From glitzy NagaWorld to the gritty frontier casinos

Transcription

inside asian gaming
INSIGHTS
Sands China’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 casinos
www.asgam.com
COVER STORY
Contents MAY 2015
Cover Photo
Konstik | Dreamstime.com
INSIGHTS
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Putting Cambodia
on the Map
Among dozens of casinos in Cambodia,
NagaWorld in Phnom Penh—celebrating
its 20th anniversary this month—has
done the most to raise the kingdom’s
regional profile.
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
Drawing a New Crowd
38
The attention-grabbing products of SEGA SAMMY
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CREATION could lure a new breed of players onto
casino floors.
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.
Fallen Out of Favor
58
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 Gambling? No Problems
Prof. I Nelson Rose examines the regulatory challenges
faced by the US online gaming industry.
BRIEFS
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Rough Around the Edges
90
Regional Briefs
Ready or not, Donaco International’s
purchase of Star Vegas Casino in
Poipet puts Cambodia’s border
casinos in the spotlight.
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International Briefs
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Events Calendar
Contents
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G2E ASIA 2015
Showcase of Solutions
Adversity presents a very real
opportunity for the companies
exhibiting their wares at this
year’s show.
Pursuit of Perfection
GPI makes casino currency safer,
stronger and better looking.
63
Weike shows off an engaging
Home-Field Advantage
lineup of new jackpots and
standalones.
66
Aristocrat reaffirms its position as
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NOVOMATIC’s new products fuel its
69
Scientific Games’ portfolio is
unmatched for its breadth and
sophistication.
with its eye-catching e-tables.
Gaining Ground
74
DLV’s new cabinet and multigame
package have clear regional appeal.
Floor Filler
75
LT Game’s products will be prominent
at the next wave of Cotai resorts.
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new premium bilingual titles.
79
Upgrades All Around
Matsui Asia’s all-new series of
innovative gaming chips.
inside asian gaming MAY 2015
Branching Out
In addition to testing and certification,
GLI does so much more.
Enhanced Portfolio
80
JCM promises operators deeper
connections with their customers.
Currency Revaluation
81
Abbiati showcases new designs for
its secure casino currency.
Fortune’s Favored
82
Konami launches an array of new
games designed for Asia.
Stronger Together
Off to the Races
72
Alfastreet pushes the envelope
76
Stellar Standalones
78
Ainsworth has a strong lineup of
Igniting Expansion
accelerating regional growth.
automated payment systems.
Asserting Dominance
Asia’s pre-eminent slot-maker.
Best Acceptance
77
CPI’s comprehensive portfolio of
84
Quality Matters
Giesecke & Devrient’s cash
processing systems reign supreme.
Strength in Unity
86
IGT’s expansive exhibit is developed
specifically for Asian players.
Ramping Up
88
Aruze’s new games provide fresh
impetus for its regional growth.
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Putting on the Ritz
Interblock’s e-tables have an
unmistakable emphasis on luxury.
MAY 2015 inside asian gaming
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EDITORIAL
Gazing Into the Abyss
And when you gaze long into an abyss, the abyss also gazes into you.
— Friedrich Nietzsche
A
Publisher
Kareem Jalal
Director
João Costeira Varela
Editor At Large
Muhammad Cohen
Contributors
Paul Doocey, John Grochowski, James Hodl,
Matt Pollins, I. Nelson Rose
Graphic Designer
Rui Gomes
Administrative Assistant
Latte Iao
Photography
Ike, Gary Wong, James Leong,
Wong Kei Cheong
Inside Asian Gaming
is published by
Must Read Publications Ltd
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ISSN 2070-7681
Inside Asian Gaming
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s the stocks of Macau’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
outlook 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 Galaxy Macau,
scheduled for a 27th May unveiling—to go down to the wire, not to mention floating the suggestion of
capping the number of visitors allowed into the tiny city, which is straining under the load of well over
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.
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
crackdown, the weakening China economy and tightening of illicit fund flows out of the country, along
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,
who are increasingly drawn to more exotic and experience-rich holiday destinations, and, it seems, like
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—
has become somewhat irrelevant following the precipitous drop in demand that has left hundreds of
gaming tables idle around the city. Shuffling tables out of existing properties into new ones is looking
increasingly like the best way for operators to manage capacity. The latest consensus view is that
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
EGMs. Clearly one result is a major opportunity for EGM suppliers to fill the gaps where tables should
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
good intentions, but it hadn’t been thought out.” After all, a visitor cap would seriously hinder the
hoped-for diversification of the local economy. Mr Adelson offered an example of how it would affect
the vaunted MICE—meetings, incentives, conferences and exhibitions—industry: “I would never, as an
organizer, book an event in Macau if I knew there was a possibility that the guy who came through the
[border] before me was the last guy [who would be allowed in].”
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
be turning. Renowned Swiss investor Marc Faber, one of the world’s most noted market contrarians,
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
Macau-related gambling shares.”
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
struggled to keep pace with demand. The real growth now will have to come from the city’s non-gaming
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
gaming revenue to many times that of the Las Vegas Strip, surely it could do the same for its hotel,
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’ nongaming dollars.
Kareem Jalal
www.gamingstandards.com
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We crave your feedback. Please email your comments to [email protected]
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Cover Story
Cambodia
on the Map
Putting
Among dozens of casinos in
Cambodia, NagaWorld in Phnom
Penh has done the most to raise
the kingdom’s regional profile
By Muhammad Cohen
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C
ambodia doesn’t often appear on regional leader
boards, but it tops Southeast Asia when it comes to
number of casinos. The kingdom hosts some 60 of
them, most of which are small operations along its
borders, but Cambodia also has ambitious operators
traded on major exchanges poised to fuel further growth, including
NagaCorp, a top performer on Hong Kong’s Hang Seng Index
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
among Cambodia’s border casinos.
Cover Story
Even though Cambodia doesn’t border China, geography favors
its gaming industry. The kingdom is wedged between Vietnam and
Thailand, countries with a combined population approaching 200
million with no legal casino gambling open to their citizens unless, in
Vietnam, they also hold foreign passports. Cambodia has similar rules,
though enforcement is a far cry from Singapore or Vietnam, where
everyone must present a valid passport or national ID card for entry.
Relaxed regulation is part of Cambodia’s gaming environment.
Coming out of the dark times of the Khmer Rouge regime that
massacred an estimated two million people and devastated national
institutions, followed by Vietnamese occupation, the new government
institutions established in the 1990s had more important issues
than establishing a comprehensive casino regulatory framework.
Rules have arisen largely ad hoc, although Cambodian authorities
say national casino legislation could be drafted this year. Gaming
taxes are assessed monthly per machine and table with no revenue
component. For busy casinos, that means effective tax rates in the
single digits. For opposition politicians, it means casinos are an
untapped potential revenue source.
Casinos have also helped make tourism a plank in Cambodia’s
economic revival, providing both attractions and service jobs
where experience rather than academic credentials matter most for
advancement. Cambodia’s GDP grew 7% last year, the second-best
performance in Asia, behind China, and since 2000 the kingdom has
been the sixth fastest growing economy in the world, according to
Hong Kong’s Political and Economic Risk Consultancy.
“Business is booming,” Global Security Services Managing
Director John Muller, working in Cambodia since the early 1990s,
says. Tensions between Vietnam and China and internal political
conflict in Thailand have spurred greater foreign investment interest
in Cambodia, he notes, abetted by government investment in
infrastructure, much of it financed by China, a strong ally of Prime
Minister Hun Sen, who has held power for 30 years.
Hun Sen’s Cambodian People’s Party had its parliamentary
majority reduced in the 2013 election. Post-election political and labor
strife brought barbed wire to the streets of Phnom Penh, though pay
raises and moves toward reform and combating corruption have
calmed the situation. “Cambodia is a country that still has huge
political risk,” Spectrum Asia CEO Paul Bromberg says. “Hun Sen
and his party feel they’ve done so much for the country, they can’t
understand why many people aren’t happy.”
PERC assesses business risk in Cambodia for this year slightly
higher than for 2014, despite the easing of border tensions with
Thailand and increased internal stability. Even if the opposition
wins the 2018 election, economic policies are likely to remain
largely unchanged, according to multiple observers. PERC attributes
increased business risk to a weak educational system, challenged to
produce a sufficiently skilled labor force to meet business demands.
PERC also sees risks to tourism from internal factors in Vietnam,
Thailand and China. Nevertheless, Cambodia’s GDP looks set to
grow at 7.5% this year, likely the fastest rate in Asia. It’s a heady brew
that continues to nourish the gaming industry.
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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Cover Story
“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,
just downstream from its confluence with the Sap River and mighty
Mekong, where it began gaming operations 20 years ago this
month. The company holds a 70-year casino license—Cambodia’s
other casino are generally licensed on an annual basis—that runs
through 2065, with a 41-year monopoly within a 200 kilometer (120
mile) radius of Cambodia’s capital Phnom Penh that expires in 2035,
with stipulated exclusions for border areas, colonial highland retreat
Bokor and Sihanoukville, Cambodia’s main port and a beach resort.
It wasn’t until 2003 that NagaCorp operations moved onshore
with 44 tables and 211 machines at NagaWorld’s present location
500 meters further upriver, less than a kilometer south of Cambodia’s
Royal Palace and the city’s bustling riverside promenade. The
company’s $95 million initial public offering in Hong Kong—which
saw that exchange’s first listing of a gaming company, prior to the
listing of all of Macau’s operators there—provided funds to complete
the first phase of the hotel and entertainment complex. Controlling
shareholder and CEO Chen Lip Keong, a Malaysian medical doctor
and entrepreneur who serves as an economic adviser to Hun Sen,
could have financed the project out of his own pocket. “We went to
the marketplace to become an international company,” Mr McNally,
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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Cover Story
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
into other opportunities in Indochina.”
NagaWorld has expanded over the years into the biggest gaming
resort in Indochina with gross floor area of 113,307 square meters
(1.2 million square feet). It currently has some 200 tables, 1,670
gaming machines, 18 food and beverage outlets and 700 five-star
hotel rooms with rack rates starting at $105 a night. It also has
banquet and meeting space, entertainment in the lobby as well as on
the gaming floor and a spa with a whirlpool bath in every treatment
room. Total investment has been around $300 million; Mr McNally
says a similar facility in Macau would cost well over $1 billion. Naga2,
under construction across the street, will double capacity when it
opens in 2017. Dr Chen is financing that $369 million project, which
NagaCorp will acquire upon completion in exchange for company
shares. Meanwhile, NagaWorld keeps evolving and innovating.
Focused on serving low-end junkets in its early days, NagaWorld
set its sights on serving the mass market after its hotel and
entertainment wings were completed in 2008. The transition to mass
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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proved presecient when in early 2009 Cambodian authorities shut
down Phnom Penn’s slot parlors, which had operated thousands of
machines; NagaWorld’s slot revenue increased from $3.1 million in
2008 to $34.3 million in 2009. NagaWorld debuted dealer-assisted
electronic multi-game terminals in 2011.
CELL DIVISON
NagaWorld also added what it calls casino cells with unique décor
and themes, including the China Garden with pagodas and live
plants, NagaRock with disco lights and dancers, and 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. The ground level main floor has the
widest variety of games, including stud poker with minimum bets as
low as $5, $10 roulette tables, blackjack at $20, plus Vietnamese card
games at $40. (US dollars circulate commonly alongside the local
riel.) Baccarat, which accounts for 85% of mass table revenue, has
minimum bets of $100 for what executives call “squeeze games,”
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Cover Story
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
gaming revenue. More importantly, after two recession-impacted
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%.
“In 2012, we realized we had to step up on the VIP side,” Mr
McNally says. “To be a full service property we needed to upgrade
our gaming facilities and VIP amenities.” Competitive pressure from
regional competitors contributed to that decision.
Late that year, NagaWorld opened penthouse suites—modern
duplexes with terraces overlooking the rivers that would fit proudly
into Macau or even Manhattan. 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.
NagaCorp has been out in front of Cambodia’s government
on anti-money laundering measures. “AML is an issue because we
knew it would be an issue with international financial companies
and other destinations,” Mr McNally says. “As a company looking to
expand elsewhere, we emphasize corporate governance and a clean
operation.” NagaCorp regularly commissions independent audits of
its AML procedures, including one last year.
A supplementary stock offering in March 2013 raised $156
million to develop direct premium and VIP business. Some funds
plans to leverage its frontier market experience with NagaWorld in
Cambodia and its connections with China for the Russia project.
“The idea is to reach out to 435 million Chinese living within a
two hour flight,” Mr McNally says. China International Travel Service
(CITS) and China Duty Free Group, also working with NagaCorp on
its expansion of NagaWorld, are also cooperating on the Vladivostok
project, along with architect Paul Steelman, designing the Phnon
Penh property’s NagaCity Walk retail area.
Flight times to Vladivostok are less than three hours from the
capitals of Japan, which has no legal casinos, and South Korea, where
citizens can only play at a single, remote location that’s a four-hour
drive from Seoul. But NagaCorp says its Vladivostok project will
focus on the China market.
“It’s the China side we know, where we have the knowledge
and expertise,” Mr McNally says. “How quickly we ramp up
is a question of the effectiveness of our China operation.” He
forecasts payback on the first phase within four years. He says the
resort could open ahead of the 2018 projection, though the master
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Bassaka Air will begin twice weekly service to Macau this
month and flights to China are expected to begin in July.
went toward hardware including adding VIP rooms, limousines
and a private hangar under construction at Phnom Penh’s airport.
But much was seed money for Naga’s Junket Incentive Program
that offers promoters a 70% split of revenue, rising depending
on roll, compared with Macau’s typical junket share in the mid40s—any more than that would not be feasible in Macau given the
40% gaming tax there. By sharing rewards and risks with junkets,
NagaWorld has been able to raise VIP maximum bets to $200,000.
To support the incentive program, it added VIP rooms with a total
of 47 tables last year.
VIP PAYOFF
“VIP was our big story of 2014,” Mr McNally says. “Our VIP strategy
is paying off.” After a long courtship, NagaWorld brought in its first
Macau junket in August, Asian Nations, a group of agents affiliated
with other Macau junkets, NagaWorld executives say. The impact was
immediate, with rolling volume up 47% year on year in the second
half of last year, and Asian Nations contributing $627 million in a little
more than four full months of operation, according to Union Gaming
Research Macau. NagaWorld, which opened a marketing office in
Macau last year, is seeking agreements with other junket promoters.
“We don’t have the cosmopolitan feel of Singapore, but the feedback
plan is still awaiting approval from Russian authorities to allow
construction to begin.
On a visit to the region last year that featured meetings with
government officials, NagaCorp CEO and controlling shareholder
Chen Lip Keong said, “We are serious about the gaming zone
development project, but it should be understood that the
construction of a casino should be conducted in close cooperation
with the public sector. We have an extensive experience in the
successful development of tourist destinations in Cambodia, and we
are ready to bring it to Primorsky Territory.”
NagaCorp won’t be alone in Primorsky. First Gambling Company
of the East, a consortium led by Lawrence Ho-controlled Summit
Ascent, is scheduled to open a casino in the area later this year.
Russian casino operator Royal Time Group is also building in the
region. A study by Global Market Advisors Partners Steve Gallaway
and Andrew Klebanow forecast gaming revenue in Primorsky to
reach $1.2 billion within three years of resort openings and $5.2
billion within ten years.
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Cover Story
is positive” from Macau visitors, Mr McNally says. “Cambodia has its
own unique attractions.” Compared to some other regional gaming
destinations, “It’s a better fit actually for mainland Chinese.”
Last year, VIP roll grew 35% to $6.2 billion and VIP revenue
increased 41% to $188 million. Even without Asian Nations’
contribution, second-half VIP roll jumped by more than 20%
because, unlike Macau, NagaWorld was getting most of its VIP
revenue from Southeast Asia. Morgan Stanley estimates China VIP
business contributed less than 5% of NagaCorp’s second-half gross
profits, with 22% from other VIPs and 73% from the mass market.
On the other hand, the relatively small contribution from
China provides ample room for growth, particularly under current
conditions. “The downturn in Macau offers the group opportunities
to further penetrate the Chinese gaming market in both the VIP and
mass gaming segments, by being able to offer attractive terms to
junket operators and agents as a result of NagaWorld’s low cost
structure,” the company stated in its earnings release.
Macau’s largest junket promoter, Suncity Group, is expected to
begin sending customers to NagaWorld this month. Morgan Stanley
Asia estimates Suncity will roll $200 million monthly at NagaWorld.
First quarter 2015 VIP roll increased 79% to $1.7 billion and revenue
doubled to $65.5 million. For the year, Morgan Stanley estimates VIP
roll will grow 54% to $9.6 billion and generate an incremental $21
million in gross VIP profits.
A revamp of NagaWorld’s rooftop pool area opening later this
year will add about a dozen VIP tables, as well as mass gaming. This
casino cell will allow players to enter in swimwear; NagaWorld won’t
say what its staff will wear.
These changes are just a prelude to Naga2, under construction
100 meters (110 yards) away across a major roadway. 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.
Executives suggest one tower may be dedicated exclusively to VIP
guest rooms outfitted with private gaming tables.
The downside to increased VIP play is margin erosion. Net
profit margins fell from 40.7% in 2013 to 33.7% last year. Margins
on VIP play also fell three percentage points to 37% due to increased
incentives to junkets. Analysts believe regional competition from
the Philippines, South Korea and Vietnam might drive up costs
and put further pressure on margins. Mr McNally concedes, “VIP
is demanding. It’s high-end costs. It’s not something where you
can have one foot in the water. Margins [on VIP] are not what they
are on the mass market side. It’s the mass market that keeps your
foundation solid,” he says. “We want robust junket representation,
but mass market is still key.”
