Studio City Macau: Despite its many non-gaming destinations it’s failing 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 utilized to complete the construction regarding the hotel.
That’s the word from score 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 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 crowd. It even had its own night that is opening, The Audition, a short 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 may equally be called probably the most advertisement that is expensive made.
New Concept Doesn’t Drive Crowds
But for all the glitz, Studio City was conceived in a markedly different economic environment, before Chinese President Xi Jinping’s anti-corruption drive halted the location’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 location so that you can woo China’s burgeoning class that is middle.
It offers everything from television and film 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 actually 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 that Melco Crown has sought to distance itself from any kind of rescue package for the casino week.
‘Studio City Casino Macau is a totally separate credit group and its own debt is non-recourse to Melco Crown Entertainment Limited. […] Investors should not assume that Melco Crown Entertainment Limited will give you any financial 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 crank 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 really 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 it was ready to license online gambling firms that targeted ‘non-locals’ and that it was at the process of ‘readying application forms.’
‘We don’t know yet how saleable it is; there might be no takers,’ PAGCOR primary Andrea Domingo admitted to Reuters.’Or there could be many applicants,’ she included brightly.
PAGCOR hopes that the new licenses might offset some of the income lost by Duterte’s systematic dismantling associated with the country’s online gambling giant, Philweb. Until recently, Philweb operated 299 online gambling boutique cafés throughout the Philippines, which offered video that is online 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 June on plans that promised to eliminate criminal activity and drugs. Literally. The president has leant his 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 immediately set his sights on the Philippine online gambling industry, plus in particular Philweb and its chairman, the billionaire Robert Ongpin.
Ongpin was agent of the ‘oligarchs,’ which he believed were ’embedded in government’ and practiced ‘influence peddling.’ Meanwhile, stated Duterte, online gambling ‘had to avoid’ because too many Filipinos were choosing to gamble alternatively 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 its operations down, as a result of the non-renewal of its license by PAGCOR. Ongpin stepped straight down as president associated with the company and, as a bid that is last-ditch approval, agreed to transfer very nearly all of his majority stake within the company to PAGCOR, in an attempt to save the company as well as its 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 until you die. I don’t really care,’ he announced magnanimously.
Duterte happens to be ready to restore online gambling provided ‘taxes are correctly collected plus they [online gambling cafes] are situated or positioned in districts where gambling is allowed, which means to state, not inside the church distance or schools.’
‘ I became angry because even the youth are gambling and there was no way of collecting the proper taxes,’ he admitted.
Whether this means he could be willing to permit Philweb to carry on its operations as before is currently unclear.
Indiana Casino Union Does What Trump Taj Mahal Workers Couldn’t: Reaches New Deal with Majestic Celebrity Riverboats
Indiana Governor Mike Pence, the current GOP vice-presidential contender, has put his state on the map for monetary gains and growth during their administration. Now a new casino union contract in the Hoosier State is additionally showing up its sis chapter in Atlantic City, having effectively negotiated for benefits, where its brethren failed.
The Indiana Unite Here casino union has successfully bargained for a new contract with the 2 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 at 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 off on a contract that increases wages over the next couple of years, while keeping the current health insurance coverage programs being afforded to union members.
The deal runs through 2018.
Unite Here Local 1 spokesperson Noah Carson-Nelson told the Chicago Tribune, ‘Our members are content. The individuals were excited that it ended up being settled fairly quickly and it includes raises and exactly the same health insurance.’
The Majestic Star casinos sit next to at least one another in Lake Michigan, about 30 miles southeast of downtown Chicago.
Regional 1’s moms and dad union, Unite Here, is the exact same organization that unsuccessfully went on hit during the Trump Taj Mahal in Atlantic City early in the day into the summer time. Because of this, billionaire owner Carl Icahn announced that the casino are going to be permanently closing on October 10.
The Trump Element
Formerly known as the Trump Casino, Majestic Star II had been renamed after Trump Entertainment Resorts sold the home to Majestic in 2005 for $253 million.
The sale was section of Trump Hotels & Casino Resorts (THCR) filing for Chapter 11 bankruptcy security 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 profitable. On the 11 years since Majestic acquired the casino that is floating it is never won as much cash because it did whenever Trump was the financial admiral of the ship.
In 2004, total wins eclipsed $140 million. In 2015, the Majestic Star II pulled in just half of that figure.
The stars that are majestic two of 10 riverboat casinos in Indiana. The Hoosier State can be home to the French Lick Resort Casino, the actual only real land-based gambling venue there, plus two racinos that provide slots and table gaming that is electronic.
Marked Market Variations Between Two States
Back east in Atlantic City, Unite Here Local 54 was also 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 had been reportedly losing $100 million in the venture, said he needed more time before restoring benefits. Workers stepped off the task 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 doorways in October, it becomes the fifth casino to shutter straight 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 resort did as well, albeit after a lengthy and tedious process.
‘we are happy to move ahead, and happy in an equitable manner,’ Majestic Star General Manager Barry Cregan said of the new contract that we did it.
So why would small Indiana gaming union find more success along with its employer compared to the much bigger Atlantic City market? Because the Taj was already losing millions every month, and also the union’s needs would only drive those losses further into the muck. A worthwhile investment in Indiana, while not thriving like they may have been over a decade ago, casinos are apparently still making enough of a profit to make union benefits.
Paddy Power Betfair Reports £47.5 Million Loss Because Of Costs of Merger
Breon Corcoran, Paddy Power Betfair CEO, said that the company would not rule out further consolidation if the right opportunity arose. (Image: Business Post sunday)
Paddy Power Betfair has reported running losings 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 towards the merger involving the two gambling 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 year that is last the deal was only finalized on February 2, 2016.
Thus, short-term losings 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 the newly combined company further later on.
In reality, Paddy Power Betfair has upped its estimate of future price saving from £50 million ($65 million) per annum by 2018 to £65 million ($85.7 million) per year from next year.
Much of those savings have come from job losses, with 650 of the combined business’s 7,200-strong workforce having found themselves surplus to needs after the merger.
Revenue Up 18 Per Cent
‘People have actually been really diligent, there is been a lot that is awful of work done, and promptly,’ said Corcoran associated with the integration work. ‘Paddy Power Betfair has suffered momentum that is good an amount of considerable modification.’
Corcoran additionally pointed to an 18 percent rise in revenue for the time, to £759 million ($1 billion), also 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 rise in revenues to £147 million ($193 million). The company’s US and operations that are australian reported development.
More Consolidation Possible
‘The restructuring happens to be mostly complete as well as the merger synergies are being delivered ahead of routine,’ said Corcoran. ‘We are creating a globe class operation by exploiting the unique assets and abilities of each legacy company, particularly in the key functions of technology, advertising and trading.
‘While our industry stays highly competitive and it is exposed to the prevailing economic and regulatory environments, our strong market positions, 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 obtain it, he said, however the moment he had been focusing regarding the integration process.