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G2E Asia 2024 was perhaps the first, all-out attempt to bring a full-scale B2B gaming event back to Asia since COVID. Turnout was meaningful, if light, and conference content continues to chase new visions for the industry. Overall, and most meaningfully, the excitement among attendees about the future of gaming in Asia was palpable. Following is a quick report of insights gleaned from our time in market and at the event:
Market Movements
It’s well established that recovery from the pandemic in Asia has lagged. While Singapore came out of the box all at once, recovery in Macau is taking some time and, in the process, re-organizing marketing segmentation. Most notably, Asian VIP markets are coming to the realization that Chinese junket play is – at least for now – not a directly accessible market. We have observed three primary responses to this issue:
- A focus on players from other markets, like Korea;
- A renewed interest in non-gaming revenue and mining the mass market; and
- Creative (some might say questionable) workarounds with credit surrogates, like money changers.
Despite amazing year-over-year year growth since 2003 and its record-breaking US$5 billion GGR this time last year, the momentum of the Philippines market is seemingly fleeting. The slight moderation in growth is likely due to a combination of players beginning to spread their play across multiple jurisdictions again, and to a lesser degree, the onset of organized legal online gaming. But by all measures, the market is attractive – notwithstanding certain regulatory challenges where probity is not yet on par with the most highly regulated global markets.
Speaking of highly regulated markets, Australia continues to be persona non grata in the region. This is the fallout of endless probes and government introspection following the revelation of several bad actors in the market over recent years. The hope is that the regulatory regime will regain its mutual trust with the industry and allow new, more modern and diverse developments going forward, a sorely needed change to keep Australian proprieties on par with global IR trends.
Gaming Expansion
New development across the Asian markets is nuanced, but the most compelling breakout market remains Thailand, where progress on the creation of a gaming framework is happening in real time. Questions about the way gaming is implemented, distributed, and in particular, regulated, are being determined as we speak. Several major operators are either engaged or watching closely from the sidelines.
While the UAE has captured everyone’s interest, there is little sense of what its future will look like despite Wynn’s continued progress. Because a second property in Dubai could significantly hinder Wynn’s results, the thinking is that there will be some deal between Emirates to protect partial exclusivity. This would still allow a second property one day, likely in a less directly competitive market such as Abu Dhabi.
Finally, while there were plenty of kudos for MGM continuing its journey in Japan, most are not ready to revisit investing physical, or even intellectual, capital there (again) yet.
Games & Technology
Asia remains a playground for exploring new and expanded forms of electronic gaming technology. While standalone electronic table games still generate interest – particularly in markets that do not offer live table gaming – stadium gaming has overwhelmed some gaming floors. While these games allow lower-tier players to play in high table-minimum casinos with hundreds of kiosks, they are now consuming casino floors. Look to see some of this activity pushed to less premium locations in the future.
Like Europe, Asia has long-established forms of online gaming and sports wagering. Most markets are severely limited in legal offerings, but the emergence of interest in more modern platforms is taking shape.
Finally, the general obsession with AI and all things technology in gaming is pervasive, and it was well-covered at the conference last week. The themes are similar to those in other regions now, where games technology, database player marketing, and analytics are all seen through a common lens. Introducing responsible gaming in this mix is also now catching on in Asia, albeit slowly.
TIG President Michael Soll remains on the ground in Asia. Contact him to learn more about his takeaways from discussions at the event and across the region.
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