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Macau casino stock prices surge after easing of travel restrictions

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In a rare piece of positive news for the gambling and casino industry, casinos in Macau saw their stock prices surge this week after the neighboring province of Guangdong eased travel restrictions to allow more people to visit the gambling capital of the world.

Macau has since 2007 generated more gambling revenue than any place on Earth, outstripping Las Vegas. However, the onset of the coronavirus pandemic, and the subsequent travel bans, have severely damaged the Chinese region economically.

Figures from June reported a 97 percent decline in casino revenue year-on-year, the lowest decline in Macau’s history, while last month’s reports meant Macau suffered year-on-year decline of more than 90 percent for three successive months.

Macau’s financial difficulties during the Covid-19 outbreak have been reflected in other gambling hotspots, including Las Vegas and New Jersey, with thousands of jobs lost and thousands more at risk.

However, this week stock prices rebounded in a big way, offering a glimmer of hope that Macau and its leading casinos are on the road to recovery. Galaxy Entertainment closed at a 6.2 percent gain having at one point surged to 11.1 percent, while Sands China – another prominent company on the Macau strip – closed at a five percent increase.

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The stock surges came after Guangdong ended its 14-day quarantine requirements for visitors crossing the Guangdong-Macau border, starting from July 15. Instead of a mandatory 14-day quarantine, visitors must now hold “green” health cards and present a negative Covid test that proves they tested negative within the seven days prior to arriving in Macau.

Considering that Guangdong – with a population of more than 113 million people – was responsible for around half of Macau’s annual visitors last year, this easing of restrictions is a massive boost to Macau’s economy, and economic experts believe the city will start to rebound as a result.

“We expect the removal of the quarantine requirement will lead to a rebound in Macau’s gross gaming revenue following a 77 per cent drop in the first half of 2020, and help reduce gaming operators’ cash burn,” said Sean Hwang, an analyst at Moody’s Investors Service.

“However, we expect the recovery in Macau’s gaming market to be slow, given continued restrictions and new requirements for travel, sluggish economic growth across the region, and the public’s lingering fear of contagion.”

Macau’s biggest strength in ‘normal’ times has proved to be its biggest weakness during the pandemic. A special administrative region in China, Macau welcomes around 35 million visitors each year, the overwhelming majority of whom visit to gamble and enjoy the entertainment associated with the casino resorts.

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As the only region in China with legal gambling, Macau has had a near monopoly on Chinese visitors who wish to gamble, plus the many international tourists who visit to enjoy the luxury and decadence on offer in the city.

However, as travel bans ground domestic and international tourism to a halt, Macau’s over-reliance on the casino industry has become horribly exposed. While casino operators in North America, Europe, and other parts of Asia have been able to pivot toward online casino betting services to help soften the economic blow, Macau has been left stranded due to China’s restrictions on online gambling.

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Macau’s reliance on casino revenue has not been lost on the region’s head of government, Ho lat Seng, who in April criticized the “excessive dependence” on the gambling industry as it became clear just how badly hit Macau had been by the economic effects of the pandemic.

“With the outbreak of the novel coronavirus, the gaming and tourism industries registered significant declines, with profound impact on industries connected to these areas,” Ho said. “This demonstrates, once again, the vulnerability and the enormous risks of the Macau economy’s excessive dependence on gaming and tourism industries.

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“The healthy and stable development of the gambling and tourism sector will continue for a certain period of time and will be the basis of the continued stability of the economy of Macau. Nevertheless, if the monolithism of the industrial structure remains unchanged, it will inhibit the sustainable development of Macao’s economy.”

While Macau undoubtedly needs to do more to diversify its economy, the easing of travel restrictions and the stock market surge for casino operators at least offers some good news after months of nothing but doom and gloom.

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Delasport Signs a Sports Deal with Philippines’ Leading Regulated Operator OKBET

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Award-winning iGaming supplier in regulated markets Delasport has just signed a sports deal with Philippines’s number 1 operator OKBET.

The leading software developer will provide sports-services to their new partner, enhancing the experience of sports bettors in the Philippines even further.

