Monthly Archives: April 2020

European Gaming set for blockbuster virtual conference

Networking platform to open in advance for delegates from April 23rd

Tuesday, 21st April 2020: European Gaming, Central and Eastern Europe’s leading betting and gaming media platform, is gearing up for next month’s widely acclaimed MARE BALTICUM Gaming Summit.

The CEE gaming scene’s first ever virtual conference is set to take place on May 7th, the date of the original event, with its much-anticipated business development and networking platform set to open in advance on April 23rd.

The full day’s event, set to tackle the latest in global challenges, will feature panel discussions and presentations via live stream, with registered attendees also able to network through online meetings, using European Gaming’s cutting-edge conference platform technology.

Nicholas Kim on how South Korean casinos can bet on future Chinese revenue

South Korea’s casino industry is definitely growing, and the Incheon Free Economic Zone (IFEZ) is helping it become a major player in Asia. At G2E Asia @ The Philippines, CalvinAyre’s Stephanie Tower met up with Nicholas Kim, public officer for the region, who talked about the ways South Korea hopes to attract and grow integrated resorts.

[youtube https://www.youtube.com/watch?v=CyN3lP1pZ40?feature=oembed&w=500&h=281]

Kim began by noting the many similarities between IFEZ and the Philippines equivalent. “Incheon Free Economic Zone has a lot of similarity with Manila’s Entertainment city,” he said. “Both of them are near international airports, and also, both authority tried to recruit multiple Integrated Resorts so that we can capture the international tourism industry.”

Continuing the comparison, Kim noted that IFEZ has looked to the Philippines for lessons, as Entertainment City has proven to be a very successful model, drawing in international attention. “I really congratulate you hosting the G2E event, because hosting G2E event has a lot of meaning,” he said. “That your Manila Entertainment City is grabbing international attention right now.”

Upcoming EI ONLINE Webinars

Catch this week’s webinar!

The past few weeks have been filled with very successful webinars and this week Eventus International continues their series of industry-relevant sessions.

We once again bring you engaging topical discussions led by world-class experts in the gaming sector. This week we focus on the US gaming market as a pre-event to the All American Sports Betting Summit taking place 14 to 15 September 2020 in San Francisco.

THE LAS VEGAS LESSON: Making marketing work with product and calendar changes

Française des Jeux pandemic survival plan: cut €80m in costs

French lottery and sports betting operator Française des Jeux (FDJ) is looking to slash its costs as the COVID-19 pandemic plays havoc with its revenue.

On Tuesday, FDJ announced that stakes over the first three months of 2020 totaled €4.1b, down 5.4% from the same period last year. Revenue fell only 0.9% to €516m, thanks mainly to the return to players dipping by nearly one point to 67.5%.

Lotteries remain FDJ’s bread-and-butter but sales fell 1.5% to €3.33b despite ‘strong momentum’ in its online lottery division. Sports betting took a much bigger hit, falling 18.1% to €766.5m, thanks to “the gradual drying up” of sports events that began in early March as the full impact of the COVID-19 pandemic was felt.

Until that point, FDJ said its activity was “in line with annual targets” thanks to betting activity rising 5% year-on-year. But the month following France’s imposition of pandemic ‘containment’ rules on March 12 has seen a €100m decline in turnover and €50m in lost earnings.

Japan losing patience with its crowded pachinko parlors

Japan’s pachinko operators could be in for a bruising if they don’t start respecting the government’s call for social distancing measures to limit the spread of the COVID-19 coronavirus.

Earlier this month, Japan’s Prime Minister Shinzo Abe declared a national emergency over the COVID-19 pandemic. Abe had come under criticism for his nation’s initial lackadaisical approach to social distancing amid the subsequent announcement of a spike in the number of infections.

Perhaps reflecting Abe’s delayed conversion to COVID-19 foe, and the fact that his emergency order didn’t give governors in certain prefectures the authority to enforce the order, numerous public facilities have yet to alter their practices. That includes pachinko parlors, the ubiquitous arcades that serve as pseudo-gambling in a country that doesn’t allow much legal gambling.

Two weeks ago, local media reported on one pachinko venue that switched off some of its exterior signs and lights but otherwise didn’t seem to be doing anything to limit the number of people allowed inside, nor had it imposed the same type of ‘switch off every other machine’ strategies that many casinos in other countries have been required to introduce.

