NAGAWORLD raises the bar - inside asian gaming
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
inside asian gaming
Macau VIP
in 2018
BLUE PAGES
The value
of sports
january 2018 betting data
#139 | 30 MOP
NAGAWORLD
raises the bar
www.asgam.com
CONTENTS JANUARY 2018 COVER STORY
Cover Image:
IN FOCUS NagaCorp
Strength in numbers
14 Enter the
Dragon2
NagaWorld’s expansion lifts
the Mekong region’s largest
10 Breakfast Briefs integrated resort and
Phnom Penh into the top
IN FOCUS tier of regional destinations,
with an increasing focus on
22 Strength in numbers
Macau’s VIP segment has been historically volatile, but has
Chinese tourists.
surprised with the sheer strength of its resurgence in 2017. What
can we expect in 2018?
BLUE PAGES
28 Data driven
From the traditional betting habits of Europe to the expanses
of Asia, data analytics firm BettorLogic is showing how
the correct use of data can provide benefits to sportsbook
operators and customers alike.
THE DISMAL OPTIMIST
34 The rise of Chinese
technology and the
US response
In his latest column for Inside Asian
Gaming, Dr Peter T Treadway explores
the rise of Chinese technology and its
long-term implications
KEEN OBSERVATIONS
40 Seperation and instability in the EU
In his latest column for IAG, Dr Brian To considers the potential
impact of recent moves for independence within the European Union.
TECH TALK
44 Aristocrat’s European vacation
Aristocrat will be showcasing some of its strongest
performing Asian concepts at this year’s ICE Totally Gaming
trade show in London.
46 Mission: Macau
International Game Technology is confident its new range of titles
developed specifically for Asia will make a major impact when
deployed in Macau next year.
50 EVENTS CALENDAR
EDITORIAL DIGITAL DISTRIBUTION
Managing Editor Director of Digital Business Development VP Operations
Ben Blaschke Kevin Sam Karen Cheong
Editor at Large Journalist and Social Media Distribution Supervisor
Muhammad Cohen Joseff Musa Emily Vong
Founder and Adviser Distribution Officers
SALES & MARKETING Anson Ip
Kareem Jalal
Peng Cheang
VP Sales and Marketing Mak Man Wah
Graphic Design Winnie Tan
Rui Gomes Hoi Hou Wai
Associate Director Sales
Contributors and Business Development CORPORATE
Paul Doocey Jadeson Ho
Dr Brian To CEO
Steve Karoul Hong Kong Sales Andrew W Scott
Rui Pinto Proença Angel Wong
Chief Financial Officer
Peter T Treadway
Fred Wong
Dr Glenn McCartney Client Relationship Manager
I Nelson Rose Caroline Iau Director and Administrator
Cynthia Cheang
Still photography
IT
Danomad Kuan Accounting and Compliance Director
IT Director Anita Loi
Video Producer Michael Lau
Danomad Kuan Administration Assistant
IT Administrator Suie Ng
Alison Cheang
Executive Transportation Officer
Gary Hong
Advertising Enquiries Subscription Enquiries
Jadeson Ho jh@asgam.com +853 6331 5577 Emily Vong emily@asgam.com +853 6647 4123
Inside Asian Gaming Must Read Publications
Macau registered publication number 295 is a subsidiary of
Published by Must Read Publications Ltd
Macau registered press company number EP98
Press releases – bb@asgam.com | Enquiries – admin@asgam.com
+853 2883 6497 | Price MOP$30
Printed by Cochin Advertising Printing Service Co., Ltd.
Est. Nova da Ilha Verde 180 r/c R
www.asgam.com
ISSN 2070-7681 www.omediamacau.com
6 INSIDE ASIAN GAMING JANUARY 2018
EDITORIAL
Big things in store for Asian gaming in 2018
A
year is a long time in the gaming industry. Take a quick look Also set to open in early 2018 is Melco Resorts’ new luxury Macau hotel
back at the events that shaped our industry in 2017 and it’s Morpheus at City of Dreams. Construction of the Zaha Hadid-designed
hard not to be shocked by just how many industry-changing hotel has been hard to miss over the past two years as it has gradually risen
events have taken place – from the tragic shootings in Manila skyward alongside the Cotai Strip and like MGM Cotai it promises to raise
and Las Vegas to the ongoing saga of Japan’s casino legislation, the the bar once again for Asia’s entertainment hub with its elite combination of
jailing of 16 Crown Resorts staff and the remarkable allegations of fraud premium mass and VIP gaming alongside many other high-end offerings.
against Kazuo Okada by his company (and family). Only a few weeks ago Melco Resorts announced that an entire floor
No doubt we’ll be looking back again in another 12 months’ time at a of Morpheus will be occupied by famous French chef Alain Ducasse via
series of memorable events that will have shaped 2018, but as we warm two restaurants and a bar. Those restaurants will include Alain Ducasse at
into the new year there are already a number of positive developments Morpheus, serving French contemporary haute cuisine, and Voyages by
to look forward to. Alain Ducasse – described as “a unique take on Asian cuisines inspired
The first of these, of course, is the long-awaited opening of MGM Cotai by Ducasse’s travels over the past 30 years.”
in Macau on 29 January. Originally planned to open in 1H17, MGM Cotai – On a personal note, it’s been a long time since I’ve looked forward to
like many of its Cotai IR peers – has suffered a series of setbacks along the a property opening as much as I am looking forward to the launch of both
way, most recently due to damage from Typhoon Hato in August. MGM Cotai and Morpheus.
If anything, however, these delays have only added to the anticipation Openings aside, the other big news story on the horizon for 2018
given the intriguing glimpses MGM China has provided into its new is, once again, Japan. Despite it now being more than a year since the
property’s offerings. Aside from providing another 1,400 much-needed ruling LDP government passed the IR Promotion Bill in December 2016
hotel rooms, MGM Cotai will boast a high-tech interactive theatre with – primarily as a result of legitimate and widespread concerns regarding
a world-first 28 million pixel giant LED screen covering 900 square Japan’s gambling addiction problems – the next step is tipped to be
meters, a series of exciting fine dining restaurants including Cantonese just a matter of months away. Following on from the re-election of
restaurant Chún, Sichuan specialist Five Foot Road, Hǎo Guō which will Prime Minister Shinzo Abe in November, it is expected that a gambling
offer seafood hotpot and regional Chinese cuisine, Miàn Duì Miàn – a addiction bill will be passed imminently followed by the final piece of
24-hour Chinese restaurant serving handmade noodles and dumplings legislation, the IR Implementation Bill, mid-year.
