Zitro showcases CONCEPT cabinet line worldwide at G2E Las Vegas 2024

United States

AGBrief Editorial

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October 15, 2024

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Zitro showcases CONCEPT cabinet line worldwide at G2E Las Vegas 2024

Zitro, a leading company in the gaming industry, showcased its latest gaming innovations for land-based and digital casinos at the Global Gaming Expo (G2E) in Las Vegas, highlighted by the worldwide debut of its new CONCEPT cabinet line and expanded games portfolio, which is also fully compatible with the GLARE family of cabinets.

Zitro’s booth captivated attendees eager to experience the company’s latest innovations; the highly anticipated CONCEPT cabinet line includes Concept Prime, Concept Prime-J, and Concept Deluxe.

Zitro showcases new CONCEPT cabinet line worldwide at G2E Las Vegas 2024 — _{Zitro at G2E Las Vegas 2024}

“Our team’s focus over the past year has been to create a product lineup that appeals to a diverse player base and supports our entire cabinet lineup”, said Derik Mooberry, CEO of Zitro USA. “Attendees witnessed first-hand the portability of our game content, allowing operators to experience our games across both our cabinet lines, providing them maximum flexibility and protecting their investment.”

“The XXL deck is the largest in the industry, offering players much more space for enhanced comfort and convenience and providing ergonomic support for extended play sessions. Designed with both comfort and functionality in mind, these cabinets ensure players can enjoy longer gaming sessions without discomfort while operators benefit from easy accessibility. The CONCEPT line embodies the company’s campaign slogan: “BRIGHTER. BOLDER. BETTER.”

The spotlight also shone on Zitro’s new game releases across its CONCEPT and GLARE cabinet lineup. Among the standout titles were Legendary Sword, a multi-game debuting at G2E on the Concept Prime-J, and Triple Charm Journey, an oriental-themed multi-game displayed on the Allure Glare cabinet. Another eagerly anticipated multi-game was Wonder Dream on the Concept Prime cabinet.

Zitro, Concept Cabinet Line at G2E Las Vegas 2024 — _{Triple Charm Journey cabinet}

Zitro’s commitment to providing diverse gaming options was evident in its extensive game portfolio, which included new titles such as Lucky Vault, and Jerry’s Link on the Concept Deluxe cabinet, Pearl’s Paradise on the Altius Glare, and Cash Totems, FairylandQuest, featured on the Concept Prime cabinet. Other standout games include King Fu Frog on the Illusion Glare and Merging Pots, also on the Concept Prime, among many other titles.

Zitro at G2E Las Vegas 2024, Pearl's Paradise — _{Pearl’s Paradise cabinet}

Zitro at G2E Las Vegas 2024, Lucky Vault — _{Pearl’s Paradise cabinet}

Zitro Digital, the company’s online division, also showcased its expanding range of digital video bingo and video slot games, complemented by engaging player engagement tools. The launch of the new Fu Frog series, featuring 4 unique game titles, has been successful in land-based markets worldwide and has been ported by Zitro to digital distribution channels.

Derik Mooberry, CEO of Zitro USA, shared: “The U.S. has been a remarkable growth story for Zitro. We’ve tripled our casino footprint in less than two years, expanding to over 100 casinos. Our strategic focus on the tribal market has proven successful, and we’re now poised to make significant inroads into the commercial market.”

Derik added, “Our new, prominent booth location in Freemont Street reflects our growing presence in the U.S. market. We unveiled a range of groundbreaking products, including our new CONCEPT cabinet line, which offers exceptional player experiences.

Additionally, our product portfolio, featuring a great diversity of content and banking configurations, has made a strong impression on customers and industry peers. Our success in the U.S. is further proof of our dedication to delivering exceptional products and services, and we’re eager to celebrate this new chapter for Zitro.”

Zitro’s founder, Johnny Ortiz, commented, “We’re proud to have showcased our largest and most diverse product range ever at this year’s G2E. This achievement is a result of our continued commitment to innovation and the exceptional work of our growing teams at our tech campuses in Barcelona and Bangalore. We’re optimistic about the future and look forward to continued growth and success.”

