Inside Asian Gaming

June 2012 | INSIDE ASIAN GAMING 49 Briefs a Macau casino license. The suit, originally filed in the US was refiled in Macau, where it is still pending. In an email dated 30th September, 2009, Mr Alves told Mr Jacobs he was in Beijing to attend the 60th anniversary of the People’s Republic of China and that “someone high ranking in Beijing” invited him to settle the two issues. “He wants me to talk to Mr Adelson and find an agreement, ASAP, for the lawsuit,” the email said. “At the same time,”Mr Alves wrote, “he told me that there is a way to get the necessary permissions to allow the sale of the serviced-apartments.” On 4th October and 30th October, 2009, Mr Alves met with Mr Hao and several associates at the Hotel Fortuna in Macau to discuss a deal in which Mr Hao would receive $100 million to settle his lawsuit, according to a person with knowledge of the meetings. As part of the deal, senior Macau government officials would ensure LVS won approval to sell the apartments, this person said. On 10th December, 2009, Mr Alves sent another email to Mr Jacobs, saying he was returning to Beijing the following day and would have a chance to talk with his “friends” there. “However, what they request is extremely expensive (US$300 million, which includes the closing of the Taiwanese case),” the email said. “Therefore, please think about it before delivering the letter” to top executives at the company, it added. LVS is still waiting to hear whether it can sell the apartments, though some analysts expect it to get favorable word soon. Wynn and fellow casino operator Melco Crown Entertainment Ltd recently said that the government had made clear it didn’t want them to pursue plans to sell apartments similar to those built by LVS. No new offshore casinos in Goa The Chief Minister of the state of Goa in India announced that the government will cap the number of offshore casinos at six, according to a note from Grant Govertsen of Union Gaming Research Macau. This effectively prohibits any new entrants as the state has already issued six licenses to offshore casinos stationed in Mandovi river, adjacent to the city of Panaji. Currently, there are roughly 20 casinos in Goa, 14 land-based (in five-star hotels) and six offshore (floating in the Mandovi river). Recently, officials have also banned local entry, while at the same time reducing the casino entry fee from Rs 2,000 (US$40) to Rs 500 ($10) per head. Goa is India’s richest state (GDP per capita at 2.5x the country average) and the only state where gambling is legal. Annual gaming revenues in Goa are estimated between US$35 million and $40 million, but the market is growing rapidly. While casino gaming is at a ripe stage in India, it is estimated that Indians wager close to US$15 billion annually, most of which is on lotteries (~US$12.5 billion) and to a lesser degree on horse racing (~US$250 million annually). Union Gaming Research Macau believes the cap will, at the margin, be beneficial to regional gaming operators in Cambodia, Malaysia, Macau and Singapore. In 2011, around 170,000 and 870,000 visitors came to Macau and Singapore from India respectively. This represented 0.7% and 6.6% of Macau’s and Singapore’s total visitation. Macau slot parlor restrictions to take effect by late 2014 Recent government commentary suggests that the regulations that will restrict slot parlors from operating in residential areas will be in place before the next government takes over at the end of 2014, according to a report from Union Gaming Research Macau’s Grant Govertsen. The bylaw is still being drafted and once it is passed, the government will work with casino operators on the removal of the slot parlors. Only two slot parlors will face closure under the new guidelines, Melco Crown’s Mocha Marina Plaza and SJM Holdings’Yat Yuen Canidrome Slot Lounge (at the dog track), both located on the Macau peninsula. The report notes:“We believe the closure of these two slot parlors will have no measurable impact on Melco Crown and SJM Holdings. We estimate that the Mocha Marina Plaza, one of MPEL’s ten Mocha clubs, contributes approximately 0.5% to EBITDA, the loss of which will be more than offset by the recently opened Mocha Macau Tower (September 2011) and Mocha Golden Dragon (January 2012). Yat Yuen Canidrome Slot Lounge is one of SJM’s three slot lounges, and we estimate it contributes significantly less than 1% of EBITDA.” TransAct appoints Rashid Suliman sales manager TransAct Technologies Inc, a global supplier of market-specific printers for transaction based industries, announced that Rashid Suliman has been appointed SalesManager,GlobalGaming for the Asia Pacific region, reporting to Tracey Chernay, ExecutiveVice President, Sales and Marketing. Mr Suliman will be responsible for sales of the company’s casino and gaming printer products and services across Asia, including Macau, the Philippines, Singapore, Taiwan, Vietnam, Korea and Australia. “Rash is doing an outstanding job in his new assignment. Rashid originally joined TransAct as an independent consultant in August 2011, and has quickly developed key customer relationships with all of themajor casinos, gamingmanufacturers andour distributors,”said Ms Chernay. “Rashid brings his extensive international experience and exposure, along with over 18 years in the gaming industry to our organization and is a welcomed addition to the TransAct team.” Casino Royale, one of Goa’s six offshore casinos Rashid Suliman