“We’re proud to supply our services to such a strong partner as OKBET, and to an exciting and steadily growing market as the Philippines”, Delasport’s CEO Oren Cohen Shwartz comments on the agreement.

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Regulated Philippines is marking a stable 5% year-to-year growth with the number of users expected to reach almost 6 million by 2029.

This is yet another deal for Delasport, with the global supplier’s expansion in regulated markets happening at full force.

Same goes for OKBET who have been holding the number one operator spot in iGaming in the Philippines for a long time now.

“I’m excited that OKBET and Delasports are joining forces to redefine the landscape of online sports gaming in the Philippines”, OKBET’s COO Wayne Thong also comments on the deal. “This partnership combines OKBET’s local market expertise with Delasports’ global industry leadership, creating new opportunities for innovation and customer satisfaction. OKBET and Delasports share a common vision for the future: a vibrant and dynamic platform that caters to the diverse interests of sports enthusiasts. By combining cutting-edge technology with a deep understanding of user preferences, this collaboration aims to set new standards for the industry.”

The post Delasport Signs a Sports Deal with Philippines’ Leading Regulated Operator OKBET appeared first on European Gaming Industry News.

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Uzbekistan Legalises Online Betting and Lotteries

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President of Uzbekistan Shavkat Mirziyoyev has signed a decree on April 19 titled “On Measures to Improve the Regulation of the Organization and Conduct of Lotteries and Risk-Based Games in the Republic of Uzbekistan”. The document abolishes the ban starting from January 1, 2025, and introduces a legal framework for the organisation of risk-based games online and betting activities.

The issue of legalising betting activities has been a long-standing topic in Uzbekistan. In December 2019, the president signed a decree to legalise bookmakers, but this decision was revised in April 2022. In April 2023, the head of state instructed the development of a regulatory framework for betting activities.

The National Agency for Advanced Projects (NAAP), the authorised state body for regulating and licensing activities in this sector, provided insights on the necessity of introducing state regulation in the gambling sector in Uzbekistan. The agency emphasised the need to prevent illegal gambling businesses, protect players’ rights and generate additional income for the state budget.

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The president’s decree aims to introduce advanced foreign experience and modern technologies in regulating the organisation of risk-based games and lotteries to increase investment attractiveness, tourist potential and attract additional funds to the country.

The measures outlined in the decree include the creation of legal foundations for the legalisation of activities related to risk-based games online, betting activities, and lotteries, implementation of mechanisms to protect citizens’ rights and interests, prevention of gambling addiction and the generation of additional state budget revenue.

Starting from January 1, 2025, a taxation system will be introduced for license holders, where organisers of online games, betting activities and lotteries will pay a turnover tax. This system aims to prevent the concealment of taxable revenue and is expected to generate additional tax revenues for the state budget.

Overall, the implementation of the decree is intended to establish a reliable foundation for the legal regulation of activities related to organising risk-based games online, betting activities and lotteries in Uzbekistan, protect citizens’ interests, combat gambling addiction and provide additional sources of income for the state budget.

The post Uzbekistan Legalises Online Betting and Lotteries appeared first on European Gaming Industry News.

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Indonesia Establishes Task Force to Combat Online Gambling

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Indonesia’s Ministry of Communications and Information Technology (Kominfo) has revealed plans to establish a task force to combat online gambling.

In a statement, Kominfo said the task force would comprise representatives of multiple government agencies including the Financial Services Authority (OJK), Financial Transaction Reports and Analysis Centre (PPATK) and the police.

It will also work with Interpol to combat cross-border cases given the government’s lack of past success in blocking foreign operators.

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“Kominfo will oversee the digital space, OJK will manage accounts and PPATK will handle fund flows, and the police will carry out arrest and investigation duties,” said Usman Kansong, the Ministry’s Information and Public Communications Director.

Minister Budi Arie said: “The Ministry has also issued a warning to all social media platforms, cellular operators and internet service providers not to facilitate any form of online gambling promotion. We have done everything within the authority of Kominfo.

“We from the Ministry of Communication and Information are fully determined. At the beginning of the week I gathered all our teams at Kominfo to work together to eradicate online gambling.”

The post Indonesia Establishes Task Force to Combat Online Gambling appeared first on European Gaming Industry News.

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