Good Morning. As we’ve been reporting in recent weeks, Australia’s hospitality industry is facing a staffing crisis as weary employees leave the industry in droves. According to data from IGamiX Management & Consulting, even prior to the pandemic Australia had one of the highest gaming staff costs per unit of major jurisdictions. We take a look at just how lucrative the market is, and what challenges are foreseen impacting its growth in the near future.
Asia Gaming Brief will be taking a short break over Christmas. We’ll be back next week to keep you covered on the latest developments in the industry. Wishing you a joyous Christmas!
What you need to know
- Melco Resorts & Entertainment said it has teamed with Marriott International to bring a W Hotel to the second phase of Studio City’s development, which is scheduled to open in December next year.
- Aristocrat has asked the U.K.’s Takeover Panel to look into whether Asian investors who are buying up stock in Playtech are acting in concert, Sky News reports.
- SkyCity Entertainment will invest $23.3 million in Gaming Innovation Group in a directed share issue that will part finance the latter’s acquisition of sports betting platform provider Sportnco.
- Scientific Games on Wednesday announced it has withdrawn its all-stock offer to acquire the remaining 19 percent equity interest in SciPlay that it doesn’t own.
The year ahead
The ramp up of vaccination and ease of restrictions contribute to David Lawrence’s confidence that the industry will see recovery in 2022. The casino general manager expects pent up demand to follow.
On the radar
- MGM China becomes second operator to confirm annual employee bonus.
- Delta Group focused on India expansion, awaits Daman casino license.
- Australian states start bringing back Covid-19 measures.
What the papers say
- Melco sues Alvin Chau’s ex-mistress for return of mortgaged, luxury Hong Kong flat
- Austria’s Hotel Sacher, Japan’s DWANGO to take part in Nagasaki IR bid
- Jeju introduces proof of vaccination or covid-test requirement for casino entry
ON THE GROUND
Australia, which is facing a staffing crisis in its hospitality industry, already has amongst the highest labor costs in the business, although the model is still lucrative given lofty gambling spend per capita. “If you are a slots provider you definitely want to be in Australia,” said IGamiX partner and president of casino operations, Eric Coskun. “The numbers in terms of win per unit per day outweigh labour costs.”
- Galaxy invests $10m in Mingyang Smart Energy green bond
2021 was a monumental year for Gary Platt Manufacturing, with landmark innovations that helped our customers provide their guests with the most comfortable experiences ever in the casino, hospitality areas, and in office situations, said CEO Joe Esposito.
Jumbo Technology Co. has entered into a distribution agreement with Gaming Arts to be the exclusive supplier of certain games in North America. Its popular fishing games are expected to be in hot demand.