Zitro’s participation in G2E Las Vegas 2024 has once again solidified its position as a leading innovator in the gaming industry, setting the stage for continued growth and success in the years to come.

Good morning. With new leadership come new challenges. And Macau is set to find out exactly what those will be when its new Chief Executive comes into office in December. Analysts, however, note that metrics are strong and growth should continue. Meanwhile, fines continue to be doled out in Australia, with Crown Melbourne facing a $1.34 million payment for allowing self-excluded individuals to gamble. And in the sunny Bahamas, Genting is facing a lawsuit for alleged fraud, to the tune of $600 million, which it deems ‘baseless’.

What you need to know

Macau’s new leadership brings regulatory uncertainty, but the gaming sector shows resilience with optimistic GGR projections.
Crown Melbourne fined $1.34 million for failing to enforce self-exclusion measures, allowing 242 self-excluded individuals to gamble.
Genting is being sued for $600 million by a stakeholder for alleged fraud relating to its operations in the Bahamas.

On the radar

Suntrust appoints IGT as contractor for the Westside City project.
Only 100 POGO hubs are being monitored: PAOCC.
Macau gaming tax reaches $8.31B in 9-month period.
Blackstone injected nearly $340M into Crown in 2023: report.
Suspicious Transaction Reports by Macau gaming operators down in 3Q24.
PAGCOR contractual workers not government employees: Supreme Court.

AGB Intelligence

MACAU

_{^{Macau’s gaming industry faces uncertainty under new leadership, but key metrics remain strong}}

The change in Macau’s top leadership, with its new Chief Executive set to assume office in December, is raising many questions about the possible impact on the gaming sector. While the city has pledged to diversify its economy away from gaming, analysts still note that metrics are strong, predicting continued growth both for this year and next, despite a relatively flat third quarter.

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But luxury spending saw an uptick, with jewelry and watch prices up by 5.57 percent quarterly and 16.34 percent yearly. Jewelry prices were up 16.34 percent yearly but only 5.57 percent quarterly, while watch prices rose 12.1 percent quarterly and nearly 13.3 percent yearly. This bodes well for luxury goods retailers worried about the downturn in China’s economy.

Macau hasn’t yet published the September statistics or tourism arrivals to flesh out the third quarter data but prices for outbound tourism remained subdued, rising just 2.54 percent quarterly and falling by 1.32 percent annually.

Macau Visitor Arrivals 2024 — _{Visitor Arrivals JAN-AUG 2024}

Fourth quarter data should display a spike in prices, aided by the Golden Week period as well as the 25^th anniversary of the establishment of Macau as a Special Administrative Region (in December), which is expected to bring China’s top leadership to the city.

Macau October Golden week 2024 as of 08 October 2024 — _{Macau October Golden Week visitor arrivals 2024}

However, previous major commemorations involving top political visits from mainland China have typically driven down gaming spend in higher tiers as high-rolling punters shy away from the increased security surrounding such events. Other non-gaming metrics should rise during the holiday.

In an 18-page decision promulgated in June, the SC First Division dismissed a petition filed by a group of PAGCOR workers whose contracts were not renewed. The case stemmed from a complaint of illegal dismissal, which the workers brought to the CSC Regional Office VI (CSCRO-VI) after their contracts were terminated.

The SC cited CSC-COA-DBM Joint Circular No. 1, which clearly states that COS and JO workers are not covered by Civil Service laws and regulations. Section 7.4 of the circular specifies that these workers do not receive the same benefits as regular government employees, such as leave credits, Personal Economic Relief Allowance (PERA), Representation and Transportation Allowance (RATA), or 13th-month pay.

“We reiterated that there is no employer-employee relationship between the government and job order workers, and that their services are not considered government service,” the SC noted. “For these reasons, job order employees are not covered by Civil Service law, rules, and regulations.”

The ruling clarified that the PAGCOR workers in question, employed as cooks, waiters, pantry aides, stewards, dishwashers, kitchen supervisors, and busboys, among other roles, had signed fixed-term contracts with the agency. Some had worked under these contracts for periods ranging from one to 17 years, with occasional renewals.

