Studio City Macau: Despite its many non-gaming attractions it’s failing continually 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 could default on the $1.41 billion loan used to complete the construction of this hotel.
That’s the word from rating agency Standard and Poor’s Financial Services, which this week issued an outlook that is negative the resort’s bonds, off the back of a 42.5 percent slide in their value.
Macau’s first ever TV and movie-themed resort opened in October 2015, with Packer’s girlfriend Mariah Carey headlining the opening night, since the likes of Robert De Nero and Leonardo DiCaprio mingled among the list of crowd. It also had its very own opening evening movie, The Audition, a quick film 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 described as probably the most advertisement that is expensive made.
New Concept Fails to Drive Crowds
But for all your glitz, Studio City was conceived in a markedly different economic weather, before Chinese President Xi Jinping’s anti-corruption drive halted the area’s success story and delivered profits tumbling for 26 straight months.
Studio City went big on non-gaming amenities, positioning itself as a non-VIP gaming destination so that you can woo China’s burgeoning middle income.
This 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 thanks to 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 % stake in the home, while US hedge funds Silver Point Capital and Oaktree Capital own a 40 percent stake. Bloomberg reported this week that Melco Crown has sought to distance itself from almost any rescue package for the casino.
‘Studio City Casino Macau is at a entirely separate credit group 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 it would part of for Studio City Casino Macau,’ said a Melco Representative.
There is speculation that that Melco is wanting to put the end up 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 an even more mood that is forgiving. (Image: rapeller.com)
Philippine President Rodrigo Duterte’s hardline crackdown on online gambling took a twist that is unexpected this week.
On Tuesday the us government’s gambling operator-regulator, PAGCOR, announced that it was prepared to license online gambling firms that targeted ‘non-locals’ and that it was in the entire process of ‘readying application forms.’
‘We don’t know yet how saleable it is; there could be no takers,’ PAGCOR main Andrea Domingo admitted to Reuters.’Or there could possibly be many applicants,’ she added brightly.
PAGCOR hopes that the new licenses might offset some of the income lost by Duterte’s systematic dismantling regarding the country’s online gambling giant, Philweb. Until recently, Philweb operated 299 online gambling boutique cafés through the entire Philippines, which offered online video poker and slots via roughly 8,000 terminals.
Last the company’s operations contributed around $12.2 million in taxes to the government year.
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.
When sworn in, he instantly 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 avoid’ because too many Filipinos were deciding to gamble instead of working for the living. It appeared that PAGCOR was taken entirely by surprise by the announcement.
the month Philweb was forced to announce it might wind down its operations, as a result of the non-renewal of its license by PAGCOR. Ongpin stepped down as president for the company and, as a last-ditch bid for approval, offered to transfer nearly all of his majority stake within the company to PAGCOR, in an effort to truly save the company and its own 6,000 employees. PAGCOR had been forced to refuse.
But on Wednesday, Duterte was clearly in an even more mood that is tolerant.
‘Pay the correct taxes… Gamble unless you die. I don’t really care,’ he announced magnanimously.
Duterte happens to be willing to restore gambling that is online ‘taxes are correctly collected in addition they [online gambling cafes] are situated or put in districts where gambling is allowed, which means to express, not inside the church distance or schools.’
‘ I became mad because perhaps the youth are gambling and there was no chance of collecting the proper fees,’ he admitted.
Whether this means he is ready to permit Philweb to keep 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 his state on the map for financial gains and development during their administration. Now a casino that is new contract in the Hoosier State is also showing up its cousin chapter in Atlantic City, having successfully negotiated for benefits, where its brethren failed.
The Indiana Unite Here casino union has successfully bargained for a contract that is new the two Majestic Star riverboats in Gary, a stark contrast through 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 during the two Majestic Star riverboats in Gary, has now reached a new agreement with the gambling operator. On August 19, the 2 edges officially signed down on a contract that increases wages over the next 2 yrs, while keeping the current wellness insurance programs being afforded to union members.
The offer runs through 2018.
Unite Here Local 1 spokesperson Noah Carson-Nelson told the Chicago Tribune, ‘Our people are content. The people were excited that it includes raises and the same medical health 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.
