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Wednesday 3 March 2021
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  • NEWS
    Korea’s Paradise Co continues upward momentum in February

    Paradise Co continues to slide with February casino sales down 36.5% sequentially

    Imperial Pacific to “vigorously defend” exclusive gaming rights on Saipan

    Imperial Pacific likely to have casino license suspended following admission of multiple violations

    Las Vegas Sands unlikely to return to Japan despite potential Tokyo lure

    Japanese Minister says interest of foreign companies shows Japan’s IRs will be profitable

    4Q20 key metrics for Macau gaming companies

    4Q20 key metrics for Macau gaming companies

    Hong Kong Jockey Club funds development of HK$500 million tower at City University of Hong Kong

    Hong Kong Jockey Club funds development of HK$500 million tower at City University of Hong Kong

    Genting Singapore set to raise US$3.2 billion from Yen-dominated bonds for Japan expansion

    Genting Singapore grants US$5 million award shares to staff and directors

    Trending Tags

    • FEATURES
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      Turning RG Japanese

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      2021: Japan IR – Crunch time part 2

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      10 years ago: Many happy returns

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      RG and the  player journey

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      • PEOPLE
        Home is where the heart is

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        Dave Smith: Smell of success

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        Scientific Games insists liquidity position strong after adding US$480 million in debt, cutting costs

        Scientific Games appoints Eileen Moore Johnson as Executive Vice President and Chief Human Resources Officer

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        Paltronics announces passing of Stephen Cowan, much-admired Managing Director

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        • COLUMNISTS
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          How to set up for IR success

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          Macau: Taking a sensible approach to responsible gaming

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          • TECH TALK
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              Philippines court order preventing new 5% franchise tax could halt POGO exodus

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              • EVENTS
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                • MACAU
                  4Q20 key metrics for Macau gaming companies

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                  Closing all borders not an option despite government order to shutter 41 Macau casinos for 15 days

                  Macau casinos to no longer require negative COVID-19 test result for entry

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                  • JAPAN
                    Las Vegas Sands unlikely to return to Japan despite potential Tokyo lure

                    Japanese Minister says interest of foreign companies shows Japan’s IRs will be profitable

                    IAG Vice Chairman and CEO Andrew W Scott among speakers as Nagasaki hosts first symposium on international tourism HR development

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                    Pixel Companyz reports US$8.8 million loss in FY20 but confident in revenue potential of Nagasaki IR

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                    Lawrence Ho says Melco’s China ties will drive Japanese IR growth

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                      • Singapore
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                      • Vietnam
                      Korea’s Paradise Co continues upward momentum in February

                      Paradise Co continues to slide with February casino sales down 36.5% sequentially

                      Imperial Pacific to “vigorously defend” exclusive gaming rights on Saipan

                      Imperial Pacific likely to have casino license suspended following admission of multiple violations

                      Las Vegas Sands unlikely to return to Japan despite potential Tokyo lure

                      Japanese Minister says interest of foreign companies shows Japan’s IRs will be profitable

                      4Q20 key metrics for Macau gaming companies

                      4Q20 key metrics for Macau gaming companies

                      Hong Kong Jockey Club funds development of HK$500 million tower at City University of Hong Kong

                      Hong Kong Jockey Club funds development of HK$500 million tower at City University of Hong Kong

                      Genting Singapore set to raise US$3.2 billion from Yen-dominated bonds for Japan expansion

                      Genting Singapore grants US$5 million award shares to staff and directors

                      Trending Tags

                      • POWER 50
                        2020 Asian Gaming Power 50: Top of the World

                        Singapore Court of Appeals denies Bloomberry’s latest appeal in long-running battle with GGAM over terminated Solaire agreement

                        Power restored

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                        Trending Tags

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                        IAG
                        • NEWS
                          Korea’s Paradise Co continues upward momentum in February

                          Paradise Co continues to slide with February casino sales down 36.5% sequentially

                          Imperial Pacific to “vigorously defend” exclusive gaming rights on Saipan

                          Imperial Pacific likely to have casino license suspended following admission of multiple violations

