Wire ASIA & OCEANIA
Genting Fails but Big Six Prevail in Macau
AUSTRALIA – Australia’s largest poker machine operator Australian Leisure and Hospitality Group will face 62 charges for allegedly operating gaming machines that didn’t have mandatory pre- commitment technology (YourPlay) installed.
After an anonymous tip off in December 2021, VGCCC inspectors immediately mobilized to visit multiple venues in Hallam, Sandringham, Narre Warren, Mulgrave, Laverton and Cheltenham to verify the widespread and significant breaches.
Following VGCCC inspections, the company then turned off all 220 non-compliant machines across 62 of its 77
venues.ALH and an ALH executive officer of the company will face charges for failing to ensure mandatory player equipment was installed under the Gambling Regulation Act 2003.
The 62 charges could attract a maximum fine of around $1.35m.
SOUTH KOREA - International Development has put forward a proposal to change the English name of the company from Landing International Development to Shin Hwa World.
The company operates Landing Casino, which with an area of approximately 10,000 square metres is currently one of the largest casino in South Korea, and Jeju Shinhwa World Hotels & Resorts on Jeju Island in South Korea, which is comprised of four luxurious hotels, including Marriott Resort and Four Seasons Resort in partnership with the world- renowned hotel brands, and Landing Resort and Shinhwa Resort, the Group’s own-brand hotels.
The Board believes the proposed change 'will benefit the Group’s future business development’.
PHILIPPINES – Analysts at GCG Gaming Advisory Services believe that new casinos in the Philippines casino sector will generate GGR of US$10bn by 2027, doubling its revenues in just five years.
The firm is predicting that GGR will bounce back to 2019 levels of US$5bn next year, increasing from the predicted 2022 total of US$3.9bn and US$4bn in 2022. The Philippines sector will see the full opening of NUSTAR, the unveiling of The Emerald Bay in Cebu, the opening of Solaire North in Quezon City, a Solaire casino in Cavite, and the debut of Westside City all by 2025. There will also be expansion projects at Hann Casino and Royce casino in Clark.
Casino revenues for Q3 hit US$1.04, marking the best quarterly results since the fourth quarter of 2019 which came in at US$1.31bn. Clark casinos contributed approximately US$110m, NUSTAR in Cebu US$20m and the two Fiesta casinos US$8m.”
P18 WIRE / PULSE / INSIGHT / REPORTS
Disappointment for Genting, but relief for the six existing licence holders who now await final details as to the scale of expected investment.
Stock prices for the Macau’s six casino operators soared at the end of November as they won new licences to continue running their businesses in the city, while a firm linked to Genting Group failed in its attempt to win market entry.
Te government will discuss contract details with the winners and settle on official agreements before the end of the year, but in the meantime the new licenses will take effect at the beginning of 2023 for a 10-year term.
Galaxy Entertainment, MGM China, Sands China, Wynn Macau, Melco Resorts & Entertainment and SJM Holdings all retained their concessionare statuses, while Genting controlled GMM, was not selected for a new licence. Te decision to retain all existing operators came as a relief amid the Covid- induced tourism drought and China’s crackdown on high rollers to curb capital outflow. Beijing continues its push to reduce Macau’s reliance on gambling - which contributes 80 per cent of the local government’s income, forcing the enclave to diversify into other sectors such as tourism, conferences and finance.
Te terms of the licence prioritises the safeguarding of local employment, the development of overseas tourism and investment in non-gaming businesses.
“Te operation and development of our gaming industry has come to a certain scale, but there are also some problems,” announced Secretary for Administration and Justice Cheong Weng Chon. “For example, the source of our tourists is too concentrated. It’s not healthy.”
Macau relies on mainland China for the bulk of its visitors, and its tourism has been severely affected during the Covid-19 pandemic as Beijing’s zero tolerance to the virus means repeated lockdowns and visa restrictions that keep people from traveling.
In July, when the enclave faced its biggest outbreak, the city shut down for two weeks, leaving casinos with almost zero income.
Gaming revenue in the city has plunged since March and fell to record low of US$49m in July, a 98 per cent decline from the pre-Covid levels in 2019.
Sri Lanka Colombo Lotus Tower to offer casino gaming
Sri Lanka is to add to its current total of five casinos with a sixth being agreed as part of an entertainment area across one floor of the Colombo Lotus Tower.
Te communications tower which opened in Colombo in September is the 19th tallest building in the world and the 11th tallest in Asia. Whilst functioning as a radio and television broadcasting antenna, the structure also offers a museum, eateries, MICE facilities, an observation deck and luxury hotel rooms.
Sri Lanka’s State Minister of Tourism, Diana Gamage has revealed that Lotus Tower Management Company (LTMC) will be given US$1.4m each year following conclusion of an agreement with Singapore’s
Kreate Design Pte Limited to operate a casino there. A waterpark is also planned.
Kreate Design’s Business Development Director Cyntia Chan said: “Tis investment agreement includes development of water sports and an entertainment zone, one of the best to be developed at world class standard at the Lotus Tower in Colombo. Tis will enable Colombo Lotus Tower as a hub to develop trade, investment and tourism activities between Singapore and Sri Lanka.”
Malaysia
Fitch ratings believes that improved revenues in Malaysia and Singapore will allow Genting Berhad to pay off debt and deleverage from its current capex requirements.
Te operator of Resorts World Genting in Malaysia and Resorts World Sentosa in Singapore should be able to come down from 4.0x net debt/EBITDA in 2021 to 2.8x by 2024 in Malaysia and from 4.2x to 3.2x in Singapore. Fitch believes revenue will be back at 75 per cent of pre-pandemic levels this year in Malaysia and up to 95 per cent in 2023. With its greater reliance on international tourism, Singapore will take longer to recover, hitting 65 per cent of 2019 revenues this year, and increasing back up to 90 per cent in 2023 with a full recovery the year after.
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