Inside Asian Gaming

39 38 Gambling Mogul Passes Away Kerry Francis Bullmore Packer, head of Publishing and Broadcasting Ltd (PBL) died on December 26, aged 68. Packer amassed US$5 billion by building his family’s newspaper company into an empire encompassing everything from casinos to chemicals. A gambling fanatic,Packer is rumoured to have once lost almost US$20 million at a Las Vegas casino, but his generousity is equally legendary. When a casino waitress told him she worked nights to keep a roof over her children’s heads,he left her a cheque for the balance of her mortgage as a tip.On another occasion, Packer encountered a Texas oilman being rude to another waitress.The Texan bragged he was worth US$100 million, so Packer told him,“I’ll toss you for it.” The Texan didn’t take the bet. Packer was a sickly child who spent nine months in an iron lung after an attack of polio. He worked all hours and lived on a diet of burgers, milkshakes and cigarettes. His weight ballooned and his health began to fail. He had a heart attack at a polo game in Sydney in 1990 and only survived because an ambulance with a defibrillator machine happened to be passing. Packer had a second heart attack in 1995, and in 2000, after falling ill with cancer, he received a new kidney. The transplanted organ began to fail in December, and Packer ordered his doctor not to try to keep him alive, saying “this is my time.” He died in his sleep at his Sydney mansion with his wife and family at his bedside.Packer is survived by his wife of 42 years, Ros, daughter Gretel, 39, and son and heir James, 38. Atlantic City Gambling Revenue Tops US$5bn Atlantic City casino gambling revenue rose 7.3% year-on-year in December, while annual revenue was up 4.4% to US$5.02 billion – the first time the total exceeded US$5 billion. According to a Reuters report, “Atlantic City is working to become an entertainment destination like Las Vegas, adding hotel rooms, shopping and dining to a mix still dominated by gambling. Nevada topped $10.5 billion in casino revenue in 2004, as Las Vegas has transformed itself into an entertainment centre.” UK Plans Online Gambling Summit The UK government plans to hold an international summit on online gambling this year. The summit’s goal is to devise a set of international standards that can be applied to the industry to promote business, while at the same time protecting consumers. Britain was one of the first countries in the world to legalise online gambling. The conference will bring together governments, regulatory agencies and legitimate gambling operators to ensure that consumers are protected and that the market for reputable services can flourish. Controls are also needed to ensure that organised crime does not move into the online gambling field, that advertising is legal, decent, honest and truthful and that the vulnerable are protected from the consequences of gambling addiction. Israel Discusses Casino Plans The Israeli Government is discussing plans to allow Israel’s first casino to be built in Eilat, the country’s most popular vacation destination and seaside resort. Abraham Hirshenzon, Israel’s Minister of Tourism, is in favour of the casino,saying that it will draw tourists from all over the world to Israel,and that it will stop Israeli citizens from taking money out of the country and gambling in casinos abroad, most notably in Sinai and Cyprus. Online Gambling Boom Worldwide online gambling revenues will top US$10 billion in 2005 for operators of virtual casinos and bookmaking, according to market research firm eMarketers.The firm said the figure represents only the“Vig,”or house cut – which means there was likely well over US$200 billion in play over the year. “Fuelled by a poker craze, the growth of broadband and television coverage, online gambling is quickly moving to the mainstream,” says Ben Macklin, an analyst at eMarketer. Online gambling is considered by US authorities to be illegal,but that does not prevent many Americans from visiting Internet gaming sites, which are mainly based offshore. The eMarketer report said research shows 20 to 30 million US Internet users visited gambling or sweepstakes sites in February 2005,representing about 15 to 18% of all US Internet users.“US consumer spending on gambling is roughly 20 times the amount spent on digital music downloads,”the report noted. In Europe, the report found 14 million Internet users visited gambling or sweepstake sites, with Germany having the largest number of users. As a percentage of Internet users, however, France and Sweden top the list. Nevada Waiting to Go Handheld Nevada casinos are waiting to hear if a new law will be passed to allow them to introduce handheld wireless gambling devices. Supervising bodies expect the law, which was signed in June by Governor Kenny Guinn, to be approved as early as February or March. The handheld devices are to be connected to a main casino server and would be checked out by patrons who can set up an account and put limits on how much they would want to spend in advance. Several companies have already shown interest in developing the wireless device, including Cantor G&W (Nevada) LP, a financial services business that has already created an interactive bond-trading device. Blackpool Lobbies for UK Super Casino Blackpool is taking its campaign to be named as the venue for the UK’s first super casino to the House of Commons. The resort city is already the favourite to win the licence from the government to build a Las Vegas-style development. The government has said there will be only one licence offered, after backing down on plans for eight super casinos around the country. Manchester City Council still has plans to build a super casino next to the Sport City development in the east of the city. Mayor Seeks Gambling to Rebuild New Orleans New Orleans’ Mayor proposed building a casino zone near the historic French Quarter to jump start the hurricane-ravaged city’s economy, saying a bold move was needed to restore lost tax revenue. New Orleans is struggling to rebound from Hurricane Katrina, which in August fractured flood walls and flooded 80% of the city. Under Mayor Ray Nagin’s proposal, a U-shaped section encompassing several blocks of the city’s downtown area would allow large hotels to convert part of their properties into Las Vegas-style casinos. Only one casino is currently operating in that area, and Nagin said as many as seven new ones could open. The existing casino - Harrah’s - has stirred bitter political battles and suffered from financial problems in recent years. Harrah’s Goes Global In December, Harrah’s Entertainment Inc. announced plans to co-develop a Caesars casino resort in the master-planned El Reino community of Ciudad Real, 118 miles south of Madrid. Harrah’s acquired the Caesars brand in June 2005, as part of its US$9 billion buyout of Caesars Entertainment. Harrah’s has recently seen a flurry of international development activity. Also in December, the company signed an MOU with Slovenia’s largest casino operator to develop a luxury casino resort in Nova Gorica, Slovenia. In November, Harrah’s announced plans to enter the Bahamas, signing a letter of intent with Baha Mar Resorts and Starwood Hotels to create a 1,000-acre destination beachfront resort. In all three developments, which total almost US$3 billion in investments by Harrah’s and its partners, the casino complexes will be the largest of their kind in each country.Harrah’s is also currently bidding to develop one of Singapore’s two planned integrated casino resorts. Russia’s Ritzio Plans London IPO Russian gaming giant Ritzio Entertainment Group, owner of a chain of casinos and gambling parlours in republics of the former Soviet Union, plans to put 15% of its capital up for sale on the London Stock Exchange. If the offering is successful, Ritzio could put up more shares for sale. Ritzio Entertainment Group,founded by millionaire Russian businessman Oleg Boiko,runs a vast network of gaming facilities,bars,nightclubs and restaurants in Russia, Ukraine, Kazakhstan, the Baltic States and Romania, including more than 35,000 slot machines. The gaming sector is undergoing a boom in the region and the company reported turnover last year US$ 325 million.