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Is Hainan about to Open the Door to Gambling Legalization in China?
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In China’s southernmost province of Hainan, inside a glittering skyscraper shaped like a sail, Mr Zeng Xianyun has been waiting for Mr Xi Jinping, in more ways than one.
This week, the Chinese president will visit the island and hotel magnates like Mr Zeng hope the leader will come bearing gifts: new tax concessions to attract more tourists to this tropical destination nestled along the South China Sea near the Vietnam border.
Local entrepreneurs and global firms like MGM Resorts International have spent big on seaside developments here.
Many of these investors are making a wager of their own: Someday in the future, Hainan could be teeming with Chinese gamblers, who will give an adrenaline shot to a tourism-dependent economy that hasn’t fully lived up to expectations. Right now, gaming remains banned across mainland China and the island only attracts a fraction of the country’s tourism outlay.
Mr Xi will speak at the island’s Boao Forum and mark the 40th anniversary of China’s economic opening.
While Hainan’s elite aren’t expecting him to immediately announce any wholesale legalisation of gambling, they are hopeful the policies he unveils will help draw more tourists. And in doing so set off a policy roadmap that eventually ends with regulated casinos.
Any move to ramp up tourism in Hainan or open it up to gambling would reverberate within the global travel industry. Chinese jetsetters take about 130 million trips overseas each year, the government estimates, spending lavishly from Las Vegas to Bali and Paris.
Outside the mainland, in Macau, where casinos are permitted, the bulk of revenue still goes to foreign operators like Las Vegas Sands Corp. and MGM.
A more nationalist angle on the question of gambling and tourism is now finding its moment, dovetailing with Mr Xi’s emphasis on a resurgent China taking its place on the world stage.
The question, according to Mr Zeng, is not why the house always wins, but why that house should be foreign.
He hopes China can legalise the gaming industry and make Hainan the first mainland province with casinos to reduce the capital outflows.
“We need to take the issue seriously instead of avoiding it,” said Mr Zeng, who is chairman of Phoenix Island, an artificial archipelago off Hainan’s south-eastern shore that has a cruise ship terminal, luxury hotels and apartments. “We can’t let this big cake be eaten all by foreign capital.”
Mr Zeng’s development was built with a total investment of 20 billion yuan (S$4.16 billion), of which he put up 45 per cent and another 45 per cent came from the state-owned infrastructure firm China Communications Construction Co.
The property’s skyline is dominated by glinting hotels with steel facades, some of which house luxury condominiums with bathtubs on the balconies.
Mr Zeng said he could open a casino in under 30 days if given the permission.
The Boao Forum comes at a time when Washington and Beijing are engaged in trade war brinkmanship over tariffs. China has said the Hainan conference will demonstrate the country’s future prospects for economic growth.
Meanwhile, the drumbeat for casino development in Hainan has grown in recent months.
Earlier this year, Bloomberg citing people familiar with the matter reported that government agencies under a party reform group headed by Mr Xi are considering allowing online gaming and sports betting in Hainan, a policy shift that could open the door to physical casinos in the long run.
A balmy climate and sandy beaches are why Hainan, roughly the size of Switzerland, is often dubbed China’s Hawaii. Yet, it has been grappling with its dashed economic potential for almost a decade. It was eight years ago that Beijing designated the island China’s “test case” in developing an “internationally competitive tourist destination.”
At the time, the government said Hainan could explore lotteries related to international sporting events. The news drove speculation that the island could eventually open up to the gambling industry. Then came an investment flurry that pushed up property prices.
The bubble burst by 2012, when it became clear that specific policy concessions for Hainan weren’t imminent, whether legalised gaming or exemption from China’s heavy import duties. Property prices have tumbled from their peak.
Eight years on, new highways, high-speed railways and hotel chains are everywhere in Hainan, but its success as an international hotspot is muddled at best.
The island drew about 55 million tourists last year, only about 1 per cent of the 5 billion trips made domestically in China. Its visitor numbers are much lower than Asian destinations like Bali or Phuket.
“Hainan has extremely high hopes for President Xi’s visit and hope to receive some supportive policies,” said Mr Liu Feng, a researcher of Hainan Normal University Maritime Silk Road Research Institute. “Designating the island as a tax-free zone, or even just increasing the number of duty-free shopping locations, will inject vitality into Hainan’s tourism development.”
Mr Xi’s visit is timed for the province’s 30th anniversary.