– and Bar Patuá, a contemporary bar serving crafted cocktails using From there, watch the sparks fly as the world’s biggest IR operators
uniquely oriental ingredients such as Chinese tea and herbs. jostle to win one of Japan’s prized casino licenses. It is sure to become
MGM Cotai will also be home to the company’s Mansion product the story of the year.
– an exclusive villa for VIP guests inspired by 18th century Italian
architecture. The Mansion follows on from the hugely successful version Ben Blaschke
at MGM Grand in Las Vegas and is expected to be a game-changer for Managing Editor
MGM China in the VIP space. We crave your feedback. Please email your comments to bb@asgam.com.
www.asgam.com
8 INSIDE ASIAN GAMING JANUARY 2018
JANUARY 2018 INSIDE ASIAN GAMING 9
GALAXY ANNOUNCES PLANS FOR
US$500 MILLION PHILIPPINES RESORT
LEADING MACAU CONCESSIONAIRE like to play a role in the One Belt One
Galaxy Macau
Galaxy Entertainment Group (GEG) has Road initiative and we strongly believe
announced plans to build a US$300 the Philippines has great potential and
million to US$500 million integrated offers attractive opportunities.”
resort on the island of Boracay in the In a separate report, the President
Philippines. of Philippine gaming regulator Pagcor,
As reported by Bloomberg, GEG Alfredo Lim, told Reuters that the new
Deputy Chairman Francis Lui met with resort could be operational within three
Philippines President Rodrigo Duterte years of receiving regulatory approval.
in early December to discuss gaming “It will further improve our tourism
opportunities, with Galaxy in the process sector,” Lim added. “The project is
of applying for a license alongside its intended for foreigners, junket operators
Philippines partner, Leisure & Resorts and high-rollers.”
World Corp. Boracay, an island located in the
In a media statement, Lui said, “As central Philippines, is one of the
you know, China’s relationship with the country’s top tourist destinations and
Philippines has been improving. is famed for its white beaches and
“K Wah Group and Galaxy would turquoise water.
Marina Bay Sands tops list of world’s
most Instagrammed hotels
Singapore’s Marina Bay Sands has been
revealed as the most Instagrammed hotel in
the world.
The iconic hotel topped an official
list unveiled by Instagram, with the more
than one million images uploaded enough
to beat out other globally recognized
landmarks such as the Bellagio and
Venetian in Las Vegas and Dubai’s Atlantis
The Palm.
Notably, seven of the top 10 hotels
were located in Las Vegas, with the
Bellagio sitting in second spot ahead of the
Venetian, MGM Grand, the Cosmopolitan,
Wynn Las Vegas, Caesars Palace and Paris.
In a statement, a Marina Bay Sands
spokesman said, “We thank our guests and ground-up support from guests, celebs, around the world, with standout features
fans for making Marina Bay Sands the most media and influencers alike.” such as The Parisian Macao’s Eiffel
Instagrammed hotel worldwide. We are Social media has become a key Tower providing invaluable marketing
truly grateful for this phenomenal organic, promotional tool for integrated resorts opportunities for operators.
10 INSIDE ASIAN GAMING JANUARY 2018Melco International increases Cyprus IR stake
Melco International Development has
entered into a joint venture investment
agreement with its partner in Cyprus, CPZ,
that will see its stake in their integrated
resort project increase to 75%.
The agreement lays out the details
for the development and operation of an
integrated casino resort in Limassol and up
to four satellite casino premises in Cyprus
via recently established project holding
company ICR Holdings Ltd, with Melco
describing it as a unique and attractive
business opportunity to “develop and
operate integrated casino resorts in Cyprus
… consistent with the Melco Group’s
broader objective of establishing itself as a
global entertainment and gaming operator.”
Included in the joint venture investment
agreement is a subscription agreement
between CPZ and ICR Holdings relating to the
subscription for shares by Melco and CPZ in
ICR Holdings, which will see Melco acquire an
additional 4.26% of the equity in ICR Holdings, of ICR Holdings will have a maximum management of the casino.
taking its stake from 70.74% to 75%. Likewise, of six directors, of which Melco has the Under the shareholders’ agreement,
CPZ’s equity will fall from 29.26% to 25%. right to appoint four and CPZ one. Melco Melco International’s 51.22%-owned
Melco will pay a total of €160 million in will also retain the right to appoint the subsidiary Melco Resorts & Entertainment
cash for the issue of the new shares. Chairman for as long as it holds at least Limited – which operates City of Dreams,
The joint venture investment 10% of the issued share capital of the Studio City and Altira in Macau as well as
agreement also includes a shareholders’ company and to appoint one extra director City of Dreams Manila – will be responsible
agreement which stipulates that the board for as long as it is responsible for the for the management of the project.
JANUARY 2018 INSIDE ASIAN GAMING 11WYNN TO BUY FORMER ALON LAS VEGAS
SITE FROM CROWN RESORTS
THE LAS VEGAS Strip site formerly pegged for Crown Resorts’
ambitious US$2.5 billion Alon Las Vegas project has been snapped
up by Wynn Resorts.
In an announcement, Crown said it had entered into an
agreement with a subsidiary of Wynn Resorts Ltd to sell the vacant
34.6 acre site for US$300 million – around US$100 million less
than had been previously forecast. The transaction is expected to
be completed by late January 2018 with Crown’s share of the gross
proceeds to come in at around US$264 million.
Crown resorts announced in May 2017 its intention to sell the
parcel of land, having previously revealed in December 2016 that it
was backing out of the Alon project.
Wynn Resorts has hailed the acquisition of the land – located
directly across the Las Vegas Strip from Wynn Las Vegas – as a
unique opportunity.
“The agreement completes a unique assembly of contiguous
real estate of approximately 280 acres that spans from the Las
Vegas Convention Center on Paradise Road from the east,
to Industrial Road on the west,” it said. “The future development of the land will further change tourist
“The combined frontage on the Las Vegas Strip is over 3,500 visitation patterns in Las Vegas drawing more visitors to the north
feet, including rights to approximately 1,000 acre feet of water. end of Las Vegas Blvd and its collection of luxury resorts, including
It is adjacent to nearly six million square feet of convention and the existing Wynn Las Vegas and the Paradise Park development
exhibition space. The average cost of the full assembly of 280 acres slated to begin construction in January 2018 on the site of the
is less than US$3 million per acre. former Wynn Golf Course.”
