Daily Asia Gaming eBrief: Melco propelled to new heights on non-gaming boost

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AGBrief Editorial

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May 21, 2025

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Daily Asia Gaming eBrief: Melco propelled to new heights on non-gaming boost

Good Morning. Who says that water can’t dance? And right now, for Macau gaming operator Melco, it’s dancing exactly to the tune of their music. Their billion-dollar non-gaming investment had long been a staple attraction for visitors. And now they’re putting their money where the water flows. Meanwhile, Studio City continues to thrive, and MGM works to secure market share, with both having cash-backed futures. Over in Thailand, things are looking slightly up, as the deputy finance minister tries to dispel concerns over the proposed casino bill, highlighting economic benefits.

What you need to know

Melco’s House of Dancing Water relaunch, Studio City ramp-up, and balance sheet strength drive bullish outlook from Morgan Stanley.
Thailand’s Deputy Finance Minister has strongly defended the government’s plan to create integrated entertainment complexes.

On the radar

Kangwon Land gains approval to raise Blackjack and Hold’em betting limits.
Hong Kong completes public hearing on legalizing basketball betting.
Lawrence Ho-affiliate Black Spade Capital invests in real estate group IFCX.
Sega Sammy nears completion of acquisition of GAN Limited.

AGB Intelligence

MACAU

Bullish outlook for Melco, playing to non-gaming

Melco has long been undervalued, and analysts have taken a bullish stance towards the Macau-based operator, particularly as it proves its worth across multiple markets and through various segments. The recent relaunch of its massive House of Dancing Water show in Macau is propelling it to new heights. Meanwhile, Studio City continues to ramp up and provide more reasons for footfall. Exciting times ahead.

Corporate Spotlight

Bettorify bridges European operators to Asia’s gaming markets

With over 30% of global gaming revenue projected to come from Asia soon, the window of opportunity is wide open. Bettorify’s white-label and turnkey solutions deliver what most platforms miss: sharp execution backed by real local expertise.

Industry Updates

Continent 8 Technologies secures approval to deploy next-gen AWS Outposts.
TaDa Gaming signs on as sponsor for Ortak x B.F.T.H. Arena Awards 2025.
Games Global launches Gold Blitz Ultimate across the US with BetMGM.

INTELLIGENCE | ASEAN | CAREERS

In a note series called ‘Casino Tale’, Morgan Stanley analyst Praveen K Choudhary notes that Melco Resorts stands to benefit significantly from multiple factors. The company’s revival of the iconic “The House of Dancing Water” entertainment show is expected to drive increased visitation and spending. Additionally, Melco possesses substantial de-leveraging potential and offers an attractive free cash flow to equity (FCFE) yield.

The refreshed entrance and improved table configuration at Melco’s Studio City property have already enhanced performance, positioning the company to capitalize on Macau’s recovery. The ongoing ramp-up of Studio City Phase 2 presents another opportunity for growth in the coming months.

Contrary to some competitors who are priced for substantial market share gains in fiscal year 2025, Melco has more reasonable growth expectations built into its current valuation. This creates a favorable setup for potential upside surprises as the year progresses.

Morgan Stanley’s base case valuation for Melco uses a target yield on 2025 estimated FCFE of 8.5 percent, which is 50 basis points higher than the long-term average since 2012, reflecting the current elevated interest rate environment.

Meanwhile, MGM China also received a positive outlook from the investment bank. The company has maintained its market share in April and May despite having less room capacity than competitors. MGM recently opened 10 new villas at its Peninsula property, further strengthening its premium offerings.

Morgan Stanley notes that MGM China benefits from relatively low growth expectations compared to competitors. The firm believes MGM can maintain its EBITDA share, potentially leading to upward revisions of 2025 earnings estimates.

Like Melco, MGM China offers attractive FCFE yield and dividend prospects. Morgan Stanley’s base case valuation uses the same 8.5 percent target yield on 2025 estimated FCFE.

The broader Macau market showed mixed signals during the analysts’ May visit. The May holiday period demonstrated strong performance with visitation up 40 percent and revenue increasing 12 percent year-over-year. However, this surge didn’t maintain momentum, unlike the Chinese New Year period earlier in 2025.

Room capacity remains a critical factor for driving both gaming and non-gaming revenue in Macau. The market continues to see substantial capital expenditure, with a significant portion of the projected $17 billion industry-wide investment not yet deployed.