Building it up would allow China to keep more of its tourists at home. This would hurt not just Macau but other countries like Vietnam and Australia that have sunk billions into attracting Chinese gamblers.
Yet, for now, some worry that Chinese regulations make it hard for tourism to flourish in Hainan.
Higher-end cultural offerings are stymied by a censorship regime suspicious of foreign film and art, as well as onerous duties on imports.
Property developer Zhang Baoquan, who’s spent more than 10 billion yuan building a complex combining hotels, convention space and a shopping mall in Hainan, dreams of hosting art fairs and film festivals if the province had some kind of a free-trade zone.
Mr Zhang believes policy concessions such as those on a free-trade zone may be on the horizon with Mr Xi’s visit.
“The tax support will be the most helpful policies for Hainan,” he said. “This year will be a turning point for this place.”
Meanwhile, MGM through a joint venture with China’s Diaoyutai State Guesthouse has made investments in Hainan and hopes to open two more hotels there.
The MGM Grand Sanya in Hainan has about 675 rooms, and is one of the best performing hotels in the southern Sanya area, said Mr William Scott, general manager of MGM’s joint venture with Diaoyutai.
The business has a letter of intent for a Bellagio hotel and is pursuing another hotel in Sanya. The hope is for more government support in areas like air traffic infrastructure to boost tourism, Mr Scott said.
Hainan’s government has commissioned a group of eight scholars to study how to develop gambling tourism there — and how to legalise gambling in China.
One member of the group, Associate Professor Pei Guangyi from the School of Economics and Management at Hainan Normal University, published a paper in March arguing China should legalise gaming to reduce capital outflows through foreign casinos and introduce a body of regulations.
“Since you can’t stop Chinese people from gambling it is a better solution to make sure that foreign or private capital do not overly profit from it,” he said.
Source: todayonline.com
Source: European Gaming Media and Events
The iGaming industry is advancing at breakneck speed, driven by technological innovation and evolving player expectations. Itai Zak, Executive Director of iGaming at Digicode, emphasizes the importance of bridging client aspirations with customized business solutions. Key trends shaping the future of iGaming include live dealer games, blockchain integration, artificial intelligence (AI) and machine learning (ML), enhanced personalization, and shifting regulatory environments. Let’s delve into how these trends influence the industry, presenting new opportunities while paving the way for future growth.
A Closer Look at Emerging Trends
- Live Dealer Games
Live dealer games are revolutionizing the online gaming experience, blending the best aspects of land-based casinos with the convenience of virtual gaming. Players can now engage with real-life dealers via high-definition video streams, enhancing the social component of online gambling. This bridge between physical and virtual casinos introduces interactive features like live chat and immersive gameplay. Industry leaders like Evolution Gaming and NetEnt are setting new standards in player engagement with innovative game formats and top-tier studio setups, redefining the realism and appeal of live gaming.
- Blockchain and Cryptocurrency Integration
Blockchain technology is transforming iGaming by offering unparalleled transparency and security. With blockchain’s ability to enable provably fair gaming, players can verify that each round is fair via an immutable ledger. Cryptocurrencies like Bitcoin and Ethereum facilitate faster, more secure transactions, catering to tech-savvy players who value privacy. Platforms like Bitcasino.io are leading the way, leveraging blockchain to ensure fairness and seamless payments. However, the rise of blockchain also attracts regulatory attention, requiring operators to balance innovation with compliance as governments navigate this new technology.
- Artificial Intelligence and Machine Learning
AI and ML are instrumental in enhancing player experience and operational efficiency. AI algorithms analyze player behavior in real-time, offering personalized game recommendations and promotions. Additionally, AI-powered chatbots provide instant customer support, improving user satisfaction. AI-driven predictive analytics also help operators fine-tune marketing strategies based on player preferences. Companies like Bet365 are already using these technologies to stay ahead of the competition, offering more personalized and efficient gaming experiences.
- Richer Personalization and Engagement
Personalization has become crucial for iGaming operators looking to boost player satisfaction and retention. By leveraging data analytics, companies can offer tailored game recommendations, dynamic bonuses, and individualized promotional offers. This level of engagement enhances the player experience and strengthens loyalty. Industry pioneers like DraftKings and FanDuel push the envelope by offering highly customized features, such as personalized fantasy sports leagues and bespoke betting options.