Sega Sammy and Kyoto University to
launch three-year problem gambling study
Japanese gaming machine manufacturer to a person’s engagement in dangerous to deal sincerely with social issues.”
and IR operator Sega Sammy Holdings gambling. The results are expected to “For the introduction of IRs in Japan,
Inc is set to link with Kyoto University to elucidate the mechanisms that induce advanced IR development based on the
conduct a three-year study into gambling gambling addiction, the company said. study of precedent cases from other
addiction which it says “will be utilized in Sega Sammy has stated its intention to countries is required,” it said. “This requires
Japan to establish measures to prevent its pursue a Japanese casino license and has IRs to offer not only attractive facilities and
onset, progression and recurrence.” made no secret of the fact that its first foray content, but solutions to social issues.
The research, to begin in 2018 and into casino operations at Korea’s Paradise “Sega Sammy has been working to
run through to 2021, will be led by Kokoro City – of which it owns 45% – is a move develop a system for the collection of a type
Research Center of Kyoto University and designed to gain IR experience. of player data at casino facilities that has yet
aided by the Graduate School of Medicine. Explaining its new gambling addiction to be achieved in existing operations. Using
It will see data from overseas casino study, Sega Sammy said that although it this research, we aim to build a system to
operations collected and analyzed with the plans to enter the IR business in Japan, it identify players exhibiting signs of addiction
aim of identifying signs that appear prior “believes it is the responsibility of operators and prevent further progression.”
12 INSIDE ASIAN GAMING JANUARY 2018Melco Resorts would relocate
to Japan if casino bid successful
Lawrence Ho would relocate
both himself and the company’s
headquarters to Japan if Melco Resorts
& Entertainment was awarded a casino
license by the Japanese government.
In an interview with Reuters, the
Chairman and CEO reiterated his view
that Japan will become Asia’s most
significant gaming jurisdiction outside of
Macau with Melco set to go “all-in” in its
pursuit of a license.
“It’s not just any ordinary project
and will become the most important
project outside Macau,” Ho said. “I
would personally move here while we are
building it and we would move the core
management team and headquarters here.”
Melco Resorts has unveiled its
Japan IR concept titled “The City of the
Future” – a futuristic and eco-friendly
integrated resort boasting state-of-the art
facial recognition technology aimed at
combatting problem gambling.
The concept aims to create the most
advanced gaming and entertainment
destination in the world while still holding
true to the distinct history and heritage of
Japan, with Melco stating that its “team
of architects, advisors and environmental
specialists are working to make the site both
energy-neutral and aesthetically daring.
The Stars Group to revive Asia Pacific Poker Tour in 2018
The Asia Pacific Poker Tour (APPT) most recognized live tournament series LIVE Macau at City of Dreams from 14 to
is set to return in 2018 just 12 months including the European Poker Tour (EPT) 25 March.
after being dumped as part of a major and Latin America Poker Tour (LAPT). The Stars Group – formerly known as
overhaul by organizer The Stars Group of But the news will be particularly well Amaya Inc – had controversially announced
its global tours. received in Asia with the APPT holding in 2016 that it was putting an end to the
In a December announcement, The a unique place in history as PokerStars’ APPT after 10 seasons and combining all
Stars Group – owner of the world’s largest first branded international tour when it of its live tournament offerings into two
online poker site PokerStars – revealed launched in 2007. The first official APPT series – the PokerStars Championship and
that it was bringing back a number of its event in 2018 will be held at PokerStars PokerStars Festival.
JANUARY 2018 INSIDE ASIAN GAMING 13COVER STORY
Muhammad Cohen
also blogs for Forbes on
gaming throughout Asia
and wrote Hong Kong On
Air, a novel set during
the 1997 handover
about TV news, love,
betrayal, high finance
and cheap lingerie.
14 INSIDE ASIAN GAMING JANUARY 2018COVER STORY
ENTER THE
DRAGON2
NagaWorld’s expansion lifts the Mekong
region’s largest integrated resort and
Phnom Penh into the top tier of regional
destinations, with an increasing focus on
Chinese tourists.
By Muhammad Cohen | Editor at large
in Phnom Penh
JANUARY 2018 INSIDE ASIAN GAMING 15COVER STORY
W
HEN I first visited NagaWorld six years ago, the more tables and thousands more machines. The plan brought to mind
casino hotel overlooking the Mekong River in the underwater casino plan for Macau’s City of Dreams: a wonderfully
Cambodia’s capital proved a pleasant surprise. appealing impossible dream. Fast forward to 3 November 2017 and the
From its Pan-Asian breakfast buffet to themed soft opening of Naga2 revealed everything Ngai, now the company’s
gaming areas to the spa with a jacuzzi in every Chief Marketing Officer for Southeast and East Asia, described and
treatment room and signature four-hand massage, NagaWorld more, all in a compelling Paul Steelman designed package with a
exceeded expectations and demonstrated the business smarts that construction cost of US$392 million. That’s truly fantastic.
made parent company NagaCorp one of the top performers on the
Hong Kong stock market since its 2006 IPO as the exchange’s first
casino listing.
Everything about NagaWorld seemed eminently practical and
cleverly considered – everything except the company’s plan for a “Naga2 lifts the only casino
“Naga2” across the street, linked to the original via an underground
shopping mall. NagaWorld’s then-Managing Director for Casino
in booming Phnom Penh
Operations and Property Mike Ngai described two towers, one with into the top rank of regional
guest rooms for mass market customers and the other for VIPs,
featuring in-room gaming, plus a theater seating thousands, hundreds gaming destinations.”
A VIP gaming suite at Naga2
16 INSIDE ASIAN GAMING JANUARY 2018COVER STORY
A VIP hotel suite
“The overwhelming bulk I think our Chinese visitors in particular will continue to grow and
enjoy our new property,” NagaCorp Chairman Timothy McNally says.
of Naga2 rooms are in In its 22 years, starting on a barge on a branch of the Mekong
River, Naga has upped its game incrementally. It came ashore with
the hotel tower, but the a few dozen gaming tables and couple of hundred slot machines
in 2003. In 2006, its Hong Kong IPO – the first international stock
VIP tower may become listing for a principally Cambodian enterprise – raised US$95 million
to add hotel rooms. A decade of measured steps built business
NagaWorld’s signature. capacity and credibility – NagaRock and Saigon Palace themed
gaming floors; a live dealer multigame area and, when that proved
The VIP tower features nine successful, a second node; a second hotel wing targeting the mass
floors of suites, four per market; outreach to Macau junkets; more VIP rooms and guest suites
sufficiently stylish to rival any in the region.
floor. Two suites per floor “The idea is to position a first world product in a third world
market,” NagaCorp CEO, founder and majority shareholder Chen Lip
include their own gaming Keong told a media briefing ahead of the Naga2 opening. “That is a
competitive edge.”
room with a table.” NagaCorp’s revenue has grown from US$150.5 million in 2010
to US$531.6 million in 2016 and US$401.6 million in the first half of
2017. EBITDA rose from US$61.9 million in 2010 to US$256.1 million
in 2016 and US$181 million in the first half of 2017. Building from that
base, Naga has taken a great leap forward.