Morgan Stanley concludes that favorable valuation and free cash flow metrics should benefit select operators, particularly if gross gaming revenue grows more than 5 percent year-over-year, driving operating leverage and positive earnings revisions.

Regarding potential risks, Melco’s outlook could be affected by market share losses and high interest expenses, while MGM could face challenges from competitors’ new capacity additions and potential increases in operating expenses that might compress margins.

Julapan highlighted the success of legalized casinos in countries like the United States and Singapore, questioning whether they also face similar scrutiny, The Nation reported. He pointed out that the existing illegal gambling scene poses a greater risk to the country’s image than regulated casinos.

Despite criticism, the government remains committed to the Entertainment Complex project, which has been in discussion for decades. Following Cabinet approval, the draft legislation is now moving through parliamentary channels.

The government anticipates this project will significantly boost Thailand’s economy, attracting over THB100 billion ($3 billion) in investment. If approved, a dedicated regulatory body will be established within a year, with construction expected to begin within three years.

The proposed legislation includes comprehensive regulations covering financial controls, social safeguards, and preventive measures against gambling addiction.

The legislation received in-principle approval on January 13th and aims to legalize casinos and other gambling forms through integrated resorts. Under the proposed framework, casinos would be required to operate through Thai-registered corporations, with amendments restricting Thai citizen entry to individuals possessing at least THB50 million ($1.5 million).

Amongst the many interested parties, the Thai government recently held discussions with executives from Las Vegas-based Wynn Resorts regarding potential investment in entertainment complexes.

As reported by AGB previously, Prommin Lertsuridej, Secretary-General to the Prime Minister, disclosed that six to seven major international investors have already expressed interest in developing full-service entertainment complexes in Thailand.

Mak addressed concerns regarding the regulation of basketball betting, particularly in light of rising football betting figures in recent years. “If the government does not provide a regulated avenue, illegal gambling may become even more rampant,” she said. “While the government does not encourage gambling, the widespread nature of illegal activities calls for a multifaceted response.”

According to the consultation document released by the Home and Youth Affairs Bureau, the government believes that providing a legal betting channel can reduce illegal gambling, protect consumer rights, and mitigate crime risks.

Citing data from the Hong Kong Jockey Club (HKJC), the government noted that illegal basketball betting has surged to become one of the city’s most popular sports betting activities. In 2023, an estimated 100,000 to 150,000 people engaged in illegal basketball betting, with a turnover of HK$32 billion to HK$34 billion ($4.1 billion to $4.4 billion). In 2024, that number rose sharply to approximately 430,000 bettors, generating an estimated HK$70 billion to HK$90 billion ($9 billion to $11.5 billion) in illegal wagers.

Furthermore, HKJC’s research conducted by Oxford Economics indicated that 49 percent of illegal basketball bettors would consider switching to legal platforms if basketball betting were authorized under HKJC.

This regulatory green light follows a similar approval less than a week ago, in which Kangwon Land was allowed to dramatically raise betting thresholds on two VIP baccarat tables. The minimum bet was raised from KRW50,000 ($35.9) to KRW500,000 ($359.5), and the maximum differential between “banker” and “player” bets soared from KRW2 million ($1,438) to KRW30 million ($21,570).

The latest move signals a shift toward higher-yield table configurations as the property looks to optimize its gaming floor mix and better cater to higher-stakes customers.

These changes come amid continued efforts by Kangwon Land to revitalize its gaming operations following post-pandemic recovery trends and growing domestic demand.

TCSJOHNHUXLEY showcases cutting-edge live gaming solutions at G2E Asia 2025

Macau

AGBrief Editorial

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May 20, 2025

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TCSJOHNHUXLEY showcases cutting-edge live gaming solutions at G2E Asia 2025

Global live gaming leader TCSJOHNHUXLEY successfully showcased its latest advancements and comprehensive product portfolio at G2E Asia 2025, which took place from May 7th to 9th.

The company’s booth at the Venetian Macao drew significant attention from attendees keen to experience their state-of-the-art solutions and renowned quality.

“The feedback from the market here has been fantastic,” said Rebecca Kingswell, Global Head of Operations and Managing Director APAC, TCSJOHNHUXLEY. “It was a pleasure to present both our newest innovations and our trusted product range at G2E Asia, underscoring our unwavering commitment to providing the Asian gaming market with the most advanced and reliable live gaming solutions.”

A key highlight was the revolutionary Velocity Auto Wheel, which generated considerable buzz for its cutting-edge automation and seamless compatibility with the Wheelmate console.

