Morgan Stanley notes that Macau casinos ceasing to offer free snacks could reduce foot traffic. However, this measure is expected to have only a small impact on gross gaming revenue (GGR), as it mainly discourages visitors who come to casinos for free snacks but never gamble. Gamblers will still have easy access to free snacks.
According to an investment memo released on Wednesday, the same day Macau casinos reportedly stopped offering free snacks in casino areas, analysts Praveen K. Choudhary and Gareth Leung indicated that Macau gaming stocks fell by 3-7 percent on Wednesday.
“We believe this decline is related to casinos ceasing to offer free snacks to non-gamblers/non-members,” they noted.
Morgan Stanley mentions that local small and medium enterprises (SMEs) may have complained to the local gaming regulator, the Gaming Inspection and Coordination Bureau (DICJ), about the impact of free snacks in casinos on their businesses.
The research team, citing gaming operators, reveals that most casinos continue to provide free beverages as they did before COVID-19. However, they now require membership cards with at least one point (indicating some gambling activity) to receive free snacks.
Macau’s GGR recovery has been driven by high-end gamblers since the pandemic, reflected in mass GGR per Chinese visitor being 34 percent higher in the first quarter of 2024 compared to 2019.
In a previous report by AGB, industry experts also noted that free offerings do not align with a strategy focused on premium mass clientele.
Initially, different gaming operators in Macau joined this price war-like battle due to the intensifying competition in the market. The competition reinforces the market view about intense competition—everyone has to spend to attract foot traffic so that they might earn higher GGR.
Genting Malaysia Berhad’s President and Chief Operating Officer (COO), Tan Kong Han, assured shareholders that Genting casinos would remain operational due to several key factors.
Tan Kong Han, Genting Malaysia COO
According to a report from the Malaysian Chinese-language news outlet Sin Chew, Tan made this statement during the company’s annual general meeting (AGM) on Wednesday.
Tan expressed confidence that the government would not seek to close the casinos, citing the continued growth of Genting Highlands’ business.
Genting Highlands, also known as Resorts World Genting (RWG), is operated by Genting Malaysia, the country’s sole gaming operator.
The group’s COO emphasized: “The company has consistently adhered to the highest governance standards and conducted its gaming business responsibly. Over the years, we have operated in full compliance with government regulations, with Resorts World Genting being a significant contributor to the country’s tax revenues.”
Addressing broader industry trends, Tan noted that over the past decade, several countries initially opposed to the gaming sector have now embraced the establishment of integrated resorts.
“Similar to Resorts World Sentosa in Singapore a decade ago, the expansion of the gaming industry in Macau, China, and the Middle East, as well as recent developments in Japan and Thailand, demonstrates growing government interest in leveraging integrated resorts to stimulate economies, create employment opportunities, and generate tax revenue for communities,” he added.
Resorts World SentosaResorts World Sentosa
Concerns about casino closures at Resorts World Genting (RWG) arose when it announced the closure of sections in two out of its three casinos starting from February 28th this year.
Despite emphasizing that the closures were temporary, this clarification contradicted media reports indicating that the closure would be permanent.
Genting clarified that only portions of Genting Casino 1 (Circus Palace) and Genting Casino 2 (Hollywood) would undergo temporary closure for renovation purposes. SkyCasino will remain operational as the sole functioning casino during this period.
At that time, the temporary closure was reportedly attributed to dwindling patronage.
Visa-Free policy as a booster
From the same source citing Genting’s shareholders, Genting Malaysia’s management has praised the mutual visa exemption between Malaysia, India, and China, noting that the policy has beneficial effects on the group’s business.
“In the first quarter of 2024, revenue from Genting’s local leisure and hotel business increased by 25 percent year-on-year, and Resorts World Genting’s business volume increased significantly, with the main tourists coming from Singapore, Indonesia, China, and India.”
According to the group’s financial update for 1Q24, its net profit reached RM36.7 million ($7.8 million), reversing a loss of RM45.4 million ($9.65 million) recorded in the same quarter last year.
Total gaming revenue for the group hit RM1.99 billion ($423.1 million), while non-gaming revenue totaled RM715.5 million ($152.1 million).
China and Malaysia entered into a visa-free agreement in December last year, which has been extended until the end of 2025. The duration of each stay has also been extended from 15 days to 30 days.
Online gaming
The Genting brand has been a victim of illegal online gaming operations. In response to shareholders’ queries, a spokesman highlighted that online gambling is illegal in Malaysia, although numerous unauthorized online platforms exist, some of which misuse the Genting Group brand.
Genting Malaysia affirmed its commitment to reporting such issues to the authorities and pursuing legal action against those who misuse its brand without authorization.
Additionally, Genting Malaysia stated its readiness to assist relevant authorities and law enforcement agencies upon formal complaints to address the issue of illegal online gambling in Malaysia.
