Inside Asian Gaming

INSIDE ASIAN GAMING | Oct 2007 a deal with potential acquirers and ended discussions to sell itself, disappointing investors. Trump Entertainment’s three casinos have been struggling along with the rest of Atlantic City, as the seaside gambling resort faces stiffer competition from new gaming facilities in nearby Pennsylva- nia and New York. Trump Entertainment’s Chief Executive Mark Juliano told Reuters in an interview in August that the company,which exited bankruptcy in May 2005, had made diversifying beyond Atlantic City a priority, and was open to selling one or more of its casinos at the right price. Mobile Gambling Boom The worldwide mobile gambling industry is set to dominate the market by 2010, with a worth of nearly US$12 billion, according to a new report by analyst firm Juniper Research. The report argues that the increase in the use of wireless payment services and the relaxation of re- mote gambling regulations in prominent global mar- kets will drive the sector into unprecedented growth. “Mobile lotteries have already experienced significant levels of adoption in the Far East, while European state lotteries will increas- ingly embrace the mobile environment in the medium term,” said report author Dr Windsor Holden. The report also predicts that global gross winnings from mobile gambling services will see an upsurge from just $106 million in 2007 to $3.2 billion in 2012. Another of the reports significant forecasts is that the US is set to overtake the UK, which is currently the largest single market for mobile gambling services, as a global leader of mobile gambling by 2012. US Dismisses “Exaggerated” Claims The US brushed off suggestions that it may have to provide US$100 billion in compensation to the European Union and other trading partners because of its restrictions on Internet gambling, ac- cording to a Reuters report. A US trade official, speaking on the condition of anonymity, said she could not reveal how much compensation—in the form of in- creased foreign company access to the US market—trading partners were demanding in the talks.“We can say that some of the numbers being put forward are based on faulty and exaggerated assump- tions,” she said. Lawyers for European online gaming firms—among the biggest in the world—said the EU should press for as much as US$100 bil- lion in compensation, given the plunge in market value of publicly- traded firms after Congress tightened Internet gambling restrictions last year. “This is by far the most significant WTO case ever and its implica- tions for both the US and the EU are enormous,”Naotaka Matsukata, a senior policy advisor with the international law firm Alston & Bird, said in a statement. “Given the size of the US gaming market, both the potential benefit for European industry and the corresponding damage to US companies is unprecedented.” The case dates back to at least 2003, when the tiny Caribbean na- tion Antigua and Barbuda challenged US Internet gambling restric- tions at the World Trade Organization. AWTO panel ruled two years later that a US law allowing domes- tic companies to provide online horse race gambling services dis- criminated against foreign providers. But it also said WTO members could restrict Internet gambling 44 Briefs Executives will begin presentations on the Adelaide property to prospective buyers ``in the next couple of weeks,’’ he said. ``We want credible, firm and good-value offers if this is going to proceed.’’ A prospective sale of the cinema business is more advanced with indicative offers expected by the end of this month. Buyout firmTPG Inc. is understood to be a bidder for Sky City, the Dominion Post reported on September 28 without saying where it got the information. Tabcorp Holdings Ltd., Australia’s biggest gam- ing company, said it wasn’t bidding for Sky City. Due diligence will last about four weeks and then the party will decide whether to make a formal bid,Toime said. Possible Trump Takeover Trump Entertainment Resorts Inc, which owns three casinos in Atlantic City, is reportedly in takeover talks. The Star-Ledger newspaper, citing three people familiar with the talks, reported that Trump Entertainment was in preliminary talks with Cordish Co., a real estate development firm that was involved in the development of two Hard Rock-branded hotel casinos. Trump Entertainment declined to comment. Representatives of Cordish were not immediately available for comment. Donald Trump’s casino company said in July that it failed to reach