Inside Asian Gaming

September 2014 inside asian gaming 59 Joey Lim Managing Director and CEO Donaco International In Donaco International, Asian gaming has a new player— small, nimble, opportunistic and gifted by way of 36-year-old CEO Joey Lim with a stellar pedigree. Mr Lim’s uncle is Genting Group Chairman Lim Kok Thay and Sydney-based Donaco went public on the Australian Stock Exchange in its current form in February 2013 with the Lim family in control of 51.5% of the shares and a focus on pursuing niche casino projects, “boutique,” as the company describes them, principally in Southeast Asia. Mr Limwas all of 24 and not long out of university with a computer science degree when he founded Donaco as a mobile technologies provider in partnership with his legendary grandfather, Genting founder Lim Goh Tong. But like his grandfather and his uncle he was quick to size up the potential of Asia’s underserved gaming markets, and early in 2003, within months of Donaco’s founding, he opened the 34-room Lao Cai International Hotel in northern Vietnam on the border of China’s Yunnan province. Donaco has since moved to spin off the tech business, and in the last year raised A$100 million from two share sales, and in May, the company signaled its arrival with the debut of the Lao Cai’s A$57 million, 400-room successor, the Aristo International Hotel. Aristo is equipped to take even more of an outsized share of Vietnam’s US$300 million foreigners-only gaming market than its predecessor. It houses 40 live table games—up from the Lao Cai’s eight, and it’s licensed for up to 10 more—and the results are already in evidence. Visitation is up more than 40% year on year, nearly all from China, and VIP play, which generates about 80% of gaming revenue thanks to partnerships with some 40 junket operators, was up 74% in June and July. Slot revenue has been robust, too, up 144% for the year ended 30th June, likewise due in large part to Aristo’s more expansive offering, and plans are to increase the EGM inventory from its current 58. Its license allows as many as 300. Mr Lim also likes his chances should the Vietnamese government open the domestic market, a possibility that looks increasingly likely. There isn’t another casino in the country closer than 450 kilometers and a new highway designed to link Lao Cai province with Hanoi is scheduled for completion the end of this year. Donaco, in the meantime, has amassed A$98 million in cash, debt is minimal at around $6.7 million, and as Mr Lim puts it, a “strong pipeline of potential deals” is in place. About the Associate Sponsors Aristocrat has built on its Australian market leadership and reputation to become a premium supplier of ground-breaking technologies and services to the international gaming industry. Aristocrat enjoys a well-earned reputation for outstanding performance and strong brand equity in more than 200 jurisdictions around the world. The diverse product line-up extends from electronic gaming machines to complete gaming solutions, including systems, services, electronic tables, and ancillary equipment. Aristocrat aims to be the leading provider of gaming solutions through application of imagination, focus and creativity. www.aristocratgaming.com Konami Gaming Inc. is a complete gaming manufacturer that develops, designs, manufacturers, distributes, sells and services slot machines and an innovative casino management system, SYNKROS™. Konami’s headquarters are located in Las Vegas and its products are distributed throughout North America, Europe, Latin America, the Caribbean and Southeast Asia. www.konamigaming.com Weike Gaming Technology was established in 1998 and has since built a strong reputation for technology and innovation in the gaming industry. It supplies slot gaming machines, electronic table games, gaming management systems and jackpot links to markets that include Singapore, Malaysia, Philippines, Cambodia, Vietnam, Macau and Laos. Weike is dedicated to becoming Asia’s premier casino gaming supplier and is committed to serve the needs of its clients across the region. www.weikegaming.com SEGA SAMMY CREATION INC. is a gaming machine manufacturer that aims to provide casino fans “More Fun! More Excitement!” The company is able to provide the highest forms of entertainment by utilizing the resources, leading technology and rich experience and sensibilities of SEGA SAMMY GROUP. www.segasammycreation.co.jp