The workers argued that their repeated contract renewals and length of service effectively made them regular employees entitled to security of tenure, and they brought the matter to the CSCRO-VI. However, the CSCRO-VI dismissed their complaint, citing lack of jurisdiction, a decision that was upheld by both the CSC and the Court of Appeals.

The SC emphasized that, while PAGCOR holds the authority to hire its own workers, including those under contract of service or job order arrangements, this power should not be misused. The court reminded PAGCOR and similar agencies that COS and JO workers should not be mistreated or mismanaged, despite not enjoying the full benefits of regular government employees.

“We sternly remind PAGCOR and all similar agencies that while their authority to contract services is recognized under applicable civil service rules, such hiring authority should not be used to mistreat or otherwise mismanage contract of service or job order workers,” the court said.

The VGCCC found that Crown Melbourne breached its obligations under the Casino Control Act 1991 (Vic), which makes it illegal for a self-excluded individual to enter, stay, or gamble in the casino. VGCCC Chair Fran Thorn stressed the importance of casinos upholding self-exclusion protocols to protect those vulnerable to gambling-related harm.

Fran Thorn, VGCCC, Crown Melbourne — Fran Thorn, Chair of VGCCC

“It is an offense under the Casino Control Act for a casino to allow an excluded person, including those who have self-excluded, to enter or gamble,” said Thorn. “Self-exclusion is a key harm-prevention initiative, and gambling providers must take all necessary steps to enforce this. By failing to do so, Crown has exposed these individuals to the risk of further gambling harm.”

Thorn added that, in some cases, self-excluded patrons went to great lengths to bypass security measures and violate their exclusion terms.

The VGCCC uncovered these breaches as part of its continuous monitoring of Crown’s operations. The investigation revealed that the incidents were the result of systemic and control failures rather than a deliberate attempt by Crown to ignore its regulatory responsibilities.

Blackstone injected nearly $340M into Crown in 2023: report

To address these issues, the VGCCC has directed Crown to hire an independent expert to evaluate the effectiveness of its self-exclusion program. This expert will provide recommendations for improvements, which Crown will be required to implement.

Earlier this year, the VGCCC ordered Crown Melbourne to implement a transformation plan aimed at reforming its practices following the damning findings of the Finkelstein Royal Commission. The Commission acknowledged that Crown has made some efforts to strengthen its exclusion protocols, including enhancing its monitoring activities, physical security, technology use, and staff training.

However, despite these efforts, the VGCCC remains committed to ensuring Crown completes its reform agenda.

“Crown has taken steps to strengthen its controls and improve monitoring, but these breaches show that more work is needed,” Thorn added. “We will continue to oversee Crown’s progress in transforming its operations and ensuring it complies with all regulatory obligations.”

The shuttering of the operations and the pursuit of illegal operators has continued to top headlines in recent months, with the prominent case of ‘POGO mayor’ Alice Guo and the crackdown on POGO compounds in the country. On October 10^th, Philippine authorities also arrested Lyo Dong, a key figure allegedly behind illegal POGO and other operations for over a decade.

Clubs will also allow players to participate in all games and tournaments provided by the platform simultaneously. This potential for cross-game promotions will act as a supplementary player acquisition tool, resulting in better engagement for EvenBet’s partners, enhancing game opportunities for players.

The upgraded technology will be integrated directly into the Poker Clubs application, giving operators access to data on Club activity and In-Store purchases which can be utilized for player segmentation and personalization to deliver tailored offers to specific members.

Dmitry Starostenkov, CEO at EvenBet Gaming, said: “We strive to remain ahead of the curve when it comes to optimizing and diversifying our offering.”

Relax Gaming appoints Enrico Bradamante as Chief Growth Officer

Elsewhere

AGBrief Editorial

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October 14, 2024

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Relax Gaming appoints Enrico Bradamante as Chief Growth Officer

Relax Gaming, the renowned iGaming aggregator and supplier, has bolstered its leadership team with the appointment of Enrico Bradamante as Chief Growth Officer (CGO).

