Inside Asian Gaming

MAY 2015 inside asian gaming 91 site of Incheon International Airport, the main gateway for foreign arrivals, located about 30 kilometers from Seoul. Paradise City is expected to open in 2017 at an initial cost of US$750 million. Meanwhile, Paradise also plans to expand the floor space at three of its existing casinos. Paradise has a 50% share of Korea’s foreigner-only casino market, while Grand Korea Leisure, a state-run casino operator, ranks second with 42%. In 2014, Paradise reported an 8.7% increase in revenue, though profit was down 4.2% Aquis proponents say it would directly create 10,000 new jobs. In its first stage, it would build 4,000 luxury hotel rooms on a platform over a series of lagoons with a theatre, aquarium, restaurants and casino targeted at a “family-friendly” premium and VIP Chinese tourist market. REGIONAL BRIEFS Aquis Great Barrier Reef Resort Wins Federal Approval Hong Kong billionaire Tony Fung has moved a step closer to building his ambitious A$8.15 billion (US$6.4 billion) Aquis Great Barrier Reef Resort north of Cairns, Australia, after winning environmental approval from the federal government in early May. But Mr Fung must still win state government agreement to develop the casino component of the proposed development with Aquis project director, Pat Flanagan, saying that could take at least two more months. “We are working with the government to agree the process to finalize the casino agreement,” Mr Flanagan said. “The completion of the environmental approvals and planning assessment means that the only outstanding item to be completed is the casino agreement with the State Government, which we hope to achieve in a timely manner.” If Aquis wins approval to have gaming the project would be able to proceed to the next stage of development. The Queensland government recently abandoned plans for a casino on the Gold Coast and is yet to announce who will win the Queen’s Wharf project in Brisbane which will have a gaming element—with the contest down to James Packer’s Crown group bidding against Echo Entertainment. Meanwhile, Mr Flanagan said the federal government environmental approval demonstrated the proposed project respected the world heritage-listed Great Barrier Reef and wet tropics rainforests. He said the federal government approval, combined with the Coordinator-General’s Assessment Report, completes the environmental assessment of the proposal. Aquis claims the Yorkey’s Knob resort will generate up to A$988 million in gross regional product during the construction of stage one and $10.2 billion at full operation. Artist’s impression of the proposed Aquis Great Barrier Reef Resort Rendering of Phase 2 of Galaxy Entertainment Group’s flagship Galaxy Macau resort , scheduled for a 27th May unveiling Galaxy Q1 EBITDA Drops 40% Galaxy Entertainment Group said its first-quarter earnings before interest, taxes, depreciation and amortization fell 40% year on year as Macau’s steep gaming revenue slide continued. The company’s total gaming revenue dropped 34% to HK$13.3 billion (US$1.7 billion) in the quarter. The company attributed the decline to the 16% fall in total mass table revenue to HK$4.3 billion while total VIP revenue plunged 41% to HK$8.7 billion. “The challenges of 2014 have continued into 2015 and their impact has been felt across the market including at Galaxy Entertainment. The group continues to manage its properties effectively, in light of these conditions, and drive profitability,” the company said in a stock exchange filing. Total debt increased to HK$2 billion as of 31st March due to a treasury management exercise where interest income on cash holdings exceeds corresponding borrowing cost. “Our business remains healthy and we continually review our operations to ensure that both short and longer term opportunities are maximized,” the company said. LVS Profit Drops on Macau Slowdown Las Vegas Sands Corp said its first-quarter earnings fell 34% year on year on continued pressures from a slowdown in Macau. Beijing’s ongoing corruption crackdown and a weakening economy on the mainland have cut into the gaming industry in Macau, reports The Wall Street Journal . Local casino operators including LVS have been re-evaluating costs amid the pressures on their revenue and margins. LVS, which has four casinos in Macau, said its Sands China subsidiary reported gaming revenue slumped 35% to US$1.77 billion in the first quarter. Segment net income dropped 54% to $344.7 million. Overall, LVS reported a profit of $511.9 million, down from $776.2 million in the year-ago quarter. Total revenue dropped 25% to $3.01 billion.