Oklahoma guv inks new gaming, betting compacts with two tribes

Two Oklahoma tribal gaming operators have come to terms with the state’s governor, but there are questions as to whether the new compacts will withstand legal scrutiny.

On Tuesday, Gov. Kevin Stitt announced agreements on new gaming compacts with two Oklahoma tribes: the Comanche Nation and the Otoe-Missouria Tribe. Each compact is for a 15-year term and each must still be approved by the Bureau of Indian Affairs at the US Department of the Interior (DOI).

The Comanche compact authorizes the tribe to open new gaming venues in Cleveland, Grady and Love counties, provided the DOI agrees to take the off-reservation land into trust (a process that can easily go either way, as recent events have demonstrated). The Otoe-Missouria tribe got the okay to open new casinos in Logan, Noble and Payne counties, subject to the same conditions.

The tribes have agreed to pay tax rates of 4.5%-6% on gaming revenue from their existing casinos, similar to rates in the previous compacts that expired on January 1. However, the Otoe-Missouria tribe will pay between 8%-12% on gaming revenue from its new casinos, while the Comanche will pay between 8%-13% on their new venues.

Singapore extends lockdown until June 1, Genting preps pay cuts

Singapore’s two casinos will remain closed until at least June 1, prompting hospitality giant Genting to propose the unprecedented step of group-wide pay cuts.

On Tuesday, Singapore Prime Minister Lee Hsien Loong delivered an address to citizens of the city-state announcing his plans to extend the month-long COVID-19 pandemic ‘circuit breaker’ through at least June 1.

Singapore’s two integrated resort operators – Las Vegas Sands (Marina Bay Sands) and Genting Singapore (Resorts World Sentosa) – have been shut down since April 7 and were supposed to reopen on May 5. But Singapore’s COVID-19 infections have soared over the past week – including 1,100 new cases on Monday alone – and the city-state now boasts the dubious honour of having the highest number of cases in Southeast Asia.

Sands announced last Friday that it was suspending its dividend program to ensure a strong balance sheet, in part so it could continue to pay its furloughed staff. On Tuesday, word spread that Genting was preparing to cut staff wages across the board, the first time in the company’s 55-year history that such a step was deemed necessary.

Paf makes it rain for local gov’t; Veikkaus warns staff re layoffs

Finnish gambling operator Paf managed to post a bigger profit in 2019 despite ongoing efforts to reduce its reliance on VIP gamblers.

Paf, which holds an online and ship-based gambling monopoly in Finland’s autonomous Swedish-speaking Åland Islands, recently reported that its revenue rose by €2.4m to €114.2m in 2019, while profit rose by €1m to €25.6m.

Paf CEO Christer Fahlstedt said the company “had a good year” and would therefore boost its annual dividend to the Åland government to €40m. Fahlstedt said Paf’s whole purpose was “to generate surplus for the benefit of society and this year it feels especially good that we have the opportunity to make an even greater contribution” given the impact on society of the COVID-19 pandemic.

Paf’s 2019 gains were all the more remarkable given the company’s efforts to stop making money off high-rolling gamblers. In 2018, Paf set a €30k annual loss limit for its online customers, then reduced that to €25k last year. The limits had a significant impact on Paf’s bottom line but the company maintained that VIP revenue was “unsustainable money that we no longer wish to receive.”

UK warns online gambling ops (again) re pandemic safeguards

UK online gambling operators have been reminded (again) by their government not to take advantage of individuals stuck at home with nothing to do during the COVID-19 pandemic.

On Monday, Parliamentary Under Secretary for Sport, Tourism and Heritage Nigel Huddleston issued letters to the CEOs of Bet365, Flutter Entertainment, GVC Holdings, The Stars Group’s Sky Betting & Gaming and William Hill, regarding efforts to “safeguard online gamblers” during the current lockdown period.

Huddleston, who was himself the recipient of a letter this month from MPs demanding tighter gambling controls, said he wanted responsible gambling messaging to be “given more prominence” in operators’ marketing “across all channels.” This should be done through “larger text, a longer appearance, or other techniques” that complement existing messaging.

Huddleston (pictured) told the operators that the UK Gambling Commission (UKGC) would be sending a “data request” for “up-to-date information and granular detail on gambling habits and potential harms” for gambling customers. Huddleston warned operators that “fulfilling this request comprehensively and quickly should be a priority for your organizations.”