Daily Asia Gaming eBrief: Australian government urged to ban gambling ads

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AGBrief Editorial

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August 12, 2024

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Daily Asia Gaming eBrief: Australian government urged to ban gambling ads

Good morning. Shutting down the leak. A group of over 60 prominent Australians, including former prime ministers, politicians, athletes, and community leaders, is calling on the Australian government to implement a complete ban on gambling advertisements within the next three years. This push comes amid growing concerns over the country’s per capita gambling losses, estimated at AUD25 billion ($16 billion) annually, one of the highest rates in the world. Meanwhile, gross gaming revenue in the Philippines experienced a notable 32.3 percent year-over-year increase in the second quarter of 2024, reaching PHP89.23 billion ($1.56 billion). This growth was driven by a substantial 525 percent surge in the eGames sector, which generated PHP30.85 billion ($538.66 million) in revenue.

What you need to know

A group of prominent Australians is calling on the government to implement a complete ban on gambling advertisements in the country.
Philippines GGR was up by 32.3 percent yearly in the second quarter, hitting PHP89.23 billion ($1.56 billion).

On the radar

2025 G2E Asia and Asian IR Expo set for May, PH return also announced.
DigiPlus net income jumps by almost 400% y-on-y in 2Q24.
Universal Entertainment posts sharp profit decline in 2Q of 2024.
RGB restructures investment in Philippine EGM leasing agreement.
Paradise Co sees mixed results amid VIP growth and rising costs.
Indonesian government targets payment platforms facilitating online gambling.

AGB Intelligence

AUSTRALIA

Australians call for gambling ads ban within 3 years

A coalition of over 60 prominent Australians, including former prime ministers, politicians, athletes, and community leaders, is urgently calling on the federal government to implement a complete ban on gambling advertisements within the next three years. This campaign comes amidst growing alarm over Australia’s staggering per capita gambling losses, estimated at a staggering AUD25 billion ($16 billion) annually – one of the highest rates globally. In an open letter to the Prime Minister and opposition leader, the signatories decry the pervasive presence of gambling ads across television, radio, and billboards, and their detrimental impact on vulnerable populations, especially children.

Corporate Spotlight

How 1xBet dominates the Asian market: conditions and approach

1xBet operates in several dozen countries in Asia, and the number of partners in this region is growing steadily, which indicates the effectiveness of the 1xPartners affiliate program. The brand offers favorable conditions and a modern set of tools for making money on the Internet.

Know Your Enemy: An Interactive Guide to Online Gaming Fraud

Sumsub, Online Gaming Fraud, verification platform

Online gaming fraud is on the rise in the iGaming industry. In Q1 2022, there was an 85% increase in fake account registrations compared to Q4 2021. While players are undoubtedly affected by gaming fraud, iGaming platforms also suffer due to damaged reputations, huge financial losses, and legal consequences.

Industry Updates

FBM Champion’s Night celebrated bingo operators’ hard work and success.
SJM Ronald Cheng Music Show: A Feast of Romantic Songs at Grand Lisboa Palace.

MEMBERSHIP | INTELLIGENCE | ASEAN | CAREERS

Packed to its maximum capacity, the venue buzzed with anticipation and a lively atmosphere. Ronald Cheng, known for his captivating voice and romantic melodies, delighted the audience with a performance of classic hits like “My Only One” and “If People Forget Love” at the gorgeous Grand Pavilion.

The venue echoed with the harmonious voice of fans singing along to their favourite tunes, immersing themselves in the enchanting world of “My Only One” music.

Universal Entertainment posts sharp profit decline in 2Q24

Nelson Moura

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August 12, 2024

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Universal Entertainment posts sharp profit decline in 2Q24

Universal Entertainment Corporation has reported a significant decline in its financial performance for the second quarter of 2024, with both sales and profits falling sharply compared to the previous year.

The company attributes the downturn to its Amusement Equipments Business and Integrated Resort Business challenges, particularly at its flagship Okada Manila property.

Okada Manila, Universal Entertainment, Philippines

Net sales for the quarter stood at JPY62.9 billion ($429.0 million), representing a 20.7 percent decrease year-on-year.

Operating profit saw a sharp drop of 69.6 percent, reaching JPY3.26 billion ($22.2 million), while ordinary profit plummeted by 80.4 percent to JPY5.57 billion ($38.0 million). The company’s net income attributable to owners of the parent also fell dramatically by 97.5 percent, amounting to just JPY525 million ($3.6 million).

