IAG November 2015

inside asian gaming 

november 2015 

30 MOP 

INDUSTRY PROFILE 

Jim Preston: 

Melbourne to Macau 

FEATURE 

Macau Gaming Show: 

will it live up to the hype? 

Lights! Camera! 

Action! 

Studio City Macau opens its doors 

www.asgam.com

COVER STORY Contents november 2015 

6 


Action! 

Editor At Large Muhammad 

Cohen takes an in-depth look at 

the latest integrated resort to 

open its doors in Cotai. 

FEATURE 

Cover Photo: 

© Melco Crown 

14 

Studio City already 

a long running drama 

Last month finally saw the 

opening of Studio City, ending a 

14-year saga with a slew of twists 

and turns worthy of the best 

Hollywood psycho-thriller. 

18 MGS: Will it live up to the hype? 

Can MGS live up to the expectations and how will it fare in the 

“show war” with G2E Asia? 

INDUSTRY PROFILE 

20 Jim Preston 

Jim Preston is relatively new to 

Macau but he is no stranger to 

the gaming industry having plied 

his trade at Crown Melbourne for 

decades. 

TECH TALK 

24 Observation Deck 

Security and surveillance products protect operations and 

players against an assortment of crimes – but they can do more. 

GAMBLING AND THE LAW 

32 End Game for Daily Fantasy Sports? 

IAG’s resident US gambling law expert takes a look at the 

tough times Daily Fantasy Sports is battling. 

BLAST FROM THE PAST 

38 Business Not as Usual 

IAG has been covering the Asian Gaming industry for over 

10 years and our “Blast from the Past” columns take a fresh 

look at an article from the past with the benefit of hindsight. 

BRIEFS 

42 Regional Briefs 

44 International Briefs 

46 Events Calendar

EDITORIAL 

End of an era – and the start of a new one 

Chief Executive Officer 

Andrew W Scott 

Founder and Adviser 

Kareem Jalal 

Chief Operating Officer 

Michael Mariakis 

Chief Marketing Officer 

Derrick Tran 

Director 

João Costeira Varela 

Administrator 

Cynthia Cheang 

Administrative Assistant 

Suie Ng 

Editor at Large 

Muhammad Cohen 

Contributors 

Muhammad Cohen, Paul Doocey, Kareem Jalal, 

I Nelson Rose, Andrew W Scott 

Graphic Designer 

Rui Gomes 

Photography 

Ike, Gary Wong, James Leong, Wong Kei Cheong 

Inside Asian Gaming 

is published by 

Must Read Publications Ltd 

5A FIT Center 

Avenida Comercial de Macau 

+853 8294 6755 

For subscription enquiries, please email subs@asgam.com 

For advertising enquiries, please email ads@asgam.com 

or call +853 6328 7737 

www.asgam.com 

ISSN 2070-7681 

Inside Asian Gaming 

is part of 

It is with a desire to honor the past but also a sense of anticipation and excitement for the future 

that I put pen to paper (well, fingers to keyboard) to write this, my first ever Editorial for Inside Asian 

Gaming. Over the last ten years this page has been reserved for the IAG Editor of the day to wax 

lyrical, analyzing a particularly relevant aspect of the Asian gaming industry. But just this once I 

hope you’ll forgive a little introspection about this very magazine you hold in your hands. 

World Gaming Group acquired Must Read Publications Ltd, the company that publishes IAG, 

effective from May 1st this year, from its founder Kareem Jalal. As CEO of World Gaming Group and 

our own Macau-based gaming magazine WGM (formerly World Gaming magazine), I’ve long admired 

what Kareem has done with IAG since he founded the magazine way back in 2005, four years before we 

established WGM. Asian gaming was a very different industry back then. Macau consisted of the old 

Lisboa property and a few SJM satellite casinos along with Waldo casino and Sands Macao, respectively 

the only properties open for Galaxy Entertainment Group and the company which would eventually 

become Sands China. Wynn, MGM and Melco Crown didn’t even have open properties. Grand Lisboa 

was still a couple of years away. Casinos in the Philippines were essentially PAGCOR operated affairs, 

with Resorts World Manila still four years away. Nagaworld in Phnom Penh didn’t even have hotel rooms! 

Since those early days of the “new” Asian gaming industry, IAG has been a constant presence, 

documenting every twist and turn. IAG went monthly in January 2007 and hasn’t missed an issue since. 

IAG is now approaching its 120th edition. 

Over those nearly 120 editions IAG has built up an impressive list of advertising clients. IAG has 

become the magazine of record for the Asian gaming industry and like many premier B2B industry 

magazines, a company needs to advertise in it or be written about in its pages to be considered an 

important player in the industry. This premier industry leadership is all down to Kareem’s hard work 

driving IAG over the last decade. 

So what changes will WGG make to IAG? The answer is almost none. Why would we change a winning 

formula? That would be a bit like marrying someone and then trying to change them – why did you marry 

them in the first place? Whatever changes we might make will be will be very minor and for the better. As 

part of the terms of the acquisition, Kareem will remain on the IAG senior management team for years to 

come and now sports the rather dashing title of “Founder and Adviser”. We are very mindful that IAG has 

been Kareem’s baby for the last decade, so any small changes we might consider will only be implemented 

with his blessing. Its important we honor the magazine Kareem has created and not stray too much from his 

vision. Kareem will also be maintaining contact with IAG’s clients and other industry contacts. 

What we will be able to offer to IAG are the resources of the wider World Gaming Group. WGG has 

three arms: media (including WGM and WGM Daily), consulting (under our World Gaming Consultants 

brand) and operations (essentially third party revenue share arrangements under our World Players 

Entertainment brand). Bringing IAG in to this wider group means more staff and more resources will be 

at IAG’s disposal, which gives us the chance to bring you even more of the great industry stories you’ve 

come to know and love. 

Over the years IAG has had a number of Managing Editors, all of whom have contributed in their own 

ways to making IAG what it is today. In particular I would like to acknowledge both Michael Grimes and 

James Rutherford, both of whom had extended periods as Editor of IAG, and of course Kareem himself who 

has acted in the role on many occasions, including right up to last month. It’s time for Kareem to take a very 

well earned rest though and I’m acting as a temporary editor – but only for a few editions after which we will 

be passing the baton to a new Managing Editor (who both Kareem and I will approve and guide). 

Kareem’s a very likeable and popular fellow, and has become good friends with many IAG clients. 

He’s been a pleasure to deal with during the acquisition process. So while this is not exactly goodbye, 

since we’ll be working closely together on IAG for years to come, it is a very big thank you Kareem for the 

contribution you have made to the Asian gaming industry in the last decade. 

While it is the end of an era in one way, it is the beginning of a new one in others. This year has seen 

the opening of Galaxy phase II and late last month Studio City – which is the subject of our cover story this 

month. The next two to three years will see the openings of Wynn Palace, Parisian, MGM Cotai, Lisboa 

Palace and the much anticipated Louis XIII. Of course all this is in the wake of 17 consecutive months of 

year-on-year GGR contraction. As they say, “May you live in interesting times.” 

Just as Kareem navigated IAG as the Asian gaming industry’s magazine of record through the 

“interesting times” of the last decade, we at WGG intend to do the same through the next decade at least, 

and no doubt those times will be just as interesting! 

4 

inside www.wgg9.com 

asian gaming November 2015 

Andrew W Scott 

We crave your feedback. Please email your comments to admin@asgam.com.

Cover Story 


Action! 

It’s been a very long time coming 

– but it’s finally here. IAG Editor 

At Large Muhammad Cohen was 

at the grand opening of Macau 

Studio City and took an in-depth 

look at the latest integrated 

resort to open its doors in Cotai. 

By Muhammad Cohen, 

Editor At Large 

Muhammad Cohen also 

blogs for Forbes on gaming 

throughout Asia and 

wrote Hong Kong On Air, a 

novel set during the 1997 

handover about TV news, 

love, betrayal, high finance 

and cheap lingerie. 

With a cinematic theme, widescreen entertainment 

choices, high wattage star power from its 

kitchens to the opening night gala stage and no 

VIP gaming tables, Melco Crown has raised the 

curtain on Studio City, Cotai’s latest integrated 

resort production. Melco Crown Co-Chairmen Lawrence Ho and 

James Packer hope their US$3.2 billion resort will be a show-stopper. 

Macau’s gaming industry hopes the show it stops is 17 consecutive 

months of declining gaming revenue. 

Studio City follows a new script for Macau IRs. Its 250 gaming 

tables granted by the government are all for mass market players. The 

resort has invested hundreds of millions of dollars in entertainment 

features, headlined by a reported US$70 million for The Audition, a 

short film starring Academy Award winners Robert De Niro, Leonardo 

DiCaprio, director Martin Scorsese – all of whom attended the resort 

opening for the film’s debut – and Brad Pitt. Studio City bills itself as 

“Asia’s Entertainment Capital” with non-gaming attractions including 

a world’s first Batman ride, multi-stage magic show, Asia’s highest 

figure-eight Ferris wheel and a 5,000 seat arena where Madonna will 

do two shows in February, following opening night performances by 

Mariah Carey, Aaron Kwok and South Korea’s Sistar. 

“A baccarat table is a homogenous product,” Mr Ho, who is 

Melco Crown’s CEO, says. “What we really use to stand out from our 

competitors is entertainment and attractions.” He adds that Melco 

Crown “understood what the government wanted” regarding more 

non-gaming activities to make Macau a more compelling tourist 

destination. The resort was virtually complete when it opened to the 

public on October 27, missing just a handful of retail outlets and a 

pair of signature restaurants, including record setting Michelin star 

chef Alain Ducasse’s Rech, due to open next year. 

6 

inside asian gaming November 2015

Cover Story 

November 2015 inside asian gaming 7

Cover Story 

The 1,600 room resort’s exterior is “Gotham City with an asteroid 

shot through it,” Mr Ho says, while the interior evokes Hollywood 

of the 1920s and ’30s – staff urge customers, “Have a glamorous 

day” – with shopping areas presented as period movie set versions 

of New York and Beverly Hills, plus steam punk elements taken from 

the early industrial age. “We didn’t follow what the competitors did. 

We’re a young company,” the 38 year old Mr Ho adds. “We’re willing 

to try new things.” 

STAR POWER VERSUS HORESPOWER 

The most astonishing thing they’re trying, by Macau standards, 

is Studio City’s absence of VIP gaming, relying solely on higher 

margin but far lower volume mass market revenue. Constrained 

by the Macau government’s gaming table cap, Studio City received 

200 tables now and 50 more as of January 1. Mr Ho calls gaming 

revenue “the economic engine” that drives resort revenue and makes 

it possible to invest in expensive attractions. But with only 250 of 

the 400 tables originally envisioned and no VIP tables, some believe 

that engine may be short of horsepower. Mr Ho counters that Melco 

Crown, which also owns City of Dreams and Altira in Macau and City 

of Dreams Manila in the Philippines, currently derives less than 10% 

of EBITDA from VIP players and is less reliant on that segment for 

earnings than any Macau casino operator except Sands China. 

“We steered away from VIP gaming tables a long time ago. Since 

our IPO [on the US NASDAQ exchange in 2006] we believed mass 

tables would be leading the Macau market,” Mr Ho explains. “At 250 

tables, it was a no-brainer for us” to forgo VIP gaming. No doubt, the 

41% decline in VIP revenue through the first three quarters of this year, 

compared to the 29% drop in mass market revenue, helped guide 

the choice. “If it was 400 tables, maybe we would have put in some 

VIP,” Mr Ho adds. That number would also satisfy Melco Crown’s loan 

covenants calling for Studio City to have 400 tables by next October. 

Melco Crown says it is in talks with lenders to satisfy their concerns. 

The resort’s second level also reportedly has a VIP area ready to roll 

out, when and if management chooses to go after higher rollers. 

For now, gaming tables branch out from a central corridor 

leading from the hotel’s main entrance on Estrada do Istmo, Cotai’s 

central corridor. The roughly diamond shaped casino floor, with 

red, orange and gold as the dominant colors, also has 1,233 gaming 

machines and a 200 terminal live dealer multigame arena. Main floor 

table minimums begin at HK$300 with HK$1,000 tables dominant 

and all but 16 tables for baccarat. The premium mass Signature 

Club has a branch off the main floor with about one-third of the 

casino’s allotted tables and smoking prohibited outside smoking 

lounges throughout. Lighting fixtures range from crystal chandeliers 

to Chinese inspired cloth lanterns. The casino’s centerpiece is a 

fountain of cascading teapots, surrounded by a tea bar. There’s no 

live music or entertainment on the floor, but plenty outside. 

Studio City, 60% owned by Melco Crown and 40% by two US 

hedge funds, is banking on its location and future infrastructure 

development to make it a hit. The 13.1 hectare (32.3 acre) site sits 

at the foot of the Lotus Bridge border crossing from Hengqin Island 

and will eventually have a Macau light rail stop at its doorstep, both 

expected to generate lots of traffic in coming years. Despite Melco 

Crown securing its subconcession last among the six operators in 

2006, Mr Packer says, “We have been able to get the two best sites in 

Cotai,” with City of Dreams at the north end of Cotai’s main drag and 

Studio City at the south end. “Business continues to move to Cotai.” 

