New World Gaming in Casino pastures new

Away from the new multi-billion Dollar integrated casino resorts being contemplated by the top-tier of massively capitalised casino operating companies, there are fiercely determined entrepreneurs bootstrapping their way into their first casino business. Although the scale of casinos differs, exactly the same development process takes place and it’s a very long and difficult journey from the lobby of the parliament building to the lobby of the casino.


One such entrepreneurial team discovered the Cape Verde Archipelago and their hearts and minds were captured by its people, its culture, its landscapes and its huge potential. They set about developing several hundred holiday homes on Sal, one of the eight inhabited islands, and planning numerous follow-on businesses including a casino resort on the more exclusive island of Sao Vicente. Then came along the credit crunch...

However, undeterred, they secured the rights to Fortim Mindelo, a historic building and site with a commanding view over Mindelo Bay and forged ahead. With New World Gaming as their casino advisors, a detailed market feasibility was undertaken; business plans crafted; license bid tendered and the casino licence for Sao Vicente was won.

Meanwhile the anticipation of a casino resort in Mindelo was a catalyst to spur-on the upgrading of the deep-water harbour in order to boost cruise ship business (up 25% on previous year) and the opening of a new International airport with weekly flights directly from Paris, Amsterdam and Lisbon. The determination and passionate commitment of the two entrepreneurs from Ireland’s County Cork and their local partners is making an astonishing contribution to the transformation of Cape Verde’s tourism economy.

Mindelo is now a new port-of-call for the ARC yacht race and has seen large increases in sports-fishing tourism from the USA, Scandinavia, Europe and Russia. Overall, Cape Verde was voted at the top of the list as the “most wanted” holiday destination for 2014 by British respondents to an online poll.

Further afield, the current economic situation has encouraged governments to look to casino taxes as additional sources of revenue. Enlightened governments will recognise that casinos, like any other business, need to be based on a sound and detailed understanding of the market, need careful planning on capital expenditure and due consideration given to cash flow sensitivities. They will set their expectations of tax levels, structures and timing accordingly. They will also recognise that there are relatively few organisations that have the capital and resources to undertake the scale of IR developments seen in the likes of Singapore and even these massive companies need to prioritise the timing of their developments.

We spoke to David Marshall, Associate Director in New World Gaming, and an expert on European casinos, and he takes a look at the situation in Cyprus. Marshall says: “Whilst the currently preferred option is to have a single, large global-brand, IR could provide the country with a unique offering in the region, until of course the next global branded IR opens in the region.

“Cyprus already has excellent large resorts which need only the addition of the casino element to turn them into IRs; integrated resorts which are uniquely and proudly Cypriot in character. Distribution can be optimised by issuing several licenses providing choice for visitors and the competitive forces necessary to maintain standards of service and product appeal that serve to differentiate Cyprus as a preferred casino destination. It remains to be seen if a suitable global-brand IR operator will come to the table and if so, what the offer will be. War and poor economic performance in the region; the bank account “haircut” executed by government last year... It’s difficult to imagine that global corporate companies with their institutional investors would have the risk appetite for Cyprus. Is it not a job for the Cypriot entrepreneurs who developed successful resorts without the benefit of a casino in the first place?”

David Marshall’s recent joining of New World Gaming and Associates fulfils its goal to provide clients with the services and level of expertise of a blue-chip corporate “Head Office,” as a shared service. Please see David’s bio and more information on New World Gaming at www.newworld-gaming.com. Email enquiries@newworld-gaming.com to find out about investment opportunities in the Mindelo casino and other such opportunities.

Original article in Casino International - online

http://www.casinointernational-online.com/

http://tinyurl.com/mdu2woh

www.newworld-gaming.com

Japan casino licensing update

Japan closer to legalizing casinos

According to the latest news reports, Japan is slowly moving closer to legalizing casinos, attached is a report by Takashi Mochizuki from the Wall Street Journal describing progress made to date and expert opinions.

TOKYO—Japan is set to take a long-awaited step toward legalizing casino gambling, kicking off a multiyear process to establish integrated resorts that proponents say will provide a strong boost to the government's growth plans.

Lawmakers are expected within days to submit a bill requiring that the government craft legislation and set the stage for approving casino-resorts. The bipartisan bill, which is backed by the ruling Liberal Democratic Party, is likely to pass parliament next year.

Proponents hope Japan will start licensing casinos in 2016. Analysts say the schedule should allow Japan to have at least one casino in operation before Tokyo's 2020 Summer Olympic Games.

Lawmakers say there likely will be a few resorts at first, with further approvals coming gradually. They say the model will be closer to Singapore's than to that of Las Vegas.

Gambling already is popular in Japan. People spend large sums to bet on horse races, bicycle races, motorboat races, lotteries and pachinko, a game that is similar to pinball. Such games account for ¥19 trillion ($185 billion) in wagers annually, roughly 30% of leisure spending in Japan last year, according to the Japan Productivity Center consulting firm.

The idea to bring casinos to Japan was first floated in 2002, with global casino operators and domestic conglomerates mounting lobbying campaigns. But with most governments lasting for no more than a year, the issue never got to the front of the legislative agenda.

