Inside Asian Gaming

July 2012 | INSIDE ASIAN GAMING 47 Briefs gross slot machine revenue and tax-generating gaming property in the U.S.,” surpassing Pennsylvania, Atlantic City, Connecticut, and the Strip. The property has roughly 5,000 video lottery terminals and electronic table games. “Resorts World’s model has maximized gaming revenue for New York state in a manner that has not been replicated by any other facility in the nation,”Michael Speller, President of ResortsWorld New York, which is owned by Malaysia-based Genting Group, said in a statement. According to Resorts World New York, the casino generated US$57.5 million in gaming revenues in May. Resorts World said roughly $40 million of the revenues were distributed by the state to NewYork’s public education system, the state’s horse racing industry and other government entities. New York’s racetrack casinos pay all their gaming revenues to the state’s lottery commission, which returns 32.86% of the winnings back to the casinos. The remaining 67.14% is distributed throughout the state. Resorts World New York spokesman Stefan Friedman said Resorts World was not trying to compare itself to the entire Las Vegas Strip, which collected $248.9 million in gaming revenues from slot machines during the month, more than four times what were produced at Resorts World New York.. But on a casino-to-casino basis, “no other property is producing the amount of slot machine revenues that we’re producing.” Genting was the company behind the push earlier this year to approve casinos in Florida. The company spent $500 million to assemble 30 acres along Miami’s Biscayne Bay for a $3.8 bill ion hotel, gaming and entertainment complex. Plans for the casino fell apart when Florida lawmakers pulled a casino expansion bill from consideration. Genting has since said scaled back plans for the site and says it would develop a much smaller non-gaming project on the land. Genting pursues casino development in the Bahamas After the setback suffered by Genting in Miami, the company announced a new— but admittedly modest—casino development in the Bahamas worth US$24 million. The company has reportedly entered into a joint venture agreement with RAV Bahamas to open Resort World Bimini Bay, a luxury boutique casino on Bimini Island. The 10,000 square foot casino is set to be open in December at the Bimini Bay Resort and Marina, in north Bimini Island. The casino will feature table games, slots and sports betting in a venue similar to Genting’s casinos in London. Genting plans to refurbish a structure, which was built more than five years ago. The casino will be the only one on Bimini Island, which is 48 nautical miles off the South Florida coast. Genting’s JV partner developed Bimini Bay and the Rockewell Island Beach Estates. UOB Kay Hian Research analysts noted that although the project was likely to be a net positive for Genting, especially considering the modest investment outlay, “we opine the value accretion would be marginal given the small size of the casino to be built and also profits would have to be shared with JV partner, RAV Bahamas.” Analysts also speculate the development could be part of the company’s bigger plan to encourage the Miami government to vote in favour of legalizing casinos. HLIB Research said: “This news gave Genting Malaysia a little hope after disappointments from its casino expansion plans in New York and a destination resort in Miami.” “This also further confirms our view that Genting Malaysia will be continuously seeking for other opportunities internationally,” it added. Analysts pointed out that there is a risk demand for the venue will be muted, with Bimini Island being known more for fishing activities rather than for its nightlife attractions. IGT to repurchase up to $1 billion of its stock Analysts applauded a decision by slot manufacturing giant International Game Technology (IGT) to repurchase up to US$1 billion of the company’s outstanding stock over the next three-to- four years, saying the move reflects confidence in business trends and could boost the value of the company. IGT has almost 300 million shares of stock on the open market with a market capitalization of almost US$4 billion. “We believe an accelerated buy-backmakes sense at current levels, offering investors a compelling value,” Stifel Nicolaus Capital Markets gaming analyst Steven Wieczynski said in a research note. IGT’s board of directors authorized the program. In a statement, IGT said it would fund the accelerated stock buy-back using cash on hand and borrowings from the company’s revolving line of credit. Analysts said the stock repurchase program might soothe investors lingering skepticism and uncertainty over the company’s US$500 million acquisition of social gaming giant Double Down Casino in February. IGT said it has returned more than US$4 billion in cash to shareholders in share repurchases and dividends over the past 10 years. “These actions demonstrate the board of directors’ confidence and IGT’s continued dedication to responsible capital deployment,” the company said in a statement. Big earner—casino entrance at Resorts World NewYork Fishing expedition?—Bimini Bay Getting market-attuned