Inside Asian Gaming

INSIDE ASIAN GAMING | July 2010 46 Briefs International Briefs Top Hong Kong honour for Stanley Ho Macau’s former gaming monopolist Dr Stanley Ho has been awarded the Grand Bauhinia Medal by the Hong Kong government. The medal recognises the recipient’s life-long contribution to the well being of Hong Kong. In Dr Ho’s case, that means his funding of local charities. It’s the highest award under the Hong Kong honours and awards system that replaced the British one after the return of Hong Kong to Chinese sovereignty in 1997. “A responsible entrepreneur must know his or her obligations to society, and my personal experience tells me that fulfilling such obligations is a wonderful source of happiness and satisfaction,” Dr Ho, chairman of Macau casino operator SJM, said in his acceptance statement. Genting eyes US investments Malaysia’s Genting Group, which expanded its casino holdings from a single hilltop site near Kuala Lumpur into gambling resorts in Singapore, the Philippines and the UK, is now looking for investments in the US, according to a Bloomberg report. The report quoted Justin Leong, head of strategic investments and corporate affairs at Genting, saying “Genting Malaysia is aggressively searching for opportunities to invest in the US casino gaming market.” During the interview with Bloomberg in New York, Mr Leong added: “Our strategy is building a US presence.” Armed with US$1.7bn in cash and free of debt, Genting Malaysia was seeking acquisitions, new markets and potentially a strategic partnership in the US, Mr Leong said. The Kuala Lumpur-based company, which said last month it may bid to develop a slots casino at Aqueduct racetrack in New York, first invested in the US sector in May last year, buying MGM Mirage bonds, when the latter sought to raise cash to avoid a potential bankruptcy. “It’s unlikely to be a single asset. If we were to acquire something, it’s more likely to be a portfolio of assets or a substantial stake in a company.” Genting Malaysia was also looking at developments and new gambling jurisdictions opening in the US, Mr Leong said. Genting Malaysia had invested in every capital issue by Las Vegas- based MGM since, he said. Kirk Kerkorian, who founded MGM Mirage and is its biggest shareholder, said in October that his Tracinda was exploring“strategic alternatives”for its 37% stake. Kerkorian said in regulatory filings that MGM Mirage was undervalued and he was open to proposals. Mr Leong would not elaborate on Genting’s interest or say whether there had been talks with Mr Kerkorian, whose stake in MGM Mirage is valued at US$1.9bn. Revenue from the Malaysian casino, a gambling monopoly held for almost four decades, helped build the Genting empire that includes hotels, Star Cruises and Norwegian Cruise Lines, power generators and palm oil plantations. In February, a Genting affiliate opened Singapore’s first casino, a US$4.7bn resort with a Universal Studios theme park, adding to the group’s Resorts World casinos in Malaysia and the Philippines capital of Manila. Genting also is the biggest casino owner in the UK, operating under the Circus, Maxims and Mint brands. There is competition for deals in Las Vegas as the city recovers from its worst slump on record. Hedge fund billionaire John Paulson is acquiring a 9,9% stake in Harrah’s Entertainment. Genting Malaysia had held investment talks with large US casino companies since December 2008, Mr Leong said, declining to specify them. Mr Leong, nephew of Genting chairman and CEO Lim Kok Thay and grandson of founder Lim Goh Tong, joined the family firm in September 2004 after four years at Goldman Sachs. Genting is one of six potential bidders vying to renovate Aqueduct and operate a slot machine-style“racino”with 4,500 video- lottery terminals. Nevada gaming revenues dip in April Nevada gaming revenues fell almost 6% statewide in April, but casinos on the Las Vegas Strip fared better than the rest of the state. According to figures released by the Gaming Control Board, Nevada casinos collected US$810.4 million from gamblers in April, a 5.7% decline compared to $859.5 million collected in April 2009. On the Strip, gaming revenues in April were US$437.3 million, a decline of just under 1% compared with $441.7 million collected in the same month a year ago. Other areas of Clark County didn’t fare as well. Countywide, gaming revenues fell 6% while downtown casinos were off 9.1%. Boulder Strip casinos were down 25.5% and North Las Vegas casinos were off almost 12%. Casinos that make up the balance of Clark County saw revenues decline almost 13%. Casino licensees told to stay clear of Internet gambling companies A member of the Nevada Gaming Control Board said casino licensees should continue to keep their distance from Internet gambling companies that accept wagers from Americans, according to a report in the Las Vegas Review-Journal . In a letter posted on the agency’s website, control board member Randall Sayre told an unidentified gaming attorney that his advice to clients about not doing business with certain Internet gaming operators was “sound from both a state and federal perspective.” The letter was in response to a question surrounding the Justin Leong The Las Vegas Strip