- Regulatory Changes and Market Expansion
The constantly evolving regulatory landscape offers both challenges and opportunities for iGaming operators. As more regions legalize various forms of online gambling, companies gain access to new markets. With their large populations and increasing internet penetration, emerging markets like Brazil and Nigeria represent lucrative opportunities. However, navigating the diverse regulations in these markets requires agility and strict compliance with local laws to succeed.
- Enhanced Payment Solutions
With digital transactions becoming the norm, the demand for fast, secure, and flexible payment methods is skyrocketing. From digital wallets to instant banking and cryptocurrencies, players expect payment solutions that offer convenience and security. This growing demand is driving innovation in payment processing, giving operators more opportunities to streamline the transaction process while building trust with users.
Future Implications
The Expanding Role of AI and Blockchain
AI and blockchain are not just current trends, but they are poised to play an even more significant role in iGaming’s future. As AI technology evolves, more sophisticated algorithms will emerge, enabling real-time adaptation to player behavior and preferences. Blockchain’s application may extend beyond transparency and security, transforming game mechanics and player interactions potentially redefining how games are designed and played.
Shifting Player Preferences
Player expectations will continue to evolve toward immersive, interactive experiences. As Virtual Reality (VR) and Augmented Reality (AR) become more mainstream, they will significantly influence the future of iGaming. Players will demand more engaging, lifelike environments, pushing the industry to create innovative game formats and features that offer deeper immersion and entertainment value.
Regulatory Developments
The regulatory environment will continue to evolve, and iGaming operators must stay agile to navigate future changes. New regulations may increasingly emphasize responsible gaming and player protection, influencing platform design and operational practices. A more harmonized regulatory framework across jurisdictions could provide stability while requiring operators to prioritize compliance.
Integrating Emerging Technologies
Technologies like 5G and edge computing are set to revolutionize iGaming by enabling faster, more reliable connectivity. This will allow for more complex game designs and real-time player interactions, opening new avenues for innovative gaming experiences. As these technologies mature, operators will have greater opportunities to differentiate their offerings. The potential of these emerging technologies to revolutionize iGaming is truly exciting and promising for the industry’s future.
Final Thoughts
The iGaming industry is on the cusp of significant transformations, driven by technological advancements and shifting player demands. Innovations like live dealer games, blockchain integration, AI, ML, and enhanced personalization are just the beginning. As the industry evolves, staying ahead of these trends will be critical for operators looking to thrive in an increasingly dynamic environment.
At Digicode, we are constantly exploring new technologies and refining our solutions to meet the evolving needs of our clients. Our focus on adaptability and foresight ensures that our clients are not just keeping pace with the industry—they’re leading it.
The post Innovations Redefining iGaming: What Operators Need to Know appeared first on European Gaming Industry News.
A partnership between game developer Turbo Games and iGaming solution provider and aggregator Slotegrator began in November 2022 via the APIgrator game integration solution. Since then, the collaboration has been developing successfully — and now it’s time to analyze what made it successful.
Turbo Games has noticed how the new technologies spreading throughout the industry can work for the good of brand transparency and player loyalty: “We can already see how blockchain technology has made it possible to make betting checks more accessible to players. All you need is a blockchain-hash and a decoder service. We think we will continue to move in this direction. Many traditional online casinos do not offer the possibility to check the bet. Sooner or later we all have to come to this. Perhaps the development of artificial intelligence will help here, because we are already seeing its involvement in all spheres of human life.”
Turbo Games specializes in provably fair games. Provable fairness is a concept where players can verify their wins or losses using blockchain technology — the outcome of the game is dictated by a smart contract and is absolutely random, barring the possibility of any human involvement. Using cryptographic hashing algorithms, the gambling site and the player’s device both generate seeds (random strings of numbers). Players receive a key that allows them to check the results; if the results are the same as the game round they witnessed, it proves that there was no foul play.
According to statistics from Turbo Games, the audience for provably fair games is mostly between 18 and 25 years old. However, there are also players aged 35-40 who prefer traditional games but would like to try something new, and have turned their attention to provably fair games.
There are good odds that the technology of provably fair games will become more popular, if not even commonplace, because it gives players a feeling of transparency and proves that the business is trustworthy without the need to search through dozens of reviews. Whereas many innovations in iGaming simply add entertainment, provable fairness addresses security concerns and reassures players that they’re not being exploited, which is invaluable.
Provably fair games are beneficial for both players and online casinos. Vadim Potapenko, Head of Sales at Turbo Games, comments: “It often happens that the users are not satisfied with the result, because gambling is not only about big wins, but also possible losses. By allowing them to check the fairness of a bet, we make life easier for platforms and players. Of course, this allows us to communicate with partners and users that we work honestly and that’s why they should trust our games.”