In the Amusement Equipments Business, sales declined by 32.6 percent, totaling JPY20.76 billion ($141.6 million), with operating profit falling by 51.1 percent to JPY3.76 billion ($25.7 million). Despite the popularity of smart Pachislot machines, the performance of the Pachinko sector was notably weak.

The Integrated Resort Business also faced challenges, with net sales dropping by 13.1 percent to JPY41.68 billion ($284.3 million) and operating profit decreasing by 55.1 percent to JPY3.28 billion ($22.4 million).

The decline was primarily driven by a slowdown in the junket business and a reduction in VIP guest numbers at Okada Manila. Even though the mass market and gaming machine sectors performed steadily, they did not offset the overall decline in results.

The company also faced operational difficulties in its other business segments, with a 53.0 percent decrease in net sales to JPY202 million ($1.4 million) and a 10.0 percent drop in operating profit to JPY169 million ($1.2 million).

Universal Entertainment stated it is now focusing on enhancing its product offerings in the Amusement Equipments Business and intensifying its marketing efforts at Okada Manila.

The group has convened an extraordinary general shareholders’ meeting in September 2024 in which a vote will be held to decide if the group will dismiss former CEO, Jun Fujimoto, from its Board.

The decision comes after a Tokyo High Court ruling in August 2019 that found Fujimoto, who previously served as the company’s President and CEO, had breached his fiduciary duty by authorizing the transfer of nearly $43.5 million out of Universal Entertainment without proper justification and without adhering to internal decision-making procedures.

Revenues jumped 295 percent from the previous year’s level, reaching PHP18.9 billion ($330.3 million), driven by higher user traffic and the introduction of new game offerings. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) also surged 351 percent year-on-year to PHP3.4 billion ($59.4 million).

For the first half of 2024, DigiPlus registered a net income of PHP5.2 billion ($90.8 million), a staggering 377 percent increase from PHP1.1 billion ($19.2 million) in the same period a year ago.

Revenues jumped 263 percent to PHP32.5 billion ($567.7 million), while EBITDA reached PHP5.5 billion ($96.1 million), a 336 percent jump from the previous year.

“The first semester was encouraging for DigiPlus […] By optimizing user engagement through personalized experiences and diversifying our content offerings, we believe we are poised to capture the strong growth of the digital entertainment industry”, said DigiPlus Chairman Eusebio Tanco.

In the first half of 2024, the company paid PHP15.1 billion ($263.7 million) in taxes and fees to the national government and provided jobs to over 3,300 employees across the Philippines.

The group also stated recently its operations will remain unaffected by the announced ban on offshore online gaming operators in the country.

However, the company’s efforts to grow its VIP business have resulted in higher compensation costs. The company’s financial results for the second quarter of 2024 revealed a 50.5percent year-on-year decrease in net profit for controlling interests, amounting to KRW14.5 billion ($10.6 million), with a 43.9 percent drop compared to the previous quarter.

Despite this, casino sales across its Seoul, Jeju, and Busan properties rose by 9.5 percent sequentially, reaching KRW112.0 billion ($82 million), though this marked a 16.7 percent decline year-on-year.

At Paradise City in Incheon, an integrated resort and joint venture with Sega Sammy Holdings (55 percent owned by Paradise), total sales increased by 20.1 percent year-on-year to KRW131.4 billion ($96.3 million).

This growth was driven by a 24.7 percent rise in casino sales to KRW102.5 billion ($75.1 million). Despite the increased sales, the property’s EBITDA dropped by 11.5 percent to KRW25.1 billion ($18.4 million), and net profit fell by 59.3 percent to KRW6.25 billion ($4.58 million).

Paradise Co reported continued strong performance in Japan and mass segments, with drop amounts from Japan VIPs up 31.9 percent compared to pre-COVID levels and mass drop up 52.5 percent.

In May 2024, the company recorded its highest-ever monthly soft drop, which refers to the amount of cash exchanged for chips by customers at the table. Group-wide, casino sales were 12.8 percent higher than in the second quarter of 2019, although VIP business has yet to fully recover, standing at 78.2 percent of pre-pandemic levels.

Government urged to crack down on gambling advertising in Australia

Frank Schuengel

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August 12, 2024

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A group of prominent Australians is calling on the government to implement a complete ban on gambling advertisements in the country.

