Macau Government Tourism Office (MGTO) deputy director Cheng Wai Tong reported that, as of Wednesday July 10th, the average daily visitors count for July stands at approximately 87,000, aligning with the office’s expectations.
According to a local media outlet, Cheng expressed optimism about the tourism sector’s performance during the summer holiday period.
In addition to the strong visitor numbers, the hotel occupancy rate from January to June this year was around 88 percent. Cheng believes that this rate will exceed 90 percent during the peak summer season, reflecting robust demand.
Cheng also noted that there have been no reports from the industry about staffing shortages. He expressed confidence that the tourism sector has adequately prepared for the busy season, ensuring sufficient personnel to accommodate the influx of visitors.
According to previous projections, Macau is expected to receive 33 million visitors this year and from January to May Macau already received over 14 million visitors.
Hong Kong-listed Summit Ascent has appointed Chang Heng Kit as a new non-executive director.
According to a Thursday filing with the Hong Kong Stock Exchange, Chang was a director of guest services and relations development for a leading gaming promoter in Macau from 2011 to 2021.
Chang, aged 37, is currently the general manager of a travel agency in Vietnam.
In his role as a non-executive director, Chang will receive an annual fee of HK$240,000 ($30,730), according to the filing.
With this appointment, the company continues to maintain its audit committee, remuneration committee, nomination committee, and corporate governance committee without any member changes.
In January this year, the majority of the Summit Ascent board of directors resigned in protest against the company’s intended departure from the Russian casino market, involving the sale of its shares in Tigre de Cristal, an integrated resort (IR) situated in the Primorye economic zone.
Trading in Summit Ascent shares has been suspended since 14th February 2024 and will only resume when the company meets all resumption guidelines.
A new meeting has been called by the parent company of Summit Ascent, the LET Group, to decide about the group’s proposition to dispose of its Russian casino assets, including Tigre de Cristal.
In a statement released late Wednesday, PN spokesperson Commander John Percie Alcos affirmed the navy’s support for Lt. Mendoza, noting she worked to prove her innocence and clear her reputation.
“As we take cognizance of the apparent commission of identity theft implicating the name of Lt. Jessa Mendoza — a PN junior officer of good repute — as director or incorporator in several companies involved in offshore gaming activities and other businesses during the ongoing Senate inquiry, the PN affirms our support to our fellow serviceman in her resolve to prove her innocence and clear her reputation,” Alcos said according to local media reports.
Mendoza had earlier appeared before the Senate Committee on Women and Children’s investigation on POGOs to vehemently deny being the incorporator of these spurious companies. Alcos stated that a formal internal inquiry has been initiated in coordination with Lt. Mendoza to shed light on how her name was wrongfully associated with this issue.
The PN spokesperson also noted that the navy can “attest” to Mendoza’s untarnished record during her decade of honorable service, and that she always upholds the “core values and highest standards of being a respectable naval officer.”
Alcos took the opportunity to call on all personnel and the public to be vigilant and take precautions to prevent themselves from becoming victims of identity theft, which they stated appears to be the case with Lt. Mendoza.
The Macau government has decided to keep the cap on licensed gaming promoters (junkets) at 50 for the year 2025, according to information from the city’s Gaming Inspection and Coordination Bureau (DICJ).
This decision maintains the current maximum number of permitted junkets in the Macau casino market, however less than half of the permitted quota is currently being utilized, as the industry has seen an 85 percent decline over the past decade.
As of June 11, Macau had only 22 licensed junket operators.
Macau’s current gaming law framework requires a cap on the number of junkets that each of the city’s six casino operators can work with. This cap varies from operator to operator, at the discretion of the Secretary for Economy and Finance.
According to Macau upgraded regulations, each junket licensee is required to provide a guarantee of MOP1.5 million ($186,000), with the highest junket commission rate being capped at 1.25 percent of the total net rolling amount. The minimum corporate capital required is MOP10 million ($1.24 million).
In the previous year, 235 junket operators had registered to operate under licenses in Macau, collectively contributing around 60 percent of the casino revenues.
The SAR’s Legislative Assembly 2nd Standing Committee is currently analyzing a proposed law on granting credit for gaming. The new version of the proposed law provides that gambling promoters will no longer be eligible to grant credit in casinos, contrary to current practice.
Good Morning. Asia continues to be the mecca foriGaming and sports betting, as populations grow, spending propensity increases and interest in testing one’s luck rises. Vying for space in the marketplaces is tough, with one top company aiming toleverage its success in India across the Philippines, Malaysia and South Korea. Meanwhile, in Macau, GGR could hit some $29 billion this year, based upon strong growth in the second half of 2024, even after June failed to impress.