FANCY FLIGHTS 

Dubbed “Asia’s Entertainment Capital,” Studio City aims to shift 

Macau’s center of gaming and tourism gravity further toward Cotai 

with its array of non-gaming attractions. Most immediately noticeable 

is the celluloid inspired Golden Reel running in a figure eight from the 

23rd floor between the resort’s two hotel towers, rising 130 meters (428 

feet) above Cotai. The 17 cabs, boarded as the wheel keeps rolling, can 

each accommodate up to 10 riders. The 15 minute ride provides bird’seye 

views of Cotai, Macau International Airport and Hengqin. 

Batman Dark Flight begins with a tour of Wayne Industries 

“The resort has invested hundreds of 

millions of dollars in entertainment 

features, headlined by a reported US$70 

million for The Audition, a short film 

starring Academy Award winners Robert 

De Niro, Leonardo DiCaprio, director 

Martin Scorsese – all of whom attended 

the resort opening for the film’s debut – 

and Brad Pitt.” 

8 



Cover Story 

that’s interrupted by an attack from Batman’s arch enemy, The 

Joker. According to the ride’s story line, the attack requires guests’ 

evacuation to the Batcave via the 72 seat 4D flight simulator that 

swoops and dives through Gotham City as Batman fights super 

villains attacking the flight and population below. The seven minute 

simulation segment features moving seats and special effects that 

heighten the feel of flying. 

The House of Magic is set to vie with Batman for Studio City’s star 

billing. Illusionist Franz Harary, whose global credits include working 

in mainland China since 1994, conceived the complex with four 

performance venues offering three shows daily, four on weekends. 

Beginning in a steam punk drawing room, different magicians 

perform in distinct styles at each stop over 90 minutes, culminating 

with Mr Harary’s resident Mega Magic show. That theater’s massive 

video screen backdrop is as extraordinary as the tricks on stage. The 

complex extends to Shanghai Magic, offering fine dining in Victorian 

décor, highlighting that era’s fascination with mechanical curiosities 

that seemed magical at the time. 

Warner Bros Fun Zone focuses on children with rides and other 

attractions based on the Warner Brothers stable that includes DC 

Comics, Hanna-Barbera and Looney Tunes. Physical and interactive 

activities are designed for toddlers to teens, with opportunities for 

the entire family to participate and even compete in some challenges, 

such as the Hypercade, where riders aim their blasters at 3D targets 

“We steered away from VIP gaming tables 

a long time ago. Since our IPO [on the US 

NASDAQ exchange in 2006] we believed mass 

tables would be leading the Macau market,” 

Mr Ho explains. “At 250 tables, it was a nobrainer 

for us” to forgo VIP gaming. 

Big names, 

small film 

The stars came out for Studio City’s opening night 

premiere of The Audition, Academy Award winning director Martin 

Scorsese’s “dream state” short film. The 16 minute movie features 

two of Mr Scorsese’s frequent collaborators, Oscar winner Robert De 

Niro and Leonardo DiCaprio, plus Brad Pitt, the only one of the stars 

to miss the highly anticipated and relentlessly promoted film’s debut. 

It’s the first time those three Hollywood leading men have appeared 

in the same film. 

Melco Crown Co-Chairmen Lawrence Ho and James Packer 

executive produced The Audition at a reported cost of US$70 million 

or $4.4 million per minute. Mr Packer, who says his favorite movie 

is Mr Scorsese’s Casino, starring Mr De Niro, credits Mr Ho with 

suggesting “what better to introduce a movie-themed integrated 

resort” than a movie. Mr Packer enlisted his RatPac Entertainment 

partner, Hollywood veteran Bret Ratner to produce the film and calls 

it, “the best 15 minutes of short content ever made.” 

The Audition opens at the entrance of Melco Crown’s City of Dreams 

Manila, and the film’s trailer was released to coincide with that resort’s 

debut in February. Mr De Niro and Mr DiCaprio arrive and learn they’re 

to vie for the same role in Mr Scorsese’s film about a casino mogul. The 

action then moves to Studio City Macau where the casino serves as a 

backdrop, and the three men dine. Promotion of the resorts is decidedly 

subtle, and the properties’ names are not in the script. 

Mr Pitt enters for what Mr Scorsese calls the film’s “big finish” 

in Japan. The Tokyo outdoor dining street setting has a biomorphic 

building lurking in the background. That could represent Melco 

Crown’s design proposal for an integrated resort in Japan, where 

casino legalization seemed imminent 18 months ago but has not 

progressed. Viewers may not find that the only disappointment in 

the film. 

Perhaps inspired by The Audition, Mr Scorsese is currently 

directing another Macau related film, Silence, about 17th century 

Catholic missionaries from the then-Portuguese outpost being 

martyred in Japan. But rather than shooting on location in the 

UNESCO World Heritage area, the filmmakers opted to recreate 

1640s Macau in Taiwan. 

10 


Cover Story 

to help characters from Tweety Pie to the Green Lantern overcome 

foes and outscore fellow riders. The 40,000 square foot fun zone 

on four levels also features a diner with character themed meals at 

family friendly prices and a pair of party rooms for Looney Tunes or 

DC superhero styled children’s events. (No bachelor or bachelorette 

parties, management says.) 

Although they’re primarily intended as crowd pullers, Melco Crown 

hopes to get some return on its entertainment investments. The 

Golden Reel is priced at MOP$100 (US$12.50) for adults, MOP$80 

for children up to 12 and MOP$85 for Macau residents and seniors 60 

and older. Batman Dark flight costs MOP$150 for adults, MOP$120 

for children and MOP$125 for residents and seniors. House of Magic 

tickets run MOP$400 for adults, MOP$320 for children and MOP$340 

for Macau residents, with VIP treatment available in all categories 

at a 50% premium. Two hours in the Warner Bros Fun Zone costs 

MOP$200 for an adult and child and MOP$340 for two adults and 

two children. An adult must accompany children under eight. Hotel 

packages include the Golden Reel and Batman as freebies, but the 

House of Magic comes at a MOP$700 premium for two. 

INSTANT EARNINGS 

Despite the attractions’ revenue generating potential, Morgan 

Stanley Research warns that they are likely to be a drag on Studio 

City’s margins. The brokerage says that will be offset by the resort’s 

higher margin mass market gaming. Analysts Praveen Choudhary, 

Alex Poon and Thomas Allen suggest that Studio City will be accretive 

for Melco Crown’s fourth quarter and drive 30% EBITDA growth for 

the company in 2016. They expect Studio City to generate US$348 

million in EBITDA next year, based on 3% growth in gaming revenue 

for the market overall and 21% growth of Melco Crown from their 

respective third quarter levels. 

But the Morgan Stanley report cautions that if new supply fails 

to drive demand – it notes that Galaxy Macau’s Phase 2 opening in 

May has not materially boosted the market’s gaming revenue – the 

result could be price wars, promotion overspending and margin 

pressure. Credit Suisse analysts Kenneth Fong and Isis Wong, who 

turned positive in July and bullish last month, observe that Melco 

Crown is unlikely to use a marketing strategy that would hurt 100% 

owned City of Dreams to benefit 60% owned Studio City. Credit 

Suisse estimates that Cotai’s new casinos will break even if there’s 

1.5% gaming market revenue growth and a 15% return on invested 

capital with 4% growth, though those calculations don’t factor Studio 

City as an all mass market casino. 

Melco Crown is positioning Studio City as a mass market 

property, while City of Dreams remains focused on premium mass. 

One indication of the difference is the classification of both Studio 

City hotel towers as four star facilities. However Mr Ho says the 

hotels, “for international standards, are beyond five star,” and the four 

“Although they’re 

primarily intended 

as crowd pullers, 

Melco Crown hopes 

to get some return 

on its entertainment 

investments. The Golden 

Reel is priced at MOP$100 

(US$12.50) for adults, 

MOP$80 for children 

up to 12 and MOP$85 

for Macau residents and 

seniors 60 and older.” 


Cover Story 

“We hope Studio City will be a catalyst to turn the market around,” Mr Ho says, 

while downplaying the current long running gaming revenue contraction. “When 

you invest $3.2 billion, you’re looking at the next ten years.” 

star designation resulted from technicalities in Macau government 

regulations. The all-suite Star Tower has 602 keys ranging from 

Star Premier Kings at 65 square meters to the Star Grand Suite 

at 185 square meters. All Star Tower rooms feature a 55 inch LCD 

high definition television and Blu-Ray DVD player, coffee machine, 

rain shower and separate bathtub. Room packages with breakfast, 

Batman and Golden Reel tickets for two start at MOP$1,698 for 

weeknights and MOP$1,848 for weekends. The Celebrity Tower with 

nearly 1,000 keys is reserved for tour groups with smaller rooms and 

fewer amenities, but still comfortable. 

Hotel guests have access to Studio City’s indoor and outdoor 

pools, the latter with a white sand beach. The outdoor deck on level 

three also offers RiverScape, a three route tube floating ride. The 

Aqua Play children’s pool has a trio of waterslides. Each tower has a 

fitness center and there’s a beauty salon and Zensa Spa with vitally 

pools, saunas, steam and snow rooms. 

On the ground floor, The Boulevard at Studio City’s 65 retail 

shops ring the casino and link the hotel towers. Run by Taubman 

Asia, The Boulevard skews heavily toward global luxury brands and 

fashion-forward labels. Studio City boasts Macau’s first outlets for 

clothier Balmain and British outerwear specialist Bellstaff, as well as 

Asia Pacific’s largest Tom Ford. The resort also caters to the trendy 

set with East Asia’s first Pacha, the renowned Ibiza nightclub that’s 

spread to six continents. 

Studio City has more than 30 food and beverage outlets that 

run the gamut from world renowned chefs to out of this world fast 

food at Cosmos Food Station with holographic projections of deep 

space. Signature restaurants include Michelin starred chef Tam Kwok 

Fung’s Pearl Dragon presenting provincial Chinese dishes, Trattoria 

Il Mulino bringing chef Michele Mazza’s casual chic Italian from 

its New York flagship and chef Hide Yamamoto’s eponymous four 

concept Japanese restaurant with fish flown in from Tokyo’s Tsukji 

market for sushi, plus teppanyaki, robata and ramen. Pierre Herme, 

known as the Picasso of Pastry, has brought his renowned macaroons 

and chocolates to The Boulevard. Next year, Hawaiian celebrity chef 

Alan Wong and chef Ducasse will join the cast. At the casual end and 

in line with Macau authorities’ desire that IRs support the city’s small 

and medium enterprises, Macau Gourmet Walk features homegrown 

favorites such as pork chop buns and egg tarts, along with outlets 

of bakeries Yeng Kee and Choi Heong Yuen producing signature 

souvenir sweets. 

Six years ago, Melco Crown opened City of Dreams during Macau’s 

last dark period of pessimism and stalled growth, triggered by a 

combination of economic factors and government policies. Perhaps 

coincidentally, City of Dream’s opening marked the bottom of the 

market and Macau’s growth resumed at a breakneck pace for nearly five 

years. Melco Crown opens Studio City as some see signs of stabilization 

in the mass gaming market amid government policy changes and 

promises to help Macau reverse its world worst GDP decline. 

“We hope Studio City will be a catalyst to turn the market 

around,” Mr Ho says, while downplaying the current long running 

gaming revenue contraction. “When you invest $3.2 billion, you’re 

looking at the next ten years.” Nevertheless, it’s a good bet that 

Melco Crown would like to see history repeat itself, as it so often 

does in the movies, and have Studio City write a happy ending for 

Macau’s slump. 

12 



Cover Story 

Studio City 

Already a long running drama 

Last month finally saw the opening of 

Studio City, ending a 14-year saga with 

a slew of twists and turns worthy of the 

best Hollywood psycho-thriller. 

By Muhammad Cohen 

Even before the curtain went up last month, Studio City 

had provided plenty of action, adventure and mystery. 

This hugely anticipated production, a decade and a half 

in the making, has seen an A-list cast come and go and, 

in some cases, come back. Throughout the canceled 

shoots, rehearsals, rewrites and retakes, Studio City has been viewed 

as pivotal to Cotai, perhaps never more so than now amid Macau’s 

drawn out doldrums. 

The Studio City story begins in 2001, when eSun Holdings 

secured 13.1 hectares (32.3 acres) of land for HK$300 million 

(US$38.7 million) from the Macau government to build a media 

training facility, suitable for film and broadcast production as well 

as teaching. eSun is an investment arm of Hong Kong conglomerate 

Lai Sun Group, headed by Peter Lam, specializing in entertainment 

operations and property development. Another Lai Sun subsidiary, 

Media Asia Group, then known as Media Asia Entertainment, 

remains a leading producer and distributor of Chinese language 

film and television programs. Through various related companies, 

Lai Sun also produces music and live entertainment. Lai Sun was 

founded as a garment producer – its brands include Crocodile – and 

has extensive mainland interests. Investing in Macau in those early 

days of Chinese administration was likely viewed favorably by Beijing. 

Persuading eSun to jumpstart the creation of a film industry 

was a big get for local authorities. In addition to fostering economic 

diversification, an elusive but much desired goal even in 2001, the 

Macau government had convinced eSun to build its film school in 

that unwanted swampy landfill between Coloane and Taipa called 

Cotai, where (separate) plans for semiconductor plants and housing 

estates had previously fallen through. 

14 


Cover Story 

NEW MACAU, NEW PLAN 

eSun’s original plan was firmly rooted in the old Macau. As the new 

Macau burst out under gaming liberalization Cotai found a new 

purpose and eSun wanted to be part of it. Easing of travel restrictions 

after the 2003 SARS outbreak under the Individual Visitor Scheme 

allowed millions more mainland Chinese to visit Macau more easily, 

then the opening of Sands Macao in 2004 showed that gaming 

liberalization had legs. 

