French online gaming sector reports substantial growth in H1 2023

Dutch authorities have apprehended a suspect linked to the ZKasino scam. The arrest was made on 29 April, with the suspect, a 26-year-old man, facing charges of fraud, embezzlement, and money laundering.

The ZKasino platform, which initially presented itself as an innovative gambling platform, has been under scrutiny for its dubious operations. The platform promised investors a return on their investments within 30 days, a promise that was never fulfilled. The smart contract associated with the platform suggested that there was never an intention to return the funds, raising red flags among the investor community.

The Fiscal Information and Investigation Service (FIOD) seized assets worth over 11.4 million euros ($12.2 million) during the arrest. The seized assets include cryptocurrency, real estate, and luxury cars. This marks the first arrest in the ZKasino fraud case, where investors have reportedly lost at least $33 million in digital assets.

The platform went live on April 20, attracting over 10,515 Ether (ETH) from more than 10,000 investors. However, investor concerns escalated when an on-chain transaction revealed ZKasino moving all 10,515 ETH into the Lido staking protocol. Additionally, the platform altered the wording on its website, removing a statement that assured investors that their ETH “would be returned.”

Adding to the controversy, ZKasino announced in a March post that it had closed a Series A investment round at a $350 million valuation. The platform claimed backing from crypto exchange MEXC and venture firm Big Brain Holdings, among others. However, Big Brain Holdings later clarified that it had not invested in ZKasino, labeling the platform as “fraudulent.”

While the identity of the suspect remains unconfirmed, speculation is rife within the crypto community. The suspect’s detention has been extended by 14 days for further investigation. As the case unfolds, risks and challenges in the rapidly evolving world of need to be continuously evaluated. The ZKasino case is a cautionary tale for investors, highlighting the importance of due diligence and regulatory oversight in the crypto space.

Maybank Securities Inc. projects a robust growth of 15 percent in the of the Philippines' gaming industry for 2024. In a recent note, the institution expressed optimism, maintaining a positive outlook on the sector.  

Analyst Raffy Mendoza highlighted the anticipated growth driven by the domestic mass and slots market, with additional upside potential from the gradual recovery of the VIP segment, notably led by South Korean visitors. 

Maybank expects growth to extend beyond Entertainment City, Manila, with the opening of Solaire Resort North and a surge in e-gaming activities contributing to the industry's expansion. 

In 2023, the Philippines witnessed a remarkable 33% year-on-year growth in GGR, reaching PHP 285.3 billion (€4.6 billion). Land-based venues constituted the bulk of this growth, accounting for approximately 80 percent of the industry's GGR, marking a substantial increase from the previous year. 

Mass tables and slot machines dominated Entertainment City's GGR, comprising 64% of the total in the financial year 2023. This underscores the growing demand from the domestic market, a trend expected to persist due to increasing private consumption. 

While Maybank anticipates challenges due to fewer Chinese visitors affecting the VIP segment, it notes a gradual recovery led by South Korean tourists. Despite Chinese arrivals being at only 24 percent of 2019 levels in the first quarter of 2024, Korean arrivals have reached 88 percent of pre-pandemic levels during the same period. 

The Philippine Amusement and Gaming Corporation (PAGCOR) the gaming industry to generate PHP 336.38 billion (€5.5 billion) in GGR in 2024, reflecting a significant 17.9 percent increase compared to 2023. 

Overall, Maybank's positive forecast underscores the resilience and potential of the Philippines' gaming industry, driven primarily by the domestic market's sustained growth and gradual recovery in the VIP segment, despite challenges posed by fluctuating visitor arrivals. 

Upcoming SiGMA event: SiGMA Asia 2024, 2 – 5 June. Find all the details .

South Korean foreigner-only gaming operators Grand Korea Leisure Co Ltd (GKL) and Lotte Tour Development recorded a decline in their April sales compared to the previous month. This decline reflects ongoing challenges faced by the industry despite improvements.  

, a subsidiary of the Korea Tourism Organization, experienced a 28.9 percent decrease in net sales in April compared to the same period last year. Table game sales dropped by 21.2 percent month-on-month, while machine game sales remained relatively stable. However, total sales for the first four months of 2024 declined by 17.7 percent compared to the previous year, without a specified reason for the decrease.  

Although the casino's table drop remained steady compared to March, it showed a notable increase of 7.8 percent from April 2023. The cumulative casino drop for the first four months of the year also demonstrated a significant rise of 17.6 percent compared to the same period last year.  

Meanwhile, Lotte Tour Development, operator of the Jeju Dream Tower casino resort, reported an 8.1 percent decrease in casino sales in April compared to the previous month. However, sales surged by 104.8 percent compared to April last year. Table game sales decreased by 7.7 percent month-on-month but showed a significant increase of 114.6 percent year-on-year.  

Lotte Tour's casino table drop for April witnessed a notable rise of 5.2 percent compared to March and a significant increase of 32.6 percent year-on-year.  

Despite fluctuations in sales and table drops, casino operators in continue to navigate challenges in the gaming industry. While some indicators show improvement compared to last year, the overall trend highlights the need for sustained efforts to bolster the sector in the face of ongoing uncertainties.  

Upcoming SiGMA event: SiGMA Asia 2024, 2 – 5 June. Find all the details .

The Philippine Amusement and Gaming Corporation () in a joint operation with the Philippine National Police Anti-Cybercrime Group (PNP-ACG), apprehended of 10 Chinese nationals and 26 Filipinos in two separate raids targeting illegal gaming operations and online scams in Laguna and Parañaque City. 

On Thursday, joint forces comprising the CIDG-NCR and PAGCOR apprehended a group of suspects, including 10 Chinese nationals, in Multinational Village, Parañaque. The arrests were made on charges related to the Anti Trafficking in Persons Act (RA 9208), Alien Registration Act (RA 562), and Cybercrime Prevention Act (RA 10175). 

Authorities confiscated a significant cache of assets during the raids, including mobile phones, computers, laptops, credit cards, vehicles, and Chinese government documents. Additionally, two vaults were discovered at the Parañaque residence, further implicating the involvement of the suspects in illicit operations. 

In the Parañaque raid, PAGCOR Senior Vice President for Security Cluster Raul Villanueva said the arrested Chinese nationals believed to have been part of a group that managed to escape from an earlier raid on a large gaming compound in Bamban, Tarlac last March. 

Nine Filipino female workers were also rescued, while one Filipino male serving as a bodyguard was arrested for possession of an undocumented .45 calibre pistol. 

The operation followed an earlier raid on Tuesday with the Philippine National Police Anti-Cybercrime Group (PNP-ACG) and PAGCOR security personnel which led to the involved in an illegal online raffle conducted via Facebook. The suspects, operating under the Facebook page "Lucky Dream 4," were apprehended while livestreaming their 50th raffle event from an office located within a subdivision in Biñan. 

In a press, release, PAGCOR Chairman and CEO Alejandro Tengco reiterated the agency's commitment to combating illegal online gambling and other illicit activities, stressing the importance of protecting the public, especially the youth, from such harmful endeavours. Tengco highlighted the agency's collaborative efforts with law enforcement agencies to strengthen its campaign against these unlawful practices. 

These coordinated efforts underscore PAGCOR's ongoing commitment to upholding regulatory standards and protecting the public from the adverse effects of illegal gambling and fraudulent activities. 

Upcoming SiGMA event: SiGMA Asia 2024, 2 – 5 June. Find all the details .