TCSJOHNHUXLEY-G2E-Asia-2025_3 — *_{Velocity Auto Wheel}*

TCSJOHNHUXLEY-G2E-Asia-2025, Velocity Auto Wheel — *_{Velocity Auto Wheel}*

Demonstrations underscored its potential to set a new industry standard for speed and efficiency, empowering operators to significantly increase table turnover and revenue through more games per hour. Attendees were impressed by its innovative brushless DC motors and gearless design, ensuring continuous, reliable operation without the need for bulky air compressors, and its compact design’s adaptability to various casino layouts.

Chipper-3-TCSJOHNHUXLEY-G2E ASIA 2025 — _{Chipper Champ 3}

Taking centre stage alongside was the Chipper Champ 3, the next generation of chip sorting efficiency. Its unique capability to handle clay chips, coupled with increased speed and accuracy, was a major draw. Operators recognised the potential of this advanced technology to significantly reduce handling time and streamline overall table operations.

Adding to the visual appeal was the company’s advanced display technologies. The versatile Ora Table Displays captured attention with their clarity, customisation options, and reliable delivery of crucial game information. A particular highlight was the launch and demonstration of the groundbreaking Ora Blackjack Vue Display Controller.

Seamlessly integrated with the Ora Luxe Winning Number Display, this innovative product utilises advanced camera technology for automatic card recognition, providing players with real time data such as dealer hand history, live dealer odds, historical stats, and the last four dealer Blackjacks. This innovation was recognised as a significant advancement in player engagement and Blackjack technology.

TCSJOHNHUXLEY also provided compelling demonstrations of its T-Connect casino management system, a vital tool already trusted by numerous casinos across Asia. The system’s ability to streamline operations, enhance security, and provide invaluable data insights resonated strongly with operators seeking to optimise their gaming floors.

The popular Blaze Gaming tables, particularly the Sic Bo variant, effectively showcased how dynamic LED surface technology can enhance the excitement of traditional games, creating a more engaging and visually appealing experience for players.

Beyond these innovations, TCSJOHNHUXLEY’s commitment to manufacturing excellence was evident through the showcase of its world-class core product range. From the precision of their Roulette wheels and the craftsmanship of their Gaming Tables to the reliability of their Dice Shakers, visitors could clearly see the superior quality that defines TCSJOHNHUXLEY products.

The successful participation at G2E Asia 2025 reinforces TCSJOHNHUXLEY’s position as a premier provider of live gaming solutions, dedicated to driving growth and enhancing player satisfaction for its partners across the region.

Managed AWS Outposts service provides comprehensive procurement, logistics, workload migration and ongoing management of AWS Outposts, coupled with unrivalled connectivity and seamless access to all AWS Direct Connect (DX) on-ramp locations. This service allows betting and gaming operators and suppliers to focus on value-added, core revenue-generating activities.

Managed Hybrid Network service facilitates seamless integration between on-premises infrastructures and AWS Regions, offering the most secure, resilient, hybrid cloud connectivity, bypassing the public internet via a private multiprotocol label switching (MPLS) network.

Continent 8 has extensive experience with AWS Outposts, having provided comprehensive support to operators and suppliers with the initial generation of rack platforms. Today, Continent 8 is responsible for over 90% of AWS Outposts deployments within the regulated betting and gaming industry.

Justin Cosnett, Chief Product Officer at Continent 8, stated, “Our strategic partnership with AWS, along with our deep experience with the first-generation AWS Outposts technology, enables us to provide the requisite expertise for delivering seamless AWS experiences. With the launch of the latest generation of AWS Outposts, we are well-positioned to manage the betting and gaming industry’s ‘business as usual’, day-to-day operations and IT infrastructure needs, allowing customers to swiftly benefit from the platform’s latency and performance enhancements for their most demanding gaming projects.”

As an AWS Solution Provider, Continent 8 also offers managed services, including Managed AWS Outposts and Managed Hybrid Networking, available via the AWS Marketplace. Continent 8 is a Gold sponsor of the AWS Community Day Malta on 30 May and will be running a session on ‘Future-ready cloud solutions: winning in regulated markets’. Contact [email protected] to arrange a meeting at the event.

“This new release will further upgrade the online poker experience with increased prize pots for players, in turn, maximising user activity for operators. Cash Drop is among the first fully customisable solutions of its kind to hit the market, highlighting our drive to provide operators with complete poker room flexibility.”

