Inside Asian Gaming

INSIDE ASIAN GAMING | February 2011 46 Briefs International Briefs Nevada ends two years of gaming revenue declines Nevada ended two straight years of declining gaming revenues, but only by the slimmest of margins, according to a report in the Las Vegas Review-Journal . The Nevada Gaming Control Board announced casinos statewide generated US$10.4 billion in gaming revenues in 2010, an increase of 0.1%, or roughly $12 million, compared with the $10.39 billion reported in 2009. Statewide gaming revenues had fallen 10.4% in 2009 and 9.7% in 2008, owing to the financial crisis that decimated consumer spending nationwide and drove several major Strip casino companies to the brink of bankruptcy. Industry watchers say it is still too early to conclude Nevada’s casino industry is on the mend. Notably, Nevada’s statewide gaming revenues are being buoyed almost solely by baccarat, the staple game of Asian players. Of the nearly US$3.8 billion won statewide from tables games in 2010, $1.87 billion came from baccarat. The game’s revenue figure, which was up 21.4% year-on-year, was the highest amount ever recorded for baccarat in a 12-monthperiod. A large proportion of that is likely to be contributed by visiting Asian high-rollers, including those cultivated at the Macau properties of Vegas-based operators such as Wynn Resorts, Las Vegas Sands Corp and MGM Resorts International. Statewide revenues from locals-dominated slot play decreased 2.7% in 2010, following a decrease of 11.8% in 2009. The slot machine revenues of US$6.6 billion recorded in 2010 were 63.8% of the total revenue figure, the lowest percentage since 1997. Revenues from table games and other casino areas grew 5.6% in 2010, following a 7.6% decline a year ago—though the turnaround was clearly driven by baccarat. According to Mike Lawton, the gaming control board’s senior research analyst, 2010 marked the first time ever in Nevada’s history that the amounts wagered by gamblers on baccarat and the revenues collected on the game by casinos surpassed blackjack. Blackjack provided revenues of $975.7 million in 2010, a decline of 3.3% and the first time since 1998 that revenues from the game fell below $1 billion. Jacob Oberman, director of Gaming Research for CB Richard Ellis, said the strong baccarat figures are helping casinos operated by just a few companies and not the Las Vegas Strip as a whole. “The strong table games revenues are benefiting the luxury properties disproportionately, and are likely not trickling down to the middle-market properties,”Mr Oberman said. GLI’s European HQ recognised by Singapore’s CRA Last summer, Gaming Laboratories International (GLI) was recognised as an authorised testing laboratory by the Casino Regulatory Authority of Singapore (CRA). Now, GLI Europe has achieved the same status of “Singapore Recognised Testing Laboratory (SRTL).”The distinction means GLI Europe is authorised by the CRA to provide testing services for gaming equipment to ensure that they comply with CRA standards before deployment. “We are honored and grateful to the CRA for granting this recognition to GLI Europe,”said GLI Europe Managing Director Phillip Barow. “This recognition is very exciting, both for GLI Europe and for our supplier clients. Now suppliers who earn certification through GLI Europe can move their products into the rapidly growing Singapore marketplace. This is yet another reason for suppliers to choose GLI for their testing needs.” To attain SRTL status, GLI had to prove its accreditation with ISO 17025, its internal compliance processes and its experience in testing gaming equipment for major gaming jurisdictions. The CRA regulates the casinos in Singapore, and designates qualified testing laboratories with the status of STRL to provide testing services for gaming equipment deployed at casinos in the city-state. For more than 20 years, Gaming Laboratories International has been the world leader in providing independent testing, inspection and certification services to the gaming industry. It has 15 laboratories spread across Africa, Asia, Australia, Europe, North America and South America. Holland Casino may be privatised The Dutch cabinet is seriously considering the possibility of selling the Holland Casino group, the state-owned gambling monopoly, junior finance minister Frans Weekers said on 26th January. Speaking during a debate on possible privatisation of Holland Casino, MrWeekers toldMPs:“We are looking at privatisation. It is not taboo.” Mr Weekers stressed any private owner who failed to implement measures to prevent problem gambling and money laundering would have their licence withdrawn. Furthermore, the sale should not lead to the creation of a private monopoly. The cabinet is to present its new policy on gambling in March. Holland Casino has 14 venues in the Netherlands and contributed €164 million (US$222 million) to government coffers in 2009. AGEM opens Europe office and appoints Tracy Cohen director The Association of Gaming Equipment Manufacturers (AGEM) announced the opening of an AGEM Europe office to serve the organisation’s growing membership base there and the appointment of Tracy Cohen to serve as AGEM Director of Europe. With 16 of AGEM’s 108 member companies based in Europe and another dozen with significant operations there, the AGEM Europe office in North London will serve as the central contact point for current European-based members and prospective new members Properties likeWynn Las Vegas are likely benefiting disproportionately from Nevada’s buoyant baccarat revenues