Inside Asian Gaming

INSIDE ASIAN GAMING | October 2010 46 seeing an increase in convention business during October, saying that several groups are already booked. “We can say with a fair degree of confidence that October looks like a very good month for Las Vegas,” he said. Shuffle Master 3Q earnings up 14% The addition of table games to casinos in Delaware, Pennsylvania and the opening of gambling in Singapore, lifted Shuffle Master’s third-quarter earnings. The Las Vegas-based gambling equipment provider said its net income was US$5.8 million, or 11 cents per share, in the three-month period ended July 31, up from net earnings of $5.6 million, or 10 cents per share, a year earlier. Revenue rose 14.2% to $51.5 million from $45.1 million. Shuffle Master told investors the sales of automated card shufflers into Delaware and Pennsylvania, which added blackjack and poker tables during June and July, increased 15% in the quarter. Shuffle Master said it now has 6,588 shufflers leased to casinos around the world, a 16% increase from a year ago. More shufflers were leased to casinos in Delaware, Pennsylvania and Singapore. In a statement, Shuffle Master Chief Executive Officer Phillip Peckman said the company saw several of its electronic table games removed by casinos in Pennsylvania to make way for live gaming. However, substantially more shufflers were placed to offset the loss of the electronic tables. “Our strong quarter was the result of many factors,” Mr Peckman said. Roth Capital Markets gaming analyst Todd Eilers told investors he expected Shuffle Master to benefit from the gaming expansion in Pennsylvania and Delaware. He suspected that New York’s racetrack casinos could soon allow the use of products like Shuffle Master’s electronic gaming tables. Elaine Wynn lands spot on Forbes list Elaine Wynn, the ex-wife of Wynn Resorts Ltd Chairman Steve Wynn, landed a spot on the Forbes 400 List of Wealthiest Americans , due in large part to the monetary settlement that ended her marriage earlier this year. Elaine Wynn was credited by Forbes with having a net worth of US$1.05 billion, landing her in 382nd place on the list. Steve Wynn’s net worth was $1.9 billion, down from $2.3 billion in 2009. Steve Wynn came in 205th place, falling 64 spots from a year ago because of the divorce payment. In January, following finalization of their divorce, Steve Wynn transferred 11 million shares of stock in Wynn Resorts to Elaine Wynn’s control. Elaine Wynn is a member of the company’s board of directors. At the time, the stock was worth US$741 million, but it has since increased about 25% in value. In anticipation of the divorce in August 2009, the Wynns sold Briefs International Briefs MGM Resorts aims to pay off debt MGM Resorts Chairman and Chief Executive Officer Jim Murren said signs are pointing toward an economic turnaround for his company’s Las Vegas hotel-casinos, but any profits will go toward eliminating the US$13 billion in long- term debt the company accumulated during the downturn, reported the Las Vegas Review-Journal . “As the parent of MGM Resorts, we are extremely focused on deleveraging this company,” Mr Murren said. “We know we have a lot of tools at our disposal, but (paying down debt) is our absolutely overarching objective.” One tool that won’t be used is the sale of any hotel-casino within the MGM Resorts portfolio, other than the previously announced plan to sell its 50% stake in Atlantic City’s Borgata resort. Mr Murren said it was “extremely unlikely” that an MGM Resorts’ Strip property or one of the company’s casinos in Detroit or Mississippi would be sold. “The time to consider that action has come and gone,”Mr Murren said. “We’re in a different place from a year ago. We’re now in a much stronger financial position. We have so many other tools available to use for deleveraging purposes.” Mr Murren hinted that some of the proceeds from a planned initial public offering on the Hong Kong Stock Exchange later this year might be used to pay down corporate debt. On 4th October, MGM Resorts filed documents for the potential listing. The company plans to back the shares with the MGMGrand Macau, which is owned with Pansy Ho in a 50-50 joint venture partnership. HavingtheMGMGrandMacauhashelpedthecompany’sbusiness on the Strip. Macau, Mr Murren said, has stimulated visitation to Las Vegas, especially for rival casino operators Wynn Resorts Ltd and Las Vegas Sands Corp, which have properties in Macau. Mr Murren said that high-end baccarat play has helped keep many Strip casinos afloat the past year. With the addition of Aria, CityCenter’s centerpiece hotel-casino, Mr Murren said, MGM Resorts controls roughly 50% of the Strip’s baccarat market. On the Strip, gamblers have wagered more than US$5.3 billion on baccarat through July, about 33% more than a year ago, figures from the Nevada Gaming Control Board show. “Setting aside hold percentage, the underlying business is expanding,” Mr Murren said. “Baccarat was the only glimmer of light operationally in 2009. We’re getting double-digit increases in the drop. I expect that to be pretty robust throughout 2010 and frankly, into 2011 also.” Mr Murren predicted that MGM Resorts’Strip properties will start Jim Murren Jim Murren