AN EYE ON CHINA
NagaCorp is also looking toward Chinese players to boost the mass
segment. Last year it purchased a pair of A320 airliners that can seat
up to 180 passengers to supplement its two Gulfstream private jets.
The aircraft have been leased to independently operated subsidiary
Bassaka Air, which is currently flying between Phnom Penh and Siem
Reap, the site of Angkor Wat, the thousand year old Buddhist temple
complex that’s Cambodia’s top tourist attraction. While the airliners
can be used for VIP charters, NagaCorp executives say the main
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
secure tenants for the 18,000 square meter retail area and operate its
own outlet occupying at least 2,400 square meters. “From a strategic
standpoint, we developed the relationship with China Duty Free with
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
560,335, as overall arrivals grew 7% to 4.5 million, more than double
the level five years before. That comes on top of Chinese arrivals
surging 38.7% in 2013 to take second place behind Vietnam. In its
annual report, NagaCorp writes that continued growth from China
and other “gaming-centric countries is one of the drivers of our
business growth.”
To better accommodate Chinese visitors, NagaWorld aims to
“Chinify” the resort, a drive that goes well beyond decorations for
Chinese New Year and adding items to the breakfast buffet, according
to Managing Director for Corporate Affairs Rob Cho. Since January
last year, NagaWorld has offered Mandarin classes for staff with prize
competitions for the top students.
Overall, NagaWorld, which currently has 5,400 employees in
Cambodia, will need more than 10,000 by the time Naga2 opens. “We
have a unique value proposition in HR, a lot of middle management
opportunities,” Mr Cho, a former Hong Kong banker, says. “We
The swinging NagaRock premium-mass area
NagaWorld debuted
dealer-assisted
electronic multi-game
terminals in 2011.
need 600 solid managers in three years. We have 300 and need to
localize.” NagaWorld offers the opportunity to “leapfrog people in
management experience.”
To help bolster the hospitality sector workforce, NagaCorp
created Naga Academy in 2012. Naga offers three- to six-month
training programs in eleven areas, from food and beverage service to
audiovisual to marketing and sales. Last year it trained nearly 1,000
interns. NagaCorp hired the majority and assisted the rest to find
jobs elsewhere with a 100% success rate.
Other bottlenecks are proving more difficult to resolve. The
company had hoped to begin flights from China and Macau late last
year, but red tape has delayed this key growth initiative. NagaCity
Walk was due for completion at the end of last year, but has been set
back by construction issues. The company now anticipates finishing
construction in the third quarter, with a first-quarter opening next
year. Meanwhile, NagaCorp’s staff costs last year increased 40% to
$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
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.
22
23
Cover Story
Rough Around
the Edges
Ready or not, Donaco
International’s purchase of
Star Vegas Casino in Poipet
puts Cambodia’s border
casinos in the spotlight
By Muhammad Cohen
24
Y
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
checkpoint at Aranya Prathet, where some 5,000 people
cross into Cambodia daily. After passing an arch crowned
in the style of Buddhist stupas, travelers must walk some 200 meters
through the heart of the strip to reach Cambodia’s immigration post
and receive their visas.
The largest of Cambodia’s 14 border casino areas—six on the
Thai side and eight on the Vietnam side—Poipet serves as a gateway
from Thailand for trade and travelers to the ancient Angkor Wat
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
casino gaming not available at home.
25
Cover Story
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 Australialisted 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
Partner Andrew Klebanow says. “Macau is a five-star experience
that’s a two-and-a-half hour plane ride away.”
But Mr Poh believes Poipet has enduring appeal for Thais even
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
accept Thai baht, which also serves as a plus point over other casinos
in the region.”
CRACKDOWN BUILDUP
Thailand’s military government, installed last May after years of
political bickering, has cracked down on Bangkok’s underground
26
Thailand’s military government, installed
last May after years of political bickering,
has cracked down on Bangkok’s underground
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.
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.
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,
with 35 tables and 100 machines, book daily revenue of about
$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
at low stakes.
Bavet is the largest of eight Cambodian border areas catering to
Vietnamese players, who can’t play at casinos back home unless they
hold foreign passports. But streets in Bavet feel desolate, and it’s
difficult to tell whether many casinos are open or closed. Ownership
changes and bankruptcies are frequent. Stories of casinos unable
>>
28
Bavet is the largest of eight Cambodian
border areas catering to Vietnamese
players, who can’t play at casinos back
home unless they hold foreign passports.
But streets in Bavet feel desolate, and
it’s difficult to tell whether many casinos
are open or closed.
29
Cover Story
Thai entertainers for holidays shows, though Mr Bumrerjit laments
Poipet’s lack of family attractions.
The two properties run 20 buses daily from Thailand, the majority
from Bangkok and a couple from the resort town of Pattaya, that bring
around 600 visitors, upwards of 700 on weekends. Other operators
provide similar services. Most buses leave in the early morning and
depart from the Thai side of the border around 8pm, with a few buses
departing Bangkok late afternoons and leaving Poipet around 8am.
The border closes at 10pm and reopens at 6am.
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
B30,000, about five times the average of bus customers. VIPs that
deposit B300,000 (around $10,000) get complimentary pick up,
room and meals. Junket promoters are all from Thailand, and rolling
commissions can reach 2%.
Holiday Palace Slots Manager Halim Lim says that property gets
30-50 VIPs a week from Bangkok, but the revenue split is “random”
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
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.
30
Donaco International is
betting $360 million on
Star Vegas, and the broader
proposition of Poipet’s
continued prosperity and
growth. “It’s been a very
successful gaming strip. Star
Vegas is the most successful
property on that strip,”
Donaco Executive Director
Ben Reichel says.
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
illegal border casinos and cockfights entice Vietnamese to become
loan sharks and prostitutes and that Cambodian authorities don’t
cooperate sufficiently with Vietnamese law enforcement.
The campaign seems to be working. Vietnam claims the number
of people leaving to gamble via one border crossing fell from 500 to
150 daily. Cambodia seems unmoved, approving licenses for three
more border casinos in March.
31
Cover Story
business with players checking in B300,000 per visit.
Holiday Palace has 350 rooms with rates starting at B1,800
per night that are the closest thing in Poipet to five-star, plus the
widest range of facilities, including six restaurants, a spa, salon, gym
and duty free shop. “Other casinos are cheaper but don’t have the
quality,” Mr Lim says. Holiday Poipet is adding 230 rooms, scheduled
to open next month, but Mr Lim knows that won’t be enough. “The
hotels are full on weekends,” he says. “There should be 5,000 hotel
rooms in Poipet”
SIMPLY THE BEST
Mr Lim contends, “For hotel rooms, we are the best.” But he voices
the consensus opinion that “Star Vegas is the best casino in Poipet.”
Donaco International is betting $360 million on Star Vegas, and
the broader proposition of Poipet’s continued prosperity and growth.
“It’s been a very successful gaming strip. Star Vegas is the most
successful property on that strip,” Donaco Executive Director Ben
Reichel says.
The company’s investor presentation says Star Vegas, located at
the far end of the strip leg paralleling the border, had 2014 EBITDA
32
of $60 million from its 385 hotel rooms, 109 gaming tables and 1,264
gaming machines, 288 owned outright and the rest on revenue share
deals. “Star Vegas in Poipet is, in our view, a best-in-market asset and
is the only resort in Poipet for which an argument can be made that
it is approaching international standards,” Union Gaming Research
Macau wrote in a positive review of the deal after it was announced
in January.
Donaco foresees little capital outlay required at Star Vegas over
the next five years, “except buying more slot machines as the business
expands,” Mr Reichel says, “The public areas are much higher
quality than other casinos,” with fresh carpets, high ceilings—some
featuring the property’s star logo—clean lines, and a performance
lounge that screams potential. The property, opened in 1999, also
has a swimming pool, its own power infrastructure, water supply
from a lake with purification and recirculation facilities on site, and
even its own fire engine.
Hotel rooms, with rates from B850 to B1,500, aren’t five star and
haven’t been a focus under outgoing ownership, Mr Reichel says.
“The hotel just has to meet market expectations. They make very little
money from rooms. They’re almost all comped.”
33
Cover Story
FAMILIAR DIVERSIFICATION
Star Vegas will serve as a bookend to Donaco’s Aristo International
casino hotel in Lao Cai, Vietnam, where players from neighboring Yunnan
Province walk in from China with their ID cards and play in Chinese
renminbi. For Donaco, the acquisition is about diversification—a Thaifacing property complimenting a China-facing one—not synergies, but
there are key similarities between the properties.
“Operating conditions are very similar to what we know in
Vietnam,” Mr Reichel says. “It’s an area that Thai players can cross
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
and casino staff are all ex-Genting, Genting trained, so the operating
procedures are the same as Aristo.”
On the regulatory side, Mr Reichel concedes Cambodia’s regime
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
government doesn’t tax you on a percentage of profits,” he says.
“Our assumption is that taxes will increase gradually. From such a
low base, it’s still going to be very minimal.”
On money laundering, Mr Reichel says, “Cambodia has been a
focus country for Financial Action Task Force, the inter-governmental
group that looks after money laundering. They’ve acknowledged
Cambodia has made significant strides in recent years. They’ve got
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
there in terms of the structure.” He adds that Donaco will monitor
the issue closely and ASX, the Australian stock market, didn’t raise
concerns about the deal.
Donaco rightly calls the acquisition “transformational.” From
a single-asset enterprise—Donaco completed selling off gaming
technology assets last year—the deal gives it geographical and
Everyone Wins
With Revenue Share
It’s a casino floor truism that someone wins
and someone loses. But revenue share arrangements on gaming
machines or tables can create a win-win-win situation for operators,
service providers and players.
Revenue share happens throughout the gaming world but is
particularly attractive to operators in smaller markets. Casinos get
machines for the floor without capital outlays and an opportunity
to see which games customers like. Machine providers get steady
revenue streams and product exposure. And players get a wider
range of game choices.
“The distributor brings in the machine, pays the capex cost,
34
Spectrum Asia CEO Paul Bromberg says
there are two major risks faced by Poipet’s
casinos: “First, Cambodia-Thailand border
conflict: border skirmishes could close
the border overnight as has happened
before. Second, the Thai government could
legalize casino gaming in Thailand. That
is unlikely to happen in the foreseeable
future, but it would kill Poipet overnight.”
market diversification. The deal is also the equivalent of a minnow
swallowing a whale. Donaco estimates the deal will increase its 2015
revenue nearly five-fold to A$228.3 million ($177.3 million) from A$38.8
million, quadruple EBITDA to A$99.9 million and boost net profit to
A$80.7 million. Looking at it another way, with the completion of the
merger, Star Vegas would account for 84% of Donaco’s estimated
2015 revenue, 77% of EBITDA and, after deducting interest costs
related to the acquisition, 80% of net profits.
BIG DEAL
“The Star Vegas deal is a lot bigger than a lot of people were
expecting,” after the company announced last year it was negotiating
an unspecified Cambodia acquisition, Mr Reichel says. “A lot of
people in the industry didn’t realize how much money Star Vegas
makes. The total deal size is $360 million, but it’s important to
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,
Cambodia, where nearly 1,000 of the 1,300 machines are on revenue
share deals. “From the operators’ perspective, it’s an opportunity to
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
Slot Manager Halim Lim says. “For machines not proven in the
market, we try them and have the option to buy.”
Revenue share deals take many forms. Where regulations permit,
casinos with excess or underperforming table capacity can offer
tables to outside operators, usually with an exclusive on a particular
game, on a percentage or lease basis. NagaCorp reported receiving a
$15 million “EGM Entrance Fee” in 2013 from an operator for placing
200 revenue share machines at NagaWorld in Phnom Penh.
EGM net win splits are typically 70% to the casino, 30% to
the provider. Rates vary depending on whether the casino or share
operator staffs the slot area, casino traffic and types of games.
>>
35
Cover Story
To finance the transaction, Donaco secured a $100 million loan
at 6.85% from Taiwan’s Mega International Bank. Mega Bank’s
cataloguing of assets to secure the loan has delayed the deal’s
closing from April to July, Donaco says. The company raised $100
million through an equity offer to shareholders and will issue 147.2
million shares, valued at $120 million, to the seller, Thai businessman
Somboon Sukjaroenkraisri and his son Lee Bug Tong.
“It could almost be seen as a backdoor listing of Star Vegas,
since the business we’re acquiring is much larger,” Mr Reichel says.
“But the critical point is that the vendor is only getting 18% of the
company. Usually in a backdoor listing deal, the vendor would get
80%. So we think it’s a very good deal for our shareholders and that’s
why it’s been so widely supported.” The shareholder vote in March
showed more than 99% approved the deal. Union Gaming notes
the purchase price of six times EBITDA is a discount to its 8.5 times
earnings valuation for NagaWorld.
Not everyone is convinced it’s a great deal, though. “That’s
a large amount of money to pay for a property facing two major
risks,” Spectrum Asia CEO Paul Bromberg says. “First, CambodiaThailand border conflict: border skirmishes could close the border
overnight as has happened before. Second, the Thai government
could legalize casino gaming in Thailand. That is unlikely to happen
in the foreseeable future, but it would kill Poipet overnight. If the Thai
patrons don’t have to drive three-and-a-half hours there, they won’t.”
Donaco feels it has mitigated its risks through the sale agreement
that includes a two-year guarantee of $60 million in EBITDA, a sum
that would nearly cover Donaco’s cash outlay. The seller is also signed
to a two-year management contract. “It’s a transition period for our
team to learn every detail of the business, relationships with junkets,
kind of a handover period,” Mr Reichel says. There’s no management
fee for the seller, but a potential percentage of profits if the earnings
target is met.
There’s also the question of growth for Star Vegas and Poipet
overall. “There are eight casinos that have been doing this for 15
years,” Global Market Advisors’ Mr Klebanow says. “Some new
operator isn’t going to do anything they haven’t tried already.”
“Star Vegas is a very well established business but we think it’s
got plenty of growth in it,” Mr Reichel replies. He reports Donaco has
talked to Malaysian and small Macau junket promoters about visiting
Star Vegas, but admits bringing in non-Thai players would require
changes, such as Mandarin-speaking dealers and Chinese food.
“We see organic growth from upgrading of the road and rail
infrastructure from Bangkok,” Mr Reichel says. “By end of the year,
that should be a pretty comfortable two-and-a-half hour drive.”
Transport improvements are part of the larger ASEAN Economic
Community initiative to allow free movement of goods between the
ten countries of the Association of Southeast Asian Nations. Equally
important, the initiative should also lead to 24-hour border opening
by year’s end. Thailand is also considering a special economic zone
on its side of the border to encourage more business development
along what’s already a thriving trade route.
“On the whole we think Poipet has quite a bit of growth ahead
of it,” Mr Reichel says. “Unless you go under the assumption that
in Thailand gambling is going to be legalized, which we don’t think
is a possibility in the short term or even medium term.” Donaco has
$360 million riding on that opinion.
Revenue share happens throughout the
gaming world but is particularly attractive
to operators in smaller markets. Casinos get
machines for the floor without capital outlays
and an opportunity to see which games
customers like. Machine providers get steady
revenue streams and product exposure. And
players get a wider range of game choices.
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
International, Cambodia’s Golden Tree and Australia’s Indo Pacific
Gaming, plus EGM manufacturers.
“Operations gives us the chance to test the market out properly
and give floor space and time for players to familiarize themselves
with the game,” Weike Gaming Chief Operating Officer Ray Poh says.
“With casinos in the region adopting the strategy of three month
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
make a lasting impression on them. We’ve had instances where
games being left on the floor for over six months gradually increase
their performance to be able to hold their weight or even perform
better than the floor average.”
36
37
Feature
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
W
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, massmarket 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
came into effect on all main-floor casino areas from October.
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
deciding where to go next, and Macau apparently isn’t living up to all
their new expectations. In particular, China’s rising young generation
of consumers—those born after the mid-80s in the era of economic
reform and the country’s opening up to the world—are looking for
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
going to supplant.
The upcoming wave of resorts in Macau’s Cotai district promise
to be among the most spectacular ever seen, replete with extensive
world-class leisure offerings that should reignite interest among
discerning Chinese travelers and, if Las Vegas is any guide, help
elevate Macau into a regional entertainment hub.
38
Takashi Maekawa, vice president of SEGA SAMMY CREATION’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.”
Takashi Maekawa | vice president of SEGA SAMMY
CREATION’s Business Management & Development Department
Sic Bo Bonus Jackpot
Feature
On Sic Bo Bonus Jackpot, the dream
of winning big is fueled by the four-level
Cai Shen Progressive Jackpot.
There are obvious benefits to having a
backer like SEGA SAMMY HOLDINGS.
“It gives us access to a strong,
experienced development team that
provides considerable help in producing
new games with new technology,” says
Takashi Maekawa.
If all goes to plan, in the very near future, Cotai’s sprawling new
resorts will be full of guests who’ve come for the entertainment,
dining, shopping and MICE—meetings, incentives, conferences and
exhibitions—but aren’t necessarily keen on casinos.
The new casinos, meanwhile, will feature a radically different
product mix to the prevailing norm in Macau. There’ll be a
conspicuous dearth of gaming tables, with the government allocating
only a fraction of the tables originally expected to each property.
Machines, including e-tables, will have to fill the gap, and in the
process will rise to prominence.