That drove eSun back to the drawing board to revise its plan 

for the Cotai site, adding hotel, retail and casino components to 

the film and television facilities. Macau authorities approved the 

revised plan in 2005, and this expanded version was slated to open 

in 2009. eSun called the new resort Macau Studio City, “where 

Cotai begins,” a nod to its location beside the Lotus Bridge border 

crossing from Hengqin Island. This was just down the block from 

the then putative site of Venetian Macao, on what Sheldon Adelson 

envisioned as the Cotai Strip, though it would take the better part of 

a decade for the corridor to even remotely resemble the bright lights 

of the Las Vegas version. Macau’s light rail system, then expected to 

begin running around the time of the 2009 opening was expected 

to stop in front of Studio City. 

eSun began looking for partners to bring star power to the plan. 

Shanghai Tang founder and Lai Sun board member David Tang 

agreed to create a hotel based on his retro Chinese fashion label’s 

signature styles. Ritz Carlton, Starwood’s W brand and Marriott 

signed on to provide the rest of a planned 2,000 hotel rooms. Hugh 

Hefner’s Playboy Enterprises agreed to create its first overseas 

Playboy Mansion, a combination casino, lounge and nightclub, 

aiming to recapture the magic of its Playboy Casino in London that 

Peter Lam 

was reputed to be the world’s most profitable gaming establishment 

during the 1970s. For the retail component, shopping mall developer 

Taubman paid US$55 million to own 25% of the envisioned 86,000 

square meter (920,000 square foot) mall and manage it. 

KEEPING CONTROL 

For the gaming component, eSun didn’t want to make a deal 

directly with a casino concessionaire, according to project 

insiders, fearing that would mean losing control of the project. 

Instead, eSun sold 40% of Macau Studio City, including the right 

to operate the casino, for US$200 million to New Cotai, majority 

David Tang 


Cover Story 

David Friedman 

owned by US hedge fund Silver Point Capital, with Oaktree 

Capital Management, another US hedge fund, holding a 

minority stake. David Friedman, former general counsel for 

Las Vegas Sands, who formed New Cotai with other LVS 

alumni, brought these investors together. Friedman provided 

its strategic vision, while the hedge funds were just looking 

for returns. Melco Crown would later agree to have the casino 

operate under its gaming concession. 

With these cast members and an estimated budget of 

HK$16 billion (US$2.1 billion), Macau Studio City would have 

likely been the second integrated resort in Cotai and the first 

with international hotel brands. The project broke ground on 

January 10, 2007, and eSun broke the project into another 

piece, selling 20% to Singapore’s CapitaLand for US$100 

million. Lai Sun had previously partnered with CapitaLand to 

redevelop Hong Kong’s Furama Hotel site. The new investor 

gave Studio City four equity holding management groups – 

though CapitaLand worked in tandem with eSun – as it sought 

to finance the project. 

eSun wanted to go to banks, newly keen to lend to 

casino projects, to borrow the estimated $1.5 billion needed 

to complete Studio City. New Cotai said it could finance its 

portion without loans, employing hedge fund capital. But 

eSun found it couldn’t borrow without the cash flow from the 

casino, which belonged to New Cotai. eSun tried to restructure 

the deal or buy out New Cotai, but sources say New Cotai 

contended its 40% of Studio City with the casino was worth 

more than eSun’s 60% without it. The two sides couldn’t reach 

a deal, and their agreement reportedly didn’t have a deadlock 

provision to resolve disputes. Then came the global financial 

slump of 2008-09 and Macau’s slump, drying up lending 

interest and leaving the project at a standstill. 

Defections began. Taubman dropped out of the project in 

August 2009 and Playboy turned tail that November. Hotel 

partners exercised opt-out clauses as the project languished. 

Macau’s then-Chief Executive Edmund Ho summoned the 

parties for a meeting in September 2009, hoping to get the 

project moving before he left office that December. The parties 

resumed negotiations, their first in a year according to one 

16 


Cover Story 

Hugh Hefner Lawrence Ho James Packer 

source, but couldn’t reach an agreement. So eSun sued New 

Cotai for HK$689 million in damages. New Cotai filed its own 

lawsuit. The plot sat idle, a handful of pilings and a perimeter 

fence the only evidence of what had been the most anticipated 

project in Cotai. 

THE HERO ENTERS 

Meanwhile Cotai blossomed. The openings of Venetian in 2007, 

Four Seasons a year later, Melco Crown’s City of Dreams in 2009 

and Galaxy Macau in 2011 each tipped the center of Macau’s 

gaming gravity away from the peninsula toward Cotai. By then, 

each of the six gaming concessionaires still had a resort sized 

plot in Cotai promised to them, except Melco Crown, which had 

a prior relationship with the Studio City project. It seemed like 

a natural fit to break the stalemate and in June 2011 it finally 

did. Melco Crown agreed to pay US$369 million to eSun and 

CapitaLand for their 60% of the project. The deal also included 

an additional US$100 million payment to New Cotai in three 

installments, thought to ensure its cooperation, remove its 

control of casino cash flow and cement Melco Crown’s leading 

role in the development. 

Observers hailed the deal as a coup for Melco Crown and 

its Co-Chairman and CEO Lawrence Ho. Obtaining Studio City 

gave to Melco Crown, the only operator without a casino on 

the peninsula, critical mass with two properties in Cotai, plus 

Altira at the tip of Taipa facing the peninsula. Industry insiders 

said the acquisition brought Lawrence Ho, then 34, out of 

the shadow of his father, legendary casino mogul Stanley Ho, 

establishing the younger Mr Ho’s chops as a dealmaker in his 

own right. 

There was yet more drama in the story. Even though Mr 

Ho claimed the deal had the “government’s blessing,” Macau 

officials reacted coolly, repeatedly stating in the months following 

the acquisition that Studio City did not have approval for gaming. 

In early 2012, Macau authorities published a land contract for 

the plot that did not include a casino. But in September 2012, 

then-Secretary for Economy and Finance Francis Tam said the 

project was eligible for a casino. Then came the added drama of 

how many gaming tables the project, built to accommodate 400 

tables, would receive. It wasn’t until mid-October, barely a week 

before the opening, that the government announced its grant of 

250 tables to Studio City, 200 immediately and 50 in January. 

For its rewrite of the Studio City script, Melco Crown kept the 

film theme and production facilities, found new cast members, 

including Warner Brothers, and brought back Taubman to run the 

retail portion of the project. Finally, after more than a decade of 

behind-the-scenes drama, Studio City has taken its place center 

stage with the spotlight burning bright on it as Macau looks to 

turn around 17 months of declining casino revenue. 

Editor At Large Muhammad Cohen also blogs for Forbes on gaming 

throughout Asia and wrote Hong Kong On Air, a novel set during the 1997 

handover about TV news, love, betrayal, high finance and cheap lingerie. 


Feature 

MGS: 

Will it live up 

to the hype? 

Over the last few months our inboxes have been 

bombarded (some might even say spammed) 

with almost daily emails from the Macao Gaming 

Show — countdowns, announcements of new 

attractions, references to Beijing’s One Belt One 

Road concept and an array of newsletters in 

various formats. There’s no doubt we all know 

MGS will take place from November 17 to 19 — 

but will it live up to the hype? 

This month sees the third annual instalment of 

the Macao Gaming Show at the Venetian Macao. 

No longer does MGS have the excuse of being 

the new kid on the block, it now needs to deliver 

value for exhibitors and attendees alike – and take 

a stand in the red corner in the ongoing “show war” with G2E 

Asia. But can MGS 2015 cut the mustard in the “new normal” 

of Macau? 

Let’s take a look at what MGS will be offering in 2015. 

SUMMIT 

Notably MGS has renamed its conference, moving away from 

the “Macao Gaming Summit” moniker to re-invent itself 

as “The Macau Tourism and Culture Summit with Gaming 

Topics.” Quite the mouthful! No doubt this represents 

compliance with the combined push by Macau and Beijing 

away from gaming and toward diversification, but does this 

muddy the brand? There’s a couple of keynote talks on the 

arguably vague OBOR concept but then it’s straight back into 

the usual litany of academics, lawyers and journalists talking 

about gaming markets outside Macau. 

EXHIBITION 

MGS claimed a head count of 11,987 last year – which is a 

number that actually eclipses the foot traffic of G2E Asia. 

But this was not borne out by the anecdotes IAG heard 

from exhibitors and visitors alike. In fact low traffic on the 

floor of the exhibition has been MGS’ Achilles heel in its 

first two years. 

18 


Feature 

“The heart and soul of any gaming show 

are the networking opportunities it 

provides. In fact many established 

industry players argue this is where the 

real value of attending a show lies.” 

At the time of writing we see just under 100 named exhibitors 

(and admittedly a number of “reserved” booths) on the show’s 

2015 floor plan on its website, www.macaogamingshow.com. 

This is a far cry from the 146 exhibitors MGS said it had in 2014. 

Let’s hope there’s a late run on booths! 

This year we’re promised new and exciting elements such 

as the “Boom and Fire Zone” which is apparently an explosive 

area where first time exhibitors will be showing their wares 

in “individual and inspiring ways”. Will such elements be the 

boost MGS needs to see thronging crowds at the 2015 show? 

Watch this space. 

WHERE ARE THE JUNKETS? 

There’s no doubt MGS is perceived as the local “Chinese” show 

and G2E as the “American” show, so the strong support we saw 

from Macau’s junket industry for the inaugural MGS in 2013 was 

expected. This support was almost matched in 2014. But unless 

you’ve been hiding under a rock for the last 12 months you can’t 

but help notice the absolute decimation of Macau’s VIP room 

industry over the last 12 months – with business down as much 

as 60% for some junket operators, some rooms closing and the 

high profile Dore scandal a big news item. Couple that with the 

fact that a junket business doesn’t really have much to exhibit 

at a trade show anyway and it’s unsurprising to see most of the 

junkets giving MGS 2015 a miss. But we do notice that Macau’s 

arguably top junket, Suncity, has a prominent booth at the show. 

NETWORKING 

The heart and soul of any gaming show are the networking 

opportunities it provides. In fact many established industry 

players argue this is where the real value of attending a show 

lies. It’s common to hear trade show conferences written off as 

passé and the show floor characterized as changing little from 

year to year but since everyone is in town at the same time trade 

shows create an excellent opportunity to catch up with important 

industry contacts. The MGS Official Networking Party will take 

place at Portofino restaurant on November 17 from 6pm to 9pm 

– but we’d like to see more opportunities during MSG (and G2E 

Asia for that matter) for industry people to catch up over a drink 

and talk shop. Many great business ideas germinate during such 

“lubricated” sessions. 

“We here at IAG feel it makes sense that 

MGS ultimately should become the winner 

of this war, but they have much to learn 

from G2E while that battle plays out.” 

SHOW WARS 

The reality of the situation is that no one really wants the two 

gaming shows Macau currently hosts – MGS in November and 

G2E Asia in May. Inevitably, there has to be a winner and there 

has to be a loser allowing us all to consolidate our efforts into one 

big show each year. We here at IAG feel it makes sense that MGS 

ultimately should become the winner of this war, but they have 

much to learn from G2E while that battle plays out. Let’s adopt 

a wait and see approach, give the home-grown show the benefit 

of the doubt and hope they deliver something of value during the 

tougher times the Macau industry is currently experiencing. 


Industry 

profile 

Jim 

Every edition IAG profiles one the Asian gaming 

industry’s key players. Jim Preston is relatively new 

to Macau having arrived early this year, but he is 

no stranger to the gaming industry having plied his 

trade at Crown Melbourne for decades. Jim took 

some time out for a Q & A with IAG. 

Inside Asian Gaming: Jim, let’s start at the 

beginning. Please tell us a little of your 

history. 

Jim Preston: I was born in Melbourne where 

I lived all my life until I came to Macau this 

year. My ancestry is English and has been 

traced back to the original First Fleet that 

settled in Australia way back in 1788. My 

ancestors were convicts, Nathaniel Lucas’ 

crime was that he allegedly stole some 

linen, although he said he was innocent 

and his wife-to-be Olivia Gascoigne stole 

some money. They eventually would have 

13 children. Today there are something like 

30,000 descendants from Nathaniel and 

Olivia which is quite amazing. 

IAG: You spent many years at Crown 

Melbourne. How did your career develop 

there? 

JP: I started as a Blackjack dealer at Crown 

Melbourne when it opened in 1994. I 

eventually dealt all the major games and then 

worked my way to Supervisor and then Pit 

Boss. I had various roles in the 20 years at 

Crown but my last role was Vice President 

of Customer and Commercial Development, 

which was a fantastic job and had me 

travelling the globe marketing the Aussie 

Millions. 

IAG: What about your time in poker? 

JP: When the Poker Room opened I started 

as a Seating Coordinator, known in the States 

as “the Brush” and was responsible for 

getting the poker games going and managing 

the list. The room opened with 21 tables but 

this doubled quickly when the poker boom 

took hold and the game grew massively in 

popularity. As the room got bigger, Crown 

decided they needed a dedicated Poker 

Room Manager. I applied and got the job 

working in this role for a year and was then 

promoted to VIP Player Manager, responsible 

for looking after three VIP rooms. I loved this 

role as I had a great team working for me 

and our goal was to ensure the players had 

fun. This is where my passion for customer 

service really developed, which lead to me 

being responsible for all the VIP players that 

visited Crown for the Aussie Millions Poker 

Tournament. I did this again in 2012 and 

was subsequently offered the role of Director 

of Poker, responsible for the entire poker 

operation. In this time the room continued to 

grow and the Aussie Millions got bigger and 

better. In my time in this role I also managed 

to secure and deliver two World Series of 

Poker Asia Pacific series, something that I 

was very proud to be a part of. 

