Studio City Macau: Despite its many attractions that are non-gaming’s failing woefully to attract the mass market crowds.
Studio City Macau, Lawrence Ho and James Packer’s $4.5 billion integrated casino resort on the Cotai Strip is in trouble and may default on the $1.41 billion loan utilized to complete the construction for the hotel.
That’s the word from rating agency Standard and Poor’s Financial Services, which this week issued a negative perspective for the resort’s bonds, off the back of a 42.5 percent slide in their value.
Macau’s first ever television and movie-themed resort opened in October 2015, with Packer’s girlfriend Mariah Carey headlining the night that is opening as the likes of Robert De Nero and Leonardo DiCaprio mingled among the list of crowd. It even had its very own opening night movie, The Audition, a short movie directed by Martin Scorsese and starring De Nero, DiCaprio and Brad Pitt.
Packer called it the ‘coolest 15 minutes ever made,’ but, with an $80 million cost, it might equally be referred to as probably the most expensive advertisement ever made.
Brand New Concept Fails to Drive Crowds
But for all your glitz, Studio City was conceived in a markedly different climate that is economic before Chinese President Xi Jinping’s anti-corruption drive halted the area’s success tale and sent revenues tumbling for 26 straight months.
Studio City went big on non-gaming amenities, positioning itself as a non-VIP gaming location to be able to woo China’s burgeoning middle income.
It has sets from television and movie production facilities to a Batman themed flight-simulator that is 4-D coaster ride and a figure-eight Ferris wheel, but because of a slowing Chinese economy, visitor numbers to Macau are falling and the hordes of middle classes have failed to materialize.
Melco Distances Itself
Melco Crown owns a 60 percent stake in the home, while US hedge funds Silver Point Capital and Oaktree Capital own a 40 percent stake. Bloomberg reported this that Melco Crown has sought to distance itself from any kind of rescue package for the casino week.
‘Studio City Casino Macau is within a credit that is entirely separate and its debt is non-recourse to Melco Crown Entertainment Limited. […] Investors must not assume that Melco Crown Entertainment Limited provides any economic support to Studio City Casino Macau or that it would step in for Studio City Casino Macau,’ said a Melco Representative.
There is speculation that that Melco is seeking to put the find yourself the hedge funds them out for a good price, and that the negative rating from Standard and Poor’s will strengthen its position because it wants to buy.
Duterte Takes Shock U-turn on Online Gambling
‘Gamble until you die. I do not care,’ said Philippine President Duterte Wednesday, clearly in a far more forgiving mood. (Image: rapeller.com)
Philippine President Rodrigo Duterte’s hardline crackdown on online gambling took a twist that is unexpected this week.
On Tuesday the federal government’s gambling operator-regulator, PAGCOR, announced that pelican pete slots free play it was in the process of ‘readying applications. so it was prepared to license online gambling firms that targeted ‘non-locals’ and’
‘We don’t know yet how saleable it is; there might be no takers,’ PAGCOR Andrea that is chief Domingo to Reuters.’Or there could be many applicants,’ she included brightly.
PAGCOR hopes that the brand new licenses might offset a few of the income lost by Duterte’s systematic dismantling of this country’s online gambling giant, Philweb. Until recently, Philweb operated 299 online gambling boutique cafés throughout the Philippines, which offered online video poker and slots via roughly 8,000 terminals.
Last year the company’s operations contributed around $12.2 million in fees to the government.
Duterte swept to power in on an agenda that promised to wipe out crime and drugs june. Literally. The president has leant their support to vigilante death squads that carry out the extra-judicial killings of criminals and drug that is habitual with impunity.
As soon as sworn in, he immediately set his sights on the Philippine online gambling industry, plus in particular Philweb and its chairman, the billionaire Robert Ongpin.
Ongpin ended up being agent of the ‘oligarchs,’ which he believed were ’embedded in government’ and practiced ‘influence peddling.’ Meanwhile, said Duterte, online gambling ‘had to stop’ because too many Filipinos were deciding to gamble rather of working for a living. It appeared that PAGCOR was taken completely by surprise by the announcement.
the month Philweb was forced to announce it would wind down its operations, due to the non-renewal of its license by PAGCOR. Ongpin stepped straight down as president regarding the business and, as a bid that is last-ditch approval, wanted to transfer very nearly all of his majority stake in the company to PAGCOR, in an attempt to save the business and its own 6,000 workers. PAGCOR ended up being forced to refuse.
But on Wednesday, Duterte was clearly in a more tolerant mood.
‘Pay the correct taxes… Gamble and soon you die. I do not really care,’ he announced magnanimously.
Duterte happens to be willing to restore online gambling provided ‘taxes are correctly collected and so they [online gambling cafes] are situated or put in districts where gambling is allowed, which means to state, not within the church distance or schools.’
‘ I happened to be angry because even the youth are gambling and there was no chance of collecting the proper fees,’ he admitted.
Whether this means he is willing to allow Philweb to continue its operations as before is currently unclear.
Indiana Casino Union Does What Trump Taj Mahal Workers Couldn’t: Reaches New Deal with Majestic Star Riverboats
Indiana Governor Mike Pence, the current GOP vice-presidential contender, has put their state on the map for monetary gains and development during his administration. Now a new casino union contract in the Hoosier State is also showing up its sis chapter in Atlantic City, having successfully negotiated for benefits, where its brethren failed.
The Indiana Unite Here casino union has effectively bargained for a new contract with the two Majestic Star riverboats in Gary, a stark comparison from the union’s efforts in Atlantic City, which failed. (Image: Unite Here/youtube.com)
Indiana’s Unite Here casino union, representing chefs, wait staff, and housekeepers at the two Majestic Star riverboats in Gary, has reached an agreement that is new the gambling operator. On August 19, the 2 edges officially finalized off on a agreement that increases wages over the next couple of years, while keeping the current wellness insurance programs being afforded to union members.