With over 12 years of industry experience, Bradamante’s appointment reflects Relax Gaming’s ambition to further enhance its growth strategy across global markets.

Bradamante’s impressive career has seen him serve as Managing Director at NetEnt and Chief Commercial Officer at Aristocrat Interactive (formerly Pariplay). He is also the Chairman and Founder of iGEN (iGaming Executives Network), further demonstrating his leadership within the industry.

In his new role at Relax, Enrico will work closely with both the commercial team and other departments to identify growth opportunities and drive innovation across the organization.

Based in Relax Gaming’s Malta office, Bradamante will be responsible for expanding the company’s footprint in key markets while ensuring it remains at the forefront of industry trends.

Commenting on the new appointment, Martin Stålros, CEO at Relax Gaming, said: “We are thrilled to welcome Enrico to the Relax Gaming executive team. His wealth of experience and deep understanding of the iGaming industry will be instrumental in further driving our growth strategy. Enrico’s expertise will help us continue to differentiate ourselves in an increasingly competitive market, and I look forward to working closely with him as we enter this exciting phase of expansion.”

Macau gaming faces regulatory uncertainty under new leadership: Bank of America

Viviana Chan

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October 14, 2024

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Macau gaming faces regulatory uncertainty under new leadership: Bank of America

Macau’s gaming industry is closely monitoring how the new leadership will influence policies affecting the sector, as Bank of America notes that “a key unknown for the sector remains the regulatory climate under a new Chief Executive.”

Macau’s new Chief Executive, Sam Hou Fai, was elected on Sunday, October 13th, and his term will begin in December, coinciding with the Macau SAR’s 25th anniversary celebrations.

Sam Hou Fai, Macau Chief Executive — Sam Hou Fai, Macau’s new Chief Executive

During the campaign period, Sam Hou Fai urged gaming operators to ensure the industry’s growth is maintained through “healthy, orderly, and sustainable” development. At the same time, Sam further explained that this form of development doesn’t mean shutting down or downsizing the industry.

In a recent investment memo, the brokerage highlights that Macau’s gaming sector has shown resilience, particularly with stronger-than-expected gross gaming revenue (GGR) from the October Golden Week. This positive performance underscores Macau’s potential to navigate challenges, despite weak consumer spending in mainland China. Additionally, the Chinese central government’s more coordinated economic policies have helped reduce broader macroeconomic risks.

Bank of America also pointed out that, while China’s consumption growth may take time to recover, investors expect Macau’s GGR to align with China’s GDP growth by 2025.

For gaming operators, this suggests that income returns may serve as a key differentiator. As a result, the firm projects that Sands China will resume dividend payouts in the second half of 2025, while the four dividend-paying operators are expected to see an average yield of around 3 percent. This yield could increase further as companies complete their deleveraging efforts.

GGR projections

Bank of America has revised its forecasts for 2024 and 2025 GGR based on recent trends. The firm raised its 2024 GGR estimate by 2 percent to MOP227 billion ($28.32 billion), reflecting a 24 percent increase compared to the previous year and amounting to 78 percent of pre-pandemic levels.

For 2025, the estimate was increased by 7 percent to MOP230 billion ($28.7 billion), indicating a 2 percent year-on-year growth. The brokerage notes that the projection reflects an underlying growth of 4-5 percent. However, this growth may be tempered by the ongoing effects of the crackdown on illegal currency exchange activities in early 2025.

In terms of EBITDA, the brokerage adjusted its estimates upwards by 2 percent for 2024 and by 10 percent for 2025.

Commenting on 3Q24 results, Bank of America noted that while GGR saw a 13 percent year-on-year increase, there was a slight 1 percent decline compared to the previous quarter, largely due to typical seasonal trends. For 3Q24 EBITDA, a 6 percent decline quarter-on-quarter is expected, attributed to increased promotional efforts across the industry.