IAG: There are a lot of famous names in 

poker. Who have you met through your 

time in poker? 

JP: I have had the privilege of meeting all 

the biggest stars in poker like Phil Ivey, 

Daniel Negreanu, Phil Helmuth and a lot 

of celebrities too. I consider myself very 

fortunate and some of these people I now 

regard as close friends. 

IAG: Any memorable stories you would like 

to share? 

JP: My favorite story is meeting the US 

Presidents Cup team. I am a golf tragic 

and to have the opportunity to meet Tiger 

Woods, Phil Mickelson, Fred Couples and the 

rest of the US team was one of the greatest 

20 


Industry 

profile 


Industry 

profile 

moments of my life. I need to thank Joe 

Hachem for that as the US team wanted 

to have a BBQ with Joe and part of my role 

was to look after Joe as he was our Poker 

Ambassador and I got to tag along that night. 

Another great story is the night I hosted 

a function and I gave away $1 million dollars 

to one lucky customer. I will keep it brief but 

basically the customer won this opportunity 

after being selected out of 600 people in the 

audience. He had to choose one number on 

a roulette table and if the dealer spun that 

number he would win a million dollars. He 

chose 17 and the dealer spun 17! Amazing, 

the guy just won a million bucks! It was an 

incredible moment and it changed his life 

forever. 

IAG: Why did you and your wife Margaret 

decide to leave Melbourne and come to 

Macau? 

JP: Ever since our friends came in 2005, we 

had been considering the move but we had 

commitments back home. Last year we felt 

the timing was right so we started looking 

into job opportunities here. In November, 

Margaret was offered the role as Vice 

President of Premium Mass and Jinmen at 

Galaxy Macau and headed here in January 

this year. I stayed at Crown to oversee the 

2015 Aussie Millions and made my way here 

in late February. 

IAG: What do you see as the major 

differences between the Australian and 

Macau gaming industries? 

JP: The short answer is volume and price point. 

Even though numbers are down in Macau the 

volumes I see at the properties are staggering 

and the price points in Macau compared to 

casinos in Australia are a lot higher. 

IAG: How has the transition been compared 

to what you expected? 

JP: Surprisingly easy as we have a lot of good 

friends here who have been very supportive. 

It’s amazing to think that I look outside my 

window in our apartment and across the 

water is China! 

IAG: As you were looking for a new role 

here in Macau did you feel typecast as a 

poker guy? 

JP: I could say I was a bit of a victim of my 

own success but my last role at Crown was 

Vice President of Customer and Commercial 

Development, so I was responsible for 

“Working with 

TCSJOHNHUXLEY, I’ll have 

opportunities to develop my 

skills, take on interesting 

projects and work with people 

I can really learn from. Some of 

the most innovative thinkers 

in the industry work here and 

that’s a big reason why I want 

to build a career here.” 

growing Crown’s major events through 

increased visitation from VIP customers 

but also increasing revenue through 

sponsorship, so I had little to do with the 

day-to-day running of poker. My role was 

about building relationships and marketing 

events but people still definitely associated 

me as a “poker guy”. 

IAG: Tell us a bit about your new job. 

JP: I have started with TCSJOHNHUXLEY 

as Director of Sales throughout Asia. It’s 

a great opportunity and one I am very 

thankful for. The company is regarded 

as the world’s leading manufacturer and 

supplier of end-to-end live gaming solutions 

and services, with a diverse portfolio of 

traditional and technology-based products. 

The new technology on the Gaming Floor 

Live platform is particularly exciting as we 

are able to offer operators access to data 

and information across all their tables, which 

drives both revenue and efficiencies. 

IAG: What’s it like working for a supplier 

after all these years working for an 

operator? 

JP: Based on my last role, it’s very similar. 

It’s all about relationships. As a supplier, 

our business is driven by our clients so 

it’s important we listen and understand 

what they are trying to achieve and 

develop products and services accordingly. 

Flexibility is key and TCSJOHNHUXLEY is 

well positioned to fulfill this criteria. We’re 

a privately owned and operated company 

with vast experience, a proven track record 

and the ability to deliver. 

IAG: No doubt your job means being 

on the road. How is it being on the road 

versus stationed at a fixed property? 

JP: My last job involved travel, so I am 

used to it. My new role involves me being 

out and about, meeting customers and 

visiting casinos, so I am definitely not tied 

to my desk, which is a good thing. 

IAG: Obviously Macau’s gone through a 

major downturn in the last 18 months. 

What’s your view on this? 

JP: Long term I think Macau will benefit. 

The new properties that are opening 

have so much more to offer beyond 

gambling, for instance the Galaxy 

Macau property which has the world’s 

biggest wave pool and the lazy river, 

the Venetian with its shopping, canals 

and gondolas and Studio City with its 

rides. Also there is a phenomenal range 

of restaurants and cuisines so Macau 

residents and visitors are definitely 

spoilt for choice. 

From a gaming perspective, operators 

are having to increase their product 

offering to appeal to a wider market. This 

is a great opportunity for us as we have a 

wide range of products and services but 

we are also able to develop products to 

suit our customer’s unique requirements. 

IAG: Where do you see yourself in five to 

ten years? 

JP: I am driven to be the best at what I do. 

Working with TCSJOHNHUXLEY, I’ll have 

opportunities to develop my skills, take on 

interesting projects and work with people 

I can really learn from. Some of the most 

innovative thinkers in the industry work 

here and that’s a big reason why I want to 

build a career here. 

22 



Tech Talk 

Observation 

Deck 

Security and surveillance suppliers from around the world provide their 

views on how casinos can better and more efficiently protect and serve both 

operations and players. 

CASE STUDY 1 

SECURITY WITH SERVICE 

Hollywood Casino Aurora’s desire to be a customer service 

leader extends to its surveillance systems. 

Illinois-based Hollywood Casino Aurora has upgraded 

its surveillance system with an integrated solution from 

Synectics – a decision driven as much by customer service 

as by security requirements. Powered by Synectics’ Synergy 

command and control platform, the new system will provide 

24/7 surveillance for the 53,000-square-foot Penn Gaming casino 

located in the Chicago suburbs. 

With over 1,100 slots, almost 40 tables, including a live poker 

room to monitor – in addition to the property’s restaurants and 

hospitality areas – detecting and investigating theft, fraud and 

security threats is a priority for the surveillance team. But for Rob 

Saucedo, Director of Surveillance for Hollywood Casino Aurora, 

one of the biggest reasons for upgrading the current system is 

being able to support repeat business growth by enhancing 

customer experience. 

“On average, around 3,000 guests come through our doors every 

day, the majority of which live locally – we are not what you might 

term a vacation destination casino,” Saucedo said. “Repeat business 

is key and that means doing everything we can to offer a high-quality 

customer experience in every aspect of our operations. There are 

several ways the new surveillance system is helping us do this.” 

Utilizing Synectics’ e1600 H.264 encoders, high quality footage 

from the site’s 500 plus analogue cameras is converted to digital 

video. With Synergy, operators can then ‘live view,’ control, record 

and review this footage on the IP monitor walls in the surveillance 

24 


Tech Talk 

control room, and also set up customized alerts to automatically 

detect specific incident scenarios. 

“We’ve been operating a purely DVR system for the past 10 years 

or so,” Saucedo said. “It facilitated high-quality image capture but 

had its drawbacks – for example, when reviewing any incidents we 

could only proceed one camera at a time. With the new system, we 

can review multiple cameras in real time, and up to 24x original 

speed. Combined with the intuitive and user-friendly interface, this 

makes incident investigation a vastly simpler and speedier process. 

In turn, this enables us to deal with customer service issues far 

more efficiently – ‘credit theft’ complaints being a key area. Playing 

credits that another guest has left on a machine is effectively theft 

and something we take very seriously. A guest with credits still to 

play may have moved away to take a call, fetch a drink or visit the 

restroom. For them to return and find another player has essentially 

spent their money is not acceptable. 

“The surveillance system upgrade ensures that our team of 

operators is able to investigate so quickly that we can often identify 

the culprit while they are still on the premises and retrieve any of 

the taken funds,” Saucedo added. “With multiple levels of failover 

protection, including Hot Swap and RAID redundancy for all recorded 

footage, the reassurance is also there that we will always have the 

data at our finger tips to investigate any claim, even in the event of 

any network failure. These are benefits of real value to us and our 

customer base.” 

MANAGEMENT TOOL 

The surveillance upgrade is also helping Hollywood Casino Aurora 

with operational strategy. 

“People often think gaming surveillance is entirely about fraud 

or theft detection,” Saucedo said. “But actually it can be a vital 

management tool. With our solution for example, we are able to 

detect scenarios such as cage lines exceeding certain lengths. This 

enables us to respond by informing management so that staffing 

levels can be adjusted to better serve our guests. Also, through 

Synergy’s in-built analytics and reporting functionality, we are able to 

easily look for trends to help inform future staff in stock or security 

decisions. It all supports our goal to deliver the best experience 

possible for our guests.” 

While the surveillance upgrade is already helping Hollywood 

Casino Aurora realize many immediate benefits a crucial 

consideration during the specific implementation process was 

system longevity – the ability to adopt emerging technologies 

easily and organically. The Hollywood Casino Aurora upgrade 

serves two purposes; an immediate step change in capability and 

usability, and a step towards future expansion and enhancement. 

The transition was seamless and by implementing the new 

Synergy system in tandem with Aurora’s existing DVR-based 

operations there was minimal disruption to operations and zero 

downtime. The property now has a solution that meets existing 

needs, with storage capacity and a system structure that will easily 

accommodate further digital migration. 

“We have already begun introducing IP camera technology – 

without doubt this is the future,” Saucedo said. “But navigating 

away from analog to entirely IP is not a feasible single-step process. 

Synergy’s open platform architecture means that we can migrate 

gradually, as time and budget permits. It also means that we will 

easily be able to introduce more sophisticated data integrations, for 

example to point of sale and player systems.” 

Hollywood Casino Aurora is one of 17 Penn Gaming properties to 

adopt a Synectics surveillance system, and one of over 100 gaming 

properties worldwide. 

“… for Rob 

Saucedo, Director 

of Surveillance for 

Hollywood Casino 

Aurora, one of the 

biggest reasons 

for upgrading the 

current system 

is being able to 

support repeat 

business growth by 

enhancing customer 

experience.” 


Tech Talk 

“As a result of the implementation of a 

system of this type … the amount of time it 

takes to identify someone in the casino has 

been reduced to less than half, even at short 

notice and on days of peak attendance.” 

CASE STUDY 2 

I’VE JUST SEEN A FACE … 

Facial recognition improves casino security at Casino Gran 

Madrid–Colón. 

The work of physiognomists at Casino Gran Madrid-Colón is 

critical to providing proper monitoring of casino gaming and, by 

extension, to overall casino security. Each day, it is necessary to 

identify, on average, somewhere between five and 25 individuals 

for any number of reasons. Reducing turnaround time for personal 

identification in the casino has been a frequent request of the 

security personnel and managers of such businesses for a number 

of years. 

Today, this demand can now be met – as a result of the use of 

facial recognition systems incorporating video analysis. Traditionally, 

to establish concrete identification in a casino took considerable time 

while control center operators reviewed hours of recorded video. 

Based on the input of Sensorvideo, an Axis Communications partner 

and company known for its experience in the casino industry, a facial 

recognition system by Herta Security was recommended for Casino 

Gran Madrid-Colón, a technology that would make it possible to 

reduce the time normally required for this complex task. 

FACIAL POLITICS 

Physiognomists play a critical role in casinos. In fact, until a 

relatively short while ago, it only required three parties to legally 

open a casino in Spain: a dealer, a cashier, and a physiognomist. 

They are, among other tasks, responsible for monitoring all gaming 

that takes place in a casino. Operations involving games with real 

money follow specific procedures defined down to the minutest 

detail. Non-adherence to these protocols can result in significant 

losses for the establishment. For example, a simple error in a chip 

count or accepting a late bet that results in a winner can create a 

serious economic problem. 

According to the Madrid Casino Gaming Regulations, in order 

to gain entry to gaming parlors, players must present identification 

such as a driver’s license or equivalent. A casino’s need for personal 

identification by physiognomists is essential. It is necessary to 

identify individuals not authorized for access, whether they have 

decided to put their name on the General Register of Gaming Access 

Bans or they were banned from gaming establishments pursuant to 

gaming regulations. 

There is also the need in this environment to identify the 

presence of VIP clients. Facial recognition technology has become 

a huge help in this respect with its ability to create multiple group 

lists. Facial recognition is one of the least invasive biometric 

technologies, as the data capture is performed by camera and 

in general there is no direct interaction with the subject. Herta’s 

BioSurveillance video surveillance solution detects multiple faces 

in real time enabling the management of subjects at any moment, 

and it also enables the facility to teach the system using direct 

video capture. 

