Profitability to determine survival of Macau’s satellite casinos: Expert

Viviana Chan

-

March 13, 2025

0

Profitability to determine survival of Macau’s satellite casinos: Expert

U Io Hung, president of the Macau Professional Association of Gaming Promoters, has stated that not all 11 satellite casinos are expected to remain operational after the transition period, which is set to conclude at the end of this year.

In an interview with AGB, U explained that satellite casinos with strong profitability, such as Landmark and Fortuna, have a better chance of remaining in the market. In contrast, casinos with weaker financial performance may face closure, as gaming concessionaires might choose to reclaim the gaming tables and relocate them to their own properties.

Despite the new government being in place for nearly three months, authorities have yet to discuss the future of satellite casinos. With less than 10 months remaining in the transition period, U Io Hung described the negotiation between gaming concessionaires and satellite casino operators as a “commercial decision.” The details of these deals remain largely unknown to the public until they are finalized.

U also pointed out that the outcomes of these negotiations will likely be performance-driven, as concessionaires are unlikely to invest additional resources into maintaining underperforming satellite casinos.

Currently, there are 11 satellite casinos operating under the new 10-year gaming concessions, which began in January 2023. Nine of these casinos are licensed under SJM Holdings, one under Galaxy Entertainment Group, and another under Melco Resorts & Entertainment.

U’s views were echoed by CLSA in a recent investment memo. The memo noted that the continuation of these casinos will depend more on their performance rather than any legal requirements.

Under current law, satellite casinos may continue to operate after 2025 if their operators transition into management companies.

A key change will be in the remuneration system: casino managers will be allowed to collect only a “management fee” without any revenue-sharing agreements with concessionaires. Once a satellite casino closes, it will not be allowed to reopen.

The 2022 amendments to the gaming law clarify that satellite casinos can remain in business post-2025 as long as they are operated by casino managers. These casinos are exempt from the requirement to be located on concessionaire-owned properties, making acquisitions of such premises by concessionaires unlikely.

CLSA also noted that while the specifics of the “management fee” remain unclear, it is likely to be tied to the satellite casinos’ performance in 2025, with potential adjustments for inflation. This approach could offer a balanced solution for both concessionaires and casino managers.

Employee placement

Macau has about 10,000 employees working in its 11 satellite casinos. Earlier this month, the Federation of Trade Unions (FAOM) mentioned that it had received inquiries from satellite casino employees regarding the future of their jobs. While no formal requests for assistance have been made, the Federation noted that, based on previous experience, gaming companies are likely to absorb and reallocate employees involved in gaming operations. For non-gaming staff, the Federation will assist in finding alternative employment.

According to local media, Choi Kam Fu, Director of the Federation’s Rights Committee, explained that whether satellite casinos continue to operate or shut down, licensed companies would likely provide better solutions for retaining employees.

He emphasized the need for effective job transition measures for non-licensed employees, ensuring their legal rights and proper termination procedures are followed.

The Human Resources Association also expressed concern about the lack of consensus between gaming companies and satellite casino operators regarding employee placement.

The association urged the government to take a more active role in addressing these issues.

Higher minimum wagers at Macau casinos contribute to heightened levels of debt

Choi Chin Man, President of the Human Resources Association, suggested that the government could facilitate meetings between both parties and ensure timely communication regarding employee rights, especially if satellite casinos close.

He also noted that the closure of satellite casinos would likely impact surrounding small and medium-sized businesses, further reinforcing the need for government assistance in employee transitions.

Speaking of her appointment, Langley noted that “MGM Resorts is the global leader across gaming, hospitality and live entertainment […] Joining their board as they continue to ideate and innovate on best-in-class experiences for multi-generational audiences is an exciting challenge I’m delighted to take on with my fellow board members and the incredible management team”.

Sumsub, together with other top industry experts, shared further insights during the panel discussion titled ‘Overcoming KYC Challenges in the Philippines’ at the ASEAN Gaming Summit. Moderated by Frank Schengel, eGaming Licensing Specialist at Manavia Limited, the discussion panel featured Chuan Wee Lye, Head of Business Development for Philippines at Sumsub, and Greffin Manibo, CEO of Glowlight Corporation (S5 Casino). Together, they explored the importance of implementing KYC (Know Your Customer) measures for iGaming operators in the evolving regulatory landscape.

