Bingo Bonanza - ABLE Philippines

From Bingo Life Magazine

Issue 15

December 2014

www.bingolifemagazine.com

An archipelago consisting of more than 7,100 islands, the Philippines is a tropical paradise that has become one of Asia’s most progressive and popular gaming and bingo destinations.

Though several domestic and international companies have stepped in to meet market demand, Leisure and Resorts World Corporation (LRWC) has clearly emerged as the number one supplier to the gaming and bingo sectors.

AB Leisure Exponent (ABLE) - Bingo Bonanza

Bingo Life Magazine
Issue 15, Dec 2014

Clearly the dominant bingo operator in the Philippines, AB Leisure Exponent (ABLE) provides professional bingo gaming throughout the Philippines. Doing business as Bingo Bonanza, the company owns and operates bingo parlors and equipment throughout the country. Their bingo parlors have become community and entertainment centers, a source of revenue for the government, and a sponsor for fundraising activities relating to social and educational programs.

Based in Pasig City, the company was founded in 1993 and operates as a subsidiary of LRWC.

Electronic Bingo versus Traditional Bingo

If financial results are an indication of the public’s preference between the electronic and traditional versions of Bingo, the electronic (E-Bingo) version is clearly the preferred gaming option.

In recent financial results, ABLE had experienced an increase in revenues as a result of growing sales of Electronic Bingo (E-Bingo) and Pull Tabs.  Reporting on results for the first nine-months of 2014, the company’s revenues came to PHP 3,116.9 million (GBP 44.7 million), which was an increase of PHP 104 million (GBP 1.5 million) from the same period in 2013.

These improved results reported in September 2014 were due chiefly to a 16% increase in E-Bingo and 176% increase in Pull Tabs -- partially offset by a 6% decrease in Traditional Bingo, and a 22% decrease in Rapid Bingo.

With it’s continued success with E-Bingo, Reynaldo P. Bantug, CEO of LRWC has stated the company will continue to “focus on expanding our bingo sites as well as the continued roll-out of the electronic variants of our bingo games, which have contributed to the net income increase in our AB Leisure subsidiary.”

In his statement at LRWCs annual shareholder’s meeting, Bantug continued to expand on their commitment to E-Bingo by mentioning that “the electronic version of bingo has continued to be the main driver of growth. We added 1,346 electronic bingo machines in 2013 to bring the total to 5,390 by year end."

Bingo Boutiques

At the end of the 2013 ABLE had a total of 74 bingo outlets, of which 39 were traditional bingo halls and 35 Bingo boutiques. Speaking from the firm’s last annual shareholder’s meeting, LRWC vice president Christina A. Bautista mentioned that the company is building an additional 20 Bingo boutiques in Metro Manila and other key cities in Pampanga, Cebu, Bacolod, Bohol and Isabela.  She further mentioned the cost of setting up a Bingo boutique would require PHP 10-15 million (GBP 143-215,000).

In total, LRWC had planned to spend as much as PHP 300 million (GBP 4.3 million) in 2014 to build more Bingo boutiques nationwide.

Bingo Bonanza National Open Badminton Tournament

The firm has enhanced their presence through its sponsorship of the Bingo Bonanza National Open, an internationally recognized competition taking place between 11-14 December at the Rizal Memorial Sports Complex. Sanctioned by the Philippine Badminton Association, the tournament offers a total cash prize of PHP 1.5 million (GBP 21,500) and is pulling in players from around Asia, Europe and the Americas.

Al Alonte from Bingo Bonanza has mentioned that “this is a major event, and Bingo Bonanza is here because we still believe that badminton is one of the sports that can bring glory to the Philippines.”

LRWC Acquisitions

Earlier this year it was announced that LRWC had signed an asset share and purchase agreement with Premiere Horizon Alliance Corp. (PHAC), Digiwave Solutions Inc. and TGXI to acquire 100 percent of TGXI’s outstanding capital stock for P620 million (GBP 8.9 million).

The acquisition has been expected to expand the firm’s operations into a new retail brand, taking them beyond bingo and into a wider range of e-games.  Coupled with the growing tourism sector, these acquisitions would allow the company to maintain the double-digit growth it has recently posted.  “With the growth in tourism and the economy, we can feel the increase in patronage in entertainment. So we are optimistic that, with the Philippine economy growing and the population hitting 100 million, [these developments are] directly proportional to revenue. More people means more spending power,” CEO Bantug said.

