inside asian gaming

INSIGHTS Sands ’s Messinger on Entertainment’s Value may 2015 30 MOP G2E ASIA 2015 A Showcase of Solutions for These Trying Times

FEATURE SEGA SAMMY CREATION Draws a New Crowd Cambodia’s Rising Stars From glitzy NagaWorld to the gritty frontier

www.asgam.com

COVER STORY Contents MAY 2015 Cover Photo Konstik | Dreamstime.com

INSIGHTS 42 The Best is Yet to Come As Sands China’s Scott Messinger explains, the company’s entertainment strategy is based on staging events that generate standalone value.

FEATURES Putting Cambodia 38 Drawing a New Crowd on the Map the attention-grabbing products of SEGA SAMMY 12 CREATION could lure a new breed of players onto floors. Among dozens of casinos in Cambodia, NagaWorld in Phnom Penh—celebrating 52 Point of Contact its 20th anniversary this month—has Innovative Technology’s cash handling products already enjoy a leading position in European markets. done the most to raise the kingdom’s the company now has its sights set firmly on expansion regional profile. in Asia.

58 Fallen Out of Favor sri Lanka’s casinos are operating in a decidedly hostile environment under the new administration of President Mithripala Sirisena.

GAMBLING AND THE LAW 54 Internet ? No Problems Prof. I Nelson Rose examines the regulatory challenges faced by the US online gaming industry.

BRIEFS Regional Briefs 24 Rough Around the Edges 90 Ready or not, Donaco International’s purchase of Star Vegas Casino in 92 International Briefs Poipet puts Cambodia’s border casinos in the spotlight. 94 Events Calendar Contents G2E ASIA 2015

Showcase of Solutions Best Acceptance 60 Adversity presents a very real 77 CPI’s comprehensive portfolio of opportunity for the companies automated payment systems. exhibiting their wares at this year’s show. Stellar Standalones 78 Ainsworth has a strong lineup of Pursuit of Perfection new premium bilingual titles. 62 GPI makes casino currency safer, stronger and better looking. Branching Out 79 In addition to testing and certification, Home-Field Advantage GLI does so much more. W63 eike shows off an engaging lineup of new jackpots and Enhanced Portfolio standalones. 80 JCM promises operators deeper connections with their customers. 66 Asserting Dominance Aristocrat reaffirms its position as Currency Revaluation Asia’s pre-eminent slot-maker. 81 Abbiati showcases new designs for its secure casino currency. 68 Igniting Expansion NOVOMATIC’s new products fuel its Fortune’s Favored accelerating regional growth. 82 Konami launches an array of new games designed for Asia. 69 Stronger Together Scientific Games’ portfolio is Quality Matters unmatched for its breadth and 84 Giesecke & Devrient’s cash sophistication. processing systems reign supreme.

Off to the Races Strength in Unity 72 Alfastreet pushes the envelope 86 IGT’s expansive exhibit is developed with its eye-catching e-tables. specifically for Asian players.

Gaining Ground Ramping Up 74 DLV ’s new cabinet and multigame 88 Aruze’s new games provide fresh package have clear regional appeal. impetus for its regional growth.

Floor Filler Putting on the Ritz 75 lT Game ’s products will be prominent 89 Interblock’s e-tables have an at the next wave of resorts. unmistakable emphasis on luxury.

Upgrades All Around 76 Matsui Asia’s all-new series of innovative gaming chips.

4 inside asian gaming MAY 2015 MAY 2015 inside asian gaming 5 6 inside asian gaming MAY 2015 MAY 2015 inside asian gaming 7 EDITORIAL Gazing Into the Abyss

And when you gaze long into an abyss, the abyss also gazes into you. — Friedrich Nietzsche

s the stocks of ’s six casino operators—all still traded on the Hong Kong Stock Exchange—languish near their 52-week lows, investors are wondering when the sector will hit bottom. Las Vegas Sands Corp Chairman and CEO Sheldon Adelson commented on the uncertain Aoutlook for Macau during an earnings call last month: “We are sailing in uncharted waters, and I hope we don’t sink like that boat off in the Mediterranean.” Wynn Resorts’ Steve Wynn agreed during his own earnings call that “there’s no question that uncertainty is the plaguing word of the day in Macau.” There’s a perception that local authorities are adding to the uncertainty by allowing the decision on allocation of gaming tables for soon-to-open Cotai resorts—including Phase 2 of , scheduled for a 27th May unveiling—to go down to the wire, not to mention floating the suggestion of Publisher capping the number of visitors allowed into the tiny city, which is straining under the load of well over Kareem Jalal 2 million arrivals a month. “Hopefully, our government in Macau will calm that down and put some certainty back into the picture,” said Mr Wynn. Director João Costeira Varela In reality, table allocations and the mooted limit on visitor numbers are mere distractions from the well-documented causes of Macau’s current malaise, including Beijing’s ongoing corruption Editor At Large crackdown, the weakening China economy and tightening of illicit fund flows out of the country, along Muhammad Cohen with Macau’s total smoking ban on main-floor gaming areas since October. Another important factor is the evolving tastes of China’s middle class, and particularly the sophisticated younger cohort within it, Contributors Paul Doocey, John Grochowski, James Hodl, who are increasingly drawn to more exotic and experience-rich holiday destinations, and, it seems, like Matt Pollins, I. Nelson Rose their counterparts in America, are not as interested in gambling as the generation that preceded them. Macau’s table cap—originally intended as a means to rein in the overheating gaming market— Graphic Designer has become somewhat irrelevant following the precipitous drop in demand that has left hundreds of Rui Gomes gaming tables idle around the city. Shuffling tables out of existing properties into new ones is looking Administrative Assistant increasingly like the best way for operators to manage capacity. The latest consensus view is that Latte Iao Galaxy Macau Phase 2 will be granted 150 new-to-market tables, allowing it to open with approximately 200 total, though the company had said previously the property has capacity for 500 tables and 1,000 Photography EGMs. Clearly one result is a major opportunity for EGM suppliers to fill the gaps where tables should Ike, Gary Wong, James Leong, Wong Kei Cheong have been. As for the suggestion of capping visitors, “The chances of that happening are [the same as] I wake up tomorrow morning and all my hair will be grown back,” said Mr Adelson. He added: “I have been told that it is not a decision by the government. It’s only a suggestion by one of the ministers with very Inside Asian Gaming good intentions, but it hadn’t been thought out.” After all, a visitor cap would seriously hinder the is published by hoped-for diversification of the local economy. Mr Adelson offered an example of how it would affect Must Read Publications Ltd the vaunted MICE—meetings, incentives, conferences and exhibitions—industry: “I would never, as an 5A FIT Center organizer, book an event in Macau if I knew there was a possibility that the guy who came through the Avenida Comercial de Macau [border] before me was the last guy [who would be allowed in].” Macau Tel: (853) 8294 6755 For bargain hunters, the big question is: When is the appropriate time to go bottom-fishing for Macau casino stocks? It’s still too early to say when revenue might rebound, but the bearish tide could For subscription enquiries, please email be turning. Renowned Swiss investor Marc Faber, one of the world’s most noted market contrarians, [email protected] whose negative views earned him the moniker “Dr Doom,” is uncharacteristically optimistic about Macau’s prospects, recently saying on his blog: “In the next six months, I would accumulate some For advertising enquiries, please email [email protected] Macau-related gambling shares.” or call: (853) 6680 9419 The landscape for Macau’s operators has been utterly transformed. Gone are the days when players crowded three deep around tables within hastily converted office buildings as gaming capacity www.asgam.com struggled to keep pace with demand. The real growth now will have to come from the city’s non-gaming ISSN 2070-7681 offerings. It’s what Beijing, the local government and China’s new generation of consumers is looking for. And it’s fortunately what the upcoming wave of Cotai resorts promises to deliver. Dr Doom’s recent bullish call on Macau has merit. If Chinese demand could propel Macau’s Inside Asian Gaming gaming revenue to many times that of the Las Vegas Strip, surely it could do the same for its hotel, is an official media partner of: entertainment, MICE and F&B revenues as well. The question the operators now face as they gaze into the abyss is whether they have the mettle to compete on a world stage for Chinese consumers’ non- gaming dollars.

Kareem Jalal We crave your feedback. Please email your comments to [email protected] www.gamingstandards.com 8 inside asian gaming MAY 2015

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Putting Cambodiaon the Map

ambodia doesn’t often appear on regional leader boards, but it tops Southeast Asia when it comes to Among dozens of casinos in number of casinos. The kingdom hosts some 60 of them, most of which are small operations along its Cambodia, NagaWorld in Phnom borders, but Cambodia also has ambitious operators traded on major exchanges poised to fuel further growth, including Penh has done the most to raise NagaCorp,C a top performer on Hong Kong’s Hang Seng Index the kingdom’s regional profile since its 2006 listing, NASDAQ-listed Entertainment Gaming Asia, controlled by Lawrence Ho’s Melco International, and most recently Australia-listed Donaco International, which is finalizing its purchase of Star Vegas, reputed to be the best performer By Muhammad Cohen among Cambodia’s border casinos.

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Even though Cambodia doesn’t border China, geography favors “Business is booming,” Global Security Services Managing its gaming industry. The kingdom is wedged between Vietnam and Director John Muller, working in Cambodia since the early 1990s, Thailand, countries with a combined population approaching 200 says. Tensions between Vietnam and China and internal political million with no legal casino gambling open to their citizens unless, in conflict in Thailand have spurred greater foreign investment interest Vietnam, they also hold foreign passports. Cambodia has similar rules, in Cambodia, he notes, abetted by government investment in though enforcement is a far cry from Singapore or Vietnam, where infrastructure, much of it financed by China, a strong ally of Prime everyone must present a valid passport or national ID card for entry. Minister Hun Sen, who has held power for 30 years. Relaxed regulation is part of Cambodia’s gaming environment. Hun Sen’s Cambodian People’s Party had its parliamentary Coming out of the dark times of the Khmer Rouge regime that majority reduced in the 2013 election. Post-election political and labor massacred an estimated two million people and devastated national strife brought barbed wire to the streets of Phnom Penh, though pay institutions, followed by Vietnamese occupation, the new government raises and moves toward reform and combating corruption have institutions established in the 1990s had more important issues calmed the situation. “Cambodia is a country that still has huge than establishing a comprehensive casino regulatory framework. political risk,” Spectrum Asia CEO Paul Bromberg says. “Hun Sen Rules have arisen largely ad hoc, although Cambodian authorities and his party feel they’ve done so much for the country, they can’t say national casino legislation could be drafted this year. Gaming understand why many people aren’t happy.” taxes are assessed monthly per machine and table with no revenue PERC assesses business risk in Cambodia for this year slightly component. For busy casinos, that means effective tax rates in the higher than for 2014, despite the easing of border tensions with single digits. For opposition politicians, it means casinos are an Thailand and increased internal stability. Even if the opposition untapped potential revenue source. wins the 2018 election, economic policies are likely to remain Casinos have also helped make tourism a plank in Cambodia’s largely unchanged, according to multiple observers. PERC attributes economic revival, providing both attractions and service jobs increased business risk to a weak educational system, challenged to where experience rather than academic credentials matter most for produce a sufficiently skilled labor force to meet business demands. advancement. Cambodia’s GDP grew 7% last year, the second-best PERC also sees risks to tourism from internal factors in Vietnam, performance in Asia, behind China, and since 2000 the kingdom has Thailand and China. Nevertheless, Cambodia’s GDP looks set to been the sixth fastest growing economy in the world, according to grow at 7.5% this year, likely the fastest rate in Asia. It’s a heady brew Hong Kong’s Political and Economic Risk Consultancy. that continues to nourish the gaming industry. Cambodia

NagaCorp has come a long way from the barge in the Bassac River, just downstream from its confluence with the Sap River and mighty Mekong, where it began gaming operations 20 years ago this month.

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“This country has been a work in progress, and we’ve been a work in progress,” NagaCorp Chairman Timothy McNally says. “But we’ve arrived.”

“This country has been a work in progress, and we’ve been a work in progress,” NagaCorp Chairman Timothy McNally says. “But we’ve arrived.” NagaCorp’s revenue from NagaWorld in Phnom Penh has expanded at a 28% combined annual growth rate (CAGR) and EBITDA at 30% since 2010. While Macau experienced a historically bleak first quarter this year, NagaCorp’s gaming revenue grew 48% and VIP roll rose 79%. Major expansion of NagaWorld and a new resort in Russia’s Far East are expected to fuel further growth.

BUFFER ZONE NagaCorp has come a long way from the barge in the Bassac River, 500 meters further upriver, less than a kilometer south of Cambodia’s just downstream from its confluence with the Sap River and mighty Royal Palace and the city’s bustling riverside promenade. The Mekong, where it began gaming operations 20 years ago this company’s $95 million initial public offering in Hong Kong—which month. The company holds a 70-year casino license—Cambodia’s saw that exchange’s first listing of a gaming company, prior to the other casino are generally licensed on an annual basis—that runs listing of all of Macau’s operators there—provided funds to complete through 2065, with a 41-year monopoly within a 200 kilometer (120 the first phase of the hotel and entertainment complex. Controlling mile) radius of Cambodia’s capital Phnom Penh that expires in 2035, shareholder and CEO Chen Lip Keong, a Malaysian medical doctor with stipulated exclusions for border areas, colonial highland retreat and entrepreneur who serves as an economic adviser to Hun Sen, Bokor and Sihanoukville, Cambodia’s main port and a beach resort. could have financed the project out of his own pocket. “We went to It wasn’t until 2003 that NagaCorp operations moved onshore the marketplace to become an international company,” Mr McNally, with 44 tables and 211 machines at NagaWorld’s present location a former US FBI agent explains. “Dr Chen did it with the vision to be

NagaWorld’s recently opened VIP penthouse suites

The suites, for players that check in $2 million and roll it six times, have attached gaming rooms. “That’s an advantage over Macau,” Senior Vice President for Casino Operations Vincent Mascio says. “We’re not as regulated on the small things as Macau. It makes life easier.” Cambodia also has no whiff of smoking restrictions on the horizon.

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Naga2’s two towers will have 1,000 guest rooms, 38 VIP salons, up to 300 tables and 500 electronic gaming machines, plus a theater with 2,100 seats and meeting space across 110,000 square meters. The main focus will be on VIP, with perhaps 50 additional mass market tables.

the best gaming destination in Indochina and to be poised to move proved presecient when in early 2009 Cambodian authorities shut into other opportunities in Indochina.” down Phnom Penn’s slot parlors, which had operated thousands of NagaWorld has expanded over the years into the biggest gaming machines; NagaWorld’s slot revenue increased from $3.1 million in resort in Indochina with gross floor area of 113,307 square meters 2008 to $34.3 million in 2009. NagaWorld debuted dealer-assisted (1.2 million square feet). It currently has some 200 tables, 1,670 electronic multi-game terminals in 2011. gaming machines, 18 food and beverage outlets and 700 five-star hotel rooms with rack rates starting at $105 a night. It also has CELL DIVISON banquet and meeting space, entertainment in the lobby as well as on NagaWorld also added what it calls casino cells with unique décor the gaming floor and a spa with a whirlpool bath in every treatment and themes, including the China Garden with pagodas and live room. Total investment has been around $300 million; Mr McNally plants, NagaRock with disco lights and dancers, and Saigon Palace, says a similar facility in Macau would cost well over $1 billion. Naga2, appropriate since a large proportion of mass-market players are under construction across the street, will double capacity when it Vietnamese, once as many as 40%, though executives say that’s opens in 2017. Dr Chen is financing that $369 million project, which come down to 15% these days. The ground level main floor has the NagaCorp will acquire upon completion in exchange for company widest variety of games, including stud with minimum bets as shares. Meanwhile, NagaWorld keeps evolving and innovating. low as $5, $10 tables, at $20, plus Vietnamese card Focused on serving low-end junkets in its early days, NagaWorld games at $40. (US dollars circulate commonly alongside the local set its sights on serving the mass market after its hotel and riel.) Baccarat, which accounts for 85% of mass table revenue, has entertainment wings were completed in 2008. The transition to mass minimum bets of $100 for what executives call “squeeze games,”

Heading Far East

NagaCorp hopes to break ground this year on a $350 million gaming resort outside Vladivostok in Russia’s Far East, where a casino cluster is taking shape in the Primorsky Integrated Entertainment Zone. The first phase will cost $50 million including a hotel and casino to open by 2018. Analysts expect subsequent development to depend on the success of phase one. “We believe that our strategy of diversifying our business geographically and expanding into a new casino market will drive revenue growth in the long term,” NagaCorp writes in its annual report. “People ask: ‘Why go outside our Asian expertise?’” NagaCorp Chairman Timothy McNally says. His reply: “We’re not.” NagaCorp >>

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where players can handle the cards, with several $200 tables. There are $40 baccarat tables with cards dealt face up. Mass minimums were increased at the end of 2012, and maximum mass baccarat bets raised to $50,000. The new strategies dramatically changed revenue mix. In 2008, junket play constituted 93% of gaming revenue through a variety of commission programs. In 2011, junket play was down to 38% of Bassaka Air will begin twice weekly service to Macau this gaming revenue. More importantly, after two recession-impacted month and flights to China are expected to begin in July. years, gaming revenue had grown 10% from 2008 to $211.4 million in 2011 with overall revenue up 16% to $223.8 million, net profit grew from $40 million to $92 million and EBITDA rose from $49.3 million to $111.8 million as margins improved from 26% to 50%. went toward hardware including adding VIP rooms, limousines “In 2012, we realized we had to step up on the VIP side,” Mr and a private hangar under construction at Phnom Penh’s airport. McNally says. “To be a full service property we needed to upgrade But much was seed money for Naga’s Junket Incentive Program our gaming facilities and VIP amenities.” Competitive pressure from that offers promoters a 70% split of revenue, rising depending regional competitors contributed to that decision. on roll, compared with Macau’s typical junket share in the mid- Late that year, NagaWorld opened penthouse suites—modern 40s—any more than that would not be feasible in Macau given the duplexes with terraces overlooking the rivers that would fit proudly 40% gaming tax there. By sharing rewards and risks with junkets, into Macau or even Manhattan. The suites, for players that check NagaWorld has been able to raise VIP maximum bets to $200,000. in $2 million and roll it six times, have attached gaming rooms. To support the incentive program, it added VIP rooms with a total “That’s an advantage over Macau,” Senior Vice President for Casino of 47 tables last year. Operations Vincent Mascio says. “We’re not as regulated on the small things as Macau. It makes life easier.” Cambodia also has no VIP PAYOFF whiff of smoking restrictions on the horizon. “VIP was our big story of 2014,” Mr McNally says. “Our VIP strategy NagaCorp has been out in front of Cambodia’s government is paying off.” After a long courtship, NagaWorld brought in its first on anti-money laundering measures. “AML is an issue because we Macau junket in August, Asian Nations, a group of agents affiliated knew it would be an issue with international financial companies with other Macau junkets, NagaWorld executives say. The impact was and other destinations,” Mr McNally says. “As a company looking to immediate, with rolling volume up 47% year on year in the second expand elsewhere, we emphasize corporate governance and a clean half of last year, and Asian Nations contributing $627 million in a little operation.” NagaCorp regularly commissions independent audits of more than four full months of operation, according to Union Gaming its AML procedures, including one last year. Research Macau. NagaWorld, which opened a marketing office in A supplementary stock offering in March 2013 raised $156 Macau last year, is seeking agreements with other junket promoters. million to develop direct premium and VIP business. Some funds “We don’t have the cosmopolitan feel of Singapore, but the feedback

plans to leverage its frontier market experience with NagaWorld in plan is still awaiting approval from Russian authorities to allow Cambodia and its connections with China for the Russia project. construction to begin. “The idea is to reach out to 435 million Chinese living within a On a visit to the region last year that featured meetings with two hour flight,” Mr McNally says. China International Travel Service government officials, NagaCorp CEO and controlling shareholder (CITS) and China Duty Free Group, also working with NagaCorp on Chen Lip Keong said, “We are serious about the gaming zone its expansion of NagaWorld, are also cooperating on the Vladivostok development project, but it should be understood that the project, along with architect Paul Steelman, designing the Phnon construction of a casino should be conducted in close cooperation Penh property’s NagaCity Walk retail area. with the public sector. We have an extensive experience in the Flight times to Vladivostok are less than three hours from the successful development of tourist destinations in Cambodia, and we capitals of Japan, which has no legal casinos, and , where are ready to bring it to Primorsky Territory.” citizens can only play at a single, remote location that’s a four-hour NagaCorp won’t be alone in Primorsky. First Gambling Company drive from Seoul. But NagaCorp says its Vladivostok project will of the East, a consortium led by Lawrence Ho-controlled Summit focus on the China market. Ascent, is scheduled to open a casino in the area later this year. “It’s the China side we know, where we have the knowledge Russian casino operator Royal Time Group is also building in the and expertise,” Mr McNally says. “How quickly we ramp up region. A study by Global Market Advisors Partners Steve Gallaway is a question of the effectiveness of our China operation.” He and Andrew Klebanow forecast gaming revenue in Primorsky to forecasts payback on the first phase within four years. He says the reach $1.2 billion within three years of resort openings and $5.2 resort could open ahead of the 2018 projection, though the master billion within ten years.

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is positive” from Macau visitors, Mr McNally says. “Cambodia has its 100 meters (110 yards) away across a major roadway. Naga2’s two own unique attractions.” Compared to some other regional gaming towers will have 1,000 guest rooms, 38 VIP salons, up to 300 tables destinations, “It’s a better fit actually for mainland Chinese.” and 500 electronic gaming machines, plus a theater with 2,100 Last year, VIP roll grew 35% to $6.2 billion and VIP revenue seats and meeting space across 110,000 square meters. The main increased 41% to $188 million. Even without Asian Nations’ focus will be on VIP, with perhaps 50 additional mass market tables. contribution, second-half VIP roll jumped by more than 20% Executives suggest one tower may be dedicated exclusively to VIP because, unlike Macau, NagaWorld was getting most of its VIP guest rooms outfitted with private gaming tables. revenue from Southeast Asia. Morgan Stanley estimates China VIP The downside to increased VIP play is margin erosion. Net business contributed less than 5% of NagaCorp’s second-half gross profit margins fell from 40.7% in 2013 to 33.7% last year. Margins profits, with 22% from other VIPs and 73% from the mass market. on VIP play also fell three percentage points to 37% due to increased On the other hand, the relatively small contribution from incentives to junkets. Analysts believe regional competition from China provides ample room for growth, particularly under current the Philippines, South Korea and Vietnam might drive up costs conditions. “The downturn in Macau offers the group opportunities and put further pressure on margins. Mr McNally concedes, “VIP to further penetrate the Chinese gaming market in both the VIP and is demanding. It’s high-end costs. It’s not something where you mass gaming segments, by being able to offer attractive terms to can have one foot in the water. Margins [on VIP] are not what they junket operators and agents as a result of NagaWorld’s low cost are on the mass market side. It’s the mass market that keeps your structure,” the company stated in its earnings release. foundation solid,” he says. “We want robust junket representation, Macau’s largest junket promoter, Suncity Group, is expected to but mass market is still key.” begin sending customers to NagaWorld this month. Morgan Stanley Asia estimates Suncity will roll $200 million monthly at NagaWorld. AN EYE ON CHINA First quarter 2015 VIP roll increased 79% to $1.7 billion and revenue NagaCorp is also looking toward Chinese players to boost the mass doubled to $65.5 million. For the year, Morgan Stanley estimates VIP segment. Last year it purchased a pair of A320 airliners that can seat roll will grow 54% to $9.6 billion and generate an incremental $21 up to 180 passengers to supplement its two Gulfstream private jets. million in gross VIP profits. The aircraft have been leased to independently operated subsidiary A revamp of NagaWorld’s rooftop pool area opening later this Bassaka Air, which is currently flying between Phnom Penh and Siem year will add about a dozen VIP tables, as well as mass gaming. This Reap, the site of Angkor Wat, the thousand year old Buddhist temple casino cell will allow players to enter in swimwear; NagaWorld won’t complex that’s Cambodia’s top tourist attraction. While the airliners say what its staff will wear. can be used for VIP charters, NagaCorp executives say the main These changes are just a prelude to Naga2, under construction target is mass market tour groups. It has an agreement with China

NagaWorld has added what it calls casino cells with unique décor and themes, such as Saigon Palace, appropriate since a large proportion of mass-market players are Vietnamese, once as many as 40%, though executives say that’s come down to 15% these days.

