Inside Asian Gaming

INSIDE ASIAN GAMING | October 2012 46 International Briefs Briefs three union funds and one individual, allege the board members had subjected the company to potential violations of the US Foreign Corrupt Practices Act in connection with a US$135 million donation the company made to the University of Macau. The plaintiffs, like Mr Okada, suggest the donation was improper since Wynn operates a casino in the Chinese gambling enclave. Some of the shareholders also are challenging the company’s forced redemption of Mr Okada’s $2.9 billion in stock earlier this year after the company claimed he breached his duty as a director by providing improper benefits to Filipino gaming regulators. The shareholders charge the redemption was aimed at solidifying CEO Steve Wynn’s control of the company—charges Wynn’s attorneys deny. The attorneys also argue that the shareholders had failed to make a case that the University of Macau donation has resulted in any actual liability for the company. US District Judge James Mahan’s initial 9th October order closing the cases suggested the plaintiffs’ shareholders had missed a deadline to respond to a dismissal motion filed by attorneys for the Wynn board members, according to the Las Vegas Sun . Court records, however, showed the plaintiffs had until 15th October to respond to the dismissal motion, the Sun said. The judge then filed an order on 10th October reopening the cases, which have been combined into one suit. Two more shareholder suits against Wynn Resorts remain active in Clark County District Court in Las Vegas. Casino Likely for Canada’s Capital Ottawa’s city councillors have voted to take Canada’s capital closer to hosting a casino. The margin was wide, 19-5, with most councillors saying they believe there is no need to wait for a pending report examining the potential social impacts of bringing full-scale gambling to the city. Councillor Mark Taylor said he doesn’t believe a new casino would lead to more problem gambling. “I think it’s a bit of a reach to say that this is going to push us over the cliff. I think we have to be responsible about it, but I don’t think it’s the be-all and end-all.” If, as expected, councillors give their final approval, the Ontario Lottery Gaming Corporation will entertain expressions of interest from private-sector developers before presenting its choice, likely sometime in 2013, of both a developer and a specific location for the facility. A recent report from the Canadian Council of Policy Studies said a yes vote would mean Ottawa will definitely get a casino. The Naked Truth: Vegas Loves Harry It wasn’t so good for Britain’s Prince Harry, but the scandal that followed the leak this summer of photos showing Queen Elizabeth’s youngest grandson partying in the royal buff was a public relations windfall for Las Vegas. Another Slide for Nevada Revenues Nevada’s August gaming revenues proved a disappointment for analysts hoping for a repeat of July’s haul of US$1 billion. The take was down 3.1% year on year to $859.2 million. On the Las Vegas Strip, revenues dropped 1.2% to $490.9 million and were down $109 million from July. “These results point to a continued uneven recovery which represents no change from prior and more recent views,” JP Morgan analyst Joe Greff said in a note to investors. The one bright spot was baccarat, which jumped 32% to $124 million on a 30% increase in drop to $1 billion. Year to date, baccarat revenue is up 16.9% on a 14% increase in volume. Other table games saw revenues decline 8.5%. Revenue from slot machines on the Strip was down 9.1%, the fifth consecutive month of declines. Most analysts said the baccarat numbers would reflect positively when companies such as MGM Resorts International and Wynn Resorts report quarterly earnings. “Strong baccarat play quarter to date will help support third- quarter estimates but do not reflect broader fundamentals on the Strip and highlight the volatility of this segment,” Susquehanna International Group gaming analyst Rachael Rothman told investors. Stifel Nicolaus Capital Markets gaming analyst StevenWieczynski was more optimistic. “Soft summer results aside, we continue to believe Las Vegas is on the path to a gradual recovery, consistent with continued improvements in overall visitation levels and encouraging forward-looking group booking commentary.” Through August, gaming revenues statewide are up 1.7% year on year. Strip gaming revenues are up 2.6%. Lawsuits Reinstated Against Wynn Board Four shareholder lawsuits against Wynn Resorts board members have been reinstated in US District Court in Las Vegas after they were apparently dismissed by mistake. The suits were filed in response to the falling-out earlier this year between the casino operator and Japanese billionaire Kazuo Okada, formerly the company’s largest shareholder. The plaintiffs, Ontario Lottery Gaming Corporation Chairman Paul Godfrey