Naga2 lifts the only casino in booming Phnom Penh into the
top rank of regional gaming destinations. The gleaming gold twin DOUBLE UP
towers of Naga2 substantially raise the ante for a company that has Officially soft-opened on 3 November, Naga2 more than doubles
kept its focus on the Southeast Asian mass market, largely escaping the size of the NagaWorld complex. Completing its outfitting in
the 2014-16 downturn that devastated Macau and fellow ASEAN the coming months, the two new towers add at least 300 gaming
(Association of Southeast Asian Nations) member Singapore. Naga2 tables and 2,500 slot machines across four main gaming levels
also enables management to play for a greater share of growing and multiple VIP areas. The full complex is expected to reach 600
Chinese outbound tourism, forecast to reach 200 million travelers tables and more than 5,000 machines, some still operated via
by 2020. China has supplanted neighboring Vietnam as Cambodia’s third party partnerships that include placement fees and revenue
largest visitor source, growing 44% to 700,000 in the first eight share for NagaCorp.
months of 2017. Naga2 gaming areas extend the casino cell concept with varied
“We’ve just built a foundation from mass market tourism and design, food and music choices. They also continue the Macau level
JANUARY 2018 INSIDE ASIAN GAMING 17COVER STORY
table minimums – US$100 for baccarat “squeeze games” that allow Hall of Golden Chimes, a noodle bar, 2Pangaea with Indochina’s
bettors to handle their cards, US$40 minimums for baccarat with longest buffet, a food court at Naga2’s entrance from NagaCity
cards dealt face up. There are sic bo and roulette tables, but card Walk and bars in many gaming areas. Almost every food outlet has
games dominate, principally blackjack, poker variants – Naga1 has adjacent slot machines: Paul Steelman says slots overlooking dining
a pair of Texas hold’em tables – plus Vietnamese favorites Bai Buu garner higher revenue.
and Ngau Ham.
The new towers add 900 guest rooms, bringing NagaWorld’s TAKING ADVANTAGE
total to 1,700. Naga2 features an elegant multipurpose Broadway Naga2 illustrates how the company effectively leverages its
style theater with 2,200 seats and full state of the art visual projection competitive advantages – and sometimes creates them. NagaCorp
capabilities, suitable for MICE applications, concerts and international holds a 70-year gaming license, including an exclusive for Phnom
touring companies. NagaCity Walk, the underground shopping area Penh until 2035. Naga hasn’t abused the privilege to build multiple
linking the two sides of the complex, has 3,800 square meters (41,000 casinos, Chairman McNally points out. Instead, along with corporate
square feet) of retail space, nearly 15 times more shopping than support for the nation’s rebuilding to overcome the Khmer Rouge
Naga1, across two dozen storefronts ranging from local products to legacy of destruction, Naga has forged a partnership with the
international fashions, much of it duty-free and new to Cambodia. government to boost tourism, financially supporting Cambodian
Naga means dragon in many Asian languages but also connotes tourism offices in China and leasing three Airbus A320s for Bassaka
gold in some Chinese dialects, so gold and Khmer themes dominate Air, an international airline based in Phnom Penh.
public areas, with VIP rooms sporting lotus, butterfly and other Cambodia’s relatively low costs, along with Naga’s careful eye
motifs. New dining and drinking options include opulent Cantonese on capital expenditures, held construction costs for Naga2 and
18 INSIDE ASIAN GAMING JANUARY 2018COVER STORY
The Hall of Golden Chimes
Chinese Restaurant
“Naga has forged a NagaCity Walk to US$392 million, plus perhaps half as much again
for outfitting it. NagaCorp reports it’s spent a total of US$1.5 billion
partnership with the on the NagaWorld complex and that commercial real estate specialist
Colliers International has valued it at US$5.1 billion.
government to boost Low costs extend to labor and taxes in the single digits; the
latter may change with pending gaming legislation that Naga says it
tourism, financially wholeheartedly supports. Low overhead enables Naga to offer junket
commission and revenue share deals that are at the top end of the
supporting Cambodian market, as well as boosting NagaCorp’s bottom line. On the other
hand, Naga executives believe Cambodia’s real and perceived lack of
tourism offices in China regulatory rigor has resulted in penalties from investors and bankers
– exorbitant bank interest rate demands led Dr Chen to personally
and leasing three Airbus finance Naga2 via a convertible bond arrangement; he took payment
in shares last August – and added costs of self-regulation, such as its
A320s for Bassaka Air, an biannual independent audits for compliance with international anti-
money laundering standards.
international airline The overwhelming bulk of Naga2 rooms are in the hotel tower,
but the VIP tower may become NagaWorld’s signature. The VIP tower
based in Phnom Penh.” features nine floors of suites, four per floor. Two suites per floor
JANUARY 2018 INSIDE ASIAN GAMING 19COVER STORY
include their own gaming room with a table, and the wall between because some high rollers deferred trips awaiting Naga2.
those gaming areas can be removed. Naga says it will encourage Even before the formal soft opening, high roller action was brisk
VIPs to occupy entire floors. in open suites and other new VIP areas, though initial Macau junket
promoter response has been mixed. “We have no major reaction
MOVING UP towards the Naga2 opening and [continue] business as per normal,
The VIP tower culminates a typically measured effort that began in pending players patronage requests,” Suncity Group President for
March 2013 to expand high roller play using junkets. “We were able to Marketing Strategy YM Choong says.
increase table limits, bringing a little bit higher quality players though After visiting ahead of the Naga2 opening, Rich Goldman CEO
revenue share agreements where they received a percentage of the Nicholas Niglio says, “They accommodate people the way they
win but they also were responsible for some of the loss,” McNally should be treated. It can be one of the top three places in the region
explains. “That gave us a managed risk approach.” outside Macau.” Niglio notes though that, “Our relationship is in the
In 2012, as a self-proclaimed “low-end VIP destination,” infant stage.”