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International Travel Service (CITS) to bring mainland visitors to NagaWorld. According to a recent research report headlined “Gaga for Naga,” Union Gaming Research Macau says Bassaka Air will begin twice weekly service to Macau this month and flights to China are expected to begin in July. NagaWorld signed up another name familiar to mainland travelers, China Duty Free Group, for NagaCity Walk, the street-level and below-ground shopping mall linking to Naga2 that was designed by renowned casino architect Paul Steelman. China Duty Free will NagaWorld debuted secure tenants for the 18,000 square meter retail area and operate its dealer-assisted own outlet occupying at least 2,400 square meters. “From a strategic electronic multi-game standpoint, we developed the relationship with China Duty Free with terminals in 2011. an eye on China,” Mr McNally explains. “Cambodia is very intent, as we are, in building relationships with China. We think we can be a beneficiary of these relationships.” Cambodia’s visitor arrivals from China grew 21% last year to need 600 solid managers in three years. We have 300 and need to 560,335, as overall arrivals grew 7% to 4.5 million, more than double localize.” NagaWorld offers the opportunity to “leapfrog people in the level five years before. That comes on top of Chinese arrivals management experience.” surging 38.7% in 2013 to take second place behind Vietnam. In its To help bolster the hospitality sector workforce, NagaCorp annual report, NagaCorp writes that continued growth from China created Naga Academy in 2012. Naga offers three- to six-month and other “gaming-centric countries is one of the drivers of our training programs in eleven areas, from food and beverage service to business growth.” audiovisual to marketing and sales. Last year it trained nearly 1,000 To better accommodate Chinese visitors, NagaWorld aims to interns. NagaCorp hired the majority and assisted the rest to find “Chinify” the resort, a drive that goes well beyond decorations for jobs elsewhere with a 100% success rate. Chinese New Year and adding items to the breakfast buffet, according Other bottlenecks are proving more difficult to resolve. The to Managing Director for Corporate Affairs Rob Cho. Since January company had hoped to begin flights from China and Macau late last last year, NagaWorld has offered Mandarin classes for staff with prize year, but red tape has delayed this key growth initiative. NagaCity competitions for the top students. Walk was due for completion at the end of last year, but has been set Overall, NagaWorld, which currently has 5,400 employees in back by construction issues. The company now anticipates finishing Cambodia, will need more than 10,000 by the time Naga2 opens. “We construction in the third quarter, with a first-quarter opening next have a unique value proposition in HR, a lot of middle management year. Meanwhile, NagaCorp’s staff costs last year increased 40% to opportunities,” Mr Cho, a former Hong Kong banker, says. “We $48.7 million, partly to keep NagaWorld line employees ahead of a near doubling of Cambodia’s minimum wage since 2013, but mainly due to beefing up executive talent, which may be underutilized at the moment due to project delays. NagaCorp remains confident “these The swingingNagaRock premium-mass area promotional and operational strategies will bear fruit in the coming years as NagaWorld grows its market share in Asia,” and analysts largely agree, but meanwhile earnings are suffering. Last year, net profit fell 3% to $136 million, even though gaming revenue increased 17%. Excluding the $15 million entry fee paid in 2013 by one of NagaWorld’s three EGM revenue share operators, net profit increased 9%. Morgan Stanley, Union Gaming and Credit Suisse have trimmed 2015 estimates for NagaCorp shares, while maintaining positive ratings for the stock. Amid the short term obstacles, Union Gaming Research Macau writes, “NagaWorld continues to notably outperform its regional Asian counterparts. We also firmly believe that the company has and is putting the right things in place to continue to drive revenue across all of these segments over the next two years prior to the opening of Naga2.” And that may just be the beginning. With Cambodia’s visitor arrivals expected to reach 7.5 million by 2020, it doesn’t take long for company executives to mention Naga3 and Naga4.

Editor at large Muhammad Cohen also blogs for Forbes on gaming throughout Asia and wrote “Hong Kong On Air,” a novel set during the 1997 handover about TV news, love, betrayal, high finance and cheap lingerie.

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Rough Around the Edges

ou won’t see hitching posts, tumbleweeds or swinging door saloons, but Poipet in Cambodia is the frontier. This casino strip lies just past Thailand’s busy border Ready or not, Donaco checkpoint at Aranya Prathet, where some 5,000 people cross into Cambodia daily. After passing an arch crowned International’s purchase of in the style of Buddhist stupas, travelers must walk some 200 meters throughY the heart of the strip to reach Cambodia’s immigration post Star Vegas Casino in Poipet and receive their visas. The largest of Cambodia’s 14 border casino areas—six on the puts Cambodia’s border Thai side and eight on the Vietnam side—Poipet serves as a gateway from Thailand for trade and travelers to the ancient Angkor Wat casinos in the spotlight complex. Poipet’s first casino, Holiday Palace, opened in 1998 with 12 tables. Today, Poipet has ten casinos with about 750 tables, 3,900 gaming machines and around 2,500 hotel rooms along an inverted L-shaped strip with that welcoming arch at its corner. Poipet casino customers are almost all Thais, who don’t need visas to enjoy legal By Muhammad Cohen casino gaming not available at home.

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Though it can seem makeshift and disorganized, Poipet had estimated gross gaming revenue in the $400-$450 million range last year, with EBITDA around $150 million. The top property, Star Vegas Resort and Club, is being sold for $360 million to Australia- listed Donaco International, a transaction likely to augment a recent revival in Poipet. “The deal will improve the overall market as the new ownership will be driven to increase their performance, also resulting in spillover customers for the other properties,” observes Ray Poh, COO of Singapore-based slot manufacturer Weike Gaming. Poipet enjoyed a heyday in the early 2000s that receded as Macau, Phnom Penh’s NagaWorld and Singapore became attractive gaming alternatives for Bangkok residents. “Poipet is a two-star experience that requires three to four hours in a car,” Global Market Advisors Thailand’s military government, installed Partner Andrew Klebanow says. “Macau is a five-star experience that’s a two-and-a-half hour plane ride away.” last May after years of political bickering, But Mr Poh believes Poipet has enduring appeal for Thais even has cracked down on Bangkok’s underground after they’ve seen the bright lights of Cotai and Marina Bay. “Poipet serves as a convenient point for gaming,” he says. “Casinos in Poipet casinos, Poipet’s main competition for accept Thai baht, which also serves as a plus point over other casinos players that don’t want to fly. Thailand’s in the region.” economic growth, though dampened by CRACKDOWN BUILDUP Thailand’s military government, installed last May after years of political strife, keeps producing additional political bickering, has cracked down on Bangkok’s underground gaming demand for Poipet.

26 inside asian gaming MAY 2015 casinos, Poipet’s main competition for players that don’t want to fly. Thailand’s economic growth, though dampened by political strife, keeps producing additional gaming demand for Poipet. Golden Crown, which has three casinos and four hotels, is building two hotel additions, including a 15-storey tower that would be the tallest in Poipet. Poipet is also finding new revenue from online gaming run by casinos or third parties. Streamed videos of young women placidly dealing cards under bright lights on Poipet’s gaming floors feed the live dealer betting functionality on online gaming sites around the world. Casinos also rent office space to online gaming enterprises. Golden Crown’s new walkway linking its properties includes space for online gaming webcasts, back offices and call centers. But the main business of Poipet is conducted face to face. Minimums bets are as low as B40 ($1.25) with VIP maximums up to B800,000. As across Asia, baccarat dominates. Poipet’s casinos employ about 10,000 people, most of them Cambodians, also known as Khmers, in part to prevent dealers colluding with the Thai players. Casinos have instituted a minimum wage of B5,000, nearly 20% above Cambodia’s national standard. Some casinos look like church basements hosting a “Las Vegas Night” under harsh fluorescent lighting with players seated on dinette chairs. Others resemble gaming halls in Nevada border towns such as Jean or Mesquite or smaller satellite casinos in Macau,

Poipet’s first casino, Holiday Palace, opened in 1998 with 12 tables. Today, Poipet has ten casinos with about 750 tables, 3,900 gaming machines and around 2,500 hotel rooms along an inverted L-shaped strip with that welcoming arch at its corner.

MAY 2015 inside asian gaming 27 Cover Story

Grand Diamond Casino’s Manat Bumrerjit says safety is a top priority. “People come here to be confident, feel safe,” he says, an oblique reference to Bangkok’s illegal dens.

with comparable revenue. The 71-table main gaming hall at Grand Diamond Casino, opened in 2002, rakes in “about a million baht on a good day,” according to Manat Bumrerjit, who calls himself the “representative” of the owner, a Thai former politician. “Casinos don’t live with VIP, they live with the main hall.” Grand Diamond is linked via skybridge—adorned with a video board flashing promotional messages at incoming travelers—to sister property Poipet Resort, with the longest and most attractive frontage on the Cambodia immigration leg of the casino strip. The two properties have combined estimated annual gross gaming revenue of $100 million from 235 tables, including the only craps table in Poipet, and 1,000 machines on revenue share arrangements with two different companies.

SAFETY PLUS SHOWBIZ Mr Bumrerjit, who’s been in Poipet since Grand Diamond opened, says safety is a top priority. “People come here to be confident, feel safe,” he says, an oblique reference to Bangkok’s illegal dens. Poipet casinos also try to set themselves apart by bringing in recognized

Turbulent Crossing

Bavet, Poipet’s opposite number on the Vietnamese border, continues to struggle. Even though Vietnam is Cambodia’s biggest source of visitors and Bavet is less than two hours from Ho Chi Minh City, Vietnam’s commercial capital with nine million of its richest citizens, the town’s dozen or so casinos get only a fraction of Poipet’s business, with annual gross gaming revenue of perhaps $50 million. For players in Bavet, trying their luck can extend to cashing in at the cage. Popular Bavet casinos, such as Crown, formerly King’s Crown, Bavet is the largest of eight Cambodian with 35 tables and 100 machines, book daily revenue of about border areas catering to Vietnamese $25,000 from 400 visitors. Seven Bavet casinos are around Crown’s size. The rest have less than a dozen tables. Betting is in US dollars players, who can’t play at casinos back at low stakes. home unless they hold foreign passports. Bavet is the largest of eight Cambodian border areas catering to Vietnamese players, who can’t play at casinos back home unless they But streets in Bavet feel desolate, and hold foreign passports. But streets in Bavet feel desolate, and it’s it’s difficult to tell whether many casinos difficult to tell whether many casinos are open or closed. Ownership changes and bankruptcies are frequent. Stories of casinos unable are open or closed. >>

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Thai entertainers for holidays shows, though Mr Bumrerjit laments Donaco International is Poipet’s lack of family attractions. The two properties run 20 buses daily from Thailand, the majority betting $360 million on from Bangkok and a couple from the resort town of Pattaya, that bring around 600 visitors, upwards of 700 on weekends. Other operators Star Vegas, and the broader provide similar services. Most buses leave in the early morning and proposition of Poipet’s depart from the Thai side of the border around 8pm, with a few buses departing Bangkok late afternoons and leaving Poipet around 8am. continued prosperity and The border closes at 10pm and reopens at 6am. growth. “It’s been a very Grand Diamond and Poipet Resort have a total of 600 rooms that go for B1,500 a night, and are free to players that spend successful gaming strip. Star B30,000, about five times the average of bus customers. VIPs that Vegas is the most successful deposit B300,000 (around $10,000) get complimentary pick up, room and meals. Junket promoters are all from Thailand, and rolling property on that strip,” commissions can reach 2%. Donaco Executive Director Holiday Palace Slots Manager Halim Lim says that property gets 30-50 VIPs a week from Bangkok, but the revenue split is “random” Ben Reichel says. depending on who shows up and how they play. VIP players deposit a minimum of B1,000,000 for a 1.8% commission. Holiday Palace has 41 mass tables, all but eight for baccarat, on its attractive main floor and 23 VIP tables. Holiday Palace and sister property Holiday Poipet, sharing a prime location closest to the Thai border gate, have estimated annual gaming revenue of $80 million combined. Mr Lim says Holiday Palace’s slot floor offers the widest variety in town with 700 machines from about 10 different manufacturers. The average daily win per unit is around $200, while taxes are $50 per machine per month, Mr Lim says. The casino has a mix of revenue share deals and outright ownership of machines. It does slot VIP

to pay players abound. Experts say the problem is undercapitalized operators relying on player deposits to pay winners. Bavet beats Poipet only on casino name creativity. Along with Le Macau, there’s Las Vegas Sun, its logo mimicking that of Las Vegas Sands. Winn casino is a small scale copy of the exterior of the Bellagio, with a logo imitating the signature on Wynn Resorts’ properties. For all its styling, Winn sits closed, weeds filling its driveway. For Vietnam, Cambodian casinos are no laughing matter. The Vietnamese government actively discourages its citizens from crossing the border to gamble, claiming that in doing so they take some $1 billion in valuable foreign exchange out of the country. In addition to closing the Bavet border at 7pm, Vietnam feeds local media a regular diet of casino horror stories. Early this year, a senior official with the Ministry of Public Security said Vietnamese gamblers in Cambodia were held hostage to collect debts, some killed when they failed to pay up. Officials also claim Cambodia’s legal and Winn casino is a small scale copy of the illegal border casinos and cockfights entice Vietnamese to become exterior of the Bellagio, with a logo loan sharks and prostitutes and that Cambodian authorities don’t cooperate sufficiently with Vietnamese law enforcement. imitating the signature on Wynn Resorts’ The campaign seems to be working. Vietnam claims the number of people leaving to gamble via one border crossing fell from 500 to properties. For all its styling, Winn sits 150 daily. Cambodia seems unmoved, approving licenses for three closed, weeds filling its driveway. more border casinos in March.

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business with players checking in B300,000 per visit. of $60 million from its 385 hotel rooms, 109 gaming tables and 1,264 Holiday Palace has 350 rooms with rates starting at B1,800 gaming machines, 288 owned outright and the rest on revenue share per night that are the closest thing in Poipet to five-star, plus the deals. “Star Vegas in Poipet is, in our view, a best-in-market asset and widest range of facilities, including six restaurants, a spa, salon, gym is the only resort in Poipet for which an argument can be made that and duty free shop. “Other casinos are cheaper but don’t have the it is approaching international standards,” Union Gaming Research quality,” Mr Lim says. Holiday Poipet is adding 230 rooms, scheduled Macau wrote in a positive review of the deal after it was announced to open next month, but Mr Lim knows that won’t be enough. “The in January. hotels are full on weekends,” he says. “There should be 5,000 hotel Donaco foresees little capital outlay required at Star Vegas over rooms in Poipet” the next five years, “except buying more slot machines as the business expands,” Mr Reichel says, “The public areas are much higher SIMPLY THE BEST quality than other casinos,” with fresh carpets, high ceilings—some Mr Lim contends, “For hotel rooms, we are the best.” But he voices featuring the property’s star logo—clean lines, and a performance the consensus opinion that “Star Vegas is the best casino in Poipet.” lounge that screams potential. The property, opened in 1999, also Donaco International is betting $360 million on Star Vegas, and has a swimming pool, its own power infrastructure, water supply the broader proposition of Poipet’s continued prosperity and growth. from a lake with purification and recirculation facilities on site, and “It’s been a very successful gaming strip. Star Vegas is the most even its own fire engine. successful property on that strip,” Donaco Executive Director Ben Hotel rooms, with rates from B850 to B1,500, aren’t five star and Reichel says. haven’t been a focus under outgoing ownership, Mr Reichel says. The company’s investor presentation says Star Vegas, located at “The hotel just has to meet market expectations. They make very little the far end of the strip leg paralleling the border, had 2014 EBITDA money from rooms. They’re almost all comped.”

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FAMILIAR DIVERSIFICATION Star Vegas will serve as a bookend to Donaco’s Aristo International Spectrum Asia CEO Paul Bromberg says casino hotel in Lao Cai, Vietnam, where players from neighboring Yunnan there are two major risks faced by Poipet’s Province walk in from China with their ID cards and play in Chinese renminbi. For Donaco, the acquisition is about diversification—a Thai- casinos: “First, Cambodia-Thailand border facing property complimenting a China-facing one—not synergies, but conflict: border skirmishes could close there are key similarities between the properties. “Operating conditions are very similar to what we know in the border overnight as has happened Vietnam,” Mr Reichel says. “It’s an area that Thai players can cross before. Second, the Thai government could over to without a visa. Even though they’re in Cambodia, they gamble using Thai baht, so don’t have to change money. Star Vegas cage legalize casino gaming in Thailand. That and casino staff are all ex-Genting, Genting trained, so the operating is unlikely to happen in the foreseeable procedures are the same as Aristo.” On the regulatory side, Mr Reichel concedes Cambodia’s regime future, but it would kill Poipet overnight.” is “pretty ad hoc. Licenses are issued annually, but if you pay your taxes, there’s certainly no issue of getting the license renewed.” Casinos are exempt from the 20% corporate income tax, and levies are per gaming device only, not revenue. “One key thing is that the market diversification. The deal is also the equivalent of a minnow government doesn’t tax you on a percentage of profits,” he says. swallowing a whale. Donaco estimates the deal will increase its 2015 “Our assumption is that taxes will increase gradually. From such a revenue nearly five-fold to A$228.3 million ($177.3 million) from A$38.8 low base, it’s still going to be very minimal.” million, quadruple EBITDA to A$99.9 million and boost net profit to On money laundering, Mr Reichel says, “Cambodia has been a A$80.7 million. Looking at it another way, with the completion of the focus country for Financial Action Task Force, the inter-governmental merger, Star Vegas would account for 84% of Donaco’s estimated group that looks after money laundering. They’ve acknowledged 2015 revenue, 77% of EBITDA and, after deducting interest costs Cambodia has made significant strides in recent years. They’ve got related to the acquisition, 80% of net profits. the right laws in place. They’ve got a regulator in place. There may be some issues in terms of enforcement but at least they’re getting BIG DEAL there in terms of the structure.” He adds that Donaco will monitor “The Star Vegas deal is a lot bigger than a lot of people were the issue closely and ASX, the Australian stock market, didn’t raise expecting,” after the company announced last year it was negotiating concerns about the deal. an unspecified Cambodia acquisition, Mr Reichel says. “A lot of Donaco rightly calls the acquisition “transformational.” From people in the industry didn’t realize how much money Star Vegas a single-asset enterprise—Donaco completed selling off gaming makes. The total deal size is $360 million, but it’s important to technology assets last year—the deal gives it geographical and remember one-third of that is in Donaco shares.”

installs it, maintains it,” Donaco International Executive Director Ben Reichel says. Australia-based Donaco is buying Star Vegas in Poipet, Everyone Wins Cambodia, where nearly 1,000 of the 1,300 machines are on revenue share deals. “From the operators’ perspective, it’s an opportunity to With Revenue Share see which games work, and then to buy them. They make much more money that way.” “We get more varieties of machines for players,” Holiday Poipet It’s a casino floor truism that someone wins Slot Manager Halim Lim says. “For machines not proven in the and someone loses. But revenue share arrangements on gaming market, we try them and have the option to buy.” machines or tables can create a win-win-win situation for operators, Revenue share deals take many forms. Where regulations permit, service providers and players. casinos with excess or underperforming table capacity can offer Revenue share happens throughout the gaming world but is tables to outside operators, usually with an exclusive on a particular particularly attractive to operators in smaller markets. Casinos get game, on a percentage or lease basis. NagaCorp reported receiving a machines for the floor without capital outlays and an opportunity $15 million “EGM Entrance Fee” in 2013 from an operator for placing to see which games customers like. Machine providers get steady 200 revenue share machines at NagaWorld in Phnom Penh. revenue streams and product exposure. And players get a wider EGM net win splits are typically 70% to the casino, 30% to range of game choices. the provider. Rates vary depending on whether the casino or share “The distributor brings in the machine, pays the capex cost, operator staffs the slot area, casino traffic and types of games. >>

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To finance the transaction, Donaco secured a $100 million loan team to learn every detail of the business, relationships with junkets, at 6.85% from Taiwan’s Mega International Bank. Mega Bank’s kind of a handover period,” Mr Reichel says. There’s no management cataloguing of assets to secure the loan has delayed the deal’s fee for the seller, but a potential percentage of profits if the earnings closing from April to July, Donaco says. The company raised $100 target is met. million through an equity offer to shareholders and will issue 147.2 There’s also the question of growth for Star Vegas and Poipet million shares, valued at $120 million, to the seller, Thai businessman overall. “There are eight casinos that have been doing this for 15 Somboon Sukjaroenkraisri and his son Lee Bug Tong. years,” Global Market Advisors’ Mr Klebanow says. “Some new “It could almost be seen as a backdoor listing of Star Vegas, operator isn’t going to do anything they haven’t tried already.” since the business we’re acquiring is much larger,” Mr Reichel says. “Star Vegas is a very well established business but we think it’s “But the critical point is that the vendor is only getting 18% of the got plenty of growth in it,” Mr Reichel replies. He reports Donaco has company. Usually in a backdoor listing deal, the vendor would get talked to Malaysian and small Macau junket promoters about visiting 80%. So we think it’s a very good deal for our shareholders and that’s Star Vegas, but admits bringing in non-Thai players would require why it’s been so widely supported.” The shareholder vote in March changes, such as Mandarin-speaking dealers and Chinese food. showed more than 99% approved the deal. Union Gaming notes “We see organic growth from upgrading of the road and rail the purchase price of six times EBITDA is a discount to its 8.5 times infrastructure from Bangkok,” Mr Reichel says. “By end of the year, earnings valuation for NagaWorld. that should be a pretty comfortable two-and-a-half hour drive.” Not everyone is convinced it’s a great deal, though. “That’s Transport improvements are part of the larger ASEAN Economic a large amount of money to pay for a property facing two major Community initiative to allow free movement of goods between the risks,” Spectrum Asia CEO Paul Bromberg says. “First, Cambodia- ten countries of the Association of Southeast Asian Nations. Equally Thailand border conflict: border skirmishes could close the border important, the initiative should also lead to 24-hour border opening overnight as has happened before. Second, the Thai government by year’s end. Thailand is also considering a special economic zone could legalize casino gaming in Thailand. That is unlikely to happen on its side of the border to encourage more business development in the foreseeable future, but it would kill Poipet overnight. If the Thai along what’s already a thriving trade route. patrons don’t have to drive three-and-a-half hours there, they won’t.” “On the whole we think Poipet has quite a bit of growth ahead Donaco feels it has mitigated its risks through the sale agreement of it,” Mr Reichel says. “Unless you go under the assumption that that includes a two-year guarantee of $60 million in EBITDA, a sum in Thailand gambling is going to be legalized, which we don’t think that would nearly cover Donaco’s cash outlay. The seller is also signed is a possibility in the short term or even medium term.” Donaco has to a two-year management contract. “It’s a transition period for our $360 million riding on that opinion.