Australia is known for having some of the highest per capita gambling losses in the world. With a population of just 27 million, the land down under sees annual gambling losses estimated at AUD25 billion ($16 billion). Gambling ads are pervasive across television, radio, and billboards, while slot machines, commonly known as “pokies” in the country, are a common feature in many pubs, further encouraging spending.

In an open letter addressed to Prime Minister Anthony Albanese and opposition leader Peter Dutton, more than 60 notable Australians urged a total ban on gambling ads within three years, echoing recommendations from a 2023 report on gambling harm. The letter was signed by figures from politics, sports, unions, and religious communities.

“Gambling advertising in Australia is out of control,” the letter stated, highlighting that one million gambling ads were aired on free-to-air television and radio within a single year. John Howard, a former prime minister and one of the signatories, expressed his concern, stating that gambling losses cause “enormous harm” across the country.

Government studies estimate Australian gambling losses at AUD25 billion annually ($16 billion), a global record on a per capita basis. Even during the COVID 19 pandemic, when many gambling venues were closed, losses still exceeded AUD24 billion ($15.7 billion) in the 2020-2021 financial year.

Martin Thomas, CEO of the Alliance for Gambling Reform, stressed the need for a comprehensive ban to protect children from gambling companies’ influence. He warned that any lesser measures, like capping ads or restricting them only on social media, would favor special interests and fail to protect Australians from the dangers of gambling.

Thomas also pointed to the broader consequences of gambling, including financial ruin, mental health issues, and family violence. The cost of inaction, he argued, would be severe.

The letter was signed by more than 60 prominent Australians including former prime minister Malcolm Turnbull, Lucy Turnbull, former NSW premier Dominic Perrottet, and former Victorian premiers Jeff Kennett and Steve Bracks.

Other signatories include former Australian of the Year and family violence prevention advocate Rosie Batty, former AFL champion Easton Wood, former Socceroo, broadcaster, social justice and human rights campaigner, Craig Foster and former champion skateboarder and founder of Globe International, Stephen Hill.

RGBL, Pinnacles, and THSA will continue to share the investment cost, joint expenses, and rental revenues according to their agreed proportions: 50 percent for RGBL, 30 percent for Pinnacles, and 20 percent for THSA. In the event of disputes, the agreement stipulates that any unresolved issues will be settled in the courts of Makati City, Philippines.

RGBI has confirmed that there are no additional liabilities or guarantees to be assumed by the company as part of this project.

The Board of Directors believes that this partnership will bring strategic benefits to all parties involved, leveraging RGBL’s strong operational presence and retail network in the Philippines.

The Board also stated that the project is not expected to significantly impact RGBI’s financials, as it was funded entirely through internally generated funds. No shareholders’ approval is required for this project.

The FBM Champion’s Night marked the anniversary of the brand’s first link promotion, highlighting the achievements and growth within FBM’s bingo community. The evening brought moments of shared joy, recognizing the outstanding accomplishments of bingo operators attending during the Cash Panalo bingo promotion.

Pepe Costa, FBM’s Country Manager for the Philippines, opened the night with a welcoming speech focusing on FBM Foundation’s mission. The FBM representative highlighted the intervention of the FBM’s Group solidarity project, and the Outstanding Contribution in CSR Award obtained during the Asia Gaming Awards. Pepe Costa encouraged operators to pledge their donations, in the sequence of a natural disaster in the Philippines, furthering the Foundation’s mission to support various charitable initiatives.

FBM Champions Night, Philippines — Pepe Costa, FBM’s Country Manager for the Philippines, made the opening speech at FBM Champion’s Night.

Prizes and artistic shows created a memorable evening for the attendees

Hosted by the dynamic duo Papa Jackson and Giselle Sanchez, the FBM Champion’s Night proceeded to a moment of celebration which kept the audience entertained and engaged. The event highlighted the achievements of bingo hall sites as several operators received exclusive FBM plaques, as a distinction for their exceptional contributions and dedication. The night also featured a thrilling raffle draw, where attendees had the chance to win exciting cash prizes, Apple Watches, and iPads, adding an element of suspense and joy to the event.

FBM Champion's Night, bingo, Philippines — FBM Champion’s Night celebrated the outstanding contribution of bingo operators during the Cash Panalo bingo promotion

The festive atmosphere continued with spectacular performances that elevated the night’s excitement. Giselle Sanchez surprised the audience with a musical performance, showcasing her incredible talent and adding a touch of glamour to the event. Renowned singer and songwriter Bugoy Drilon also took the stage with his soulful voice that captivated the audience, creating a memorable experience for all the attendees.

