Inside Asian Gaming

INSIDE ASIAN GAMING | December 2012 44 REGIONAL BRIEFS Pokie Reform Comes to Australia Australia’s Senate has passed legislation requiring all slot machines to be compatible with a pre-commitment system and display electronic warnings about the dangers of gambling. Under the plan, ATM cash withdrawals will be restricted to A$250 at non-casino gaming venues, but EFTPOS services will be exempt. The changes give members clubs, which house most of the country’s machine games—“pokies,” as they’re popularly known— an extra two years to install pre-commitment technology, which requires gamblers to pre-set the amount of money they are prepared to lose. Reformers had demanded mandatory pre-commitment technology nationally by 2014, but Prime Minister Julia Gillard opposed it. Still, Independent MP and industry critic Andrew Wilkie said passage sets an important precedent for federal intervention on gambling. Fellow anti-gambling crusader and Independent Senator Nick Xenophon voted against the legislation, calling it “a loss disguised as a win”. “The measures contained in this legislation are a passing nod to the issue,” he said. “It could be argued that something is better than nothing, but in this case the something is worse than nothing.” He said it was his fear that if the opposition were to take over the government they “would shut down further meaningful reform”. Japan Casino Bill Expected in New Year Analysts at Union Gaming Research Macau believe the prospects are “high” that casino legalization will pass in Japan if a bill is submitted by the spring. In themidst of elections thismonth todetermine the composition of the Diet, the country’s parliament, and a likely return to power of the Liberal Democratic Party, gaming proponents are working to build consensus on a draft bill, UGRM says. “Importantly, we believe that the likely make-up of the next government could offer the best chances to date for gaming expansion in Japan.” Assuming passage in the new year, another “more-detailed” bill would follow in 2014, UGRM says, which in turn would be followed by an RFP process. “In a best-case scenario, we think late 2018 is the earliest a casino is likely to open in Japan.” It is also possible, the firm says, that the governors of both Tokyo and Osaka could be elected to the Diet, along with the mayor of Osaka. These are the two cities usually mentioned as the most likely to receive licenses for large-scale integrated resorts, with a handful of smaller IR licenses possibly awarded to other locations. UGRM believes consensus is forming around a 25% tax rate with the possibility of different rates on VIP and mass market revenue as in Singapore and the Philippines. But Macau’s junket-based business model probably won’t fly. “Given what would likely be a strong aversion to even the specter of increased organized crime, we suspect Japan will follow the Singapore model. A Macau-style junket system would likely be a non-starter,” the firm said. “Given the success Singapore has seen in terms of attracting regional VIP players in the absence of a traditional junket environment, we think the Japanese government will subscribe to this model.” Macau Greeting More Non-Gamblers The proportion of visitors coming to Macau primarily to gamble is declining, according to the results of a quarterly survey conducted by the city’s Institute for Tourism Studies. Based on interviews with 1,000 visitors, the institute’s “Macau Visitor Profile Survey” shows the proportion of visitors stating gambling as the primary purpose for their visit stood at 7.1% and 7.2% for the second and third quarters, considerably less than 2010’s average of 12.7% and 8.2% for last year. Only 4.6% of first-time visitors in the third quarter claimed to be in Macau for gambling, while close to one in four visitors stated they were coming mainly for pleasure or vacation purposes. “These latest figures likely reflect a growing mix of visitors coming for leisure and recreational opportunities in Macau,” the researchers wrote. “It is quite possible that tourist diversification is beginning to take hold.” Crown Perth OK’d for More Games Crown Casino—formerly Burswood—at Perth has received permission to increase the number of electronic gaming machines and table games. The Gaming and Wagering Commission of Western Australia approved an increase of 500 slots over the next five years and 100 extra tables over the next four years, subject to Crown Perth proceeding with construction of a luxury hotel at the complex. The commission says it took a number of issues into consideration when making its decision, including the state’s lower rate of problem gambling compared to other states and territories. Upon completion, the casino will have a total of 2,500 electronic gaming machines and more than 300 gaming tables. Julia Gillard Artist’s impression of the proposed Crown Perth redevelopment