Inside Asian Gaming

December 2014 inside asian gaming 45 Packer, De Niro Eye Caribbean Resort The government of Antigua and Barbuda says casino tycoon James Packer and his new fast friend Robert De Niro have submitted a formal expression of interest in developing a US$250 million resort, possibly with a casino, in the Caribbean island nation. The announcement comes from Antiguan Prime Minister Gaston Browne, according to an Associated Press report, which cites Mr Browne as saying the two have signed a memorandum of agreement to expand a dormant Barbuda venue known as the K-Club into a five-star getaway under the Paradise Found brand. Mr Browne said he hopes to conclude the deal within 30 days and for construction to begin within the next 12 months. Mr De Niro is reputed to be a regular guest at Antigua’s Jumby Bay resort and recently was named by the government as a “special economic envoy” to the islands. Mr Browne said his “celebrity status will attract more American celebrities to Antigua and Barbuda and the Caribbean”. The prime minister did not say if a casino would be part of the new venture, but the government has been avidly pursuing gaming expansion to entice foreign investment in the islands’ tourism- driven economy. In June, the government concluded a US$740 million deal with China’s Yida International Investment Antigua to build an integrated resort with a casino on Antigua’s Guiana Island and the Crump Peninsula. Mr De Niro is better known in Asia as the former face of Paradise Group’s flagship Paradise Walker Hill Casino in Seoul (unrelated to the Paradise Found brand), and he and Mr Packer, who heads Crown Resorts, Australia’s largest casino operator, have extensive business ties via Crown’s co-ownership of Macau-based Melco Crown Entertainment. In January, Mr De Niro’s Nobu restaurant and hotel chain signed on to build its first hotel in Asia as part of Melco Crown’s City of Dreams Manila resort casino slated to open in the Philippines capital this month. The actor also is starring in a short film promoting Melco Crown’s upcoming Studio City resort casino in Macau. The film is being produced by Mr Packer’s Ratpac Entertainment, which produced a 2013 film titled “Grudge Match” that starred Mr De Niro. The Studio City short is being directed by Martin Scorsese, a close collaborator with Mr De Niro over the years, and also will feature Brad Pitt and Leonardo DiCaprio. Mr De Niro and Mr Packer are also involved in a premium vodka brand, VDKA 6100, that launched last year, according to a report on calvinayre.com. executive well-known to Mr Isaacs, will head up slots and systems as chief executive, Gaming. Stephen Beason, a veteran of the lottery side, will serve as Enterprise Chief Technology Officer, the role he has filled at SciGames for the last eight years. James Kennedy, SciGames’ current head of lottery, will retain that role in the enlarged company. Williams Interactive Managing Director Jordan Levin will bring together the growing social and real-money online operations of SciGames, Bally and SHFL as president, Interactive. And crafting an identity for the conglomerate will be the job of Dan Savage, who served as vice president, Corporate Marketing for Bally from 2008 to 2013 before joining SciGames, where he was appointed to the same role in September. US Proves Key for Aristocrat in 2014 INTERNATIONAL BRIEFS Jamie Odell Slots and systems giant Aristocrat Leisure posted a 6.9% increase in revenues to A$870.3 million for the year ended 30th September on strong sales in North America and its home market of Australia. Normalized net profit, excluding a significant write-down of its Japanese pachislot business, was up 10.2% year on year to A$118.1 million—20.7 cents per diluted share—on an 11.5% increase in EBITDA to $209.8 million. ASX-listed Aristocrat (ALL) wrote off $78 million of the underperforming Japan operation and also recorded a $43 million loss from the sale of its non-core Lotteries business, moves which Chief Executive Jamie Odell said “reduce risk and management distraction going forward”. The company also recorded costs of $13.1 million related to its US$1.3 billion acquisition earlier this year of Video Gaming Technologies, a leading manufacturer of machine games for the North American tribal markets. The combined charges resulted in a statutory net loss of A$16.4 million. “Over the course of the year, the business continued to methodically close portfolio gaps while also lifting front-end effectiveness and sales execution,” Mr Odell said. “Aristocrat’s product-led, share-taking strategy delivered outstanding operational performance across core markets and segments in 2014—particularly in the critical US gaming operations segment, which remains our single most compelling strategic opportunity.” The company grew its North America installed base by 20% and average fee per day by 10.5%, and Mr Odell characterized the VGT purchase as a “bold step” that will contribute to making 2015 a “transformative year”. Robert De Niro