Inside Asian Gaming

INSIDE ASIAN GAMING | October 2012 44 Briefs Regional Briefs Observers believe Crown’s plan is to build a large enough stake in Echo to buy a share of Sydney’s VIP gambling market. This would involve splitting Echo’s monopoly, currently vested in the company’s Star casino, to allow Crown to pursue development of a planned A$1 billion gambling resort at the Sydney Harbour complex of Barangaroo. However, NSW Premier Barry O’Farrell has talked down the possibility that Star’s license could be split. “I don’t believe the current legislative provisions allow that to occur,”he said. But he added that he would not rule out the possibility of a second license. “There were and are a number of regulatory hoops to be jumped before that comes anywhere near government,” he said. “No one has suggested to me that there be a change to the current exclusivity arrangement.” A Golden Week for Macau Macau gross gaming revenue during the National Day Golden Week, from 1st October to 7th October, reached MOP8.8 billion (US$1.1 billion), according to an industry note from brokerage firm Sterne Agee. “If we utilize the three-month (July, August and September) daily average of MOP811 million for the remaining days of October, the month would end at MOP28.6 billion, or up by 7% year on year, inclusive of slots,” analyst David Bain wrote. That would be a new monthly record for Macau’s casino industry. SJMHoldings led the GoldenWeek revenue parade with a market share of 26.3%, followed by Galaxy Entertainment Group with 21.9% and Sands China with 20%. Melco Crown Entertainment posted a 14.1% share, MGM China Holdings 8.9% andWynn Macau 8.8%. “As mass gross gaming revenue continues to outpace VIP, those property portfolios with the highest weighting tomass and exposure to Cotai should outperform,” said Mr Bain. Dirty Deeds Down Under The former acting chief executive of Christchurch Casino has told the High Court in Auckland, New Zealand, that he took part in a deliberate campaign to discredit the casino in order to cheapen it ahead of a purported takeover. Stephen Lyttleton is a key witness in a multimillion- dollar fraud trial in which he is also one of the alleged victims. The defendant is Liozos Michaels, identified in press reports as an Auckland businessman. The casino is suing Mr Michaels for A$3 million in gambling losses. Mr Lyttleton testified that he began spreading derogatory Genting Back in Chase for Echo Malaysian resort giant Genting has raised its stake in Australia’s Echo Entertainment back above 5%, leaving the market guessing about what’s next for the coveted operator of Sydney’s monopoly casino. Genting’s Hong Kong division, which has applied to New South Wales regulators to raise its stake in Echo to as much as 25%, acquired an initial 4.2% share of the company in June, then started acquiring shares again two weeks ago, according to a recent filing with the Australian Stock Exchange. The latest acquisition was 1.9 million shares picked up at an average price of A$3.85. The application lifts the target above the 20% threshold at which companies must generally make a takeover offer under Australian corporate law. Members of Genting’s controlling family are also moving to tap Australian investors for capital to fund gaming expansion in Southeast Asia. Lim Keong Yew and Benjamin Lim Keong Hoe, nephews of Genting Chief Executive Lim Kok Thay, said their company, Donaco Singapore, has signed an agreement to buy ASX-listed online gaming company TwoWay Ltd. Subject to shareholder approval, the deal will be completed next month. Mr Lim said Donaco International, the purported name for the new entity, is planning to raise capital to fund an expansion of the company’s prime asset, a boutique casino at the Lao Cai International Hotel in northern Vietnam targeting Chinese gamblers, and bankroll further buys in Thailand and China. Meanwhile, James Packer’s Crown Limited is also seeking permission to lift its 10% stake in Echo to 25%, fueling speculation about whether Genting is a rival bidder or is looking to leverage its position to extract a deal from Crown, which has significant investments in China’s booming casino enclave of Macau, where Genting lacks a presence. Echo’s defense against these potential suitors has been undermined by an exodus of directors and senior managers, including the resignations of Chairman John Story, Chief Executive Larry Mullin and non-executive director Brett Paton. Takeover target—Echo’s The Star casino in Sydney Christchurch Casino