FCLRC Gaming Operations

LRWC also runs gaming operations through its subsidiary, First Cagayan Leisure and Resort Corp (FCLRC), which operates and conducts internet and gaming enterprises and facilities in the Cagayan Special Economic Zone Freeport.  Because of the work they have done to promote this online jurisdiction, the Cagayan Economic Zone Authority has given FCLRC an exclusive license until 2031.

First Cagayan has developed state of the art facilities at the Cagayan Special Economic Zone and Freeport for LRWC’s locators.  For the first nine-months of 2014, FCLRC reported gross Revenues of PHP 978.7 million (GBP 14 million), an increase of 62% from the previous year’s figures. Net income of PHP 413.5 million (GBP 5.9 million) was an increase of 83% from the same period in 2013. The improvement in revenues was attributed mainly to the increase in the number of operational locators from 72 in 2013 to­ 80 in 2014 as against 72 last year ­ as well as the increase in locators' revenues. Hosting fees from restrictive and interactive gaming locators contributed 90.1% to total revenues, while license application and renewal fees accounted for the remaining 9.9%.

Accolades for the Philipppines, Positive for Bingo and LRWC

In his annual statement to the shareholders, CEO Bantug highlights that the country has received numerous accolades such as:

“One of the Next Eleven Economies to watch out for and 14th largest economy by 2050” – Goldman Sachs

“16th Largest Economy in the World by 2050” – HSBC

“Highest GDP Growth Rate in Asia: 6.8 percent in 2012 and 7.2 percent in 2013”

The firm remains “optimistic that these will further stimulate our economy and open more gaming opportunities for your Company. We are providing games that best describe the government’s byline that “it is more fun in the Philippines”. This will attract more players in our venues and we are more than ready to provide entertaining new games not only for the local market but also for foreign players.”

The Grand Ho Tram Strip, Vietnam

from Casino Life Magazine

November 2014

www.casinolifemagazine.com

Bill Healey reports on one of South East Asia’s most impressive Resort Casinos

Designed to draw domestic and international tourists to the pristine, sun-drenched beaches of southern Vietnam, the Ho Tram Strip is quickly becoming one of Asia’s top

Casino Life Magazine
November 2014

leisure getaways. With a focus on providing a personalized blend of excitement and relaxation, the Ho Tram Strip features something for everyone -- whether it be one of the region’s top golf courses, Vietnam’s first international standard casino, lavishly appointed accomodation, incredible entertainment options to premium dining shopping or exceptional recreational facilities.

“We are set on more than 400 acres of land along a 2.2 kilometer beach and surrounded by protected forest, and conveniently located just two hours away from Vietnam’s largest metropolis, Ho Chi Minh City,” said Stephen Shoemaker, Chief Executive Officer of Asian Coast Development (Canada) Ltd, the developer of the Ho Tram Strip.

The first phase of the Ho Tram Strip - The Grand Ho Tram Strip - opened its doors in July 2013, and includes 541 five star rooms, gaming, meeting and convention space, nine bars and restaurants, a spa, teen’s and children’s areas, three swimming pools and gift shops.

The second phase will include a mixture of vacation homes comprised of condominiums and residential villa developments. Ultimately the Ho Tram Strip will one more integrated resort with world class amenities and three additional five-star resorts.

The Grand was the first truly integrated resort to open in Vietnam.  Its current gaming

facilities offer 585 slot machines, 90 table games and multiple VIP table rooms for the finest in full-service gambling. Open 24 hours a day, seven days a week, the gaming features include:

Table games: 90 table games including VIP Baccarat, Baccarat, VIP Roulette, Roulette, Sic Bo, Blackjack, Ho Tram Stud Poker Progressive, Ho Tram Hold’em Poker, Progressive and VIP Texas Hold’em. Baccarat is the casino’s top table game.

Slots: 585 slot machine (including 118 electronic table games which consists of Roulette, Baccarat, Sic Bo and Craps; 32 machines in VIP-high limit area, 8 machines in private gaming rooms)

The casino offers a selection of multiplayer machines, including:

      Lucky Big Wheel - Aruze..........................................15

      Lucky Sic Bo - Aruze .................................................8

      Craps - Aruze ..............................................................8

      Interblock G3 Roulette.............................................64

      Interblock G4 Roulette & Baccarat........................38

Best performing electronic gaming machines include Aristocrat and Shuffle Master.  