Within the machine mix, it would behoove operators to include
some products of the sort developed by SEGA SAMMY CREATION
in order to get Macau’s new breed of visitor interested in
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
big opportunity for us because we can help operators fill up their floor
space with something that’s very different, very new, very appealing.
And we believe we’re able to help support Macau in maturing its
overall atmosphere as an entertainment destination.”
It was either prescience or luck that, well ahead of the unfolding
of Macau’s current predicament, led SEGA SAMMY HOLDINGS to
establish a new division in June 2013 with a mandate to produce
revolutionary electronic gaming machines imbued with fun and
excitement. Leading the charge is Hisao Oguchi, a legendary video
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
new entity.
At Mr Oguchi’s disposal are many of the talented game
developers he worked with at SEGA, who were instructed to throw
out established game concepts and come up with entirely new ones
while incorporating his basic development principles: “Game rules
should be simple. In the simplicity of the games there should be a
dream of winning big and also fun and excitement in the anticipation
of the outcomes.”
At last year’s G2E Asia, SEGA SAMMY CREATION unveiled its first
three products, which, beyond their sheer scale, also stood out with
their elegant looks and high-quality finishes. They’re all also “designed
specifically to appeal to players in Asian or Chinese countries, with
dragons and other such elements,” notes Mr Maekawa.
39
Feature
The selection of female dealers on the
video baccarat game ranges from a girlnext-door type to more exotic, risqué
choices, with video images of the models
from the wrist up seamlessly combined
with a clever computer rendering of their
hands and the cards they’re holding.
On Sic Bo Bonus Jackpot, the dream of winning big is fueled
by the four-level Cai Shen Progressive Jackpot, which all players are
eligible to win without any side bet necessary. The crowd-pulling
elements come in the form of dice floating on a cushion of air, along
with massive signage and results displays.
The selection of female dealers on the video baccarat game ranges
from a girl-next-door type to more exotic, risqué choices, with video
images of the models from the wrist up seamlessly combined with a
clever computer rendering of their hands and the cards they’re holding.
The game allows the player to place bets on five different tables, and
the main unit has separate screens enabling players to follow the
action on their table of choice, along with their preferred dealers.
The massive big-wheel game consists of three concentric rings
with numbered positions around which a ball spins. Unlike other
big-wheel games, it features additional positions that allow the ball
to progress to the next ring. Each successive ring features larger
payouts and higher-level progressive awards to build excitement
and anticipation. The play is easy. Simply place a wager on a single
number. No side bet is necessary, but larger bets have a greater
chance of qualifying for higher-level progressives.
The company recommends placing about 30 betting stations
40
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.
“These machines are very important for our company, basically to
show what we are capable of doing,” stresses Mr Maekawa. “Even if
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
for our products to gain traction in the market, but we’re sure that
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 like SEGA SAMMY
HOLDINGS. “It gives us access to a strong, experienced development
team that provides considerable help in producing new games with
new technology,” says Mr Maekawa. “Also, in terms of sales it helps
because a lot of people are familiar with the games SEGA provided in
the late ‘80s and ‘90s [through arcades and home consoles worldwide],
so it’s easier for us to actually talk to these people because they’re
usually interested in finding out what kind of products SEGA SAMMY
is going to provide in the gaming industry. It’s certainly given us a
chance to talk to operators directly. At least it gets our foot in the door.”
Another benefit of having such a big, established parent company
is it offers prospective customers an assurance of quality. “SEGA
obviously needed to achieve a high standard of quality to become a
global leader in amusement, and it’s also a requirement at Sammy
because pachinko, like gaming, is a very strictly regulated industry.
So we have that background of ensuring quality. The part that we
were lacking was the knowledge of gaming compliance, so we made
sure when we started this business that we had members on our
team with knowledge and experience from the gaming industry. So
while we set out to produce machines that look new, very different,
they’re not just a bunch of crazy machines and operators can feel safe
we make them based on quality and gaming compliance, and the
machines have a solid and secure backbone.”
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 longawaited first installation at a major casino is finally moving ahead in
the coming weeks.
Mr Maekawa is understandably pleased: “This is going to be a
huge year for us. The goal up to last year was getting product ready
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,
but people are questioning how it will perform when it’s on the floor.
“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
actually going to get feedback from the market which is going to help
us create new and better games.”
Visit SEGA SAMMY CREATION at G2E Asia Stand #965
The massive big-wheel game consists of
three concentric rings with numbered
positions around which a ball spins.
Unlike other big-wheel games, it features
additional positions that allow the
ball to progress to the next ring. Each
successive ring features larger payouts and
higher-level progressive awards to build
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.
41
Insights
The big wins for
Sands China are
the broadcast
events from the
property, such as
the Showdown
at Sands boxing
tournament, seen
by millions of
viewers in China
and beyond.
The Best
is Yet to Come
I
n the 1950s and ‘60s, Frank Sinatra and the other members
of the legendary Rat Pack performed regularly on small stages
and at dinner theaters in Las Vegas casino hotels. Tickets to
the shows, often including a sumptuous multi-course meal,
were either given away or priced far below break-even level.
The casinos bore the cost as a means to draw gamblers.
As the years went by, the approach to entertainment shifted under
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
driven out and replaced by public corporations intent on ensuring
transparency and generating shareholder value. Another factor was
the emergence of destination-scale resorts that drew a new breed of
visitor in search of a more diverse experience to that offered by the
casino hotels of old.
By the ‘90s, the concept of entertainment in Las Vegas had been
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 Katy Perry concert at
The Venetian Macao’s Cotai Arena provide huge marketing value as
well as a revenue boost to the property’s casino and other departments,
the approval of any such event must begin with an assessment of its
financial viability on a standalone basis. “Because obviously we’re
a public company,” notes Sands China Senior Vice President of
Marketing Scott Messinger. “We don’t want to actively lose money on
the event itself. We can’t, for example, say Katy Perry is going to attract
a lot of our casino customers, so we’ll factor in what the increase in
42
Sands China has been well ahead of
the curve in bringing entertainment
to Macau. Although the company
derives tremendous value beyond the
ticket sales from staging big-budget
extravaganzas, no event gets the goahead unless it’s deemed financially
viable on a standalone basis, as
Senior Vice President of Marketing
Scott Messinger explains
casino win will be, and say it’s OK if we lose a bit of money on the show
because we’ll make it up in the casino. But internally we do produce
models that suggest what we think the impact on gaming will be. More
importantly, what we think the ancillary lift will be on the property,
whether it be in terms of hotel sales, F&B and retail.”
Among major non-gaming departments, retail is a standout
for Sands China, with over 650 duty free shops across its Cotai
properties—including The Shoppes at Four Seasons, ranked the
Insights
43
Insights
highest-grossing mall in the world on a per square foot basis—having
become a major profit generator. To some extent, the company has
been ahead of the market with its entertainment initiatives, and Mr
Messinger acknowledges it has ploughed resources into “bringing
great entertainment here maybe before it became fashionable.”
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
decidedly fashionable for Macau’s casino operators to emphasize
their commitment to non-gaming offerings. Yet Sands China took
that commitment seriously from the outset. “It accelerated obviously
with the opening of The Venetian Macao in 2007,” says Mr Messinger.
“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
make Macau the capital of entertainment in Asia for Asians.”
That mission is supported by the rapidly evolving tastes of
China’s middle class. Chinese consumption patterns are poised for
a dramatic shift with the coming of age of the generation born after
the mid-80s in the era of economic reform and the country’s opening
up to the world. They’re westernized, savvy, and beyond gaming
and retail, will be hungry for world-class entertainment and dining
experiences. And that’s what Mr Adelson’s integrated resort model
promises to deliver. “It’ll be shopping, great dining, coupled with
With the current plunge in gaming revenue
and concern about receiving adequate
table allocations at their upcoming Cotai
resorts, it’s become decidedly fashionable
for Macau’s casino operators to emphasize
their commitment to non-gaming offerings.
Yet Sands China took that commitment
seriously from the outset.
International headliners who have graced the stage at the Cotai Arena include Rihanna, the Rolling Stones and Katy Perry.
44
45
Insights
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, Justin Bieber, 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, Super Junior, Big Bang,” adds Mr Messinger.
Pollstar, a trade publication devoted to the worldwide concert
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
Arena has appeared on the rankings, reaching 68th place last year. It’s
a very rigorous standard so it only includes actual cash ticket sales.
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
100. And we’re literally only 1,000 attendees below a major arena in
Las Vegas. So it’s kind of proof positive of the kind of programming
we’ve put into that venue.”
Of course, Macau still has a way to go before it can lay claim to
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
act. The coming expansion in the supply of high-quality hotel rooms
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 Cotai Strip, which
will make it more viable for people to stay over.”
The upcoming Cotai resorts will also elevate the city’s ambience,
creating the appropriate setting for an international entertainment
hub. Sands China’s new contribution to the landscape, The Parisian
Macao, is scheduled to open next year with a half-sized replica to the
exact bolt of the Eifel Tower.
Bringing Hollywood
Macau is increasingly featured in major film,
thanks in part to the efforts of Sands China
One of the less successful installments of the
James Bond Franchise, 1974’s The Man With the Golden Gun, sees
Roger Moore’s Bond coming to Macau in search of the gunsmith
who makes Scaramanga’s bullets. The Macau scenes were actually
shot on location, including one at the now defunct Macau Palace
floating casino.
There’s also a floating casino in the Macau depicted in the recent
Daniel Craig Bond outing, Skyfall, but it’s a hyper-stylized one filled with
impossibly elegant patrons and exists only on a studio lot. As Sands
46
“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.”
Sands China Senior Vice President of Marketing
Scott Messinger
Despite the uncertain prognosis for Macau’s gaming sector, for
its entertainment scene, as Frank Sinatra crooned in his last ever
song in public, it’s safe to say “The Best is Yet to Come.”
On the eve of Katy Perry taking the stage at the Cotai Arena, Inside
Asian Gaming spoke with Mr Messinger about Sands China’s expansive
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,
mysterious, and makes people want to know more.”
Las Vegas has long served as a popular backdrop for Hollywood
productions, with depictions of the Vegas experience ranging from the
classic sophistication of both the original 1960 Oceans 11 starring Frank
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
screen, with The Venetian Macao in particular providing the setting for
several productions. Shooting recently wrapped up on the Hong Kong
movie Return of the Cuckoo and Hollywood’s Now You See Me: The
Second Act. Mr Messinger had a personal role to play in bringing the
latter production to Macau. “On hearing that Now You See Me, which
was a global hit and performed very, very well in China, was going to do
a sequel, I went to Los Angeles and pitched to Lions Gate and Summit
Pictures the idea of coming to Macau. And it didn’t take a lot of pushing
because more and more the Hollywood studios are looking to do things
Insights
IAG: What are the differences between
booking Western acts and Asian ones?
It varies, obviously. For the Western acts,
you have to wait for the tours to come
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
and bring that rather elaborate stage setting
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
Marina Bay Sands. So if Katy is coming,
we’ll see if we can do it in Singapore as well
as here, so we’re bidding for multiple shows
rather than just one show here, which
perhaps give us some leverage.
Because of what we’ve been doing in
Macau, we get calls to let us know about
tours forming in the region and ask us
whether we’re interested in booking a
particular artist that’s passing through.
Cantopop legends
Eason Chan and Alan Tam
and Hacken Lee (right)
K-pop sensations Super Junior
and Girls Generation (right)
Sands China has helped put Macau on the global
entertainment map. The 15,000-seat Cotai Arena has been
graced by international headliners 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, Super Junior, Big Bang,” adds Senior Vice President
of Marketing Scott Messinger.
The cast of Now You See Me: The Second Act
in China. Lions Gate, which subsequently announced a major deal with
Hunan TV for co-production and funding—although we didn’t know
that then—didn’t need much of an impetus to have on their resume
production actively going on in China, in Macau. So it was a natural
coming together for us. All the original cast members are in the sequel
[including Woody Harrelson, Morgan Freeman and Michael Caine], as
well as the addition of Taiwanese superstar singer Jay Chou, and Harry
Potter himself, Daniel Radcliffe. So it was quite a big event for Macau.”
As Mr Messinger points out, Venetian Macao’s infrastructure
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
our C&E Department, makes it easy for us to stage obviously largescale meetings, conventions and exhibitions, and also, if you think
about a major movie production being a large-scale production with
several hundred people involved, the moving of heavy equipment
around, logistical challenges, cordoning off parts of the property, our
C&E infrastructure is well suited for doing something like that.”
Sands China is importantly also able to provide accommodation to
the cast and crew of movie productions and the various entertainment
events it hosts, including awards ceremonies such as the recent China
Music Awards and Asian Film Festival and its Top Rank boxing matches.
It can also accommodate the hundreds of international reporters who
descend on the city to cover those events.
47
Insights
“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
the tap or turn it down in terms of support.”
Four years ago, it was us having to pick up
the phone and call people continuously to
arrange the acts.
The Asian acts are less tied to specific tours.
It’s when they’re available, when we think
we want a program in the arena. A lot of
them are working through promoters. So
it’s a different business model and it’s very
successful and it’s a good business model.
What we do with all entertainment is we’ve
done a lot of research in terms of what our
customers want to see, both Western and
Asian. We also talk extensively through our
internal constituencies here, the different
business units to see whether or not the
The Venetian Macao hosts premieres for
several movies including From Vegas to
Macau, when Chow Yun Fat, Nicholas Tse
and the entire cast were in attendance.
48
show makes sense. Because there may be
someone I personally would die and go
to heaven if they came here to perform,
but I could go into a room with younger
colleagues here and they’d look at me like
“huh, who’s that person?”
And then as the discussions unfold in terms
of what either the Western or Asian show is
looking for in terms of price, we then try to
determine whether we can scale the arena
to match the expectation of that price point,
or if we don’t think we can do a full 13,000seat show in there, it’s a 7,000-seat show,
we then have to have a serious discussion
as to whether we think the cost model
Arnold Schwarzenegger and Sylvester
Stallone attended a VIP screening of
Expendables 3 at The Venetian Macao
last year.
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
initially for a rather spectacular show that
required a lot of technology.
When you’re deciding whether to book
a show, obviously you need to make a
prediction of how many tickets you might
be able to sell. How does that work?
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
the tours coming through the region, the
promoters themselves have a good sense,
and we might know how someone’s done
previously in the region, in Shanghai,
Beijing, Singapore, Japan, etc.
A lot of the Asian acts, they’ve been here
multiple times so we have our history. So
we know now how Alan Tam and Hacken
Lee do here, even when they’re here either
just the two of them or they’re here as
part of the Wynners. Grasshopper have
been here so many times that I joke with
them we’re going to rename our arena the
Grasshopper Arena. So we have a good
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
back into China, so it’s showing a
different Macau experience.”
49
Insights
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
the tap or turn it down in terms of support.
Whether it’s through offline advertising,
online advertising, social, additional PR, etc.
There are shows that hardly need marketing.
Sammi Cheng is a good example. In the
amount of time it takes for me to say we’re
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
or marketing behind that. I wish every show
were that way, obviously. We carefully track
how things are unfolding and we also look
at past history to suggest whether I should
be nervous now with the pace of sales. Or
I look for causal explanations. For example,
is there a particular holiday going on at the
moment that’s making people think about
something else, so they’re not thinking about
buying tickets at that moment. In which case
By the ‘90s, the concept of entertainment in Las Vegas
had been 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.
we’d expect it to pick up again immediately
coming out of that particular season, at
which point maybe we’ll goose it up a little
bit with some additional marketing support
to reignite the sales.
We had great success with Cats, which
was 13 performances over 9 days. And the
interesting phenomenon with Cats was
the pace of ticket sales actually picked up
each day during the run. It had great word
of mouth, and it picked up considerably
to where something like 94% of all tickets
were distributed, and the gratifying thing is
89% of tickets were sold for cash. Three of
those performances were mid-week, which
traditionally was a bit of a slower period,
and that gives us confidence now as we
go into summer with Beauty and the Beast,
which is going to be here for six weeks from
June 13 to July 26, when there’ll be 18 midweek performances of that show. Beauty
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.
50
Insights
property in the Disney theatrical canon,
it was one of the most successful shows
on Broadway over a course of 13 years.
Obviously it’s a great family show, and we
have great optimism as to how that’s going
to do. But nevertheless we keep tracking
how things are unfolding.
Ultimately, you do have to take a chance
when staging events. Which is the case with
any business.
When you transplant successful shows on
Broadway to Las Vegas, some of them do
very well and some fall on their face. So
there are no sure things in this. You do the
best you can. The thing we keep striving for
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
extending that with Beauty and the Beast.
Our colleagues at Marina Bay Sands have
been doing Broadway entertainment since
they opened. Shows like the Lion King,
Wicked, Beauty and the Beast is there now,
so it’s something that we’re adding to our
repertoire here in addition to the concerts,
the sporting events, the award shows, the
movie filming, the movie premieres.
We’ve been fortunate the last four
DreamWorks animation films, like How
to Train Your Dragon 2, Turbo, they all did
their premieres here. As part of fun events
like the Asia Pacific Film Festival, a year ago
Andy Lau debuted Firestorm here. The year
before that we had Jackie Chan’s Zodiac
12. Those premieres are very meaningful.
We love being able to give our guests the
The Venetian
Macao’s outside
lagoon hosts regular
events popular with
visiting guests and
the local community,
including the
Carnevale, Winter
in Venice and Cotai
Jazz and Blues
Festival.
opportunity to see up close and personal
these great stars.
Last year with the seventh anniversary of
The Venetian Macao, we not only had UFC
in for fight night around the anniversary,
but we also did a special VIP screening
of the Expendables 3 and the red carpet
and screening was attended by Rhonda
Rousey—who was in the movie and was
also here with Dana White for the UFC
event—and obviously there was Arnold
Schwarzenegger and Sylvester Stallone.