The company also noted it has implemented various measures to combat unauthorized entities misusing Genting’s information. These measures include issuing alerts and warnings on its websites and notifying bodies such as the Malaysian Communications and Multimedia Commission (MCMC).
A Swedish Radio News investigation has uncovered that games from Swedish company Evolution have been found on a number of sites for illegal online casinos in Southeast Asia.
The investigation reveals that some of these online casinos have ties to other suspected criminal activities such as money laundering and fraud. Experts consulted by the outlet warn that game suppliers like Evolution risk assisting the criminal organizations behind these illicit operations by allowing their products to be featured on these sites.
Among these sites were some 50 based in Cambodia, with Evolution games also featured on a casino site in the Philippines.
One instance highlighted is a press conference in Thailand, where police displayed cash amounting to the equivalent of $3.2 million. The money is suspected to have been obtained through a criminal network’s cryptocurrency scams targeting elderly Thai citizens.
“From our investigation into websites offering illegal gambling, we found that Evolution is one of the products featured,” Sarayu Klinhorm, Deputy Superintendent at the Thai police’s Cyber Crime Investigation Bureau said in the press conference, according to the report.
Evolution is a Sweden-based B2B solution provider for casino operators that offers live casino, games, and slots.
The company’s games, including roulette, baccarat and blackjack, are widely available on online casinos around the world. The company has seen significant growth, particularly in the lucrative Asian market.
However, there have been persistent warnings about online casinos in the region being used for money laundering and other illicit activities by organized crime groups.
Experts consulted by Swedish Radio News argued that while Evolution may not be directly involved in criminal activities, the company bears responsibility for the potential misuse of its products.
Evolution declined to comment on the report but stated that none of the sites mentioned are their customers or their customers’ customers, adding that it vets its customers, but acknowledges that its supply chain can be complex.
The release of Queensland‘s gaming data for May 2024 revealed a robust performance for gaming venues, with total gross revenue experiencing a 13.8 percent increase from the same month in the previous year.
According to Geoff Wohlsen from Wohlsen Consulting, compared to April revenue saw a 6.3 percent rise.
Pubs enjoyed a particularly strong month, recording an 8.1 percent increase in gross revenue compared to April. This growth boosted pubs’ market share from 56.1 percent to 57 percent.
Traditionally, May sees an uptick in gaming revenue compared to April, typically ranging from 3 percent to 5 percent, attributed to the additional trading day and the impact of ANZAC Day in April. This year, the five Fridays in May further contributed to the positive results.
Overall, Queensland’s total gaming machine gross revenue for May 2024 was AU$293.1 million ($195.4 million), marking a 13.8 percent increase from May 2023.
Average daily revenue per machine rose from AU$207 ($138) to AU$237 ($158), a 14.5 percent increase, as clubs held a 43.0 percent market share, while hotels’ market share grew to 57 percent.
The Melbourne Magistrates’ Court has ordered Australian gambling group Tabcorp to pay an AU$370,417 ($246,097) fine after the company pleaded guilty to 43 charges related to failing to prevent a minor from gambling at multiple venues across Victoria.
The charges, brought by the Victorian Gambling and Casino Control Commission (VGCCC)in May 2023, stem from an incident where a 17-year-old was found to have gambled at various Tabcorp-operated venues over the span of six months, from May 2022 to October 2023.
The affected venues included the Albion Charles Hotel, Brunswick Club, Coburg TAB Agency, Cramers Hotel, Doncaster Hotel, Duke of Edinburgh Hotel, Edwardes Lake Hotel, Excelsior Hotel, Northcote TAB Agency, Olympic Hotel, Parkview Hotel, Preston Hotel, and Rose Shamrock & Thistle Hotel.
Annette Kimmitt, CEO VGCCC
VGCCC CEO Annette Kimmitt AM condemned Tabcorp’s failures, describing the breaches committed as “incredibly serious” and “reflecting a fundamental failure to protect minors from the risks associated with gambling, as well as a lack of vigilance on their part”.
“These failures undermine the integrity and safety of the industry,” she pontificated.
Kimmitt also emphasized the importance of gambling providers and their staff in upholding the responsibilities to rigorously check IDs and supervise gambling activities to ensure minors are not able to access these services. “Their vigilance is crucial in safeguarding young people from the harms of gambling,” she said.
The VGCCC previously banned Tabcorp from accepting cash bets at most of its Victorian terminals. A statewide direction was issued by the regulator after it was found the company had not prevented minors from using Electronic Betting Terminals (EBTs) to wager.
Tabcorp has announced a substantial loss of AU$636.8 million ($417.2 million) and a 5 percent revenue decline in its latest half year report.
The VGCCC then vowed to continue taking decisive action to uphold the safety and wellbeing of the community, particularly when it comes to protecting children from the dangers of underage gambling.
