Inside Asian Gaming

INSIDE ASIAN GAMING | December 2010 44 Briefs Regional Briefs Sri Lanka bows to the inevitable on casino gambling Last month’s final passing of a law to legalise casinos in Sri Lanka looks less about opening up a new market and more about acknowledging a fait accompli and regulating and taxing what is already there. The Casino Regulatory Bill has been advertised by the government as a move to boost tourism. In reality, casinos are already in existence and tourists minded to visit them are already passing through their doors, according to the country’s media. The move may be more a tax raising exercise after 26 years of financially and morally draining civil war between the majority Sinhalese and the minority Tamil community. ‘This will enable the government to streamline all casinos, which are now being monitored under various state institutions,’ Deputy Finance Minister Sarath Amunugama told parliament members before the bill was passed, according to a report in the Asian Tribune . The timing of the Bill is interesting, however. The war came to an end in May 2009, and since then Sri Lanka has been rebuilding its economy and soliciting fresh foreign investment. Local, small-scale operators currently populate the gambling hall and casino market that grew up by default in the years of civil strife. One question is whether the Sri Lankan gaming market can attract and subsequently support large scale international gaming investment of the sort seen in the Philippines at the US$700 million Resorts World Manila. Sri Lanka is certainly attracting investor interest in the mainstream hotel sector. In August this year, Hong Kong-based Shangri-La Hotels said it wanted to build a new hotel property there. The company’s chairman, Kuok Khoon-Ean, flew to Sri Lanka that month for talks with senior government officials. Mr Kuok is the son of Malaysian entrepreneur Robert Kuok, whose name was recently linked briefly (and erroneously) with a buy out of the Philippines’ gaming regulator and operator Pagcor. Sri Lanka’s government has stated it aims to generate US$2 billion annually in tourism receipts and 2.5 million tourists by 2016. In 2009, the country earned US$350 million from tourism. ATRONIC appoints Marcel Heutmekers Senior Director for Latin America and Asia ATRONIC International announced that Marcel Heutmekers has been named Senior Director for Latin America and Asia. Marcel will report directly to Walter Bugno, CEO of Lottomatica Group’s Gaming Division, which comprises ATRONIC and SPIELO. As Senior Director for Latin American and Asia, Marcel will be responsible for leading ATRONIC´s Latin American and Asian teams, and for developing strategies to further support and grow ATRONIC’s performance and presence in these evolving markets. Marcel´s experience spans 13 years in the gaming industry, including his leadership at Holland Casino’s slot department, where he oversaw an installation base of 7,000 machines across 14 casinos. On the supplier side, Marcel previously worked with ATRONIC where he headed new business development and was responsible for the opening of various new markets across the world, as well as the introduction of new business models. His combined experience as both an operator and supplier give him invaluable insight into operator requirements, and how player behavior and desires have changed over time. In Asia, Lai Fatt Chiang will continue overseeing sales for the region as General Manager Asia, reporting to Marcel. Chiang has been with ATRONIC since March 2009 and has a detailed knowledge and understanding of the Asian gaming market and its specific requirements, thanks in part to his previous assignment with Asian gaming distributor RGB. SJM 3Q profit up 528% SJM Holdings Limited announced results for the quarter ended 30th September. The group’s gaming revenue in the quarter was HK$14.0 billion, an increase of 69% from HK$8.3 billion in the year-ago quarter. Adjusted EBITDA of the Group for the period was HK$1.2 billion, an increase of 135% year-on-year. Profit attributable to shareholders was HK$867 million, an increase of 528% from HK$138 million in the year earlier quarter. SJM’s gaming revenues accounted for 30.4% of Macau’s casino gaming market during the quarter, as compared with 26.8% in the year earlier quarter. The group maintained a strong and liquid financial position, with HK$13.5 billion of cash and HK$4.4 billion of debt (excluding convertible bonds) as at 30th September 2010. Over half of SJM’s gaming revenues in 3Q 2010 was generated at so-called satellite casinos, which are generally run under SJM’s licence but owned and controlled by third parties. Satellite casinos (including fourteen third party-promoted casinos and one slot hall) accounted for HK$7.7 billion or 55.0% of SJM’s total gaming revenue in the quarter. SJM’s flagship Grand Lisboa casino generated HK$3.6 billion, or 26.0% of the group’s gaming revenue, with the remainder Marcel Heutmekers Grand Lisboa