People were lining up for 7 hours before the
red carpet to see Sly and Arnie.
And we had the premiere for From Vegas
to Macau, when Chow Yun Fat, Nicholas
Tse, the entire cast walked the red carpet
here. 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
back into China, so it’s showing a different
Macau experience.
The big wins for us are the broadcast events
from the property. Whether it be the Top
Rank boxing, the China Music Awards, Sing
my Song, The Voice of China, not only is it
an amazing experience in the arena, but for
events like the Showdown at Sands with
Zou Shiming in March, CCTV 5 chose to
broadcast it continuously for four hours,
as opposed to 90 minutes, and something
on the order of 400 million people had the
opportunity to look at that fight. It offers a
different view of Macau in China. It helps
the overall mission to expand Macau’s
image as a great leisure destination.
The DreamWorks Experience at Sands
Cotai Central is free for guests and
visitors, and includes a daily parade.
51
Feature
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of supplying cash handling products that
offer peace of mind to customers in the
gaming industry. Since then, it has installed
over 3 million of its bill acceptors, bill
recyclers, ticket printers and multi-coin
hoppers in the field.
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, who
previously worked with key accounts within
the slot industry in Cambodia, Macau, the
Philippines and Vietnam, and also lived in
Macau for a number of years.
“We supply some of the biggest names
in European gaming and have done so
since the mid ‘90s,” says Mr Cowan, whose
remit now is to “build and develop our
business throughout the important markets
of the Asia Pacific region, which offer great
potential for growth.”
Mr Cowan is supported in his task
by Innovative Technology’s commitment
to “consistently invest in innovation and
The NV200 flagship bill
validator, recommended
for “high volume, high
security” applications,
specifically addresses the
two major requirements
of Asia’s varied slot
operations—from the
glitzy megaresorts of
Macau and Singapore, to
the slot halls and border
casinos of Cambodia.
new product development to improve
operational efficiencies and minimize
operational costs, while keeping customers
secure with products that have 99%+ proven
acceptance in the field and are able to reject
all known frauds.”
Innovative Technology’s core products
are ideally suited to the needs of the region’s
diverse markets.
The NV200 flagship bill validator,
recommended for “high volume, high
security” applications, specifically addresses
the two major requirements of Asia’s
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.
52
Feature
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.
The SMART Payout mixed-denomination
bill recycler boasts up to 70-note ‘true’ mixed
denomination recycling. “This technology
offers significant benefits to operators.
As it stores all denominations of a given
currency it reduces the requirement to refill
machines with coins, increasing operational
uptime by eliminating coin starvation,
SMART Payout,
an add-on module
for the NV200, is a
mixed-denomination
bill recycler that
accepts high-value
currency and can
store up to 1,000
notes in a lockable
removable cashbox
SMART Ticket
is a combined bill
validator and ticket
printer unit.
whilst reducing maintenance time and
costs” explains Mr Cowan. “Auto-centering
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 AsiaPacific region. “Over the last few years
we’ve grown our client base across AsiaPacific as manufacturers and operators have
been impressed with our ability to bring
innovative, secure, cost-reducing products to
market. We’re now looking to expand further
and intend to follow the same approach here
as in Europe and are currently in discussion
with a number of leading distributors,” says
Mr Cowan.
53
Gambling
and the law
Internet
Gambling?
No Problems
By Prof. I. Nelson Rose
T
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 lotteries, parimutuel betting and round (non-banking) games
like 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
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
Street dice is a simplified version of casino craps played without the benefit of a table.
Gambling
and the law
as opposed to voting machines. Yes, there have been some wellpublicized 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 slot
machine malfunctions. But casinos in the US do seem to care who
is the legitimate winner more than some election officials seem to.
Casinos also face the theoretical risk of losing not just money but
their most valuable asset: their licenses.
In practice, regulators rarely impose even substantial fines, let
alone suspend or revoke licenses. But the threat is always there.
The risk of being closed down is even greater when it comes to
Internet gaming.
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
from each other. It will be interesting to see how they deal with the
fact that not all operators will be licensed in both states. And the tax
rates are different.
The Nevada bill also included this language:
“The Legislature hereby finds and declares that… A
comprehensive regulatory structure, coupled with strict licensing
standards, will ensure the protection of consumers, including minors
and vulnerable persons, prevent fraud, guard against underage and
problem gambling, avoid unauthorized use by persons located in
jurisdictions that do not authorize interactive gaming and aid in law
enforcement efforts.”
Politically, it was very important that the first state-licensed
Internet gaming operators met those standards. But was it also
required by law?
The Unlawful Internet Gambling Enforcement Act (“UIGEA”)
expressly allows online wagers to be sent intra-state, but only if the
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 as opposed
to voting machines.
bettor and operator are in the same state, the state has made the bet
legal, and verifications are in place:
“… age and location verification requirements reasonably designed
to block access to minors and persons located out of such State; and
appropriate data security standards to prevent unauthorized access
by any person whose age and current location has not been verified
in accordance with such State’s law or regulations…”
Similar language applies to bets made between and among tribal
Internet gaming operations.
There is no similar language in the UIGEA about other interstate
or even international Internet gaming. But this did not mean that
Congress did not care about age and location verification for nontribal, cross-border bets. It simply forgot to put it in. Remember, the
UIGEA was put together overnight by the Republican leadership of
Congress, without any hearings, or even having been proof-read.
The UIGEA does require that an Internet wager not violate 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.
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.
No US operator would intentionally register someone who is
from a state where Internet gaming is illegal. There are no reported
cases involving anti-gambling laws where someone in the state or
country bets with a licensed foreign operator after that operator
took steps to avoid taking bets from that state or country. And many
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
fact, they can be strict liability.
The best known of these involve serving alcoholic beverages to
a minor. Even if a bartender does everything reasonably possible to
verify the patron’s age, the bar owner could end up paying a fine.
In Nevada, a licensed casino can raise the defense that it reasonably
thought the minor was of legal age. But, in New Jersey a court upheld a
fine imposed on an Atlantic City casino for allowing two minors in the
gambling area, even though the casino was not at fault.
Internet gaming operators have to be extra-careful about
protecting minors and compulsive gamblers from themselves,
preventing hacking, and making sure that no one can make a bet
from a state or nation where online betting is illegal. There are states
which impose strict liability, meaning an operator is sometimes
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
The laws meant to protect children from
what society regards as morally suspect
industries often do not require a specific
intent. In fact, they can be strict liability.
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.
Are the online operators doing enough? There have been
complaints, both from players in Nevada who could not sign up with
Ultimate Poker’s Nevada-licensed Internet poker room, and from
critics who say the geo-location safeguards are inadequate. But there
have been even more complaints from players who would like to
bet legally with Nevada’s licensed online operators, but either can’t
register or get their payments accepted.
The standards will undoubtedly be fixed over time. But, in the real
world, as long as an operator is doing everything possible to keep out
minors and bettors from places where online gambling is forbidden,
the most they face is a fairly small fine.
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
H
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
Mahinda Rajapaksa defeated by Mithripala Sirisena,
who previously had served as Mr Rajapaksa’s health
minister before quitting abruptly to run against him just two months
before the vote.
Mr Rajapaksa, who governed the country virtually unopposed
for 10 years, supported gaming expansion as a means of boosting
the island nation’s economy through increased tourism and foreign
investment. However, the plan was never popular with influential
religious leaders of the country’s Buddhist-Sinhalese majority and
was criticized heavily both by opposition parties and segments of Mr
Rajapaksa’s own coalition partners, who feared the industry would
undermine traditional values and lead to a variety of social ills.
Among Mr Sirisena’s campaign promises was the cancellation
of the previous administration’s approval of casinos at three resorts
58
Sri Lanka’s government is 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.
planned for the capital of Colombo—a promise he fulfilled immediately
after coming to power. The casinos canceled include one slated for
a US$400 million resort planned by Australia’s Crown Resorts in the
capital’s popular tourist core, prompting Crown to scrap the entire
project. Casinos are also gone from a $300 million resort proposal
called Queensbury, backed by local company Vallibel One, which
owns three of Sri Lanka’s four existing officially sanctioned casinos,
and an $850 million resort called Water Front Properties proposed by
hospitality giant John Keells Holdings, the country’s largest publicly
traded company.
Feature
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 grayarea arrangement dating back to the British colonial era. The turning
point was arguably the decisive end to a bloody 26-year-long civil war
pitting the government against ethnic Hindu Tamils in the north of the
country, in which Mr Rajapaksa was instrumental. That victory gave
his government the mandate to pass legislation to formally recognize
the industry through the registration of the casinos with the Inland
Revenue Department for tax purposes. Four de facto casino licenses
were thus established.
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,
Vallibel One. He owns three licensed gaming establishments. Raji
Wijeratne, Crown Resorts’ intended local partner before it pulled out,
owns the remaining license, which he has managed to split across two
venues. All five casinos are located in Colombo, and the biggest, Mr
Perera’s Bally’s, has 80 table games (his Bellagio has 40 and his MGM
Colombo another 40).
President Sirisena has also sought to scale back China’s growing influence in
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
projects and loans amid allegations of corruption.
The casinos canceled include one slated
for a US$400 million resort planned by
Australia’s Crown Resorts in the capital’s
popular tourist core, prompting Crown
to scrap the entire project.
Though small in size compared to the super-resorts of Macau
and Las Vegas, Sri Lanka’s casinos are pleasantly decorated and wellmaintained and offer service on a par with international standards.
Indians and Chinese are the main patrons, with Mr Perera claiming
they each contribute about 40% of the revenue at his casinos. He told
Inside Asian Gaming that locals are responsible for only about 4%, with
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 in Sri 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.”
Sri Lanka’s casino industry is no doubt steeling itself for more bad
news. In addition to cancelling the new approvals and imposing an
entry levy, the new administration has said it also intends to review the
licenses of current operations.
59
G2E ASIA 2015
Showcase
of Solutions
I
t’s showtime once again for the
industry’s leading innovators as Global
Gaming Expo Asia , the premier annual
trade event serving the region’s gaming
markets, returns to The Venetian Macao
on the 19th to 21st of May.
A lot has changed since the previous
session of G2E Asia. The most jarring
adjustment is being felt by Macau’s
once-mighty casino industry, which finds
itself at a crossroads after its seemingly
60
inexorable revenue growth succumbed
recently to gravity in dramatic fashion. Yet
Macau’s operators are still pressing on
with construction of a string of ambitious
resorts set to join The Venetian Macao on
Cotai over the next two years.
The notion that there’s enough pentup demand for gambling in China to
keep Macau’s gaming revenue growing
ad infinitum has given way to concerns
that the upcoming Cotai resorts will
G2E ASIA 2015
cannibalize existing properties rather
than expand the entire revenue pie.
Furthermore, Macau’s operators now
have cause to fear Asia’s other gaming
jurisdictions, many of which are poised
for a significant expansion in capacity.
With competition heating up, casino
buyers at this year’s G2E Asia will be
especially focused on sourcing products
and technologies designed to attract players
and drive cost-reducing efficiencies. After
all, in spite of recent financial headwinds,
operators are still committed to opening
several new casinos, particularly at
integrated resorts on Cotai and Manila’s
Entertainment City. South Korea is also
building its first IRs, and major casinos will
open or expand from Cambodia to Russia’s
Far East.
Another important consideration for
Macau’ operators is the local government’s
determination to stick to its table cap,
which means the soon-to-open Cotai
resorts will likely be allocated far fewer
gaming tables than originally expected.
It’ll entail a rethink of the configuration of
Macau’s erstwhile table-centric gaming
floors. Electronic gaming machines are
expected to fill the gaps where tables
would have been, which in turn will prompt
local casinos to devote more resources to
the marketing of slots and e-tables. That’ll
probably send Macau’s EGM sector down
the path to greater revenue and diversity in
terms of product selection.
Thus, adversity presents a very real
opportunity for the companies exhibiting
their wares at this year’s G2E Asia, where
more than 30 all-new exhibitors will join the
returning lineup of industry heavyweights
and niche suppliers.
Last year, the show had 160 exhibitors
and drew 8,233 visitors. Expect even
bigger crowds this year, including casino
executives in search of a competitive edge.
And read on for Inside Asian Gaming’s
preview of some of the hottest new items
that will be on display.
61
G2E ASIA 2015
Pursuit
of Perfection
GPI showcases the latest fruits of its ceaseless
efforts to make casino currency safer, stronger,
more functional and better looking
The new V-Series chips are made with a completely new injection material
formula which the company claims makes them much more durable.
G
aming Partners International arrives at this year’s G2E
Asia with new additions to its flagship Bourgogne et Grasset
(B&G) brand of casino currency and an expanded portfolio
of table game products.
GPI, the world’s leading designer and producer of chips, plaques
and jetons, has developed a new line of plastic injection molded chips
under its B&G brand—the preferred brand of Asia’s major casinos,
praised for its durability, security and beauty. The new V-Series chips
are made with a completely new injection material formula which the
company claims makes them much more durable. The material also
incorporates ChipShield, an anti-fungal that inhibits the growth of
mold and mildew, keeping the chips cleaner for longer and offering
a more sanitary chip surface—an important feature in light of the
intensive handling of chips by dealers and players.
The V-Series chips are designed to offer a whole new range of
versatile edge spot patterns that can be created with a choice of two
different sizes of decal. For customers who order the V-Series with
four or more color shots, the chips come standard with an infra-red
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
62
and colors. The new colors and effects add to an already extensive
selection that form an unrivalled suite of design choices, including a
unique gold-lace option.
In addition to casino currency, GPI’s portfolio includes
playing cards and dice, casino furniture, table game layouts and
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
capabilities through its acquisition of Gemaco Inc. last year. At G2E
Asia, it will display Gemaco brand cards and layouts. The cards are
available in three types of paper stock and there’s also a plastic option
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
its exclusive SMART RFID
GPI expanded its playing card
technology,
the
newest
and table layout production
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,
lithographer Etienne Bourgogne and engineer Claudius Grasset, who,
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.
One day in 1925, Mr Grasset read in French newspaper Le Figaro that
a gambler had broken the bank in Monte Carlo to the tune of 600,000
francs using counterfeit chips made of solid ivory and mother of pearl.
The partners saw an opportunity to use their specialized knowledge
and technical skills to address the counterfeiting problem and got to
work on producing a new generation of plaques that would be almost
impossible to duplicate. They sent some samples to the general
manager of Casino de Monte-Carlo, whose reply came in the form of a
chip order, and B&G was born.
Nasdaq-listed GPI was created in 2002 with the merger of three
of the world’s leading casino currency suppliers: B&G, then still
located in Beaune, along with two US-based companies, Paul-Son
Gaming Supplies and The Bud Jones Company. While GPI maintains
facilities in rustic Beaune, it is headquartered in Las Vegas with an
additional office in Macau, where feedback is gathered assiduously to
drive the unrelenting product development necessary to stay ahead
of not only the competition, but also, importantly, would-be casinocurrency counterfeiters.
Visit GPI at Stand #365
G2E ASIA 2015
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
T
he battle for floor share at a slew of
soon-to-open major casinos around
the region—particularly at Macau’s
Cotai 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 gamesmakers. “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
position to grow.”
The Weike booth at G2E Asia will feature
new developments in jackpot links and
Asian-themed standalone games. Also on
display will be the company’s electronic
table game portfolio. “Visitors to our booth
will see that Weike is committed to serving
the needs of the Asia-Pacific market,” says
VP of Product Marketing Peter Kup-Ferroth.
Customers in the region will get their
first look at the new four-level progressive
jackpot, Ultimate Treasure. The product’s
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.” Super 8 is the introductory
game on the link; a 1024 Ultiways game with
Weike has been rolling out an increasingly rich palette of games
built around solid maths and world-class graphics.
a 4X5 reel layout and an entry level of 60
credits to play all reels.
Victory is an integrated four-level
progressive jackpot link that was introduced
last year together with the 50-line games
Fortune Meow and Legendary Archer. This
year, Fu Wa!, the auspicious frog who brings
wealth, joins the Victory ranks. “The rapid
development and rise of the gaming industry
in Asia are the push factors for us. We will
continue to put additional resources and
create new exciting developments specific to
the Asian market according to the approved
standards,” states Mr Kup-Ferroth.
One of the highlights of Weike’s exhibit
will be its collection of standalone games,
including Wu Song, a new 2x10 50-line
offering configurable for up to a 1000-credit
max bet. An enhanced free games feature
on Wu Song offers players line wins in both
directions: left to right and right to left.
Then there’s the Peranakan heritage-themed
Graceful Fortune, a 50-line game with a
unique re-spin rewards feature.
Chinese themes on display will include
Dou Di Zhu Gold, Warrior Mulan and the
new Flaming Mountain, a 50-line standalone
featuring a multiplier that pays up to 5 times
on a free games win and rewards players with
more free games when maximum lines are
played. Dragon Gift, another new addition
to Weike’s innovative Ultiways series, is rich
63
G2E ASIA 2015
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.”
Wu Song is a 50-line standalone offering
configurable for up to a 1000-credit max bet.
with symbols but in a more volatile package.
The Dragon King feature offers players a
chance to multiply wins by up to five times
during the free games feature.
Thai kickboxers bring on the action in
Muay Thai, a feature-rich 30- or 50-line game
that introduces a new winning-streak feature
when stacked Muay Thai symbols appear
on the fifth reel during game play. All wins
containing the Muay Thai symbol in the free
games feature are multiplied six times. The
Grand Voyage is an alternative theme that
employs this distinct feature.
