Author: Admin VietNamGaming

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Crown ripe for LVS purchase: Bernstein

Posted on by Admin VietNamGaming

01-10-2020 |  

The sale of Las Vegas Sands’ Vegas properties for $6.25 billion could be an opportunity for Sands to put their boots down in Australia through a purchase of Crown Resorts, according to Bernstein analyst Vitaly Umansky.

“Crown Resorts could be a good fit for Sands in the long run. The company is currently in turmoil following regulatory challenges following revelations of AML violations and control problems. Several directors (including the CEO) have resigned and the company is ripe for new ownership and management.”

That being said, Sands’ Macau and Singapore operations, and its relationship with junket operators in Macau could create issues, said Umansky.

“It is unclear at this time whether an acquisition of Crown could make sense,” he noted.

Earlier this year, it was rumored that Las Vegas Sands could be interested in buying out majority shareholder James Packer after it was reported that Packer’s $200 million yacht spent the last days of 2020 alongside a superyacht owned by Sheldon Adelson.

However, Packer later denied the two had any contact over the open water.

Outside of Australia, Bernstein said that part of the proceeds could be used to fund construction of its $3.3 billion Singapore expansion plan.

It could also go into US igaming and sports betting markets, though the company would have a hard time going in alone, and existing igaming operators may be valued too high at the moment. Other US opportunities exist in Texas and New York City, though neither regions seem to be moving forward with any speed, said the analyst.

Bernstein said it could be used for LVS parent debt paydown, or returning capital to shareholders via a resumption of its dividend.

Source: AGBrief

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Esports regulators need to play the game

Posted on by Admin VietNamGaming

01-10-2020 |  

The 2020 pandemic may have brought esports out of the shadows and into our living rooms, but lack of regulation in the esports betting space will hold back the industry’s true potential.

The fault, according to esports experts, lies on regulators, who have been notoriously slow to adapt to changes in their industries.

“The biggest challenge for anybody getting involved in regulating esports is that the industry is constantly changing and evolving,” said Brett Abarbanel, Director of Research at the University of Nevada, speaking at Esports Connect Asia in January.

Unlike traditional sports, things change quickly in the world of esports, meaning that regulators who do not constantly keep up to speed are constantly operating in a knowledge deficit, said Roger Quiles, an esports-dedicated attorney based in the U.S.

“Back in 2015, the esports industry turnover was around three months. So that means every three months, there would be a seismic shift in the esports space that would fundamentally alter how people in the industry would structure their businesses and contracts,” he added.

“If you look at esports organizations that have been around for the last 20 years, even themselves trying to define what esports is, is such a challenge,” added Abarbanel. “The esports industry itself doesn’t make it easy for a newcomer to get involved because it has difficulty even defining itself.”

“I think there is a huge amount of understanding that isn’t present in esports. Because there hasn’t been that kind of exposure to esports as a general trading product.”

One regulator, however, has been particularly nimble in setting up regulations for esports, including the setting up of regulations relating to skin betting, and cryptocurrency several years ago.

“Very early on we ran workshops and got groups together whether that be data centers or CSPs, law firms, to bring them around a table and discuss pain points and what’s to come,” explains Chris Kissack, Head of Esports at Digital Isle of Man.

Ultimately, regulators need to try and immerse themselves as much as possible.

“The esports industry is so fast-moving, and trying to put a pin in something like that can be quite daunting. Ultimately, don’t be afraid to play some games. Whether you’re a consultant or regulator or betting operator trying to bring on new products.”

“Play the games. You don’t need to become a master at anything. As with anything, you need to dive in. Don’t be afraid to catch geek,” said Kissack.

Source: AGBrief

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LVS to sell properties for US$6.25 billion, reiterates Asia focus

Posted on by Admin VietNamGaming

01-10-2020 |  

It’s the end of an era for Las Vegas Sands. The group agreed to sell its iconic properties in Las Vegas for US$6.25 billion and said the main focus of the group is now in Asia.

Under the terms of the sale, fund management group Apollo Global Management will buy the operating assets and liabilities of the company for US$1.05 billion in cash and US$1.2 billion in seller financing in the form of a term loan credit and security agreement.

VICI Properties will buy the subsidiaries that hold the real estate assets for US$4 billion in cash. The transactions are subject to the customary closing conditions.

The sale gives the company a significant war chest to pursue other areas of expansion. The group is committed to reinvesting in Macau and Singapore, but is also now willing to embrace opportunities in online gaming, an area in which it has lagged its peers.

“This company is focused on growth, and we see meaningful opportunities on a variety of fronts,” LVS Chairman and CEO Robert Goldstein said. “Asia remains the backbone of this company and our developments in Macau and Singapore are the center of our attention. We will always look for ways to reinvest in our properties and those communities.”

