South Korean integrated resort operator Shin Hwa World has informed shareholders and potential investors that it is expecting to see a decrease in its net loss for 1H24 of between 20 percent and 35 percent, compared to the same period in 2023.
According to a Thursday filing with the Hong Kong Stock Exchange, the operator notes that the decrease in loss is mainly attributable to an increase in revenue from its gaming business and property development segments.
It also attributes the better results to a decrease in finance costs and in amortization and depreciation.
However, the group notes that it is still ‘in the course of assessing the impairment loss on intangible assets, if any,’ but that this has been factored into its loss reduction estimates.
The group is expected to publish its interim results in late August.
Shin Hwa recently underwent a capital reorganization and launched a new rights issue worth some $258.6 million ($33.1million) – with the funds to be used to enhance its core business and support growth.
Shin Hwa World is the developer behind Jeju Shinhwa World, a complex featuring a foreigner-only casino located in Jeju, South Korea.
Morgan Stanley analysts forecast Macau’s August 2024 Gross Gaming Revenue (GGR) will reach MOP18.8 billion ($2.35 billion), a 1 percent increase month-over-month, lower than the normal seasonal uptick of 3 percent, but a 9 percent yearly jump.
For the FY24, the investment bank expects GGR to reach MOP224 billion ($28 billion), or MOP612 million ($76.5 million) per day, which would represent 77 percent of the 2019 pre-pandemic level, a projection 3 percent below market consensus.
According to the recent Morgan Stanley report, Macau’s July 2024 GGR came in at MOP18.6 billion ($2.33 billion), or MOP600 million ($75 million) per day. This represents a 5 percent increase monthly, which is below the normal seasonal uptick of 8 percent.
However, it marks a 12 percent jump yearly, though this is lower than the 16 percent year-on-year growth seen in June. The July GGR figure represents 76 percent of the 2019 level, slightly below the 74 percent achieved in June.
Morgan Stanley notes that the July GGR was 2 percent below their own estimate, as well as market consensus, which was MOP18.9-19 billion ($2.36-2.38 billion).
The investment bank suggests that the weaker-than-expected performance in the last week of July, with the daily average run rate dropping below MOP600 million ($75 million), may have been influenced by numerous factors.
‘We think July GGR could have been dragged by weaker visitation and China macros, Europe Cup impact in the first half of July, and tighter controls on money exchange’, the report stated.
The dispatch also underscores the continued recovery of Macau’s gaming industry, though the pace of growth appears to be moderating compared to earlier stages of the post-pandemic rebound.
Sports betting and gaming group Entain‘s results improved in the first half of the year but ongoing investments and regulatory changes are still impacting the group’s bottom line.
For the first half of 2024, Entain’s total Group Net Gaming Revenue (NGR), including its 50 percent share of BetMGM, rose by 6 percent year-on-year and 8 percent on a constant currency basis.
Online NGR, excluding the US, increased by 9 percent year-on-year, with a 1 percent increase on a proforma basis.
Group EBITDA reached £524 million ($660.24 million), marking a 5 percent increase compared to the previous year.
The group reported a net loss after tax of £47 million ($59.22 million), reflecting ongoing investments and regulatory impacts, but a considerable reduction from the £502.5 million ($638.4 million) in net losses in the same period of last year.
Operationally, Entain Online NGR increased by 5 percent year-on-year, supported by strong performances in Brazil and other international markets.
The Project Romer efficiency initiative has increased the net savings target to £100 million ($126 million) by 2026, up from the previous £70 million ($88.2 million). BetMGM continued its positive momentum, delivering sequential quarterly revenue growth and stabilizing market share.
In specific segments, UK and Ireland NGR declined by 6 percent, reflecting regulatory challenges but showing signs of recovery with improving player key performance indicators (KPIs).
International markets saw a 10 percent increase in NGR, with particularly strong performances in Brazil and Australia. The Central and Eastern Europe (CEE) region experienced a surge in NGR by 126 percent, driven by strong results in Croatia and other markets.
Looking ahead, Entain has upgraded its FY24 guidance, expecting Group EBITDA to be in the range of £1 billion ($1.3 billion). This positive outlook is underpinned by a stronger than expected 2Q24 performance and revised regulatory implementation timing in Brazil and the Netherlands.
The group commented it would have a proactive approach to addressing regulatory challenges, including plans to simplify business operations and achieve substantial savings.
“Entain’s H1 results are clear evidence that our hard work improving the Group’s operational performance is bearing fruit. Whilst there is more work to do, we are pleased with the progress so far and look forward to building further on these solid foundations in H2 and beyond”, Stella David, Interim CEO, commented.
Sega Sammy has announced strong performance in its gaming business during the second quarter of this year, driven by robust sales of casino machines and improved operations by its affiliate, Paradise SegaSammy.