The system installed in Casino Gran Madrid-Colón consists of 

three AXIS Q1604 Networked Cameras with capabilities specially 

designed for facial recognition, using wide dynamic range (WDR) 

technology that enables identification even under backlighting 

conditions or when bright light sources are in view. This server-based 

facial recognition system is fully integrated with the casino’s video 

surveillance setup. From the control center it provides direct facial 

view of the last individuals to have accessed the establishment and 

the ability to perform quick searches and other functions. Subjects 

can be entered into the system via photographs and/or recorded 

video – or in real time – and it even works properly in cases when only 

a partial view of the face is available, on subjects wearing eyeglasses 

and hats, and on faces at moderate angles. 

In the event that the security controls require follow-up – whether 

internally initiated based on observed behavior or at the request 

of other departments – reviews are conducted in accordance with 

internal protocols in order to ensure maximum transparency and 

security in all operations. 

Control of the gaming cameras is supervised by the physiognomists 

– who know the operation, rules, bets and payouts of every game and 

perform monitoring in order to ensure that everything is played out 

in accordance with the rules. In effect, their primary role is to assist 

the Gaming Department in reviewing recordings of the plays made at 

each gaming table, resolving any claims made by customers. 

TIMELY RESULTS 

Currently the reliability rate of facial recognition systems based on 

video analysis is higher than 95%. As a result of the implementation 

of a system of this type at Casino Gran Madrid-Colón, used to support 

the work of physiognomists, the amount of time it takes to identify 

someone in the casino has been reduced to less than half, even at 

short notice and on days of peak attendance. 

26 


Tech Talk 


Tech Talk 

CASE STUDY 3 

“The INNCOM system 

gathers guest room 

environmental device 

information and notifies 

property maintenance staff 

if there is a maintenance 

issue. This lets our engineers 

respond to possible 

maintenance issues often 

before guests notice them.” 

LOOKING SMART 

MGM Resorts International turns to Honeywell’s INNCOM 

technology to add safety and scale to its smart networks. 

MGM Resorts International is acknowledged as a leader in 

adopting and deploying hotel guest room technology. Its properties 

offer networked electronic locks for security, environmental controls 

for guest comfort, multiple entertainment options, refrigerated 

minibars for convenience, and other guest controls. But, MGM 

Resorts’ guests never see the robust network platform behind the 

scenes that powers the company’s tech leadership. 

“MGM Resorts International recognized early on that it wanted 

to interconnect and communicate with each of its thousands of 

guest rooms to ensure guest safety, convenience and comfort,” said 

Kevin J Fellows, Director of Enterprise Architecture, Media and Guest 

technology for MGM. “This required an intelligent device in each room 

linked to a total-property converged network platform to monitor 

in-room systems and collect environmental data. The challenge for 

MGM Resorts was property size and the overall scale of its multiproperty 

enterprise. Most of our hotels have more than 3,000 rooms. 

We evaluated several options and found that INNCOM was able to 

meet MGM Resorts’ large property converged network requirements. 

INNCOM’s Deep Mesh Network wirelessly connects thousands of 

property door locks, thermostat controls, minibars and other systems 

with one highly reliable, intelligent communications platform.” 

Fellows explained that INNCOM’s Deep Mesh Network is reliable 

for MGM Resorts’ large number of rooms and devices because of its 

built-in ‘intelligence.’ 

“The network takes standard ZigBee technology to a new level,” 

he said. “The Deep Mesh Network interconnects hundreds of wireless 

edge routers throughout each property to establish a redundant-process 

communication web. If a transmission from one room does not instantly 

reach our server, the network automatically retries through other router 

pathways.” This ‘multi-path’ broadcasting system design enables the 

Deep Mesh Network to create multiple data paths throughout the 

network. If one component drops out, the guest room data packet still 

reaches MGM Resorts’ central collection point via INNCOM’s network. 

This also eliminates the need to use cable to connect in-room devices. 

EMPHASIS ON THE GUEST 

Fellows noted that MGM Resorts’ use of a single INNCOM network at 

each property helps to optimize guest service and promotes efficiency 

in maintenance costs. “The Deep Mesh Network monitors the health 

of each room’s guest-facing environmental devices,” Fellows said. 

“The INNCOM system gathers guest room environmental device 

information and notifies property maintenance staff if there is a 

maintenance issue. This lets our engineers respond to possible 

maintenance issues often before guests notice them. If the problem 

is ongoing, we can take the room out of inventory so it can be made 

fully operational before another guest occupies it.” 

The Deep Mesh Network at MGM Resorts’ properties 

communicates with multiple thermostats, third-party electronic 

door lock systems and minibars and still has room for more devices. 

“INNCOM’s ability to work with third party tech providers simplifies 

our processes and enhances efficiency on infrastructure costs 

because we support only one network,” Fellows said. “MGM Resorts 

established the INNCOM Deep Mesh Network as its preferred 

standard platform for in-room technology based on its reliability 

and ability to scale to our largest properties. The platform currently 

supports more than 20,000 rooms and we are adding more.” 

MGM Resorts utilizes INNCOM in MGM Grand Las Vegas, The 

Mirage, Delano, Bellagio, and at MGM Macau in China. INNCOM 

installation is now underway at MGM Resorts’ Mandalay Bay. 

SECURE COMMUNICATIONS 

INNCOM securely sends environmental data to each property’s 

central system. “There are many point solutions that work for 

small properties; MGM Resorts’ requirement is larger, and secure 

communication to and from our rooms is essential,” Fellows said. 

“INNCOM uses a secure topology designed by MGM Resorts 

connecting guest rooms with MGM Resorts’ central INNCOM 

systems. The systems monitor room environmental data messages 

and pass the communications across our guest room network 

firewalls. Just as important, the Deep Mesh Network is scalable and 

easy to expand.” 

MGM Resorts also utilizes INNCOM’s guest room thermostats 

and Energy Management Systems (EMS) in many properties. 

“INNCOM’s EMS balances energy efficiency with guest comfort,” 

Fellows said. “Each of our hotels is different and the INNCOM 

system allows each building to maintain a unique set of operational 

parameters. The systems calculate optimum energy conservation 

and guest comfort.” 

The INNCOM thermostats are the communication hub in each 

guest room. They collect data from the door locks, minibars, and 

other systems and communicate with the edge routers within each 

property’s Deep Mesh Network. 

28 



Tech Talk 

“There are many camera solutions 

that offer businesses the ability 

to gather valuable business 

intelligence data through the use 

of cameras equipped with analytics 

capabilities … monitoring and 

tracking customer and/or traffic 

patterns, performance of retail 

kiosks, facial recognition, 

over capacity detection 

and so much more.” 

CASE STUDY 4 

BUSINESS FIRST 

Not all surveillance is the same … here is some advice for 

gaming operators looking to better secure retail businesses. 

Video surveillance systems have come a long way from the 

traditional systems of years past. As technology continues 

to evolve video surveillance solutions are becoming more 

affordable for businesses of all sizes, from big box retailers and 

large corporate campuses to smaller mom and pop operations. 

According to statistics from the National Retail Security Survey, 

American retailers dealt with US$44 million in inventory shrink. 

Of that amount, 38% came from shoplifting and 34.5% came 

from employee theft. Non-retailers, including warehouses, offices 

and other businesses, can also use video systems to monitor 

customers and employees. 

Video surveillance can also be used for purposes other than loss 

prevention, such as studying customer movement through your retail 

setup. There are a wide variety of IP-based video surveillance systems 

available from members of the Electronic Security Association (ESA). 

Keep the following factors in mind when deciding what kind of video 

system is right for your business. 

Camera location – If you are placing your cameras outside 

exposed to the elements or inside a particularly dirty environment 

such as an auto shop, you’ll want cameras with dust and moisture 

proof housings. 

Hidden or visible cameras – Hidden cameras are best when 

you want to gather information or evidence without a subject’s 

knowledge. Visible cameras, on the other hand, can possibly deter 

criminal activity through their presence. Thieves, vandals or other 

bad actors might think twice if they know they are being watched. 

Features – Do you need cameras that focus on single locations, 

like a bank teller station or cash register, or cameras that scan a wide 

area like a manufacturing floor or retail space? Many cameras come 

with adjustable lenses while others come with pan, tilt and zoom 

capability. Advanced analytics are also something to consider. There 

are many camera solutions that offer businesses the ability to gather 

valuable business intelligence data through the use of cameras 

equipped with analytics capabilities. Some examples of the data that 

can be gathered include monitoring and tracking customer and/or 

traffic patterns, performance of retail kiosks, facial recognition, over 

capacity detection and so much more. 

Image quality – If you’re monitoring a small, well-lit area, a 

basic camera system with a lower resolution will suffice. If you’re 

monitoring areas with harsh lighting conditions or you need a greater 

level of detail, consider camera systems with a higher resolution. 

Data storage – Simpler security setups, such as those using 

a single camera, can rely on memory cards installed in the camera 

itself. However, those seeking a more long-term solution needing 

more recording capacity can opt for a dedicated network video 

recorder (NVR) or hosted or managed video services. 

Time of day – If you are monitoring areas with low light or no 

light at all, you’ll want a camera equipped with infrared LEDs to 

accommodate surveillance at all hours of the day. 

There are many more considerations to keep in mind when deciding 

on a video surveillance system for your business. IP video systems 

enable you to view live video from cameras in multiple sites in a number 

of geographic locations. Some of those systems also allow for off-site 

monitoring, so you can view what’s happening in your place of business 

from the comfort of your own home or any other remote location. 

Reprinted with permission of Casino Journal. 

30 



Gambling 

and the law 

End 

Game 

for Daily 

Fantasy 

Sports? 

By Professor I Nelson Rose 

IAG’s resident US gambling law expert takes a look 

at the tough times Daily Fantasy Sports is battling. 

Professor I Nelson Rose is 

recognized as one of the world’s 

leading authorities on gambling 

law and is a consultant and 

expert witness for governments 

and industry. His latest books, 

Gaming Law in a Nutshell, 

Internet Gaming Law and Gaming 

Law: Cases and Materials, are 

available through his website, 

www.gamblingandthelaw.com. 

Daily Fantasy Sports is Rocky 

Balboa. 

Like Rocky in the big fight 

scene in Rocky I, DFS 

operators have been on the 

ropes since the beginning of October. But, 

also like Rocky, they continue to battle on, 

taking a beating that would floor lesser 

competitors. 

For example, during one week in 

September, DraftKings was the single biggest 

advertiser on television. DFS operators have 

slowed their spending, in part because media 

companies are reluctant to run commercials 

for what might be illegal gambling. Still, 

DraftKings, FanDuel and their smaller 

competitors continue to spend enough 

to “move the needle” on the total amount 

spent by all advertisers for all products and 

services throughout the entire United States. 

Much of DFS operators’ bruises have been 

self-inflicted. DFS sites are staffed by people 

who like to play fantasy sports. This is true of 

every gaming operation that puts an existing 

game to the internet. But DFS operators 

should have learned the lesson of Absolute 

Poker, where an insider was discovered to be 

a “super-user,” with the ability to see every 

other players’ down-cards. 

DraftKings and FanDuel say they had 

already taken the obvious first step of 

banning their employees from participating 

in DFS on their own sites. We have to hope 

and assume this also covers not passing on 

inside information to family and friends. 

But, given the nature of fantasy sports, 

which relies so heavily on statistical 

information, operators should have also 

prohibited their staff from playing on every 

DFS site, especially big money games. This 

would have prevented the scandal that will 

haunt operators for years, where a DraftKings 

employee won US$350,000 on FanDuel. 

“Just a mistake,” said DraftKings about 

its manager, who accidentally released 

important customer information about 

player selections and then won US$350,000 

playing fantasy football at FanDuel. To state 

and federal prosecutors and disgruntled 

losing patrons, it looks instead like the 

manager used inside information to give 

himself an advantage in choosing which 

32 


Gambling 

and the law 

players to put on his fantasy team. 

Now, prosecutors are looking into what 

other possible misconduct might have 

occurred. Worse, they are investigating 

whether DFS has violated state or federal 

anti-gambling statutes. 

At least one class action has been filed. I 

expect both government and private lawyers 

to look for more than just money. They will 

attempt to get courts to issue injunctions, 

closing down the sites. 

The timing of the US$350,000 DraftKings 

scandal could not have been worse. 

The Attorneys General of New York and 

Massachusetts, and apparently of at least 

three other states, were already investigating 

whether DFS violated any of their state 

laws. The scandal broke at the beginning of 

October. On Monday, October 5th, the New 

York Times ran a lead editorial entitled, “Rein 

In Online Fantasy Sports Gambling.” It also 

published a detailed, scathing investigative 

piece, with the not too subtle headline, “Cash 

Drops and Keystrokes: The Dark Reality of 

Sports Betting and Daily Fantasy Games.” 

Within three weeks bills were entered in 

Congress and state legislatures to outlaw 

DFS, at least one federal grand jury was 

convened, state attorneys general opened 

their own investigations and the FBI was 

called in. 

A manager of a multi-billion-dollar 

mutual fund cancelled a call he had 

scheduled with me to discuss investing in 

DFS. Big investors may want big profits. But 

they are scared to death of uncertainty. 

Even some of DFS’ allies were backing 

off. ESPN suspended branded segments 

featuring DraftKings during its news and 

information programs. The worry is more 

than mere public relations. If DFS is illegal 

gambling – which is by no means clear – 

then anyone associated with it could be 

facing serious federal and state criminal 

charges. Fighting potential sentences of 

years in prison and the confiscation of all 

profits arising from supposedly criminal 

activities would cost millions of dollars, even 

if the charges are eventually dropped. 