“The rules and regulations of the gaming
industry will never stop changing. On top of
64
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
flexible and customizable platform that
supports live video streaming of the roulette
wheel and can be configured for up to 128
terminals served by a single wheel.
Infinity Baccarat, known for its innovative
“card-squeezing” technology, integrates
high-definition video of a dealer to simulate
live play.
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)
game. Game choices include Baccarat,
Baccarat Super Pair, Baccarat Insurance and
Black Jack.
“We are investing for the future and we
always have the customers in focus. It is
The Peranakan heritage-themed Graceful Fortune is
a 50-line game with a unique re-spin rewards feature.
G2E ASIA 2015
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
innovative “card-squeezing”
technology, integrates highdefinition video of a dealer to
simulate live play.
important to have a long term perspective and
always make sure we give the best combination
of product requirements and value for money
in every market,” says Mr Poh.
Weike started supplying slots and
e-tables in the late ’90s, when the company
branched out from club operations,
principally in Malaysia, into game
development, largely because it felt the
big international manufacturers weren’t
adequately customizing games for Asian
players.
Weike also got serious about building
its talent base, notably with the addition
of Andrew Masen, among others. A onetime game design manager for Australia’s
Stargames, Mr Masen joined in 2008, and
as vice president of Game Design and
Development has nurtured the growth
of an R&D team that now numbers more
than 50.
The company has been rolling out
an increasingly rich palette of games
built around solid maths and worldclass graphics ever since. Today, it enjoys
around a 20% share of Singapore’s vibrant
club market and has another 100 or
so installations in Marina Bay Sands and
Resorts World Sentosa.
The word spread quickly to Macau and
the Philippines, where the high-volatility
50-line standalones that were making the
company’s name in Singapore quickly
found a niche, led by Qin Shi Huang, which
packs a compelling gamble in the form of
a multiplier that progressively increases
during the feature and has been a stalwart
performer in Macau and is still the most
popular game for Weike in the Philippines
six years after its release.
Mr Poh believes Weike has a geographical
edge over the big international suppliers. “In
Infinity Roulette
terms of maneuvering around the market
we’re probably more nimble,” he says. “Our
entire team is in Asia so we don’t have to
fly people in from Europe or America. We’re
all based within the region. It takes us
maximum about four to five hours to get to
any location that we need to be.” The company is also nimble in
responding to evolving market needs.
“Something like a new regulation: perhaps
for the big suppliers, the international
guys, they have to go through a corporate
chain before they can get an answer,” Mr
Poh contends. “And they have other markets
to consider, and then whether the decision
they’re making is actually for the good; it
may not be, because their other markets
are bigger than Asia. For us, Asia is our
market. Asia is the biggest market for us. So
concentrating on Asia itself, it’s very easy for
us to make sure we handle all the regulatory
changes, and make sure our guys that
create the products visit Asia and they’re in
tune with the psyche of the customers that
are here.”
Beyond slots and e-tables, Weike
continues to grow its systems business.
WeSystems has expanded into more than 100
properties across Singapore, Malaysia,
Vietnam and Cambodia by specializing in a
highly modular and affordable technology
targeting the club and small-casino market.
In Macau it currently connects around 600
EGMs in four casinos.
Visit Weike at Stand #1231
65
G2E ASIA 2015
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
“visual destination” on the
gaming floor.
Fortune Tree
T
he competition’s heating up across
Asia’s slot markets, with floor share
up for grabs in a slew of casinos
set to open over the next couple of years,
including several major integrated resorts
in Macau and the Philippines. Aristocrat has
achieved the leading region-wide floor
share until now by providing the most
relevant products to local players, and it
intends to hold onto that lead through
continuous innovation underpinned
by its mantra of “content depth” and
“portfolio breadth.”
66
At this year’s G2E Asia, Aristocrat
will showcase its four key market-leading
portfolio segments, representing the
breadth, with depth in the form of game
titles providing the content support to
each segment.
Aristocrat credits “successful customer
partnership and dialogue” with shaping
the development of some of its best
performing products, including FA FA FA,
5 Dragons Gold, 5 Dragons Deluxe and 50
Dragons Deluxe. Its latest customer-driven
development, the Fortune Tree Hyperlink,
joins a rich lineage of Hyperlink themes, all
of which are strong performers.
Like the rest of the Hyperlink product
line, “Fortune Tree maintains jackpot
flexibility, allowing our customers to
cultivate their own jackpotting strategies,”
explains Aristocrat. The Fortune Tree
theme revolves around the luck, wealth
and prosperity of Chinese New Year,
embracing the idea that red packets deliver
prosperity. During the Hyperlink feature
on Fortune Tree, a cumquat tree reveals
red packets which the player selects to
G2E ASIA 2015
award one of four Jackpot levels. Fortune
Tree will be launched at G2E Asia with
three of Aristocrat’s most popular titles as
base games: 5 Dragons Deluxe, 50 Dragons
Deluxe and Fortune King Deluxe.
The GOOD FORTUNE Link, launched
last year with two titles—5 Dragons and
Dragons of the Eastern Ocean—has gone
on to become one of Aristocrat’s standout
products across the region. This year will see
the release of two more GOOD FORTUNE
Link titles: Pure Diamonds, which represents
a new Luxury Jewelry theme, and Lucky
Festival, featuring an innovative math model
layered with a Chinese New Year theme.
Aristocrat’s games are given vivid
expression on its new Helix cabinet. Helix
comes in three stylish models, Upright, Slant
and Slant Super Screen, and players will
instantly respond to the comfort that’s built
into it, the culmination of some industryleading ergonomic research. Helix’s soupedup processors power a dual 16:9 LED backlit interface. Both screens are a spacious 23
inches across (or better yet, sample the 32inch optional Super Screen) and fully HD at
a dazzling 1,080 pixels.
With the attention-grabbing game
theme and packaging of Super Wheel
Blast, Aristocrat aims to create a “visual
destination” on the gaming floor. Super
Wheel Blast comes with three support
titles, each taking players on a journey
to a different international destination:
New York, Venice and Hong Kong. The
engaging top-box wheel feature calls on
players to spin the wheel to win free games,
multipliers, jackpots and extra wild spins.
Magic Flower, one of Aristocrat’s new
E*Series entertainment-style games
The three game themes, designed to be
banked together, also each have a feature
unique to their destination.
Aristocrat is famous for producing
gambling-style games that resonate with
Asian players. While retaining its focus on
that core content, Aristocrat is now also
building entertainment-style games tailored
for the region’s markets. Development of
the company’s global entertainment-style
game portfolio, called E*Series, is led by
the creative mind of industry legend Dan
Marks. E*Series games, in Aristocrat’s
words, “are designed to increase player
engagement and entertainment on
casino floors through enhanced graphics,
animation and sound, plus stand-out win
celebrations that really drive excitement.”
At G2E Asia, E*Series will be on show with
two new Asian-themed product families
spanning five titles including Magic Flower
and 3 Emperors.
Also on display will be the Player’s
Choice multi-game range, enabling players
to choose between several games on a single
cabinet. Player’s Choice, claims Aristocrat,
is “perfect for bringing maximum choice to
players in space-constrained venues.”
Another product promising flexibility
for customers is Aristocrat On Demand,
a downloadable tool which will be
demonstrated at the show. Aristocrat
On Demand gives customers the power
to manage content delivery and/or
configurations across their floor at the click
of a button.
Visit Aristocrat at Stand #527
What’s Your
Next Move?
67
G2E ASIA 2015
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
A
t a time when electronic table games
are making huge strides in popularity
at Asia’s major gaming venues, from
Macau’s 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.
Taking center stage at the NOVOMATIC
stand will be a comprehensive presentation
of NOVO LINE Novo Unity II with multigame functionality comprising the dealeroperated NovoTouchBet Live-Baccarat, the
fully automated Novo Multi-Roulette and a
broad choice of fully animated electronic live
game versions of blackjack, baccarat, sic bo,
poker and roulette.
The DOMINATOR Curve cabinet, which
made its worldwide debut in February at ICE
Totally Gaming in London and was one of
the highlights of that show, will be presented
for the first time in Asia. The DOMINATOR
Curve represents much more than just an
evolution of the original DOMINATOR, says
NOVOMATIC. With its careful attention
to ergonomic and design features, plus
its 40-inch full HD curved touchscreen,
it represents an entirely new dimension
in the company’s product portfolio and
promises to be an attention grabber on even
the most crowded of gaming floors.
Also on display at the NOVOMATIC
stand will be the online live dealer specialist
Extreme Live Gaming presenting its own
unique approach to the Live Dealer Studio
Experience for online casino gaming.
Max Lindenberg, director of marketing
for NOVOMATIC’s wholly owned Austrian
Gaming Industries subsidiary, commented:
“Together with our partners in the region we
have already made our presence felt right
across Asia and now NOVOMATIC stands
poised to go even further thanks to the
excellence of its products and the local onsite service capability that we have put in
68
Online live dealer specialist Extreme Live
Gaming will present its own unique approach to
the Live Dealer Studio Experience for online
casino gaming.
place. We always look forward to the G2E
Asia show and this year we will demonstrate
that NOVOMATIC is ready and able to move
ahead across a wide range of Asian markets.”
As Europe’s leading gaming equipment
manufacturer, Austrian Gaming Industries
delivers one of the broadest product ranges
in the industry and offers considerable
support on the development side to the
NOVOMATIC product line.
Unlike
other
manufacturers,
NOVOMATIC also operates around 232,000
gaming machines in over 1,500 traditional
and electronic casinos as well as via rental
concepts. Its rich operational insights find
The DOMINATOR Curve cabinet
At a time when electronic
table games are making
huge strides in popularity at
Asia’s major gaming venues,
from Macau’s megaresorts
to the border casinos of
Indochina, NOVOMATIC’s
state-of-the-art highquality multiplayer products
are certain to generate
considerable interest.
G2E ASIA 2015
it uniquely positioned to grow with
Asia’s existing and emerging markets.
It holds a strong position in land-based
casinos in Germany, Switzerland and
the Czech Republic and runs one of
the premier gaming resorts in South
America, the Monticello Grand Casino
and Entertainment World in Chile.
NOVOMATIC will be exhibiting at
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.
Stronger Together
Scientific Games arrives at this year’s show with a range of
product and system solutions unmatched in the industry for
its breadth and sophistication
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
generate
customer
interest at
the show.
Visit NOVOMATIC at Stand #1209
T
The original DOMINATOR cabinet.
wo years ago, the Bally, Shuffle
Master and WMS brands were
separate entities. Now they’re united
under a common parent, Scientific Games,
which will exhibit at G2E Asia with a selection
of more than 80 innovative products across
its recently expanded portfolio.
Scientific Games was established in
1973 as a supplier to the lottery industry.
Nearly four decades on, the company
branched out by acquiring Chicago-based
slot maker WMS Industries for US$1.5
billion in a deal that closed October 2013.
Scientific Games then went on to stun
the industry last year by purchasing Bally
Technologies for US$5.1 billion, shortly
after Bally had itself expanded beyond its
slots and systems business with the US$1.3
billion buyout of SHFL entertainment
(formerly known as Shuffle Master until
the 2012 name change), provider of an
array of products for casinos: proprietary
69
G2E ASIA 2015
With the superior graphics
and heightened player
engagement enabled by
the powerful CPU-NXT3
operating platform, the WMS
Blade cabinet currently
stands among the industry’s
strongest performers.
table games such as Caribbean Stud
Poker and Three Card Poker; table-game
utility products, including automated card
shufflers, chip sorters and intelligent table
system modules; and a wide assortment of
slots and electronic table games.
According to Ken Jolly, Vice President
of Scientific Games Asia, “G2E Asia 2015
70
is a great opportunity to showcase a range
of product categories, along with premium
content including Da Fu Da Gui—the Asianthemed 4-level progressive link that is the
continuation of the successful Duo Fu Duo
Cai phenomenon. Our team is excited to
present our products which are designed to
entertain and perform like no other.”
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
generate customer interest at the show.
With its dedicated Asian content and math
model, Da Fu Da Gui offer players the
anticipation of big wins with its Double
Luck Jackpot feature. When players reveal
three Double Luck coins during the jackpot
feature, they win the current jackpot
amount, plus the startup amount of the
winning jackpot level. The Da Fu Da Gui
link launches with Rich Traditions and Jade
Eternity on the Pro Wave cabinet.
Also highlighted on the award-winning
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 a new 5x4 reel array, 1024 ways to win
and Super Stacks.
For its Equinox cabinet, Scientific
Games will unveil Flower of Riches, the latest
addition to the Duo Fu Duo Cai four-level
link family. The Equinox cabinet will also
feature Diamond Eternity VIP, a standalone
progressive jackpot game that joins 88
Fortunes VIP and 5 Treasures VIP. This theme
features dedicated jackpots and higher
denominations suited to players in VIP
gaming rooms.
Scientific Games will showcase Shuffle
Master table-game products designed to
engage players and deliver strong returns
for operators. Prominently featured
products will include several electronic
table innovations such as Tablemaster
Fusion and i-Table Roulette, which
combine the excitement of traditional
roulette with all bets and pays made
electronically and an unlimited number of
remote betting terminals. The Tablemaster Fusion platform is
an e-table innovation that recreates the
experience of live table gaming on a fully
electronic platform. It features a 72-inch
high-definition LCD with attractive virtual
dealers, widescreen player terminals with
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 a new 5x4 reel array, 1024
ways to win and Super Stacks.
G2E ASIA 2015
Flower of Riches is the latest
addition to the Duo Fu Duo Cai
four-level link family.
touchscreen betting, enhanced graphics, and
multiple side bets. At G2E Asia, Tablemaster
Fusion will feature the Chinese version
of Ultimate Texas Hold’em with a Mandarinspeaking dealer.
Fortune 7 Baccarat will head a lineup of
proprietary table games including Free Bet
Blackjack with the Blazing 7s Progressive
and Pot of Gold side bet, Ultimate Texas
Hold’em, DJ Wild Poker and Three Card
Poker. Fortune 7 Baccarat is a commissionfree baccarat game featuring two optional
side bets: Fortune 7 and One Up.
The Safe-Bacc system, a revolutionary
new product that combines a shuffler and
card reading shoe into one device to increase
game speed and improve security on
baccarat tables, will be under the spotlight
in the Utilities segment. Also on display
will be the next-generation i-Deal Plus with
improved card reading and reliability, a frontmounted display, onboard printer and safety
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 playercentric 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
for a chance at the progressive when the
symbol appears on the reels. Additionally,
each game within the set has its own unique
Free Spin Bonus triggered by three or more
Bonus symbols.
Furthermore,
the
next-generation
upright WMS Blade cabinet will also take
pride of place at the Scientific Games stand,
demonstrating the company’s focus on
providing a full range of gaming solutions
that deliver value to casino operators. With
the superior graphics and heightened player
engagement enabled by the powerful CPUNXT3 operating platform, the Blade currently
stands among the industry’s strongest
performers.
The combined post-merger talent
pool at Scientific Games stands ready to
create and support a rich pipeline of new
products under its tried-and-trusted casino
gaming brands. Through its extensive G2E
Asia exhibit, the company says it intends
to demonstrate its ability to leverage
proven product brands and cutting-edge
technology solutions to help customers
grow their business.
Visit Scientific Games at Stand #473
Striking Stars is one of two
titles on a progressinve link
called Jackpot Vault.
71
G2E ASIA 2015
Off to the Races
Alfastreet continues pushing the envelope conceptually and
technologically with its eye-catching e-tables
A
lfasreet’s Royal Derby promises
to be one of the more exciting new
releases at this year’s G2E Asia. The
mechanical horse racing game was launched
officially this year and has been performing
strongly at the venues it has already been
installed at, claims Alfastreet Sales Director
Albert Radman, who has high hopes for the
product in Asia.
Although several other manufacturers
have failed in their attempts to develop
simulated horse racing games for casinos, they
weren’t Alfastreet, the company credited with
having played the biggest role in establishing
electronic roulette as we know it today.
72
It’s one thing to create a machine that
stays true to the spirt of a traditional table
game, quite another to make one that does
a good enough job of capturing the essence
of a day at the track to get gamblers to part
with their precious time and money. As
such, developing Royal Derby presented
Alfastreet a worthy challenge, one that it
met in characteristic fashion with “unique
design and innovative solutions,” according
to Mr Radman, who adds demand for the
new game is already so great that it exceeds
manufacturing capacity, requiring the company
to happily scale up its production line.
Alfastreet emerged in 1994 from the
It’s one thing to create a
machine that stays true to the
spirt of a traditional table game,
quite another to make one
that does a good enough job of
capturing the essence of a day
at the track to get gamblers to
part with their precious time
and money. As such, developing
Royal Derby presented
Alfastreet a worthy challenge.
furniture factory of the Počkaj family in
Rodik, Slovenia, to 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,
craftsmanship
and
service. The company’s flagship multiplayer
platform, the eight-station R8, is the
G2E ASIA 2015
The new WIKY terminal enables
players to bet on up to four games
simultaneously on the same screen.
Sales Director Albert Radman
embodiment of these traits: elegant,
durable, immensely scalable—it strikes
that balance between technological flair and
adherence to the “spirit of the game”
which for Alfastreet represents the apex of
achievement.
Although the R8 receives regular
enhancements, it has retained its distinctive
and now classic shape, with players at
fixed terminals sitting in a square around
the wheel. That’s apparently the preferred
configuration for the bulk of players around
the world, including those in Indochina
(Cambodia, Vietnam and Laos).
