangdong companies but in reality use it to funnel large amounts of yuan to feed high rollers’ casino playing habits. Looking up Down Under for Bally Bally Technologies says it will draw on its experience of serving slot customers in Asia in formulating its strategy for a re-entry into the Australia slot market. “That’s probably the single most important plan for us [in the Asia Pacific region] to execute over the next 12 to 18 months,” Cath Burns, Vice President & Managing Director, Asia Pacific, tells Inside Asian Gaming. Miss Burns has developed an enviable reputation for delivering success after steadily helping Bally build its Macau market share over Macau International Airport

August 2009 | INSIDE ASIAN GAMING 45 Briefs

International Briefs

Pacific Win

Bally’s new Las Vegas campus According to Bally’s Chief Operating Officer Gavin Isaacs, the company has added 36,000 sq. ft. of space in Las Vegas, relocating 175 game development, advanced development, and project management employees to the former Carter Burgess building at 6655 Bermuda Road.

Novo TouchBet® Terminals Holland Casino Installs SlotTimer from Gaming Support Nether lands-based TCSJOHNHUXLEY CANADA says it has won an order from the Gaming Support has won British Columbia Lottery Corporation (BCLC) for the first Novo an order from Holland TouchBet® Live-Baccarat System to be installed in North America. The Casino for purchase and 12-terminal system will be set up at the end of August at the River installation of SlotTimer. Rock Casino in Richmond, British Columbia. Under the terms of the Additionally, a substantial order has been placed by BCLC for agreement, Holland Casino Novo Unity TouchBet® Live-Roulette consisting of 72 terminals. They will utilise SlotTimer across will replace the original NT System that was installed several years all 14 of its domestic casino ago at all of the lower mainland casinos. venues in The Netherlands. The company says Novo TouchBet® Live-Baccarat and Live- SlotTimer is a system Holland Casino Roulette offer all the excitement of live games with the added benefits for reducing the amount of electronic betting. The system also has the ability to support up to of energy required by slot machines outside peak use times. With 250 individual player stations simultaneously. TCSJOHNHUXLEY says SlotTimer, operators can ‘power-down’ gaming machines safely and it is the ideal solution for any operator who wants to offer live-table effortlessly, allowing major savings in operational costs. The system roulette and baccarat games to a wider audience while maintaining allows for multi-phase power regulation and the ability to separate maximum flexibility for the casino floor. power leads to machines and slot systems. The company says as a “Novo TouchBet® products have proven to outperform any other result there’s no need to worry about blown monitors or auditing hybrid gaming product in the market and the entire Canadian based blind spots. team did an outstanding job securing these orders,” says Jillian Rennie, Gaming Support describes the system as “designed by slot Business Development Manger for TCSJOHNHUXLEY Canada. managers for slot managers”, promising that every operational angle is covered. “In this period of challenging economic conditions, it’s more Sweet Home Nevada important than ever to devise and implement no-nonsense cost- Bally Technologies, Inc., a leader in slots, video machines, and cutting strategies,” states Robin Middendorp, Holland Casino’s casino-management systems for the global gaming industry, has manager Operations Support. announced that it has leased approximately 77,000 sq. ft. of additional “For us, the procurement and implementation of SlotTimer was office space in Las Vegas and Reno, Nevada., creating new corporate an obvious winner. It’s fast, simple, secure and produces savings campuses to accommodate company growth. which are nothing short of astonishing,” continued Mr Middendorp. “The acquisition of these two leased facilities demonstrates the “Further, as a product which will alleviate excess power consumption strength of our business despite these challenging times,” said Chief across our network of 7,200 gaming machines, SlotTimer reinforces Executive Officer Richard M. Haddrill. “These leases will allow us to Holland Casino’s commitment to responsible corporate citizenry achieve greater teamwork and work efficiencies for our engineering through the support of green commerce initiatives.” teams, and accommodate further growth.” “Since launching SlotTimer commercially in the second