“There are also potential development opportunities domestically, where we believe significant capital investment will provide a substantial benefit to those jurisdictions while also producing very strong returns for the company.”

President and Chief Operating Officer Patrick Dumont reiterated that the company has a long-held strategy of investing in Asia and the sale would enhance this. He also said the company will explore opportunities in “the digital marketplace.”

Las Vegas Sands first announced in October last year that it was mulling the sale of its Vegas assets.

Source: AGBrief

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Yumul denied license to become IPI CEO

Posted on by Admin VietNamGaming

01-10-2020 |  

The CNMI’s Commonwealth Casino Commission has rejected former CNMI Senator Ray N. Yumul’s application to be temporarily licensed as the CEO of Imperial Pacific International, citing the fact that the fees for the ninety-day license have yet to be paid.

This rejection comes despite CEC Executive Director Andrew Yeom’s recommendation that the license should be granted.

Yeom himself seemed unperturbed by the rejection, telling the Saipan Tribune, “That may work out well in terms of timing in that it allows us just enough time to vet for this regular license while Mr. Yumul has the legal status to carry on his duty until such time an official decision on his regular CKE licensure is rendered by the commission,”

Meanwhile, IPI related legal actions continue to make their way through the courts.

In one case, the federal court has ordered IPI to show cause in writing why the court should not impose a US$2,000 per day sanction on the firm until it complies with a court order related to the discovery process in a discrimination lawsuit.

In this case, a man named Joshua Gray has sued IPI over allegations of discrimination based on race and retaliation for his complaints about the firm’s employment practices. His attorneys recently notified the court of IPI’s failure to comply with its discovery order.

Rounding out the IPI news from just the last 24 hours, Chief Judge Ramona Manglona of the District Court for the NMI has disclosed that she has a potential conflict of interest with Joyce Tang, who may become IPI’s receiver in one legal case. Manglona is related to Dean Manglona, an associate attorney with Tang’s law firm.

Source: AGBrief

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Kerala bans online rummy

Posted on by Admin VietNamGaming

01-10-2020 |  

The Indian state government of Kerala has joined Telangana, Andhra Pradesh, and Tamil Nadu in specifically banning online rummy or other games played for stakes.

The moves against online gambling appear to be particularly strong in southern India, where some suicides and other social ills are being blamed on the proliferation of these games.

The state government’s action was taken after being prodded by the Kerala High Court on February 10, 2021, to make a decision on whether or not online rummy falls under the terms of the Kerala Gaming Act of 1960, and is thus excluded from the general ban on gambling.

At this point, the state’s online rummy ban is being decided through an executive decision, but it is not formally written into law.

Indian gaming laws have become increasingly opaque in recent months and years. As a general rule, while betting on games of chance are judged to be illegal, betting on games of skill are supposed to be permitted. In the past rummy has been found to be a game of skill.

It would appear, therefore, that today in Kerala it is legal to play rummy for stakes at physical clubs around the state, but it is now judged to be illegal to play the same game online, where it is presumably seen as a game of chance.

Online gaming industry advocates may challenge some of the recent state government policies in the courts, and many have been appealing for the national government to clarify regulations.

Source: AGBrief

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Converged experiences: U.S. operators blend land-based with digital

Posted on by Admin VietNamGaming

01-10-2020 |  

In a report last year, ratings agency Moody’s predicted a surge in merger and acquisitions between online and land-based gaming operators as the latter seek to cement new revenue streams after the chaos wreaked by Covid-19.

They predicted that once the pandemic eases companies will seek economies of scale and those with stronger balance sheets will look to take advantage of more attractive valuations.

The first attempt at a mega merger this year ended in failure when the U.K.’s Entain rebuffed a more than $11 billion advance from MGM Resorts, its partner in BetMGM.

However, MGM has not lost its appetite and CEO Bill Hornbuckle is still looking at a major acquisition to become a global player in the digital space. Many other operators in the U.S. are ramping up partnerships to offer sports betting and other services in the states where it’s permitted.

Even Las Vegas Sands, whose former Chairman Sheldon Adelson opposed online gambling, may now be looking at possibilities, according to recent media reports.

The appeal is understandable. While land-based operators, especially those relying on tourism, have seen their revenues plunge, online operators have reported record sales. Take Entain for example, which reported a 41 percent jump in net gaming growth in Q4, its 20th consecutive quarter of double digit online growth.

“Marrying bricks and mortar with a digital experience, we’ve seen it in all other kinds of industries and we absolutely see it in the experiential business that we operate and we’re really excited because when you marry them together the multiplier effect can be as much as 10 times,” Hornbuckle said in a Bloomberg Television interview.

