Inside Asian Gaming

September 2011 | INSIDE ASIAN GAMING 47 32 (23) Choi Hung-jib CEO and President Kangwon Land, Inc In July, Choi Hung-jib was named as new CEO of South Korea’s only gaming resort catering to domestic players—Kangwon Land. Mr Choi replaces Choi Yung, who resigned after being questioned by police over corruption allegations. Choi Hung-jib, 60, is a former governor of Gangwon province—the economically depressed area where Kangwon Land is located. He is the seventh boss of the resort since it was founded in 2003 as in effect a regional sovereign wealth fund, designed to plough its profits back into the regional economy and community. Kangwon Land handles a great deal of money indeed. Eager city dwellers pay local grannies the equivalent of hundreds of US dollars just for reserving a seat for themat the tables at weekends. The property generates gross revenues in excess of US$1 billion per year—about one sixth of the revenue generated in 2010 by the entire Las Vegas Strip. It’s perhaps not surprising, therefore, that at times the resort seems to be a bit of a football for the country’s politicians to kick about. The casino opened in March of 2003 with 30 tables. Following 18 months of steady capacity expansion, the National Gaming Control Commission imposed a cap of 132 tables in November 2004 in line with government orders to limit the casino industry’s income. Kangwon Land’s casino currently covers nearly 300,000 square feet and also offers 960 video slots that are upgraded regularly via a rolling acquisition programme. There has been much speculation over the past few years that the table cap would be lifted, but that has yet to happen. A year ago, Kangwon Land was told by lawmakers it could extend its gaming facilities. Work was due to be completed early next year. But it was also told almost in the same breath that it could only apply for more gaming tables after the construction work was finished. Political involvement in commercial ventures can have its upside as well as downside—especially in East Asia. South Korea chose Gangwon province as the venue when it made a winning bid for the 2018 Winter Olympics. The event will be held at Pyeongchang, up the road from Kangwon Land. The property—which itself has a ski resort—is likely to benefit from the huge influx of visitors expected in the region. The downside of lawmaker meddling is that no matter how successful Kangwon Land has been—including overcoming the not inconsiderable handicap of being 125 miles and four hours’ driving east along a difficult winding road from the country’s capital, Seoul—as a publicly-owned venture, it constantly risks having the rug pulled from under it. This year national politicians broke more news to the management. They told Kangwon Land that in principle it would lose its exclusive right to serve domestic gamblers when the original authorisation expires in 2015. Even worse, there’s talk of granting a licence for a domestic players’ casino at Incheon.That city is just up the road fromSeoul and in themiddle of the country’s most populous conurbation, which is home to 24.5 million people—half of South Korea’s entire population. It will be interesting to see whether Seoulites will still be willing to spend hours driving to Gangwon for their casino fun if they have an alternative on their doorstep. It’s not all bad news for Kangwon Land though. In anticipation of the Winter Olympics, the national government is planning to build an upgraded road to connect Pyeongchang and the county of Jeongseon, where Kangwon Land is situated. 33 (-) Andrew Hely Vice President Asia Pacific IGT Asia Following on from a highly successful role heading up IGT’s Australian & New Zealand operations as Managing Director, Andrew Hely was appointed IGT’s Vice President for Asia Pacific in September 2011. Since joining IGT in 1995, Mr Hely has become well- known within the company for his hands-on approach to business and strong rapport with customers. He also brings with him an in-depth understanding of the Asian market from his previous experience as IGT’s Finance Director. IGT unveiled the new IGT bluechip Neo™ gaming machine for the Asian market at this year’s Global Gaming Expo Asia in Macau. IGT showcased six Asian-themed progressive jackpot games— including Dragon Master™, Extra Chance Jetsetter Beijing™ and Fortune Koi™—as well as a new theme bank. Many of these games are based on products that had been well received by IGT’s Australian gaming market. The IGT bluechip Neo™ features an ergonomic design for enhanced player comfort, together with a host of other features and popular games. The new Asian-themed games on the IGT bluechip Neo™ act as a natural complement to the company’s portfolio of award-winning global games. IGT has one of the widest game libraries in the Asian market, featuring instantly recognisable licensed themes, as well as all-star titles such as Crown of Egypt™, 100 Wolves™ and 100 Pandas®. IGT has successfully installed its integrated systems andmachine solutions across Asia. IGT’s Advantage system—a comprehensive gaming business solution—can be found in casinos throughout Macau, and its server-based gaming system, sbX™, is installed elsewhere in the region. IGT also recently increased its presence in the interactive gaming arena. In June 2011, it acquired Entraction Holding AB— formerly known as 24hPoker Holding AB—a Sweden-based digital gaming company. The acquisition gives IGT access to Entraction’s online gaming software for betting, bingo, poker and other games to supplement its current strengths in the interactive market. This latest addition to the IGT interactive business makes IGT one of the leading ‘business-to-business’ providers of online and mobile gaming solutions for regulated gaming markets worldwide. Andrew Hely’s vast experience in the gaming industry, coupled with IGT’s renewed focus on market-attuned products for the Asian region, puts IGT in a strong position to deliver world-class products and services across Asia in the coming years.