Inside Asian Gaming

June 2009 | INSIDE ASIAN GAMING Briefs Hotels of 2009”in its June issue. The “It List”is an annual list compiled by the magazine. Travel and Leisure said while there are touches of opulence and luxury around every corner, “we fell for the natural touches: sunlight inside the casino and a botanical backdrop of sculpted flower beds, laurel trees, and potted palms that make the 2.3 million square feet of public space feel downright cozy.” The US$2.3 billion Encore opened in December 2008 with 2,034 rooms and suites, 72,000-square feet of gaming space, five restaurants and 11 high-end retail stores. Wynn’s namesake property, Wynn Las Vegas, also has received numerous awards, including the prestigious AAA Five Diamond award, Mobil Five Star and the Michelin Guide’s Five Red Pavilion. Other hotels on the list include the Montage in Beverly Hills, ME Barcelona and the Four Seasons Resort at Anahita. MGM MIRAGE wraps up restructuring According to the Las Vegas Gaming Wire , MGM MIRAGE completed its US$2.6 billion corporate restructuring effort last month as the company also announced it would be involved in a US$4 billion project to build and operate smaller, non- gaming versions of the Bellagio and MGM Grand in Dubai. The casino operator’s restructuring plan is part of its efforts to help dig the company out from under its debt and leveraging issues. The Strip casino giant sold 164.7 million shares of the company’s stock at US$7 a share on the New York Stock Exchange to raise US$1.1 billion. The stock sale reflected 143 million shares placed on the open market and more than 21 million shares purchased by the company’s underwriters. Also, MGM MIRAGE raised US$1.5 billion in the private sale of senior secured notes in which the Bellagio and The Mirage were used as collateral. MGM MIRAGE Chairman and Chief Executive Officer Jim Murren said the deal marked a new beginning for the company, which operates nine Strip resorts and is building the US$8.5 billion CityCenter development. “We are now well-positioned to continue the work needed to achieve recovery and improve profitability,” Murren said. Before the deal, MGMMIRAGE had approximately 276.6 million shares outstanding. A stock offering by MGM MIRAGE reduced the majority stake of Los Angeles billionaire Kirk Kerkorian to 39% of the company, down from his previous controlling stake of 53.8%. Through his privately held Tracinda Corp, Kerkorian, 91, who founded MGMMIRAGE and is a member of the company’s board of directors, agreed to purchase 14.3 million shares of the common stock offering at US$7 a share. Analysts said Kerkorian’s reduced holdings shouldn’t have any impact on MGM MIRAGE. He is still considered the one person who has final say in the company’s direction. Meanwhile, in Dubai, MGM MIRAGE said Pearl Dubai will finance construction of a 250-room Bellagio, a 350-room MGM Grand and a 30-suite Skylofts hotel in the Persian Gulf city-state. MGM MIRAGE Hospitality will manage the ventures at the Dubai Pearl, a development near the base of the man-made Palm Jumeirah island. Russian President puts foot down The Moscow Times reported last month that “using uncharacteristically stern language,” President Dmitry Medvedev told Federal Tax Service chief Mikhail Mokretsov that he would tolerate no delays in moving all casinos to special regional zones by July. New rules approved in late 2006 require all gambling establishments to move to one of four zones established for the industry by July 1 of this year. Casinos must be closed, and betting will be banned outside the zones, which are located in areas on the Azov Sea, in the Far East and in the Altai and Kaliningrad regions. The legislation was introduced to the State Duma by then-President Vladimir Putin. The rules have come under fire from casinos and investors in the gambling zones, who have said that the zones don’t have the infrastructure to build new casinos in time for the summer deadline. Casino owners have said they will be forced to transform their establishments into less profitable restaurants, concert halls and even poker clubs to stay open in Moscow, their main market. Kirk Kerkorian Dmitry Medvedev The Encore Las Vegas atrium 63