Sumsub is also named as the winner of the Compliance Solution of the Year at the Asia Gaming Awards 2025, recognizing its continuous efforts and commitment to fostering safety and compliance across the sector.

Rising Regulatory Pressure on iGaming in Asia-Pacific (APAC)

The regulatory landscape for iGaming in the Philippines and broader APAC region is evolving rapidly. Governments are tightening AML (Anti-Money Laundering), KYC (Know Your Customer), and responsible gaming measures to combat the rise in fraud and money laundering. For instance, the Philippines’ Department of Justice has filed money laundering charges against individuals linked to Philippine Offshore Gaming Operators (POGOs) operations, highlighting the country’s commitment to combatting financial crime.

Sumsub’s 2024 APAC Identity Fraud Report found that iGaming fraud surged 103% globally, making it one of the top five most targeted industries in APAC. Compounding the issue, consumer trust in iGaming operators’ ability to prevent fraud and protect personal data was ranked second lowest across all industries, highlighting a significant gap between regulations and effective fraud prevention.

The Rising Threat of Fraud in iGaming

Fraudsters are leveraging AI-powered bots, deepfakes, and other advanced tactics to bypass security measures, create fake accounts and exploit bonus programs. The challenge is growing – 78.1% of industry professionals reported a surge in AI generated fakes over the past year. Yet, despite their efforts, iGaming operators are only preventing 54% of fraud attempts, with nearly 70% updating their fraud prevention systems just once a year or less.

With fraud as a persistent threat, operators struggle to maintain a secure and responsible gaming environment that prevents gambling related harm and ensures fair play. This requires robust measures to protect players, prevent problem gaming, and promote awareness of potential risks. Ultimately, operators must strike a delicate balance between enabling gaming and protecting vulnerable individuals.

Adopting a Multi-layered Approach for Fraud Prevention and Long-term Trust

To stay competitive, iGaming operators must go beyond basic compliance and adopt a comprehensive compliance strategy that ensures long-term trust and security. AI-powered KYC and identity verification are essential, particularly as deepfakes now account for 7% of all fraud attempts.

“The iGaming industry is at an inflection point – fraud is rising at an alarming rate, yet many operators continue to rely on manual checks and outdated systems, leaving them vulnerable.” says Penny Chai, Vice President of APAC at Sumsub. “Operators that prioritise AI-driven verification, real time fraud monitoring and a multi-layered compliance approach will not only mitigate risks but also build long term trust with regulators and players alike. A strategy that protects every step of the user lifecycle from sign up to withdrawal, will be key to combating advanced fraud. Those who fail to adapt quickly will struggle to remain competitive.”

Learn more about Sumsub’s iGaming fraud prevention and compliance solutions here.

The EL RG Certification was developed to promote the adoption of RG best practices across EL membership organizations. The EL RG standards are also designed to be complementary to the WLA RG Principles and Framework, allowing companies that meet the implementation of the EL RG Standards to also achieve Level 4 certification of the WLA Framework.

“IGT Lottery achieving responsible gaming recertification by EL for the sixth consecutive time, paired with the highest level of WLA certification, showcases our status as a true global leader in sustainability,” said Marco Tasso, IGT COO, Italian and International Sales and Operations. “‘Advancing Responsibility’ is vital to our success as a lottery company, and central to our sustainability strategy. We will continue to deliver innovation while operating with the highest level of integrity to protect our people, products and processes.”

IGT Lottery’s RG program is guided by international best practices. Consistently updated to meet evolving standards, the program operates on three macro guidelines: the promotion of a positive approach to gaming, the prevention of underage gambling, and support for players who need it.

The EL RG certification was issued following an in-depth examination of IGT Lottery’s tools, activities and processes that comprise its RG program in Italy. IGT Lottery was found to be fully in line with the international standards established by the EL, which require specific actions to protect players by the gaming operator, reaching a score of 100% for each of ten specified areas.

Brazil, the largest country in South America, has solidified its position as a high-potential iGaming market. With a population of over 218 million and a GDP of USD 2.33 trillion, the country is one of the fastest-growing economies globally. Digital adoption is also soaring, with over 86% of Brazilians actively using the internet and mobile penetration exceeding 97%.