                          Las Vegas Sands unlikely to return to Japan despite potential Tokyo lure

                          Japanese Minister says interest of foreign companies shows Japan’s IRs will be profitable

                          4Q20 key metrics for Macau gaming companies

                          4Q20 key metrics for Macau gaming companies

                          Hong Kong Jockey Club funds development of HK$500 million tower at City University of Hong Kong

                          Hong Kong Jockey Club funds development of HK$500 million tower at City University of Hong Kong

                          Genting Singapore set to raise US$3.2 billion from Yen-dominated bonds for Japan expansion

                          Genting Singapore grants US$5 million award shares to staff and directors

                          Trending Tags

                          • FEATURES
                            Uneasy alliance

                            Uneasy alliance

                            Turning RG Japanese

                            Turning RG Japanese

                            2021: Japan IR – Crunch time part 2

                            2021: Japan IR – Crunch time part 2

                            Diving into digital

                            Diving into digital

                            10 years ago: Many happy returns

                            10 years ago: Many happy returns

                            RG and the  player journey

                            RG and the player journey

                            Trending Tags

                            • PEOPLE
                              Home is where the heart is

                              Home is where the heart is

                              Dave Smith: Smell of success

                              Dave Smith: Smell of success

                              Scientific Games insists liquidity position strong after adding US$480 million in debt, cutting costs

                              Scientific Games appoints Eileen Moore Johnson as Executive Vice President and Chief Human Resources Officer

                              Creation theory

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                              Paltronics announces passing of Stephen Cowan, much-admired Managing Director

                              Paltronics announces passing of Stephen Cowan, much-admired Managing Director

                              Dark days

                              POST-COVID2: The most transformative business shock of our lifetimes

                              Trending Tags

                              • COLUMNISTS
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                                OPINION: Japan seeking its pound of flesh

                                Memories of the man that was Sheldon Adelson

                                Memories of the man that was Sheldon Adelson

                                Big money

                                A decade of differentiation

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                                How to set up for IR success

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                                Macau: Taking a sensible approach to responsible gaming

                                Macau: Taking a sensible approach to responsible gaming

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                                • TECH TALK
                                  Scientific Games granted approval for release of third Duo Fu Duo Cai game into Asia

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                                  Two more TVBET card games granted GLI certification

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                                  Scientific Games granted approval for latest Jin Ji Bao Xi game “Singing Cats”

                                  Scientific Games granted approval for latest Jin Ji Bao Xi game “Singing Cats”

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                                  • iGAMING
                                    TVBET expands through Alavara Digital partnership

                                    TVBET expands through Alavara Digital partnership

                                    Live-games integration as an effective marketing tool for increasing bets

                                    TVBET to enter the Montenegro iGaming market

                                    Manila restrictions ease as Duterte implements General Community Quarantine for National Capital Region

                                    Philippine police arrest eight alleged members of POGO-linked “kidnap for ransom” gang

                                    PAGCOR reveals substantial POGO revenue rise in 2018 as enforcement role defended

                                    Philippines court order preventing new 5% franchise tax could halt POGO exodus

                                    MGM Resorts looking to raise US$750 million via senior notes offering

                                    MGM Resorts considering US$13 billion takeover offer for Ladbrokes owner Entain

                                    Evolution launches world’s first online live Craps game

                                    Evolution launches world’s first online live Craps game

                                    Trending Tags

                                    • EVENTS
                                      Macau Wine & Dine returns this week with unique tasting event at Artyzen Grand Lapa Macau

                                      Macau Wine & Dine returns this week with unique tasting event at Artyzen Grand Lapa Macau

                                      Inside Asian Gaming names Portucau as venue for Macau After Dark 8 on 5 March 2021

                                      Inside Asian Gaming names Portucau as venue for Macau After Dark 8 on 5 March 2021