In Cambodia, NASDAQ listed Entertainment Gaming Asia gets 25% of net win from its 670 EGMs at NagaWorld, 27% from 170 machines at Thansur Boko Highland Resort between Phnom Penh and Sihanoukville, and 40% from 300 EGMs at DreamWorld Poipet, which EGA built and operates on its partner’s premises. In its three Manila operations with 557 EGMs, the take ranges from 15% to 35% for EGA, which is 64.8% owned by Melco International and was formerly known as Elixir Gaming Technologies. Other revenue share operators active in Cambodia include casino operator Silver Heritage, which also has machines at NagaWorld, Malaysia’s Waz Lian Group, manufacturer/distributor RGB Revenue share happens throughout the International, Cambodia’s Golden Tree and Australia’s Indo Pacific Gaming, plus EGM manufacturers. gaming world but is particularly attractive “Operations gives us the chance to test the market out properly to operators in smaller markets. Casinos get and give floor space and time for players to familiarize themselves with the game,” Weike Gaming Chief Operating Officer Ray Poh says. machines for the floor without capital outlays “With casinos in the region adopting the strategy of three month and an opportunity to see which games trials instead of direct purchase, it gives only a short period of time for players to understand the game concepts and for the games to customers like. Machine providers get steady make a lasting impression on them. We’ve had instances where revenue streams and product exposure. And games being left on the floor for over six months gradually increase their performance to be able to hold their weight or even perform players get a wider range of game choices. better than the floor average.”

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Drawing a New Crowd

As Macau undergoes a metamorphosis, the upcoming wave of Cotai resorts could potentially face a heretofore unimagined challenge—getting Chinese visitors interested in checking out the casino floor. That’s where the attention-grabbing products of SEGA SAMMY CREATION could serve a critical purpose

hat a difference a year makes. Macau’s casino revenue, on track to another hefty decline this month after a 39% year-on-year plunge in April, was still growing at the time of G2E Asia last May. Although the VIP sector had already started to falter under Beijing’s corruption crackdown, mass- Wmarket revenue seemed unassailable twelve months ago, continuing an unbroken run of heady growth since 2011. It didn’t seem likely then that mass revenue growth would even dip significantly below 30%, much less give way to double-digit contractions. Underlying the newfound weakness in Macau’s mass market is a crackdown in illicit fund flows out of mainland China using state-backed UnionPay debit cards and a total smoking ban that Takashi Maekawa, vice president of SEGA SAMMY CREATION’s came into effect on all main-floor casino areas from October. Business Management & Development Department There’s more to it, however. The tastes of China’s swelling ranks of middle class consumers—a group that barely existed at the turn of the millennium—are evolving at an astounding pace. Last year, high-spending Chinese tourists made 107 million visits overseas. The more they travel, the more sophisticated they’re becoming in “When the new generation of tourists deciding where to go next, and Macau apparently isn’t living up to all comes to Macau, a lot of them might just their new expectations. In particular, China’s rising young generation of consumers—those born after the mid-80s in the era of economic walk straight through the casino floor. But reform and the country’s opening up to the world—are looking for our eye-catching machine might prompt more exotic locales and high-quality experiences, and it’s doubtful they’ll be as keen on old-style gambling as the generation they’re them to stop to check it out, maybe give going to supplant. it a try. In that sense I think we’re very The upcoming wave of resorts in Macau’s Cotai district promise to be among the most spectacular ever seen, replete with extensive different from what’s out there.” world-class leisure offerings that should reignite interest among discerning Chinese travelers and, if Las Vegas is any guide, help Takashi Maekawa | vice president of SEGA SAMMY elevate Macau into a regional entertainment hub. CREATION’s Business Management & Development Department

38 inside asian gaming MAY 2015 Feature Sic Bo Bonus Jackpot

On Sic Bo Bonus Jackpot, the dream of winning big is fueled by the four-level Cai Shen Progressive Jackpot.

gambling, says Takashi Maekawa, vice president of the company’s Business Management & Development Department. “When the new generation of tourists comes to Macau, a lot of them might just walk straight through the casino floor. But our eye-catching machine might prompt them to stop to check it out, maybe give it a try. In that sense I think we’re very different from what’s out there,” he explains. Mr Maekawa adds: “The situation that Macau is facing now is a There are obvious benefits to having a big opportunity for us because we can help operators fill up their floor backer like SEGA SAMMY HOLDINGS. space with something that’s very different, very new, very appealing. And we believe we’re able to help support Macau in maturing its “It gives us access to a strong, overall atmosphere as an entertainment destination.” experienced development team that It was either prescience or luck that, well ahead of the unfolding of Macau’s current predicament, led SEGA SAMMY HOLDINGS to provides considerable help in producing establish a new division in June 2013 with a mandate to produce new games with new technology,” says revolutionary electronic gaming machines imbued with fun and excitement. Leading the charge is Hisao Oguchi, a legendary video Takashi Maekawa. and arcade game developer at SEGA, who, after that company was acquired by Japan’s largest pachinko manufacturer, Sammy Corporation, went on to serve as the chief creative officer of the If all goes to plan, in the very near future, Cotai’s sprawling new new entity. resorts will be full of guests who’ve come for the entertainment, At Mr Oguchi’s disposal are many of the talented game dining, shopping and MICE—meetings, incentives, conferences and developers he worked with at SEGA, who were instructed to throw exhibitions—but aren’t necessarily keen on casinos. out established game concepts and come up with entirely new ones The new casinos, meanwhile, will feature a radically different while incorporating his basic development principles: “Game rules product mix to the prevailing norm in Macau. There’ll be a should be simple. In the simplicity of the games there should be a conspicuous dearth of gaming tables, with the government allocating dream of winning big and also fun and excitement in the anticipation only a fraction of the tables originally expected to each property. of the outcomes.” Machines, including e-tables, will have to fill the gap, and in the At last year’s G2E Asia, SEGA SAMMY CREATION unveiled its first process will rise to prominence. three products, which, beyond their sheer scale, also stood out with Within the machine mix, it would behoove operators to include their elegant looks and high-quality finishes. They’re all also “designed some products of the sort developed by SEGA SAMMY CREATION specifically to appeal to players in Asian or Chinese countries, with in order to get Macau’s new breed of visitor interested in dragons and other such elements,” notes Mr Maekawa.

MAY 2015 inside asian gaming 39 Feature

The selection of female dealers on the around the main unit of each game, though it provides operators the flexibility to scale that up to 100 stations. The stations have large video baccarat game ranges from a girl- screens equipped with handy features that help players follow the next-door type to more exotic, risqué games and intuitively place bets. “These machines are very important for our company, basically to choices, with video images of the models show what we are capable of doing,” stresses Mr Maekawa. “Even if from the wrist up seamlessly combined we go on to make slot machines, we will always make sure they have an entertainment aspect to them. We don’t know how long it will take with a clever computer rendering of their for our products to gain traction in the market, but we’re sure that hands and the cards they’re holding. Macau is going to need these types of machines and I think that time will prove our games successful.” There are obvious benefits to having a backer likeS EGA SAMMY HOLDINGS. “It gives us access to a strong, experienced development On Sic Bo Bonus Jackpot, the dream of winning big is fueled team that provides considerable help in producing new games with by the four-level Cai Shen Progressive Jackpot, which all players are new technology,” says Mr Maekawa. “Also, in terms of sales it helps eligible to win without any side bet necessary. The crowd-pulling because a lot of people are familiar with the games SEGA provided in elements come in the form of dice floating on a cushion of air, along the late ‘80s and ‘90s [through arcades and home consoles worldwide], with massive signage and results displays. so it’s easier for us to actually talk to these people because they’re The selection of female dealers on the video baccarat game ranges usually interested in finding out what kind of products SEGA SAMMY from a girl-next-door type to more exotic, risqué choices, with video is going to provide in the gaming industry. It’s certainly given us a images of the models from the wrist up seamlessly combined with a chance to talk to operators directly. At least it gets our foot in the door.” clever computer rendering of their hands and the cards they’re holding. Another benefit of having such a big, established parent company The game allows the player to place bets on five different tables, and is it offers prospective customers an assurance of quality. “SEGA the main unit has separate screens enabling players to follow the obviously needed to achieve a high standard of quality to become a action on their table of choice, along with their preferred dealers. global leader in amusement, and it’s also a requirement at Sammy The massive big-wheel game consists of three concentric rings because pachinko, like gaming, is a very strictly regulated industry. with numbered positions around which a ball spins. Unlike other So we have that background of ensuring quality. The part that we big-wheel games, it features additional positions that allow the ball were lacking was the knowledge of gaming compliance, so we made to progress to the next ring. Each successive ring features larger sure when we started this business that we had members on our payouts and higher-level progressive awards to build excitement team with knowledge and experience from the gaming industry. So and anticipation. The play is easy. Simply place a wager on a single while we set out to produce machines that look new, very different, number. No side bet is necessary, but larger bets have a greater they’re not just a bunch of crazy machines and operators can feel safe chance of qualifying for higher-level progressives. we make them based on quality and gaming compliance, and the The company recommends placing about 30 betting stations machines have a solid and secure backbone.”

40 inside asian gaming MAY 2015 Feature

SEGA SAMMY CREATION’s pedigree does, however, come with a burden. “We have the challenge of wowing people every time we produce a new game. I think that’s what’s expected from us because of our brand name,” says Mr Maekawa. The company knew it would take time to gain acceptance for its unconventional products. While operators are intrigued by the prospects, there’s a natural aversion to being the first to take the plunge and place a machine on the floor. Fortunately, that long- awaited first installation at a major casino is finally moving ahead in The massive big-wheel game consists of the coming weeks. Mr Maekawa is understandably pleased: “This is going to be a three concentric rings with numbered huge year for us. The goal up to last year was getting product ready positions around which a ball spins. to exhibit. But the goal ever since then has been putting it on the floor. We had the product last year at G2E Asia. Everyone’s seen it, Unlike other big-wheel games, it features but people are questioning how it will perform when it’s on the floor. additional positions that allow the “Now, we’re going to have a machine on the floor. We’re going to benefit hugely from this experience because, for the first time, we’re ball to progress to the next ring. Each actually going to get feedback from the market which is going to help successive ring features larger payouts and us create new and better games.” higher-level progressive awards to build Visit SEGA SAMMY CREATION at G2E Asia Stand #965 excitement and anticipation.

The company recommends placing about 30 betting stations around the main unit of each game, though it provides operators the flexibility to scale that up to 100 stations. The stations have large screens equipped with handy features that help players follow the games and intuitively place bets.

MAY 2015 inside asian gaming 41 Insights The big wins for Sands China are the broadcast events from the property, such as the Showdown at Sands tournament, seen by millions of viewers in China and beyond.

The Best is Yet to Come

n the 1950s and ‘60s, Frank Sinatra and the other members Sands China has been well ahead of of the legendary Rat Pack performed regularly on small stages and at dinner theaters in Las Vegas casino hotels. Tickets to the curve in bringing entertainment the shows, often including a sumptuous multi-course meal, to Macau. Although the company were either given away or priced far below break-even level. IThe casinos bore the cost as a means to draw gamblers. derives tremendous value beyond the As the years went by, the approach to entertainment shifted under ticket sales from staging big-budget new ownership. The Rat Pack era coincided with the height of mafia involvement in Las Vegas, then from the end of the ‘60s the mob was extravaganzas, no event gets the go- driven out and replaced by public corporations intent on ensuring transparency and generating shareholder value. Another factor was ahead unless it’s deemed financially the emergence of destination-scale resorts that drew a new breed of viable on a standalone basis, as visitor in search of a more diverse experience to that offered by the casino hotels of old. Senior Vice President of Marketing By the ‘90s, the concept of entertainment in Las Vegas had been Scott Messinger explains transformed. “Yesterday’s loss leaders have become today’s profit centers,” remarked a 1997 Wall Street Journal article describing the entertainment scene on the Strip. It’s the concept Sands China brought to Macau. So although entertainment spectacles such as this month’s concert at ’s Cotai Arena provide huge marketing value as casino win will be, and say it’s OK if we lose a bit of money on the show well as a revenue boost to the property’s casino and other departments, because we’ll make it up in the casino. But internally we do produce the approval of any such event must begin with an assessment of its models that suggest what we think the impact on gaming will be. More financial viability on a standalone basis. “Because obviously we’re importantly, what we think the ancillary lift will be on the property, a public company,” notes Sands China Senior Vice President of whether it be in terms of hotel sales, F&B and retail.” Marketing Scott Messinger. “We don’t want to actively lose money on Among major non-gaming departments, retail is a standout the event itself. We can’t, for example, say Katy Perry is going to attract for Sands China, with over 650 duty free shops across its Cotai a lot of our casino customers, so we’ll factor in what the increase in properties—including The Shoppes at Four Seasons, ranked the

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MAY 2015 inside asian gaming 43 Insights

highest-grossing mall in the world on a per square foot basis—having the mid-80s in the era of economic reform and the country’s opening become a major profit generator. To some extent, the company has up to the world. They’re westernized, savvy, and beyond gaming been ahead of the market with its entertainment initiatives, and Mr and retail, will be hungry for world-class entertainment and dining Messinger acknowledges it has ploughed resources into “bringing experiences. And that’s what Mr Adelson’s integrated resort model great entertainment here maybe before it became fashionable.” promises to deliver. “It’ll be shopping, great dining, coupled with When the Macau government decided to liberalize the gaming industry and award new casino-operating concessions in 2002, it was primarily with a view to diversifying the local economy. With the current plunge in gaming revenue and concern about receiving adequate table allocations at their upcoming Cotai resorts, it’s become With the current plunge in gaming revenue decidedly fashionable for Macau’s casino operators to emphasize and concern about receiving adequate their commitment to non-gaming offerings. Yet Sands China took that commitment seriously from the outset. “It accelerated obviously table allocations at their upcoming Cotai with the opening of The Venetian Macao in 2007,” says Mr Messinger. resorts, it’s become decidedly fashionable “One of the quotes our chairman, Sheldon Adelson, famously made at the time of the opening was he was finally realizing the dream to help for Macau’s casino operators to emphasize make Macau the capital of entertainment in Asia for Asians.” their commitment to non-gaming offerings. That mission is supported by the rapidly evolving tastes of China’s middle class. Chinese consumption patterns are poised for Yet Sands China took that commitment a dramatic shift with the coming of age of the generation born after seriously from the outset.

International headliners who have graced the stage at the Cotai Arena include , the Rolling Stones and Katy Perry.

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entertainment that makes Macau a true destination for leisure and business travel. Sands China has helped put Macau on the global entertainment map. The 15,000-seat Cotai Arena has been graced by international headliners like Katy Perry, Rihanna, , and The Rolling Stones, as well as Asia’s biggest stars, including “Eason Chan, Hacken Lee, Alan Tam, and all my favorites in the K-pop world like Girls Generation, 2NE1, , Big Bang,” adds Mr Messinger. “One of the things we’re always conscious Pollstar, a trade publication devoted to the worldwide concert about with anything that we put on in industry, publishes an annual ranking of the world’s top 100 arenas based on ticket sales. “Every year for the past four years, our Cotai our arena or our theater is that we want Arena has appeared on the rankings, reaching 68th place last year. It’s to make the ticket pricing or scaling a very rigorous standard so it only includes actual cash ticket sales. affordable. It doesn’t do us any good to So it’s not comps, it’s not giveaways, it’s actually literally tickets sold for cash. We’re the only venue in Asia that is ranked in the Pollstar bring the world’s best entertainment and 100. And we’re literally only 1,000 attendees below a major arena in for it not to be affordable for people to Las Vegas. So it’s kind of proof positive of the kind of programming we’ve put into that venue.” attend it, particularly people within our Of course, Macau still has a way to go before it can lay claim to community.” the title of Asia’s entertainment capital. The effort will be aided by greater critical mass as Macau’s other casino operators get in on the Sands China Senior Vice President of Marketing act. The coming expansion in the supply of high-quality hotel rooms Scott Messinger will also help greatly. “We’re the only property, frankly, with our 9,000 rooms that actually has a significant number of rooms available for sale to casual customers,” says Mr Messinger. “Heretofore, most of the rooms at other properties had been reserved for gamblers. Now you’re going to see more and more rooms on the , which will make it more viable for people to stay over.” Despite the uncertain prognosis for Macau’s gaming sector, for The upcoming Cotai resorts will also elevate the city’s ambience, its entertainment scene, as Frank Sinatra crooned in his last ever creating the appropriate setting for an international entertainment song in public, it’s safe to say “The Best is Yet to Come.” hub. Sands China’s new contribution to the landscape, The Parisian On the eve of Katy Perry taking the stage at the Cotai Arena, Inside Macao, is scheduled to open next year with a half-sized replica to the Asian Gaming spoke with Mr Messinger about Sands China’s expansive exact bolt of the Eifel Tower. entertainment program, and what goes into making it possible.

China Senior Vice President of Marketing Scott Messinger notes, it does, at least, “portray a very intriguing kind of Macau that’s by turns sexy, Bringing Hollywood mysterious, and makes people want to know more.” Las Vegas has long served as a popular backdrop for Hollywood Macau is increasingly featured in major film, productions, with depictions of the Vegas experience ranging from the classic sophistication of both the original 1960 Oceans 11 starring Frank thanks in part to the efforts of Sands China Sinatra and the Rat Pack and the star-studded 2001 remake headed by George Clooney, to the bungling debauchery of The Hangover. Varied depictions of the Macau experience are soon to hit the big One of the less successful installments of the screen, with The Venetian Macao in particular providing the setting for James Bond Franchise, 1974’s The Man With the Golden Gun, sees several productions. Shooting recently wrapped up on the Hong Kong Roger Moore’s Bond coming to Macau in search of the gunsmith movie Return of the Cuckoo and Hollywood’s Now You See Me: The who makes Scaramanga’s bullets. The Macau scenes were actually Second Act. Mr Messinger had a personal role to play in bringing the shot on location, including one at the now defunct Macau Palace latter production to Macau. “On hearing that Now You See Me, which floating casino. was a global hit and performed very, very well in China, was going to do There’s also a floating casino in the Macau depicted in the recent a sequel, I went to Los Angeles and pitched to Lions Gate and Summit Daniel Craig Bond outing, Skyfall, but it’s a hyper-stylized one filled with Pictures the idea of coming to Macau. And it didn’t take a lot of pushing impossibly elegant patrons and exists only on a studio lot. As Sands because more and more the Hollywood studios are looking to do things

46 inside asian gaming MAY 2015 Insights

IAG: What are the differences between booking Western acts and Asian ones? Cantopop legends It varies, obviously. For the Western acts, Eason Chan and Alan Tam you have to wait for the tours to come and Hacken Lee (right) through the region. Because obviously to go after Katy Perry, for example, and say we want you to do a one-off show in Macau K-pop sensations Super Junior and bring that rather elaborate stage setting and Girls Generation (right) and all the equipment, would almost be prohibitively expensive. One of the things we’re always conscious about with anything that we put on in our arena or our theater is that we want to make the ticket pricing or scaling affordable. It doesn’t do us any good to bring the world’s best entertainment and for it not to be affordable for people to attend it, particularly people within our community. We’re always mindful of having affordable ticket prices. So with Western acts the prevailing wisdom is that it has to be part of a tour. It’s very rare that we’ll try to do a one off. We often try to act in concert if we can with our colleagues at Sands China has helped put Macau on the global Marina Bay Sands. So if Katy is coming, we’ll see if we can do it in Singapore as well entertainment map. The 15,000-seat Cotai Arena has been as here, so we’re bidding for multiple shows graced by international headliners as well as Asia’s biggest rather than just one show here, which perhaps give us some leverage. stars, including “Eason Chan, Hacken Lee, Alan Tam, and Because of what we’ve been doing in all my favorites in the K-pop world like Girls Generation, Macau, we get calls to let us know about 2NE1, Super Junior, Big Bang,” adds Senior Vice President tours forming in the region and ask us whether we’re interested in booking a of Marketing Scott Messinger. particular artist that’s passing through.

and ability to handle logistics plays an important part. “I think an advantage that we have in this is our core business model always stemmed from what’s known here in Asia as MICE—meetings, incentives, conferences and exhibitions. Our chairman, Sheldon Adelson, helped transform Las Vegas with the concept of MICE, and that strong MICE infrastructure that we have here, what’s known as The cast of Now You See Me: The Second Act our C&E Department, makes it easy for us to stage obviously large- scale meetings, conventions and exhibitions, and also, if you think about a major movie production being a large-scale production with in China. Lions Gate, which subsequently announced a major deal with several hundred people involved, the moving of heavy equipment Hunan TV for co-production and funding—although we didn’t know around, logistical challenges, cordoning off parts of the property, our that then—didn’t need much of an impetus to have on their resume C&E infrastructure is well suited for doing something like that.” production actively going on in China, in Macau. So it was a natural Sands China is importantly also able to provide accommodation to coming together for us. All the original cast members are in the sequel the cast and crew of movie productions and the various entertainment [including Woody Harrelson, Morgan Freeman and Michael Caine], as events it hosts, including awards ceremonies such as the recent China well as the addition of Taiwanese superstar singer Jay Chou, and Harry Music Awards and Asian Film Festival and its Top Rank boxing matches. Potter himself, Daniel Radcliffe. So it was quite a big event for Macau.” It can also accommodate the hundreds of international reporters who As Mr Messinger points out, Venetian Macao’s infrastructure descend on the city to cover those events.