The resort also provides both Poker and Slot Tournaments. For slot tournaments, there is a buy-in and a time-limit.  When the time limit expires, players have a final spin, starting with the player with the lowest credit.  If they win here, they can continue to play up to five more times, with the winner being the player with the highest credit at the end of the session.  The Grand has been playing this in heats, with a final round play-off to determine a winner.

“Our casino offering is targeting tourists from around Asia, with an emphasis on mainland China, Thailand, Singapore, Malaysia, Japan and Korea,” said The Grand’s recently appointed President, Shaun McCamley. “So far, tourists from the PRC have made up the

largest group of inbound visitors to the property. We also market to Viet Kieu (foreigners of Vietnamese origin) from all over the world, as well as the local resident expatriate community. The Grand’s non-gaming targets includes local Vietnamese, typically seeking a truly unique F&B, leisure and golf experience.”

Along with casino gaming, the resort offers an array of world-class leisure activities. In recent weeks (October 2014), the Ho Tram Strip delivered further on its vision to develop a truly unique destination resort in Asia with the opening of The Bluffs – a championship golf course designed by golfing icon Greg Norman.

With Norman himself on hand to cut the ribbon on a course he has called one of the two most beautiful that he has ever been involved in, the course has been open for preview play since early in 2014, The Bluffs has already been nominated for three Asia Pacific Golf Awards, including Best New Golf Course in Asia Pacific, Best Golf Course in Vietnam and Best Golf Course Superintendent (Ali Macfadyen). In so doing, it became the first course to ever be nominated in three categories at the prestigious awards.

“To be recognized in such fashion without even being officially open speaks volumes to this course and the job everyone here has done,” said Ben Styles, General Manager of The Bluffs Ho Tram Strip. “We can’t wait for the world to come and enjoy what I firmly believe is as good as any golf experience that exists.”

Speaking from The Bluffs launch, Harbinger Capital Principal and Ho Tram Strip

investor Philip Falcone took the opportunity to announce that the Ho Tram Project Company would be developing both condominiums and villas which would be available to both international and domestic investors.

Adding to The Grand’s allure is the opportunity to escape into the resort’s signature spa. This beautifully designed sanctuary provides a constant cycle of anticipation while unveiling surprise and delight. Ancient healing traditions of the world’s richest cultures combine with modern sensory immersion technology to help restore balance and inspire a sense of rejuvenation, connection, and well being.

For a bold new evolutionary nightlife experience, Club 9 offers an unforgettable place to party. Embodying the mysticism, power and seduction of the dragon; the fashionable nightclub allows guests to indulge in their specialty cocktails as well as a unique bottle service presented by their gorgeous team of Natural 9’s.

In recent months, Asian Coast Development (Canada) Ltd., the owner of The Grand Ho Tram Strip, announced two new investments in the property in 2014. The first in July, was an investment of US$20 million by NewCity Capital, an entity established by American investor Mr. Chien Lee. In September, Asian Coast Development announced a US$50 million funding commitment from its majority shareholder, Harbinger Capital. Harbinger is the majority owner of Asian Coast Development Ltd along with minority owners Pinnacle Entertainment and NewCity Capital.

Asian Coast Development Ltd.’s Board of Directors recently announced the appointment of Mr. Stephen Shoemaker as Chairman of the company’s Board of Directors as well as its President and Chief Executive Officer.

Mr. Shoemaker had previously served as ACDL’s President and Chief Financial Officer since 2008. With over 30 years of financial and operating experience in the hospitality and telecommunications industry, Shoemaker’s extensive background will be used in developing strategy, overseeing financial operations and fund raising activities.

Vietnam’s gaming scene is one to monitor closely, as the government prepares for a decree that could give the local Vietnamese an opportunity to enter the gaming floor. The Grand Ho Tram Strip is ideally positioned to welcome this traffic.

Bill has been working in the global leisure and gaming technology industry for more than thirty years. Based in Bali for the past ten years, he frequently writes and consults on gaming, golf, club and spa management.