                                      Winter wonderland

                                      Clarion Gaming cancels this year’s ICE London

                                      AIGF leaders join SBC Digital India’s high-level speaker line-up

                                      AIGF leaders join SBC Digital India’s high-level speaker line-up

                                      Winter wonderland

                                      Alex Pratt, Stuart Hunter take the reins as ICE organizer Clarion Gaming announces management changes

                                      Founders of leading Indian gaming companies among speakers at upcoming SBC Digital India

                                      Founders of leading Indian gaming companies among speakers at upcoming SBC Digital India

                                      Trending Tags

                                      • MACAU
                                        4Q20 key metrics for Macau gaming companies

                                        4Q20 key metrics for Macau gaming companies

                                        Closing all borders not an option despite government order to shutter 41 Macau casinos for 15 days

                                        Macau casinos to no longer require negative COVID-19 test result for entry

                                        IAG welcomes sponsors and supporters ahead of Macau After Dark 8

                                        IAG welcomes sponsors and supporters ahead of Macau After Dark 8

                                        Occupancy rate of Macau hotels falls to 40.3% in January

                                        Occupancy rate of Macau hotels falls to 40.3% in January

                                        COVID-19 vaccine could be available by October after “world first” facility in Beijing granted production approval

                                        Macau health authorities to focus on casino workers in second stage of vaccination rollout

                                        Scientific Games granted approval for release of third Duo Fu Duo Cai game into Asia

                                        Scientific Games granted approval for release of third Duo Fu Duo Cai game into Asia

                                        Trending Tags

                                        • JAPAN
                                          Las Vegas Sands unlikely to return to Japan despite potential Tokyo lure

                                          Japanese Minister says interest of foreign companies shows Japan’s IRs will be profitable

                                          IAG Vice Chairman and CEO Andrew W Scott among speakers as Nagasaki hosts first symposium on international tourism HR development

                                          IAG Vice Chairman and CEO Andrew W Scott among speakers as Nagasaki hosts first symposium on international tourism HR development

                                          Gateway to Japan

                                          Pixel Companyz reports US$8.8 million loss in FY20 but confident in revenue potential of Nagasaki IR

                                          Pixel Companyz recruits Japanese Olympic gymnast Kohei Uchimura as ambassador for Nagasaki IR bid

                                          Pixel Companyz recruits Japanese Olympic gymnast Kohei Uchimura as ambassador for Nagasaki IR bid

                                          Akimoto arrested for fourth time in Japan IR bribery case

                                          Trial of Japanese politician Tsukasa Akimoto on bribery charges set for 29 March

                                          Lawrence Ho says Melco’s China ties will drive Japanese IR growth

                                          Lawrence Ho says Melco still committed to Japan but looking for the “right opportunity”

                                          Trending Tags

                                          • REGIONAL
                                            • All
                                            • Africa
                                            • Australia
                                            • Cambodia
                                            • China
                                            • CNMI
                                            • Europe
                                            • Hong Kong
                                            • India
                                            • Japan
                                            • Laos
                                            • Latin America
                                            • Macau
                                            • Malaysia
                                            • Nepal
                                            • New Zealand
                                            • North America
                                            • North Korea
                                            • Philippines
                                            • Russia
                                            • Singapore
                                            • South Korea
                                            • Sri Lanka
                                            • Thailand
                                            • Vietnam
                                            Korea’s Paradise Co continues upward momentum in February

                                            Paradise Co continues to slide with February casino sales down 36.5% sequentially

                                            Imperial Pacific to “vigorously defend” exclusive gaming rights on Saipan

                                            Imperial Pacific likely to have casino license suspended following admission of multiple violations

                                            Las Vegas Sands unlikely to return to Japan despite potential Tokyo lure

                                            Japanese Minister says interest of foreign companies shows Japan’s IRs will be profitable

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                                              Trending Tags

                                              • 中文
                                              • 日本語
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                                              IAG
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                                              Online opportunity

                                              Should Macau look beyond land-based gaming?