Daily Asia Gaming eBrief: Melco propelled to new heights on non-gaming boost

What you need to know

On the radar

AGB Intelligence

MACAU

Bullish outlook for Melco, playing to non-gaming

Corporate Spotlight

Bettorify bridges European operators to Asia’s gaming markets

Industry Updates

Table of Contents

Sega Sammy nears completion of acquisition of GAN Limited

Sega Sammy is now nearing the completion of its deal to acquire GAN Limited, with the company set to become a wholly-owned subsidiary.

House of Dancing Water and de-leveraging potential position Melco to outperform: MS

Investment bank Morgan Stanley is bullish on Melco Resorts & Entertainment and MGM China, emerging as top picks amid a ‘hard to predict’ Macau gaming market.

Table of Contents

Lawrence Ho’s Black Spade Capital invests in the real estate group IFCX

Black Spade Capital, the family office of Macau casino operator Melco Resorts & Entertainment’s chairman Lawrence Ho Yau-lung has invested in IFCX, an international real estate brokerage holding company based in Asia.

Table of Contents

Thailand Deputy Minister backs casino development amid concerns of “grey” economy

Thailand’s Deputy Finance Minister, Julapan Amornvivat, has strongly defended the government’s plan to create integrated entertainment complexes, addressing fears that this initiative might associate the nation with a “grey” economy.

Table of Contents

Hong Kong completes public hearing on legalizing basketball betting

The Hong Kong government has concluded a public consultation on the regulation of basketball betting, with authorities now analyzing public feedback to determine the next steps.

Table of Contents

Kangwon Land gains approval to triple betting limits on Blackjack, Hold’em tables

Kangwon Land, South Korea’s only casino accessible to local residents, has received government approval to significantly increase betting limits for mass gaming tables, marking another move in its broader strategy to enhance revenue and diversify table offerings.

TCSJOHNHUXLEY showcases cutting-edge live gaming solutions at G2E Asia 2025

Global live gaming leader TCSJOHNHUXLEY successfully showcased its latest advancements and comprehensive product portfolio at G2E Asia 2025, which took place from May 7th to 9th.

Table of Contents

EvenBet Gaming launches Cash Drop to enhance engagement & acquisition

EvenBet Gaming, a leading developer of online gaming software and solutions, has released its fully customisable promotional tool, Cash Drop, engineered to drive user acquisition and poker room activity.

Table of Contents

ENQUIRIES & SUBSCRIPTIONS

CONTACTS

FOLLOW AGB

What you need to know

On the radar

MACAU

Corporate Spotlight

Industry Updates

Table of Contents

Sega Sammy is now nearing the completion of its deal to acquire GAN Limited, with the company set to become a wholly-owned subsidiary.

Investment bank Morgan Stanley is bullish on Melco Resorts & Entertainment and MGM China, emerging as top picks amid a ‘hard to predict’ Macau gaming market.

Table of Contents

Black Spade Capital, the family office of Macau casino operator Melco Resorts & Entertainment’s chairman Lawrence Ho Yau-lung has invested in IFCX, an international real estate brokerage holding company based in Asia.

Table of Contents

Thailand’s Deputy Finance Minister, Julapan Amornvivat, has strongly defended the government’s plan to create integrated entertainment complexes, addressing fears that this initiative might associate the nation with a “grey” economy.

Table of Contents

The Hong Kong government has concluded a public consultation on the regulation of basketball betting, with authorities now analyzing public feedback to determine the next steps.

Table of Contents

Kangwon Land, South Korea’s only casino accessible to local residents, has received government approval to significantly increase betting limits for mass gaming tables, marking another move in its broader strategy to enhance revenue and diversify table offerings.

Global live gaming leader TCSJOHNHUXLEY successfully showcased its latest advancements and comprehensive product portfolio at G2E Asia 2025, which took place from May 7th to 9th.

Table of Contents

Continent 8 Technologies, a global leader in cloud hosting and cybersecurity for iGaming and online sports betting, has announced enhanced AWS support to streamline the deployment and management of next-generation AWS Outposts racks, ensuring secure, ultra-low-latency hybrid cloud infrastructures.

Continent 8 empowers customers to leverage these innovations with the following solutions:

Table of Contents

EvenBet Gaming, a leading developer of online gaming software and solutions, has released its fully customisable promotional tool, Cash Drop, engineered to drive user acquisition and poker room activity.

Table of Contents

ENQUIRIES & SUBSCRIPTIONS

CONTACTS