While the omni channel approach clearly has potential, IR entertainment development and marketing veteran John Raczka suggests there are elements IRs should bear in mind to get the most out of the opportunity.

Raczka told AGB about how he sees physical casino operators’ venturing into online sports betting contributing to IR entertainment ecosystems on-premises.

“How sports betting is programmed and consumed will influence just how much sports betting can help convert less gaming-minded millennials into becoming more active gaming participants,” he said.

“Through digital platforms, sports betting already mimics the digital distribution of the filmed entertainment model, making sports betting available whenever and wherever you want it via your PC or mobile device. And because millennials can be most efficiently reached on digital platforms, the “consumer push” dynamics of these channels can effectively support clever deployments of innovative sports betting environments available only at brick & mortar casinos that can best amortize the buildout costs.”

Raczka points to examples such as how Las Vegas’ newest casino, Circa Resort & Casino, is cross leveraging its 3-story, largest sportsbook in the world with Stadium Swim, the property’s innovative pool deck with six swimming pools across three tiered levels and a 40 foot tall HD screen airing sports programming.

“This fusion of pool party environment with bigger than life sports program viewing is the kind of social real estate vehicle that has great potential to drive trial sports betting activity.”

Caesars Entertainment is also addressing millennials’ fondness of immersive, themed environments with their physical sports betting investments. Caesars Palace recently announced it is launching Stadia Bar this Spring, which reportedly will offer enhanced sports program viewing environments one can rent for small groups, including VIP leather-wrapped domes that will evoke the feel of sitting within a vintage leather football helmet.

“This vertically themed destination is a good example of experiential retail being applied to sports betting activities that can be promoted online to share with friends offline.”

While the U.S. is abuzz with the possibilities of omni channel experiences, Asian operators continue to be hamstrung by lack of regulation in the field. When the U.S. legalized sports betting in 2018, some said it may create a regulatory domino effect, but there has been little progress and in some cases just steps backwards.

The Philippines is leading the way forward, with small steps to allow its operators to be able to accept bets from VIP players online. The so-called PIGO licenses have generated a ripple of interest, though the experiment is very much in its infancy.

Cambodia banned online gambling following pressure from China and is showing no signs it might be willing to reconsider, driving its industry back under ground.

Perhaps one other notable exception in the Asia Pacific region has been SkyCity Entertainment. Although New Zealand does not allow online gambling companies in its territory, it does not stop its citizens gambling on overseas sites.

As a result, in 2019 the company launched an online gambling site based out of Malta in partnership with Gaming Innovation Group. Despite the restrictive environment at home, SkyCity recently reported the unit had 30,000 active users and an EBITDA margin of 40 percent, well above its expectations.

Source: AGBrief

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Macau, Cambodia to lead gaming recovery: Colliers

Posted on by Admin VietNamGaming

01-10-2020 |  

Macau GGR recovery will be driven by premium mass, whilst Cambodia’s gaming recovery will be driven by the VIP segment, according to analysts at Colliers International.

Govinda Singh, executive director & head of hotels & leisure for Colliers International wrote in a report that most of the recovery will be seen around Q3 of 2021, with Macau GGR reaching 50-60 percent of 2019 levels, whilst Cambodia GGR reaching 60 percent of 2019 levels.

Singapore, the Philippines, and Vietnam will lag behind, he added.

Singh said that China’s clampdown on international gaming tourism, opening up of regulated online gaming, Japan’s IR’s coming online, and new properties planned for Singapore, Cambodia, Vietnam, and Vladivostok will create downside risks – depending on whether GGR growth can keep up.

“What is needed and is possible is for the per capita income growth across Asia to continue its pre-COVID march; however, do expect paybacks to be longer, with business models focused on the mass market, and indeed marketed to a variety of source markets.”

Turning to the global hotel industry, Singh said he expects a V-shaped recovery this year, which will be dependent on the success of mass vaccinations in Europe and the US. A global return to pre-covid hotel performance levels is expected in 2023.

Singapore, which experienced an 85.7 percent decline in international visitor arrivals in 2020, will start seeing a recovery in its hotel industry following the resumption of MICE activities. A key event to look for will be the World Economic Forum, which is slated to be hosted in Singapore in August 2021.

“If the event takes place successfully, it will boost Singapore’s MICE and hospitality sector
as it will prove that the city can host large global events despite COVID 19.”

Colliers also turned their attention to Australia’s hotel industry, which saw a challenging year in 2020 with a virtual complete border closure for the year. Singh notes that it is broadly anticipated that the domestic leisure segment will be the key driver of recovery. Though, the winding down of government stimulus packages may have an impact on consumer spending.