Following the official launch of full iGaming regulation in January 2025, the market is expected to grow significantly, with projections estimating its value at USD 10 billion by 2029. To ensure sustainable industry development, the regulating body implemented strict compliance measures, player protection policies, and structured licensing frameworks.

The regulatory landscape in Brazil has undergone a substantial transformation, culminating in the enforcement of Law No. 14.790 in 2023, which formalised the market, and the establishment of the Secretariat of Prizes and Bets (SPA/MF) in 2024. From 1 January 2025, only licensed operators can legally provide online gaming and betting services.

Dario Leiman, Head of Business Development in Latin America at SOFTSWISS, commented on the early months following the regulatory changes: “The regulation of Brazil’s iGaming market has been one of the most significant industry milestones in recent years. While the new framework provides stability and legal clarity, operators must navigate a highly regulated environment with rigorous compliance requirements. The first months of 2025 have highlighted key challenges, such as taxation structures and licensing complexities. However, such strict regulation also provides opportunities for well-prepared businesses to establish a strong presence in this market.”

The iGaming in Brazil Market Research is a vital resource for businesses looking to enter or expand in the regulated market. The report provides an explicit breakdown of the following critical aspects:

Regulatory Compliance: Local ownership requirements, licensing processes and tax structures, including specific сosts and rates;
Security and Data Protection: Mandatory measures like ISO 27001 certification, “bet.br” domain registration, and storing data within Brazil;
Player Behaviour Trends: Preferences in online casino and sports betting, including game types and betting habits;
Localisation Strategies: The importance of Brazilian Portuguese interfaces, mobile-first gaming, and local payment solutions such as PIX;
Advertising and Payment Regulations: Compliance requirements, marketing restrictions, and the latest financial transaction rules.

As Brazil’s regulated iGaming market matures, operators must remain agile in adapting to legal developments and consumer expectations. With its extensive market knowledge and robust solutions, SOFTSWISS continues to help industry players achieve sustainable growth in the region.

Notably, Rubens Barrichello, Non-Executive Director for Latin America at SOFTSWISS, was actively involved in the research re-launch process. Leveraging his deep understanding of Brazilian consumer behaviour and his experience in fostering local partnerships, Rubens provided valuable insights into market localisation strategies and player engagement approaches, helping to ensure the report reflects the unique cultural and technological landscape of Brazil.

According to a filing with the Korea Stock Exchange on Wednesday, the total investment for the project is KRW575 billion ($395 million). Paradise Co., classified as a large corporation, will contribute a portion of its equity capital—KRW1.79 trillion ($1.23 billion), which represents 32.2 percent of the total investment.

The secured financing from Woori Bank is structured as a five-year facility loan, with a lump-sum repayment due at maturity. The loan carries an interest rate of the 91-day Certificate of Deposit (CD) rate plus 0.97 percent, resulting in a total rate of 3.81 percent based on the March 11th, 2025 CD rate.

The hotel development is part of Paradise Co.’s strategy to diversify its business portfolio and create synergies with its existing casino operations. The 18-story hotel, which will feature approximately 200 rooms and five basement levels, will cover 13,950 square meters.

Paradise Co. plans to draw down the loan in phases throughout the construction period. The company has delegated authority to its CEO for the execution of detailed financial arrangements, including loan schedules and collateral provisions.

Paradise Co. has described the hotel as a luxury property, with a focus on high-end services and amenities. The company has also noted that the project’s financial details and timeline may be subject to adjustments based on market conditions and internal progress.

As reported by AGB, the hotel project is set to begin in the first quarter of 2025, with the opening scheduled for 2028.

Maybank raises Genting Berhad rating amid share purchases and potential catalysts

Viviana Chan

-

March 12, 2025

0

Maybank raises Genting Berhad rating amid share purchases and potential catalysts

Maybank has upgraded Genting Berhad to a ‘Buy’ rating, citing recent share purchases by the Lim family and Genting’s CEO at valuations near all-time lows. This move signals confidence in the company’s prospects despite recent setbacks.

Analyst Samuel Yin Shao Yang also points out that the company’s share discount to its SOTP (sum-of-the-parts) valuation is at a record 66 percent, excluding the COVID-19 period. Maybank analysts noted that this current valuation effectively ‘offers Genting Singapore shares for free’ within their assessment.

