Inside Asian Gaming

INSIDE ASIAN GAMING APRIL 2018 8 GALAXY ENTERTAINMENT GROUP (GEG) has emerged as a shock investor in Wynn Resorts, with the Macau casino operator announcing that it has agreed to purchase 5.3 million primary Wynn Resorts shares. The acquisition, coming at a cost of US$927.5 million, represents 4.9% of Wynn Resorts’ issued shares. “This is a unique opportunity to acquire an investment in a globally recognized entertainment corporation with exceptionally high quality assets and a significant development pipeline,” said Galaxy Entertainment Group Vice Chairman Francis Lui. “We have always considered Wynn a good competitor who knows how to do things right. We’re glad that Galaxy was given the opportunity to become an investor in this great company.” The acquisition coincided with the news that former Wynn Resorts Chairman and CEO Steve Wynn had agreed to sell GALAXY BUYS 4.9% OF WYNN RESORTS AS STEVE WYNN SELLS ENTIRE STAKE Japan government partner calls for ¥8,000 (US$75) casino entry fee his remaining stake in the company he founded. Just hours after reducing his interest from 12.1% to 7.8%, Wynn Resorts announced that two of its current long- term institutional investors would purchase the remaining 8 million shares held, ending Wynn’s official association with the company bearing his name. The major development followed the settlement two weeks earlier of long-standing litigation between Wynn The coalition partner of Japan’s ruling Liberal Democratic Party (LDP) has called for a minimum ¥8,000 (US$75) entry fee for Japanese residents to enter the nation’s casinos, a four-fold increase on the fee previously proposed by the LDP. The stipulation forms part of an interim report being prepared by Komeito outlining its policy recommendations for the impending IR Implementation Bill to be submitted to the Diet in the coming months. The LDP had recently proposed a Resorts and Japan’s Universal Entertainment Corporation, which was founded by former Wynn Resorts board member Kazuo Okada. “Resolution of that litigation, combined with the new agreement with Galaxy Entertainment Group and the liquidation of Steve Wynn’s shares in the company, positions Wynn Resorts for even greater stability, strategic focus and future growth,” said Wynn Resorts in a statement. ¥2,000 fee – equivalent to around US$19 – for all Japanese residents to enter the nation’s casinos. “It’s extremely important to gain understanding from a wide range of Japanese people by introducing casino restrictions in the world’s best standards,” Komeito’s report explains. Komeito’s recommended ¥8,000 entry fee is almost identical to the SG$100 (US$76) fee charged in Singapore and supports previous predictions that Japanese lawmakers would base their own IR regulations on Singapore’s model. The draft interim report supports the government’s proposal to limit the total area covered by any single integrated resort to 15,000 square meters – also identical to Singapore – and the casino space to 3% of total floor space. Reiterated in the interim report is Komeito’s preference for the number of casino licenses issued to be limited to “two or three”, while the party backs measures to limit residents to a maximum three visits a week and 10 visits a month.