Inside Asian Gaming

October 2010 | INSIDE ASIAN GAMING 47 Briefs the Las Vegas Review-Journal . In a statement, Penn National said it purchased all of the M Resort bank debt, plus US$160 million of subordinated debt formerly held by MGM Resorts International, from Bank of Scotland, a unit of Lloyds Banking Group. M Resort was built by Anthony Marnell III and his family at a cost of US$1 billion. The price included $300 million for the 93-acre site at the corner of Las Vegas Boulevard South and St. Rose Parkway, and $700 million for construction. “This transaction represents a great opportunity for Penn National, M Resort, its customers and employees as we address the financial uncertainty anddebt burdenwhichhas created anoverhang on M Resort’s operations,”Penn National Chief Executive Officer Peter Carlino said in a statement. Penn National operates racetracks and 16 casinos in US cities other than LasVegas andAtlantic City. In June, PennNational received a Nevada gaming license after acquiring 1% of a small Nevada slot machine manufacturer. The move cleared the path for the company to move quickly and buy a Las Vegas-based resort. M Resort has 390 hotel rooms and a 92,000 square foot casino. The stylish property has nine restaurants and more than 60,000 square feet of meeting and conference space. M Resort’s master plan includes the potential to develop up to 1 million square feet of retail and a multi-screen digital movie entertainment complex. M Resort opened at the height of the economic downturn following a year-and-a-half building process. The operators had been banking on planned nearby housing communities and businesses to fuel the customer base. The sour economy halted or cancelled those projects. M Resort opened to large crowds enticed by a massive marketing effort. The heavy business forced M Resort to hire 250 more workers to its 1,800-person work force. When the newness wore off, business slowed. Nevada gaming revenues jump 11.5% in August Nevada casinos reversed five straight months of gaming revenue declines in August with an 11.5% year-on-year increase. According to theGamingControl Board, Nevada casinos collected US$944.5 million from customers in August compared with almost $847 million in the same month last year. The figure was only the second monthly increase this year. On the Strip, gaming revenues grew 21.1% during the month. Strip casinos collected US$544.3 million from customers in August, compared with almost $450 million a year ago. Strip casinos had fared better than those in the rest of the state this year. In July, gaming revenues were flat while monthly revenues increased twice this year, including a nearly 33% hike in February (largely driven by ethnic Chinese playing during Chinese New Year). The rest of Clark County was a mixed bag. North Las Vegas casinos were up 13.6%, but downtown, Laughlin and Mesquite all showed declines. Gaming revenues in Clark County as a whole were up 13.6%. Gaming tax collections based on the August revenues were almost US$61.8 million, an increase of 24.4% compared with $49.7 million collected in the same period a year ago. For the first threemonths of the fiscal year, gaming tax collections are up 1.3%. 2 million shares of the company’s stock for about US$114 million. It was believed at the time that she received most, if not all of the proceeds. The Wynns were married twice for a total of 42 years. They met in college, married in 1963 and broke up in 1986. They reconciled five years later. David Schwartz, director of gaming research at the University of Nevada, Las Vegas, said Elaine Wynn earned every penny of the settlement. She was present at the beginning of both of Steve Wynn’s companies: Mirage Resorts, which was sold to MGM Grand Corp. in 2000 for US$6.4 billion, and Wynn Resorts, which was founded in 2002. Schwartz pointed out ElaineWynn was inducted into the Gaming Hall of Fame in 1999, seven years before Steve Wynn’s induction. Separately, SteveWynn and ElaineWynn control about 9% of the outstanding shares of Wynn Resorts, which are traded on Nasdaq. Aruze USA Inc, a subsidiary of Kazuo Okada’s Aruze, controls 19.9% of the outstanding shares in Wynn Resorts and is the casino operator’s largest shareholder. Under an amended shareholders agreement, Aruze and the Wynns vote their shares together on matters coming before the board, constituting 37.9% of the company’s outstanding shares. Las Vegas Sands Corp Chairman and CEO Sheldon Adelson came in 13th place on the Forbes 400 List of Wealthiest Americans with US$14.7 billion. The 77-year-old company founder rose 13 spots on the list over his 2009 ranking. MGM Resorts International founder Kirk Kerkorian was at spot No. 119 with a net worth of US$2.9 billion. The 93-year-old financier is still on the board of directors of the casino operator and is the company’s largest shareholder with 37%. Forbes estimated that Kerkorian’s stake in MGM Resorts, once valued at US$11 billion, is now worth about $1.5 billion. Penn National buys M Resort Casino operator Penn National Gaming has acquired the 19- month-old M Resort for US$230.5 million, according to a report in M Resort