In other Asian markets, including
Singapore, Malaysia and the Philippines,
players prefer single terminals, and the
versatile SL has fit the bill perfectly over
The classic R8 has a distinctive shape, with
players sitting at fixed terminals in a square
around the wheel.
the past few years. Whereas Alfastreet’s
previous roulette products had all been fully
automated, the SL was its first offering to
allow semi-automated play with a live dealer
spinning the ball but all bets and payouts
made through electronic terminals.
The successor to the SL is the WIKY,
which features a crisp 32-inch display—a lot
bigger than the SL’s 23-inch screen, though
both terminals occupy the same footprint
on the floor. Furthermore, while the SL was
the first e-table terminal to incorporate the
unique feature of allowing players to bet
on two games simultaneously on the same
screen, WIKY sees Alfastreet raise the bar yet
again, enabling bets on up to four games.
“Baccarat players in particular always like
to play several tables at once. Providing them
a product that allows them to bet on four
tables at once on one terminal seems to be a
sure hit,” Mr Radman says.
Alfastreet offers a rich selection of games
for the SL and WIKY terminals. In addition
to roulette and baccarat, there are e-versions
of sic bo and craps, as well as an array of
proprietary games that include Royal Derby
and Alfastreet Wheel of Fortune.
Finally, for the roulette purists, Alfastreet
last year released a scaled-down version
of the R8, the four-seat R4, providing the
same quality and performance at a size and
price more amenable to smaller operations,
a strong selling point in Asia’s vibrant
medium-tier casino and club markets.
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,
craftsmanship and
service. MAY 2015 inside asian gaming
73
G2E ASIA 2015
Gaining Ground
DLV plans to take Asian markets by storm with a new cabinet
and multigame package—welcome additions to a portfolio of
versatile, reliable and cost-effective products that are proving
increasingly popular in the region
B
oasting dual 27-inch screens,
DIAMOND EXCEL, DLV’s latest
cabinet, offers a decidedly enhanced
vehicle for delivering its popular games
packages. The new cabinet also incorporates
the company’s extensive observations and
experience in the field in a bid to maximize
player comfort and engagement.
At G2E Asia 2015, Latvia-based DLV
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
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
varied multigame range will be the Diamond
Games Premium series, now in its eighth
installment, and Vollinstars, a baseballthemed four-level mystery progressive
jackpot.
In an exciting departure from its usual
offerings, DLV will also demonstrate its
online solution, DLVBET, to customers in
the region. Launched last year in Latvia,
the DLVBET website currently offers bets
on sports and political events 24/7. The
company says it intends to add online
versions of its slot games to the platform,
and relishes the prospect of thereby reaching
an expanded audience.
DLV has good insight into what players
are looking for. In addition to manufacturing
slot machines, it runs 50 slot halls in its
home country. The bulk of gaming revenue in
Latvia is generated by slot clubs operating in
a highly competitive environment. By having
74
Melco Crown’s original City of Dreams
property, of course, is located in Macau,
so with the installation at CoD Manila,
chances are good that DLV could finally
gain a coveted foothold in Asia’s premier
gaming jurisdiction.
DLV prides itself on its culture of
innovation and the competitive pricing and
technical robustness of its products, as well
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,
Asia and South America.
Visit DLV at Stand# 1039
Diamond Games
Premium VIII on the
HD cabinet
The all-new DIAMOND EXCEL cabinet
to go head to head with major international
manufacturers and operators in its domestic
market, DLV has learned how to adapt its
products to evolving market conditions.
The company made its maiden foray into
Asia in early 2010 with the first of several
installations in Cambodia, then expanded
into the Philippines, where it recently placed
machines at Melco Crown Entertainment
Ltd’s new resort, City of Dreams Manila.
DLV prides itself on its
culture of innovation and
the competitive pricing and
technical robustness of its
products, as well as its speed
and flexibility in responding to
clients’ needs.
G2E ASIA 2015
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
The new Premier Machine terminal for the
Live Table Multi-Gaming System
A
major current concern for Macau’s
casino operators is the likelihood
they’ll receive a much smaller
allocation of gaming tables than originally
excepted at their soon-to-open Cotai resorts.
LT Game’s market-leading Live Table MultiGaming System, already a major presence at
Macau casinos, offers an obvious solution
for filling the gaps on Cotai’s upcoming
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
table can serve hundreds of players placing
bets on electronic terminals. The system also
greatly speeds the process by automating the
collection of bets and payment of winnings—
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
traditional table on the main floor.
At this year’s G2E Asia, LT Game will
showcase an all-new terminal for the
Live Table Multi-Gaming System, dubbed
Premier Machine. There’s also a new game
for the system, LT Power Tournament, which
promises to further enhance its appeal. Also
on display will be a new electronic table
game, LT Power Dragon.
Another highlight product at the LT
Game stand, the E-Baccarat Table, takes the
form of a traditional baccarat table with a live
dealer, seating 5 to 10 players who place bets
electronically on touchscreen interfaces.
While bringing the efficiencies of electronic
betting, the E-Baccarat table preserves the
personal and tactile elements of the game
that are so important to Asian gamblers.
Furthermore, E-Baccarat Tables can also
be linked up to LT’s Live Table Multi-Game
System terminals, enabling players to place
bets on them from elsewhere on the floor.
Beyond G2E Asia, a full range of LT
Game’s products can also be viewed at the
Casino Macau Jockey Club, which serves as
a virtual showroom for them. The Casino
MJC embodies the concept of a chipless
casino, where players bet electronically on
E-Baccarat Tables and Live Table MultiGaming System terminals, buying-in through
built-in bill acceptors with either cash or
tickets. Completing the chipless concept is
LT’s Intelligent Cash Access kiosk, which
converts tickets to cash and, unlike other
kiosk products on the market, goes a step
further by allowing players to convert stacks
of cash into tickets. Intelligent Cash Access
will also be on display at G2E Asia.
Visit LT Game at Stand #909
The E-Baccarat Table takes the form of a traditional baccarat
table with a live dealer, seating 5 to 10 players who place bets
electronically on touchscreen interfaces. While bringing the
efficiencies of electronic betting, the E-Baccarat table preserves
the personal and tactile elements of the game that are so
important to Asian gamblers.
75
G2E ASIA 2015
Upgrades All Around
Matsui Asia returns to the show with an all-new series
of innovative gaming chips, backed by a significant boost
to its production capacity
M
atsui will launch a new line of
gaming chips at G2E Asia, though
it’s keeping the details under
wraps ahead of the unveiling at the show.
“Our new series of innovative gaming
chips have a distinct style and appearance.
Although we cannot disclose further
information before the show, we are confident
that this new-style chip will be very popular
and loved by both operators and players,”
says Shigeki Machida, managing director of
Matsui Asia Ltd, Matsui’s Macau office
Over the past year, “We have been
investing a lot of resources into the
development of new gaming chips, which
are our core product,” notes Mr Machida.
“In addition to our ongoing commitment to
product development, we’ve also invested
heavily in increasing our production capacity.
We’ve installed a lot of new machinery and
equipment that not only speed up production,
but also improve the quality of the chips.
Also, because security is so important to
us as a casino currency supplier, we’ve also
significantly upgraded the security at our
factory using state-of-the-art technology. We’ll
be introducing these latest improvements to
our clients at G2E Asia.”
All of Matsui’s manufacturing takes place
at facilities it has 100% ownership of, ensuring
its supply chain is fully secured. The company
prides itself on its competitive pricing and
speedy response to customers’ needs.
The Matsui group, headquartered in
Tokyo, specializes in the supply of gaming
chips and layouts (both wool and synthetic).
Its subsidiary serving Asian markets outside
Japan and Korea, Macau-based Matsui Asia
is part of a global network also spanning
Europe and the Americas. Its chips and
layouts are used by more than 700 casinos in
over 100 countries, and in addition to Macau,
the group has sales offices in Manchester,
England, Moscow, Las Vegas and Seoul.
“Our business has been very stable at
all our offices around the world. There are
new casino projects coming up in all those
jurisdictions, and we are trying our best to
secure their business,” says Mr Machida. “In
In order to help customers
visualize their own
customized chip designs,
Matsui developed a
software tool, dubbed
“Design Your Own Chips,”
which has been upgraded
and is accessible on the
Matsui Gaming website.
76
Asia, we have been focusing on gaming chips
and layout. We have developed very good
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 produces around 5,000 of
its customized table layouts a year, and
has capacity to accommodate small and
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
welcomes requests for trial samples from
new layout customers.
In order to help customers visualize
possible customized chip designs, Matsui
developed a software tool, dubbed “Design
Your Own Chips,” which has been upgraded
and is accessible on the Matsui Gaming
website, www.matsui-gaming.co.jp/english. “It
covers all our existing chip designs, colors and
other options. You can make a customized
selection of chip mold, colors and other
options, and you’ll be able to see what it will
look like straight away,” explains Mr Machida.
“It’s a very user-friendly interface. Many
customers use it when they discuss their chip
design ideas with us. It’s a very helpful tool.”
In addition to chips and layouts, Matsui
also supplies table accessories, including
playing cards, a unique card-shredding
machine, roulette wheels and winning
results displays
Through its established presence in
South Korea’s gaming market—a market
poised for major expansion with a string of
planned integrated resorts—Matsui has been
distributing products there for other suppliers.
Its latest Korea distribution agreement was
signed with slot giant IGT. “The partnership
has just started, but it has already been
successful. We supplied IGT and Aristocrat
machines to Genting’s new foreigner-only
casino in Jeju, which opened in December [as
a revamp of the casino at the former Hyatt
Regency, which Genting bought]. We’ve been
the distributor for Aristocrat in Korea for
many years already, and now with the IGT
agreement we’ve added another top brand
to the lineup of slots we offer there. Several
new casino licenses are expected to be issued
in Korea over the next few years, which will
create more and more opportunities for our
slot distribution business.”
Visit Matsui Asia at Stand #613
G2E ASIA 2015
Best
Acceptance
CPI returns to G2E Asia with the industry’s
most comprehensive portfolio of automated
payment systems
C
rane Payment Innovations (CPI) was founded last year through
the merger of MEI and NYSE-listed Crane Co., both world
leaders in banknote- and coin-handling technologies whose
newly combined reach encompasses markets ranging from gaming and
retail to financial services, transportation and vending. CPI’s presence
stretches across 144 countries serviced by some 2,200 employees,
including more than 500 engineers, with manufacturing facilities in
North America, Europe and the UK and 24 sales offices in North and
South America, Europe, South Africa, Asia and Australia.
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
efficiencies throughout operations.
The headline exhibit, SC Advance, is part of the trusted SC
product line that has achieved an installed base of more than 1.5
million units worldwide. It represents an evolution of the successful
CASHFLOW SC note acceptor, seeking to further improve upon the
key performance attributes responsible for operator profitability and
customer satisfaction—acceptance, jam rate, security and total cost
of ownership. Several cashbox sizes, as well as a stackerless model,
will be on display.
There’s also EASITRAX Web, a software extension of EASITRAX
EASITRAX Soft
Count, now with
the EASITRAX Web
software extension,
provides operators
with more flexibility
when accessing
and evaluating
performance data
to drive efficiencies
from the slot floor
to the back room.
The SC Advance
note acceptor
seeks to further
improve upon the
key performance
attributes
responsible
for operator
profitability
and customer
satisfaction—
acceptance, jam
rate, security
and total cost of
ownership.
Soft Count. As before, EASITRAX Soft Count collects data from SC
acceptor heads and uses it to streamline the drop process, facilitate
asset evaluations and conduct preventative maintenance programs.
EASITRAX Web makes it easier to import that data and convert it into
reports (which can now be customized) from anywhere in the world
with secure intranet access.
Another major highlight is PPM Advance, a next generation
support tool that, according to the company, lowers maintenance
costs by facilitating quick and easy updates to in-field SC note
acceptors. Its Bluetooth functionality option delivers enhanced
communications to the user through an Android phone and tablet
app, enabling technicians to download software remotely and add
EASITRAX asset numbers.
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
seconds. It is designed to support door-mounted applications with
small footprints such as bingo, roulette and tabletop sports betting
terminals. To meet industry demands, it is available in up-stacking,
down-stacking and horizontal configurations.
Finally, CPI will feature several coin acceptors and hoppers with
varying footprints and capacities to meet individual application
requirements. The Universal Hopper is CPI’s best-selling coin
hopper, with millions installed worldwide. The Cyclone Hopper
offers a smaller footprint and is ideal for applications where lower
coin capacities are required, including the latest multi-pay gaming
machines. Then there’s the high-speed Condor Premier coin acceptor,
which is configurable to accept up to 12 different coins, enabling
compliance with local jurisdictional requirements.
Visit CPI at Stand #739
77
G2E ASIA 2015
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
A
insworth
Game
Technology will debut
several products at this
year’s G2E Asia, and hopes
are especially high for the new
standalone
product
range,
including Lucky Ye Ha Hai, Thunder
Dragon and 8 Immortals.
Lucky Ye Ha Hai is a graphicsrich five-reel 50-line offering created
especially for Asian audiences.
It includes a unique multi-dice
feature as well as 8 engaging free
games with guaranteed reveal
symbols and accumulating wild
multipliers. Lucky Ye Ha Hai’s
appeal to players derives from its
ability to reward them regularly
with four levels of rapid bonuses.
Ainsworth will further expand
its Quad Shot range with the
brand new Asian-themed titles
Dragon Climber and Phoenix &
Peony, which now feature a bonus
sixth reel, more stacked wilds and
rapidly triggered coinciding SAPs.
Ainsworth also hopes to make
a statement at G2E Asia with
Fortune Ox, an engaging highdenom link progressive from the
proven Double Hit line of games.
Available in the A560st slant top
Lucky Ye Ha Hai is a
graphics-rich five-reel
50-line offering created
especially for Asian
audiences. It includes
a unique multi-dice
feature as well as 8
engaging free games.
cabinet, Fortune Ox features the
highly successful Double Hit
concept, providing increased
start-up value options plus rapid
hitting bonus prizes with even
more generous frequent free
game features. Fortune Ox series
is targeted at high-denom play in a
5,10 or 20 pay line format with the
option of either a three-level link,
two-level standalone progressive,
or one-level link.
In addition, Ainsworth will
demonstrate a range of new
themes for its core Game Plus
library: Play 30/40/50 Lines and
Triple Shot.
New
South
Wales-based
Ainsworth was founded in 1995
by the legendary Len Ainsworth,
long acknowledged as one of the
fathers of slots in Australia and
the man who established industry
heavyweight Aristocrat. Over the
past few years, Ainsworth has
greatly increased its share of the
Australian market and grown
international sales
Ainsworth has been especially
focused on serving the fast growing
markets of Asia. It was ahead of
the pack in developing a strong
library of dual-language (Chinese
and English) games in line with
Macau’s new slot standards, and
those titles have been performing
well, growing the company’s floor
share across the region.
Further product information
is available on the company’s
website, www.ainsworth.com.au,
or through contacting Asia Sales
Manager Keith Jeffrey by phone
on +612 9739 8000, or email at
[email protected].
Visit Ainsworth at Stand #1437
78
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
W
hen
Gaming
Laboratories
International was founded in
1989, the testing of gaming
equipment primarily revolved around the
mechanical reel slot machine.
Today, the task has become exponentially
more difficult with the advent of increasingly
sophisticated video slots, lottery products,
server-based and other technologicallyadvanced gaming systems, online and
mobile game platforms and ancillary gaming
products ranging from ticket printers to bill
acceptors for a growing number of local,
state and federal regulatory authorities.
GLI has proven more than able to meet
the industry’s rapidly evolving demands,
in the process becoming the world’s
leading gaming testing lab and technical
consultancy. It also continues to be a pioneer
and innovator in the field.
Moving beyond testing and certification,
GLI has started to offer what it describes
as “a wide range of information security
services to gaming and non-gaming
companies, from audits and training to the
application of new processes and ultimately
certifications.”
GLI’s clients can avail themselves of the scale and
flexibility of the company’s worldwide reach.
GLI Link was
created with
a keen eye
on the Asian
marketplace.
It allows
device testing
against systems from any of
GLI’s global locations, saving
time and money and speeding
time to market.
The IT and Internet security assessments
are especially popular, given the need
for companies to ensure they are able to
withstand an ever-expanding variety of
threats. “We started to do it about three
years ago on a smaller, on-demand scale,
but the demand for it has surged by tenfold.
Everybody’s asking for it,” says Ian Hughes,
the company’s vice president of Global
Services. He adds that the IT security audits
are “probably 60% of what we do now.”
In addition, GLI has developed a portfolio
of exclusive tools that make it a lot easier for
gaming suppliers to access international
markets.
First there’s the patented GLI Link, which
was created with a keen eye on the Asian
marketplace. It allows device testing against
systems from any of GLI’s global locations,
saving time and money and speeding time
to market. Before GLI Link, suppliers had to
physically ship devices for testing. Now they
simply bring them to their local GLI lab.
Then when testing and certification are
complete, suppliers can take advantage of
the exclusive Point.Click.Transfer service
to move previously certified products into
jurisdictions around the world with the click
of a mouse.
IT and Internet security assessments have become
a major business segment for GLI.
GLiCloud is another time-saver that
provides a whole new level of access by which
regulators can track an entire gaming floor’s
software and hardware and the compliance
status of all components. It’s cloud-based,
as the name says, designed to allow users
to tap into GLI’s global database in real
time so that their information is always up
to date and accurate. It provides oversight
and reporting of activities and tasks, and it’s
entirely automated to eliminate human error.
Significantly, it also links to GLI Mobile, the
downloadable app that allows regulators and
suppliers alike to access GLI’s database on
the go, facilitating 24/7 access to the lab in
a secure, password-protected environment.