                                              Carlos Eduardo Coelho by Carlos Eduardo Coelho
                                              Sunday 8 March 2020 at 22:49
                                              Online opportunity
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                                              In light of the recent 15-day closure of Macau’s casinos, MdME’s Carlos Eduardo Coelho presents his case for authorities to consider allowing online gaming.

                                              Imagine a scenario where Macau GGR drops 95% year-on-year, where its hotel occupancy drops to 16%, where 28 hotels stop taking guests, where daily visitation falls to an all-time low of just 2,600 tourists and where all 41 Macau casinos are shut down.

                                              If the Managing Editor of IAG had read this article a month ago, it would sound so unbelievable he would ban me from writing ever again! Unfortunately, this is the scenario that has faced Macau over the past month.

                                              The outbreak of the novel coronavirus (COVID-19) in mainland China severely impacted Macau’s gaming industry and forced it to face a new social and economic reality when Chief Executive Ho Iat Seng announced the closure of all casinos for 15 days from 5 February 2020.

                                              “This is a difficult decision, but we have to do it, for the health of our Macau residents,” he said during the press conference where the bombshell announcement was made.

                                              Although such a decision is not unprecedented – authorities ordered the temporary closure of all casinos for 33 hours during Typhoon Mangkhut in September 2018 for safety reasons – the duration of such closure is unheard of.

                                              Before the casino closure was announced, mainland Chinese authorities had already stopped issuing individual visas for tourists coming to Macau, with no outlook as to when such decision shall be lifted. Ferry services to and from Hong Kong were suspended and several countries and regions forbid or limited travel to and from Macau.

                                              It is well known that the gaming industry in Macau is highly dependent on visitors from mainland China (from a total number of 39 million visitors that entered Macau in 2019, more than 27.5 million were from the mainland). More than 80% of Macau’s annual government revenue derives from the special gaming tax and other contributive obligations of the gaming concessionaires.

                                              The actual financial impact of this business disruption is still unknown: as a comparison, the SARS outbreak caused more than US$50 billion of damage to the global economy according to the World Economic Forum, while the brief 2018 closure cost Macau an estimated US$184 million in revenue.

                                              Recent forecasts suggest Macau’s GGR for the first quarter of 2020 might decrease by up to 50% year-on-year, there being no great expectation of a significant turnaround in the near term. All estimations as of this stage are wild guesses and completely dependent on two major variables, the re-opening of the casinos and, most importantly, the lifting of travel restrictions imposed on mainland citizens.

                                              One thing is certain: this new reality has exposed the frailty of Macau’s economy and its long-discussed overreliance on the brick-and-mortar gaming industry.

                                              WHAT SHOULD MACAU DO?

                                              What should Macau do now? All stakeholders within the industry are well aware of the efforts to push forward economic diversification aimed at steadily shifting Macau’s focus from a gaming centric city to a tourism centric one (focusing on MICE, Entertainment, F&B). At the same time, other alternatives are being explored (financial services hub, platform for the Portuguese speaking countries, Greater Bay Area integration). Such efforts should be praised because they are indeed the way forward. However, a tourism driven economy is still, by definition, one that is reliant on people coming to Macau. It is, therefore, still exposed to disruptive factors that prevent or disincentivize travelling. As to the other alternatives, their outcomes are uncertain, and it will take time (and money) to see them through.

                                              Let’s face it, Macau is a gaming market and gaming will continue to be its economic engine, hopefully with a lower degree of dependency. Given Macau’s reality, and despite the non-gaming efforts that should continue and be incentivized, Macau authorities could also consider, as a complement (and not as an alternative), diversification within gaming. It may therefore be time to consider the possibility of allowing online gaming operations in Macau.

                                              ONLINE GAMING

                                              Jason Ader, former board member at Las Vegas Sands, told CNBC the recent virus outbreak has pushed gamblers to illegal online gambling and to the only market within Asia where online gambling is regulated: the Philippines.

                                              “Daily online gambling is up 90% over the Lunar New Year holiday compared to last year,” he said.