NagaWorld reported VIP roll of US$3.8 billion and VIP revenue Overall, Union Gaming co-founder Grant Govertsen, a longtime
of US$94.5 million. That represented 34% of total revenue and NagaCorp bull, expects upside to its second half revenue estimate of
17% of gross profits. After four years of enhanced incentives and US$6.8 billion and its full 2017 EBITDA call of US$284 million. The
upgraded facilities, the 2016 figures were US$8.7 billion in roll and boutique investment bank sees EBITDA of US$392 million in 2018
US$225.7 million in revenue, representing 42% of total revenue and US$429 million in 2019.
and 19% of gross profits. For the first half of 2017, in a rising
regional VIP market, roll rose 71% over the first half of 2016 to “CHINA READY”
US$7.8 billion and revenue rose 89% to US$210.5 million, growing Much of the new growth will likely come from China.
to 52% of revenue and 23% of profits. VIP growth slackened to “With that wave of consumerism coming from China, there’s
58% in the third quarter, according to Union Gaming, probably a lot of energy and we are on the doorstep of China,” Dr Chen, a
Naga2’s Elixir of Life Spa
20 INSIDE ASIAN GAMING JANUARY 2018COVER STORY
Malaysian trained as a physician who came to Cambodia in the early in China and very much adhere to and strictly follow those guidelines
1990s as part of Malaysia’s Prosper Thy Neighbor policy, says. “It’s a when we deal with China – and we do that through the vehicle of
very exciting time with all of the FDI [foreign direct investment] and tourism and building relationships,” McNally says.
movement of people from China to here.” Naga emphasizes it’s not abandoning its roots in ASEAN, a
Naga associate Bassaka Air facilitates that movement with market of 650 million. Naga2 opened with a gala ASEAN themed
three weekly flights each from Changsha, Xian, Hangzhou and ceremony and dinner attended by Cambodian ministers and regional
Tsingtao, mainland China cities that have fewer direct international diplomats, featuring entertainment by four ASEAN divas who earlier
flight options than Beijing, Shanghai and Guangzhou. Bassaka paraded through NagaCity Walk in a selfie and social media frenzy.
also flies daily to Kuala Lumpur and twice weekly to Macau. Naga “We are in the heart of Indochina and by no means deviating from
works with state-owned China International Travel Service to our mission statement of being the best entertainment destination in
create tours for mainland travelers that include Phnom Penh and the Mekong region. Our focus will remain on the immediate area,
Siem Reap, site of the Angkor Wat temple complex, a 40 minute particularly on the mass market,” McNally says.
Bassaka Air flight from the capital. Naga also engaged CITS But Naga, like the rest of the regional hospitality business, can’t
subsidiary China Duty Free Group as principal tenant and leasing ignore China. At the Naga2 briefing, Dr Chen revealed an ambition
agent for NagaCity Walk. to curl Naga properties dragon-like around China. Next up, Naga’s
Those initiatives are part of making NagaWorld “China ready” casino under development in Vladivostok in Russia’s Far East. Dr
with more Mandarin speaking staff and food options that appeal Chen cited discussions with officials in Mongolia and Kazakhstan
to mainland guests. Naga executives stress that they are aiming at to build resorts there. Those resorts wouldn’t necessarily feature
tourists and not promoting gambling. gambling – Dr Chen’s holdings in Malaysia include non-gaming
“We can develop our market and expand mass market, certainly Nexus Resort Karambunai in Borneo’s Sabah state – but would focus
China front and center, because we have cemented a very good on Chinese travelers. And in Phnom Penh, executives say, they are
relationship, we are very sensitive to issues of promotion of gaming already thinking about Naga3.
JANUARY 2018 INSIDE ASIAN GAMING 21IN FOCUS
FEATURE
Strength
in numbers
Macau’s VIP segment has been historically volatile, but has
surprised with the sheer strength of its resurgence in 2017.
What can we expect from VIP in 2018?
By Ben Blaschke
I
F the jury was out on the sustainability of Macau VIP’s upwards with VIP revenue growing 16.8% to MOP$35.5 billion in
resurgence for much of 2017, it’s not anymore. Having 1Q17, 34.8% to MOP$35.9 billion in 2Q17 and 28.1% to MOP$36.7
copped the worst of the battering from the city’s two-year billion in 3Q17.
decline in gross gaming revenue – which saw VIP GGR fall That’s despite analysts warning early in the year that the VIP
a massive 39.9% year-on-year in 2015 alone – the segment segment’s first full quarter of growth in almost three years in 4Q16
staged a stunning recovery in 2017 thanks to higher liquidity and couldn’t be relied upon to repeat through the rest of 2017.
better conditions in China. “The strength seen in 4Q16 was not primarily driven by VIP. It
The recovery began in 4Q16 with a 12.7% year-on-year increase was driven by mass,” said Union Gaming’s Head of Equity Research,
in revenue generated through VIP baccarat, then quickly soared Grant Govertsen, in January.
22 INSIDE ASIAN GAMING JANUARY 2018IN FOCUS
“This is very important in the context of what we see as a Despite earlier concerns over VIP due to its renowned volatility,
sustainable mass market led recovery. While we are very happy to Govertsen believes growth through 2018 is likely to come in at around
finally see VIP turn positive we remain cautious on the outlook for 20% growth even taking into account a likely slowdown towards the
this segment, which is driven by increasing concerns on Beijing’s back end of the year.
stance on capital flight.” “We would expect to see VIP growth maintain around the 30%-
Govertsen has argued that a recent reclassification of gaming plus level for 4Q17 and into 1H18,” he told Inside Asian Gaming.
tables in Macau has skewed government data towards VIP, so while “As comps get tougher in 2H18 we look for the year-on-year
VIP in 4Q16 officially grew 12.7% and mass market 8%, those figures growth rate in VIP GGR to moderate … ultimately we expect the full-
were, he said, essentially “backwards.” year to see approximately 20% growth in VIP GGR.”
He wasn’t alone in exercising caution over the segment either, According to Govertsen, there are a myriad of factors favoring
with analysts from brokerage Sanford C Bernstein stating in February VIP at the moment, including “more and more high-end customers
that they were “becoming more concerned about China government returning to the market” and the fact that Macau’s junkets are “flush
actions to stem capital outflows.” with liquidity, which ultimately begets greater VIP volumes.