The online gaming sector has seen expansive growth in recent years, with many operators wishing to move into the Asian marketplace. One such is sportsbook and iGaming provider GR8 Tech, which is finding that its key markets are actuallyIndia, the Philippines, Malaysia and Korea. Each market offers its own specific qualities, as well as vastly different population sizes, but all demonstrate a strong propensity for growth in sports betting in particular.
Alex Feshchenko, deputy CEO and CRO of sportsbook and iGaming provider GR8 Tech, envisions India, the Philippines, and South Korea as “high-potential” markets deserving deeper development.
Alex Feshchenko, deputy CEO of sportsbook and iGaming provider GR8 Tech
In an interview with AGB, Feshchenko highlights Asia as the world’s largest and fastest-growing market, drawing significant attention and investment from numerous companies.
With its vast population base and steadily increasing per capita GDP, Asia has become essential for industries, particularly entertainment and gaming.
“For companies aiming for global dominance, focusing on the Asian market is practically unavoidable,” notes the executive.
“We have strategically chosen a few high-potential markets for deeper development within Asia. Currently, our key markets include India, the Philippines, Malaysia and South Korea.”
Feshchenko emphasizes that achieving success in any region requires focusing on key markets for initial breakthroughs rather than attempting comprehensive coverage.
He notes that GR8 Tech’s sports betting product has already attained high standards in India, capturing market share and establishing the nation as its primary market. Looking ahead, GR8 Tech aims to replicate this success in other targeted markets.
The company’s sports betting product for cricket is designed to handle the sport’s complexity and popularity. Utilizing an in-house developed model, it aims to provide accurate data and comprehensive coverage. The system integrates data from top providers with proprietary algorithms, managing risk and delivering dynamic odds and live updates.
This approach meets the specific demands of the cricket betting market, particularly in regions like India where cricket enjoys immense popularity. Covering local leagues and international tournaments, the cricket betting product offers a reliable platform for bettors, says the executive.
Feshchenko acknowledges that the Indian market requires robust risk management due to fraud prevalence. To address this, GR8 Tech offers flexibility with two risk management modes: full responsibility by the service provider or tools for operators to manage risk independently.
According to Statista, the online sports betting market in India is experiencing significant growth, projected to reach $1.97 billion in revenue by 2024. The market is expected to grow annually at a rate of 6.51 percent from 2024 to 2029, reaching a projected volume of $2.7 billion by 2029.
Southeast Asian markets
In the same interview, Feshchenko notes that Southeast Asian markets, including the Philippines, Malaysia, and Indonesia, boast large populations and significant market potential.
“These markets share some commonalities, but there are also subtle differences.”
Feshchenko observes: “the energy and vibrancy of the Philippine market are notable, but its structure is not fully developed yet, and there is no clear brand leader. This presents enormous opportunities for new players.”
Additionally, many Southeast Asian markets exhibit gambling habits similar to Western countries, and their high acceptance of English facilitates the spread of dynamic content.
Statistically, the Philippines’ iGaming revenue saw substantial growth in 2023, increasing by 92.3 percent compared to the PHP30.24 billion ($518 million) generated in 2022. This growth also surpassed the previous yearly high of PHP32.24 billion ($553 million) set in 2019 by 80.4 percent.
Regulated iGaming in the Philippines is overseen by the Philippine Amusement and Gaming Corporation (PAGCOR), covering online games, bingo, specialty games, and sports betting.
South Korea
South Korea is also drawing attention from market participants, as South Korean gamblers are increasingly influencing both online and land-based gaming markets in recent years. Despite its smaller population size (51 million) compared to China (1.4 billion), the market potential and spending power are significant and hard to ignore.
Feshchenko identifies South Korea as a promising market for sports betting, sharing similarities with Western markets in terms of high acceptance of dynamic content and preference for structured, technology-driven solutions.
South Korea’s well-developed infrastructure and tech-savvy population create an ideal environment for the adoption of innovative sports betting platforms. Despite these advantages, the market remains relatively untapped, offering substantial growth potential.
GR8 Tech aims to capitalize on these opportunities by offering tailored betting solutions that meet the specific preferences and regulatory requirements of South Korean bettors.
Overall, the Deputy CEO of GR8 Tech envisions significant changes in the Asian market in the coming years, driven by technological advancements and market maturation. The group anticipates new opportunities for players, leveraging their technological edge to handle large player volumes and bets, and providing various front-end solutions including native apps and web front-end technology.