                                              Today online gaming is widespread around the world and is a reality Macau cannot ignore. According to a report produced by Edison Investment Research, the global online gaming market generated £40 billion of gross gaming revenues (GGR) in 2018. The shift towards online gaming is being driven by different factors, in particular a rising mobile penetration (the advent of a mobile generation), product innovation and, very importantly, the introduction of local regulation across a growing number of countries.

                                              However, the recent trend within Asia is going in the opposite direction, largely driven by a recent crackdown on online gaming promoted by mainland authorities. Late last year, Cambodia declared a ban on all its online operations from January 2020 onwards. Within the same period, the Philippines issued a moratorium on new online licenses. Even in Macau, our regulator has been increasingly scrutinizing online practices focusing on the illegal use of the Macau Gaming Concessionaires branding or protected trademarks, via online gambling services.

                                              I understand the concerns underlying mainland policies. It is argued that the rise of online gambling has resulted in an increase in criminality and social problems in China. Several media outlets have posted that online gambling connected with telecom fraud has “caused huge losses to the victims and their families.” It has been further conveyed that this practice creates notorious loopholes regarding Know Your Customer protocols, being therefore dubbed as a channel for money laundering (because it allows players to conceal their identities).

                                              Despite the assumed mainland policy, IAG reported in its October 2019 edition, “Several sources suggest that the cross-border casino market, including online gaming and proxy betting, has surpassed the gross gaming revenue of land-based casino in Asia, exceeding US$50 billion, much of it flowing from China.”

                                              The Philippines is reaping the benefits of regulating online gaming under the POGO regime implemented by PAGCOR chair Andrea Domingo in 2016.

                                              No doubt the above malpractices and social harms should be prevented and Macau authorities should do their part in punishing illegal behaviors. However, an absolute prohibition must not be (as it is often not) the only solution. Provided stringent regulation is put forward (addressing KYC and AML concerns, protecting those involved, establishing limits for operating and engaging in online gaming), and that selected geo-blocking restrictions (including to mainland customers) are enforced, Macau does not need to also be an addressee of mainland policies.

                                              ONLINE GAMING ADVANTAGES

                                              The advantages of online gaming to Macau are quite straightforward: first and foremost, it could generate an additional tax revenue stream, one that is not dependent on an influx of tourists. That revenue does not need to cannibalize the existing land-based market. In fact, the revenue already exists. It is simply not flowing to Macau and, in many cases, is being pocketed by operators that could not care less about harm minimization and compliance.

                                              Secondly, it allows our gaming industry to tap into new player demographics. Specifically aimed at all Millennials and Generation Z, online gaming could be key to securing a new generation of customers: one that may not be interested in sitting at a rowdy baccarat table. It opens countless opportunities to experiment with new games and technologies.

                                              Lastly, online gaming may help create hundreds (if not thousands) of high skilled jobs in the sector. The type of jobs may span from gaming developers and engineers to professionals in IT, marketing, financial services, management, auditing, to other ancillary services. Additional high-skill jobs could be created to support the necessary regulatory and technological infrastructure to effectively regulate online gaming. If there is a Labour policy requiring dealers to be Macau residents, why not a similar policy applicable to the software engineers that get these operations up and running?

                                              In a regulated environment, all the above could be achieved, with full consideration for the drawbacks that have been identified. Betting limits can be placed on a player’s account, like setting deposit limits, which can prevent problem gambling. This measure allows for protection of minors and vulnerable people, preventing excessive and unregulated gambling and addictive behaviors. Depending on the technical framework used, online gaming may be better monitored than a land-based operation, therefore addressing money laundering concerns and ensuring security and public order.

                                              THE LEGAL FRAMEWORK

                                              Macau’s gaming framework is not unfamiliar with online gaming.

                                              Online gaming is referred to under Law 16/2001 (Macau Gaming Law) as “interactive gaming” and defined as the playing of games of chance that meet the following criteria: (i) they are offered in Macau casinos in the form of table games or gaming machines; (ii) they offer a prize in cash or in kind that can be won in accordance to their respective rules; (iii) players participate by means of telecommunications (including telephone, fax, internet, data networks and video or digital data transmission); and (iv) players make or agree to make payments in cash or in kind to play the game.

