The year ahead - David Green

1) Regulators and policymakers alike will come under increasing pressure to address issues such as the integrity of sports betting, whether social gaming should be regulated, what prescriptive standards and requirements should be set aside in favour of risk-based regulatory oversight, and how emerging technologies like virtual reality games should be evaluated for suitability to be offered as gambling propositions. The challenges of short cycle technology in the gaming industry are not new, but the current proliferation of new technologies is. Regulatory lag is likely to become an increasingly evident constraint on industry growth in 2017.

Proponents seem focused on their capacity to buy such a license, in addition to any legal privilege they may be able to purchase. In my view, that is a dangerously misguided and culturally imperialistic view.

2) While Japan is seen by the industry as perhaps the last great untapped opportunity for investment, that is not necessarily a view shared by the Japanese. A social license to support legalization is likely to be far more significant than in any other Asian country which has moved to allow integrated resorts, with the possible exception of Singapore. Proponents seem focused on their capacity to buy such a license, in addition to any legal privilege they may be able to purchase. In my view, that is a dangerously misguided and culturally imperialistic view.

3. I expect the Macau SAR government will give industry some guidance as to how it will handle the looming expiry of the casino concessions. The first of the concessions (SJM/MGM) is scheduled to expire on March 31, 2020. Given both SJM and MGM are yet to open their Cotai developments, there is a pressing need for clarity around the process…will it require a re-tender? Will exceptional circumstances justify the extension of the term of the SJM concession, and by extension, of the MGM sub-concession, by the Chief Executive prior to his departure from office in December 2019? What will the government expect from the concessionaire in consideration of the concession being extended, or a new concession granted? What will be the term of any new concession? And so on it goes.  

Note from David Green, CEO, Newpage Consulting.

Other notes from: 

Andrew Klebanow, Global Market Advisors

Augustine Vinh, president and CEO of Stellar Management

Ben Lee, managing partner of IGamiX Management & Consulting

Ebbe Groes, CEO of EveryMatrix

Harmen Brenninkmeijer, managing partner at Dynamic Partners

Jay Sayta, founder of Glaws.com

Michael Zhu, vice president, operations, planning, analysis of Innovation Group

Mike Santangelo

Sam Sheng, director of Double Square Consulting

Steve Gallaway, Global Market Advisors

Sudhir Kale, CEO of GamePlan Consulting

Tim Shepherd, co-founder and president of business development at Silver Heritage Group

More news from this jurisdiction

Macau, JapanMonday, Jan 09, 2017

SJM Holdings executive director Angela Leong doesn’t believe the opening of casinos in Japan will have a strong effect on Macau.

Japan, SingaporeThursday, Jan 05, 2017

Japan will prove to be the largest opportunity in gaming today and all hospitality companies will be active in the market evaluating the potential opportunity while the legislation is being written.

Singapore, MacauTuesday, Apr 26, 2016

Genting Singapore announced on Friday that its indirect wholly-owned Macau subsidiary, Genting Star (Macau) Limited (GSML) has been dissolved and liquidated.

Macau, SingaporeWednesday, Jul 01, 2015

Sands China Ltd. has announced a new professional development programme for its dealers that would give up to 100 dealers a chance to spend 12 months on secondment at Marina Bay Sands in Singapore.

Elsewhere, Macau, SingaporeThursday, Apr 23, 2015

Las Vegas Sands reported weaker-than-expected Q1 profit and revenue, pulled down by a slump in its Macau gaming operations. Group net revenue for the first quarter of 2015 decreased 24.9 percent to $3.01 billion...

MacauMonday, Jan 16, 2017

Stronger than expected gaming revenue in the fourth quarter of 2016, along with improvements in VIP and mass play could see Macau achieving gaming revenue growth of 6 percent in 2017, says analysts from Morningstar.

MacauMonday, Jan 16, 2017

Macau ADR in the past week (January 9 - 15) slowed down to MOP 614 million (US$76.9 million), down 4 percent from the week preceding, said Bernstein in a note on Monday.