CDNetworks, the APAC-leading network to deliver edge as a service, is excited to announce the launch of its China Premium Service (CPS), a reliable and secure solution designed to help organisations deliver fast and seamless connectivity to users located in mainland China.
This new service aims to provide the iGaming industry with unprecedented access to the Chinese market, ensuring optimal performance and connectivity without the common regulatory hurdles.
Unlocking Seamless Connectivity with CDNetworks’ China Premium Service
The China Premium Service allows organisations to provide users in mainland China with access to international websites and applications, overcoming performance and connectivity issues commonly faced in this region. Key features and benefits of the CPS include:
No ICP License Required: Businesses can effortlessly expand operations in China and reach a larger audience without dealing with the rigorous regulations related to ICP licensing.
Low Latency: CPS delivers lightning-fast response times, with latencies as low as 50ms, ensuring fast, reliable, and seamless communication for even the most time-sensitive websites and applications.
High Availability: With advanced technologies, CPS guarantees minimal packet loss rates of 0%, optimising the delivery of data packets and ensuring they arrive at their intended destination without delay.
24/7 Support: A dedicated support team is available around the clock to provide assistance and promptly resolve any issues, ensuring businesses can count on CPS to deliver uninterrupted and reliable connectivity in mainland China.
Empowering the iGaming Industry
CDNetworks’ China Premium Service is especially beneficial for the iGaming industry. It ensures players experience smooth and uninterrupted gameplay, maintaining high performance and reliability. With ultra-low latency, robust security measures, and 24/7 support, CPS enables iGaming platforms to provide a seamless and immersive gaming experience, enhancing user satisfaction and loyalty.
Strategic Global Expansion
This announcement follows CDNetworks’ recent unveiling of its infrastructure investment expansion plans in South & Southeast Asia, the Middle East, and Latin America. These strategic initiatives demonstrate CDNetworks’ commitment to enhancing global connectivity and providing top-tier digital experiences across diverse markets.
As the APAC-leading network, with over 2,800 global PoPs, CDNetworks delivers the fastest and most secure digital experiences to end users. Our diverse products and services include web performance, media delivery, cloud security, and colocation services — all of which are designed to spur business innovation. Visit cdnetworks.com and follow us on LinkedIn.
Macau’s gross gaming revenue (GGR) this year is expected to reach $29 billion, representing 82 percent of pre-COVID-19 levels, according to projections by Goldman Sachs.
The projections suggest that in the second half of the year, Macau’s GGR could increase by 14 percent year-on-year, amounting to a daily GGR run-rate of MOP638 million ($79.4 million).
In an investment memo previewing Macau’s 2Q24 results, analysts indicate that recent factors such as the April-May wealth downturn and Euro 2024 have temporarily impacted the city’s GGR.
Looking at past European soccer cup seasons, Goldman Sachs estimates up to a 5 percent impact on GGR due to dilution from soccer betting. However, historically, Macau’s GGR tends to fully recover immediately thereafter in August-September. This year, the event will last until July 14th.
Meanwhile, the brokerage notes that the crackdown on illicit money exchange businesses has had little impact. ‘It should not significantly affect VIP or high-end premium mass-market GGR, as these players typically have their own sources of liquidity.’
‘For grind mass or low-end premium mass players, their liquidity needs should be covered by the daily RMB20K ($2,750) limit one can physically bring across the border and RMB10K ($1,370) per card via ATM machines. It is those who gamble or lose an amount in between who may be more affected if they cannot source liquidity from legitimate money exchangers in pawn/jewelry shops or elsewhere.’
Sequential EBITDA decline of 4% in 2Q24
Due to softer June GGR, the brokerage anticipates that gaming industry EBITDA could decline by 4 percent in 2Q24 from the previous quarter.
Simultaneously, with Chinese travelers gradually broadening to other provinces, the GGR mix may shift towards higher-margin low-end premium and grind mass players.
‘This shift may be offset by higher promotional allowances reflecting a full-quarter impact of stepped-up promotional activities by Galaxy and Melco, although competitive intensity has somewhat eased in recent weeks.’
Galaxy EBITDA growth at the expense of Wynn
Goldman Sachs calculates that Galaxy Entertainment’s EBITDA could increase by 9 percent sequentially, while Wynn and MGM China could see declines in EBITDA of 13 percent and 10 percent respectively.
