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China's clampdown on corruption and gambling Bringing Changes to Industry
Wednesday September 30,2015 : CHINA'S GAMBLING CLAMPDOWN CHANGES THE ASIAN INDUSTRY
Analysts claim China remains important, but is no longer driving gambling growth in the region.
Macquarie analysts claim that China's clampdown on corruption and gambling is bringing about changes to the region's gambling industry in which China no longer drives gross gambling revenue growth; they predict that over the next two years the Chinese contribution to growth will be between 0 and just 3 percent.
That compares with growth in the region from non-Chinese sources of 11 to 13 percent over the same period.
The Macquarie Asia Gaming Framework report found that across Asia, the impact of VIP gambling is also waning whilst the mass gambler sector is gaining prominence and now dominates 49 percent of the market...a notable increase from the 36 percent recorded in 2011.
Australia and Malaysia are the major beneficiaries of these changes, the report claims, taking a more pessimistic view of the possibilities in Macau and South Korea which have become heavily dependent on Chinese punters.
Macquarie estimates that Asian GGR is set to decline by 8 percent between 2014 and 2017, with most of that decline having already occurred in 2015 in Macau, where an estimated US$14 billion in Chinese GGR has been wiped out and is unlikely to return soon.
The decline represents a major change from the heady days of CAG rates of 24 percent between 2009 and 2014, the bank observes.
Macau, growth next year is seen at 1 percent and another 5 percent in 2017, mostly driven by the mass market.
Australia is likely to see 10 percent growth over the period, while Malaysia is likely to be up 8 percent, thanks to increased tourism.
High growth of 13 percent is forecast for the Philippines driven by capacity expansion, but that is likely to squeeze margins.
The Macquarie Asia Gaming Framework report ends on a cautious note for the region, claiming there will be a 50 percent increase in capacity over the next two years across Asia, but warning that this will probably herald a significant deterioration in returns.
“While adding only 3-6 percent GGR growth and 1 percent EBITDA growth to Asia, the additional capacity will lead to significant returns deterioration in our view."
Danske Spil Bingo Moves to Microgaming -
The national lottery of Denmark, Danske Spil, is live on the Microgaming Bingo Network. Danske Spil, the Danish national lottery, is live on the Microgaming Bingo Network following a change to its licence conditions.
Quickfire live on Strendus -
Quickfire powered by Microgaming is extending its reach in the LatAm region with the signing of Strendus. Strendus is the online division of Logrand Entertainment Group. The group comprises several companies that operate gaming and entertainment establishments in Mexico, running 14 land-based casinos in total.
Quickfire content live on BetatHome -
Online gaming and sports betting company bet-at-home was founded in 1999. Today the company has 4.8 million registered customers around the world, offering sports betting, casino, live casino, Vegas games, poker and virtual sports.
Microgaming has donated £30,000 between four charities -
Gift of Giving provides Microgamingís customers the opportunity to vote for one of several charities in their region. In lieu of Christmas gifts, £30,000 is split equally between four global regions: Isle of Man, UK and Europe, Africa, and Rest of the World.
Entertainment Betting Odds: 90th Academy Awards -
The Shape of Water leads Sundayís 90th Academy Awards (8 PM ET, ABC) with 13 Oscar nominations, but when it comes to Best Picture, this highly-acclaimed film is a +140 second-favorite behind Three Billboards Outside Ebbing, Missouri at Ė115.
Fair Play Bets and QuickFire in Deal -
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Cavaliers Aim to Take Down Wizards on 2/22/18 -
The Cleveland Cavaliers have looked like a different team since making their moves at the trade deadline. The Washington Wizards are up next for the Cavaliers, who will be at home after the All-Star break.
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