In the investment memo released Wednesday, Samuel Yin Shao Yang highlighted that Genting’s share price had fallen sharply following its disappointing fourth-quarter 2024 results, primarily due to the weak performance of Resorts World Las Vegas (RWLV).

For full year 2024, Genting Berhad’s revenue increased by 2 percent to MYR27.72 billion ($6.26 billion), up from MYR27.12 billion ($6.12 billion) in 2023. Despite the revenue growth, net income decreased by 5 percent to MYR882.95 million ($119.2 million), down from MYR929.20 million ($209.6 million) in the previous year.

The company attributed RWLV’s struggles to unusually warm weather in Las Vegas, while some gamblers reportedly avoided the venue due to an ongoing investigation by the Nevada Gaming Control Board (NGCB) into the alleged acceptance of illegal bookies. As a result, Genting’s share price declined to levels similar to those seen during the COVID-19 pandemic, nearing a 10-year low.

In response, key stakeholders have shown confidence in the company’s value. The Lim family (Kien Huat Realty and Lim Keong Hui) purchased 7.3 million shares valued at MYR22.8 million ($5.1 million), while CEO Tan Kong Han acquired 100,000 shares for MYR300,000 ($67,680).

Genting Behard, Malaysia, energy investment

In the Wednesday investment memo, Yin Shao Yang notes that Genting’s valuation metrics are currently at or near historical lows. The company’s price-to-book value (P/BV) stands at 0.4 times, marking an all-time low.

Despite near-term risks, Maybank identified several factors that could drive a positive re-rating of Genting’s stock: the approval of TauRx’s Alzheimer’s drug and the outcome of the RWLV investigation.

TauRx, which is 20 percent owned by Genting, is awaiting a decision from the UK Medicines and Healthcare products Regulatory Agency (MHRA) regarding its Alzheimer’s drug. A positive outcome could significantly enhance Genting’s value, potentially lifting its stock to MYR5.09 ($1.12) per share.

Regarding the RWLV investigation, a favorable resolution to the NGCB investigation would likely improve RWLV’s operational performance.

Maybank also flagged the key risk posed by a Bahamian lawsuit, noting that a significant downside risk remains due to Genting Malaysia’s $600 million lawsuit with its Bahamian partner. The outcome of this case, expected by June 2025, could impact Genting’s financial stability.

Foreign firms set to dominate New Zealand’s online gambling market: Report

Nelson Moura

-

March 12, 2025

0

Foreign firms set to dominate New Zealand’s online gambling market: Report

Foreign companies are expected to take a leading role in New Zealand’s online gambling market as the government prepares to auction online casino licenses for the first time.

According to documents accessed by The New Zealand Herald, operators in New Zealand are concerned that these offshore firms will capture significant market share and divert funds away from community grants typically funded by gambling profits.

The new regulatory framework, set to commence in February 2026, will impose strict penalties, including fines of up to NZ$5 million ($2.8 million) for unlicensed operators.

Internal Affairs Minister Brooke van Velden indicated that she anticipates that most of the 15 licenses will be awarded to large offshore companies.

While she acknowledged the potential for local operators to compete, she emphasized the need for a fair marketplace. Domestic gambling entities, including SkyCity and TAB, have expressed strong opposition to the extensive licensing, arguing that it threatens their viability and undermines community funding.

Notably, the new regime will not require successful bidders to contribute to community grants, raising concerns that gambling profits will primarily benefit offshore shareholders rather than local initiatives. Critics, including TAB’s CEO, have warned that such an open market could harm established funding streams for sports and community organizations.

While the Cabinet has acknowledged that community funding may be jeopardized, van Velden maintained that the focus should be on creating a safe and regulated online gambling environment rather than relying on grants from operators.

This new approach marks a significant shift in New Zealand’s gambling landscape, which has been slow to regulate online activities compared to other developed nations.

Profitability to determine survival of Macau’s satellite casinos: Expert

U Io Hung, president of the Macau Professional Association of Gaming Promoters, has stated that not all 11 satellite casinos are expected to remain operational after the transition period, which is set to conclude at the end of this year.

Employee placement

Table of Contents

MGM Resorts appoints NBCUniversal Ent. & Studios Chairman Dame Donna Langley to Board

MGM Resorts has announced the appointment of Dame Donna Langley, Chairman of NBCUniversal Entertainment & Studios, to its Board of Directors.