The problem for DFS sites and their 

associates is not the minor scandal of 

possible insider trading, or even allegations 

of cheating. The problem is that violations 

of gambling laws trigger all of the draconian 

statutes designed to fight organized crime. 

When Prohibition was repealed, 

organized crime, or OC as they call 

themselves, looked around for other illegal 

products and services that they could supply 

consumers. When you think of OC you 

naturally think of illegal drugs, prostitution 

and gambling. So both state legislatures 

and Congress passed numerous acts that 

“… during one week in September, DraftKings was the 

single biggest advertiser on television … DraftKings, 

FanDuel and their smaller competitors continue to spend 

enough to ‘move the needle’ on the total amount spent by 

all advertisers for all products and services throughout 

the entire United States.” 


Gambling 

and the law 

“The timing of the 

$350,000 DraftKings 

scandal could not 

have been worse. The 

Attorneys General of New 

York and Massachusetts, 

and apparently of at least 

three other states, were 

already investigating 

whether DFS violated any 

of their state laws.” 

make anyone involved with illegal gambling 

potentially liable under the anti-racketeering 

laws. These laws were expressly designed to 

include investors and others involved with 

OC who like to keep their hands clean. 

There are three ways a non-actor, like 

ESPN, could be criminally liable merely for 

running ads for a business that violates antigambling 

laws. 

The crime that is often called “the 

prosecutors’ friend” is conspiracy. Almost 

all state anti-gambling crimes are mere 

misdemeanors. But conspiracy to commit 

a misdemeanor is a felony. Prosecutors 

only have to prove is that there was an 

agreement to do an act that violates the law 

and that one of the co-conspirators took a 

substantial step toward completing that act. 

Co-conspirators do not even have to know 

that what they are agreeing to do is illegal. 

The second and even more common 

way for a non-actor to be criminally liable 

for the actions of another person is 

accomplice liability. Unlike conspiracy, which 

is a separate crime, accomplice liability is 

a theory of liability. Often called aiding and 

abetting, this is a way to make anyone who 

helps another commit a crime become guilty 

of that crime. The get-away driver is guilty of 

bank robbery, even though he never sets foot 

in the bank. 

For DFS, the last and possibly most 

frightening way for a person to be criminally 

responsible for the actions of another are 

special statutes. In the case of gambling, 

the most important is the federal Illegal 

Gambling Businesses Act. Congress 

enacted the IGBA as part of the Organized 

Crime Control Act. It makes everyone who 

participates in a business that violates a 

state anti-gambling law guilty of a major 

federal felony. The only requirement is that 

the business has five or more people and 

does at least US$2,000 in business a day. 

Arizona, Iowa, Louisiana, Montana and 

Washington have expressly made fantasy 

sports illegal. DFS operators say they do not 

take players from those states, because they 

know that doing so would be a violation of 

the IGBA. But there are a dozen other states 

with anti-bookmaking and other laws on the 

books which might also apply to DFS. 

It is possible for an individual to be guilty 

of multiple crimes under these doctrines. 

For example, if someone agrees to help an 

illegal gambling business that has not just 

five but six other people involved, he can be 

charged with both conspiracy and the IGBA. 

And the IGBA opens the door to even worse 

anti-OC statutes, including RICO, Racketeer 

Influenced and Corrupt Organizations. RICO 

allows federal prosecutors to seize all of a 

defendant’s assets that were derived from 

OC activities – the so-called “tainted fruit of 

the poisonous tree.” Plus, of course, potential 

penalties include many years in prison. 

Everyone wants to know what is going to 

happen with DFS. Given this list of horrors, 

it may be surprising to hear that I am rather 

optimistic about the operators. The most 

important reason is money – big money 

coming from very powerful institutions. 

Researchers at Princeton and 

Northwestern universities recently proved 

what every student of American politics 

already knew: Big money buys political 

influence. The professors examined 1,800 

separate public policy debates between 1981 

and 2002 and compared the preferences of 

average citizens with those of the wealthiest 

individuals and largest special interest 

groups. The results: There was virtually no 

correlation between what the vast majority 

of Americans wanted and the actual laws 

that were enacted; but affluent citizens and 

powerful special interest groups were able 

to get legislatures to pass or defeat bills 

reflecting their positions. 

Of course, we don’t need to have studies 

to show how laws are made, or not made. 

The National Rifle Association was able to 

prevent Congress from passing a single new 

gun control law, even those supported by a 

majority of gun-owners, after the massacre 

of 20 students and six adults at Sandy Hook 

Elementary School in 2012. If the mass 

34 


Gambling 

and the law 

murder of first-graders does not result in 

such widely desired laws as background 

checks for gun purchasers, it is difficult 

to see how average Americans could ever 

defeat the lobbying power of politically wellconnected 

special interest groups. 

The proponents of DFS include the 

extremely rich and powerful sports leagues, 

with the sole exception of the NCAA. Even 

the fanatically anti-gambling NFL allows its 

team-owners to be directly involved with 

DFS operators. 

Closely aligned with the professional 

sports teams are large mass media 

companies, like Disney. It is easy to see 

why: DFS players watch athletic events to 

the end, even when it is a blow-out. Unlike 

regular sports fans, DFS participants are 

more interested in the performance of their 

individual players than whether their team 

wins or loses, or even whether it beats the 

spread. 

The main opponents of DFS are 

established legal gambling operators, 

particularly casinos. Nevada announced 

that it is taking up the battle against DFS by 

declaring DFS to be a form of gambling. DFS 

operators are taking the position that their 

games are contests of skill, so they could not 

apply for gaming licenses. Instead, they had 

to start excluding real-money players from 

the Silver State. 

But casino owners have much bigger 

things to worry about than DFS, including 

the lack of interest in casino gaming by 

Millennials. And privately owned casinos 

do not have a good record when it comes to 

keeping out newcomers. Nevada’s casinos 

were against both Indian gaming and 

Internet poker; battles which they lost badly. 

The other main opponents of DFS are the 

“anti’s”, mostly religious groups opposed to 

all legal gambling. The anti’s lost that battle 

decades ago. 

So, the proponents of DFS have the 

power to get laws passed, expressly making 

their activities legal. But legislation will not 

immediately solve their problems. 

A federal law could be enacted 

preempting state anti-gambling laws, 

as was done with trading in stocks and 

commodities. But Congress no longer 

passes laws. And even if it did, there would 

have to be provisions for states to opt in or 

opt out. The federal government is not going 

to impose the same public policy on Nevada 

and Utah. 

So the DFS operators are stuck with 

lobbying state by state. They could probably 

get a bill passed through the New York 

Legislature, making their operations legal 

in that state. But even if licensed in New 

York, a DFS site could not safely take players 

from New Jersey unless they got a similar 

statute passed there, or they convince the 

New Jersey Supreme Court that DFS was not 

gambling. 

The reason I am optimistic is that DFS, 

and especially its allies in the professional 

sports organizations and mass media 

companies, have the resources to fight 

these battles throughout the entire nation. 

They do not even have to win; they only 

have to continue standing until they reach 

settlements with prosecutors and other 

opponents. 

What will those settlements look like? 

There is little dispute that season-long 

fantasy sports is a contest of skill. DFS 

has eliminated at least one of the elements 

of skill: the ability of participants to make 

trades. The impact of chance is also much 

greater on daily games. For example, 

“Let’s not forget that 

in Rocky II, Rocky 

wins, and becomes the 

Heavyweight Champion 

of the World.” 

injuries and other unforeseen events 

happen all the time. But over the course of 

an entire season, such chance occurrences 

have much less of an impact on which 

fantasy teams win or lose. 

I would suggest agreeing to legislation 

requiring that fantasy games must be based 

on real-world sports events taking place 

over at least two days. This would lessen 

the impact of random injuries and bring 

back the skill factor of allowing fantasy team 

owners to make trades. 

In the end, will DFS win? Rocky 

withstood repeated blows that would have 

killed a lesser fighter, and stayed on his feet 

through all 15 rounds. Still, in the end, he lost 

the match by a split decision. DFS and its 

many fans have to hope that Rocky will not 

be an omen for them. 

And they may be right. DFS may be 

getting hit almost every day. But it has not, 

and will not, throw in the towel. We are still 

in the early rounds. And this is only Rocky I. 

Let’s not forget that in Rocky II, Rocky 

wins, and becomes the Heavyweight 

Champion of the World. 


36 inside asian gaming November 2015


Blast 

from the Past 

Business 

Not as Usual 

IAG has been covering the Asian Gaming industry for over 10 

years and our “Blast from the Past” columns take a fresh look 

at an article from the past with the benefit of hindsight. 

This month we take a fresh look at an interview we 

conducted back in October 2012 with Neptune Group’s 

CEO Mr Nicholas Niglio. The dramatic changes in Macau’s 

junket industry over recent months allow Niglio’s words to 

be seen in a new light — especially his comments regarding 

consolidation of the sector. His predictions for year-on-year 

growth in Macau’s GGR for 2012 and 2013 were both very 

close to the final result — but he’s probably glad we didn’t ask 

him the same question about 2014 and 2015! 

While so much has been written and studied 

about the massive investment in resort 

development that is transforming Macau from a 

Cantonese gambling enclave into a multifaceted 

leisure destination for all of China and beyond, 

so little is known publicly about the junket operators and VIP room 

promoters that drive the growth behind this largest and most unique 

of the world’s casino markets. What we get instead—journalism, 

like Nature, abhorring a vacuum—generally is ill-informed or 

surmised, a lot of it simply imagined; and, not surprisingly, what 

we think we know about the junkets and their operations is almost 

always negative, which not only does them a disservice, it gets in 

the way of our understanding of this amazing evolutionary tale and 

of the vital role the junkets have played, and continue to play, in 

moving it forward. 

Fortunately, this is changing, and it’s changing because of 

companies like Neptune Group. Under CEO Nicholas J. Niglio, 

publicly traded Neptune, the largest junket player listed on the 

Hong Kong Stock Exchange (0070.HK), has been in the forefront 

of a business model that is evolving side by side with Macau. 

It’s a diverse, financially sophisticated, highly transparent model 

through which Neptune invests in VIP room promoters in exchange 

for a share of the rolling chip turnover the rooms generate—a 

partnership model in which everyone benefits: the promoters, the 

casinos and Neptune. 

Mr Niglio’s long career was forged in the intensely competitive 

Atlantic City market, where he served in numerous executive roles, 

including vice president of casino operations and senior vice 

president, Eastern operations, at Caesars World and as an executive 

vice president at the Trump casinos, where he oversaw domestic and 

international marketing. Under his leadership, Neptune has grown 

profits more than 300% in the last three years to HK$200 million in 

2011. And the company continues to expand, both through its ties to 

privately held Neptune Macau, which directly promotes some 220 

VIP tables, and through its own profit-sharing agreements. The Group 

recently concluded memoranda of understanding that will add 64 

tables at Grand Lisboa, Wynn Macau and MGM Grand to its existing 

investments in rooms at StarWorld, The Venetian and Sands Macao. 

These agreements will more than double its portfolio of tables and 

triple the total rolling chip turnover in which it shares to about HK$45 

billion a month. Mr Niglio recently spoke with Inside Asian Gaming 

about these moves and shared his thoughts on Neptune’s plans 

going forward and the state of the VIP market in Macau. 

38 


Blast 

from the Past 

IAG: With these new investments at Grand 

Lisboa, Wynn and MGM, what will be the 

impact for Neptune? 

Nicholas Niglio: The impact will, I believe, 

double our earnings, because it’s doubling 

our capacity. It’s the same system of 

investment, where the return from the 

casino, the percentage basis, is going to be 

the same, 0.4%, and that’s consistent with 

what we’ve had for the last three to four 

years. The three properties, not a whole 

lot of difference in the turnover within 

the group. These three are probably our 

higher-end ones, which means it can even 

be incremental, more than a doubling, 

because these are our flagships. … Actually, 

if we had done this a year ago it wouldn’t 

have had the impact on our financial 

statements as it will today, because 

those three properties, the way they’re 

performing, they’re peaking now. 

And the increase in monthly rolling chip 

turnover, obviously that is significant as well. 

You’ve got to feel good about that. 

It’s a new start, truly a new start for this 

company, something that we’re very happy 

to see. 

Neptune Group recently concluded memoranda of understanding 

that will add 64 tables at Grand Lisboa, Wynn Macau and MGM 

Grand to its existing investments in rooms at StarWorld, The 

Venetian and Sands Macao. These agreements will more than 

double its portfolio of tables and triple the total rolling chip 

turnover in which it shares to about HK$45 billion a month. 

Do you see these deals then as providing 

momentum for more investments along 

these lines? 

Well, it takes us almost to a saturation point. 

There is a little bit more room to include all 

the concessionaires. But you can only go as 

far as the concessionaires. 

So where do you go from here? 

The group for years has always had the objective 

to expand its total portfolio past Macau. I 

think at the point that we feel Macau has been 

systematically absorbed, as far as we can go, 

then I’m sure you’ll see things happening 

elsewhere. I’m not ruling anything out. 

Would this include acquisitions? 

We’re hearing a lot these days about 

consolidation in the sector, both as a result 

of a slowdown in VIP revenue growth and 

the slowdown in China that is having an 

effect on credit markets. 

There is some consolidation. I don’t think it 

has gotten to the point where it’s noteworthy. 