MAY 2015 inside asian gaming 47 Insights

makes sense against that. You’ll see a range of shows in there that literally go from 4,000 seats up to 13,000 seats. And with the appropriate cost modelling against each of those instances. The same thing takes place in the Venetian Theater as well—shows like the China National Ballet, the Philadelphia Orchestra go into that, and the challenge is there you’re programming a 1,700-seat venue versus a large arena venue. But we have a lot of enquiry after the Venetian Theater because it’s probably one of the most technologically advanced venues in the region, simply because it was built out “The people who head up our box office operation are initially for a rather spectacular show that a strong factor as well. They watch continuously the required a lot of technology. acceleration and the pace of ticket sales, which we look at When you’re deciding whether to book every day to see how we’re doing. That helps us gauge our a show, obviously you need to make a marketing of the events and to know whether to turn on prediction of how many tickets you might be able to sell. How does that work? the tap or turn it down in terms of support.” Over the last four years, the people we have in place have become really good at judging what they think the market might bear for a certain performer. For Four years ago, it was us having to pick up show makes sense. Because there may be the tours coming through the region, the the phone and call people continuously to someone I personally would die and go promoters themselves have a good sense, arrange the acts. to heaven if they came here to perform, and we might know how someone’s done The Asian acts are less tied to specific tours. but I could go into a room with younger previously in the region, in Shanghai, It’s when they’re available, when we think colleagues here and they’d look at me like Beijing, Singapore, Japan, etc. we want a program in the arena. A lot of “huh, who’s that person?” A lot of the Asian acts, they’ve been here them are working through promoters. So And then as the discussions unfold in terms multiple times so we have our history. So it’s a different business model and it’s very of what either the Western or Asian show is we know now how Alan Tam and Hacken successful and it’s a good business model. looking for in terms of price, we then try to Lee do here, even when they’re here either What we do with all entertainment is we’ve determine whether we can scale the arena just the two of them or they’re here as done a lot of research in terms of what our to match the expectation of that price point, part of the Wynners. Grasshopper have customers want to see, both Western and or if we don’t think we can do a full 13,000- been here so many times that I joke with Asian. We also talk extensively through our seat show in there, it’s a 7,000-seat show, them we’re going to rename our arena the internal constituencies here, the different we then have to have a serious discussion Grasshopper Arena. So we have a good business units to see whether or not the as to whether we think the cost model sense of how they all will do. We’ve had

“For our guests and our customers, the premieres can be truly wonderful experiences. And it’s also good for Macau because people are taking selfie photographs and posting and sending them The Venetian Macao hosts premieres for Arnold Schwarzenegger and Sylvester several movies including From Vegas to Stallone attended a VIP screening of back into China, so it’s showing a Macau, when Chow Yun Fat, Nicholas Tse Expendables 3 at The Venetian Macao different Macau experience.” and the entire cast were in attendance. last year.

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the K-pop here multiple times. We have our own track record of how they might perform. We also are mindful of things around us. So, for example, if an act that we really want may have played Hong Kong prior to us, or are going to be going there three months after, it may impact our decision because we’re getting a lot of our audience from Hong Kong and they may not go twice. By turns it’s art, by turns it’s science. It’s fortunate that we have some really good people in those roles. The people who head up our box office operation are a strong factor as well. They watch continuously the acceleration and the pace of ticket sales, which we look at every day to see how we’re doing. That helps us gauge our marketing of the events and to know whether to turn on By the ‘90s, the concept of entertainment in Las Vegas the tap or turn it down in terms of support. Whether it’s through offline advertising, had been transformed. “Yesterday’s loss leaders have online advertising, social, additional PR, etc. become today’s profit centers,” remarked a 1997Wall There are shows that hardly need marketing. Sammi Cheng is a good example. In the Street Journal article describing the entertainment amount of time it takes for me to say we’re scene on the Strip. putting on a show, she’s sold it out. In the time it takes me to say we’re putting on a second show, it’s sold out as well. So there’s very little need to do any form of advertising we’d expect it to pick up again immediately to where something like 94% of all tickets or marketing behind that. I wish every show coming out of that particular season, at were distributed, and the gratifying thing is were that way, obviously. We carefully track which point maybe we’ll goose it up a little 89% of tickets were sold for cash. Three of how things are unfolding and we also look bit with some additional marketing support those performances were mid-week, which at past history to suggest whether I should to reignite the sales. traditionally was a bit of a slower period, be nervous now with the pace of sales. Or We had great success with Cats, which and that gives us confidence now as we I look for causal explanations. For example, was 13 performances over 9 days. And the go into summer with Beauty and the Beast, is there a particular holiday going on at the interesting phenomenon with Cats was which is going to be here for six weeks from moment that’s making people think about the pace of ticket sales actually picked up June 13 to July 26, when there’ll be 18 mid- something else, so they’re not thinking about each day during the run. It had great word week performances of that show. Beauty buying tickets at that moment. In which case of mouth, and it picked up considerably and the Beast is, I think, the most valuable

“Shows like the China National Ballet and the Philadelphia Orchestra go into the Venetian Theater, and the challenge is there you’re programming a 1,700-seat venue versus a large arena venue.

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property in the Disney theatrical canon, The Venetian it was one of the most successful shows on Broadway over a course of 13 years. Macao’s outside Obviously it’s a great family show, and we lagoon hosts regular have great optimism as to how that’s going to do. But nevertheless we keep tracking events popular with how things are unfolding. visiting guests and

Ultimately, you do have to take a chance the local community, when staging events. Which is the case with including the any business. When you transplant successful shows on Carnevale, Winter Broadway to Las Vegas, some of them do in Venice and Cotai very well and some fall on their face. So there are no sure things in this. You do the Jazz and Blues best you can. The thing we keep striving for Festival. is bringing new and diverse entertainment experiences to Macau. Bringing a true Broadway show to Macau was an important addition to our entertainment portfolio, which is why we did Cats. We’re opportunity to see up close and personal experiences. And it’s also good for extending that with Beauty and the Beast. these great stars. Macau because people are taking selfie Our colleagues at Marina Bay Sands have Last year with the seventh anniversary of photographs and posting and sending them been doing Broadway entertainment since The Venetian Macao, we not only had UFC back into China, so it’s showing a different they opened. Shows like the Lion King, in for fight night around the anniversary, Macau experience. Wicked, Beauty and the Beast is there now, but we also did a special VIP screening The big wins for us are the broadcast events so it’s something that we’re adding to our of the Expendables 3 and the red carpet from the property. Whether it be the Top repertoire here in addition to the concerts, and screening was attended by Rhonda Rank boxing, the China Music Awards, Sing the sporting events, the award shows, the Rousey—who was in the movie and was my Song, The Voice of China, not only is it movie filming, the movie premieres. also here with Dana White for the UFC an amazing experience in the arena, but for We’ve been fortunate the last four event—and obviously there was Arnold events like the Showdown at Sands with DreamWorks animation films, like How Schwarzenegger and Sylvester Stallone. Zou Shiming in March, CCTV 5 chose to to Train Your Dragon 2, Turbo, they all did People were lining up for 7 hours before the broadcast it continuously for four hours, their premieres here. As part of fun events red carpet to see Sly and Arnie. as opposed to 90 minutes, and something like the Asia Pacific Film Festival, a year ago And we had the premiere for From Vegas on the order of 400 million people had the Andy Lau debuted Firestorm here. The year to Macau, when Chow Yun Fat, Nicholas opportunity to look at that fight. It offers a before that we had Jackie Chan’s Zodiac Tse, the entire cast walked the red carpet different view of Macau in China. It helps 12. Those premieres are very meaningful. here. For our guests and our customers, the overall mission to expand Macau’s We love being able to give our guests the the premieres can be truly wonderful image as a great leisure destination.

TheDreamWorks Experience at Sands Cotai Central is free for guests and visitors, and includes a daily parade.

MAY 2015 inside asian gaming 51 Feature

Point of Contact

Innovative Technology’s cash handling products already enjoy a leading position in European markets. The company now has its sights set firmly on expansion in Asia.

ash handling products are the and functionality and the ease with which The NV200 flagship bill unsung foot soldiers of the slot they can be installed, used and maintained, revenue wars. Bill acceptors and in these capacities they are vital to the validator, recommended and bill recyclers are critical in performance of their host, which means the for “high volume, high keeping money flowing freely best ones are the ones you never notice. into the games. That, in turn, relies on UK-based Innovative Technology was security” applications, assuringC players the ability to cash out easily established in 1992 with the express purpose specifically addresses the when they want through bill recyclers, ticket of supplying cash handling products that printers and coin hoppers. offer peace of mind to customers in the two major requirements Cash handling products are in most gaming industry. Since then, it has installed of Asia’s varied slot cases the first point of contact between over 3 million of its bill acceptors, bill the player and the game and almost always recyclers, ticket printers and multi-coin operations—from the the last. They are required to perform their hoppers in the field. glitzy megaresorts of respective tasks millions of times a day, Innovative Technology now has Macau and Singapore, to every day, without a problem or hitch. Their distribution partners in 20 countries and value is part and parcel of their reliability offices across five continents, with the the slot halls and border newest, in Brisbane, Australia, dedicated to casinos of Cambodia. serving the Asia Pacific area. Heading up the Asia Pacific region since his appointment in August is sales director Kerry Cowan, who previously worked with key accounts within new product development to improve the slot industry in Cambodia, Macau, the operational efficiencies and minimize Philippines and Vietnam, and also lived in operational costs, while keeping customers Macau for a number of years. secure with products that have 99%+ proven “We supply some of the biggest names acceptance in the field and are able to reject in European gaming and have done so all known frauds.” since the mid ‘90s,” says Mr Cowan, whose Innovative Technology’s core products remit now is to “build and develop our are ideally suited to the needs of the region’s business throughout the important markets diverse markets. of the Asia Pacific region, which offer great The NV200 flagship bill validator, potential for growth.” recommended for “high volume, high Mr Cowan is supported in his task security” applications, specifically addresses by Innovative Technology’s commitment the two major requirements of Asia’s to “consistently invest in innovation and varied slot operations—from the glitzy

Innovative Technology now has distribution partners in 20 countries and offices across five continents, with the newest, in Brisbane, Australia, dedicated to serving the Asia Pacific area. Heading up the Asia Pacific region since his appointment in August is sales director Kerry Cowan.

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megaresorts of Macau and Singapore, to the slot halls and border casinos of Cambodia. “The NV200 definitely fits the bill, offering exceptional note handling, the highest fraud detection rates and the ability to take more cash,” adds Mr Cowan. Following its launch in mid-2008, the NV200 quickly established itself as the default product for many leading manufacturers and operators. Other benefits are “its low cost of ownership, future proof technology, four-way barcode reading and ease of maintenance.” The NV200 can be further enhanced through two add-on modules, SMART Payout and SMART Ticket. SMART Ticket The SMART Payout mixed-denomination is a combined bill validator and ticket bill recycler boasts up to 70-note ‘true’ mixed printer unit. denomination recycling. “This technology offers significant benefits to operators. As it stores all denominations of a given currency it reduces the requirement to refill whilst reducing maintenance time and machines with coins, increasing operational costs” explains Mr Cowan. “Auto-centering uptime by eliminating coin starvation, technology straightens notes before reading, quickly accepting all genuine notes. The unit accepts high-value currency and can store up to 1,000 notes in a lockable removable cashbox, ideal for busy applications.” The SMART Ticket, an add-on module for the NV200, is a combined bill validator and ticket printer unit. “The unit can be used to accept and print tickets and receipts, eliminating the need for separate printers and bill validators—giving added value and flexibility to customers,” says Mr Cowan. The company’s commitment to innovation and expansion has seen a new 1,700 square meter bespoke state-of-the-art head office in the UK, the addition of 2,500 square meters of manufacturing capacity at its factory in Shenzhen, China and three new offices opened in the past 12 months. Innovative Technology’s expansion in Europe entailed setting up its own offices as well as developing a network of leading distributors in key markets, an approach it is now looking to replicate in the Asia- SMART Payout, Pacific region. “Over the last few years an add-on module we’ve grown our client base across Asia- for the NV200, is a Pacific as manufacturers and operators have mixed-denomination been impressed with our ability to bring bill recycler that innovative, secure, cost-reducing products to accepts high-value currency and can market. We’re now looking to expand further store up to 1,000 and intend to follow the same approach here notes in a lockable as in Europe and are currently in discussion removable cashbox with a number of leading distributors,” says Mr Cowan.

MAY 2015 inside asian gaming 53 Gambling and the law

Internet Gambling? No Problems

By Prof. I. Nelson Rose

he casino industry is one of the most heavily regulated businesses in the world. But even if they did not have that government oversight, casino owners would still be among the most careful business operators in the world. The reason is simple: It’s their money that’s at stake. In , parimutuel betting and round (non-banking) games likeT poker, gamblers wager against each other, with the operator taking a piece off the top. Casinos make almost all of their revenue from banking games. Craps in casinos is not street craps: Players are betting against a fund of money, a bank. Casinos act as the house, fading all of the bets of their customers. A cheat at poker steals from other players. A cheat at blackjack steals from the casino. To see how careful the casino industry is compared with something that we would normally think is more important, look at the relatively few malfunctions there have been with slot machines

Street dice is a simplified version of casino craps played without the benefit of a table. Prof. I. Nelson Rose is recognized as one of the world’s leading experts on gambling law and is a consultant and expert witness for governments, the industry and players. His latest books, “Internet Gaming Law” (1st and 2nd editions), “Blackjack and the Law”, “Gaming Law: Cases and Materials” and “Gaming Law in a Nutshell” are available through his website, www.GamblingAndTheLaw.com.

54 inside asian gaming MAY 2015 Gambling and the law

as opposed to voting machines. Yes, there have been some well- publicized problems. But given the hundreds of billions of times buttons have been pushed and handles pulled on gaming devices, the incidents are extremely rare. If the states really wanted to make voting fast, accurate and secure, they should turn the running of elections over to casinos. This doesn’t mean gaming device manufacturers and operators couldn’t be even more careful. In England, where the jackpots are smaller, casinos have to pay off “winners” when there is a malfunction. Not surprisingly, British casinos have even fewer malfunctions. But casinos in the US do seem to care who To see how careful the casino industry is is the legitimate winner more than some election officials seem to. Casinos also face the theoretical risk of losing not just money but compared with something that we would their most valuable asset: their licenses. normally think is more important, look In practice, regulators rarely impose even substantial fines, let alone suspend or revoke licenses. But the threat is always there. at the relatively few malfunctions there The risk of being closed down is even greater when it comes to have been with slot machines as opposed Internet gaming. to voting machines. On 21st February, 2013, Governor Brian Sandoval signed a bill explicitly allowing Nevada to enter agreements with other states to allow cross-border betting. This will permit pooling of players in states where Internet poker is legal. Delaware and Nevada have, in fact, announced that they have come to an agreement to take bets bettor and operator are in the same state, the state has made the bet from each other. It will be interesting to see how they deal with the legal, and verifications are in place: fact that not all operators will be licensed in both states. And the tax “… age and location verification requirements reasonably designed rates are different. to block access to minors and persons located out of such State; and The Nevada bill also included this language: appropriate data security standards to prevent unauthorized access “The Legislature hereby finds and declares that… A by any person whose age and current location has not been verified comprehensive regulatory structure, coupled with strict licensing in accordance with such State’s law or regulations…” standards, will ensure the protection of consumers, including minors Similar language applies to bets made between and among tribal and vulnerable persons, prevent fraud, guard against underage and Internet gaming operations. problem gambling, avoid unauthorized use by persons located in There is no similar language in the UIGEA about other interstate jurisdictions that do not authorize interactive gaming and aid in law or even international Internet gaming. But this did not mean that enforcement efforts.” Congress did not care about age and location verification for non- Politically, it was very important that the first state-licensed tribal, cross-border bets. It simply forgot to put it in. Remember, the Internet gaming operators met those standards. But was it also UIGEA was put together overnight by the Republican leadership of required by law? Congress, without any hearings, or even having been proof-read. The Unlawful Internet Gambling Enforcement Act (“UIGEA”) The UIGEA does require that an Internet wager not violate the expressly allows online wagers to be sent intra-state, but only if the laws of the jurisdictions where the operator is located, that is, where

Changes in the law trail changes in society. So, not only do we have anti-gambling laws that predate the invention of the Internet, we even have some that predate the telephone. And hidden among these ancient statutes are legal landmines.

MAY 2015 inside asian gaming 55 Gambling and the law

the bet is accepted. The Act also requires compliance with the laws where the gambler makes the wager. Every state has restrictions on commercial gambling, and sets minimum ages for legal games. There are complex legal questions whether these often archaic state statutes apply to an Internet operator who is outside the state. And challenges have been filed that laws against gambling do not even apply to poker, which is arguably a contest of skill. But state-licensed online poker rooms and casinos are going to be very careful before they accept wagers from someone outside their state’s borders. Changes in the law trail changes in society. So, not only do we have anti-gambling laws that predate the invention of the Internet, we even have some that predate the telephone. And hidden among these ancient statutes are legal landmines. The laws meant to protect children from No US operator would intentionally register someone who is from a state where Internet gaming is illegal. There are no reported what society regards as morally suspect cases involving anti-gambling laws where someone in the state or industries often do not require a specific country bets with a licensed foreign operator after that operator took steps to avoid taking bets from that state or country. And many intent. In fact, they can be strict liability. anti-gambling laws require a specific intent, like that the operator “knowingly” accepted the bets. But the laws meant to protect children from what society regards as morally suspect industries often do not require a specific intent. In guilty of violating local anti-gambling laws, even if they have done fact, they can be strict liability. everything superhumanly possible to prevent someone from that The best known of these involve serving alcoholic beverages to locale from making a bet. a minor. Even if a bartender does everything reasonably possible to Are the online operators doing enough? There have been verify the patron’s age, the bar owner could end up paying a fine. complaints, both from players in Nevada who could not sign up with In Nevada, a licensed casino can raise the defense that it reasonably Ultimate Poker’s Nevada-licensed Internet poker room, and from thought the minor was of legal age. But, in New Jersey a court upheld a critics who say the geo-location safeguards are inadequate. But there fine imposed on an Atlantic City casino for allowing two minors in the have been even more complaints from players who would like to gambling area, even though the casino was not at fault. bet legally with Nevada’s licensed online operators, but either can’t Internet gaming operators have to be extra-careful about register or get their payments accepted. protecting minors and compulsive gamblers from themselves, The standards will undoubtedly be fixed over time. But, in the real preventing hacking, and making sure that no one can make a bet world, as long as an operator is doing everything possible to keep out from a state or nation where online betting is illegal. There are states minors and bettors from places where online gambling is forbidden, which impose strict liability, meaning an operator is sometimes the most they face is a fairly small fine.

An operator is sometimes guilty of violating local anti-gambling laws, even if they have done everything superhumanly possible to prevent someone from that locale from making a bet.

56 inside asian gaming MAY 2015 MAY 2015 inside asian gaming 57 Feature President Mithripala Sirisena

Fallen Out of Favor

Sri Lanka’s casinos are operating in a decidedly hostile environment under the new administration of President Mithripala Sirisena

igh hopes for Sri Lanka’s casino industry at the end of last year were dashed following the surprise result of the 8th January presidential election, which saw Sri Lanka’s government is moving ahead with the imposition of a US$100 Mahinda Rajapaksa defeated by Mithripala Sirisena, casino entry levy, which, unlike Singapore’s S$100 (US$73) levy, would apply to foreigners as well as locals. who previously had served as Mr Rajapaksa’s health ministerH before quitting abruptly to run against him just two months before the vote. Mr Rajapaksa, who governed the country virtually unopposed planned for the capital of Colombo—a promise he fulfilled immediately for 10 years, supported gaming expansion as a means of boosting after coming to power. The casinos canceled include one slated for the island nation’s economy through increased tourism and foreign a US$400 million resort planned by Australia’s Crown Resorts in the investment. However, the plan was never popular with influential capital’s popular tourist core, prompting Crown to scrap the entire religious leaders of the country’s Buddhist-Sinhalese majority and project. Casinos are also gone from a $300 million resort proposal was criticized heavily both by opposition parties and segments of Mr called Queensbury, backed by local company Vallibel One, which Rajapaksa’s own coalition partners, who feared the industry would owns three of Sri Lanka’s four existing officially sanctioned casinos, undermine traditional values and lead to a variety of social ills. and an $850 million resort called Water Front Properties proposed by Among Mr Sirisena’s campaign promises was the cancellation hospitality giant John Keells Holdings, the country’s largest publicly of the previous administration’s approval of casinos at three resorts traded company.

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The government is now set to deal the industry a further blow, moving ahead with the imposition of a US$100 casino entry levy, which, unlike Singapore’s S$100 (US$73) levy, would apply to foreigners as well as locals. According to a proposed amendment to the country’s Betting and Gaming Levy gazetted at the end of March, “Every person who carried on the business of gaming in Sri Lanka for any year commencing on or after January 1, 2015, shall collect a levy of US$100 or its equivalent in any other convertible foreign currency or in Sri Lanka currency from any person who enters such place of business of gaming.” The bill is now being submitted to parliament, where, given the growing anti-casino consensus, it is almost certain to be approved. The handful of small casinos currently catering to the Colombo tourist trade only gained official recognition at the end of 2010, having operated for years before then as “recreation clubs” under a gray- area arrangement dating back to the British colonial era. The turning point was arguably the decisive end to a bloody 26-year-long civil war The casinos canceled include one slated pitting the government against ethnic Hindu Tamils in the north of the for a US$400 million resort planned by country, in which Mr Rajapaksa was instrumental. That victory gave his government the mandate to pass legislation to formally recognize Australia’s Crown Resorts in the capital’s the industry through the registration of the casinos with the Inland popular tourist core, prompting Crown Revenue Department for tax purposes. Four de facto casino licenses were thus established. to scrap the entire project. Dhammika Perera, by many accounts the country’s richest individual, is the biggest casino operator in Sri Lanka—though casinos account for only about 4% of the revenue of his holding company, Though small in size compared to the super-resorts of Macau Vallibel One. He owns three licensed gaming establishments. Raji and Las Vegas, Sri Lanka’s casinos are pleasantly decorated and well- Wijeratne, Crown Resorts’ intended local partner before it pulled out, maintained and offer service on a par with international standards. owns the remaining license, which he has managed to split across two Indians and Chinese are the main patrons, with Mr Perera claiming venues. All five casinos are located in Colombo, and the biggest, Mr they each contribute about 40% of the revenue at his casinos. He told Perera’s Bally’s, has 80 table games (his Bellagio has 40 and his MGM Inside Asian Gaming that locals are responsible for only about 4%, with Colombo another 40). the remainder generated by other foreigners. China is the leading source of foreign direct investment in Sri Lanka, bankrolling major infrastructure projects such as ports and power plants, not to mention an expressway opened in October 2013 that slashed the driving time from the airport to Colombo from two hours to a mere 30 minutes. China is playing a big part in the island nation’s tourism boom as well. In 2009, when the civil war still had five more months to run, visitor arrivals to Sri Lanka totaled around 438,000. By 2014, they surged to more than 1.5 million. Chinese visitors accounted for 128,166 of that total, up 136% from the previous year. With the continued strong growth in Chinese visitation, the government has targeted 2.5 million arrivals in 2016. Before they were cancelled, Colombo’s three prospective casino ventures seemed poised to capitalize handsomely on the growing Chinese presence in the country. Notably, President Sirisena has also sought to scale back China’s growing influence inS ri Lanka, having suspended the US$1.4 billion Colombo Port City project that India considers a security risk and ordering a review of other China-funded projects and loans amid allegations of corruption. According to Sri Lankan political commentator Victor Ivan, “The former government allowed China a free run in Sri Lanka. President Sirisena wants to maintain a normal relationship that will not irritate India.” President Sirisena has also sought to scale back China’s growing influence in Sri Lanka’s casino industry is no doubt steeling itself for more bad Sri Lanka, having suspended the US$1.4 billion Colombo Port City project that India considered a security risk and ordering a review of other China-funded news. In addition to cancelling the new approvals and imposing an projects and loans amid allegations of corruption. entry levy, the new administration has said it also intends to review the licenses of current operations.