Table of Contents

CNMI legal rep claims bidder for Imperial Pacific’s casino assets is “closely related to the debtor”: report

Table of Contents

Asia Gaming Awards 2025 shortlist announced

The Asia Gaming Awards is back yet again on March 18^th in Manila! With many exciting new shifts in the industry recently, this year celebrates both established excellence and the rising stars and disruptors that keep the industry fresh.

Table of Contents

Sumsub reports iGaming fraud surge – nearly half of firms lose 10% in revenue

Rising Regulatory Pressure on iGaming in Asia-Pacific (APAC)

The Rising Threat of Fraud in iGaming

Adopting a Multi-layered Approach for Fraud Prevention and Long-term Trust

Table of Contents

IGT strengthens responsible gaming with sixth European lottery recertification

International Game Technology (“IGT“) has announced that its Italian subsidiary, IGT Lottery, obtained the European Lotteries (“EL”) Responsible Gaming (“RG”) Certification for the sixth consecutive time.

Table of Contents

SOFTSWISS unveils 2025 iGaming market insights for Brazil

SOFTSWISS, a leading global provider of iGaming software, has released a new edition of the iGaming in Brazil Market Research, offering a detailed overview of the newly regulated Brazilian market in 2025.

Table of Contents

Paradise Co. secures $379M in financing for Seoul hotel construction

Paradise Co., a leading South Korean leading foreigner-only casino operator, has secured KRW550 billion ($379 million) in financing from Woori Bank to fund the construction of a new hotel in Seoul.

Foreign firms set to dominate New Zealand’s online gambling market: Report

Foreign companies are expected to take a leading role in New Zealand’s online gambling market as the government prepares to auction online casino licenses for the first time.

ENQUIRIES & SUBSCRIPTIONS

CONTACTS

FOLLOW AGB

U Io Hung, president of the Macau Professional Association of Gaming Promoters, has stated that not all 11 satellite casinos are expected to remain operational after the transition period, which is set to conclude at the end of this year.

Employee placement

Table of Contents

MGM Resorts has announced the appointment of Dame Donna Langley, Chairman of NBCUniversal Entertainment & Studios, to its Board of Directors.

Table of Contents

A legal representative of the Commonwealth of the Northern Mariana Islands (CNMI) says that Imperial Pacific International (IPI) facilitated the participation of the bidder for its casino assets, claiming the bidder is “closely related to the debtor”.

Table of Contents

The Asia Gaming Awards is back yet again on March 18th in Manila! With many exciting new shifts in the industry recently, this year celebrates both established excellence and the rising stars and disruptors that keep the industry fresh.

Table of Contents

Sumsub, a full-cycle verification platform, is a key sponsor at the ASEAN Gaming Summit 2025, bringing timely insights from its latest research on iGaming fraud.

Rising Regulatory Pressure on iGaming in Asia-Pacific (APAC)

The Rising Threat of Fraud in iGaming

Adopting a Multi-layered Approach for Fraud Prevention and Long-term Trust

Table of Contents

International Game Technology (“IGT“) has announced that its Italian subsidiary, IGT Lottery, obtained the European Lotteries (“EL”) Responsible Gaming (“RG”) Certification for the sixth consecutive time.

Table of Contents

SOFTSWISS, a leading global provider of iGaming software, has released a new edition of the iGaming in Brazil Market Research, offering a detailed overview of the newly regulated Brazilian market in 2025.

Table of Contents

Paradise Co., a leading South Korean leading foreigner-only casino operator, has secured KRW550 billion ($379 million) in financing from Woori Bank to fund the construction of a new hotel in Seoul.

Maybank has upgraded Genting Berhad to a ‘Buy’ rating, citing recent share purchases by the Lim family and Genting’s CEO at valuations near all-time lows. This move signals confidence in the company’s prospects despite recent setbacks.

Foreign companies are expected to take a leading role in New Zealand’s online gambling market as the government prepares to auction online casino licenses for the first time.

ENQUIRIES & SUBSCRIPTIONS

CONTACTS

The Asia Gaming Awards is back yet again on March 18^th in Manila! With many exciting new shifts in the industry recently, this year celebrates both established excellence and the rising stars and disruptors that keep the industry fresh.