Ayvar Gabidullin, Business Development Manager at Slotegrator, adds that “this type of game is now becoming more and more popular and has great potential for both players and game providers in the future. On the part of the player, the advantage is that the player can always be sure that his game is fair and he can independently check any of his bets. And for the game provider, this also simplifies the process of implementing casino games, since now it will not be necessary to obtain the appropriate certificates from independent laboratories before launching new games, they can immediately enter the market with these games and where anyone can check the result and make sure that that there is no cheating with players. Many game providers are starting to look towards this type of game. And as far as I see, many operators are starting to think about adding these games.”
What do players in 2023 need? The iGaming industry is all about reputation and trust. Players have a huge number of platforms to choose from, making them pickier and pickier. There’s an abundance of forums where players leave reviews, so if players view a brand as untrustworthy, there are plenty of places they can share their opinion. Provable fairness not only stops that from happening, it provides evidence to the contrary, giving players something else to talk about.
Slotegrator also recommends investing time and effort into localization and creating an effective and detailed marketing strategy — before trying provably fair technology players need to get to the platform, and there is no acquisition without marketing.
ABOUT SLOTEGRATOR
Since 2012, Slotegrator has been one of the iGaming industry’s leading software and business solution providers for online casino and sportsbook operators.
The company’s main focus is software development and support for online casino platforms, as well as the integration of game content and payment systems.
The company works with licensed game developers and offers a vast portfolio of casino content: slots, live casino games, poker, virtual sports, table games, lotteries, casual games, and data feeds for betting.
Slotegrator also provides consulting services in gambling license acquisition and business incorporation.
More information: https://slotegrator.pro/
ABOUT TURBO GAMES
Turbo Games — a provably fair games provider that belongs to Turbo Stars company — has an ambitious goal to establish widespread recognition throughout the iGaming world. Even though it is young, the company consists of professionals who have been working on the brand for over five years and are even planning to introduce a new brand for a wider audience soon.
Turbo Games also works in Europe, India, and South Africa, where the company sees the most potential and expects the same “hype” as in Brazil.
The portfolio of Turbo Games consists of 21 titles, including well-known games like Mines, Crash X, DoubleRoll, Hi-Lo, and Plinko. The studio releases a game every month. However, not all games are developed from scratch. Wicket Blast and Spin Strike, the last two releases, are based on cricket and the Indian Premier League. Crash X remains the most popular fast game in the Turbo Games portfolio, and the studio reports that crash games enjoy stable levels of popularity. Overall, the main focus of the brand is provably fair games.
More information: https://turbogames.io/
Looking to take your career to the next level in the games industry? Then, Nordic Game Talents is the place to be! Games Factory Talents has teamed up with Nordic Game to bring you Nordic Game Talents.
From Oct 27-29, the online and interactive event is dedicated to recruitment and career building in the creative & games industry within the Nordic region. The event empowers participants to be part of a bigger community and motivates them to explore new paths in achieving their career goals.
Hiring creative & games studios – Supercell, Funcom, Panzerdog, Tactile Games, Gamecan, Fingersoft, Dazzle Rocks, Redhill Games to name a few from the Nordic region will be participating in the event. These studios will share information on their latest projects, work culture and what it takes to be part of their team. The individual games associations from Finland, Denmark, Sweden, Norway and Estonia will share insights through live sessions on the booming games industry in their respective countries. Career development topics pertinent to job seekers like – How to have a successful first interview, Creative Portfolio reviews will also be discussed.
Experienced game industry professionals and individuals beginning their careers from around the world are welcome to join the event. One-to-one interviews with the hiring studios can be scheduled through the event platform. A great opportunity to get to know the studios and network with game professionals from around the world.
Participating in the event
As a job seeker attending Nordic Game Talents, take a few minutes to fill out a simple registration form. After filling the registration form you will receive a link to the online event platform – PINE, to join the event on 27th October. Participants joining Nordic Game Talents will also receive a free-of-charge pass to the Nordic Game Conference.
To view the complete agenda, please click here and to learn more about the event please visit Games Job Fair
About Games Factory Talents
A Helsinki-based talent attraction agency dedicated to the games & creative industry. Our services include direct recruitment, organizing game job fairs and managing a community of game industry professionals through our GameDev Talent Board.
To learn more about Games Factory Talents visit – Games Factory Talents
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