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Showcase of Solutions

t’s showtime once again for the inexorable revenue growth succumbed industry’s leading innovators as Global recently to gravity in dramatic fashion. Yet Gaming Expo Asia , the premier annual Macau’s operators are still pressing on Itrade event serving the region’s gaming with construction of a string of ambitious markets, returns to The Venetian Macao resorts set to join The Venetian Macao on on the 19th to 21st of May. Cotai over the next two years. A lot has changed since the previous The notion that there’s enough pent- session of G2E Asia. The most jarring up demand for to adjustment is being felt by Macau’s keep Macau’s gaming revenue growing once-mighty casino industry, which finds ad infinitum has given way to concerns itself at a crossroads after its seemingly that the upcoming Cotai resorts will

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cannibalize existing properties rather gaming tables than originally expected. than expand the entire revenue pie. It’ll entail a rethink of the configuration of Furthermore, Macau’s operators now Macau’s erstwhile table-centric gaming have cause to fear Asia’s other gaming floors. Electronic gaming machines are jurisdictions, many of which are poised expected to fill the gaps where tables for a significant expansion in capacity. would have been, which in turn will prompt With competition heating up, casino local casinos to devote more resources to buyers at this year’s G2E Asia will be the marketing of slots and e-tables. That’ll especially focused on sourcing products probably send Macau’s EGM sector down and technologies designed to attract players the path to greater revenue and diversity in and drive cost-reducing efficiencies. After terms of product selection. all, in spite of recent financial headwinds, Thus, adversity presents a very real operators are still committed to opening opportunity for the companies exhibiting several new casinos, particularly at their wares at this year’s G2E Asia, where integrated resorts on Cotai and Manila’s more than 30 all-new exhibitors will join the Entertainment City. South Korea is also returning lineup of industry heavyweights building its first IRs, and major casinos will and niche suppliers. open or expand from Cambodia to Russia’s Last year, the show had 160 exhibitors Far East. and drew 8,233 visitors. Expect even Another important consideration for bigger crowds this year, including casino Macau’ operators is the local government’s executives in search of a competitive edge. determination to stick to its table cap, And read on for Inside Asian Gaming’s which means the soon-to-open Cotai preview of some of the hottest new items resorts will likely be allocated far fewer that will be on display.

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and colors. The new colors and effects add to an already extensive selection that form an unrivalled suite of design choices, including a Pursuit unique gold-lace option. In addition to casino currency, GPI’s portfolio includes playing cards and dice, casino furniture, table game layouts and of Perfection accessories—basically, everything you need to conduct a live table game—as well as a powerful and evolving range of RFID solutions. GPI expanded its playing card and table layout production GPI showcases the latest fruits of its ceaseless capabilities through its acquisition of Gemaco Inc. last year. At G2E Asia, it will display Gemaco brand cards and layouts. The cards are efforts to make casino currency safer, stronger, available in three types of paper stock and there’s also a plastic option more functional and better looking in order to meet the varying requirements of operators. And now that GPI has taken over Gemaco’s manufacturing facilities in Asia, it can provide customers in the region a variety of full graphic layouts for their gaming tables. GPI’s innovative spirit is evident in its continuing work in RFID, a technology the company helped pioneer in the gaming space. At this year’s show, GPI will showcase GPI expanded its playing card its exclusive SMART RFID and table layout production technology, the newest capabilities through its acquisition of generation of such technology Gemaco Inc. last year. Gemaco cards for casino currency. When used are available in three types of paper with its Chip Inventory System stock and there’s also a plastic option. software, SMART delivers a complete currency tracking and authentication solution. The company’s original innovators were the eponymous B&G, The newV-Series chips are made with a completely new injection material lithographer Etienne Bourgogne and engineer Claudius Grasset, who, formula which the company claims makes them much more durable. working from Beaune, the wine capital of Burgundy in eastern France, became the first people to master the art of plastic film printing in the 1920s then sought to pioneer the use of plastics for use in everyday items such as brooches, hair slides and plastic playing cards. aming Partners International arrives at this year’s G2E One day in 1925, Mr Grasset read in French newspaper Le Figaro that Asia with new additions to its flagship Bourgogne et Grasset a gambler had broken the bank in Monte Carlo to the tune of 600,000 (B&G) brand of casino currency and an expanded portfolio francs using counterfeit chips made of solid ivory and mother of pearl. ofG table game products. The partners saw an opportunity to use their specialized knowledge GPI, the world’s leading designer and producer of chips, plaques and technical skills to address the counterfeiting problem and got to and jetons, has developed a new line of plastic injection molded chips work on producing a new generation of plaques that would be almost under its B&G brand—the preferred brand of Asia’s major casinos, impossible to duplicate. They sent some samples to the general praised for its durability, security and beauty. The new V-Series chips manager of Casino de Monte-Carlo, whose reply came in the form of a are made with a completely new injection material formula which the chip order, and B&G was born. company claims makes them much more durable. The material also Nasdaq-listed GPI was created in 2002 with the merger of three incorporates ChipShield, an anti-fungal that inhibits the growth of of the world’s leading casino currency suppliers: B&G, then still mold and mildew, keeping the chips cleaner for longer and offering located in Beaune, along with two US-based companies, Paul-Son a more sanitary chip surface—an important feature in light of the Gaming Supplies and The Bud Jones Company. While GPI maintains intensive handling of chips by dealers and players. facilities in rustic Beaune, it is headquartered in Las Vegas with an The V-Series chips are designed to offer a whole new range of additional office in Macau, where feedback is gathered assiduously to versatile edge spot patterns that can be created with a choice of two drive the unrelenting product development necessary to stay ahead different sizes of decal. For customers who order the V-Series with of not only the competition, but also, importantly, would-be casino- four or more color shots, the chips come standard with an infra-red currency counterfeiters. security feature exclusive to GPI. The design options for B&G European-style plaques has also expanded with the addition of new mother-of-pearl décor effects Visit GPI at Stand #365

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Home-Field Advantage

Weike is confident of its ability to grow market share at Asia’s upcoming integrated resorts. In support of that mission the company has released a strong lineup of new jackpot links and standalone games designed for regional appeal

he battle for floor share at a slew of soon-to-open major casinos around the region—particularly at Macau’s TCotai resort district and the emerging Entertainment City cluster in Manila—will pit the post-consolidation colossuses of the EGM world against a handful of small but aggressive home-grown suppliers. Singapore-based Weike Gaming Technology has in recent years emerged as one of the standout niche Asian games- makers. “Bigger is not necessarily better,” as Weike COO Ray Poh puts it. “Now they’re becoming even bigger and the competition is growing stronger but we know that we will be able to fight toe to toe with them. It’s definitely a lot easier for us to increase our market share than for them to maintain their market share. So we’re definitely in a Weike has been rolling out an increasingly rich palette of games position to grow.” built around solid maths and world-class graphics. The Weike booth at G2E Asia will feature new developments in jackpot links and Asian-themed standalone games. Also on a 4X5 reel layout and an entry level of 60 including Wu Song, a new 2x10 50-line display will be the company’s electronic credits to play all reels. offering configurable for up to a 1000-credit table game portfolio. “Visitors to our booth Victory is an integrated four-level max bet. An enhanced free games feature will see that Weike is committed to serving progressive jackpot link that was introduced on Wu Song offers players line wins in both the needs of the Asia-Pacific market,” says last year together with the 50-line games directions: left to right and right to left. VP of Product Marketing Peter Kup-Ferroth. Fortune Meow and Legendary Archer. This Then there’s the Peranakan heritage-themed Customers in the region will get their year, Fu Wa!, the auspicious frog who brings Graceful Fortune, a 50-line game with a first look at the new four-level progressive wealth, joins the Victory ranks. “The rapid unique re-spin rewards feature. jackpot, Ultimate Treasure. The product’s development and rise of the gaming industry Chinese themes on display will include Chinese name, Jin Yin Cai Bao, translates in Asia are the push factors for us. We will Dou Di Zhu Gold, Warrior Mulan and the literally as “gold, silver, wealth and gems,” continue to put additional resources and new Flaming Mountain, a 50-line standalone all potent symbols of prosperity in Chinese create new exciting developments specific to featuring a multiplier that pays up to 5 times culture, in a phrase that can also be the Asian market according to the approved on a free games win and rewards players with understood to mean “abundance of wealth standards,” states Mr Kup-Ferroth. more free games when maximum lines are and treasure.” Super 8 is the introductory One of the highlights of Weike’s exhibit played. Dragon Gift, another new addition game on the link; a 1024 Ultiways game with will be its collection of standalone games, to Weike’s innovative Ultiways series, is rich

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Ultimate Treasures’ Chinese name, Jin Yin Cai Bao, translates literally as “gold, silver, wealth and gems,” all potent symbols of prosperity in Chinese culture, in a phrase that can also be understood to mean “abundance of wealth and treasure.”

the quality products, it is also our duty to provide solutions and keep our products up to the current standards. In today’s market place where so many gaming products are viewed as a commodity, the ability to add value to our products is an absolute necessity. We strongly believe as an Asian gaming manufacturer, that as the Asian gaming industry continues to grow, Weike’s regional focus will continue to provide strong service levels for operators” says Mr Kup Ferroth. In addition to the new slot games, Weike will be showcasing its comprehensive e-table series. Market-proven Infinity Roulette has been approved as complying with Macau’s latest EGM standards, set by the city’s gaming regulator, the DICJ. It’s a highly is a 50-line standalone offering Wu Song flexible and customizable platform that configurable for up to a 1000-credit max bet. supports live video streaming of the roulette wheel and can be configured for up to 128 terminals served by a single wheel. with symbols but in a more volatile package. Infinity Baccarat, known for its innovative The Dragon King feature offers players a “card-squeezing” technology, integrates chance to multiply wins by up to five times high-definition video of a dealer to simulate during the free games feature. live play. Thai kickboxers bring on the action in Weike’s Multi-player Electronic Table Muay Thai, a feature-rich 30- or 50-line game Game (METG) is a strong performer in that introduces a new winning-streak feature Vietnam, where Weike controls an estimated when stacked Muay Thai symbols appear 60% of the e-table market. The METG can on the fifth reel during game play. All wins be configured either as a fully automated containing the Muay Thai symbol in the free or partially automated (i.e. dealer-assisted) games feature are multiplied six times. The game. Game choices include Baccarat, Grand Voyage is an alternative theme that Baccarat Super Pair, Baccarat Insurance and employs this distinct feature. Black Jack. The Peranakan heritage-themed is “The rules and regulations of the gaming “We are investing for the future and we Graceful Fortune a 50-line game with a unique re-spin rewards feature. industry will never stop changing. On top of always have the customers in focus. It is

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Weike’s Multi-player Electronic Table Game (METG) is a strong performer in Vietnam, where Weike controls an estimated 60% of the e-table market. The METG can be configured either as a fully automated or partially automated (i.e. dealer-assisted) table game.

Infinity Baccarat, known for its so installations in Marina Bay Sands and terms of maneuvering around the market Resorts World Sentosa. we’re probably more nimble,” he says. “Our innovative “card-squeezing” The word spread quickly to Macau and entire team is in Asia so we don’t have to technology, integrates high- the Philippines, where the high-volatility fly people in from Europe or America. We’re definition video of a dealer to 50-line standalones that were making the all based within the region. It takes us company’s name in Singapore quickly maximum about four to five hours to get to simulate live play. found a niche, led by Qin Shi Huang, which any location that we need to be.” packs a compelling gamble in the form of The company is also nimble in a multiplier that progressively increases responding to evolving market needs. important to have a long term perspective and during the feature and has been a stalwart “Something like a new regulation: perhaps always make sure we give the best combination performer in Macau and is still the most for the big suppliers, the international of product requirements and value for money popular game for Weike in the Philippines guys, they have to go through a corporate in every market,” says Mr Poh. six years after its release. chain before they can get an answer,” Mr Weike started supplying slots and Mr Poh believes Weike has a geographical Poh contends. “And they have other markets e-tables in the late ’90s, when the company edge over the big international suppliers. “In to consider, and then whether the decision branched out from club operations, they’re making is actually for the good; it principally in Malaysia, into game may not be, because their other markets development, largely because it felt the Infinity Roulette are bigger than Asia. For us, Asia is our big international manufacturers weren’t market. Asia is the biggest market for us. So adequately customizing games for Asian concentrating on Asia itself, it’s very easy for players. us to make sure we handle all the regulatory Weike also got serious about building changes, and make sure our guys that its talent base, notably with the addition create the products visit Asia and they’re in of Andrew Masen, among others. A one- tune with the psyche of the customers that time game design manager for Australia’s are here.” Stargames, Mr Masen joined in 2008, and Beyond slots and e-tables, Weike as vice president of Game Design and continues to grow its systems business. Development has nurtured the growth WeSystems has expanded into more than 100 of an R&D team that now numbers more properties across Singapore, Malaysia, than 50. Vietnam and Cambodia by specializing in a The company has been rolling out highly modular and affordable technology an increasingly rich palette of games targeting the club and small-casino market. built around solid maths and world- In Macau it currently connects around 600 class graphics ever since. Today, it enjoys EGMs in four casinos. around a 20% share of Singapore’s vibrant club market and has another 100 or Visit Weike at Stand #1231

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Asserting Dominance

With a lineup of new products sure to resonate with Asian players, Aristocrat reaffirms its position as Asia’s dominant slot-maker

With the attention-grabbing game theme and packaging of Super Wheel Blast, Aristocrat aims to create a

Fortune Tree “visual destination” on the gaming floor.

he competition’s heating up across At this year’s G2E Asia, Aristocrat joins a rich lineage of Hyperlink themes, all Asia’s slot markets, with floor share will showcase its four key market-leading of which are strong performers. Tup for grabs in a slew of casinos portfolio segments, representing the Like the rest of the Hyperlink product set to open over the next couple of years, breadth, with depth in the form of game line, “Fortune Tree maintains jackpot including several major integrated resorts titles providing the content support to flexibility, allowing our customers to in Macau and the Philippines. Aristocrat has each segment. cultivate their own jackpotting strategies,” achieved the leading region-wide floor Aristocrat credits “successful customer explains Aristocrat. The Fortune Tree share until now by providing the most partnership and dialogue” with shaping theme revolves around the luck, wealth relevant products to local players, and it the development of some of its best and prosperity of Chinese New Year, intends to hold onto that lead through performing products, including FA FA FA, embracing the idea that red packets deliver continuous innovation underpinned 5 Dragons Gold, 5 Dragons Deluxe and 50 prosperity. During the Hyperlink feature by its mantra of “content depth” and Dragons Deluxe. Its latest customer-driven on Fortune Tree, a cumquat tree reveals “portfolio breadth.” development, the Fortune Tree Hyperlink, red packets which the player selects to

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award one of four Jackpot levels. Fortune The three game themes, designed to be Tree will be launched at G2E Asia with banked together, also each have a feature three of Aristocrat’s most popular titles as unique to their destination. base games: 5 Dragons Deluxe, 50 Dragons Aristocrat is famous for producing Deluxe and Fortune King Deluxe. gambling-style games that resonate with The GOOD FORTUNE Link, launched Asian players. While retaining its focus on last year with two titles—5 Dragons and that core content, Aristocrat is now also Dragons of the Eastern Ocean—has gone building entertainment-style games tailored on to become one of Aristocrat’s standout for the region’s markets. Development of products across the region. This year will see the company’s global entertainment-style the release of two more GOOD FORTUNE game portfolio, called E*Series, is led by Link titles: Pure Diamonds, which represents the creative mind of industry legend Dan a new Luxury Jewelry theme, and Lucky Marks. E*Series games, in Aristocrat’s Festival, featuring an innovative math model words, “are designed to increase player layered with a Chinese New Year theme. engagement and entertainment on Aristocrat’s games are given vivid casino floors through enhanced graphics, expression on its new Helix cabinet. Helix animation and sound, plus stand-out win comes in three stylish models, Upright, Slant celebrations that really drive excitement.” and Slant Super Screen, and players will At G2E Asia, E*Series will be on show with instantly respond to the comfort that’s built two new Asian-themed product families into it, the culmination of some industry- spanning five titles including Magic Flower leading ergonomic research. Helix’s souped- and 3 Emperors. up processors power a dual 16:9 LED back- Also on display will be the Player’s lit interface. Both screens are a spacious 23 Choice multi-game range, enabling players inches across (or better yet, sample the 32- to choose between several games on a single inch optional Super Screen) and fully HD at cabinet. Player’s Choice, claims Aristocrat, a dazzling 1,080 pixels. is “perfect for bringing maximum choice to With the attention-grabbing game players in space-constrained venues.” theme and packaging of Super Wheel Another product promising flexibility Blast, Aristocrat aims to create a “visual for customers is Aristocrat On Demand, destination” on the gaming floor. Super a downloadable tool which will be Wheel Blast comes with three support demonstrated at the show. Aristocrat titles, each taking players on a journey On Demand gives customers the power to a different international destination: to manage content delivery and/or New York, Venice and Hong Kong. The configurations across their floor at the click engaging top-box wheel feature calls on of a button. Magic Flower, one of Aristocrat’s new players to spin the wheel to win free games, E*Series entertainment-style games multipliers, jackpots and extra wild spins. Visit Aristocrat at Stand #527

What’s Your Next Move?

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Igniting Expansion

NOVOMATIC will bring to Asia a range of its latest international products and solutions with clear potential to fuel the company’s accelerating growth across the region’s markets

t a time when electronic table games are making huge strides in popularity at Asia’s major gaming venues, from Macau’sA megaresorts to the border casinos of Indochina, NOVOMATIC’s state-of-the-art high-quality multiplayer products are certain to generate considerable interest at this year’s G2E Asia. Online live dealer specialist Extreme Live Taking center stage at the NOVOMATIC Gaming will present its own unique approach to stand will be a comprehensive presentation the Live Dealer Studio Experience for online of NOVO LINE Novo Unity II with multi- casino gaming. game functionality comprising the dealer- operated NovoTouchBet Live-Baccarat, the fully automated Novo Multi-Roulette and a place. We always look forward to the G2E broad choice of fully animated electronic live Asia show and this year we will demonstrate game versions of blackjack, baccarat, sic bo, that NOVOMATIC is ready and able to move poker and roulette. ahead across a wide range of Asian markets.” The DOMINATOR Curve cabinet, which As Europe’s leading gaming equipment made its worldwide debut in February at ICE manufacturer, Austrian Gaming Industries Totally Gaming in London and was one of delivers one of the broadest product ranges the highlights of that show, will be presented in the industry and offers considerable for the first time in Asia. The DOMINATOR support on the development side to the Curve represents much more than just an NOVOMATIC product line. evolution of the original DOMINATOR, says Unlike other manufacturers, NOVOMATIC. With its careful attention NOVOMATIC also operates around 232,000 to ergonomic and design features, plus gaming machines in over 1,500 traditional its 40-inch full HD curved touchscreen, and electronic casinos as well as via rental The DOMINATOR Curve cabinet it represents an entirely new dimension concepts. Its rich operational insights find in the company’s product portfolio and promises to be an attention grabber on even the most crowded of gaming floors. At a time when electronic Also on display at the NOVOMATIC table games are making stand will be the online live dealer specialist Extreme Live Gaming presenting its own huge strides in popularity at unique approach to the Live Dealer Studio Asia’s major gaming venues, Experience for gaming. Max Lindenberg, director of marketing from Macau’s megaresorts for NOVOMATIC’s wholly owned Austrian to the border casinos of Gaming Industries subsidiary, commented: Indochina, NOVOMATIC’s “Together with our partners in the region we have already made our presence felt right state-of-the-art high- across Asia and now NOVOMATIC stands quality multiplayer products poised to go even further thanks to the are certain to generate excellence of its products and the local on- site service capability that we have put in considerable interest.

