Inside Asian Gaming

JUNE 2015 inside asian gaming 43 Phase 3 involves the construction of 3 hotels—the Hilton Manila and the Sheraton Manila Hotel, as well as the new wing of Maxims Hotel. It will also include an additional gaming area and retail space and six basement parking decks to be completed by the end of 2017. Travellers is also developing Bayshore City Resorts World at Manila’s Entertainment City casino resort district. Bayshore’s groundbreaking took place in October 2014. Meanwhile, Bloomberry Resorts Corporation, owner and operator through its subsidiaries of Solaire Resort & Casino at Entertainment City, reported a net loss of P533 million ($12 million) in the first quarter versus a P1.46 billion net profit in the same period last year. The Q1 loss was driven by higher expenses and came despite a 9% year-on-year increase in revenues (net of promotional allowances) to P6.3 billion. Gross gaming revenue and non-gaming revenue for the quarter stood at P8.1 billion and P323 million, respectively. Despite Bloomberry management’s cost-containment efforts, operating expenses rose 25% to P4.6 billion in the quarter following the opening of Sky Tower in November, which more than doubled the size of Solaire, added new restaurants and other non-gaming amenities as well as increased the property’s hotel room count by 64% to a total of 800 rooms. Bloomberry’s total expenses in the first quarter jumped 42% year on year to P6.2 billion. The increase came mostly from higher depreciation and interest expenses resulting from the completion of Sky Tower as well as provisioning for doubtful accounts. Leading Pros Attend Opening of New Poker King Club Room Poker King Club, which plays host to the famed Macau “big game,” unveiled its new poker room at the Venetian Macao on 22nd May, with over 100 distinguished guests in attendance including poker pros Phil Ivey, Tom “durrrr” Dwan and Johnny Chan. PKC had actually relocated to The Veneian Macao back in September from its long-time home inside StarWorld Macau. However, the club had to use a temporary space while it awaited the newly renovated poker room to open. “The Venetian Macau is no doubt one of the most prestigious integrated resorts in Macau. This move allows us to take advantage of its upscale entertainment, dining, shopping and hotel options, as we continue to deliver the best in player experience,” said Winfred Yu, President of Poker King Club, at the opening. “We are never satisfied with status quo and I am confident that Poker King Club will become every player’s venue of choice.” Beijing Implements Strict Smoking Ban China’s capital, Beijing, announced a very strict smoking ban including removal of smoking lounges from its airport in a move that “doesn’t bode well for Macau’s casinos,” says Union Gaming Research Macau’s Grant Govertsen. In a report on 1st June, Mr Govertsen wrote: “While smoking bans of various severity have existed in many cities throughout China since 2011, they have been ineffectual due to generally vague and loose rules, as well as limited enforcement. However, starting from today, 1 June 2015, Beijing has implemented a much stricter law which was passed last November that bans smoking in all public spaces like restaurants, offices and public transport throughout the capital city. Interestingly, and unfortunately for Macau’s casino operators, this new ban also applies to the smoking lounges at the capital’s airport and train stations. As of today, all 14 smoking lounges located at the Beijing Capital International Airport have been closed and were replaced by 17 designated outdoor smoking zones.” Mr Govertsen added: “We continue to believe that removing smoking lounges from casino floors [in Macau] is not the ideal solution and is likely to result in yet another leg down in GGR. However, while we would like to see a compromise reached that would allow for smoking lounges to remain within casinos, Beijing’s tough stance on smoking could provide the Macau government with enough political cover to carry out their plans for a full smoking ban. Previously the Macau government has made comments that the full smoking bill could be introduced early next year.” REGIONAL BRIEFS Genting Singapore’s Q1 Earnings Hit by VIP Weakness The first-quarter net profit of Genting Singapore, operator of Resorts World Sentosa, plunged 73% year on year to S$62.7 million (US$46.5 million), while revenues fell 23% to $639.2 million, due to continued weakness in its premium-player business, reports The Straits Times . “Our premium gaming business continues to come under stress due to regional environmental factors. We do not expect any respite in the medium term, and are restructuring our operational and marketing organization to adjust to this change,” the company said. “Additionally, in such circumstance, we have adopted a cautious approach in granting credit in this market segment and will be prudent in providing for our receivables. The year ahead will be challenging,” it added. Bad debt provisions for the first quarter swelled to nearly S$76.3 million from S$58.7 million a year ago. The casino at Resorts World Sentosa Poker King Club at The Venetian Macao