With current Prime Minister Shinzo Abe likely to remain in power for years because of his strong approval ratings, advocates are betting that now is the best chance to push through the legislation.

Prospects for passage appear good. The bipartisan group backing the legislation totals 171 in the two houses of parliament, more than one-fifth of all 722 Diet members. The group includes political heavyweights, including Mr. Abe, Finance Minister Taro Aso and Education Minister Hakubun Shimomura. Opposition-party figures, including members of the Democratic Party of Japan and Your Party, also have expressed support.

"We've finally drawn the attention of top-level politicians," said Osaka University of Commerce Professor Toru Mihara, who was involved in drafting the legislation. "Casinos, if successful, will be a true flagship feature of Abenomics."

Analysts who favor casinos say they will stimulate economic growth. The government aims to increase the number of annual foreign tourists in Japan to 30 million in 2030 from 8.4 million last year and to raise foreign direct investments to ¥35 trillion by 2020 from ¥17.8 trillion last year.

"We estimate that Japan could generate gross gaming revenue of $13.4 billion to $15 billion, which would make it the second-largest gaming jurisdiction in Asia, after Macau,"Citigroup analyst Anil Daswani said in a September report.

Casino operators are ready. Wynn Resorts Ltd. is considering plans that could cost it more than $4 billion.

George Tanasijevich, chief executive of Las Vegas Sands Corp.'s Marina Bay Sands resort in Singapore, has mock-ups on what a possible resort in Tokyo might look like. "We're very excited. We believe this is the biggest opportunity in our industry right now," Mr. Tanasijevich said Friday.

A challenge for the industry is to build public support. Mizuho Bank said the government should take an evenhanded approach, discussing the potential negative aspects of allowing gambling as well as the positives.

Prof. Mihara said the government must explain clearly how it will cope with the potential problems of casinos, such as corruption, gambling addiction and organized crime.

Some analysts said the governments and operators shouldn't focus just on casinos when planning integrated resorts, in part because casino-resorts will have to compete with rivals in Singapore, South Korea and Macau.

Governments from metropolises such as Tokyo as well as rural areas such as Okinawa hope to use casinos as one element of a broader strategy to increase tourism visitors, international meetings and conventions.

"We want to have a complex of casinos, hotels and convention centers that all sorts of visitors can use as a base when traveling around nearby areas such as Kyoto, Nara and Kobe," said Kazuhiro Nose, Osaka's tourism chief.

Read original article here


Jake Waller
Director at New World Gaming
New World Gaming

Casinos in Cyprus in two years

Further interesting reports are coming from the mediterrean, this time Cyprus, where a recent news report by the Financial Mirror stated that Cyprus could have casinos within two years, The Minister for  Tourism George Lakkotrypis made this statement on Tuesday to the press. 

Further details are available on http://www.financialmirror.com/news-details.php?nid=29090

Jake Waller

Director

New World Gaming

www.newworld-gaming.com

Proposed resort Casino for Crete

According to an  article on ekathimerini.com, an Israeli Group is wanting to set up a tourist resort and casino near the only golf course in Crete which is approximately 27 kms from Heraklion.

I am am interested to see how this progresses with the financial situation quite a lot more pressing than when this was first tabled. full article available at

http://www.ekathimerini.com/4dcgi/_w_articles_wsite2_1_24/02/2013_484415

Jake Waller

Director

New World Gaming

www.newworld-gaming.com

Southampton large casino licence article

Interesting article by Intergame on the licencing of a large casino licence in Southampton, UK. It will be interesting to see who will win the bid process and what they propose to build.

Several casino operators, including some major international companies, are vying to bring a Las-Vegas style casino to Southampton in the UK.

Casino industry leaders are set to meet civic bosses to discuss how the development could take shape. When this is complete the council will begin inviting bids from casino operators in an open competition which will look for the application bringing the “greatest benefit” to the city.

City council leader Richard Williams said: “It is an opportunity and something that the administration wishes to explore, but we need to ensure that this process is water- tight.” It is understood that it could take 18 months before a licence is awarded and the process will involve consultation with residents.

More than a dozen companies, including international operators, have so far contacted the council to register an interest in bidding for the project. The city council has earmarked the major US$713.5m redevelopment of the waterfront at the Royal Pier as its preferred location for a large casino.

A super-sized casino, one of only eight allowed in the country, could bring hundreds of jobs and millions of pounds of regeneration to the city. The licence would allow an operator to build a casino housing 150 slot machines and up to 30 tables for blackjack and poker.

Southampton was one of eight local authorities that were granted the right to award a large casino licence four years ago, but the recession, changes in gambling duties and the council’s previous lack of interest in moving the controversial issue forward stalled progress.

http://intergameonline.com/casino/news/8790/operators-going-for-southampton

Jake Waller

http://www.newworld-gaming.com/index.htm

NWG announces thier association with Mike Gore MBA

New World Gaming is pleased to announce its association with Mike Gore MBA, J.D, leading gaming expert in Asia

Michael J. Gore’s engagement in the gaming industry in Asia spans two decades and has given rise to extraordinary accomplishments across a broad range of activities and regions. He has extensive experience in casino regulation, casino licensing investigations, casino bid and application processes and an operational background of running some of the best and largest casino resorts in the world. Whilst he has worked with the highest-level Asian players, he has also successfully competed in low cost environments. In terms of regulation and competition, he has worked and been licensed in restrictive gaming environments and also in some of the most open and competitive ones in Asia. Amongst Michael’s many achievements is his key role in the winning bid for Singapore’s Resorts World Sentosa and the opening of 8 regional casinos in Cambodia, India, and Africa over the last 10 years.