46 INSIDE ASIAN GAMING | August 2009 Briefs

quarter of this year, we’ve experienced rates of adoption which delivering excellent customer service. have exceeded considerably our initial expectations,” stated Nick “I feel honoured by this assignment and the invitation to become Hogan, Gaming Support’s Vice President of Sales and Business part of the international Novomatic Group team,” says Mr Bonorino, Development. “Whether we’re dealing with a sophisticated, “I am convinced that I will be able to contribute to the group’s enterprise-class gaming organization such as Holland Casino or a successful expansion in the South American market by establishing 60-unit, stand-alone arcade, SlotTimer’s benefits are immediate, a strong and effective local representation. AGI Argentina will offer highly significant, easily quantifiable and grounded in basic physical excellent sales and after-sales service as well as technical support for realities,” continued Hogan. our regional customers and partners.” “We’re exceedingly pleased with Holland Casino’s decision “Our new subsidiary AGI Argentina was founded to satisfy the to implement SlotTimer company-wide and we look forward to constantly growing demand for our products and services in the subsequent deployments throughout the global gaming industry.” Argentine market and to guarantee the best possible support for our local customers and partners,” says Jens Halle, Managing Director AGI. Regulatory Summit in Taipei “We are pleased to have retained such an experienced and well- Beacon Events has announced the Asian Gaming Regulation and established team of industry veterans who are determined to make Investment Summit will take place in Taipei, Taiwan, in October. this company a success. I wish Laureano Bonorino and his colleagues The company says it is the region’s only dedicated regulatory all the best for the new challenge and assure them of the full support conference for gambling. AGR will cover current legislation and of the Novomatic Group of Companies.” future directions for gambling regulation in key Asian jurisdictions, including regulation for casinos, integrated resorts, lotteries, betting iGaming Congress and Expo in Europe and tournaments. It will also deal with legal issues surrounding The 8th Annual European the business of gambling, such as payments and fund transfers, iGaming Congress and Expo (EiG) anti-money laundering, advertising and marketing regulations and takes place at the Bella Center in socially responsible gaming. Copenhagen from 15th to 17th September. The organiser Clarion Gaming says one of the biggest changes to EiG this year is that the expo hall is adjacent to the conference rooms as opposed to being on separate floors, allowing a greater flow of traffic through the hall and for all coffee and networking events to be held with the exhibitors. Other new features include a more prominent networking bar Laureano Bonorino hosted by Microgaming Systems, which will prove the central meeting hub for everyone; and topical roundtable sessions in the expo hall hosted by key industry experts for all attendees. Attendees will see the widest range of suppliers ever, offering the latest products and solutions, including white label and turnkey Taipei from above solutions, casino, poker, bingo, sports betting, branded content, jurisdictions, licensing, hosting, payment solutions, fraud prevention Novomatic Brand Building in Argentina and live dealer solutions. Austrian Gaming Industries has launched a wholly owned In addition to this, the World Poker Congress 2009 will be subsidiary in Argentina to build its sales in South America. co-located with EiG this year, for the first time on Thursday, 17th Laureano Bonorino, aged 38, has been named as Head of Sales September. Clarion says it is the only conference to examine and with the new company, AGI Argentina s.r.l., which is based in the generate partnerships between live and online poker businesses. Argentinian capital Buenos Aires. This partnership will further increase the large number of industry AGI is currently expanding its network of Novomatic sales and experts, speakers and affiliates that will be in Copenhagen, benefiting service centres across the South American continent. the audiences of both events. Mr Bonorino has wide experience in the international gaming “The strong growth of EiG’s exhibition shows us a few things; industry with companies including Unidesa Gaming and WMS. He the resilience and growth of the iGaming industry is not to be will be responsible for building sales within the country from existing underestimated, EiG is heading to even bigger and better things as an customers; building the customer base and further strengthening the unmissable calendar event, and all attendees will get more product Novomatic brand as a strong trade name in the local casino industry. insights, networking and fun for their money than ever before!”, says He will be supported by a team of local technicians dedicated to Mark Walker, Global Head of Conferences.

August 2009 | INSIDE ASIAN GAMING 47 Events Calendar

Events Calendar A more comprehensive events listing is available on our website, www.asgam.com.

16 - 18, August 2009 6 - 8, October 2009 Australasian Gaming Expo Asian Gaming Regulatory and Sydney Convention & Exhibition Centre, Sydney Investment Summit Contact: Ross Ferrar Taipei Email: [email protected] Email: [email protected] Website: www.austgamingexpo.com Website: http://www.beaconevents.com/ Organizer: Gaming Technologies Association asianGamblingBriefing/en/home.html Organizer: Clarion Gaming & Beacon Events 19 - 20, August 2009 Gaming Asia Expo 4 - 12, November 2009 Singapore Executive Development Program Contact: Lina Loo Lake Tehoe, Nevada USA Email: [email protected] Contact: Andrea Turman or Sarah Purdy Website: www.gamingasiaexpo.com Tel: (775) 784-4046, 1-800-233-8928 Organizer: Redstone Group Email: [email protected] or [email protected] Website: http://www.gaming.unr.edu/edp/ September 2009 Asian Casinos Executive Summit 17 - 19, November 2009 Grand Hyatt, Singapore Global Gaming Expo (G2E) Organizer: Terrapinn Las Vegas Convention Center Contact: Robin Abramson Tel: +1-800-363-3631 15 - 17, September 2009 Email: [email protected] EIG European i-Gaming Congress & Expo Website: www.globalgamingexpo.com Copenhagen, Denmark Organizer: Reed Exhibitions Contact: Joya Schneider Tel: + 1 (636) 946-0820 Fax: + 1 (636) 946-0566 1 - 3, December 2009 Email: [email protected] Asian Casinos Executive Summit Website: http://www.worldpokercongress.com/2009/ Grand Hyatt, Singapore Organizer: Clarion Gaming Contact: Pauline Oh Tel: (+65) 6322 2762 Fax: (+65) 6226 3264 Email: [email protected] Website: www.terrapinn.com/2009/gesa/ Organizer: Terrapinn

denotes events where Inside Asian Gaming will be available. To list your event here and on our website, email [email protected].

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