The group has a venture with South Korean foreigner-only casino operator Paradise Co. for the operation of the Paradise City casino resort in Incheon, near South Korea’s main airport.
For the second quarter of 2024, Paradise SegaSammy reported strong casino sales, primarily driven by Japanese VIP customers.
Hotel sales at the affiliate also performed well, maintaining high room rates and occupancy by catering to the demand for extended stays in South Korea.
Sega Sammy forecasts that Paradise SegaSammy will continue to attract a growing number of customers through enhanced marketing efforts, further contributing to profit in equity-method earnings.
In the United States, sales of the “Railroad Riches” gaming machine, compatible with the new Genesis Atmos video slot machine cabinet, were said have been particularly strong, contributing significantly to the company’s results.
Looking ahead, Sega Sammy anticipates continued growth in gaming machine sales, expecting an expansion in unit sales across North America and Asia. Paradise SegaSammy is also projected to sustain its profitability, contributing positively to Sega Sammy’s equity-method earnings.
This move aims to enhance the corporate value of Phoenix Resort by leveraging Fortress’s extensive experience in the hotel and resort sector. The transfer resulted in an extraordinary income gain of JPY8.4 billion ($57.4 million) for the period under analysis.
Additionally, Sega Sammy disclosed its acquisition of Stakelogic B.V., announced on July 26th, 2024.
The acquisition, valued at €130 million ($142.1 million), positions Sega Sammy to expand into the growing North American online gaming market.
The integration of Stakelogic’s gaming content with Sega Sammy’s existing B2B platform from GAN, acquired in November 2023, is expected to create substantial synergies and accelerate business growth.
Financial highlights for the second quarter of this year include consolidated sales of JPY104.7 billion ($715.8 million) and an operating income of JPY19.3 billion ($131.9 million).
The company reported an extraordinary income of JNY8.8 billion ($60.2 million), primarily due to the Phoenix Resort transaction, and a profit attributable to owners of JPY24.5 billion ($167.4 million).
Sega Sammy’s Entertainment Contents segment, which includes consumer games, animation, amusement machines, and toys, showed a strong performance with sales of JPY72.5 billion ($495.7 million) and an operating income of JPY11.8 billion ($80.6 million).
The company also noted a positive impact from foreign exchange gains, contributing to the overall strong performance.
Looking ahead, Sega Sammy anticipates a steady launch of mainstay titles in its entertainment business from the third quarter onwards, including the highly anticipated “Hokuto no Ken 10” in its Pachislot and Pachinko Machines segment.
The company’s balance sheet remains solid, with a slight decrease in cash and deposits to JPY195.1 billion ($1.33 billion), primarily due to increased inventories related to upcoming title releases.
Good morning. Always thinking ahead. That’s been Singapore’s viewpoint in regards to not only ensuring FATF compliance, but also predicting where the gaming industry will find itself in the future. New proposed amendments to the gaming framework focus on oversight and player protection, but also streamline procedures for manufacturers and operators, while introducing the possibility for sectoral expansion. Meanwhile, Wynn Resorts is highly focused on the UAE, with construction on Wynn Al Marjan Island progressing smoothly and a positive view on ROI.
Singapore recently presented proposed amendments to the city-state’s Casino Control Bill, aiming to future-proof the industry by adding some interesting components which could allow the expansion of the sector in the coming years. Focusing on operator responsibility, increased oversight and player protection, the new changes include patron data sharing amongst operators, increased offenses for different types of play and even allowing virtual instruments to serve as betting chips.
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.
B2B gaming supplier Push Gaming returns to one of its iconic game series with Razor Ways, featuring a reimagined aesthetic and expanding reels among an array of new gameplay elements.
Using the solid foundation of the smash hit Razor Returns, this latest iteration provides a unique take on the much-loved design and mechanics for fans eager to sample more Razor.
With up to 46,656 ways to win, Razor Ways features not only expanding reels but wilds too while converter symbols boost win potential every spin.
Gameplay is not the only area to enjoy a makeover, Razor Ways reinterprets the signature design of the Razor series on a brand-new reel leveraging familiarity for longtime fans while delivering fresh thrills for new players.
Anastasiia Mysan, Game Producer at Push Gaming, said: “We wanted to switch things up in this release – Razor Ways pays in ways and includes expanding reels. This also allowed us to introduce exciting new elements and spruce up the design. We’ve dived deeper into the ocean by introducing dwellers from the depths and depicting the very bottom of the underwater world.”
SOFTSWISS, a tech provider of innovative iGaming solutions, is extending its ongoing charity campaign to support flood-affected regions in Brazil.
In May, the company provided emergency aid and launched an information campaign listing approved charities endorsed by Rubens Barrichello, SOFTSWISS Non-Executive Director in Latin America. Now, the company is focusing on a long-term project to supply clean water equipment to the region.
