Macau GGR Could Miss July Numbers
Macau’s gaming industry is likely to fall short of revenue estimates for July, per some analysts.
The JPMorgan team expects city casinos to generate MOP18.5 billion (US$2.3 billion) in gross gaming revenue (GGR) this month, just shy of the MOP19 billion forecast. June, too, failed to meet projections—though GGR was up 16.4 percent year on year, it fell short of the median analyst estimate of 17.5 percent. It also remained 25.7 percent under pre-Covid levels.
The summer slump is expected. Mainland residents crowd the city during the spring Golden Week holiday in May. That surge is typically followed by what Citigroup analysts call a “seasonal trough.”
GGR also may be hindered by the local government’s new crackdown on illegal money exchanges. The campaign, launched in June, was designed to curb capital flight and loan sharking, and keep Chinese tourists from exceeding the amount of mainland currency that can be carried over the border per trip.
Mayor Linked to POGO May Have Fled Philippines
Alice Guo, the suspended mayor of Bamban, Philippines, is wanted for questioning after being linked to crimes in the country’s offshore gaming industry. Last week, when Guo failed to appear for two separate court hearings, a warrant was issued for her arrest. Now, officials say she may have fled the country.
After the March raid of a POGO compound in Bamban, authorities freed hundreds of workers who may have been victims of human trafficking. They also discovered that the POGO was located on land partly owned by Guo. A subsequent probe showed that billions of pesos have flowed into 36 bank accounts held by Guo, and allegedly were used to underwrite the POGO.
Guo was temporarily relieved of her duties after the raid, and her accounts have since been frozen.Since then, investigators have discovered that Guo is a Chinese passport holder who also goes by the name Guo Hua Ping. The revelation sparked questions about her citizenship status and concerns that she is a Chinese “asset.”
SkyCity Auckland to Close for 5 Days Later this Year
New Zealand-based operator SkyCity Entertainment announced July 18 that it has reached a settlement agreement with the country’s Secretary of Internal Affairs through which it will close the gaming area of its flagship Auckland casino for five consecutive days at some point later this year.
The exact dates of the closure have not been announced yet but the schedule will run from a Monday to a Friday. The settlement was in relation to a breach of regulations surrounding continuous play. A former player levied the complaint against the operator.
Indian Tourism Chief Nixes Casinos
The Indian state of Karnataka says casinos aren’t part of its plan to grow domestic tourism.
“The state government is keen on coastal and cruise tourism, but not casinos,” said Tourism Minister HK Patil at a July 4 workshop on tourism policy.“Casinos (are) not in our culture,” Patil said. “It is not socially good. There is no proposal before the government and my department will not support it.”
He pointed to the example of Goa, home of 16 land-based and floating casinos. While the industry filled the economic void left by a shuttered mining industry, critics say it has turned the coastal haven into a den of vice, including drugs and prostitution.
Patil wants to emphasize arts and culture, heritage and history, and Karnataka’s natural splendors to attract more visitors. “Religious, educational, agricultural and adventure tourism must be prioritized,” he said. “Infrastructure development at world heritage sites is a priority and we urge public support in this endeavor.”
Another IR Planned for the Philippines?
SM Investments Corp., a Philippine conglomerate involved in real estate development, retail and tourism, is reportedly planning to build a $300 million integrated resort (IR) with gaming in Clark, just north of Manila.
Sources told Reuters that Premium Leisure Corp. (PLC), a subsidiary of SM’s Belle Corp., has applied for a license to build and operate the IR, which would include a hotel and convention center among other amenities.
PLC voluntarily delisted from the Philippine Stock Exchange earlier this month. According to Asia Gaming Brief, the unit holds an interest in the City of Dreams Manila, a Melco Resorts & Entertainment property; and owns a 50.1 percent stake in Pacific Online Systems Corp., which offers online betting software and other equipment to the Philippine Charity Sweepstakes Office, powering lottery operations in Visayas and Mindanao.
Clark, Pampanga Province, the site of a former U.S. Air Force base, is now a special economic zone that calls itself “the entertainment and gaming center of Asia.” It is home to a number of casino resorts including the Midori, the Hann, the D’Heights and the Widus.
Tech Issues Cause Machine Outages for Star
Australian operator Star Entertainment was working through some technical issues this week that caused a temporary outage for all of the gaming machines and electronic table games at the company’s three casinos.
First announced on July 15, the company said the outage came as a result of disruptions related to “planned upgrades to The Star’s systems in readiness for the introduction of cashless gaming.”The machines were switched off starting at 10:00 p.m. July 13. By July 17, Star said it had worked with supplier Konami to rectify the issue and get all machines back online.
The introduction of cashless gaming has been a big priority for regulators across the country to help address concerns related to problem gambling and anti-money laundering, both of which have come up repeatedly in suitability inquiries in recent years.
Crown Offloads Nobu Stake
On July 11, the Australian Financial Review reported that Crown Resorts has offloaded its 20 percent stake in the restaurant chain Nobu for $180 million. The company had acquired the stake in 2015 under former owner James Packer for $100 million.
The deal could be seen as an attempt by Crown’s current owners, Blackstone Group, to make back a percentage of the $6.3 billion it paid to acquire the operator.That said, the buyer was not named but was reported by AFR to be within Blackstone’s private equity fund portfolio.
