Inside Asian Gaming

November 2014 inside asian gaming 9 Cover Story “The advantage is in the larger properties,” says Mr Pisano. “If you’re operating a large property you’re going to have a larger product range. You can afford to put in some Aspect, some Hydakos, some Weike. If you’re running 1,500 machines you can put a bank of each.” In light of which, “It’s great to have them,” he adds. “If we look at some of these companies now, they’re building some very successful games at the moment. It gives your casino floor points of difference. At the moment, if we look at the industry it’s basically Scientific Games and GTECH.” But that’s an opportunity as well. “Bigger but not necessarily better,” as Weike’s Ray Poh puts it. “Now they’re becoming even bigger and the competition is growing stronger but we know that we will be able to fight toe to toe with them. It’s definitely a lot easier for us to increase our market share than for them to maintain their market share. So we’re definitely in a position to grow, and now with all the consolidation we are sort of poised to grab any market share that we can whist they’re going through with all their changes.” Mr Shepherd is counting on continuity. “Operators need stability of the sales team and the head guy in Asia. If they keep swapping these around it’s a sign that everything isn’t well, and it makes operators nervous.” For Weike, the “challenge” is what never varies, says Mr Poh. “They have the scalability, they have the resources, they have a lot more things going for them than us, but we’ll continue to fight along. I guess it is like a David and Goliath kind of situation, but what we know is that we can create products as strong as they can so we don’t see it as a disadvantage.” And as slingshots go, being local is not without value. “When it finally matures the Asia market will be the largest slot market in the world,” says Mr Nguyen. “Like so many things driven by the rising Chinese middle class. There is no precedent, and it is extremely dynamic. So if you’re not on the ground and Asia-focused when it happens, you might miss the boat.” line—“to create a more enjoyable gaming experience for the player that translates to higher ROI for the operator”. “We see ourselves as being complimentary to the big global manufacturers,” he says. “We’re all part of a bigger ecosystem delivering entertainment.” For Silver Heritage it’s about “the reach and familiarity with the regions in which we operate,” says Mr Shepherd, which implies, in his view, a certain community of vision. “Silver Heritage work in partnership with our suppliers to promote their games into newer markets. Suppliers who don’t want to join us don’t get the orders. Whether they be big or small companies that commitment to emerging markets has to be there. … When it comes down to it the bigger names tend to be able to see us as a partner regionally and worth the effort, we hope. That said, all the suppliers we are discussing here have very strong markets. I wouldn’t call any of them ‘small’ really. Less well-known internationally perhaps. Jumbo is very big in Taiwan, Weike in Malaysia, Singapore and now Macau. LT is super-strong in Macau and is flexing its muscles internationally, placing in casino across Asia.” For a company such as his, which sees itself as very much an emerging markets story—with an expansion under way in northern Vietnam, plans to develop some 30 branded electronic gaming venues in the Philippines and a five-star resort brand on the drawing board in Nepal aimed at the vast India market—the more choices for his floors the better. Size doesn’t figure into it. “We have bought from these names,” he says of the smaller suppliers. “I think, where we are expanding, all would do well on the floors of our clubs. They have some beautiful machines, with great names and a good track record nowadays. They price more competitively as well. If they do well on an ROIC then we’d order more for sure.” And operators and suppliers agree on the opportunities available to them both from the growth of these markets as destinations. “When it finally matures the Asia market will be the largest slot market in the world. Like so many things driven by the rising Chinese middle class. There is no precedent, and it is extremely dynamic. So if you’re not on the ground and Asia-focused when it happens, you might miss the boat.” Justin Nguyen CEO, Aspect Gaming