GLI’s clients can avail themselves of
the scale and flexibility of the company’s
worldwide reach. GLI guides 65 standards
for technical competence in the gaming,
wagering and lottery industries and
maintains 20 laboratories in Asia, Africa,
Australia, the Caribbean, Europe and North
America and South America. It provides
services in more than 455 jurisdictions.
GLI is well positioned in Asia, with full
service labs in Macau, and in Adelaide,
Melbourne and Sydney in Australia. GLI Asia
in Macau was the first full gaming testing
laboratory in the market and the first in Asia
to be certified for ISO/ISE 170025:2005.
Leading the team at G2E Asia will be
GLI Asia General Manager Amanda Chan. A
long-term resident of Macau, Ms Chan has
extensive gaming and regional experience
and will be on hand at the show to address
the specific needs of suppliers, operators
and regulators.
Visit GLI at Stand #239
79
G2E ASIA 2015
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
J
CM Global comes to G2E Asia 2015 with
a greatly enhanced portfolio following its
acquisition last year of FutureLogic. JCM,
of course, is a major international supplier
of transaction technologies to the gaming
industry, in addition to banks, retailers and
kiosks. By taking over FutureLogic, it has also
become a leading supplier of printers and
couponing solutions for not only slot tickets
and gaming vouchers, but also a wider range
of applications including fuel pump receipts,
medical devices, POS coupons and labels for
assembly-line products.
JCM’s broad-ranging exhibit kicks off
with its award-winning line of bill validation
technology. Its flagship bill validator,
iVIZION, boasts the most advanced security
features and anti-stringing technology
available, along with an acceptance rate
better than 99% and a version with a highcapacity cash box, iVIZION-HC. Then there’s
iPRO and iPRO-RC, with an optional recycling
feature; UBA, Vega and Vega-RC; Taiko Pub;
the DBV-400 and DBV-500; and the TBV that
can accept single notes or stacks of notes in
multiple currencies simultaneously.
Another highlight product is the iV8 tableside bill validator. Developed specifically
for high-volume table-game markets such
as Macau, it can validate large buy-ins at 8
notes per second, significantly speeding the
process and increasing the number of hands
dealt per hour.
JCM claims its printer technology
enhances the connection between casinos
and their customers, including FutureLogic
ticket printers characterized by their speed,
flexibility and durability.
The potential for improved connection
with customers continues with JCM’s
system solutions, including Dynamic
Network Applications (DNA), Intelligent
Cash Box (ICB), PromoNet, Ticket2Go and
TableXchange.
PromoNet
intelligent
couponing
identifies valuable players, targets both
carded and non-carded players, links
promotions to game-play and delivers
Developed specifically for high-volume table-game markets
such as Macau, the iV8 can validate large buy-ins at 8 notes
per second, significantly speeding the process and increasing
the number of hands dealt per hour.
JCM’s flagship bill validator, iVIZION, boasts
the most advanced security features and antistringing technology available, along with an
acceptance rate better than 99%.
promotions exactly where and when they
are needed.
Ticket2Go offers a retrofit ticketing
solution for gaming machines that do not
support open-standard ticketing protocols.
It’s targeted at AWP and low-payout markets,
delivering a networked TITO solution and
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
systems that empower operators to
communicate directly with customers in a
digitally dynamic fashion.
Visit JCM at Stand #339
80
G2E ASIA 2015
Currency Revaluation
Abbiati continues its tireless quest to keep casino currency
safe with an all-new line of chips, plaques and jetons boasting
sevearl innovative security features as well as elegant designs
I
n recent years, Abbiati Casino Equipment
has been chosen by several Asian
operators in search of stylish and secure
casino currency.
The company’s reputation is built on
nearly 40 years of commitment to the highest
manufacturing standards and best materials,
blending technological innovation with
traditional craftsmanship to produce the finest
in furnishings, layouts and accessories for the
pit. Its products are now found in more than
120 casinos on four continents. According to
CEO Giorgio Abbiati, “Asia is an extremely
vibrant market for us and is strategically very
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.”
At the show, Abbiati will display a
brand-new line of chips, plaques and jetons
incorporating a number of innovative security
technologies to prevent counterfeiting. “The
innovations we’ll be presenting this year
are the result of extensive R&D projects
that we have carried out both internally
with our engineers as well as with our
partner suppliers,” says Mr Abbiati. “Our
company has an increasing Asian focus
and we have been working hard to meet
the demanding needs of Asian customers
who require reliable and state-of-the-art
products.” The new range will include a
collection of attractive new patterns, designs
and materials for the plaques as well as the
new line of patented “Tie” chips featuring
multiple injections, see-thru inserts and
a combination of intricate and innovative
rim and edge inserts. All new products are
available with security features such as 13.56
MHz RFID, 8-color UV pigments, 3-in-1 UV,
Laser Tracer technology, Optical Variable Ink
and high-security holograms, which, says
the company, is “to name but a few.”
Another featured product at the Abbiati
stand will be a blackjack table manufactured
with special composite materials. In
addition, the company plans to demonstrate
a special baccarat table that enables the use
of a video screen player interface. Both tables
are decidedly eye-catching, featuring unique
designs and elegant, high-end finishings.
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
plastic-coated paper playing cards which
include new high-security features such
as tracking mechanisms and cards with
barcodes specifically designed to meet the
requirements of online gaming operators.
Headquartered in Rosta, Italy, Abbiati
continues to collaborate with veteran
industry marketer Christophe Leparoux and
his firm, Golden Cathay Consulting, to better
serve the Asian market and further expand
its presence in the region.
Visit Abbiati Casino Equipment
at Stand #1139
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.
81
G2E ASIA 2015
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
K
onami has promised to unveil “a
milestone lineup of new Asian market
game titles” at this year’s show.
Featured 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.
“Konami continues to invest its support
in new games, cabinets, and technology
that help advance the future of gaming
entertainment in many crucial Asian
regions,” says Mr Reback.
Prophetess of Fortune is Konami’s newest
release for Rapid Revolver, joining the awardwinning 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.
The attention-grabbing Rapid Revolver has
continued advancing into new markets with an
Full-reel wilds take center stage in the new
Opera Beauty five-reel video slot.
expanding library of available game themes. In
lieu of the upper LCD screen, Rapid Revolver
takes a unique spin on classic mechanical reels
by mounting six stacked drums on its oversized
top box, surrounded by synchronized highimpact sound and lighting.
Konami’s big-screen Podium Goliath
cabinet will also be under the spotlight,
with “colossal sound, 360-degree attract
lighting and 32-inch dual high-definition LCD
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.
82
G2E ASIA 2015
Then there’s the classic Podium cabinet,
in upright and slant design, known for its
reliability and performance.
“During this year’s event, Konami will
be showcasing some of its most promising
new game themes on Goliath, such as
Heroine of the East and Mighty Emperor of
Heaven. Both are 5-reel video slots that
highlight random multipliers in the free
game bonus,” says Mr Reback. “Because
Goliath is compatible with all the same
games as our classic Podium cabinet,
operators have the greatest control and
long-term flexibility to customize this
product to meet their needs.”
Visit Konami Gaming at Stand #559
“Konami continues
to invest its support in
new games, cabinets,
and technology that
help advance the
future of gaming
entertainment in
many crucial
Asian regions.”
Matt Reback
vice president, marketing
at Konami
Brotherhood of Fortune
83
G2E ASIA 2015
Quality Matters
getting fiercer, casinos need to look for
ways to capture hidden efficiency potentials.
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
to processing all those banknotes, Giesecke & Devrient‘s
high-end solutions reign supreme
Can you give us real-world examples?
Sure. One casino we worked with had
three cash-processing systems installed.
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.
Another client, who had 15 people on its
count team and another six on the drop
team, now works with just one combined
team of six people.
M
unich-based
Giesecke
&
Devrient is one of the gaming
industry’s most trusted names in
large-volume cash processing.
Ensuring that cash moves smoothly,
efficiently and securely in the demanding
environment of a 21st century casino
is a specialty for G&D, which has been
producing the high-volume systems
required by central and commercial banks
and cash-transit enterprises for well over
a century.
In Macau, the company’s count room
systems have been in use since 2005, and its
presence continues to grow as Asian gaming
grows, with more recent installations in
the Philippines, Malaysia, South Korea,
Cambodia, Sri Lanka and Vietnam.
Inside Asian Gaming spoke with Jim
Goodwin, head of G&D’s casino business,
about the intricacies of handling all that
cash properly.
IAG: Why is cash processing such a big
issue for casinos?
Mr Goodwin: Casinos have particularly
complex cash processes: Often they deal
with very large volumes and many different
currencies—and everything must be
processed extremely fast. In all of those
cash operations, security is always a major
concern. Now that global competition is
Expertise Embodied
G&D’s cash-handling expertise is
embodied in a suite of unmistakably highquality 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 allimportant 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
meet the most exacting demands of the
count room with a high through-put rate
and true continuous processing with
header-card one-pass technology for multi-
84
The BPS C4
handles TITO
tickets and
vouchers as
well as cash.
Those are big changes. What is it about
your solution that makes that possible?
One factor certainly is the powerful
equipment we have. But that is not all.
To really make a difference you need a
comprehensive solution covering all relevant
factors: not only systems and connectivity
but also the casino’s work-specific processes
and room layout. Once you optimize all
that in an integrated effort you can achieve
quantum leaps in efficiency.
G2E ASIA 2015
“Casinos often deal
with very large volumes
and many different
currencies. Everything
must be processed
extremely fast and
security is always a
major concern. Now
that competition is
getting fiercer, casinos
need to look for ways
to capture hidden
efficiency potentials.
Integrating their
cash processing is an
extremely powerful way
to do that.”
Jim Goodwin | Market
Segment Director in charge
of G&D’s casino business
denomination, multi-orientation and multicurrency counting and TITO tickets and
vouchers sorting.
The compact, easy to use BPS C1 is
well-suited to the places where space is an
issue, such as cash desks and back of house
areas. It authenticates, checks and sorts
denominations, detects multiple currencies
and provides emission-sorting, orientationsorting, TITO reading and image face
scans. Its two stackers, fitted with separate
compartments for sorting and rejections,
can count up to 1,500 banknotes per minute.
BPS Connect Casino is a tailored software
solution that connects with both the C4
and C1 to integrate an array of additional
industry-proven best practices, including
an interface between the header card and
smart can system, the ability to track cash
through the entire processing chain with
consolidated reporting and analysis and
tools to ensure that processing capacity is
operating at peak utilization.
The Numeron is an exceptionally
The compact BPS C1 is ideal for smaller areas
such as cash desks.
compact end-to-end processing system
that belies its small size with features that
include the CashRay 180 high-tech sensor
and a person-to-machine interface.
The innovative Bank Express System sets
new standards of productivity and efficiency
Some casinos might still hesitate to
invest in a high-end system…
Which is understandable, as major
investments tend to weigh down short-term
profits. If you look at the longer-term economics,
however, you will find high-end solutions to be
more cost effective. Why? Because the return
on investment is achieved in various ways:
You have less shrinkage because banknotes
are monitored throughout the process and
there is hardly any manual interference. You
have highly efficient processes, so you save
on manpower. Larger volumes are processed
faster, with no interruptions. Last but not least,
don’t forget equipment longevity: G&D’s first
casino system is still in operation—it was
installed in 1997.
What qualifications are essential for a
solution partner?
Powerful technology is just the core. In
addition, it takes industry expertise to ask
the right questions, understand work flows,
anticipate future developments and come
up with good ideas. Also, a solution partner
will need to be familiar with the respective
country’s gaming regulations, currency
properties, processing requirements and so
on. So, global presence is essential.
for the satellite employee bank, working in
tandem with G&D’s Compass Casino to
provide controlled and secure access to as
many as 150 pre-assembled employee banks,
each containing up to 1,000 banknotes and
up to six rolls of coins. It not only automates
the bank-out function, it also tracks and
controls all cash balances, providing an
average dispensing time of seven seconds,
enabling cashiers to complete their backoffice transactions more efficiently and
spend more time serving their guests.
G&D continually adapts its systems
to meet changing market demands, legal
stipulations and security requirements,
whether it’s with a compact desktop
processor or a 20-stacker high-performance
system. Gaming-specific solutions include
high-security systems for automated cash
processing that perform counting and
sorting, authentication and the flexible
processing of different currencies. Visit Giesecke & Devrient at Stand #715
85
G2E ASIA 2015
Strength in Unity
Under the banner “Winning Combination,” the postmerger IGT will appear at G2E Asia with an expansive
exhibit developed specifically for the region’s players.
Housed on the CrystalDual cabinet, Fu Gui Ji Li offers exciting game play and communicates
“luck” and “fortune” through a culturally relevant symbol set.
T
he merger between the world’s
leading lottery supplier and the
world’s leading slot manufacturer,
first announced in July last year, is
finally complete. The combined entity,
listed on the New York Stock Exchange,
has adopted the name of the latter,
International Game Technology, which
now stands as the world’s leading end-toend gaming company.
86
“IGT is excited to showcase the combined
global strength of our newly formed
company,” says IGT CEO, International
Walter Bugno. “At G2E Asia, we will present
a portfolio that speaks volumes about our
customer-first focus and our commitment
to the success and growth of the Asia-Pacific
market. IGT continues to invest in extensive
market research with a global focus and
local emphasis, ensuring that the games we
DREAMS OF ASIA
on the premium
AXXIS product
line boasting
award-winning
TRUE 3D
technology.
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
encourage larger bets.
On the hardware front, the new
CrystalDual cabinet will make its Asia-Pacific
debut at the show. The CrystalDual cabinet
delivers remarkable visuals and presentation
through two pristine Multi-Layer Display
(MLD) touch screens. Great visuals are
complemented by outstanding audio and
thoughtful ergonomic design to round out
the CrystalDual cabinet’s dynamic player
experiences. This hardware is backed by
an extensive pipeline of games, including
fan-favorite titles and new Asian culturally
enhanced titles.
G2E ASIA 2015
Gong Xi Fa Cai
Another Asian-attuned progressive title
making its international debut at G2E Asa is
Fu Gui Ji Li. Also housed on the CrystalDual
cabinet, Fu Gui Ji Li offers exciting game play
and communicates “luck” and “fortune”
through a culturally relevant symbol set.
Also under the spotlight is the company’s
premium AXXIS product line boasting
award-winning TRUE 3D technology. Asianthemed games DRAGON’S TEMPLE 3D
and DREAMS of ASIA will complement an
extended library of other TRUE 3D games.
IGT will also highlight a robust core
portfolio of Asian themes on the G23
hardware platform, including new themes
Dancing Lion, Eastern Treasures, Chinese
Odyssey, Fortune Beast, Guardian’s Treasures,
Lantern Riches, and more.
Rounding out the games offer are colorful
titles from PopCap such as BEJEWELED,
ZUMA and PLANTS vs. ZOMBIES, all of which
will be presented on the MaxVusion cabinet.
On the systems side, IGT will present its
SYSTEM2go slot management system with
the new Platinum View edition, including
an interactive player display and a wealth
of new features. Also on display will be the
comprehensive GALAXIS casino systems
solution with its nine different modules.
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
enhance player engagement.
As part of IGT’s distribution agreement
with Macau-based LT Game, LT’s dealerassisted and fully electronic e-table systems
will also be on display, demonstrating both
baccarat and roulette games.
For more information on IGT’s Asianthemed portfolio, visit the company’s
Facebook site at facebook.com/IGT.
Visit IGT at Stand #909
The merger between the
world’s leading lottery
supplier and the world’s
leading slot manufacturer,
first announced in July
last year, is finally complete. The combined entity, listed on
the New York Stock Exchange, has adopted the name of the
latter, International Game Technology, which now stands as the
world’s leading end-to-end gaming company.
87
G2E ASIA 2015
Ramping Up
Aruze is unveiling over a dozen new games at the show,
providing fresh impetus for its rapid growth across the region
“I
t’s been extremely tough for
the Asian market over the past
12 months, and particularly for
Macau, where gaming revenue has fallen
dramatically,” comments Albert Yu, assistant
general manager for Aruze Gaming Macau.
He adds: “However, at Aruze we haven’t
slowed down our development and we see
this as a chance to increase our market share
by launching our new cabinet as well as a
wide range of new products at G2E Asia.”
The new CUBE-X cabinet has a
distinctive look, featuring high-definition
24-inch monitors, a completely redesigned,
ergonomically friendly box, and what the
company claims is one of the fastest data
processors on the market.
STACKIN’ MYSTERY CRYSTAL
BEAUTY on the new CUBE-X cabinet
88
One of games made specifically for the
CUBE-X, STACKIN’ MYSTERY CRYSTAL
BEAUTY, is the latest G-SERIES title. Played at
5-reels and 50-lines, it features the Crystal Ball
Feature, triggered when three or more feature
symbols appear on reels 2, 3, and 4, as well as
stacked wild symbols and free games.
The new EXTREME PROGRESSIVE link
series, meanwhile, “has proved to be a huge
success for us at Resorts World Genting,
which was our first installation in Asia,
and we strongly believe it will be a popular
hit for the Asian market, given the strong
preference of video links in the region,” says
Mr Yu. “Singapore has also been going well
for us, as we have made major strides on
getting new games on the floor. Overall I
EXTREME DRAGON is one of
four titles on the EXTREME
PROGRESSIVE link series
think we built a good momentum going into
2015 and we are just beginning to see the
results.”