I mean, what we did is an investment rather 

than a clear consolidation. It’s a further 

enhancement of our presence here. It 

doesn’t change the nomenclature of the 

rooms themselves. What you’re referring to 

are takeovers, where you have a mediumsize 

company like [Asia Entertainment & 

Resources Ltd] for instance, purchasing a 

small six-table junket. The impact is not 

noteworthy just yet. However, I’m happy 

to see that. It’s been very difficult for the 

small junkets to partake in this market 

because the big five control so much of the 

turnover. They’ve got the same problems 

and pressures that we have but without the 

capital and without the infrastructure to 

exercise adequate controls. It forces them 

to make credit decisions that they may not 

normally want to make, but they’re almost 

forced into it. And when you don’t have 

Nick Niglio 

“It’s been very difficult for the small junkets to partake 

in this market because the big five control so much of the 

turnover. They’ve got the same problems and pressures 

that we have but without the capital and without the 

infrastructure to exercise adequate controls.” 


Blast 

from the Past 

“Sheldon Adelson told me himself that he really 

likes our company, and one of the reasons why he 

likes our company is because we’re listed. It creates 

a platform of honesty and integrity, and certainly 

regulatory transparency.” 

much, and you lend out a little bit, and it’s 

not property scrutinized as much as you 

would want it to be, then all of a sudden 

it slows down, next thing you know you’re 

looking for somebody to help you, and that’s 

where the slowdown has been. 

Who are the big five? 

Neptune, SunCity, David’s Palace, Jimei Group, 

Golden Resort Group. AERL has invested in 

about 29 tables. They’re a mid-cap. We’ll call 

them a mid-cap. There is no other word for 

them. I give them credit for listing. I don’t think 

they represent the industry that well. They add 

some confusion to the marketplace. They’ve 

been through several auditing firms. I’m glad 

they’re there rather than not there, but I wish 

they would tone it down and standardize 

themselves a little bit. Maybe as they grow they 

will. … I’d like to see more big ones develop. 

I’m talking about bigger junkets. I’d like to see a 

big six or big seven. I think that’s good. 

Well, again, Neptune is not in that category. 

If you take our numbers from a year ago, 

they’ve literally doubled. We’re as strong as 

ever. Is there slippage? Some maybe aren’t 

doing the numbers that they did a year ago. 

Possibly some are overextended in terms 

of the table positions they’ve taken on. And 

then there’s the little guy I told you about. 

There’s no one factor. They always blame 

China, it’s GDP and all these things, it’s not 

that, the market is so big that China can do 

what it wants to do and the gambling dollars 

are always going to be there for Macau 

because there is no competition. It’s all 

going to come here. But certainly I believe 

that sometimes the junkets are their own 

worst enemies in terms of doing business. 

If you’re not professional and you’re not 

well-funded, that’s two items, and if you’re 

not positioned in the casinos properly and 

if you’re not everywhere like we are, you can 

lose business that way, not because there 

are economic reasons, it’s just the fact that 

you’re not doing a good job yourself. 

So it’s a tougher market, competitively, 

more than anything? 

Yes. I mean, I’m not bothered by it all, and 

none of the concessionaires are bothered. 

The only people bothered by it are Wall 

Street. Because they love to be bothered by 

different things. They just key in on these 

slippages that we’ve had. But if you look, 

if you try to analyze where the slippage is, 

nobody can do that. You can’t say which 

junket is down, you just say VIP is down. 

But it could be one or two junkets that are 

skewing the whole thing. Could be. Nobody 

knows. If everybody was like Neptune and 

everybody ran their operation like Neptune 

and SunCity you wouldn’t have the slippage. 

It would be growing. 

Is there room? 

I don’t know. That’s just it. I don’t see 

anybody on the horizon that can do it. I want 

to see Macau’s numbers be as good as they 

can possibly be. I’m very pro-companies, very 

pro-Neptune, obviously. But I’m also pro for 

the concessionaires and the government and 

for the region. 

It doesn’t sound like you’re concerned 

about the market slowing, or possibly even 

contracting at some point. 

“I believe that sometimes the junkets are their own worst 

enemies in terms of doing business. If you’re not professional 

and you’re not well-funded, that’s two items, and if you’re 

not positioned in the casinos properly and if you’re not 

everywhere like we are, you can lose business that way, not 

because there are economic reasons, it’s just the fact that 

you’re not doing a good job yourself.” 

40 


Blast 

from the Past 

Do you see listings like Neptune’s as a way 

forward in this respect? 

There are only four at the moment. But 

they differ in terms of focus, profitability 

and reasoning and purpose. I mean, Amax, 

they’ve been suspended for so long, I don’t 

know if they’ll ever trade again. Neptune is 

the only pure play. The others have other side 

businesses. 

But certainly there are advantages. 

Access to capital. Fund-raising. And there 

is a tremendous comfort level among the 

concessionaires. They like that. Sheldon 

Adelson told me himself that he really likes 

our company, and one of the reasons why 

he likes our company is because we’re 

listed. It creates a platform of honesty 

and integrity, and certainly regulatory 

transparency. Not too many can offer that 

to a concessionaire. And he appreciates 

that. That’s the advantage. 

This would seem to indicate that the 

investment community has become more 

comfortable with the sector as well. 

The investment community has always 

been interested in the VIP business. But 

they’ve always had a language problem, and 

many other problems, in terms of the proper 

connections and getting feedback from the 

junkets. There wasn’t anybody to talk to. 

We’ve done some, actually we did quite a bit, 

then we kind of slowed down, now it’s picked 

up again. I don’t think there’s anything 

that we say that is so earth-shattering 

or revealing. It just backs up what the 

concessionaires tell them. And their focus 

is the concessionaires, of course, when they 

issue their research reports. 

Does it present more opportunities for 

growth? 

Well, you know, we’re very much at the 

beck and call of the concessionaires. So 

as the concessionaires expand and build 

and turn land into these spectacular 

integrated resorts, we’re right there with 

them as partners. That’s where we are 

right now. Can Neptune in the future be a 

concession, maybe part of a process like 

City Clubs, something like that? Absolutely. 

There’s that possibility. I don’t know if and 

when it will happen, but it could happen, 

whether it’s in Macau or somewhere else. 

Certainly our comfort level is very high 

here, not so high in some of these other 

countries. We get asked all the time. But 

we like the regulatory framework here, 

the comfort level of the spoken language 

being Mandarin and Cantonese, some 

English. We believe there is honesty in 

the government and things like that. … 

After Neptune Macau opens their final 

room, in MGM, there will probably be a 

bit of a slowdown in terms of openings, 

because we’re everywhere, and quite large 

everywhere, and we’re located properly, so 

it’s not like there’s any need to move. So 

after MGM we’ll wait. Galaxy’s Phase II is 

too new, and we’ll wait on City of Dreams, 

and within three or four years we’ll 

probably have 20 rooms. 

Your forecast for Macau for the balance of 

the year? 

At the end of last year I was predicting 

15-17% growth for 2012. I think I’ve got to 

backtrack it a little bit. I’m kind of going with 

the consensus, in around the 9-12% range. 

The lead-in to Chinese New Year is always 

good. And the weather is more comfortable. 

And the kids are back to school. Not a lot of 

distractions that people have. The factories 

are back open and running. People are not 

on vacation. A lot of that is helpful on the 

VIP side. 

And for 2013? 

Thirteen-15%. But I’m not a fortune teller. I 

mean, everybody has been adjusting their 

numbers. Even Francis Lui. He started the 

year off at 21%. I think he’s on his third 

number. 

“After Neptune Macau 

opens their final 

room, in MGM, there 

will probably be a 

bit of a slowdown in 

terms of openings, 

because we’re 

everywhere, and quite 

large everywhere, 

and we’re located 

properly, so it’s not 

like there’s any need 

to move.” 


REGIONAL 

BRIEFS 

Macau’s October gross gaming revenue 

MOP$20.1 billion 

October’s gross gaming revenue (GGR) has come in at MOP$20.1 

billion, a 28% year-on-year decrease. Macau has now seen 17 

consecutive months of year-on-year GGR contraction, although 

October’s GGR was the best absolute monthly result since May. 

The year to date GGR (Jan to Oct 2015) totals MOP$196 billion, 

which is down 35% on last year. 

After a solid golden week to kick off October, the result came in 

at slightly less than expected but was described as “The beginning 

of a ‘less bad environment’,” by Vitaly Umansky, a gaming analyst 

at Sanford C Bernstein. 

October also included the opening of Melco Crown’s Studio 

City resort on October 27. Bernstein expects Macau’s average daily 

revenue from the mass market segment to rise as a result of Studio 

City’s opening, after the casino resort “opened to great fanfare”, 

according to Umansky. 

If this happens, it will be in contrast to the result of the opening 

of Galaxy Phase II on May 27, which has been described as “hardly 

moving the needle.” Whilst Galaxy phase II was allocated 150 tables 

by the Macau government, Studio City has been allocated 250 

tables, 50 of which will be delayed until January 1. 

“Macau is not out of the woods yet, especially VIP gaming, as 

we expect Macau to experience three consecutive years of falling 

gross gaming revenue,” Nomura analysts led by Richard Huang 

wrote in an October 27 note. Nomura is forecasting GGR to fall 

35% this year and a further 8% in 2016. 

Whilst the result represented a lengthening of Macau’s negative 

run to 17 consecutive months, it was seen as not quite as bad as 

expected and led to rises in the share prices of Macau’s casino 

concessionaire companies. 

monopoly enjoyed by Stanley Ho-led STDM and the subsequent 

liberalization of Macau’s gaming industry – with the introduction of 

international gaming brands such as Sands, Wynn and MGM. 

Responsibility for oversight of the DICJ falls under the portfolio 

of the Secretary for Economy and Finance, Mr Lionel Leong. Mr 

Leong has thanked Mr Neves for his contribution towards the 

growth of Macau’s gaming industry. 

“Under the leadership of Mr Neves, the bureau carried out 

extensive work for the opening up and development of the gaming 

industry,” Leong said. 

A replacement for Mr Neves has not yet been announced, 

but Mr Leong has said that if no replacement was made before 

November 25, the DICJ Deputy Director, Leong Man Ion, would take 

on the position in an acting capacity. 

Mr Leong said the government is still looking for a suitable 

replacement for Mr Neves. He has stressed the importance of 

appointing someone with extensive knowledge of the relevant legal 

framework as well as appropriate language skills. Macau’s official 

languages are Chinese and Portuguese but casino business is often 

conducted in English. 

The major focus of the new Director of the DICJ is likely to be 

on the mid-term review of Macau’s gaming industry. The review 

will draw conclusions about the extent to which Macau’s casino 

concessionaires are fulfilling their obligations under the concession 

agreements with the government. 

The head gaming regulator will also have to address the 

slowdown in Macau’s gaming industry generally as well as the 

changing face of Macau’s VIP rooms, which have seen GGR revenue 

declines of as much as 60%. 

Macau’s public broadcaster TV station TDM has reported that 

Paulo Martins Chan, currently Assistant Prosecutor General of 

Macau, would succeed Neves. Chan was nominated for the Public 

Prosecution Office in 1999 by former Chief Executive Edmund Ho. 

Neves steps down as DICJ head after 

nearly 20 years service 

Manuel Joaquim das Neves (pictured) has announced he will step 

down as Director of the DICJ, Macau’s casino regulator. 

Mr Neves, 56, told Radio Macau he will leave when his current 

tenure ends on November 25. “I want to focus more on my family 

and on enjoying life,” Mr Neves said. 

Mr Neves joined the DICJ in 1985 and has headed the Bureau since 

1997. During this time he has overseen the end of the 40-year casino 

CY Management to launch Super 88 

Fortunes at Grandview 

In September CY Management soft launched Super 88 Fortunes at 

Taipa’s Grandview Casino, featuring a bank of 10 machines. 

The Grandview slot casino, which is currently managed by CYM, 

is the first property to launch Super 88 Fortunes in Macau. CYM 

specializes in the sourcing and installation of electronic gaming 

machines, slot monitoring systems and associated equipment 

in gaming destinations and provides full managerial support 

42 


REGIONAL 

BRIEFS 

and operational and technical staff to oversee electronic gaming 

operations on a revenue share model throughout Macau. CYM 

currently manages electronic gaming machines in the slot venues 

of Landmark, Casa Real and Grandview. 

Following the success of Duo Fu Duo Cai, “Super 88 Fortunes” 

is a transformation by Bally Technologies of the popular 88 Fortunes 

from a Duo Fu Duo Cai link to a standalone game, which has joined 

the Super Series as the first standalone title. The new 5x4 array 

offers 1024 ways to win and Super Stack winning combinations to 

bring new levels of excitement to the game. 

“We are confident that Super 88 Fortunes can bring a very good 

experience for our regular players who are looking for exciting games 

around Macau,” said Jimmy Poh, Director of Slot Operations – CY 

Management. 

Genting Sentosa liable for false imprisonment 

and assault and battery of patron 

Resorts World Sentosa, Genting Group’s Singapore casino 

operation, has been found liable for false imprisonment and assault 

and battery of one its patrons, Mr Adesh Goel (pictured). 

Justice Choo Han Teck of the Singapore High Court stated in 

his judgment that “the acts of holding [Goel] back, grabbing his 

arms and the scuffles that resulted in him being hit against the wall 

are not conduct that are ordinarily acceptable in daily life.” Justice 

Choo noted that the casino may detain a person suspected of 

committing a crime until police arrive, but stated that this was not 

the situation in Mr Goel’s case. Justice Choo went on to say that 

Goel had committed no offence, he was not informed why RWS 

had detained him and that RWS had not immediately contacted the 

police after detaining Goel. 