“If such actions target Macau, the headwinds could be material,” “Effectively, what we’re witnessing is the opposite of the 2014-
they added. 2016 downturn that saw a host of negative factors all working in
Instead, Macau VIP surprised just about everyone in 2017 by concert in a downward direction.”
not only maintaining positive growth but in fact surging as the year The VIP resurgence has been reflected by the health of Macau’s
progressed – a fact that completely changes the outlook for the VIP junket operators, whose numbers tumbled during the height of the
segment in 2018. city’s two-year downturn from more than 213 licensed junket operators
“Macau VIP surprised just about everyone in 2017 by not only
maintaining positive growth but in fact surging as the year
progressed – a fact that completely changes the outlook for the VIP
segment in 2018.”
JANUARY 2018 INSIDE ASIAN GAMING 23IN FOCUS
FEATURE
Meg-Star International opened a new
VIP club at Wynn Macau in December
In June, Qian Jin VIP club began operations at L’Arc while Macau
“Effectively, what we’re Legend announced in October that it had signed an agreement with
witnessing is the opposite junket promoter Sheng Li V Limited to run three VIP tables in Ka Sing
VIP club at Legend Palace until the end of 2019.
of the 2014-2016 downturn In December, two of Macau’s biggest junkets – Tak Chun
Group and Meg-Star International – launched new VIP clubs on the
that saw a host of negative Peninsula at MGM Macau and Wynn Macau respectively.
Meg-Star’s Lian Sheng VIP Club became the operator’s fifth
factors all working in concert Macau operation, having opened its fourth at Wynn Palace in April,
in a downward direction.” while Tak Chun’s announcement of a return to MGM was particularly
notable given that it had shut down its previous VIP room at the
– Grant Govertsen same property just 15 months earlier.
Tak Chun has since informed IAG that it will be opening two more
VIP clubs in Cotai in early 2018.
The fact that both MGM Cotai with its famed Mansion VIP
residences, and Melco Resorts’ new luxury hotel Morpheus, are due
in 2013 to just 126 as of January 2017. Those figures included a 23% to come online in 1H18 won’t hurt the segment either.
decline in the number of licensed operators through 2015 (from 183 Asked about its plans for Macau in 2018, a Meg-Star International
to 141) and another 10.6% decline in 2016 (from 141 to 126). spokesman said, “Due to the overall economy improvement and new
While current figures were unavailable at the time of print, the projects entering into the market, the company maintains a positive
cursory evidence suggests a distinct reversal of that trend highlighted view on the development of the Macau VIP market in 2018 for both
by the opening of a number of new junket rooms at casinos across Macau Peninsula and Cotai. The company will actively adjust its
Macau during the back half of 2017. development strategy depending on the development of the market
David Group, one of Macau’s leading junkets before trimming and hopes to maintain a healthy growth in coming years.”
back its operations in 2015, suddenly re-emerged in 2017 when it Not all are as confident in the long-term potential of Macau’s
announced that it would be running VIP at the new Roosevelt Hotel VIP through 2018 as Govertsen’s 20% growth prediction, with
in Taipa, which opened its doors in July. It also launched a VIP room Morgan Stanley tipping a more modest 11% as recently as November
at Studio City and another at Galaxy. – although this is raised from a previous forecast of 8% “as junket
24 INSIDE ASIAN GAMING JANUARY 2018JANUARY 2018 INSIDE ASIAN GAMING 25
IN FOCUS
FEATURE
liquidity remains abundant.” Notably, Morgan Stanley sees the VIP
segment maintaining growth of 11% through 2019 as well.
Industry-wide consensus is that Macau’s future inevitably lies in
the mass market segment, which will be aided in the coming years by
improved infrastructure and more five-star hotel rooms – leading to a
better quality of customer who stay longer and spend more.
However, as Bernstein analysts wrote in a recent study on Chinese
consumer spending, “Considerable discussion occurs when we try to
segment the market into VIP, Premium Mass and Base/Grind Mass,
because the market is much more complicated. Aside from some of
the clear differences between VIP and “cash” (ie. mass) customers, a
case can be rightfully made that most gaming spend in Macau today
is premium in nature.”
With the average gaming spend by a mass market visitor to
Macau sitting between US$450 to US$550 per trip – buoyed by the
fact that profit margins in the mass segment are roughly four times
higher than VIP – it makes sense that this is where the greatest
opportunity exists going forward.
But even with VIP eventually slowing, Bernstein expects it to grow
at 5% compound annual growth rate (CAGR) over the next five years
and 4.55% CAGR over the next 10.
That may not be quite as lucrative as the heady days of February
2014, when VIP baccarat alone contributed 65% of Macau’s all-time
record MOP$38 billion in gaming revenue, but it at least bodes well
for VIP gaming’s sustainability.
As Govertsen says, “There will always be demand for VIP in
Macau.” Tak Chun Group CEO Levo Chan
MGM Cotai will help boost
Macau’s VIP offerings when it
opens on 29 January 2018 “The VIP resurgence has
been reflected by the health
of Macau’s junket operators,
whose numbers tumbled
during the height of the
city’s two-year downturn.”
26 INSIDE ASIAN GAMING JANUARY 2018JANUARY 2018 INSIDE ASIAN GAMING 27
iGAMING BLUE PAGES
iGAMING IN DEPTH
O
From the traditional betting habits of Europe NE of the enormous
challenges facing sportsbook
to the expanses of Asia, data analytics firm operators today is standing
out from the crowd. It’s a
BettorLogic is showing how the correct use problem that is particularly
of data can provide benefits to sportsbook confronting in Asia, where the sheer volume
of options available to customers – both
operators and customers alike. legal and illegal – make for a saturated
market.
Yet for Andrew Dagnall, CEO of data
analytics firm BettorLogic, the solution isn’t
as elusive as it seems.
By Ben Blaschke “We are driven by an inherent belief that
28 INSIDE ASIAN GAMING JANUARY 2018iGAMING BLUE PAGES
iGAMING IN DEPTH
the actual betting experience for the bettor is to pages reflecting their personal betting of fascinating differences between bettors in
not what it should be,” he explains. preferences and provided with prompts Asia and those in other parts of the world.