Macau, cotai-strip, Gaming revenue, Macau GGR, gaming operators

Operator performance outlook

Among the gaming operators, Bank of America expects SJM Holdings to show the strongest performance rise, with a 20 percent growth in EBITDA in 3Q24 compared to the previous quarter, driven by the continued ramp-up of its Grand Lisboa Palace. In contrast, other operators are likely to see a decline in EBITDA.

Analysts are expecting drops of 19 percent for MGM China due to increased event costs, with Galaxy Entertainment to be down 10 percent due to seasonally lower construction EBITDA and potential market share loss in September, Melco falling by 6 percent amid its ongoing investment, and Sands by 3 percent as a result of renovation work.

The firm also cautioned that additional non-gaming event costs in the second half of the year could pose a risk to profitability.

SJM, Macau, Grand Lisboa Hotel, SJM Holdings, SJM resorts

3Q24 mass GGR remains flattish QoQ

In another investment memo, UBS anticipates a relatively stable performance for mass GGR in 3Q24, remaining flattish on a quarter-on-quarter basis. In contrast, VIP GGR is projected to decline by approximately 14 percent compared to the previous quarter. This decline in VIP revenue underscores ongoing challenges in that segment, which have persisted throughout the year.

For 3Q24, the Gaming Inspection and Coordination Bureau (DICJ) reported total gross gaming revenue of MOP55.6 billion ($6.94 billion), averaging around MOP604 million ($75.4 million) per day. This figure represents a 14 percent year-on-year increase; however, it reflects a slight decline of about 1 percent compared to the previous quarter.

This performance is weaker than the usual seasonal trends, largely attributed to one-off events, including the European football tournament that took place in June and July, as well as a delayed start to the school holidays in July.

On a positive note, the non-gaming sector is expected to experience a seasonal uptick, driven by an increase in visitor arrivals at teen rates compared to the previous quarter. This increase in foot traffic translates to a forecasted rise in sector non-gaming revenue of around 5 percent compared to the previous quarter.

The uplift in non-gaming activities suggests that while gaming revenue faces challenges, other areas are benefiting from enhanced visitor engagement and spending.

Despite the anticipated growth in non-gaming revenue, analysts from UBS expect that the sector’s luck-adjusted EBITDA will decline by approximately 3 percent compared to the previous quarter’s performance. This projection highlights the overall impact of the weaker gaming performance on the financial outlook for the sector.

Table of Contents

What you need to know

On the radar

MACAU

Corporate Spotlight

Industry Updates

Table of Contents

Higher hotel prices in the third quarter helped push up Macau’s Tourist Price Index by nearly 4.43 percent quarterly, boosted by the summer holiday.

Table of Contents

Contract of service (COS) and job order (JO) workers employed by the Philippine Amusement and Gaming Corporation (PAGCOR) are not considered government employees under the Civil Service Commission’s (CSC) jurisdiction, the country’s Supreme Court (SC) has ruled.

Table of Contents

Crown Melbourne has been hit with a AU$2 million ($1.34 million) fine by the Victorian Gambling and Casino Control Commission (VGCCC) for allowing 242 self-excluded individuals to gamble at its casino between October 2023 and May 2024.

Table of Contents

The Philippines’ efforts to eliminate Philippine Offshore Gaming Operators (POGOs) are proving successful, with only 100 POGO hubs being monitored.

Table of Contents

EvenBet Gaming, a leading developer of online gaming software and solutions, has announced a major update to its platform, with Clubs set to revolutionize the online poker experience for both operators and players.

Relax Gaming, the renowned iGaming aggregator and supplier, has bolstered its leadership team with the appointment of Enrico Bradamante as Chief Growth Officer (CGO).

Macau’s gaming industry is closely monitoring how the new leadership will influence policies affecting the sector, as Bank of America notes that “a key unknown for the sector remains the regulatory climate under a new Chief Executive.”

GGR projections

Operator performance outlook

3Q24 mass GGR remains flattish QoQ

Table of Contents

The number of Suspicious Transaction Reports (STRs) filed by gaming operators in Macau in the third quarter of the year fell to 860, the lowest quarter of the year so far.

Table of Contents

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