The FBM Champion’s Night was not merely a celebration of past successes. It was a powerful launchpad for future endeavors. By highlighting the outstanding efforts of bingo operators, FBM celebrated, once again, the success of the Filipino bingo community. This event highlighted FBM’s commitment to excellence and innovation, driving positive change in the industry and the communities served by the casino gaming company.

Daily Asia Gaming eBrief: Australian government urged to ban gambling ads

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2025 G2E Asia and Asian IR Expo set for May, Philippines return also announced

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Table of Contents

SJM Ronald Cheng Music Show: A Feast of Romantic Songs for Fans at Grand Lisboa Palace

SJM Resorts, S.A. presented the “SJM Ronald Cheng Music Show” at the Grand Pavilion of Grand Lisboa Palace Resort Macau on 10 August.

Universal Entertainment posts sharp profit decline in 2Q24

Universal Entertainment Corporation has reported a significant decline in its financial performance for the second quarter of 2024, with both sales and profits falling sharply compared to the previous year.

Table of Contents

DigiPlus net income jumps by almost 400% YoY in 2Q24

Digital entertainment group DigiPlus Interactive Corp. (DigiPlus) has reported a net income of PHP3.2 billion ($55.9 million) in the second quarter of 2024, a considerable 389 percent increase from the same period a year ago.

Table of Contents

Paradise Co sees mixed results amid VIP growth and rising costs

Paradise Co, a foreigner-only casino operator in Korea, continues to show strong performance, particularly in its Japan VIP and mass gaming segments.

Government urged to crack down on gambling advertising in Australia

A group of prominent Australians is calling on the government to implement a complete ban on gambling advertisements in the country.

Table of Contents

Indonesian government targets payment platforms facilitating online gambling

Indonesia will soon sanction digital payment platforms that facilitate online gambling transactions, as announced by the government.

RGB restructures investment in Philippine EGM leasing agreement

RGB International Bhd (RGBI) has amended an agreement involving one of its subsidiaries and the leasing of 432 electronic gaming machines in the Philippines.

Table of Contents

FBM Champion’s Night celebrated bingo operators’ hard work and success

FBM organized a Champion’s Night at the prestigious hotel Marco Polo Ortigas on the past July 30^th. The initiative gathered dozens of bingo operators to celebrate its successful performance during the Cash Panalo promotion held from May to June.

Prizes and artistic shows created a memorable evening for the attendees

Table of Contents

ENQUIRIES & SUBSCRIPTIONS

CONTACTS

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What you need to know

On the radar

AUSTRALIA

Corporate Spotlight

Industry Updates

Table of Contents

The 2025 editions of the Global Gaming Expo (G2E) Asia and Asian IR Expo are set to take place in Macau from May 7th to 9th, at The Venetian Macao.

Table of Contents

SJM Resorts, S.A. presented the “SJM Ronald Cheng Music Show” at the Grand Pavilion of Grand Lisboa Palace Resort Macau on 10 August.

Universal Entertainment Corporation has reported a significant decline in its financial performance for the second quarter of 2024, with both sales and profits falling sharply compared to the previous year.

Table of Contents

Digital entertainment group DigiPlus Interactive Corp. (DigiPlus) has reported a net income of PHP3.2 billion ($55.9 million) in the second quarter of 2024, a considerable 389 percent increase from the same period a year ago.

Table of Contents

Paradise Co, a foreigner-only casino operator in Korea, continues to show strong performance, particularly in its Japan VIP and mass gaming segments.

A group of prominent Australians is calling on the government to implement a complete ban on gambling advertisements in the country.

Table of Contents

Indonesia will soon sanction digital payment platforms that facilitate online gambling transactions, as announced by the government.

RGB International Bhd (RGBI) has amended an agreement involving one of its subsidiaries and the leasing of 432 electronic gaming machines in the Philippines.

Table of Contents

FBM organized a Champion’s Night at the prestigious hotel Marco Polo Ortigas on the past July 30th. The initiative gathered dozens of bingo operators to celebrate its successful performance during the Cash Panalo promotion held from May to June.

Prizes and artistic shows created a memorable evening for the attendees

Table of Contents

ENQUIRIES & SUBSCRIPTIONS

CONTACTS

FBM organized a Champion’s Night at the prestigious hotel Marco Polo Ortigas on the past July 30^th. The initiative gathered dozens of bingo operators to celebrate its successful performance during the Cash Panalo promotion held from May to June.