Wire ASIA & OCEANIA
Kangwon Land reveals $1.9bn plans
THAILAND – Thailand’s future casino industry moved a step closer with the House of Representatives giving its approval for the study advocating the birth of a legal casino sector. The proposals will now need to be voted in by the cabinet.
The support for introducing casinos was strong with the House vote seeing 253 of the 257 legislators voting in favour of the relatively low proposal of a 17 per cent tax on GGR. Other details include 20 year licences and thereafter renewed every five years. The larger resort complexes would need a minimum investment of US$2.7bn. The study pushes for different sized casinos to attract different levels of investment with the first wave of licenses to be launched to be for the largest resort complexes.
Prime Minister Srettha Thavisin lent his support, saying: “It’s time for our society to stop hiding the gambling, which is out there, and just properly regulate and take care of it. I am not sure when the law will get approved and an entertainment complex can start operation. It will probably take some time. During the interim period, we need to tackle those illegal activities.”
Maybank Investment Bank Analyst, Samuel Yin Shao, said: “Licence bidders will be evaluated by a committee headed by the Prime Minister. We understand that favoured locations are in the Eastern Economic Corridor (Rayong, Chonburi, and Chachoengsao), south (Phuket, Phang Nga, Krabi), north (Chiang Mai, Chiang Rai, Lampang) and northeast (Nong Khai, Udon Thani, Khon Kaen, Nakhon Ratchasima). These locations are also in the midst of building/upgrading their airports, ports and high-speed rail... Assuming two years to finalise a regulatory framework and three years to construct, the first economic corridor may only open in 2029.”
MACAU- Asian capital markets and investment group CLSA has increased its guidance for Macau’s casino revenue in 2024 by 3.5 per cent, saying that improving visitation should push GGR to US$30.3bn. This would give the sector growth of 34 per cent YoY with another five per cent envisaged for 2025 taking that year’s total to US$31.9bn
CLSA analysts Jeffrey Kiang and Leo Pan said: “The sector’s balance sheet strength has improved, as net debt declined four per cent year-over-year in 2023. MGM China and Wynn Macau have already resumed dividends, which surprised investors.
“We continue to attribute such resilience to Macau’s niche positioning, targeting less than two per cent of China’s population. Galaxy, Melco and SJM are introducing smart chips in 2024 to better target premium players for promotions and improve table turnover.”
P26 WIRE / PULSE / INSIGHT / REPORTS
Known as K-HIT Project 1.0, plans have been unveiled to strengthen the future competitiveness of Kangwon Land ahead of Osaka’s casino opening.
With the looming competition of a casino in the Japanese prefecture of Osaka, South Korea’s Kangwon Land is to spend US$1.9bn revamping its casino into a luxurious integrated resort with a bigger gaming floor, more hotels, a sky bridge as well as a host of additional leisure facilities.
US$1.34bn will be spent on a new gaming floor and a cultural complex with another US$201m on a new hotel. Te gaming floor will be expanded from 15,486 square meters to 49,500 square meters ‘addressing the current chronic shortage of seats in the venue,’ according to CEO Choi Cheol-Gyu.
Alongside its cultural complex, the operator is looking to enhance its walking trails around the casino , open a wellness centre and develop a luxury pool villa. Known as the K-HIT Project 1.0, the plan is to strengthen the future competitiveness of Kangwon Land, with the K standing for Koren, H standing for High1, I standing for Integrated, T standing for Tourism, and 1.0 standing for a new beginning. Te presentation unveiling the plan was attended by more than 700 people.
Australia
Star Entertainment Group continues to take hits from all sides with the absence of premium players in the March quarter seeing the operator generate a net loss of AU$6.8m, marking a 19.3 per cent year- on-year drop in premium revenues.
Te operator stated: “All Star properties continued to experience lower revenue from their Premium Gaming Rooms (PGRs) in the quarter. Te Star Sydney PGR revenue was down 19.3 per cent on the prior comparable period (pcp).
Te group highlighted that it had increased resourcing in the risk, controls and transformation teams to strengthen the control environment. Operating expenses are up $1.8m on the monthly run-rate from the first half of FY24.
Te operator formed a Special Committee on Strengthening the Competitiveness of Kangwon Land Integrated Resorts in January and collected opinions from stakeholders, industry experts, local residents, internal employees, and visiting customers for the past three months. It has set a goal of ‘revitalising the economy of abandoned mine areas and becoming a global K-integrated resort that leads Korea’s tourism industry’ by 2032.
Te operator has set quantitative goals such as increasing the proportion of non-casino sales from the current 13 per cent to 30 per cent, increasing the number of visitors from the current 6.8 million to 12 million, hiring 3,400 new employees, and increasing the number of foreign tourists by more than 1,000 per cent.
Acting CEO Choi Cheol-kyu said that current problems faced by Kangwon Land included an unclear resort identity, a lack of food and entertainment, and attracting foreign tourists. It wants to develop a sky bridge that will become a landmark attraction as well as promote wellness forest tourism.
Australia Victorian punters to be better informed
Victorian betting account holders will now see their true spending and losses under new standards that specify how this information must be displayed on player activity statements.
Tese changes come after the Victorian Gambling and Casino Control Commission (VGCCC) analysed sample activity statements across a number of providers and found inconsistencies in how information was presented.
Account holders will more clearly see how much of their own money they have lost, with free and bonus bets excluded from net loss figures on their monthly statement. Net wins will also be more accurate, with stakes (the money spent in placing the bet) being deducted from pay out amounts. Wagering providers will
need to use plain English, avoid unnecessary jargon, and limit the use of colours to black and red (to show losses). Te same gambling harm taglines that appear at the end of wagering gambling advertisements must also be displayed on each statement.
Following an implementation period, from 1 April all wagering providers were required to comply with the new standards. Non- compliance could attract a penalty of 60 penalty units, which is equivalent to $11,538.60 for each non-compliant activity statement issued.
Te requirements will strengthen how wagering service providers comply with the National Consumer Protection Framework and the Victorian Harm Minimisation Ministerial Directions.
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