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it uniquely positioned to grow with Asia’s existing and emerging markets. It holds a strong position in land-based Stronger Together casinos in Germany, Switzerland and the Czech Republic and runs one of the premier gaming resorts in South Scientific Games arrives at this year’s show with a range of America, the Monticello Grand Casino and Entertainment World in Chile. product and system solutions unmatched in the industry for NOVOMATIC will be exhibiting at its breadth and sophistication G2E Asia with its long-time partner in the region, Jade Gaming, whose distribution reach and knowledge of the region’s cultural nuances and player preferences has proven invaluable. Da Fu Da Gui, which means “big riches, big honors,” Visit NOVOMATIC at Stand #1209 is the follow-up to the hugely successful Duo Fu Duo Cai and is sure to generate customer interest at the show.

wo years ago, the Bally, Shuffle slot maker WMS Industries for US$1.5 Master and WMS brands were billion in a deal that closed October 2013. separate entities. Now they’re united Scientific Games then went on to stun underT a common parent, Scientific Games, the industry last year by purchasing Bally which will exhibit at G2E Asia with a selection Technologies for US$5.1 billion, shortly of more than 80 innovative products across after Bally had itself expanded beyond its its recently expanded portfolio. slots and systems business with the US$1.3 Scientific Games was established in billion buyout of SHFL entertainment 1973 as a supplier to the industry. (formerly known as Shuffle Master until Nearly four decades on, the company the 2012 name change), provider of an The original DOMINATOR cabinet. branched out by acquiring Chicago-based array of products for casinos: proprietary

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is a great opportunity to showcase a range electronically and an unlimited number of of product categories, along with premium remote betting terminals. content including Da Fu Da Gui—the Asian- The Tablemaster Fusion platform is themed 4-level progressive link that is the an e-table innovation that recreates the continuation of the successful Duo Fu Duo experience of live table gaming on a fully Cai phenomenon. Our team is excited to electronic platform. It features a 72-inch present our products which are designed to high-definition LCD with attractive virtual entertain and perform like no other.” dealers, widescreen player terminals with Da Fu Da Gui, which means “big riches, big honors,” is the follow-up to the hugely successful Duo Fu Duo Cai and is sure to Super 88 Fortunes on the generate customer interest at the show. With its dedicated Asian content and math Wave and Equinox cabinets is model, Da Fu Da Gui offer players the a strong addition to slot floors, anticipation of big wins with its Double believes Scientific Games. Luck Jackpot feature. When players reveal three Double Luck coins during the jackpot This standalone version of the feature, they win the current jackpot proven performer 88 Fortunes amount, plus the startup amount of the winning jackpot level. The Da Fu Da Gui promises to entertain players link launches with Rich Traditions and Jade with a new 5x4 reel array, 1024 Eternity on the Pro Wave cabinet. Also highlighted on the award-winning ways to win and Super Stacks. Pro Wave will be Fine Diamonds and Striking Stars—two titles on a progressive link called Jackpot Vault—and the Action Bank titles Triple Blazing 7s On the Double and Black Gold On the Double. These games introduce the Action Bank feature that awards one of four bonuses, including a pick’em feature with five progressive jackpots. Super 88 Fortunes on the Wave and Equinox cabinets is a strong addition to slot floors, believes Scientific Games. This standalone version of the proven performer 88 Fortunes promises to entertain players With the superior graphics with a new 5x4 reel array, 1024 ways to win and heightened player and Super Stacks. For its Equinox cabinet, Scientific engagement enabled by Games will unveil Flower of Riches, the latest the powerful CPU-NXT3 addition to the Duo Fu Duo Cai four-level link family. The Equinox cabinet will also operating platform, the WMS feature Diamond Eternity VIP, a standalone Blade cabinet currently progressive jackpot game that joins 88 stands among the industry’s Fortunes VIP and 5 Treasures VIP. This theme features dedicated jackpots and higher strongest performers. denominations suited to players in VIP gaming rooms. Scientific Games will showcase Shuffle table games such as Caribbean Stud Master table-game products designed to Poker and Three Card Poker; table-game engage players and deliver strong returns utility products, including automated card for operators. Prominently featured shufflers, chip sorters and intelligent table products will include several electronic system modules; and a wide assortment of table innovations such as Tablemaster slots and electronic table games. Fusion and i-Table Roulette, which According to Ken Jolly, Vice President combine the excitement of traditional of Scientific Games Asia, “G2E Asia 2015 roulette with all bets and pays made

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card reading shoe into one device to increase Asia exhibit, the company says it intends game speed and improve security on to demonstrate its ability to leverage baccarat tables, will be under the spotlight proven product brands and cutting-edge in the Utilities segment. Also on display technology solutions to help customers will be the next-generation i-Deal Plus with grow their business. improved card reading and reliability, a front- mounted display, onboard printer and safety Visit Scientific Games at Stand #473 card option; the one2six Plus continuous shuffler for multi-deck games; the Chip Star roulette chip sorter; and, the i-Score Plus baccarat viewer. Another highlight at the Scientific Games stand will be the Bally-branded Tournaments Express, a standalone tournament system designed to offer slot tournaments on more than 100 different cabinet types from various manufacturers. Tournaments Express allows operators to easily and quickly convert revenue-producing games to tournament games and back again. Then there’s the acclaimed Elite Bonusing Suite, which, when combined with iVIEW Display Manger, enables player- centric bonusing events with applications like U-Spin Bonusing, DM Tournaments and Virtual Racing. As for WMS-brand products, highlights will include the Life of Luxury Progressive multi-game. Bringing back a classic WMS game in multi-game format, Life of Luxury Progressive features five games that combine classic, current and new WMS content. One Life of Luxury symbol on the final reel awards the Life of Luxury Bonus. In this bonus, each reel is assigned to a GEM symbol that allows players to pick Flower of Riches is the latest for a chance at the progressive when the symbol appears on the reels. Additionally, addition to the Duo Fu Duo Cai each game within the set has its own unique four-level link family. Free Spin Bonus triggered by three or more Bonus symbols. Furthermore, the next-generation touchscreen betting, enhanced graphics, and upright WMS Blade cabinet will also take multiple side bets. At G2E Asia, Tablemaster pride of place at the Scientific Games stand, Fusion will feature the Chinese version demonstrating the company’s focus on of Ultimate Texas Hold’em with a Mandarin- providing a full range of gaming solutions speaking dealer. that deliver value to casino operators. With Fortune 7 Baccarat will head a lineup of the superior graphics and heightened player proprietary table games including Free Bet engagement enabled by the powerful CPU- Blackjack with the Blazing 7s Progressive NXT3 operating platform, the Blade currently and Pot of Gold side bet, Ultimate Texas stands among the industry’s strongest Hold’em, DJ Wild Poker and Three Card performers. Poker. Fortune 7 Baccarat is a commission- The combined post-merger talent free baccarat game featuring two optional pool at Scientific Games stands ready to Striking Stars is one of two side bets: Fortune 7 and One Up. create and support a rich pipeline of new titles on a progressinve link The Safe-Bacc system, a revolutionary products under its tried-and-trusted casino new product that combines a shuffler and gaming brands. Through its extensive G2E called Jackpot Vault.

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It’s one thing to create a Off to the Races machine that stays true to the spirt of a traditional table game, quite another to make one Alfastreet continues pushing the envelope conceptually and that does a good enough job of technologically with its eye-catching e-tables capturing the essence of a day at the track to get gamblers to part with their precious time lfasreet’s Royal Derby promises It’s one thing to create a machine that and money. As such, developing to be one of the more exciting new stays true to the spirt of a traditional table releases at this year’s G2E Asia. The game, quite another to make one that does Royal Derby presented mechanicalA horse racing game was launched a good enough job of capturing the essence Alfastreet a worthy challenge. officially this year and has been performing of a day at the track to get gamblers to part strongly at the venues it has already been with their precious time and money. As installed at, claims Alfastreet Sales Director such, developing Royal Derby presented Albert Radman, who has high hopes for the Alfastreet a worthy challenge, one that it furniture factory of the Počkaj family in product in Asia. met in characteristic fashion with “unique Rodik, Slovenia, to become a global leader Although several other manufacturers design and innovative solutions,” according in multi-terminal gaming machines by have failed in their attempts to develop to Mr Radman, who adds demand for the virtue of an unflagging spirit of innovation simulated horse racing games for casinos, they new game is already so great that it exceeds and commitment to Old World standards weren’t Alfastreet, the company credited with manufacturing capacity, requiring the company of engineering, craftsmanship and having played the biggest role in establishing to happily scale up its production line. service. The company’s flagship multiplayer electronic roulette as we know it today. Alfastreet emerged in 1994 from the platform, the eight-station R8, is the

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The newWIKY terminal enables players to bet on up to four games Sales Director Albert Radman simultaneously on the same screen.

embodiment of these traits: elegant, the past few years. Whereas Alfastreet’s a product that allows them to bet on four durable, immensely scalable—it strikes previous roulette products had all been fully tables at once on one terminal seems to be a that balance between technological flair and automated, the SL was its first offering to sure hit,” Mr Radman says. adherence to the “spirit of the game” allow semi-automated play with a live dealer Alfastreet offers a rich selection of games which for Alfastreet represents the apex of spinning the ball but all bets and payouts for the SL and WIKY terminals. In addition achievement. made through electronic terminals. to roulette and baccarat, there are e-versions Although the R8 receives regular The successor to the SL is the WIKY, of sic bo and craps, as well as an array of enhancements, it has retained its distinctive which features a crisp 32-inch display—a lot proprietary games that include Royal Derby and now classic shape, with players at bigger than the SL’s 23-inch screen, though and Alfastreet Wheel of Fortune. fixed terminals sitting in a square around both terminals occupy the same footprint Finally, for the roulette purists, Alfastreet the wheel. That’s apparently the preferred on the floor. Furthermore, while the SL was last year released a scaled-down version configuration for the bulk of players around the first e-table terminal to incorporate the of the R8, the four-seat R4, providing the the world, including those in Indochina unique feature of allowing players to bet same quality and performance at a size and (Cambodia, Vietnam and Laos). on two games simultaneously on the same price more amenable to smaller operations, In other Asian markets, including screen, WIKY sees Alfastreet raise the bar yet a strong selling point in Asia’s vibrant Singapore, Malaysia and the Philippines, again, enabling bets on up to four games. medium-tier casino and club markets. players prefer single terminals, and the “Baccarat players in particular always like versatile SL has fit the bill perfectly over to play several tables at once. Providing them Visit Alfastreet at Stand #717

Alfastreet has become a global leader in multi-terminal gaming machines by virtue of an unflagging spirit of innovation and commitment to Old World standards of engineering, The classicR8 has a distinctive shape, with players sitting at fixed terminals in a square craftsmanship and around the wheel. service.

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Melco Crown’s original property, of course, is located in Macau, Gaining Ground so with the installation at CoD Manila, chances are good that DLV could finally gain a coveted foothold in Asia’s premier DLV plans to take Asian markets by storm with a new cabinet gaming jurisdiction. DLV prides itself on its culture of and multigame package—welcome additions to a portfolio of innovation and the competitive pricing and versatile, reliable and cost-effective products that are proving technical robustness of its products, as well increasingly popular in the region as its speed and flexibility in responding to clients’ needs. The company has come a long way since it was established 20 years ago. Its internationally certified machines are now purchased in 33 countries in Europe, oasting dual 27-inch screens, Asia and South America. DIAMOND EXCEL, DLV’s latest cabinet, offers a decidedly enhanced vehicleB for delivering its popular games Visit DLV at Stand# 1039 packages. The new cabinet also incorporates the company’s extensive observations and experience in the field in a bid to maximize Diamond Games player comfort and engagement. Premium VIII on the At G2E Asia 2015, Latvia-based DLV HD cabinet will also showcase a new multi-game package, Diamond Ultra 2, the sequel to the 25-game Diamond Ultra, sporting new titles such as Alchemy’s Elements, Silver Hauberk, Mushroom Fable, Neanderthida and Winch & Wheels. In addition to the new releases, a selection of tried-and-tested cabinets and games will be on display at the DLV stand. Existing cabinets in the company’s distinctive The all-newDIAMOND EXCEL cabinet Diamond range include the DWS with dual 22-inch screens and the HD, which comes in both upright and slant-top configurations with a 24-inch display. Representing DLV’s to go head to head with major international varied multigame range will be the Diamond manufacturers and operators in its domestic Games Premium series, now in its eighth market, DLV has learned how to adapt its installment, and Vollinstars, a baseball- products to evolving market conditions. themed four-level mystery progressive The company made its maiden foray into jackpot. Asia in early 2010 with the first of several In an exciting departure from its usual installations in Cambodia, then expanded offerings, DLV will also demonstrate its into the Philippines, where it recently placed online solution, DLVBET, to customers in machines at Melco Crown Entertainment the region. Launched last year in Latvia, Ltd’s new resort, City of Dreams Manila. the DLVBET website currently offers bets on sports and political events 24/7. The company says it intends to add online DLV prides itself on its versions of its slot games to the platform, and relishes the prospect of thereby reaching culture of innovation and an expanded audience. the competitive pricing and DLV has good insight into what players are looking for. In addition to manufacturing technical robustness of its slot machines, it runs 50 slot halls in its products, as well as its speed home country. The bulk of gaming revenue in and flexibility in responding to Latvia is generated by slot clubs operating in a highly competitive environment. By having clients’ needs.

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Floor Filler

LT Game’s Live Table Multi-Gaming System stands to become a dominant presence at the new wave of resorts set to open in Macau’s Cotai district. Meanwhile, its full portfolio offers all the products necessary to operate a chipless casino

traditional table on the main floor. System terminals, enabling players to place At this year’s G2E Asia, LT Game will bets on them from elsewhere on the floor. showcase an all-new terminal for the Beyond G2E Asia, a full range of LT Live Table Multi-Gaming System, dubbed Game’s products can also be viewed at the Premier Machine. There’s also a new game Casino Macau Jockey Club, which serves as for the system, LT Power Tournament, which a virtual showroom for them. The Casino The newPremier Machine terminal for the promises to further enhance its appeal. Also MJC embodies the concept of a chipless Live Table Multi-Gaming System on display will be a new electronic table casino, where players bet electronically on game, LT Power Dragon. E-Baccarat Tables and Live Table Multi- Another highlight product at the LT Gaming System terminals, buying-in through Game stand, the E-Baccarat Table, takes the built-in bill acceptors with either cash or major current concern for Macau’s form of a traditional baccarat table with a live tickets. Completing the chipless concept is casino operators is the likelihood dealer, seating 5 to 10 players who place bets LT’s Intelligent Cash Access kiosk, which they’ll receive a much smaller electronically on touchscreen interfaces. converts tickets to cash and, unlike other Aallocation of gaming tables than originally While bringing the efficiencies of electronic kiosk products on the market, goes a step excepted at their soon-to-open Cotai resorts. betting, the E-Baccarat table preserves the further by allowing players to convert stacks LT Game’s market-leading Live Table Multi- personal and tactile elements of the game of cash into tickets. Intelligent Cash Access Gaming System, already a major presence at that are so important to Asian gamblers. will also be on display at G2E Asia. Macau casinos, offers an obvious solution Furthermore, E-Baccarat Tables can also for filling the gaps on Cotai’s upcoming be linked up to LT’s Live Table Multi-Game Visit LT Game at Stand #909 gaming floors. Whereas a traditional baccarat table offers just eight betting positions, with LT’s Live Table Multi-Gaming System, a live dealer at a single TheE-Baccarat Table takes the form of a traditional baccarat table can serve hundreds of players placing table with a live dealer, seating 5 to 10 players who place bets electronically on touchscreen interfaces. While bringing the bets on electronic terminals. The system also efficiencies of electronic betting, theE-Baccarat table preserves greatly speeds the process by automating the the personal and tactile elements of the game that are so collection of bets and payment of winnings— important to Asian gamblers. LT says it enables up to three times more hands per hour to be dealt. In addition to baccarat, LT’s Live Table Multi-Gaming System supports a variety of games including sic bo and roulette. At each terminal, players have the ability to bet on several live tables simultaneously— whether it’s a number of baccarat tables or a selection of different games. The system maintains a complete record of betting and credits awarded as well as eliminating dealer errors and security issues, not to mention the labour-cost savings it brings. Moreover, LT believes its Live Multi-Gaming System terminals afford players greater comfort, privacy and security than they could get at a

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Asia, we have been focusing on gaming chips and layout. We have developed very good Upgrades All Around relationships with operators here. You can find our chips at most of the major casinos and the market share of our layouts is quite high.” Matsui Asia returns to the show with an all-new series Matsui produces around 5,000 of its customized table layouts a year, and of innovative gaming chips, backed by a significant boost has capacity to accommodate small and to its production capacity urgent last-minute orders from customers. Matsui’s design team is on hand to assist customers in creating layout artwork incorporating special logos, event themes and commemorative designs. Matsui also atsui will launch a new line of welcomes requests for trial samples from gaming chips at G2E Asia, though new layout customers. it’s keeping the details under In order to help customers visualize wrapsM ahead of the unveiling at the show. possible customized chip designs, Matsui “Our new series of innovative gaming developed a software tool, dubbed “Design chips have a distinct style and appearance. Your Own Chips,” which has been upgraded Although we cannot disclose further and is accessible on the Matsui Gaming information before the show, we are confident website, www.matsui-gaming.co.jp/english. “It that this new-style chip will be very popular covers all our existing chip designs, colors and and loved by both operators and players,” other options. You can make a customized says Shigeki Machida, managing director of selection of chip mold, colors and other Matsui Asia Ltd, Matsui’s Macau office its supply chain is fully secured. The company options, and you’ll be able to see what it will Over the past year, “We have been prides itself on its competitive pricing and look like straight away,” explains Mr Machida. investing a lot of resources into the speedy response to customers’ needs. “It’s a very user-friendly interface. Many development of new gaming chips, which The Matsui group, headquartered in customers use it when they discuss their chip are our core product,” notes Mr Machida. Tokyo, specializes in the supply of gaming design ideas with us. It’s a very helpful tool.” “In addition to our ongoing commitment to chips and layouts (both wool and synthetic). In addition to chips and layouts, Matsui product development, we’ve also invested Its subsidiary serving Asian markets outside also supplies table accessories, including heavily in increasing our production capacity. Japan and Korea, Macau-based Matsui Asia playing cards, a unique card-shredding We’ve installed a lot of new machinery and is part of a global network also spanning machine, roulette wheels and winning equipment that not only speed up production, Europe and the Americas. Its chips and results displays but also improve the quality of the chips. layouts are used by more than 700 casinos in Through its established presence in Also, because security is so important to over 100 countries, and in addition to Macau, South Korea’s gaming market—a market us as a casino currency supplier, we’ve also the group has sales offices in Manchester, poised for major expansion with a string of significantly upgraded the security at our England, Moscow, Las Vegas and Seoul. planned integrated resorts—Matsui has been factory using state-of-the-art technology. We’ll “Our business has been very stable at distributing products there for other suppliers. be introducing these latest improvements to all our offices around the world. There are Its latest Korea distribution agreement was our clients at G2E Asia.” new casino projects coming up in all those signed with slot giant IGT. “The partnership All of Matsui’s manufacturing takes place jurisdictions, and we are trying our best to has just started, but it has already been at facilities it has 100% ownership of, ensuring secure their business,” says Mr Machida. “In successful. We supplied IGT and Aristocrat machines to Genting’s new foreigner-only In order to help customers casino in Jeju, which opened in December [as a revamp of the casino at the former Hyatt visualize their own Regency, which Genting bought]. We’ve been customized chip designs, the distributor for Aristocrat in Korea for many years already, and now with the IGT Matsui developed a agreement we’ve added another top brand software tool, dubbed to the lineup of slots we offer there. Several new casino licenses are expected to be issued “Design Your Own Chips,” in Korea over the next few years, which will which has been upgraded create more and more opportunities for our and is accessible on the slot distribution business.” Matsui Gaming website. Visit Matsui Asia at Stand #613

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Best Acceptance

CPI returns to G2E Asia with the industry’s most comprehensive portfolio of automated payment systems TheSC Advance note acceptor seeks to further improve upon the rane Payment Innovations (CPI) was founded last year through key performance attributes the merger of MEI and NYSE-listed Crane Co., both world responsible leaders in banknote- and coin-handling technologies whose for operator newlyC combined reach encompasses markets ranging from gaming and profitability retail to financial services, transportation and vending. CPI’s presence and customer stretches across 144 countries serviced by some 2,200 employees, satisfaction— including more than 500 engineers, with manufacturing facilities in acceptance, jam North America, Europe and the UK and 24 sales offices in North and rate, security and total cost of South America, Europe, South Africa, Asia and Australia. ownership. The products on display at the CPI stand at G2E Asia include the MEI SC Advance note acceptor, EASITRAX Web and PPM Advance support tool. These products are designed to be used together to create a powerful cash management solution that enables newfound Soft Count. As before, EASITRAX Soft Count collects data from SC efficiencies throughout operations. acceptor heads and uses it to streamline the drop process, facilitate The headline exhibit, SC Advance, is part of the trusted SC asset evaluations and conduct preventative maintenance programs. product line that has achieved an installed base of more than 1.5 EASITRAX Web makes it easier to import that data and convert it into million units worldwide. It represents an evolution of the successful reports (which can now be customized) from anywhere in the world CASHFLOW SC note acceptor, seeking to further improve upon the with secure intranet access. key performance attributes responsible for operator profitability and Another major highlight is PPM Advance, a next generation customer satisfaction—acceptance, jam rate, security and total cost support tool that, according to the company, lowers maintenance of ownership. Several cashbox sizes, as well as a stackerless model, costs by facilitating quick and easy updates to in-field SC note will be on display. acceptors. Its Bluetooth functionality option delivers enhanced There’s also EASITRAX Web, a software extension of EASITRAX communications to the user through an Android phone and tablet app, enabling technicians to download software remotely and add EASITRAX asset numbers. EASITRAX Soft Also at the CPI stand is the CashCode SM BackLoad note acceptor, which has the fastest note-to-stack speed in the world at 1.7 Count, now with seconds. It is designed to support door-mounted applications with the EASITRAX Web small footprints such as bingo, roulette and tabletop sports betting terminals. To meet industry demands, it is available in up-stacking, software extension, down-stacking and horizontal configurations. provides operators Finally, CPI will feature several coin acceptors and hoppers with with more flexibility varying footprints and capacities to meet individual application requirements. The Universal Hopper is CPI’s best-selling coin when accessing hopper, with millions installed worldwide. The Cyclone Hopper and evaluating offers a smaller footprint and is ideal for applications where lower coin capacities are required, including the latest multi-pay gaming performance data machines. Then there’s the high-speed Condor Premier coin acceptor, to drive efficiencies which is configurable to accept up to 12 different coins, enabling from the slot floor compliance with local jurisdictional requirements. to the back room. Visit CPI at Stand #739

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Stellar Standalones

Ainsworth returns to G2E Asia with a strong lineup of premium bilingual titles, including new spins on tried-and-tested concepts and all-new innovations

insworth Game cabinet, Fortune Ox features the Technology will debut highly successful Double Hit A several products at this concept, providing increased year’s G2E Asia, and hopes start-up value options plus rapid are especially high for the new hitting bonus prizes with even standalone product range, more generous frequent free including Lucky Ye Ha Hai, Thunder game features. Fortune Ox series Dragon and 8 Immortals. is targeted at high-denom play in a Lucky Ye Ha Hai is a graphics- 5,10 or 20 pay line format with the rich five-reel 50-line offering created option of either a three-level link, especially for Asian audiences. two-level standalone progressive, It includes a unique multi-dice or one-level link. feature as well as 8 engaging free In addition, Ainsworth will games with guaranteed reveal demonstrate a range of new symbols and accumulating wild themes for its core Game Plus multipliers. Lucky Ye Ha Hai’s library: Play 30/40/50 Lines and appeal to players derives from its Triple Shot. ability to reward them regularly New South Wales-based with four levels of rapid bonuses. Ainsworth was founded in 1995 Ainsworth will further expand by the legendary Len Ainsworth, its Quad Shot range with the long acknowledged as one of the brand new Asian-themed titles fathers of slots in Australia and Dragon Climber and Phoenix & the man who established industry Peony, which now feature a bonus heavyweight Aristocrat. Over the sixth reel, more stacked wilds and past few years, Ainsworth has rapidly triggered coinciding SAPs. greatly increased its share of the Ainsworth also hopes to make Australian market and grown a statement at G2E Asia with international sales Fortune Ox, an engaging high- Ainsworth has been especially denom link progressive from the focused on serving the fast growing proven Double Hit line of games. markets of Asia. It was ahead of Available in the A560st slant top the pack in developing a strong library of dual-language (Chinese and English) games in line with Lucky Ye Ha Hai is a Macau’s new slot standards, and graphics-rich five-reel those titles have been performing well, growing the company’s floor 50-line offering created share across the region. especially for Asian Further product information is available on the company’s audiences. It includes website, www.ainsworth.com.au, a unique multi-dice or through contacting Asia Sales Manager Keith Jeffrey by phone feature as well as 8 on +612 9739 8000, or email at engaging free games. [email protected].

