Inside Asian Gaming

inside asian gaming November 2015 42 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. 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 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. REGIONAL BRIEFS 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