The case arose after a 2012 incident in which Goel and another 

patron were arguing after the other patron mistakenly took a gaming 

chip belonging to Goel. Goel was led off to a room to “cool down” 

but when he tried to leave he was repeatedly blocked or restrained 

by auxiliary police officers employed by Sats Security Services under 

contract to RWS. 

Both RWS and SATS conceded, as was confirmed by their own 

medical experts, that Mr Goel’s shoulder was broken during the 

incident. Mr Goel claims he was denied medical attention until 

he called the Singapore Police Force who eventually secured his 

release and escorted him to safety. 

After viewing surveillance footage of the incident Justice Choo 

found that casino staff had exercised poor judgment and that 

casino officers and Sats Secuity staff should have known they did 

not have the right to detain Goel. He awarded Mr Goel SG$45,915 

in damages including false imprisonment, pain and suffering and 

medical expenses. 

Penghu may return to the polls 

to vote on allowing casino gaming 

In January 2009, the government of Taiwan lifted a ban on 

gambling on Taiwan’s outlying islands of Kinmen, Matsu and 

Penghu – but insisted local residents should give their approval 

before a casino could open on any of the islands. Ever since there 

has been much talk of opening casino gaming on the islands, but 

very little action. 

In September 2009 residents of Penghu, a group of Taiwanese 

islands about 50 kilometers west of the Taiwanese mainland, voted 

on the issue, with the result being 56.4% against allowing casino 

gaming. 

But Penghu residents may now be getting another chance to 

vote on the issue. Late last month the Penghu local government’s 

Referendum Screening Committee approved a proposal for a new 

casino referendum early in 2016. 

Groups advocating the legalization of gambling in Penghu will 

need the approval of 5% of Penghu’s over 80,000 eligible voters 

before a referendum can be called. 

Last year Taiwan’s parliament discussed a bill to regulate casino 

gambling on the country’s outlying islands. The bill included 30- 

year licenses and a maximum tax rate of 16% of GGR, but has not 

progressed. 

It has been argued Taiwan has the potential to be a second 

Macau, sourcing a majority of its players from Fujian Province in 

much the same way Macau sources a majority of its players from 

Guangdong Province. 

However mainland officials have repeatedly quashed this idea. 

In May this year Fan Liqing, spokesperson for the State Council’s 

Taiwan Affairs Office, said agreements between China and Taiwan 

prohibit mainlanders from gambling in Taiwan. Zhang Zhijun, 

Director of China’s Taiwan Affairs Office, said if Taiwan’s outlying 

islands were to approve casinos, the mainland would revoke direct 

transit, shipping and trade links between Fujian and Taiwan’s 

outlying islands. 


INTERNATIONAL 

BRIEFS 

Baccarat drives rising September 

gaming revenues in Nevada 

Nevada gaming revenue rose 1.5% in September – just the third 

time in 2015 the state has enjoyed a revenue increase compared to 

the same month last year. 

The Nevada Gaming Control Board reported that casinos won 

US$916.4 million in September compared with US$902.6 million in 

September 2014, thanks largely to strong performances on the Strip 

and in downtown Las Vegas. 

Revenue on the Strip grew 2% to US$504.8 million, while 

downtown revenue rose 9.3% thanks largely to the Labor Day 

weekend and the Life is Beautiful music festival both falling in 

September. 

Other areas to enjoy a revenue rise included Laughlin, Reno and 

Washoe County, however North Las Vegas, the Boulder Strip and 

Mesquite all saw revenue fall. 

Most encouraging of all was the fact that baccarat revenue rose 

21.6% statewide to US$100.7 million and by 23.3% on the Strip. 

Nevada has felt the impact of Macau’s decline over the past 18 

months with baccarat having performed poorly for the most part. 

However, the Gaming Board’s own senior analyst, Mr Michael 

Lawton, said the situation appeared to be easing with Nevada 

having felt the full impact of China’s slowing economy this time 

last year. 

“We’re in a good phase now where we’re kind of comparing 

apples to apples,” Lawton said, although he warned against 

jumping to conclusions in regards to where the state’s baccarat 

market was headed. 

He also attributed a fall in slots revenue, which fell 1.8% to 

US$572.4 million, to an anomaly in the timing of collections 

12 months ago. Nevada collected US$48.1 million in taxes on 

September’s winnings, down 12.2% on 2014. 

to Interblock – having most recently served as Vice President of 

Intellectual Property at Scientific Games where he managed a team 

providing legal advice on intellectual property, litigation, immigration, 

human resources and Scientific Games’ interactive business. 

“We are very pleased to welcome Tom to the Interblock senior 

leadership team, a move that sends a clear signal that Interblock is 

moving to the next level as an organization,” said Interblock CEO 

John Connelly. 

“Interblock is moving swiftly and aggressively to expand and 

protect our portfolio of original game content and other intellectual 

property, while continuing to build one of the best teams in the 

gaming industry.” 

Mr Rafferty served as Vice President and Chief IP Counsel at 

Vantiv and is a registered patent attorney with the United States 

Patent and Trademark Office. He has a Bachelor’s degree from Case 

Western Reserve University and a law 

degree from Emory University School 

of Law. 

Mr Rafferty’s appointment is the 

latest in a string of senior executive 

appointments for Interblock this 

year. Mr Connelly was appointed 

CEO of the company in January and 

Mr Rob Bone was named North 

America President in March. The 

Slovenian-based company has offices 

in Las Vegas (US), Macau, Sydney 

(Australia), Halifax (Canada) and 

Mengeš (Slovenia). 

Three US states looking to enact 

legislation to regulate daily fantasy sports 

Illinois has joined New York and Massachusetts as the first three US 

states to officially open dialogue with daily fantasy sports websites 

such as DraftKings and FanDuel over possible regulation of the 

rapidly growing industry. 

Daily Fantasy Sports such as fantasy football – in which each 

user chooses a team of players who then earn points based on 

their real life NFL performances – have seen user numbers grow by 

around 500 percent over the past 12 months but have more recently 

Interblock appoints Tom Rafferty 

as General Counsel 

Gaming manufacturer Interblock, a developer and supplier of 

electronic table games throughout the world, has appointed Tom 

Rafferty (pictured) as their new global General Counsel. 

To be based at the company’s North American headquarters 

in Las Vegas, Nevada, Mr Rafferty brings a wealth of experience 

44 


INTERNATIONAL 

BRIEFS 

come under the spotlight of officials as debate rages over whether it 

should be considered a form of gambling. 

Five states have now banned daily fantasy sports while Nevada 

has implemented a temporary ban, but Illinois is the latest to have 

introduced legislation to regulate these sites instead. The legislation 

would look to apply a stricter definition to daily fantasy sports which 

would separate it from either gambling or sports betting and require 

participants be 18 or older. 

There are currently around a dozen sites offerings daily fantasy 

sports in the United States with DraftKings and FanDuel accounting 

for around 90 percent of the market. 

While other states have yet to make an indication over which way 

they might go in the daily fantasy sports debate, the Massachusetts 

Lottery has indicated it would consider starting its own fantasy 

sports site to capitalize on the growing craze. The lottery’s Executive 

Director, Mr Michael Sweeney, said it was vital for state lotteries to 

look into new opportunities such as daily fantasy sports if they were 

to remain viable in the future. 

“Until such time as it becomes absolutely clear that this is 

illegal, we have an obligation to really grapple with the potential,” he 

said. “It’s about figuring out what’s the next step. How do lotteries 

engage the technology of the mobile and online world and what 

should that look like, if anything?” 

Resorts World Birmingham 

opens for business 

Genting Group has added to its rapidly growing gaming property 

portfolio with Resorts World Birmingham opening its doors on 21 

October. Aiming to turn the British city into a world class tourist 

destination, Resorts World Birmingham is a 12-storey, 538,000 

square foot venue based on the shape of a cruise ship. It includes 

a casino, an 11-screen cinema with 3D technology, retail outlets, a 

hotel and spa plus 18 bars and restaurants. 

Genting has described its newest property as England’s biggest 

gaming venue. It boasts baccarat, blackjack, roulette and poker and 

100 slot machines. The four star, 180 room Genting Hotel opened 

on 2 November. 

Genting UK said, “For the first time, Resorts World Birmingham 

will bring the uniqueness and excitement of a large-scale integrated 

resort to the west Midlands region and beyond.” 

The £150 million property is the UK’s first integrated leisure and 

resort facility and also boasts The Vox Conference Centre – a world 

class conferencing and banquet center. 

The resort will have 1,200 staff and can accommodate around 

12,000 people at any one time. 

James Berresford, Chief Executive Officer of England’s official 

tourist board VisitEngland, said the opening of Resorts World 

Birmingham was a huge step forward in opening the region up to 

the world. 

“The launch of the new Resorts World marks a huge investment 

to the West Midlands and is sure to drive additional spend in the area 

– adding to the existing wide range of major visitor attractions such 

as Warwick Castle, Cadbury World and The Library of Birmingham 

that contribute to the 56 million visitors the West Midlands attracts 

every year,” he said. 

Action time for New Jersey? 

New Jersey officials are considering letting voters decide whether 

or not to expand casino gambling beyond Atlantic City as they 

investigate new ways to solve the problems that have beset the 

once booming gambling hub. 

Atlantic City has been in economic freefall since the late 2000s 

with a range of factors including the recession and a lack of foresight 

blamed for the closure of many of its casinos. Of its 12 remaining 

casinos at the start of 2014, four shut their doors last year. 

New Jersey Governor Chris Christie has recently been focused on 

his bid to win the Republican nomination for the 2016 Presidential 

election, but is now expected to move forward on a number of 

bills currently awaiting action with an aid package for Atlantic City 

considered amongst the most urgent. 

The aid package includes five measures to help ease the pain 

for Atlantic City’s ailing casinos including allowing them to make 

set payments in lieu of taxes for the next 15 years, which would allow 

the properties to know exactly how much they would be liable to 

the state for. Other package measures include mandating health 

insurance and retirement benefits for casino workers, diverting 

investment taxes paid by the casinos to city development projects to 

help pay off city debts, creating state education aid and eliminating 

the Atlantic City Alliance. 

Governor Christie has so far refused to say whether he would sign 

or veto the Atlantic City bill. With Atlantic City’s ongoing problems, 

Deutsche Bank released a report earlier this year suggesting that 

opening one or two casinos in the state’s north “could generate 

well over US$500 million – putting [around] US$275 million into 

the state’s coffers.” 

The report also said, “It’s time for New Jersey to push forward 

with plans for a North Jersey casino or casinos … and as such, 

we believe that the next step is a constitutional referendum this 

November providing approval for gaming outside of Atlantic City.” 


Events 

Calendar 

17|19 November 2015 

Macao Gaming Show 

The Venetian Macao, Macau 

The Macao Gaming Show prides itself on having a 

diverse selection of exhibitors displaying products and 

services from both the gaming and non-gaming sides 

of the industry. Alongside the wide-ranging display 

of latest industry innovations will be a conference, 

at which speakers will discuss both land-based and 

online gaming business opportunities throughout Asia, 

regulatory issues and gaming best practices. 

www.macaogamingshow.com 

20|21 January 2016 

Fantasy Sports Trade Association 

Winter Conference 

Bellagio Resort and Casino, Las Vegas, USA 

FSTA is not just for companies that directly support 

the fantasy sports player with statistical services, player 

information, and league organization. The association’s 

current members also include some of the world’s largest 

sports content/information and service companies. 

www.fstaconference.com 

2|4 February 2016 

ICE Totally Gaming 

Excel London, London, England 

Showcasing compelling innovation and expertise, ICE 

Totally Gaming proclaims itself the largest and most 

comprehensive B2B gaming exhibition in the world. 

Bringing together international operators and suppliers 

from the betting, bingo, casino, lottery, mobile, online, 

social and street gaming sectors over three days, ICE 

Totally Gaming promises new opportunities for visitors 

and exhibitors alike. 

www.icetotallygaming.com 

22|24 February 2016 

World Game Protection Conference 

M Resort Spa Casino, Las Vegas, USA 

The World Game Protection Conference (WGPC) is an 

annual 3-day international conference and expo focused 

entirely on casino game protection. Experts and industry 

leaders are on hand to discuss the latest casino scams 

and surveillance technology, as well as game protection 

and surveillance best practices. 

www.worldgameprotection.com 

21|23 March 2016 

iGaming Asia Congress 

Grand Hyatt, Macau 

iGaming Asia Congress conference and exhibition will 

attract over 250 of Asia’s leading sports betting, online 

casino, lottery, social and mobile gaming executives 

to learn about the latest developments in industry, 

incoming regulations and disruptions, and strategies 

to stay ahead of the curve in Asia. It is a must attend 

industry event for all iGaming operators in Asia and 

the world. 

www.igamingasiacongress.com 

27|29 April 2016 

Global iGaming Summit & Expo 

Hyatt Regency San Francisco, San Francisco, USA 

Established as the leading event focused on the future 

of iGaming in North America, GiGse attracts over 700 

delegates to examine legislative progress, commercial 

strategies and partnership opportunities for all the key 

stakeholders to enter iGaming and achieve first-mover 

advantage in this lucrative market currently undergoing a 

significant regulatory change on a state-by-state basis. 

www.gigse.com 

46 

inside asian gaming November 2015 

www.asgam.com

IAG November 2015

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?