EXTREME PROGRESSIVE is a 5 reel, 3
row, 243-ways to win linked series offering
free games and a 4-level progressive which
has 48 different jackpot settings. The series
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
INNOVATOR platform. It features three
titles, RAPID SHOT DIAMOND, RAPID
SHOT RUBY, and RAPID SHOT SAPPHIRE,
all of which are played at 5-reels and 30 lines.
The series comes on a 60-inch monitor
displaying the 5 levels of jackpots available
and overhead signage to give great visibility
on the floor.
Another highlight is DARK SAMURAI,
a 5-reel 30-line interactive game on the
G-DELUXE platform that offers several
different bonuses such as the wheel spin
bonus, free games, and samurai-themed
bonuses including the Battle Bonus, Slash
Bonus and Castle Bonus.
Visit Aruze at Stand #921
RAPID SHOT is Aruze’s first
ever INNOVATOR linked 5-level
progressive jackpot series
DARK SAMURAI
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
3D technology
that creates
the illusion of
life-size, fullcolor 3D moving
images.
T
he first thing that strikes you about
Interblock’s products is their sleek
design. But more than looks, it is
performance, value and innovative features
that have garnered the company a large
and growing presence across international
markets including Asia.
Continuing the company’s tradition of
marrying the latest tech innovations with
slick, eye-catching design is the Diamond
IB-HG 55-inch LCD with five play stations
that’s based on a new type of 3D technology,
creating the illusion of life-size, full-color 3D
moving images. The platform offers baccarat
with a range of custom-developed side
bets designed to increase the house edge,
including Lucky Nines, Super 6 and Hi-Ti.
The fully electronic Diamond Roulette
Generator with eight play stations uses air
pressure to launch the ball onto the brim
and a series of optical and proximity sensors
to track the ball during its path and to detect
its final position. The object of the footballthemed side bet Goal! Roulette is to move
The fully electronic Diamond
Roulette Generator with eight
play stations uses air pressure
to launch the ball onto the brim
and a series of optical and
proximity sensors to track the
ball during its path and to detect
its final position.
Ministar
Roulette
the ball down the field, earn a Shot on Goal
multiplier, and score a goal. The game lasts 3
spins, with a possible 4th shot on Goal Spin.
After a bet is placed, the color of the next 3
roulette results determines the direction the
ball moves (towards the red or black goal),
and the bigger the roulette result the further
the ball moves. The closer a team gets to a
Shot on Goal, the more the player wins, with
a goal paying up to 500:1. Players can follow
the animated action of Goal! Roulette on a
separate LCD display so as not to interfere
with the main game.
Then there’s MiniStar Roulette with
eight play stations, which will be on display
at G2E Asia with a single zero wheel along
with the mystery progressive jackpot side
bet Golden Chip. Like Interblock’s other
roulette products, Ministar Roulette offers
fast result detection and excellent roulette
wheel visibility.
And stay tuned over the next few days
for Interblock’s announcement of a new
leadership team for the Asia Pacific region
that the company says will demonstrate
just how serious it is about increasing its
footprint across the continent.
Visit Interblock at Stand #759 MAY 2015 inside asian gaming
89
REGIONAL
BRIEFS
Prime Minister Abe
sees casinos as key to
economic growth.
Lawmakers Submit Japan Casino
Legalization Bill
According to Reuters, Japan’s pro-casino lawmakers submitted to
parliament on 28th April a bill to legalize casinos in the country, the
latest bid to establish an industry that Prime Minister Shinzo Abe
sees as key to economic growth.
Parliamentary records showed that members of the ruling
Liberal Democratic Party, the Japan Innovation Party and the Party
for Future Generations had submitted the bill, but it was unclear
when it would be discussed or voted on.
The lawmakers have said they hoped the bill would pass before July
or August, when the current parliamentary session is expected to end.
Attempts to legalize casino gambling in Japan, which industry
experts say is one of the world’s last major untapped gaming
markets, have been delayed repeatedly amid opposition from
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
in time for the 2020 Tokyo Olympics.
Mohegan Sun Operator Makes
Incheon Casino Proposal
The Mohegan Tribal Gaming Authority, operator of the Mohegan
Sun casino in the US, has joined with the operator of South Korea’s
Incheon International Airport in a proposal for a US$5 billion
development with a casino resort component at the site of the airport.
International gaming companies are being lured to South Korea
by the government’s decision to award two further gaming licenses
this year, along with the promise of a market that saw a 42% jump
in Chinese tourists last year to a record 6 million.
90
Incheon International Airport said their proposed resort would
be developed on the grounds of the gateway airport to Seoul, which
serves more than 45 million visitors annually.
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
would also be near Incheon airport, and Philippines’ Bloomberry
Resorts Corp which has plans to invest $1 billion to build a casino
complex in the country.
Bloomberry, which has not said where its proposed casino
would be, has bought an island off the coast of Incheon and bought
an existing casino in Jeju Island. If it decides to build the integrated
resort in Jeju it would not need a new license.
Most of South Korea’s current casinos are tiny by the standards
of Macau or Las Vegas. Upcoming projects include one being
built by a joint venture between South Korea’s Paradise Co Ltd
and Japan’s Sega Sammy Holdings Inc, and another by Caesars
Entertainment Corp and Lippo Ltd. Both those projects will also be
near Incheon airport.
Rendering of Incheon International Airport’s proposed resort
Paradise Q1 Casino Revenue Declines
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).
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
gaming revenue, meanwhile, was up 12.2% to KRW8.8, accounting
for 6.6% of total casino revenue in the quarter. Paradise operates five foreigner-only casinos in South Korea,
including its current flagship, Walkerhill. The company is in the process of significantly expanding
its operations. In a joint venture with Japanese gaming machine
manufacturer Sega Sammy, it broke ground on the country’s first
destination-scale casino resort, dubbed Paradise City, in November
at a special economic development zone on Yeongjong island, the
REGIONAL
BRIEFS
site of Incheon International Airport, the main gateway for foreign
arrivals, located about 30 kilometers from Seoul. Paradise City
is expected to open in 2017 at an initial cost of US$750 million.
Meanwhile, Paradise also plans to expand the floor space at three
of its existing casinos. 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%
Aquis proponents say it would directly create 10,000 new jobs.
In its first stage, it would build 4,000 luxury hotel rooms on
a platform over a series of lagoons with a theatre, aquarium,
restaurants and casino targeted at a “family-friendly” premium and
VIP Chinese tourist market.
Artist’s impression of the proposed
Aquis Great Barrier Reef Resort
Rendering of Phase 2 of Galaxy Entertainment Group’s flagship Galaxy
Macau resort, scheduled for a 27th May unveiling
Galaxy Q1 EBITDA Drops 40%
Aquis Great Barrier Reef Resort
Wins Federal Approval
Hong Kong billionaire Tony Fung has moved a step closer to building
his ambitious A$8.15 billion (US$6.4 billion) Aquis Great Barrier
Reef Resort north of Cairns, Australia, after winning environmental
approval from the federal government in early May.
But Mr Fung must still win state government agreement to
develop the casino component of the proposed development with
Aquis project director, Pat Flanagan, saying that could take at least
two more months.
“We are working with the government to agree the process to
finalize the casino agreement,” Mr Flanagan said.
“The completion of the environmental approvals and planning
assessment means that the only outstanding item to be completed
is the casino agreement with the State Government, which we hope
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
a casino on the Gold Coast and is yet to announce who will win
the Queen’s Wharf project in Brisbane which will have a gaming
element—with the contest down to James Packer’s Crown group
bidding against Echo Entertainment.
Meanwhile, Mr Flanagan said the federal government
environmental approval demonstrated the proposed project respected
the world heritage-listed Great Barrier Reef and wet tropics rainforests.
He said the federal government approval, combined with
the Coordinator-General’s Assessment Report, completes the
environmental assessment of the proposal.
Aquis claims the Yorkey’s Knob resort will generate up to A$988
million in gross regional product during the construction of stage
one and $10.2 billion at full operation.
Galaxy Entertainment Group said its first-quarter earnings before
interest, taxes, depreciation and amortization fell 40% year on year
as Macau’s steep gaming revenue slide continued.
The company’s total gaming revenue dropped 34% to HK$13.3
billion (US$1.7 billion) in the quarter. The company attributed the
decline to the 16% fall in total mass table revenue to HK$4.3 billion
while total VIP revenue plunged 41% to HK$8.7 billion.
“The challenges of 2014 have continued into 2015 and their
impact has been felt across the market including at Galaxy
Entertainment. The group continues to manage its properties
effectively, in light of these conditions, and drive profitability,” the
company said in a stock exchange filing.
Total debt increased to HK$2 billion as of 31st March due to
a treasury management exercise where interest income on cash
holdings exceeds corresponding borrowing cost.
“Our business remains healthy and we continually review our
operations to ensure that both short and longer term opportunities
are maximized,” the company said.
LVS Profit Drops on Macau Slowdown
Las Vegas Sands Corp said its first-quarter earnings fell 34% year on
year on continued pressures from a slowdown in Macau.
Beijing’s ongoing corruption crackdown and a weakening
economy on the mainland have cut into the gaming industry in
Macau, reports The Wall Street Journal. Local casino operators
including LVS have been re-evaluating costs amid the pressures on
their revenue and margins.
LVS, which has four casinos in Macau, said its Sands China
subsidiary reported gaming revenue slumped 35% to US$1.77 billion in
the first quarter. Segment net income dropped 54% to $344.7 million.
Overall, LVS reported a profit of $511.9 million, down from
$776.2 million in the year-ago quarter. Total revenue dropped 25%
to $3.01 billion.
91
INTERNATIONAL
BRIEFS
Morgan Stanley Slashes US Online
Gaming Forecast
Morgan Stanley has cut its estimate of the potential US Internet
gambling market by nearly half.
The firm now estimates the nationwide online betting market
at $2.7 billion by 2020, down from an initial estimate of $5 billion.
In a report issued last month, the firm predicts no additional
states will approve Internet gambling this year, but foresees
California, Pennsylvania, New York and Illinois getting into the
game within a few years.
Three states—Nevada, New Jersey and Delaware—have
legalized Internet gambling, but online betting is off to a slow start.
It took in $135 million last year; Morgan Stanley initially forecast
$678 million.
“We continue to believe that there is a material runway for
growth, but results have been disappointing,” the firm wrote.
“Legislative processes continue to be slow as lawmakers remain
unconvinced that online gaming is currently worth the hassle for
limited tax revenue.”
The report cites several factors holding back the Internet
gambling market, including problems with payment processing, a
lack of effective advertising, difficulties with geolocation technology
intended to ensure that a gambler is within a particular state’s
boundaries, and a thriving offshore Internet gambling market.
Morgan Stanley forecasts the 2017 online market will be $410
million, down from an initial estimate of $1.3 billion. It predicts 15
states will legalize online gambling by 2020, with legalization in
larger states prompting smaller ones to follow suit.
It also believes a federal ban on Internet gambling remains
unlikely, but is a growing risk.
Two Las Vegas Strip Operators
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
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.
Wynn Resorts Swings to a Loss in Q1
Wynn Resorts Ltd cut its dividend last month as it swung to a
quarterly loss amid steep declines in Macau gaming revenue.
The quarterly dividend was reduced to 50 cents a share from
$1.50 and comes as a corruption crackdown, tighter regulations
and a weakening economy on the mainland have cut into Wynn’s
business in Macau. The dividend cut will save the company about
US$101.5 million in the quarter.
The results also follow an intense public battle with Elaine
Wynn, the company’s co-founder and third-largest shareholder,
after shareholders voted not to return her to the board.
For the most recent period, Las Vegas-based Wynn reported
revenue from its Macau operations fell 38% to $705 million, with
table games turnover in its VIP segment declining 52%.
Average daily hotel room rates fell 2.1% to $331, while occupancy
fell to 97.5% from $98.1% a year earlier.
In addition to its majority-stake at Wynn Macau, Wynn Resorts
owns a resort in Las Vegas and is developing a resort in Everett,
Mass., north of Boston.
In the latest quarter, Wynn’s Las Vegas operations posted a
1.6% increase in revenue to $387 million. Room revenues were
down 3.3%, and occupancy fell to 83% from 88%.
Overall, Wynn reported a loss of $44.6 million, or 44 cents a
share, compared with earnings of $227 million, or $2.22 a share, in
the year-ago period.
Excluding preopening costs and other items, profit fell to 70
cents a share from $2.32 a share a year earlier.
Revenue fell to $1.09 billion from $1.51 billion.
Wynn Macau
INTERNATIONAL
BRIEFS
March Gaming Revenue Down on the Strip
The popular bronze statue depicting the Crazy Girls revue at the Riveria
Riviera Closed After 60 Years on Vegas Strip
“If the ghosts of Frank Sinatra and Liberace were still hanging around
the Riviera Hotel and Casino on Monday morning, they wouldn’t
have found a seat at the bar,” reported the Associated Press on 4th
May, the day “The Riv” closed after 60 years on the Las Vegas Strip.
It’s an age reached by few properties along the four-mile stretch
of hulking casino resorts. The Riviera’s only remaining elder is the
often-renovated Flamingo that Bugsy Siegel debuted in 1947. The
Tropicana, which opened in 1957, is close behind.
“The amazing thing about Las Vegas is how soon it forgets
itself because it keeps reinventing itself,” said Jeff Kutash, the
dancer, choreographer and producer who brought the aquatic stage
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 photoop in front with the ladies of topless revue Crazy Girls, posteriors
immortalized with a bronze statue of their behinds.
The Riv’s star wattage started with bejeweled piano man
Liberace, the property’s first headliner, and its marquee eventually
included Frank Sinatra, Engelbert Humperdinck, Tony Orlando and
Dolly Parton.
Rat Pack member Dean Martin was a part-owner for a short
time. Another former owner married frequent Riviera performer and
Golden Globe winner Pia Zadora.
The long-running stage show “Splash” brought water, fountains
and pyrotechnics to a Las Vegas stage starting in 1985, long before
Cirque du Soleil did.
Eventually, the Riviera’s casino became the set for “Casino,” the
1995 movie featuring Robert De Niro, Sharon Stone and Joe Pesci and
based on real-life Las Vegas mobsters Frank Rosenthal and Anthony
Spilotro during their 1970s heyday at the Stardust and other properties.
It served as Hollywood’s hangout for decades, from the Rat
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
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.
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%
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
with the volatile nature of
baccarat, we didn’t hold
Baccarat continues to drag down
Strip revenue
very well,” Mr Lawton said.
Casinos fared better
in the rest of Clark County.
In downtown Las Vegas,
revenue rose 4.6% to
$53.6 million. North Las
Vegas had an even better
month, with revenue
increasing 14.4% to $29.3
million.
Hackers May Have Stolen Hard Rock
Customer Credit Card Data
Hard Rock Hotel & Casino Las Vegas said on 1st May that a malware
attack may have allowed hackers to steal credit card information
used at its retail and service locations.
The potential breach may have included names, credit card
numbers and their CVV security codes but not PIN numbers or other
sensitive customer information, the company said in a statement.
The attack, discovered on 3rd April, was limited to credit or debit
card transactions between 3rd September, 2014 and 2nd April, 2015,
at the company’s restaurant, bar and retail locations, including the
Culinary Dropout Restaurant.
Transactions at the hotel, casino, Nobu, Affliction, John
Varvatos, Rocks, Hart & Huntington Tattoo and Reliquary Spa &
Salon were not affected, it said.
The company said it is actively cooperating with law enforcement
and credit card companies to investigate the attack.
Hard Rock Hotel & Casino Las Vegas
93
Events
Calendar
19|21 May 2015
29 September
|1 October 2015
Global Gaming Expo Asia
The Venetian Macao, Macau
G2E Asia bills itself as the premier Asian gaming event and one-stop
sourcing platform for regional gaming decision makers to discover the
most comprehensive array of new products and services, network with
industry-leading manufacturers, and learn the latest trends. Held in
Macau, the heart of Asian gaming, G2E Asia claims to offer attendees the
best resource to gain a competitive edge in their businesses and careers.
www.g2easia.com
2|5 June 2015
IAGA International Gaming Summit
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
brings together leaders from all global gaming sectors, providing gaming
operators, suppliers, attorneys, investors, bankers, regulators and other
advisers with an unparalleled opportunity to meet and discuss the top
issues and challenges facing gaming today.
9|11 June 2015
The Slot Summit
Bucharest, Romania
The Slot Summit combines marketing insight and innovation, the latest
gaming floor trends, real world case studies and new technologies and
cutting edge game development in an intensive yet entertaining format
which will ensure that you have the information you need to plan, invest
and implement wisely and with maximum effectiveness.
www.slotsummit.comwww.theiaga.org/iaga-summit
11|13 August 2015
Australasian Gaming Expo
Sydney Convention and Exhibition Centre, Sydney, Australia
Global Gaming Expo
Sands Expo and Convention Center, Las Vegas, USA
G2E is the world’s largest gaming event where gaming executives,
buyers and industry professionals meet each fall to conduct serious
business. It’s gaming’s most in-depth source of new products,
networking, ideas and information. It takes place in the laboratory of the
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
gaming industry.
www.globalgamingexpo.com
20|22 October 2015
European iGaming Congress & Expo
Arena Berlin, Berlin, Germany
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.
www.eigexpo.com
17|19 November
Macao Gaming Show
The Venetian Macao, Macau
The Macao Gaming Show prides itself on having a diverse selection of
exhibitors displaying products and services from both the gaming and
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
gaming business opportunities throughout Asia, regulatory issues and
gaming best practices.
www.macaogamingshow.com
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
94
www.asgam.com

From glitzy NagaWorld to the gritty frontier casinos

Transcription

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