Inside Asian Gaming

INSIDE ASIAN GAMING APRIL 2018 6 Gaming’s “flat-earther” fight www.asgam.com I ’VE long believed the gaming industry is among the most misunderstood industries in the world. It’s a view formed largely from seeing what an easy target gambling can be for politicians using its so-called ills to polish their public image, and the mainstream media’s inability to recognize that gambling and problem gambling – as important as that particular issue is – are two very different things. Needless to say, a headline is a powerful thing. I have been reminded of this fact on a few occasions already in 2018, but none more so than in early February when Bloomberg reported that China was drafting a proposal to allow gambling on China’s Hainan Island via “online gaming, a lottery or sports betting.” The article, titled “China considers legal gambling on Hainan Island”, contained a line towards the end of the second paragraph speculating that the proposal “could open the door to physical casinos over the long term.” Cue the hysteria. Over the course of the next week, the story exploded with dozens of news outlets, including some respected gaming industry websites, jumping on the bandwagon. Gaining particular traction was Bloomberg ’s suggestion that Hainan could threaten Macau’s standing as the casino gaming capital of the world – a premise that quickly made headlines around the gaming world. The problem was that, other than a passing reference to two unidentified sources, no one other than the authors themselves had said anything about casinos being legalized in Hainan. And no-one other than the authors themselves had speculated how such a fanciful scenario might subsequently impact Macau. There was more too, with talk of Hainan legalizing online gaming, a lottery or sports betting failing to take into account China’s current regulations around those particular pursuits. As brokerage Bernstein pointed out in a note addressing the growing media storm, “A government-run lottery system is already widespread in China. Virtual Lottery Terminals are already legal and very prevalent in the country. The government does not consider lottery a form of gambling.” Bernstein also noted that “forms of sports betting are already legal and run by the government’s China Sports Lottery. It is not clear how Hainan would benefit from a lottery program and in any event, this would have no impact on casino gaming outside of China.” Online gaming, analysts said, was highly unlikely while there was “no indication that these preliminary proposals are pushing for the legalization of casino gambling.” All in all, a storm in a teacup. Another example is that of the luxury casino being built in Sydney, Australia by Crown Resorts at the waterside precinct of Barangaroo. A former shipping yard that over the years had lapsed into an unused expanse of concrete, the massive 22-hectare site is in the midst of an AU$6 billion redevelopment that has already seen dozens of trendy bars, restaurants and retail stores transform the city and a whole new business and residential center created in the towers above. But despite Barangaroo’s first phase proving hugely popular for locals and tourists alike, the project has attracted a wave of opposition thanks almost entirely to the high-end casino Crown will open in one of the precinct’s six towers. Since the government’s concept plan was first released in 2005, it is Crown’s presence that has shaped negative opinion with criticisms incorporating everything from the usual anti- casino rhetoric to accusations that the company was stealing public space and blocking city views. Last year, a group of residents tried to halt construction by taking Crown, the government and the developers to court, citing the environmental impact Crown’s hotel and casino would have on the surrounding area. There was no mention of the other five towers, nor of any problems with the 280,000 square meters of office space, 1,600 residential apartments and more than 100 retail outlets that will comprise the finished product – despite the fact that Crown’s hotel will cover less than one hectare of Barangaroo’s 22 hectares and the casino just 20% of its hotel space. It is an unfortunate truth that “casino” remains a dirty word. Its mere mention elicits reactions as extreme as the architecture of the iconic resorts that have shaped Macau and Las Vegas. But it’s hard to see things changing anytime soon. If these examples prove anything it’s that people will believe what they want to believe and no amount of facts or reasoning is going to sway them. This, my friends, is our eternal battle. Ben Blaschke Managing Editor We crave your feedback. Please email your comments to [email protected]. EDITORIAL