Inside Asian Gaming

October 2015 inside asian gaming 7 In Focus bookmakers coming on board. More than half of eSports betting comes from Asia, a quarter from China, according to an Eilers Research white paper issued in August. Across the globe, driven by intense competition among savvy entrepreneurs, sports wagering is racing ahead faster than Usain Bolt (at 0.25:1 to win) stretching for the tape. But not in Macau. As in Hong Kong, sports wagering in Macau remains under a monopoly. SJM Holdings affiliate Macau Slot takes bets on football (soccer to Americans) and basketball at 10 locations around Macau, five in or around casinos operated by SJM or its satellites, as well as through phone and online accounts. Last year Macau Slot delivered revenue of 736 million patacas ($92 million), equivalent to less than 1% of the HK$78.2 billion bet on football alone with its cross-delta counterpart, the Hong Kong Jockey Club. Macau’s government seemingly finds Macau Slot’s performance acceptable since it extended the monopoly for a year, just ahead of the 30th June expiration date. DOUBLE PLAY Gaming regulation experts agree Macau’s monopoly is a bad idea. “No tourist will take a taxi or walk miles across the city to place a bet on tonight’s soccer game,” Macau gaming law expert Jorge Godinho says. “At a time when there is concern about the slowing revenue of games of chance, sports betting seems to be the obvious easy way to raise additional revenue.” University of Macau Associate Professor of Business Economics Ricardo Siu estimates sports wagering in casinos would double the current take. Considering what ending the monopoly has done for casino revenue, that estimate appears conservative. The lack of sports betting in casinos costs Macau more than In-running (or in- game) betting with odds calculated with the real time precision of financial trading and provided by the likes of investment bank Cantor Fitzgerald’s CG Technology, has revolutionized the sports wagering menu and is estimated to account for 75% of the betting handle. “More variety of different games made available to players may be quite likely to elevate the atmosphere of the casino resort as an integrated entertainment venue, hence attracting different type of customers.”