What the Philippines brings to casinos worldwide

Chris Schnabel

This is AI generated summarization, which may have errors. For context, always refer to the full article.

What the Philippines brings to casinos worldwide

Manman Dejeto

Aruze's Batangas plant supplies almost 10% of slot machines worldwide

MANILA, Philippines – The bright lights and vast amounts of money laid down in Macau and Las Vegas have always been linked with the heady cocktail of the fast, high stakes lifestyle, constantly attracting those who wish to try their luck.

The Philippines plays a part in this, as the country contributes directly to one of the backbones of the gaming industry – the slot machine.

In Sto Tomas, Batangas, a 650,000-square meter facility churns out about 10% of the slot machines that people from all over the world flock to.

The factory is operated by Aruze G.A. Philippines Branch (Aruze), part of gambling magnate Kazuo Okada’s vast empire which includes Universal Entertainment Corporation (UEC) and its Philippine subsidiary, Tiger Resorts Leisure and Entertainment Incorporated (Tiger Resorts).

Okada, who plans to open up the 4th casino to rise in Manila’s Entertainment City next year, started it all by repairing jukeboxes and leasing them out in 1969.

This was  soon followed by the manufacturing and selling of pachinko machines and eventually slot machines, the beginning of Aruze.

The firm now concentrates on manufacturing slot machines and electronic gaming table and distributes them to casinos worldwide.

Although it is owned by Okada, the firm is not connected to UEC and it sells slot machines to other casinos as well, company officials pointed out.

PARTNERSHIP. The Philippine and Japanese flags fly in front of Aruze gaming's 650,000 square meter facility in Santo Tomas, Batangas.

PRODUCING. Workers at the facility working on its staple product, slot machines. The facility shipped out 4,500 units in 2014.

Software-based
Aruze Group Chief Executive Officer Takahiro Usui describes Okada as “a genius” who revolutionized slot machines by adding computerized software to its mechanical components.
Usui explained that previously, slot machines were purely mechanical until Okada combined this with software that allows for pre-determined winning results.
This is much more secure and reliable as slight mechanical faults do not result in payouts, and it is also much harder to cheat, he said.
It allows for flexibility. Since the result is pre-determined, the display can consistently produce combinations that are very close to winning ones, creating “more excitement for players,” he added.
Okada also added facets of Japanese culture, such as the blazing lights of pachinko machines to the slot machines in order to create a unique identity.
“It’s this kind of innovation, started by Mr Okada that runs in the DNA of the company. Without him the company wouldn’t survive,” Usui said.
Based on this innovation, Aruze has grown to supply almost 10% of the slot machines worldwide, and 15% to 20% in Asia.
In 2014, it booked a  revenue of $100 million (P4.5 billion) and is targeting at least a 20% increase this year, for a projected revenue of $150 million (P6.8 billion), Usui said.
The company has supplied about 1.5 million slot machines to casinos worldwide, all made in its Batangas factory.
INSPECTING. A worker inspects Aruze's latest product, an electronic Roulette gaming table before shipping it out. It features a virtual display using 3D mapping instead of a physical Roulette wheel.
From the Philippines
Aruze’s original manufacturing base was in Japan, Usui shared, but it decided to move its manufacturing base to the Philippines in 2009.
Starting out originally in Laguna, the firm then invested $35 million (P1.5 billion) to build a 65,000 sqm facility in Batangas, its only manufacturing plant in the world.
“We produce all our products here in Batangas and send them to Macau, Las Vegas, all over Europe, and Asia, Sydney, and Johannesburg. When you see our machines there, it all came from this plant,” Usui shared during a tour of the facility on July 22.
Last year, 4,500 units were exported from the plant. Usui added that shipment volume has already expanded by 160% year-on-year as of June 2015.
About 99% of the facility’s 400 employees are Filipino, including a 100-member Filipino research and development (R&D) team in Batangas to complement its 130-member R&D team in Tokyo, Japan.
All the software engineering and graphic work is handled by the Philippine team, while the hardware and concept design is done by the Tokyo team, Usui said.
He added that the firm plans to expand this from 600 to 700, as the facility can accommodate that number, with emphasis placed on expanding the R&D team.
“One of the biggest considerations for investing in the Philippines is the people. Moving our production here allows to produce these machines more efficiently,” Usui said.
The country’s young and educated demographic was a particular consideration as it is easier to hire good talent compared to Japan, Usui said, adding that Filipinos’ proficiency in English was also a big factor.
Geography also played a part as Aruze’s major market is in Asia and the Philippines is within 4 hours reach or less from most of the cities it delivers to, he said.
SUPERVISING. A worker calibrates an electronic display under a Genie's gaze.
MEASURING. A worker cuts graphics for slot machine reels. The graphics have to be hand-cut because of the complexity of the shapes, Aruze Gaming says.

Growing market

With the decline of  gambling revenues in Macau and Las Vegas, and the increasing shift to a more family-oriented destination, Usui sees a chance for the Philippines to become a shining light in the gaming industry.

“The Philippines is an ideal place for integrated casino resorts as it’s close to major cities in China, Korea, and Japan. In fact, the Philippine Amusement and Gaming Corporation (PAGCOR) announced a 20% increase in gaming revenue this year,” he said.

Another advantage, Usui said, is that the country can offer something completely different from established locations like Macau and Las Vegas.

“The country offers more choices for players. If they have time to leave Manila, they can enjoy a lot of beautiful beaches that other casino districts simply cannot offer,” he said.

EXPANDING. Aruze Gaming plans to expand its current workforce of 400 people as the facility still has plenty of room.

Easy to play

The rise of casino resorts in Manila bodes well for Aruze. Usui said that slot machines will continue to play a pivotal role in this regard.

Ironically, in an industry glamorized for its high stakes nature, it is the game with the lowest stakes that is arguably its most defining feature.

“The biggest reason for its popularity is the low barriers to play. You can spend only P10 ($0.22) on a slot machine, whereas games like blackjack often have minimum bets that run up to P200 ($4.4),” he said.

Slot machines are also the simplest and easiest games available to players.

“With a slot machine, you don’t have the stress of competing with others or constantly calculating odds. You can simply play the machine and hope to get lucky,” he said.  – Rappler.com

$1 = P45.35

Add a comment

Sort by

There are no comments yet. Add your comment to start the conversation.

Summarize this article with AI

How does this make you feel?

Loading
Download the Rappler App!