Dagnall’s simple but salient observation known to appeal to them. “From the data we’ve had from our
came from his own experience as a bettor, But it also provides an opportunity Asian clients, we’ve certainly seen that
where his interest in spread betting to cross international borders, with the timeframe when someone is betting
was stifled by a lack of readily available Bettorlogic’s analysis having found a number quite often follows patterns and we would
information to aid his bet selections. attribute that to their lifestyle or their work
“I thought it would be very useful to style,” Dagnall says.
know what one should consider when “We have noticed the fact that pre-event
making a bet,” he continues. “I mean, with the parlays and the mixed parlays are very
horse racing all you needed to do was pick popular. And for the in-play Asian bettor
up one of the trade papers and that would “We are driven by an the principal difference to the European or
give you the form you required to study
a horse race, but if you wanted to bet on
inherent belief that UK bettor is they will be much more active
in a single event, whether it’s hedging what
something like the US Masters, what were the actual betting they’ve bet on or increasing their market
the important considerations? Was it position in a particular event. We’ve even
important that someone had finished in the experience for the noticed that quite often it is completely
top 10 at the Masters before or had won a natural to see eight to 10 in-play bets on a
PGA Tour event? bettor is not what it single game whereas in the UK that tends to
“That was the idea I had to begin with –
to focus on B2C, which was perhaps slightly
should be.” be restricted to one or two.
“Obviously the main driver in Asia
naïve. We weren’t a tipping service, we just is football although there is less of a
said ‘Here is the information as it relates to
the betting market’.”
As it turned out, there wasn’t a lot of
money in B2C, but BettorLogic’s product did
appeal to sportsbooks and their eternal quest BettorLogic CEO
to stand out from that crowd. And so, from Andrew Dagnall
humble beginnings, the company developed
its range of data analytics products – easibet,
livelogic, multibet and nextbet – which
essentially provide bettors with statistical
reasons to bet delivered directly through
their sportsbook both before and during
sporting events.
“An example would be a Spanish La Liga
game where it’s 1-0 to Real Madrid after 60
minutes and we might send out a prompt
saying there will be at least two more goals
scored in the match based on the historic
statistical evidence,” Dagnall explains.
“Just as importantly we take into account
the history of the bettor in terms of how and
when they like to bet. Sportsbooks have so
much data on their customers, they know
exactly what they like to do, they know what
type of bets they like to place, what events
and with a bit more intelligence they would
know how they react when doing well and
how they react when doing badly. To that
extent, we use the sportsbook’s data to
create a profile of the player and it identifies
exactly what their preferences are.”
The idea is to create a more personalized
sportsbook experience for each individual
user whereby they are directed straight
JANUARY 2018 INSIDE ASIAN GAMING 29iGAMING BLUE PAGES
iGAMING IN DEPTH
An example of statistical betting prompts on UEFA Champions League matches
concentration on a particular league
compared to, say, Africa which is very much
EPL (English Premier League) focussed. “The idea is to create a more personalized
“There is also much more focus on
what football is being played today. Asian sportsbook experience for each individual user
users are not particularly interested in what
football is taking place tomorrow or in two
whereby they are directed straight to pages
days’ time, so as a consequence something reflecting their personal betting preferences and
like the Europa League tends to be quite
popular because it is played on a Thursday provided with prompts known to appeal to them.”
and there is very little other football played
on Thursdays.
30 INSIDE ASIAN GAMING JANUARY 2018iGAMING BLUE PAGES iGAMING IN DEPTH JANUARY 2018 INSIDE ASIAN GAMING 31
iGAMING BLUE PAGES
iGAMING IN DEPTH
“Asia is still about 1x2, the Asian
handicap or the goals handicaps. In
the UK you tend to get a lot of the
‘both teams to score’ bet whereas Asia
is more about ‘next team to score’.”
“Finally, in Asia the markets are much themselves, that their focus is much more
more concentrated. Asia is still about 1x2, on running the operation and expanding
the Asian handicap or the goals handicaps. their customer base.”
In the UK you tend to get a lot of the ‘both Ultimately that means lost opportunities
teams to score’ bet whereas Asia is more for operators and huge opportunity for
about ‘next team to score’.” companies like BettorLogic. After all, most
Despite identifying such clear trends in bettors won’t hesitate to place a bet if given
the region, Dagnall says that Asian-based a compelling reason to do so.
operators haven’t yet, for the most part, “I think that invariably the typical bettor
made the most of the huge amounts of data is always looking for a reason to have a bet,”
available in the digital era. Dagnall offers. “That’s what we do. If you
“The main handicap in Asia is them take in-play betting as an example, we know
actually getting the data and getting the data before the game starts all the possible match
in a state whereby they can actually use it,” situations which means the operator can set
he explains. “For example, we look at about up push notifications for when those match
15 bits of data related to a bet. I would say situation occur. That can be very compelling
that from the Asian operators we have got from the point of view of the bettor because
data from, it has taken them considerably they feel like there is an instant decision to
longer to get the data into what I would call be made.
a fit form. “In our experience, if you provide that
“That might be an indication that reason they are far more inclined to say ‘Yes
English Premier League betting prompts
perhaps they are not really looking at the data I will’ than ‘No I won’t’.”
32 INSIDE ASIAN GAMING JANUARY 2018JANUARY 2018 INSIDE ASIAN GAMING 33
THE DISMAL
OPTIMIST
The rise
of Chinese
technology
and the US
response
In his latest column for Inside Asian Gaming, Dr Peter T Treadway
explores the rise of Chinese technology and its long-term implications
I
By Dr Peter T Treadway N 1914 the Europeans (including the British) ruled the
world. Their empires spanned the globe, their culture
reigned supreme, financially they were the center of the
Professor, author and world, their science was a marvel and they had convinced
financial advisor,
themselves and a good part of the world that they possessed
Dr Peter T Treadway
is currently principal of a moral superiority. But by 1945, they had massacred tens of
Historical Analytics LLC, millions of their citizens, bombed their beautiful cities into rubble
a consulting firm with an and bankrupted themselves financially and morally. German, the
investment approach based emerging language of technology in 1914, disappeared from the
on his Wall Street experience pages of global science.
as economist, strategist and How did such a catastrophe happen? Simply put, Britain, France
securities analyst.
and Russia could not abide the rise of an aggressive Germany and
unwittingly opted to destroy their entire European civilization. Only
34 INSIDE ASIAN GAMING JANUARY 2018THE DISMAL
OPTIMIST
the entry of the United States – fortuitously a clone-offspring of The conundrum: Civilian uses – not military – are driving
democratic Britain – prevented total annihilation. new technology
Nobody wants 1914-1945 to happen again. In the past, there was a clear division between military and civilian
technology. The military could develop its own technology in secret
History repeats for things like nuclear bombs, laser-guided bombs or stealth
The United States – today still the world’s global hegemon and fighters. The US could keep China or anybody else from acquiring
policeman – faces the rise of a new and much larger global rival, this technology. But today, new technology is being driven by civilian
the People’s Republic of China. The United States is going to have rather than military uses. The civilian sector gets things first. There
to adjust to the reality that in the coming decades it is highly likely are no secrets. Just patents.