Visit Ainsworth at Stand #1437

78 inside asian gaming MAY 2015 G2E ASIA 2015

Branching Out

In addition to providing the gaming industry’s leading testing and certification services, GLI prides itself on being so much more

hen Gaming Laboratories GLI Link was International was founded in created with W 1989, the testing of gaming equipment primarily revolved around the a keen eye IT and Internet security assessments have become mechanical reel slot machine. on the Asian a major business segment for GLI. Today, the task has become exponentially more difficult with the advent of increasingly marketplace. sophisticated video slots, lottery products, It allows GLiCloud is another time-saver that server-based and other technologically- provides a whole new level of access by which advanced gaming systems, online and device testing regulators can track an entire gaming floor’s mobile game platforms and ancillary gaming against systems from any of software and hardware and the compliance products ranging from ticket printers to bill status of all components. It’s cloud-based, acceptors for a growing number of local, GLI’s global locations, saving as the name says, designed to allow users state and federal regulatory authorities. time and money and speeding to tap into GLI’s global database in real GLI has proven more than able to meet time to market. time so that their information is always up the industry’s rapidly evolving demands, to date and accurate. It provides oversight in the process becoming the world’s and reporting of activities and tasks, and it’s leading gaming testing lab and technical entirely automated to eliminate human error. consultancy. It also continues to be a pioneer The IT and Internet security assessments Significantly, it also links to GLI Mobile, the and innovator in the field. are especially popular, given the need downloadable app that allows regulators and Moving beyond testing and certification, for companies to ensure they are able to suppliers alike to access GLI’s database on GLI has started to offer what it describes withstand an ever-expanding variety of the go, facilitating 24/7 access to the lab in as “a wide range of information security threats. “We started to do it about three a secure, password-protected environment. services to gaming and non-gaming years ago on a smaller, on-demand scale, GLI’s clients can avail themselves of companies, from audits and training to the but the demand for it has surged by tenfold. the scale and flexibility of the company’s application of new processes and ultimately Everybody’s asking for it,” says Ian Hughes, worldwide reach. GLI guides 65 standards certifications.” the company’s vice president of Global for technical competence in the gaming, Services. He adds that the IT security audits wagering and lottery industries and are “probably 60% of what we do now.” maintains 20 laboratories in Asia, Africa, In addition, GLI has developed a portfolio Australia, the Caribbean, Europe and North of exclusive tools that make it a lot easier for America and South America. It provides gaming suppliers to access international services in more than 455 jurisdictions. markets. GLI is well positioned in Asia, with full First there’s the patented GLI Link, which service labs in Macau, and in Adelaide, was created with a keen eye on the Asian Melbourne and Sydney in Australia. GLI Asia marketplace. It allows device testing against in Macau was the first full gaming testing systems from any of GLI’s global locations, laboratory in the market and the first in Asia saving time and money and speeding time to be certified for ISO/ISE 170025:2005. to market. Before GLI Link, suppliers had to Leading the team at G2E Asia will be physically ship devices for testing. Now they GLI Asia General Manager Amanda Chan. A simply bring them to their local GLI lab. long-term resident of Macau, Ms Chan has Then when testing and certification are extensive gaming and regional experience complete, suppliers can take advantage of and will be on hand at the show to address the exclusive Point.Click.Transfer service the specific needs of suppliers, operators to move previously certified products into and regulators. GLI’s clients can avail themselves of the scale and jurisdictions around the world with the click flexibility of the company’s worldwide reach. of a mouse. Visit GLI at Stand #239

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Enhanced Portfolio

JCM promises operators deeper connections with their customers through its diverse product range encompassing bill validation and printer technology, as well as system and digital media solutions

CM Global comes to G2E Asia 2015 with can accept single notes or stacks of notes in a greatly enhanced portfolio following its multiple currencies simultaneously. J acquisition last year of FutureLogic. JCM, Another highlight product is the iV8 table- of course, is a major international supplier side bill validator. Developed specifically of transaction technologies to the gaming for high-volume table-game markets such industry, in addition to banks, retailers and as Macau, it can validate large buy-ins at 8 kiosks. By taking over FutureLogic, it has also notes per second, significantly speeding the become a leading supplier of printers and process and increasing the number of hands couponing solutions for not only slot tickets dealt per hour. and gaming vouchers, but also a wider range JCM claims its printer technology JCM’s flagship bill validator,iVIZI ON, boasts of applications including fuel pump receipts, enhances the connection between casinos the most advanced security features and anti- medical devices, POS coupons and labels for and their customers, including FutureLogic stringing technology available, along with an assembly-line products. ticket printers characterized by their speed, acceptance rate better than 99%. JCM’s broad-ranging exhibit kicks off flexibility and durability. with its award-winning line of bill validation The potential for improved connection technology. Its flagship bill validator, with customers continues with JCM’s iVIZION, boasts the most advanced security system solutions, including Dynamic promotions exactly where and when they features and anti-stringing technology Network Applications (DNA), Intelligent are needed. available, along with an acceptance rate Cash Box (ICB), PromoNet, Ticket2Go and Ticket2Go offers a retrofit ticketing better than 99% and a version with a high- TableXchange. solution for gaming machines that do not capacity cash box, iVIZION-HC. Then there’s PromoNet intelligent couponing support open-standard ticketing protocols. iPRO and iPRO-RC, with an optional recycling identifies valuable players, targets both It’s targeted at AWP and low-payout markets, feature; UBA, Vega and Vega-RC; Taiko Pub; carded and non-carded players, links delivering a networked TITO solution and the DBV-400 and DBV-500; and the TBV that promotions to game-play and delivers the proven network-less Ticket Payout feature. It also supports multiple languages and currencies. TableXchange, meanwhile, brings the convenience of TITO to the table by both accepting and paying out with TITO tickets, allowing full two-way transactions compatible with existing casino TITO systems, increasing convenience for players and streamlining operations by virtually eliminating the need to replenish chips at table games. Rounding out the portfolio and completing the connection with players is JCMedia, a complete line of digital displays, production services and media management Developed specifically for high-volume table-game markets systems that empower operators to such as Macau, the iV8 can validate large buy-ins at 8 notes communicate directly with customers in a per second, significantly speeding the process and increasing digitally dynamic fashion. the number of hands dealt per hour.

Visit JCM at Stand #339

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Another featured product at the Abbiati stand will be a blackjack table manufactured Currency Revaluation with special composite materials. In addition, the company plans to demonstrate a special baccarat table that enables the use Abbiati continues its tireless quest to keep casino currency of a video screen player interface. Both tables safe with an all-new line of chips, plaques and jetons boasting are decidedly eye-catching, featuring unique designs and elegant, high-end finishings. sevearl innovative security features as well as elegant designs Then there’s the company’s GLI-25 certified American roulette wheel, which incorporates the upgraded version of the company’s patented invisible laser technology (Class 1A). Abbiati’s American roulette wheels can connect to winning number displays, online gaming terminals and management systems, and owing to their open protocol, they have become the preferred choice for many leading online gaming operators. “Due to the expansion of online gaming operations in Asia, we believe our American roulette laser wheel will attract a significant number of show visitors,” adds Giorgio Abbiati. Along with the wheel, Abbiati will present its range of high-quality multimedia Winning Number Displays. As the exclusive worldwide distributor for Modiano, Abbiati will also present a complete range of 100% plastic and n recent years, Abbiati Casino Equipment the demanding needs of Asian customers plastic-coated paper playing cards which has been chosen by several Asian who require reliable and state-of-the-art include new high-security features such operators in search of stylish and secure products.” The new range will include a as tracking mechanisms and cards with Icasino currency. collection of attractive new patterns, designs barcodes specifically designed to meet the The company’s reputation is built on and materials for the plaques as well as the requirements of online gaming operators. nearly 40 years of commitment to the highest new line of patented “Tie” chips featuring Headquartered in Rosta, Italy, Abbiati manufacturing standards and best materials, multiple injections, see-thru inserts and continues to collaborate with veteran blending technological innovation with a combination of intricate and innovative industry marketer Christophe Leparoux and traditional craftsmanship to produce the finest rim and edge inserts. All new products are his firm, Golden Cathay Consulting, to better in furnishings, layouts and accessories for the available with security features such as 13.56 serve the Asian market and further expand pit. Its products are now found in more than MHz RFID, 8-color UV pigments, 3-in-1 UV, its presence in the region. 120 casinos on four continents. According to Laser Tracer technology, Optical Variable Ink CEO Giorgio Abbiati, “Asia is an extremely and high-security holograms, which, says Visit Abbiati Casino Equipment vibrant market for us and is strategically very the company, is “to name but a few.” at Stand #1139 important as our business continues to expand and develop.” He adds: “G2E Asia provides us with a unique opportunity to introduce our innovative products to Asian operators.” Abbiati’s American roulette At the show, Abbiati will display a wheels can connect to winning brand-new line of chips, plaques and jetons number displays, online gaming incorporating a number of innovative security technologies to prevent counterfeiting. “The terminals and management innovations we’ll be presenting this year systems, and owing to their are the result of extensive R&D projects that we have carried out both internally open protocol, they have with our engineers as well as with our become the preferred choice partner suppliers,” says Mr Abbiati. “Our company has an increasing Asian focus for many leading online gaming and we have been working hard to meet operators.

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Fortune’s Favored

Konami Gaming plans to take the occasion of G2E Asia to launch an array of new games designed specifically for the regional market

onami has promised to unveil “a milestone lineup of new Asian market game titles” at this year’s show. KFeatured games are replete with custom art themes, greater volatility indexes, enhanced player interaction, and math models intended to shore up appeal to Asians. Games featuring new original math such as the Opera Beauty five-reel video slot, Dragon’s Glory UltraReels video slot, and Prophetess of Fortune on Rapid Revolver are expected to be among the main attractions at the Konami stand. “In particular, Konami’s Prophetess of Fortune on Rapid Revolver is powered by a unique multiplier mechanic— delivered through the stacked, spinning top-box drums—that amplifies wins up to 100x,” explains Matt Reback, vice president, marketing at Konami. In addition, Konami will be showcasing several new Asian titles on its extra-large Podium Goliath cabinet. Full-reel wilds take center stage in the new “Konami continues to invest its support Opera Beauty five-reel video slot. in new games, cabinets, and technology that help advance the future of gaming entertainment in many crucial Asian expanding library of available game themes. In regions,” says Mr Reback. lieu of the upper LCD screen, Rapid Revolver Prophetess of Fortune is Konami’s newest takes a unique spin on classic mechanical reels release for Rapid Revolver, joining the award- by mounting six stacked drums on its oversized winning debut title Rising Dragon. Both top box, surrounded by synchronized high- combine thrilling top-box lighting and effects impact sound and lighting. in the upper stacked reels with dramatic art Konami’s big-screen Podium Goliath animation in the lower video base game for a cabinet will also be under the spotlight, hybrid video-mechanical reel experience. with “colossal sound, 360-degree attract The attention-grabbing Rapid Revolver has lighting and 32-inch dual high-definition LCD continued advancing into new markets with an displays,” according to the company.

Prophetess of Fortune is the newest release for Rapid Revolver, joining the award-winning debut title Rising Dragon. Both combine thrilling top-box lighting and effects in the upper stacked reels with dramatic art animation in the lower video base game for a hybrid video-mechanical reel experience.

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Then there’s the classic Podium cabinet, “Konami continues in upright and slant design, known for its reliability and performance. to invest its support in “During this year’s event, Konami will new games, cabinets, be showcasing some of its most promising and technology that new game themes on Goliath, such as Heroine of the East and Mighty Emperor of help advance the Heaven. Both are 5-reel video slots that future of gaming highlight random multipliers in the free game bonus,” says Mr Reback. “Because entertainment in Goliath is compatible with all the same many crucial games as our classic Podium cabinet, operators have the greatest control and Asian regions.” long-term flexibility to customize this product to meet their needs.” Matt Reback vice president, marketing Visit Konami Gaming at Stand #559 at Konami

Brotherhood of Fortune

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getting fiercer, casinos need to look for ways to capture hidden efficiency potentials. Quality Matters Integrating their cash processing is an extremely powerful way to do that.

Cash is king at Asia’s high-volume casinos. And when it comes Can you give us real-world examples? Sure. One casino we worked with had to processing all those banknotes, Giesecke & Devrient‘s three cash-processing systems installed. high-end solutions reign supreme Each month, their count team—25 people in total—reported 500 hours overtime. With our integrated solution, overtime went down to nil in the first month, and they could almost cut the team in half. unich-based Giesecke & the Philippines, Malaysia, South Korea, Another client, who had 15 people on its Devrient is one of the gaming Cambodia, Sri Lanka and Vietnam. count team and another six on the drop industry’s most trusted names in Inside Asian Gaming spoke with Jim team, now works with just one combined large-volumeM cash processing. Goodwin, head of G&D’s casino business, team of six people. Ensuring that cash moves smoothly, about the intricacies of handling all that efficiently and securely in the demanding cash properly. Those are big changes. What is it about environment of a 21st century casino your solution that makes that possible? is a specialty for G&D, which has been IAG: Why is cash processing such a big One factor certainly is the powerful producing the high-volume systems issue for casinos? equipment we have. But that is not all. required by central and commercial banks Mr Goodwin: Casinos have particularly To really make a difference you need a and cash-transit enterprises for well over complex cash processes: Often they deal comprehensive solution covering all relevant a century. with very large volumes and many different factors: not only systems and connectivity In Macau, the company’s count room currencies—and everything must be but also the casino’s work-specific processes systems have been in use since 2005, and its processed extremely fast. In all of those and room layout. Once you optimize all presence continues to grow as Asian gaming cash operations, security is always a major that in an integrated effort you can achieve grows, with more recent installations in concern. Now that global competition is quantum leaps in efficiency.

Expertise Embodied

G&D’s cash-handling expertise is embodied in a suite of unmistakably high- quality products, including the BPS C4 and BPS C1, the Numeron and the Bank Express System, each designed in its unique way to optimize work processes, reduce costs and enhance productivity. Used together, they offer an end-to-end solution with the potential to integrate the various business segments of a modern megaresort— the all- important operations of the cage, of course, together with the restaurants, shops and the hotel—into a single, flexible system for fast, reliable, fully automated, high-security cash processing. The BPS C4 has been developed to TheBPS C4 meet the most exacting demands of the handles TITO count room with a high through-put rate tickets and and true continuous processing with vouchers as header-card one-pass technology for multi- well as cash.

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“Casinos often deal Some casinos might still hesitate to invest in a high-end system… with very large volumes Which is understandable, as major and many different investments tend to weigh down short-term currencies. Everything profits. If you look at the longer-term economics, however, you will find high-end solutions to be must be processed more cost effective. Why? Because the return extremely fast and on investment is achieved in various ways: You have less shrinkage because banknotes security is always a are monitored throughout the process and major concern. Now there is hardly any manual interference. You have highly efficient processes, so you save that competition is on manpower. Larger volumes are processed getting fiercer, casinos faster, with no interruptions. Last but not least, need to look for ways don’t forget equipment longevity: G&D’s first casino system is still in operation—it was to capture hidden installed in 1997. efficiency potentials. What qualifications are essential for a Integrating their solution partner? cash processing is an Powerful technology is just the core. In extremely powerful way addition, it takes industry expertise to ask the right questions, understand work flows, to do that.” anticipate future developments and come up with good ideas. Also, a solution partner Jim Goodwin | Market will need to be familiar with the respective Segment Director in charge country’s gaming regulations, currency of G&D’s casino business properties, processing requirements and so on. So, global presence is essential.

denomination, multi-orientation and multi- for the satellite employee bank, working in currency counting and TITO tickets and tandem with G&D’s Compass Casino to vouchers sorting. provide controlled and secure access to as The compact, easy to use BPS C1 is many as 150 pre-assembled employee banks, well-suited to the places where space is an each containing up to 1,000 banknotes and issue, such as cash desks and back of house up to six rolls of coins. It not only automates areas. It authenticates, checks and sorts the bank-out function, it also tracks and denominations, detects multiple currencies controls all cash balances, providing an and provides emission-sorting, orientation- average dispensing time of seven seconds, sorting, TITO reading and image face enabling cashiers to complete their back- scans. Its two stackers, fitted with separate office transactions more efficiently and compartments for sorting and rejections, spend more time serving their guests. can count up to 1,500 banknotes per minute. G&D continually adapts its systems BPS Connect Casino is a tailored software to meet changing market demands, legal solution that connects with both the C4 The compactBPS C1 is ideal for smaller areas stipulations and security requirements, and C1 to integrate an array of additional such as cash desks. whether it’s with a compact desktop industry-proven best practices, including processor or a 20-stacker high-performance an interface between the header card and system. Gaming-specific solutions include smart can system, the ability to track cash compact end-to-end processing system high-security systems for automated cash through the entire processing chain with that belies its small size with features that processing that perform counting and consolidated reporting and analysis and include the CashRay 180 high-tech sensor sorting, authentication and the flexible tools to ensure that processing capacity is and a person-to-machine interface. processing of different currencies. operating at peak utilization. The innovative Bank Express System sets The Numeron is an exceptionally new standards of productivity and efficiency Visit Giesecke & Devrient at Stand #715

MAY 2015 inside asian gaming 85 G2E ASIA 2015

DREAMS OF ASIA Strength in Unity on the premium AXXIS product line boasting award-winning Under the banner “Winning Combination,” the post- TRUE 3D technology. merger IGT will appear at G2E Asia with an expansive exhibit developed specifically for the region’s players.

develop resonate with our customers and their players.” Taking prime position at the IGT stand will be its culturally enriched progressive theme San Xing Bao Xi, featuring two base game themes, Dragon Dynasty and Golden Frog, and boasting a series of play mechanics designed to boost player engagement and Housed on the CrystalDual cabinet, Fu Gui Ji Li offers exciting game play and communicates encourage larger bets. “luck” and “fortune” through a culturally relevant symbol set. On the hardware front, the new CrystalDual cabinet will make its Asia-Pacific debut at the show. The CrystalDual cabinet he merger between the world’s “IGT is excited to showcase the combined delivers remarkable visuals and presentation leading lottery supplier and the global strength of our newly formed through two pristine Multi-Layer Display world’s leading slot manufacturer, company,” says IGT CEO, International (MLD) touch screens. Great visuals are Tfirst announced in July last year, is Walter Bugno. “At G2E Asia, we will present complemented by outstanding audio and finally complete. The combined entity, a portfolio that speaks volumes about our thoughtful ergonomic design to round out listed on the New York Stock Exchange, customer-first focus and our commitment the CrystalDual cabinet’s dynamic player has adopted the name of the latter, to the success and growth of the Asia-Pacific experiences. This hardware is backed by International Game Technology, which market. IGT continues to invest in extensive an extensive pipeline of games, including now stands as the world’s leading end-to- market research with a global focus and fan-favorite titles and new Asian culturally end gaming company. local emphasis, ensuring that the games we enhanced titles.

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New in the GALAXIS TABLES module is IGT´s JUNKETS product, streamlining the management of junket operations through reliable accounting. Then there’s JP2go, a turnkey jackpot solution offered in straightforward standalone packages. IGT says deployment of JP2go is quick and easy, offering targeted revenue building for mystery, progressive and wide-area jackpots for an all-inclusive, per-machine price. IGT’s sbX is a fully agnostic—i.e., it’s able to work with a complete range of platforms from other manufacturers— casino management solution. In addition to providing a detailed look at casino performance data, sbX also gives operators access to IGT’s game library featuring more than 400 titles, enabling quick updates for game configuration on the casino floor. And last but clearly not least among the systems portfolio is IGT Advantage, a comprehensive solution featuring tools that enable operators to optimize casino floor management, attract and retain more customers and increase return on investment. Advantage integrates with a host of other IGT systems products and modules, including sbX, bonusing apps, Lucky Chip, Xtra Credit and more, enabling casinos to create customized solutions to Gong Xi Fa Cai enhance player engagement. As part of IGT’s distribution agreement with Macau-based LT Game, LT’s dealer- assisted and fully electronic e-table systems Another Asian-attuned progressive title On the systems side, IGT will present its will also be on display, demonstrating both making its international debut at G2E Asa is SYSTEM2go slot management system with baccarat and roulette games. Fu Gui Ji Li. Also housed on the CrystalDual the new Platinum View edition, including For more information on IGT’s Asian- cabinet, Fu Gui Ji Li offers exciting game play an interactive player display and a wealth themed portfolio, visit the company’s and communicates “luck” and “fortune” of new features. Also on display will be the Facebook site at facebook.com/IGT. through a culturally relevant symbol set. comprehensive GALAXIS casino systems Also under the spotlight is the company’s solution with its nine different modules. Visit IGT at Stand #909 premium AXXIS product line boasting award-winning TRUE 3D technology. Asian- themed games DRAGON’S TEMPLE 3D and DREAMS of ASIA will complement an The merger between the extended library of other TRUE 3D games. world’s leading lottery IGT will also highlight a robust core supplier and the world’s portfolio of Asian themes on the G23 hardware platform, including new themes leading slot manufacturer, Dancing Lion, Eastern Treasures, Chinese first announced in July Odyssey, Fortune Beast, Guardian’s Treasures, Lantern Riches, and more. last year, is finally complete. The combined entity, listed on Rounding out the games offer are colorful the New York Stock Exchange, has adopted the name of the titles from PopCap such as BEJEWELED, ZUMA and PLANTS vs. ZOMBIES, all of which latter, International Game Technology, which now stands as the will be presented on the MaxVusion cabinet. world’s leading end-to-end gaming company.