The offer operates through 2018.
Unite Here Local 1 spokesperson Noah Carson-Nelson told the Chicago Tribune, ‘Our people are happy. The people were excited that it includes raises and the same medical insurance. so it was settled fairly quickly and’
The Majestic Star casinos sit next to at least one another in Lake Michigan, about 30 kilometers southeast of downtown Chicago.
Local 1’s moms and dad union, Unite Here, is the organization that is same unsuccessfully continued hit at the Trump Taj Mahal in Atlantic City previously in the summer time. Because of this, billionaire owner Carl Icahn announced that the casino is forever closing on 10 october.
The Trump Factor
Formerly known as the Trump Casino, Majestic Star II was renamed after Trump Entertainment Resorts sold the property to Majestic in 2005 for $253 million.
The sale was element of Trump Hotels & Casino Resorts (THCR) filing for Chapter 11 bankruptcy protection in 2004. The business emerged from liquidation under the Trump that is new Entertainment name in 2005.
Trump’s record in Atlantic City is unquestionably questionable. But in Indiana, Trump’s riverboat was decidedly lucrative. Throughout the 11 years since Majestic acquired the casino that is floating it’s never won as much cash as it did whenever Trump was the financial admiral for the ship.
In 2004, total wins eclipsed $140 million. In 2015, the Majestic Star II pulled in simply half of that figure.
The Majestic Stars are two of 10 riverboat casinos in Indiana. The Hoosier State can also be home to your French Lick Resort Casino, the sole land-based gambling location there, plus two racinos that provide slots and electronic table video gaming.
Marked Market Differences Between Two States
Back east in Atlantic City, Unite Here Local 54 ended up being additionally fighting for higher wages and health insurance coverage at the Trump Taj Mahal. But the bankruptcy process already underway when Carl Icahn purchased the casino allowed the billionaire to temporarily suspend pension and healthcare benefits as he worked to upright the casino’s serious situation that is financial.
But Icahn, who was simply reportedly losing $100 million regarding the endeavor, stated he needed more time before restoring benefits. Workers stepped off the working job in disgust, and Icahn called their bluff in a move that ultimately caused both edges to lose.
The marketplace is quite different in northwest Indiana than in Atlantic City. When the Taj Mahal closes its doors in October, it will end up the fifth casino to shutter down since 2014 in New Jersey.
The Blue Chip Casino and Hotel in Michigan City, Indiana also recently negotiated successfully with Unite Here Local 1. Ameristar Casino Hotel did as well, albeit after having a lengthy and process that is tedious.
‘we are pleased to move ahead, and happy that people did it within an equitable manner,’ Majestic Star General Manager Barry Cregan stated of the brand new agreement.
So why would small Indiana video gaming union find more success featuring its manager than in the much larger Atlantic City market? Each month, and the union’s demands would only drive those losses further into the muck because the Taj was already losing millions. In Indiana, while perhaps not thriving like they might have been more than a ten years ago, casinos are apparently still making an adequate amount of a revenue to create union benefits a worthwhile investment.
Paddy Power Betfair Reports £47.5 Million Loss Due to Costs of Merger
Breon Corcoran, Paddy Power Betfair CEO, said that the company would not further rule out consolidation if the best opportunity arose. (Image: Sunday Business Post)
Paddy Power Betfair has reported running losses of £47.5 million ($62.6 million) for the half that is first of when comparing to profits of £106.5 million ($140.5) for the corresponding period of 2015.
CEO Breon Corcoran this week attributed the losses to costs that are one-off to the merger between your two gambling powerhouses, amounting to £195 million ($257 million) in total. Paddy energy and Betfair agreed terms of their £5 billion ($6.5 billion) merger in September year that is last the offer was only finalized on February 2, 2016.
Thus, short-term losses incurred during through integration, including some £29 million ($38.2) in advisory fees alone, are expected to be handsomely offset by cost saving synergies regarding the newly combined company further down the road.
In fact, Paddy energy Betfair has upped its estimate of future expense saving from £50 million ($65 million) per year by 2018 to £65 million ($85.7 million) per from next year year.
A lot of those savings have come from job losses, with 650 of the combined organization’s 7,200-strong workforce having found themselves surplus to needs after the merger.
Revenue Up 18 %
‘People have actually been really diligent, there is been a lot that is awful of work done, and promptly,’ said Corcoran regarding the integration work. ‘Paddy Power Betfair has suffered momentum that is good a period of considerable change.’
Corcoran additionally pointed to an 18 % rise in revenue for the time scale, to £759 million ($1 billion), along with double-digit growth across all four of its core divisions. Discounting merger expenses, would have reported underlying earnings of £181 million ($238 million), Corcoran said.
On line revenue was up 20 percent at £440 million ($580 million), while Paddy Power’s land-based bookmaking stores recorded a 12 per cent increase in revenues to £147 million ($193 million). The organization’s US and operations that are australian reported development.
More Consolidation Potential
‘The restructuring happens to be largely complete and also the merger synergies are being delivered in front of schedule,’ said Corcoran. ‘Our company is producing a world class procedure by exploiting the assets that are unique capabilities of each legacy business, particularly in the key functions of technology, advertising and trading.
‘While our industry continues to be highly competitive and it is exposed to the prevailing economic and regulatory environments, our strong market roles, increased scale and enhanced capabilities position us well for sustainable, profitable growth.’
Corcoran also refused to rule the possibility out of more consolidation. If the right asset came up at the right price his company would be well placed to obtain it, he said, nevertheless the moment he was focusing on the integration process.