Michael is a US Attorney licensed in the Gaming States of Nevada and New Jersey. He has a Juris Doctor Degree awarded in 1988 from the University of Rutgers-Law School and an MBA awarded in 2006 from the University of Phoenix, Arizona. He has worked as both a Surveillance Director and as a VP Casino Operations for Genting Highlands Resort in Malaysia, then the largest casino in the world. His consulting assignments have seen him take on diverse roles such as Casino Marketing Manager, Executive Director of Operations, CEO and COO at different Asian and Australian gaming properties. The Asian market is the current hotspot for gaming and is likely to hold this position for the decade ahead. Call NWG today to begin your entry into this lucrative but complex market.

http://www.newworld-gaming.com/casino-consultant-profiles.htm

Can You Afford to Skip the Casino Feasibility Study?

The idea to develop a casino is often driven by circumstances such as having sub-optimized space in the foyer of a hotel, the need to fill a gap in hotel occupancy or the availability of a license as part of a tourism investment scheme. All too often the idea develops a life of its own and the next steps are the creation of a casino design (that neatly fits the development team’s perception of what players want) and the start of construction, followed by the search for casino management. The problem is that there are common misconceptions about casinos and gamblers that lead developers into pitfalls time-and-time again! More about that later but let’s look at how the most successful operators go about things…They start with an understanding of the market, its willingness, size, disposable income, access, competition (for all entertainment), market-specific needs and compatibility of the player profiles with other users of the hotel, resort or entertainment complex. This understanding then forms the basis for the remainder of the feasibility study which estimates the number of potential visitors and their frequency of visit, the length of the average gaming session and the average stake. Extrapolating further, projections about the capacity requirements in terms of equipment, floor area and operating times are formulated. Finally, financial spreadsheets are crafted to present a supported and considered opinion on profit, capital expenditure and returns on investment. But more than just the numbers, the feasibility focuses thinking on how to optimize the opportunity, on flushing out potential fatal flaws and on what will be required to compete effectively in the market. The feasibility does not need to be a lengthy and expensive exercise conducted by a celebrated academic. What’s sufficient in the early stages is to understand whether you have a rough diamond or a worthless glass chip. A professional casino consultant will be able to deliver an initial feasibility for a reasonable price in as little as 10-working days, providing not only a decision point on the idea or opportunity at hand but also delivering a framework for screening future opportunities. Let’s look at some of the pitfalls…

The “license to print money” myth is a surprisingly popular assumption about casinos and one that seems to prevent people from conducting all the usual due diligence and care that would go into say, a shop or restaurant opportunity screening exercise. Examples that come to mind follow. A large casino was developed in a jurisdiction where there are restrictions placed on slot machine maximum stakes. The revenue expectations of the slot machines were heavily relied upon to render the casino viable. When a revenue capacity model was run on the slots by an experienced manager several days before opening, it showed that it was a physical impossibility to generate the required slots income with the number of machines installed… The casino failed to live up to expectations. A large casino developed in Britain by a US operator failed miserably because it did not understand the propensity for live gaming or the mobility of players in the market, whilst a British company failed spectacularly in Las Vegas because it didn’t understand the customer and made fatal design flaws.

The “James Bond” image is another popular misconception about players and casinos. The Pareto Principle applies heavily to casinos with approximately 80% (or more) of the revenue being produced by 20% (or less) of the visitors. That 20% does not constitute people who don formal dress for an occasional night out; it’s more typified by the frequent visitor who feels at home in the casino in comfortable, casual wear. The un-initiated 5-Star Hotel manager is invariably aghast at the presence in his or her lobby of the “non-James Bond-ness” shall we say, of the casino players! “Where’s that casino manager, he’s obviously got this all wrong…” And on goes the conflict-of-interests. The feasibility study will enable the corporation to identify these conflicting situations in time to create solutions such as providing a separate casino entrance and differentiating F&B standards and prices in the hotel and casino.

I recall an incident where a group of executives went to great lengths to propose the development of a large caravan park in the grounds of a destination casino resort, some 2 hours drive from a major city. The executives proudly began to present their highly polished and detailed plan to greatly increase footfall to the resort when much to their dismay they were harshly reprimanded by the CEO. They had failed to recognize that the hundreds of caravans on the road would delay the 20% of visitor that produce 80% of the revenue and the significance of such shortening of the gaming session!

The feasibility study will highlight the key drivers of the casino and let you put into perspective the priorities of the business. It will help you avoid fatal/serious flaws and give you the best chance of optimizing your opportunity. Now wouldn’t you agree that’s an excellent result for 10 days’ fees!

http://www.newworld-gaming.com/index.htm