Inside Asian Gaming

August 2015 inside asian gaming 43 regulator, has approved a December 2016 commencement date for Mr Okada’s casino under a new implementation plan that will take effect once the project meets certain requirements, Pagcor Vice President Francis Hernando said. These include proof that funds are available to complete the casino resort, he said, adding Mr Okada’s group has submitted letters from potential funders and has so far spent about $800 million on the project. Mr Okada’s group has partnered with local businessman Antonio Cojuangco for the Manila casino, after selling its stake in a company that controls the project’s land site to a firm owned by Mr Cojuangco, Mr Sugiyama said. The Philippine casino regulator said earlier this month that the country’s gaming revenue could increase 20% this year to $3 billion even as China’s anti-corruption crackdown hurt gambling in other parts of Asia. A 16%gain in first half gaming revenue to $1.4 billion supports the outlook that the Philippines’ mix of foreign players is not dependent on China, the regulator’s chairman Cristino Naguiat said. Bloomberry Resorts Corp.’s $1.2 billion Solaire Manila opened March 2013, making it Entertainment City’s first casino project, followed by Melco Crown Entertainment’s City of Dreams Manila, formally opened this February. Travellers International Hotel Group Inc. is planning to open Bayshore City Resorts World in phases starting from 2019. MGM Resorts Profit Falls on Macau Business MGM Resorts International’s second-quarter earnings fell 11% as continued weakness in Macau was partly offset by growth in the Las Vegas market. MGM also said it has begun a revamp that aims to increase focus on streamlining operations and boosting profits. The company expects the multi-year program to begin to show results as soon as the second half of this year. MGM and other big casino companies relied more on robust revenue growth from their Macau operations to bolster results in recent years. However, Macau’s gaming industry has been sent reeling by Beijing’s corruption crackdown and a weakening mainland China economy. In the latest quarter, MGM China’s revenue fell by a third to $557 million, as VIP table games revenue slumped 43%. Main floor table games posted a 23% drop in revenue. Overall, MGM reported a profit of $97.5 million, or 17 cents a share, down from $110 million, or 22 cents a share, a year earlier. Revenue decreased 7.6% to $2.39 billion. At MGM’s wholly owned domestic resorts, which include properties on the Las Vegas Strip and others throughout the US, revenue grew 4% to $1.7 billion. Revenue per available room, a key measure of performance for the lodging industry, improved 6% at the company’s Las Vegas Strip resorts. Galaxy Invests in Monaco Casino Company Macau-based Galaxy Entertainment Group Ltd. is taking a minor stake in an operator of casinos and hotels in Monaco. Galaxy is buying 5% of the shares of Societe des Bains de Mer et du Cercle des Etrangers a Monaco (SBM) from an independent third party, according to a company statement. It didn’t name the seller or the sale price. “We see it as a potential to develop a strategic long-term partnership with them,” Galaxy spokesman Peter Caveny said. Separately, LVMH Moet Hennessy Louis Vuitton SE, the world’s largest luxury-goods maker, also said it would take a 5% stake in the Monte-Carlo based company. SBM, 69.5%-owned by the state of Monaco, has properties including the Casino de Monte-Carlo and the Casino Café de Paris, as well as luxury hotels, restaurants and night clubs, according to its website. REGIONAL BRIEFS MGM Macau Wynn Resorts Profit Hit by Macau Ops Macau’s slumping casino market contributed to a 72% decline in profits at Wynn Resorts Ltd. in the second quarter. Company Chairman Steve Wynn said the weakness in Macau’s VIP gaming business, which has caused Macau’s overall gaming revenue to decline in each of the past 14 months, is starting to hurt the company’s business in Las Vegas. “We’re the operator of choice for the international baccarat business,” Mr Wynn said on a conference call with analysts to discuss results for the quarter that ended 30th June. “When that group diminishes, we suffer the most.” Wynn said its two resorts in Macau brought in revenue of $617 million, a 35.8% decline compared to the same quarter a year ago. The figure accounted for almost 60% of the company’s $1.04 billion in total revenue during the quarter. The revenue declines cause Wynn’s overall net income to dip to $56.5 million, or 56 cents per share. A year ago, the company’s profits were $203.9 million, or $2 per share. Overall, Wynn’s total revenue fell 26.3%. On the development front, Wynn said the company is moving forward with its $4.1 billion Wynn Palace project on Macau’s Cotai Strip, which is expected to open on 25th March, 2016. Wynn Palace is expected to open on 25th March, 2016