Analysts noted that in previous analyses, Galaxy and Melco gained market share from Wynn and MGM in April-May by increasing promotional activities, leveling the playing field with MGM China while Wynn refrained from similar actions.
Galaxy and Melco’s market share regarding GGR slightly rebounded in June, with Galaxy’s share normalizing to 19 percent.
Despite The Londoner undergoing renovation, Sands China’s market share held relatively well at 24 percent, though estimates suggest it might have lost around $20 million quarter-on-quarter in non-gaming revenue.
Former Philippine presidential spokesperson Harry Roque has been identified as the “legal head” of a Philippine Offshore Gaming Operator (POGO) hub in Pampanga, according to the Philippine Amusement and Gaming Corp. (PAGCOR) on Wednesday.
The POGO hub in question was raided twice last month by authorities for allegations including human trafficking, torture, and scams.
As reported by Philstar, PAGCOR chief Alejandro H. Tengco disclosed that Roque appeared before his office in July 2023 to provide legal support for Cassandra Lee Ong, who sought assistance from PAGCOR regarding financial issues at Lucky South 99. Ong serves as the authorized representative of the sprawling POGO compound in Porac, Pampanga.
Ong requested PAGCOR to permit Lucky South 99 to settle its outstanding taxes in installments, estimated by Tengco to be no less than $500,000, notes the publication.
Tengco stated that, in her appeal, Ong alleged being deceived by Dennis Cunanan, who purportedly collected six months’ worth of tax payments on behalf of Ong but failed to remit them to PAGCOR. Cunanan reportedly is the person who applied for the POGO license of Lucky South 99.
The revelation was made during the Senate Women and Gender Equality Committee’s fourth hearing, which discussed the possibility of banning POGOs in the country, as well as the case involving POGO MayorAlice Guo.
Harry Roque is a former Cabinet official under then-President Rodrigo Duterte, who facilitated the issuance of licenses to POGO hubs.
According to local media outlet, Tengco displayed the organizational chart including the documents submitted by Lucky South 99 for their initial license application, which identified Harry Roque as the “legal head.”
In a video statement posted Wednesday afternoon, Roque denied the accusations, clarifying that he has never had a lawyer-client relationship with Lucky South 99.
He emphasized that, when he assisted in their license reapplication in 2023, the POGO hub had not yet been flagged as illegal. Roque further stated that he did not authorize his inclusion in the POGO hub’s organizational chart.
China Ecotourism Group Limited has labeled the growth of China’s lottery industry as ‘remarkable’ in recent years, as it secured new sports lottery terminal procurement bids for Shaanxi, Inner Mongolia, and Henan.
‘National lottery ticket sales increased by 13.8 percent and 36.5 percent year-on-year in 2022 and 2023, respectively. Even in the first five months of 2024, the year-on-year growth reached 12.2 percent,’ the group points out in a recent dispatch.
China’s total lottery ticket sales amounted to RMB579.7 billion ($81.64 billion) in 2023, up 36.5 percent year on year, data from the Ministry of Finance showed.
China Ecotourism also underlined that lottery sales have become a powerful driver for the advancement of public welfare causes, with public welfare funds raised from lottery ticket sales directed towards supporting the elderly, the disabled, children, social welfare and the development of mass and competitive sports.
In China, lottery operations are authorized and issued by the state, with the proceeds used as public welfare funds.
The comments were included in a release by China Ecotourism, in which it reveals that its subsidiary Guangzhou Lottnal Terminal Company Limited has successively won the bids for the sports lottery terminal procurement projects of Shaanxi Province, Inner Mongolia Autonomous Region, and Henan Provincial Sports Lottery Management Centers.
China Ecotourism Group Ltd is an investment holding company principally engaged in the provision of core technology and operation services for China’s public welfare lotteries, terminal equipment, and gaming products.
In May of this year, the company had already secured significant contracts for sports lottery terminal procurement projects in Guizhou and Guangxi provinces.
‘The group’s lottery business has been steadily developing, riding on the high-quality growth of the industry. The group will continue to deepen its involvement in the sector, constantly exploring new market opportunities and providing advanced products and technologies to serve the growing public welfare needs,’ the dispatch – signed by China Ecotourism Chairman Ling Di – adds.
The group considered that the new contracts cemented Guangzhou Lottnal’s ‘industry-leading position’, as it continues to dominate the number of bids won for sports lottery terminal procurement projects in China in 2024.
Still, in April the Hong Kong Securities regulator initiated a disciplinary action against China Ecotourism Group and seven of its executives, after it criticized the company for making statements to some executives that harmed the rights and interests of investors.