Neighborhood 1’s parent union, Unite Here, is the exact same organization that unsuccessfully continued strike at the Trump Taj Mahal in Atlantic City earlier in the summer time. Because of this, billionaire owner Carl Icahn announced that the casino is going to be forever closing on 10 october.
The Trump Element
Formerly known as the Trump Casino, Majestic Star II ended up being renamed after Trump Entertainment Resorts sold the property to Majestic in 2005 for $253 million.
The purchase was element of Trump Hotels & Casino Resorts (THCR) filing for Chapter 11 bankruptcy protection in 2004. The business emerged from liquidation under the new Trump Entertainment Resorts name in 2005.
Trump’s record in Atlantic City is obviously questionable. But in Indiana, Trump’s riverboat was decidedly lucrative. On the 11 years since Majestic acquired the casino that is floating it’s never won as much money since it did when Trump was the financial admiral associated with ship.
In 2004, total victories eclipsed $140 million. In 2015, the Majestic Star II taken in simply half of that figure.
The stars that are majestic two of 10 riverboat gambling enterprises in Indiana. The Hoosier State normally home to the French Lick Resort Casino, the only land-based gambling venue there, plus two racinos that offer slots and electronic table video gaming.
Marked Market Variations Between Two States
Back east in Atlantic City, Unite Here Local 54 was additionally fighting for higher wages and health insurance at the Trump Taj Mahal. But the bankruptcy procedure 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, said he needed more time before restoring benefits. Workers strolled off the working job in disgust, and Icahn called their bluff in a move that ultimately caused both sides to lose.
The marketplace is quite different in northwest Indiana than in Atlantic City. When the Taj Mahal closes its doorways in October, it can be the casino that is fifth shutter down since 2014 in nj-new jersey.
The Blue Chip Casino and Hotel in Michigan City, Indiana also recently negotiated effectively with Unite Here Local 1. Ameristar Casino Hotel did as well, albeit following a lengthy and process that is tedious.
‘we are happy to move ahead, and happy we achieved it within an equitable manner,’ Majestic Star General Manager Barry Cregan stated of the new agreement.
So why would small Indiana video gaming union find more success using its company compared to the much bigger Atlantic City market? Because the Taj was already losing millions every month, plus the union’s demands would only drive those losses further into the muck. In Indiana, while not thriving like they could have been more than a decade ago, casinos are apparently nevertheless making an adequate amount of a revenue in order to make union benefits a worthwhile investment.
Paddy Power Betfair Reports £47.5 Million Loss Considering Costs of Merger
Breon Corcoran, Paddy energy Betfair CEO, said that the company would not rule out further consolidation if the best opportunity arose. (Image: Business Post sunday)
Paddy Power Betfair has reported operating losings of £47.5 million ($62.6 million) for the half that is first of when compared to profits of £106.5 million ($140.5) for the corresponding period of 2015.
CEO Breon Corcoran this week attributed the losses to one-off expenses related towards the merger between the two wagering powerhouses, amounting to £195 million ($257 million) in total. Paddy Power and Betfair agreed terms of their £5 billion ($6.5 billion) merger in September a year ago but the deal 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 anticipated to be handsomely offset by cost saving synergies of this newly combined company further later on.
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 actually come from job losses, with 650 of the combined business’s 7,200-strong workforce having found themselves surplus to demands following the merger.
Revenue Up 18 Percent
‘People have actually been really diligent, there is been an awful lot of hard work done, and promptly,’ said Corcoran regarding the integration work. ‘Paddy Power Betfair has suffered momentum that is good an amount of considerable modification.’
Corcoran also pointed to an 18 percent 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 shops recorded a 12 per cent increase in revenues to £147 million ($193 million). The company’s US and Australian operations also reported growth.
More Consolidation Possible
‘The restructuring is currently mainly complete therefore the merger synergies are being delivered in front of schedule,’ said Corcoran. ‘Our company is creating a world class operation by exploiting the unique assets and abilities of each legacy company, particularly in the key functions of technology, marketing and trading.
‘While our industry stays highly competitive and it is exposed to the prevailing economic and regulatory environments, our strong market jobs, increased scale and enhanced capabilities position us well for sustainable, lucrative growth.’
Corcoran also refused to rule the possibility out of more consolidation. If the asset that is right up during the right price his company could be well positioned to get it, he said, however the moment he had been focusing regarding the integration process.