                                              The commercial operation of online gaming can only be pursued by privately owned entities that have been granted a concession to that effect, through entering into a concession contract with the Macau Government (Section 4 of Macau Gaming Law). However, the Macau Government has not yet issued regulations governing the concession and operation of online gaming (and has not launched a tender to grant these concessions). Additionally, gaming concessionaires cannot operate interactive games.

                                              Further to this, the exclusive operators of horse racing and sports betting can offer online wagering limited to the land-based competitions they already offer. In particular online betting is already (but only) permitted in the following categories: (i) sports betting on soccer and basketball; and (ii) horse race betting.

                                              WHAT’S THE WAY FORWARD?

                                              Discussion and preparation for the term of the current gaming concessions (set to expire in 2022 unless exceptionally extended) is already underway, paving the way for what is expected to be the brick-and-mortar market in the near future. Why not add to those discussions the possibility of regulating the offer of online gaming operations in Macau? And why not further consider allowing the incumbent sports betting operator to expand its activities by offering a myriad of new sporting possibilities (tennis, racing events, volleyball).

                                              Such discussions could also revisit the current prohibition of gaming concessionaires running online operations. Why not allow them to operate online or crossover environment operations? The first draft version of Macau Gaming Law foresaw a preemption right for land-based concessionaires to run such operations. Provided adequate consideration is given to the interests of Macau and its residents, why not?

                                              If there is one thing we must draw from the current reality it is that Macau should prepare its economy and society to face disruptive events, such as COVID-19. That will take a collective effort, and an honest debate, between regulator and operators and between the Macau government and Beijing.

                                              We must all think outside the box and that means looking beyond bricks-and-mortar. Macau has created the most successful land-based gaming market in the world. It may do the same online.

                                              Macau Authorities should not render meaningless Section 4 of Macau Gaming Law. Debate should be fostered – and not limited – in focused events, following which authorities should take an actual stand and put the idea to Macau residents. Online gaming may not be the cure to Macau’s economic dependency but it sure could be a strong palliative.

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                                              Carlos Eduardo Coelho

                                              Carlos Eduardo Coelho

                                              Carlos is a key contact in MdME's Gaming practice. He provides corporate and regulatory assistance to casino operators, sports betting licensees, global gaming exhibitions organizers, online and mobile gaming companies, HK listed companies with gaming interests all over Asia, gaming equipment manufacturers, gaming sector investors and other relevant players in the industry.

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                                              by David Bonnet
                                              Wednesday 3 February 2021 at 17:43

                                              Japan’s prefectural governments may want to reconsider some of the onerous developer impact fee requirements imposed on potential operating partners as a condition to apply for one of the country’s three coveted casino licenses. At last, Japan’s much delayed licensing...

                                              Memories of the man that was Sheldon Adelson

                                              Memories of the man that was Sheldon Adelson

                                              by Niall Murray
                                              Monday 18 January 2021 at 13:55

                                              IAG guest columnist Niall Murray offers his thoughts on Sheldon Adelson after his passing last week Sheldon G. Adelson was a unique and remarkable man. The groundbreaking visionary, pioneer and wildly successful serial entrepreneur was constantly scanning the horizon for...

                                              Big money

                                              by Steve Karoul
                                              Thursday 14 January 2021 at 14:52

                                              “Even in the high tech world of today’s casino operations, sometimes it‘s the simplest solutions that work best” says industry veteran Steve Karoul. This has been a very volatile year for a number of reasons, not least of them the...

                                              A decade of differentiation

                                              A decade of differentiation

                                              by David Bonnet
                                              Thursday 14 January 2021 at 12:40

                                              As we head towards a post-COVID world, casinos must follow the lead of other gaming and entertainment sectors by diversifying their offerings and exploring new verticals. As the millennia’s third decade arrives, (that’s right – it starts in January 2021...

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