Moves by Macau operators to introduce more incentives to lure customers into their integrated resorts could be having an adverse effect on their premium mass attraction strategy. While word of mouth from the various offerings – normally F&B oriented – are effective in driving clientele to the venues, spending and casino visitation might not actually increase, note experts, particularly as savvy visitors take advantage of the free offerings, instead of opening their wallets.
Gamzix has announced the launch of “Egypt Sphere: Hold The Spin,” the newest slot game, all developed in-house. As a prominent full-cycle slot provider, Gamzix remains steadfast in its commitment to delivering groundbreaking gaming experiences characterized by top-tier graphics and animations, aiming to captivate players and bolster casino revenues.
This 5-reel, 4-row slot with 40 paylines transports players to ancient Egypt. Its unique Bonus Game, activated by six Bonus symbols, offers 3 spins with locking symbols and resetting spin counts. Expand symbols unlock extra rows, potentially leading to the Grand Jackpot of 5000 times the bet.
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In a move to address financial risk and promote responsible gambling, the Australian government has enforced a prohibition on using credit cards and digital currencies for online betting.
This ban extends to credit cards linked to digital wallets, various cryptocurrencies like Bitcoin, and any novel forms of credit.
This regulatory measure aligns online betting regulations with those governing land-based gambling. Notably, there are no changes to the payment methods accepted for online lotteries, which continue to permit credit card transactions.
According to The Canberra Times, Kai Cantwell, CEO of Responsible Wagering Australia, has called on the government to broaden the scope of the ban to include these exempted forms of gambling.
Cantwell emphasized the significance of this measure in safeguarding customers and facilitating better self-regulation of their gambling habits. He expressed concerns that inconsistent consumer protection measures across various forms of gambling might prompt vulnerable Australians to gravitate towards less regulated options, increasing their susceptibility to harm.
The industry had been granted a six-month transition period, with the complete ban becoming effective as of Tuesday, June 11th. Non-compliant companies risk facing fines of up to AU$234,750 ($156,600).
The regulator has been granted enhanced authority to enforce these restrictions. Additionally, the federal government is considering a gradual elimination of gambling advertising over a three-year period, following one of the 31 recommendations issued by a parliamentary inquiry on problem gambling.
Michelle Rowland, the Australian Communications Minister, stated that more initiatives aimed at preventing gambling-related harm would be forthcoming. She emphasized the principle that Australians should refrain from gambling with funds they do not possess.
Rowland also highlighted that this ban further complements the substantial strides made by the Albanese Government in reducing gambling harm over the past two years, which has already positively impacted numerous vulnerable Australians.
Among the recent gambling reforms in Australia is the introduction of a betting self-exclusion register, which has already seen 22,000 individuals enroll.
An Indonesian Minister has flagged money laundering activities associated with online gambling, identified by the country’s Financial Transaction Reports and Analysis Center (PPATK).
Budi Arie Setiadi, Minister of Communications and Informatics
“These aren’t just gambling wins; they’re cases of money laundering,” Communications and Information Minister Budi Arie Setiadi stated at a recent meeting with the House of Representatives Commission I.
While Budi withheld specific details, Coordinating Minister Hadi Tjahjanto reported that January to March online gambling transactions hit IDR100 trillion ($6.13 billion), while some IDR327 trillion ($20.05 billion) was registered for 2023. Commission member Nurul Arifin questioned the ministry’s effectiveness, noting the economic toll.
In response, Budi reaffirmed the ministry’s commitment to fighting online gambling, highlighting the broader financial impact on Indonesian families and the nation.
A special inter-ministerial task force, led by President Joko Widodo, was formed to combat this issue. Hadi chairs the team, with Budi leading prevention efforts and National Police chief General Listyo Sigit Prabowo overseeing enforcement.
In Indonesia, all forms of gambling are illegal, with harsh penalties under the Criminal Code and Electronic Information and Transactions Law. Participants, organizers, and software distributors face severe prison terms and fines.
SIS (Sports Information Services), the leading content supplier of 24/7 live betting services, has agreed a landmark deal with long-term partner, bet365, to deliver its comprehensive eSoccer portfolio across all regulated markets and boost the renowned operator’s global offering.
The integration of the complete suite of H2H Global Gaming League eSoccer matches will see bet365 benefit from the increase in betting opportunities which are proven to maximise engagement and margin.
The agreement considerably strengthens SIS’ Competitive Gaming offering across the globe with eBasketball already live. The addition of eSoccer contests means more than 150,000 events will now be available on the world’s leading sports betting operator’s online platform.
Built specifically for sportsbooks, SIS’ H2H Global Gaming League is proven to deliver superior margins, adding as much as 10% in value to operators. Professional gamers take part in all eBasketball and eSoccer matches which are produced entirely in-house at SIS’s UK-based secure studios.
Paul Witten, Managing Director EMEA at SIS, said: “We are very pleased to launch our eSoccer product as part of our long-term partnership with bet365.