Although water levels have decreased in the affected region, humanitarian aid remains critical due to significant challenges in accessing cleaning and hygiene materials and ensuring water quality. Recent WASH (Water, Sanitation, and Hygiene) assessments reveal poor water quality in many areas.
SOFTSWISS has committed to a long-term project aimed at sustained support by installing water purification equipment in schools in partnership with PW Tech. Initial efforts have focused on two schools: Rui Barbosa Municipal Elementary School and Machado de Assis Municipal Elementary School.
Industrial-scale cyberfraud operations are evolving and converging with the gaming industry across Southeast Asia, raising alarms among officials and law enforcement, alleges the United Nations Office on Drugs and Crime (UNODC).
In a recent meeting held by the UNODC in Bangkok, the organization claimed that transnational organized crime groups are heavily involved in sophisticated underground banking, money laundering, and illegal online gambling operations that have proliferated throughout the region.
Masood Karimipour, Representative for Southeast Asia and the Pacific, UNODC
“Organized crime groups are converging where they see vulnerabilities, and empowering the region’s investigators and analysts is central to UNODC’s strategy to disrupt these bad actors moving forward”, said Masood Karimipour, UNODC Regional Representative for Southeast Asia and the Pacific.
Hundreds of so-called ‘scam centers’ have been identified by authorities across Southeast Asia, where thousands of people have been trafficked into the lucrative illicit industry. Many more have lost billions to sophisticated fraud schemes orchestrated by a growing number of criminal groups who have made the region their base of operations.
In the Philippines alone, more than 400 of these criminal enterprises are estimated to be in operation, with many Philippines offshore online gambling operators (POGOs) found serving as fronts for transnational organized crime groups. This has led to a recent ban of the sector (will details still emerging on the scope) under Presidential order.
Similar measures have been taken elsewhere in the region, including in Cambodia, Indonesia, and Thailand, where dismantling cyber-enabled fraud and illegal online casino operations has been declared a national priority.
However, as law enforcement and regulators step up their efforts, organized crime continues to diversify operations into more remote parts of the region, such as autonomous territories controlled by non-state armed groups and other criminal hubs.
“Cyber-enabled fraud perpetrated by powerful transnational criminal networks has evolved into a thriving multi-billion-dollar illicit industry that now exceeds the GDP of several countries in Southeast Asia combined”, said John Wojcik, UNODC Regional Analyst.
The meeting of regional investigators and analysts has led to the formation of an informal network to expand cooperation and share operational outcomes and intelligence.
UNODC is also coordinating with regional authorities to intensify their efforts, including the establishment of an emergency response network.
International Game Technology PLC (IGT) announced that Nick Khin has been appointed as IGT President for Global Gaming.
In his new role, Khin will be responsible for managing IGT’s Global Gaming business unit, which encompasses studios, technology, sales, games and hardware, manufacturing and services, and systems. Khin will report directly to IGT CEO Vince Sadusky and will be based in Las Vegas.
“Nick is the obvious choice to lead IGT Global Gaming. Under his leadership, IGT is consistently releasing top games and strengthening its performance in every game category”, said Sadusky. “Nick’s knowledge, leadership and passion have earned him the respect of colleagues throughout our industry.”
Khin first joined IGT in 2013, where he led the company’s corporate strategy and mergers and acquisitions functions. Prior to IGT, Khin gained over 23 years of industry experience, including senior executive roles based in Las Vegas, London, and Sydney.
“I look forward to working closely with our talented team to deliver innovative products and solutions that drive growth and value for our customers and shareholders,” Khin said in the announcement.
IGT recently announced that total revenue for the second quarter of the year was close to $1.05 billion, a 1 percent decrease from last year.
These results came after the announcement of Apollo Funds’ acquisition of IGT’s Gaming and Digital business, along with Everi.
Worldwide integrated resorts operator Mohegan has announced the appointment of a new Chief Operating Officer, Joseph J. Hasson, subject to regulatory approval.
Hasson had been serving as Mohegan’s interim COO since April of this year, ‘overseeing the development and execution of short and long-term strategic business plans across all Mohegan properties’
Hasson will oversee the daily operations of Mohegan’s resorts in Northern Asia (where it operates INSPIRE), the United States and Canada, while maintaining his role as General Manager of Mohegan Casino at Virgin hotels Las Vegas during the ownership transfer.
Hasson will report directly to Mohegan’s President and CEO, Ray Pineault.
“Joe Hasson’s expertise, garnered over more than 40 years in the gaming and hospitality industries, coupled with his exemplary leadership at our Las Vegas property, positions him uniquely to ensure strategic alignment and continuity across Mohegan’s diverse portfolio,” commented the CEO on Hasson’s appointment.
Before joining Mohegan, Hasson served as the COO of Station Casinos LLC and Red Rock Resorts.
