Macau Casino Stocks Up on US-China Trade Détente
Shares in U.S.-based Macau casino stocks spiked May 12 on news that the U.S. and China had paused their tariff war. Wynn Resorts, Las Vegas Sands and MGM Resorts — three of Macau’s Big 6 casino concessionaires — rose by roughly 8 percent, 7 percent and 5 percent. The S&P 500 was up just 3 percent, Investopedia reported.
The Asian units of the U.S. companies can take heart from comments by Macau Chief Executive Sam Hou Fai. At a May 13 press conference, Sam said the Chinese special administrative region will not retaliate against American operators for actions by the White House. “As long as they follow Macau’s laws and conduct their activities in an orderly and lawful manner, [the operators] are protected and supported” by the SAR, he said.
Sam acknowledged “profound changes reshaping the international geopolitical landscape” and “intensifying competition in the tourism and gaming sectors.” Those factors, along with Macau’s over-reliance on gaming for tax revenue, limits the city’s “capacity to withstand economic shocks,” as proven by the Covid-19 pandemic.
He reiterated the call for “appropriate economic diversification fostering the city’s sustainable socioeconomic development.”
Thailand Senate to Report on Casino Bill by July
In April, the Thailand Senate convened a panel to study the hotly debated Entertainment Complex Bill. The panel will form two subcommittees to consider different aspects of the legislation, which would bring legal casino resorts to five tourism locations throughout the country.
According to the Bangkok Post, one subcommittee will review the potential negative social costs of legal gambling on people and the environment and also consider a public referendum on the matter.
The second subcommittee will study the potential economic impacts of the project, which could generate THB308 trillion ($9.1 billion) in gross gaming revenue per year and make Thailand the world’s third-largest casino market after Macau and Las Vegas.
Originally the Senate pledged to submit its review within 180 days. Now the results are expected by the end of July.
Following Q1 Drop, Resorts World Sentosa Chairman to Retire
In a May 14 filing to the Singapore bourse, Resorts World Sentosa announced that CEO and Chairman Tan Hee Teck will retire on May 31. He is also departing his role as CEO of Genting Singapore.
“The board respects Mr. Tan’s decision and would like to express its appreciation for his invaluable contributions and guidance to the board and the company during his tenure,” the filing stated.
Tan Sri Lim Kok Thay, executive chairman of the Genting Group, will serve as acting CEO of the group.
Tan’s exit follows a disappointing quarter for RWS, reported the Straits Times. Revenue in Q1 dropped 20 percent year on year to $626.2 million. Net profit fell 41 percent to $145 million.
Genting Singapore pegged the results to “lower VIP rolling win rate and the temporary closure of Hard Rock Hotel for renovation and rebranding, which led to a reduction in available room inventory.” It also noted a decline in tourism during Chinese New Year.
“Amid heightened geopolitical trade tensions and macroeconomic headwinds, the group continues to adopt a prudent and adaptive approach,” Genting Singapore continued.
Last November, Singapore renewed RWS’ casino license for just two years instead of three due to “unsatisfactory” results following the pandemic.
Philippine Casinos Cut Ties with Junkets Implicated in Kidnap-Murder
Okada Manila and Solaire in Manila’s Entertainment City reportedly will no longer do business with VIP junket operator 9 Dynasty Group. Police have linked 9 Dynasty to the abduction and murder of Filipino-Chinese businessman Anson Que, head of Elison Steel.
Que and his driver were last seen alive in Valenzuela City on March 29. On April 8, their battered bodies were found in a rural area of Rizal.
According to the Manila Times, a source inside the Philippine Amusement and Gaming Corp. said 9 Dynasty and another junket, White Horse Club, laundered PHP200 million ($3.6 million) in ransom paid for the businessman’s release.
The money, paid in pesos and dollars, was later funneled through casino e-wallets and converted to cryptocurrency.
“The investigation extends beyond the kidnappers who directed the ransom payment process,” said the Philippines Anti-Money Laundering Council on May 12. “It also targets casino players within these junket operations who initially received the ransom funds via their e-wallets.”
Earlier this month, 9 Dynasty informed members it would withdraw completely from the market citing “strategic adjustments” in global operations. White Horse Club has also reportedly shut down its Philippine operations.
Macau Appoints New DICJ Head
Ng Wai Han, former director of the Macau Public Administration and Civil Service Bureau, has been appointed head of the city’s Gaming Inspection and Coordination Bureau, known by its Portuguese acronym DICJ.
The first woman to lead the regulatory body succeeds Adriano Marques Ho, who became customs director general under Chief Executive Sam Hou Fai last year.
Secretary for Economy and Finance Tai Kin Ip, who announced the appointment on May 7, said Ng’s “professional competence and aptitude” qualify her for the position. She will serve an initial one-year term.
