Inside Asian Gaming

July 2014 inside asian gaming 45 property, which has languished near the bottom of Atlantic City’s 11 casinos in gaming revenue. But it also kept the option of a second bankruptcy filing as potential buyers expressed interest but failed to pursue a deal. The casino is owned by investors who gained control of it during bankruptcy last year, swapping debt for equity in the property. The transaction wiped out 82% of Revel’s $1.5 billion in debt. But even with that breathing room, Revel continued to struggle against the backdrop of increasing competition from casinos in neighboring Pennsylvania, New York and Maryland. Atlantic City’s casino revenue fell from a high of $5.2 billion in 2006 to $2.86 billion last year. Revel has never been profitable since it opened in 2012. It posted a gross operating loss of $21.7 million in the first quarter of this year. For all of 2013, it lost $130 million, up from the $110 million it lost during the nine months it was open in 2012. Isaacs Named CEO of SciGames It’s official—Gavin Isaacs has the top job at Scientific Games. Mr Isaacs, former chief executive of SHFL entertainment, was named to succeed David Kennedy as president and CEO of the New York-based gaming and lottery giant (Nasdaq: SGMS). Mr Kennedy had taken over in November of last year when management was reshuffled in the aftermath of SciGames’ US$1.5 billion purchase of WMS Gaming, North America’s third-largest gaming machine manufacturer. He replaced long-time boss Lorne Weil. He will continue to serve as executive vice chairman, the company said. Mr Isaacs, one of the best-known and respected names in the industry, brings with him more than 15 years of experience. As CEO of SHFL he helped engineer the company’s $1.3 billion sale to Bally Technologies last year. He’d been Bally’s chief operating officer prior to joining SHFL, serving from May 2006 until March 2011. He also held senior roles at Aristocrat Leisure, including head of global marketing and business development and managing director of Aristocrat’s London-based European subsidiary. He also served as president of Las Vegas-based Aristocrat Technologies, the company’s North American subsidiary. “He has an impressive track record of success and is recognized for his dynamic leadership,” said SciGames Chairman Ronald Perelman. “Scientific Games has a skilled worldwide organization that is focused on improving performance and growth,” Mr Isaacs said. “I look forward to working together as we concentrate on creating and distributing innovative products and services to our customers, completing the integration of WMS and enhancing stockholder value.” The Sochi zone, approved in part to recoup massive losses from the 2014 Winter Olympics, most likely will be located in Gornaya Karusel, which is part of an underperforming resort area called Esto- Sadok Krasnaya Polyana. The Duma, at the urging of President Vladimir Putin, closed a flourishing casino industry based in Moscow and St. Petersburg in 2009 and exiled the industry to four outlying zones: Kaliningrad in European Russia, the southern Don-Rostov region near the Black Sea, Altai in Central Asia and a region around the country’s main Pacific coast city of Vladivostok in the Far East. None, however, has attracted the resort-scale investment the government sought, although separate plans are in the works by Macau casino mogul Lawrence Ho and Cambodia’s NagaCorp. to develop casinos around Vladivostok catering to the northern China market. For Sale, Cheap: One Failed Atlantic City Megaresort Atlantic City’s Revel Casino Hotel, the US$2.4 billion resort that was supposed to revive the seaside destination’s sagging fortunes, has warned its staff that it will shut down this summer if a buyer can’t be found in a bankruptcy auction. Layoffs could begin as soon as 18th August, management said, according to The Associated Press , which has seen the announcement. Shortly after distributing it, Revel filed a Chapter 11 petition in US Bankruptcy Court, its second trip into reorganization in as many years. A judge in Camden, NJ, was slated to hear initial motions on the petition last month, including requests to continue normal operations and pay employees and bills while under Chapter 11 protection. Revel President and COO Scott Kreeger said the casino has obtained a $125 million loan from one of its existing financiers so it can continue to operate. It could not be determined how much Revel might sell for, but it is sure to be a steep discount. Wall Street analysts and some casino executives said last month that $300 million was too high a price. A labor union that has been at odds with Revel since before it opened pegged its value in April at $25 million to $73 million, based on public filings. “A sale of Revel to a buyer who wants to keep the property open and retain the employees is the best thing for the workers, for Atlantic City and for Revel, and Local 54 is committed to working with all parties to save the jobs,” said Bob McDevitt, president of the local branch of Unite-HERE. For much of the past year, Revel has sought a buyer for the INTERNATIONAL BRIEFS Revel Casino Hotel Gavin Isaacs