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think we built a good momentum going into 2015 and we are just beginning to see the Ramping Up results.” EXTREME PROGRESSIVE is a 5 reel, 3 row, 243-ways to win linked series offering Aruze is unveiling over a dozen new games at the show, free games and a 4-level progressive which has 48 different jackpot settings. The series providing fresh impetus for its rapid growth across the region features four titles, EXTREME DRAGON, EXTREME PHOENIX, EXTREME KYLIN and EXTREME TORTOISE. RAPID SHOT is Aruze’s first ever linked 5-level progressive jackpot series on the t’s been extremely tough for One of games made specifically for the INNOVATOR platform. It features three the Asian market over the past CUBE-X, STACKIN’ MYSTERY CRYSTAL titles, RAPID SHOT DIAMOND, RAPID I12 months, and particularly for BEAUTY, is the latest G-SERIES title. Played at SHOT RUBY, and RAPID SHOT SAPPHIRE, “Macau, where gaming revenue has fallen 5-reels and 50-lines, it features the Crystal Ball all of which are played at 5-reels and 30 lines. dramatically,” comments Albert Yu, assistant Feature, triggered when three or more feature The series comes on a 60-inch monitor general manager for Aruze Gaming Macau. symbols appear on reels 2, 3, and 4, as well as displaying the 5 levels of jackpots available He adds: “However, at Aruze we haven’t stacked wild symbols and free games. and overhead signage to give great visibility slowed down our development and we see The new EXTREME PROGRESSIVE link on the floor. this as a chance to increase our market share series, meanwhile, “has proved to be a huge Another highlight is DARK SAMURAI, by launching our new cabinet as well as a success for us at Resorts World Genting, a 5-reel 30-line interactive game on the wide range of new products at G2E Asia.” which was our first installation in Asia, G-DELUXE platform that offers several The new CUBE-X cabinet has a and we strongly believe it will be a popular different bonuses such as the wheel spin distinctive look, featuring high-definition hit for the Asian market, given the strong bonus, free games, and samurai-themed 24-inch monitors, a completely redesigned, preference of video links in the region,” says bonuses including the Battle Bonus, Slash ergonomically friendly box, and what the Mr Yu. “Singapore has also been going well Bonus and Castle Bonus. company claims is one of the fastest data for us, as we have made major strides on processors on the market. getting new games on the floor. Overall I Visit Aruze at Stand #921

STACKIN’ MYSTERY CRYSTAL EXTREME DRAGON is one of RAPID SHOT is Aruze’s first DARK SAMURAI BEAUTY on the new CUBE-X cabinet four titles on the EXTREME ever INNOVATOR linked 5-level PROGRESSIVE link series progressive jackpot series

88 inside asian gaming MAY 2015 G2E ASIA 2015

Putting on the Ritz

Slovenia’s Interblock offers state-of-the-art electronic gaming equipment that stands out on crowded casino floors with an unmistakable emphasis on luxury

The Diamond IB-HG 55-inch LCD with five play stations is based on a new type of The fully electronic Diamond 3D technology Roulette Generator with eight that creates play stations uses air pressure the illusion of to launch the ball onto the brim life-size, full- and a series of optical and color 3D moving proximity sensors to track the images. ball during its path and to detect its final position.

he first thing that strikes you about ball moves (towards the red or black goal), Interblock’s products is their sleek Ministar and the bigger the roulette result the further design. But more than looks, it is Roulette the ball moves. The closer a team gets to a Tperformance, value and innovative features Shot on Goal, the more the player wins, with that have garnered the company a large a goal paying up to 500:1. Players can follow and growing presence across international the animated action of Goal! Roulette on a markets including Asia. separate LCD display so as not to interfere Continuing the company’s tradition of with the main game. marrying the latest tech innovations with Then there’s MiniStar Roulette with slick, eye-catching design is the Diamond eight play stations, which will be on display IB-HG 55-inch LCD with five play stations at G2E Asia with a single zero wheel along that’s based on a new type of 3D technology, with the mystery progressive jackpot side creating the illusion of life-size, full-color 3D bet Golden Chip. Like Interblock’s other moving images. The platform offers baccarat roulette products, Ministar Roulette offers with a range of custom-developed side fast result detection and excellent roulette bets designed to increase the house edge, wheel visibility. including Lucky Nines, Super 6 and Hi-Ti. And stay tuned over the next few days The fully electronic Diamond Roulette for Interblock’s announcement of a new Generator with eight play stations uses air leadership team for the Asia Pacific region pressure to launch the ball onto the brim the ball down the field, earn a Shot on Goal that the company says will demonstrate and a series of optical and proximity sensors multiplier, and score a goal. The game lasts 3 just how serious it is about increasing its to track the ball during its path and to detect spins, with a possible 4th shot on Goal Spin. footprint across the continent. its final position. The object of the football- After a bet is placed, the color of the next 3 themed side bet Goal! Roulette is to move roulette results determines the direction the Visit Interblock at Stand #759

MAY 2015 inside asian gaming 89 REGIONAL BRIEFS

Incheon International Airport said their proposed resort would Prime Minister Abe be developed on the grounds of the gateway airport to Seoul, which sees casinos as key to serves more than 45 million visitors annually. economic growth. Mohegan Sun would spend about $1.6 billion on the first stage of the resort by 2020. The entire project, due to be completed in 2040, would include a foreigner-only casino with 250 gaming tables, a 1,000-room hotel, an arena for up to 20,000 people and an amusement park, the companies said. The South Korea government has said it will decide on “around two” new gaming licenses by the end of this year. The new casinos would be aimed at catering to foreign visitors as Seoul bans locals from entering all but one of its 17 casinos and has no plans to change that policy. Also competing for a license are Hong Kong’s Chow Tai Fook Enterprises Ltd with a proposal for a $2.6 billion resort, which Lawmakers Submit Japan Casino would also be near Incheon airport, and Philippines’ Bloomberry Legalization Bill Resorts Corp which has plans to invest $1 billion to build a casino According to Reuters, Japan’s pro-casino lawmakers submitted to complex in the country. parliament on 28th April a bill to legalize casinos in the country, the Bloomberry, which has not said where its proposed casino latest bid to establish an industry that Prime Minister Shinzo Abe would be, has bought an island off the coast of Incheon and bought sees as key to economic growth. an existing casino in Jeju Island. If it decides to build the integrated Parliamentary records showed that members of the ruling resort in Jeju it would not need a new license. Liberal Democratic Party, the Japan Innovation Party and the Party Most of South Korea’s current casinos are tiny by the standards for Future Generations had submitted the bill, but it was unclear of Macau or Las Vegas. Upcoming projects include one being when it would be discussed or voted on. built by a joint venture between South Korea’s Paradise Co Ltd The lawmakers have said they hoped the bill would pass before July and Japan’s Sega Sammy Holdings Inc, and another by Caesars or August, when the current parliamentary session is expected to end. Entertainment Corp and Lippo Ltd. Both those projects will also be Attempts to legalize casino , which industry near Incheon airport. experts say is one of the world’s last major untapped gaming markets, have been delayed repeatedly amid opposition from Rendering of Incheon International Airport’s proposed resort lawmakers worried about addiction and organized crime. Some members of the Buddhist-backed Komeito, a junior partner in Mr Abe’s coalition government, oppose legalization. Lawmakers in the pro-casino camp have said this opposition made it hard for them to push for the bill even though supporters slightly outnumber opponents in parliament. Failure to pass the bill would also delay the drafting of a crucial second bill on implementation which outlines details on how the industry would be regulated. Companies such as Las Vegas Sands Corp and MGM Resorts International are vying to win licenses to operate casinos in Japan, a market that brokerage CLSA estimates could generate annual revenue of US$40 billion. Analysts have said it was already looking difficult to build resorts Paradise Q1 Casino Revenue Declines in time for the 2020 Tokyo Olympics. South Korea’s leading foreigner-only casino operator, Paradise Co., reported an 11.6% year-on-year decline in casino revenue in the first quarter to KRW133.3 billion (US$122.2 million). Mohegan Sun Operator Makes Table game revenue fell 12.9% to KRW124.6 billion, on the back of a 22.7% reduction in table drop to KRW1.1 trillion. Machine Incheon Casino Proposal gaming revenue, meanwhile, was up 12.2% to KRW8.8, accounting The Mohegan Tribal Gaming Authority, operator of the Mohegan for 6.6% of total casino revenue in the quarter. Sun casino in the US, has joined with the operator of South Korea’s Paradise operates five foreigner-only casinos in South Korea, Incheon International Airport in a proposal for a US$5 billion including its current flagship, Walkerhill. development with a casino resort component at the site of the airport. The company is in the process of significantly expanding International gaming companies are being lured to South Korea its operations. In a joint venture with Japanese gaming machine by the government’s decision to award two further gaming licenses manufacturer Sega Sammy, it broke ground on the country’s first this year, along with the promise of a market that saw a 42% jump destination-scale casino resort, dubbed Paradise City, in November in Chinese tourists last year to a record 6 million. at a special economic development zone on Yeongjong island, the

90 inside asian gaming MAY 2015 REGIONAL BRIEFS

site of Incheon International Airport, the main gateway for foreign Aquis proponents say it would directly create 10,000 new jobs. arrivals, located about 30 kilometers from Seoul. Paradise City In its first stage, it would build 4,000 luxury hotel rooms on is expected to open in 2017 at an initial cost of US$750 million. a platform over a series of lagoons with a theatre, aquarium, Meanwhile, Paradise also plans to expand the floor space at three restaurants and casino targeted at a “family-friendly” premium and of its existing casinos. VIP Chinese tourist market. Paradise has a 50% share of Korea’s foreigner-only casino market, while Grand Korea Leisure, a state-run casino operator, ranks second with 42%. In 2014, Paradise reported an 8.7% increase in revenue, though profit was down 4.2%

Artist’s impression of the proposed Aquis Great Barrier Reef Resort

Rendering of Phase 2 of Galaxy Entertainment Group’s flagshipGalaxy Macau resort, scheduled for a 27th May unveiling

Galaxy Q1 EBITDA Drops 40% Galaxy Entertainment Group said its first-quarter earnings before interest, taxes, depreciation and amortization fell 40% year on year Aquis Great Barrier Reef Resort as Macau’s steep gaming revenue slide continued. The company’s total gaming revenue dropped 34% to HK$13.3 Wins Federal Approval billion (US$1.7 billion) in the quarter. The company attributed the Hong Kong billionaire Tony Fung has moved a step closer to building decline to the 16% fall in total mass table revenue to HK$4.3 billion his ambitious A$8.15 billion (US$6.4 billion) Aquis Great Barrier while total VIP revenue plunged 41% to HK$8.7 billion. Reef Resort north of Cairns, Australia, after winning environmental “The challenges of 2014 have continued into 2015 and their approval from the federal government in early May. impact has been felt across the market including at Galaxy But Mr Fung must still win state government agreement to Entertainment. The group continues to manage its properties develop the casino component of the proposed development with effectively, in light of these conditions, and drive profitability,” the Aquis project director, Pat Flanagan, saying that could take at least company said in a stock exchange filing. two more months. Total debt increased to HK$2 billion as of 31st March due to “We are working with the government to agree the process to a treasury management exercise where interest income on cash finalize the casino agreement,” Mr Flanagan said. holdings exceeds corresponding borrowing cost. “The completion of the environmental approvals and planning “Our business remains healthy and we continually review our assessment means that the only outstanding item to be completed operations to ensure that both short and longer term opportunities is the casino agreement with the State Government, which we hope are maximized,” the company said. to achieve in a timely manner.” If Aquis wins approval to have gaming the project would be able to proceed to the next stage of development. The Queensland government recently abandoned plans for LVS Profit Drops on Macau Slowdown a casino on the Gold Coast and is yet to announce who will win Las Vegas Sands Corp said its first-quarter earnings fell 34% year on the Queen’s Wharf project in Brisbane which will have a gaming year on continued pressures from a slowdown in Macau. element—with the contest down to James Packer’s Crown group Beijing’s ongoing corruption crackdown and a weakening bidding against Echo Entertainment. economy on the mainland have cut into the gaming industry in Meanwhile, Mr Flanagan said the federal government Macau, reports The Wall Street Journal. Local casino operators environmental approval demonstrated the proposed project respected including LVS have been re-evaluating costs amid the pressures on the world heritage-listed Great Barrier Reef and wet tropics rainforests. their revenue and margins. He said the federal government approval, combined with LVS, which has four casinos in Macau, said its Sands China the Coordinator-General’s Assessment Report, completes the subsidiary reported gaming revenue slumped 35% to US$1.77 billion in environmental assessment of the proposal. the first quarter. Segment net income dropped 54% to $344.7 million. Aquis claims the Yorkey’s Knob resort will generate up to A$988 Overall, LVS reported a profit of $511.9 million, down from million in gross regional product during the construction of stage $776.2 million in the year-ago quarter. Total revenue dropped 25% one and $10.2 billion at full operation. to $3.01 billion.

MAY 2015 inside asian gaming 91 INTERNATIONAL BRIEFS

The casinos themselves, however, have not publicly said that’s the reason behind the policy shift. “This change is a result of one of our regular reviews of our policies and procedures, and puts our poker room operation in line with how we operate our other table games,” said MGM Resorts spokesman Gordon Absher in a statement. Players who like to use cash while playing poker may soon have even fewer options on the Strip. A spokeswoman for the Venetian and Palazzo said that the resorts are “reviewing our current policies and procedures” due to the changes at MGM Resorts and Wynn Resorts. But Caesars Entertainment casinos still allow cash at poker tables, and the company doesn’t plan to change that right now, according to a spokesman. Morgan Stanley Slashes US Online Gaming Forecast Morgan Stanley has cut its estimate of the potential US Internet Wynn Resorts Swings to a Loss in Q1 gambling market by nearly half. Wynn Resorts Ltd cut its dividend last month as it swung to a The firm now estimates the nationwide online betting market quarterly loss amid steep declines in Macau gaming revenue. at $2.7 billion by 2020, down from an initial estimate of $5 billion. The quarterly dividend was reduced to 50 cents a share from In a report issued last month, the firm predicts no additional $1.50 and comes as a corruption crackdown, tighter regulations states will approve Internet gambling this year, but foresees and a weakening economy on the mainland have cut into Wynn’s California, Pennsylvania, New York and Illinois getting into the business in Macau. The dividend cut will save the company about game within a few years. US$101.5 million in the quarter. Three states—Nevada, New Jersey and Delaware—have The results also follow an intense public battle with Elaine legalized Internet gambling, but online betting is off to a slow start. Wynn, the company’s co-founder and third-largest shareholder, It took in $135 million last year; Morgan Stanley initially forecast after shareholders voted not to return her to the board. $678 million. For the most recent period, Las Vegas-based Wynn reported “We continue to believe that there is a material runway for revenue from its Macau operations fell 38% to $705 million, with growth, but results have been disappointing,” the firm wrote. table games turnover in its VIP segment declining 52%. “Legislative processes continue to be slow as lawmakers remain Average daily hotel room rates fell 2.1% to $331, while occupancy unconvinced that online gaming is currently worth the hassle for fell to 97.5% from $98.1% a year earlier. limited tax revenue.” In addition to its majority-stake at Wynn Macau, Wynn Resorts The report cites several factors holding back the Internet owns a resort in Las Vegas and is developing a resort in Everett, gambling market, including problems with payment processing, a Mass., north of Boston. lack of effective advertising, difficulties with geolocation technology In the latest quarter, Wynn’s Las Vegas operations posted a intended to ensure that a gambler is within a particular state’s 1.6% increase in revenue to $387 million. Room revenues were boundaries, and a thriving offshore Internet gambling market. down 3.3%, and occupancy fell to 83% from 88%. Morgan Stanley forecasts the 2017 online market will be $410 Overall, Wynn reported a loss of $44.6 million, or 44 cents a million, down from an initial estimate of $1.3 billion. It predicts 15 share, compared with earnings of $227 million, or $2.22 a share, in states will legalize online gambling by 2020, with legalization in the year-ago period. larger states prompting smaller ones to follow suit. Excluding preopening costs and other items, profit fell to 70 It also believes a federal ban on Internet gambling remains cents a share from $2.32 a share a year earlier. unlikely, but is a growing risk. Revenue fell to $1.09 billion from $1.51 billion.

Two Las Vegas Strip Operators Wynn Macau Go Cashless at Poker Tables Two major Strip casino operators recently made changes to their poker operations that may reflect a broader push to beef up their anti-money laundering efforts, reports online news site Vegas Inc. Effective last month, MGM Resorts International and Wynn Resorts no longer allow cash at their poker tables. Previously, poker players could use cash without first converting it into chips. Some experts think the change is motivated by casinos’ attempts—in the face of pressure from financial regulators—to keep a closer eye on the money moving through their properties.

92 inside asian gaming MAY 2015 INTERNATIONAL BRIEFS

March Gaming Revenue Down on the Strip Nevada gaming revenue declined again in March, thanks to a steep drop on the Las Vegas Strip. The Gaming Control Board said state casinos won $951.2 million in the month, down 3.2% year on year. On the Strip, where much of the state’s gaming revenue is generated, casinos won $507 million in March, down 9.6% from a year ago. Baccarat revenue there declined 33.7% to $67.6 million. But there was a silver lining when it came to baccarat, for which revenue was also down statewide by 33.1%. Michael Lawton, senior research analyst for the gaming board, said baccarat betting volume was actually up by more than 16% The popular bronze statue depicting the Crazy Girls revue at theRiveria from last year. That follows six consecutive year-on-year declines in volume for the game. “It was just one of those months where the play was there, but Riviera Closed After 60 Years on Vegas Strip with the volatile nature of “If the ghosts of Frank Sinatra and Liberace were still hanging around Baccarat continues to drag down baccarat, we didn’t hold the Riviera Hotel and Casino on Monday morning, they wouldn’t Strip revenue very well,” Mr Lawton said. have found a seat at the bar,” reported the Associated Press on 4th Casinos fared better May, the day “The Riv” closed after 60 years on the Las Vegas Strip. in the rest of Clark County. It’s an age reached by few properties along the four-mile stretch In downtown Las Vegas, of hulking casino resorts. The Riviera’s only remaining elder is the revenue rose 4.6% to often-renovated Flamingo that Bugsy Siegel debuted in 1947. The $53.6 million. North Las Tropicana, which opened in 1957, is close behind. Vegas had an even better “The amazing thing about Las Vegas is how soon it forgets month, with revenue itself because it keeps reinventing itself,” said Jeff Kutash, the increasing 14.4% to $29.3 dancer, choreographer and producer who brought the aquatic stage million. spectacle “Splash” to a Riviera stage for 21 years. The 60-year-old casino-hotel’s luster had faded, becoming the place to go for cheap drinks, cheap blackjack and a free photo- Hackers May Have Stolen Hard Rock op in front with the ladies of topless revue Crazy Girls, posteriors immortalized with a bronze statue of their behinds. Customer Credit Card Data The Riv’s star wattage started with bejeweled piano man Hard Rock Hotel & Casino Las Vegas said on 1st May that a malware Liberace, the property’s first headliner, and its marquee eventually attack may have allowed hackers to steal credit card information included Frank Sinatra, Engelbert Humperdinck, Tony Orlando and used at its retail and service locations. Dolly Parton. The potential breach may have included names, credit card Rat Pack member Dean Martin was a part-owner for a short numbers and their CVV security codes but not PIN numbers or other time. Another former owner married frequent Riviera performer and sensitive customer information, the company said in a statement. Golden Globe winner Pia Zadora. The attack, discovered on 3rd April, was limited to credit or debit The long-running stage show “Splash” brought water, fountains card transactions between 3rd September, 2014 and 2nd April, 2015, and pyrotechnics to a Las Vegas stage starting in 1985, long before at the company’s restaurant, bar and retail locations, including the Cirque du Soleil did. Culinary Dropout Restaurant. Eventually, the Riviera’s casino became the set for “Casino,” the Transactions at the hotel, casino, Nobu, Affliction, John 1995 movie featuring Robert De Niro, Sharon Stone and Joe Pesci and Varvatos, Rocks, Hart & Huntington Tattoo and Reliquary Spa & based on real-life Las Vegas mobsters Frank Rosenthal and Anthony Salon were not affected, it said. Spilotro during their 1970s heyday at the Stardust and other properties. The company said it is actively cooperating with law enforcement It served as Hollywood’s hangout for decades, from the Rat and credit card companies to investigate the attack. Pack in the original 1960 “Ocean’s 11” to the groomsmen of “The Hangover” in 2009. Though it’s now been closed, it’s not clear when the Riviera Hard Rock Hotel & Casino Las Vegas might be leveled or how, either by demolition or the Strip’s favored spectacle: implosion. The Las Vegas Convention and Visitors Authority bought the 2,075-room building and the 26 acres it sits on in February for $182.5 million plus $8.5 million in related transaction costs. The property has struggled in recent years as the recession hobbled Las Vegas and development around it went dormant, deterring walk-in traffic. The property hadn’t reported a profit since it emerged from bankruptcy in 2011.

MAY 2015 inside asian gaming 93 Events Calendar

19|21 May 2015 29 September Global Gaming Expo Asia The Venetian Macao, Macau |1 October 2015 G2E Asia bills itself as the premier Asian gaming event and one-stop Global Gaming Expo sourcing platform for regional gaming decision makers to discover the Sands Expo and Convention Center, Las Vegas, USA most comprehensive array of new products and services, network with industry-leading manufacturers, and learn the latest trends. Held in G2E is the world’s largest gaming event where gaming executives, Macau, the heart of Asian gaming, G2E Asia claims to offer attendees the buyers and industry professionals meet each fall to conduct serious best resource to gain a competitive edge in their businesses and careers. business. It’s gaming’s most in-depth source of new products, networking, ideas and information. It takes place in the laboratory of the www.g2easia.com industry, Las Vegas, where you can see it in action and have fun doing it. G2E showcases more than 600 exhibitors, over 100 conference sessions, exciting special events and F&B at G2E, the only F&B event for the 2|5 June 2015 gaming industry. IAGA International Gaming Summit www.globalgamingexpo.com Fairmont Pacific Rim hotel, Vancouver, Canada

This year marks the 34th annual International Gaming Summit hosted by the International Association of Gaming Advisors (IAGA). The Summit 20|22 October 2015 brings together leaders from all global gaming sectors, providing gaming European iGaming Congress & Expo operators, suppliers, attorneys, investors, bankers, regulators and other Arena Berlin, Berlin, Germany advisers with an unparalleled opportunity to meet and discuss the top issues and challenges facing gaming today. EiG is one of the major events for the online gaming industry, providing a forum where gaming CEOs from around the world mix with start-ups, regulators and new entrants for three days of serious business and networking. 9|11 June 2015 www.eigexpo.com The Slot Summit Bucharest, Romania

The Slot Summit combines marketing insight and innovation, the latest 17|19 November gaming floor trends, real world case studies and new technologies and Macao Gaming Show cutting edge game development in an intensive yet entertaining format The Venetian Macao, Macau which will ensure that you have the information you need to plan, invest and implement wisely and with maximum effectiveness. The Macao Gaming Show prides itself on having a diverse selection of exhibitors displaying products and services from both the gaming and www.slotsummit.comwww.theiaga.org/iaga-summit non-gaming sides of the industry. Alongside the wide-ranging display of latest industry innovations will be a conference, the Macao Gaming Summit, at which speakers will discuss both land-based and online 11|13 August 2015 gaming business opportunities throughout Asia, regulatory issues and Australasian Gaming Expo gaming best practices. www.macaogamingshow.com Sydney Convention and Exhibition Centre, Sydney, Australia

Featuring more than 180 exhibitors across 15,600 square meters of exhibition space, the Australasian Gaming Expo (AGE) is easily the biggest event of its type in Australia and one of the world’s biggest. Visitors have long acknowledged that the world’s best and latest gaming and hospitality equipment is on show at the Expo. Entry is complimentary to gaming industry executives, courtesy of the Gaming Technologies Association. www.austgamingexpo.com

www.asgam.com 94 inside asian gaming MAY 2015