“Notwithstanding, domestic leisure still presents a shining light when compared to other segments,” he said.

Source: AGBrief

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Aristocrat mulls M&A to expand in digital

Posted on by Admin VietNamGaming

01-10-2020 |  

Aristocrat Entertainment CEO Trevor Croker said the company plans to “significantly escalate” its focus on convergence products and services, which may involve mergers and acquisitions.

In his annual address to shareholders, Croker said the group had undertaken a strategic review of its business over the past year in response to the Covid-19 crisis.

While the overall strategy of the company won’t change, there may be changes in emphasis, he said.

“In the context of COVID, and with the encouragement of our customers, we will continue to significantly escalate our focus on convergence products and services as part of our strategy,” he told the meeting. “We remain ready to invest to accelerate our strategy.”

In the 2020 financial year, the group’s digital arm far outpaced its land-based business as the pandemic shuttered casinos and caused significant disruption to travel. Overall group revenue in the year fell 5.9 percent to $4.1 billion, with 29 percent growth in digital going a long way to offset a 35 percent drop in land-based.

Aristocrat at present does not have real-money online gaming. Its digital businesses include London-based Product Madness. The unit offers social casino games, which echo Aristocrat’s real-money content, such as Heart of Vegas, which incorporates Dragon Link from the company’s Lightning Link slot games. It also owns Plarium which owns highly popular role play games, such as RAID: Shadow Legends.

Given the strength in its digital business, analysts have questioned why it has not yet ventured into real-money gaming.

J.P. Morgan analyst Don Carducci wrote after the company released its annual results in November that a move in this direction remains a matter of “when, not if.”

“ALL is most likely to buy (not build) into this segment,” he wrote. “We assume multiple acquisitions of small-to-medium size.”

In his Friday address, Croker confirmed that expansion would likely be through acquisitions, but other than mentioning convergence products, did not give any indication this would include real money games.

“We have the balance sheet strength to support bold moves as well as incremental ones, and to take advantage of opportunities and disruption,” he said. “We also have a track record of leveraging M&A to accelerate our growth, first into attractive Gaming product segments and more recently to scale in Digital.”

Analysts are watching for the company’s next move.

Source: AGBrief

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Incheon gaming zone development faces delays

Posted on by Admin VietNamGaming

01-10-2020 |  

The planned gaming and entertainment zone in Incheon, South Korea, is facing delays on almost all fronts, mainly, but not entirely, due to the coronavirus pandemic.

The original prospect was that the area around Incheon International Airport would become one of the premier playgrounds in East Asia, with more than 100 million passengers annually expected to pass through its gates by 2024.

Paradise City opened its doors in April 2017 as the first element of the gaming zone, and four other projects have been in the works.

The coronavirus, which has put an end to most international travel for the time being, has not been kind to Incheon’s ambitions.

For its part, Paradise City has struggled to bring in customers even when its doors have been open. When available, punters have tended to stay within central Seoul rather than head out to Incheon.

Among the four projects under development, it is the Midan City complex that is most in doubt. Caesars Entertainment has pulled out of the project, leaving it without an experienced gaming operator.

This appears to have had no connection to the pandemic at all, but rather a reflection of the view of current leadership of Caesars opposing all IR entanglements outside the US market, which is a sharp reversal from the outlook of the previous, pre-merger executives who had been eager to bring the firm into the Asian market.

The Mohegan Inspire project appears to be in much better shape, but it too has suffered delays. The company has acknowledged that it has had some difficulties with the financing meant to be supplied from the Korean side. At present, Inspire appears to be on course to open either at the end of 2022 or in 2023.

Two other projects, World Hansang Dream Island and the Solaire Marina IR Project, about which less information has been released, are also said to have fallen behind schedule.

Source: AGBrief

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Crown Perth told to cease junket play

Posted on by Admin VietNamGaming

01-10-2020 |  

The Gaming and Wagering Commission of Western Australia (GWC) today issued a directive to Crown Perth to cease all junket and premium player activity.

According to a filing from Crown Resorts on the Australian Stock Exchange, the ban on high roller activity includes any conduct of junkets, or “table games activity with patrons who are non-residents of Australia with whom Crown Perth has the arrangement to pay the patron a commission, or provide transport, accommodation, food, drink or entertainment, based on the patron’s turnover or otherwise calculated by reference to such pay.”

It comes only a week after the regulator formally called for an independent inquiry into Crown’s suitability to hold a license in Western Australia, after a scathing report in NSW earlier this month detailed years of money laundering through Crown Perth.

Earlier this week, Victoria’s gaming regulator announced the establishment of a royal commission in Victoria, aimed at determining whether Crown Resorts is suitable to hold a license for its flagship property in Melbourne.

Source: AGBrief

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