(though not quite inevitable) that China will usurp the US’ number Therein lies the problem for those who would try to cut off the
one role in the world. If China does enough things right, there is little technology flows from the US to China. Today it is computer games,
the US can do to stop the Chinese ascent. America’s only “hope” is autonomous vehicles, virtual and augmented reality, genomics, AI,
that China will not do enough things right.
China is obsessed with technology, getting rich and reclaiming
its historical role in the world. Through initiatives such as the Made
in China 2025 program, China has clearly indicated that its principle
objective for its economy is to become number one in technology. “The United States is going to
Technology will raise the living standards of the Chinese people and have to adjust to the reality
ensure the position of China in the world. Make no mistake. The big
US/China differences in the future won’t be about steel or territorial that in the coming decades it
disputes. They will be about technology. The China worriers in the US
will seek to halt the progress in Chinese tech.
is highly likely (though not
In my opinion, the US can slow the Chinese technological advance quite inevitable) that China will
with trade wars and petty bans on Chinese investment and the like,
but it cannot stop it. Moreover, such policies would be disruptive to
usurp the US’ number one role
the US and Chinese economies alike. in the world.”
JANUARY 2018 INSIDE ASIAN GAMING 35THE DISMAL
OPTIMIST
“Through initiatives such as the
Made in China 2025 program,
China has clearly indicated that
its principle objective for its
economy is to become number one
in technology.”
robotics, drones, the cloud, blockchain – the list goes on – that is
driving new technology. These are all global non-military industries.
Listen to any top tech company’s earnings call and the conversation
always covers how the company is doing in global markets including
China. Gamers are more important than generals in the explosion of
global tech! Nvidia for example was driven to improve its GPU (Graphic
Processing) chips by the insatiable demands of gamers, not the
Pentagon. The GPU later became indispensable in AI and autonomous
cars and now data mining for bitcoin. The Pentagon probably didn’t
know any of this was coming even though now it may wish it had.
To be fair, there is DARPA, the Defense Advanced Research
Project Agency. DARPA has played a role in developing robotic and
autonomous car technology. But the primary tech drivers have been
civilian. The Chinese and American companies are working on this.
Cut the flow of technology and consumers everywhere will lose.
A recent report sponsored by the Department of Defense
lamented that so much of civilian technology has dual military-civilian
uses. The report, written by Michael Brown and Pavneet Singh, has
the governmentalese super-long title of China’s Technology Transfer
Strategy: How Chinese Investments in Emerging Technology Enable
a Strategic Competitor to Access the Crown Jewels of US Innovation.
The report takes particular issue with Chinese investments in US
start-ups, viewing these investments as a national defense problem.
The report may have a point.
But if implemented it would smother US innovation and ensure
there were no new crown jewels. Technology today is being driven
globally by markets, not the US government. It is being driven by
nerdy teenagers playing computer games, by busy women who want versus 568,000 in the United States. Some might take issue regarding
Amazon’s Alexa to do their chores and select and deliver their clothes quality but Alphabet Executive Chairman Eric Schmidt, who should
and their meals and by aging fogies who need help driving their cars. know, has been quoted as saying about Chinese STEM graduates,
The military adds nothing to this new civilian knowledge economy. “If you have any kind of concern that somehow their system is not
Yes, these civilian technologies may have huge military uses. But cut going to produce the kind of people that I’m talking about (qualified
off the civilian side and there will be nothing for the militaries. scientists), you’re wrong.” Interestingly, two Chinese institutions, the
Chinese Academy of Sciences and Tsinghua University, placed in the
Cutting off the flow of technology to China will prove futile top 10 on the Nikkei list for most quoted AI-related research papers
The Chinese tech rise will be unstoppable unless the Chinese over 2012-2016. (Microsoft was first).
government follows really restrictive and stupid policies. It all starts with The government report mentioned above states that one quarter
education. The Chinese can’t get enough. The reality is that so-called of US STEM graduate students are Chinese foreign nationals who
STEM subjects (science, technology, engineering, math) are a major then are not allowed to stay in the US to work after graduation. This
focus of Chinese education. In 2016, according to the World Economic reflects a big flaw in American immigration policy as the report
Forum, 4.7 million Chinese students graduated in STEM subjects somewhat surprisingly admits.
36 INSIDE ASIAN GAMING JANUARY 2018THE DISMAL
OPTIMIST
The one quarter number apparently leaves out Indian foreign
students and Asian American students who also are reported to be
big in the STEM subject area. Is it that some groups are better at math
and science or is there some other reason? This is one politically
charged subject that needs taking on but not in this column.
I will just cite inadequacies in the American educational process
and the eagerness of the Chinese to learn. One might ask – where
are the American STEM students? Ban the Chinese (and Indian)
nationals and some graduate schools would probably close. It is
unlikely the foreign students would be replaced by Americans. You
can’t win with nobody. America’s educational problems lie with
America, not China.
Another problem for those who would cut off the flow of tech
to China, China will prove a magnet for engineers and scientists in
surrounding countries with a similar culture. There won’t be any
stopping this flow. The Middle Kingdom (China) has been the center
of East Asian intellectual life for millennia. Japan, Taiwan and South
Korea are loaded with engineers and tech talent. So long as Xi Jinping
doesn’t pull down an iron isolationist curtain around China, many of
these talented professionals will migrate to seek their fortune in the
Middle Kingdom. They already have.
And America may have a hard time bullying other countries to cut
tech to China. For example, Taiwan Semiconductor just announced
it was considering building a 3nm chip fab (chip factory) in China.
Without getting into the technical “weeds”, this is a very big deal and
very state of the art. True, Taiwan Semi will control the fab and the
technology but still…
Regarding its military, America should worry about its internal
The Chinese Academy of
Sciences placed in the top 10
on the Nikkei list for most
quoted AI-related research
papers from 2012 to 2016.
JANUARY 2018 INSIDE ASIAN GAMING 37You can also read
