Studio City Macau: Despite its many attractions that are non-gaming’s failing to attract the mass market crowds.
Studio City Macau, Lawrence Ho and James Packer’s $4.5 billion casino that is integrated on the Cotai Strip is in trouble and may default on the $1.41 billion loan used to complete the construction of the 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 television and movie-themed resort opened in October 2015, with Packer’s girlfriend Mariah Carey headlining the night that is opening since the likes of Robert De Nero and Leonardo DiCaprio mingled among the crowd. It also had its very own night that is opening, 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 price tag, it may equally be described as the most expensive advertisement ever made.
Brand New Concept Does Not Drive Crowds
But for all the 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 delivered profits tumbling for 26 straight months.
Studio City went big on non-gaming amenities, positioning itself as a non-VIP gaming destination in order to woo China’s burgeoning class that is middle.
This has 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 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 at a credit that is entirely separate 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 monetary support to Studio City Casino Macau or so it would step up for Studio City Casino Macau,’ said a Melco Representative.
There is speculation that that Melco is trying to put the find yourself the hedge funds because it would like to buy them out for a good price, and that the negative score from Standard and Poor’s will strengthen its position.
Duterte Takes Shock U-turn on Online Gambling
‘Gamble until you die. I do certainly not care,’ said Philippine President Duterte Wednesday, clearly in a 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 federal government’s gambling operator-regulator, PAGCOR, announced that it was in the entire process of ‘readying applications. that it was prepared to license online gambling firms that targeted ‘non-locals’ and’
‘We don’t know yet how saleable it is; there can be no takers,’ PAGCOR Andrea that is chief Domingo to Reuters.’Or there could possibly be numerous applicants,’ she added brightly.
PAGCOR hopes that the licenses that are new offset a number of the revenue lost by Duterte’s systematic dismantling associated with 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 approximately 8,000 terminals.
Last year the company’s operations contributed around $12.2 million in taxes to the federal government.
Duterte swept to power in June on an agenda that promised to get rid of 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.
As soon as 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 was agent of the ‘oligarchs,’ which he believed were ’embedded in government’ and practiced ‘influence peddling.’ Meanwhile, said Duterte, online gambling ‘had to prevent’ because too many Filipinos were choosing to gamble alternatively of working for a living. It appeared that PAGCOR was taken totally by surprise by the announcement.
the month Philweb was forced to announce it would wind down its operations, because of the non-renewal of its license by PAGCOR. Ongpin stepped down as president of this business and, as a last-ditch bid for approval, offered to transfer almost all of his majority stake in the company to PAGCOR, in an attempt to save the business and its particular 6,000 workers. PAGCOR ended up being 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 do not really care,’ he announced magnanimously.
Duterte happens to be ready to restore gambling that is online ‘taxes are correctly collected and so they [online gambling cafes] are situated or put in districts where gambling is allowed, which means to say, not within the church distance or schools.’
‘ I was mad because even the youth are gambling and there is not a way of collecting the taxes that are proper’ he admitted.
Whether what this means is he’s willing to allow Philweb to keep its operations as before is currently unclear.
Indiana Casino Union Does What Trump Taj Mahal Workers Couldn’t: Reaches New Contract with Majestic Celebrity Riverboats
Indiana Governor Mike Pence, the current GOP contender that is vice-presidential has put their state on the map for monetary gains and development during their management. Now a casino that is new 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 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 cooks, wait staff, and housekeepers during the two Majestic Star riverboats in Gary, has reached an agreement that is new the gambling operator. On August 19, the 2 sides officially finalized off on a agreement that increases wages over the next couple of years, while keeping the health that is current programs being afforded to union members.
The deal runs 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. it was settled fairly quickly and’
The Majestic Star casinos sit next to 1 another in Lake Michigan, about 30 miles southeast of downtown Chicago.
Neighborhood 1’s parent union, Unite Here, is the same company that unsuccessfully went on hit during the Trump Taj Mahal in Atlantic City early in the day into the summer. Because of this, billionaire owner Carl Icahn announced that the casino are permanently shutting on 10 october.
The Trump Factor
Formerly known as the Trump Casino, Majestic Star II ended up being renamed after Trump Entertainment Resorts sold the home to Majestic in 2005 for $253 million.
The purchase was element of Trump Hotels & Casino Resorts (THCR) filing for Chapter 11 bankruptcy security in 2004. The business emerged from liquidation under the new Trump Entertainment Resorts name in 2005.
Trump’s record in Atlantic City is 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 of this ship.
In 2004, total victories eclipsed $140 million. In 2015, the Majestic Star II taken in simply half of that figure.
The Majestic Stars are 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 provide slots and table gaming that is electronic.
Marked Market Variations Between Two States
Back east in Atlantic City, Unite Here Local 54 ended up being also 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 had been reportedly losing $100 million regarding the venture, said he needed more time before restoring benefits. Workers walked off the work in disgust, and Icahn called their bluff in a move that ultimately caused both edges to lose.
The market 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 nj-new jersey.
The Blue Chip Casino and Hotel in Michigan play pelican pete pokie machine City, Indiana also recently negotiated effectively with Unite Here Local 1. Ameristar Casino Hotel did as well, albeit after having a lengthy and tedious process.
‘We’re pleased 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 the smaller Indiana gaming union find more success having its company compared to the much larger Atlantic City market? Because the Taj had been losing millions each month, therefore the union’s demands 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 Due to Costs of Merger
Breon Corcoran, Paddy energy 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 operating losses of £47.5 million ($62.6 million) for the very first half of 2016 in comparison 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 costs related towards the merger between the 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 this past year but the offer was only finalized on February 2, 2016.
Thus, short-term losings incurred during through integration, which included some £29 million ($38.2) in advisory fees alone, are anticipated to be handsomely offset by cost saving synergies associated with the newly combined company further down the line.
In reality, Paddy energy Betfair has upped its estimate of future cost saving from £50 million ($65 million) per year by 2018 to £65 million ($85.7 million) per from next year year.
Much of those savings have actually come from job losings, with 650 of the combined business’s 7,200-strong workforce having found themselves surplus to demands 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 of this integration work. ‘Paddy Power Betfair has sustained good momentum through 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 the web revenue was up 20 percent at £440 million ($580 million), while Paddy Power’s land-based bookmaking shops recorded a 12 percent increase in revenues to £147 million ($193 million). The company’s US and Australian operations also reported development.
More Consolidation Potential
‘The restructuring happens to be mainly complete and also the merger synergies are being delivered in front of schedule,’ said Corcoran. ‘Our company is creating a globe class procedure by exploiting the unique assets and 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 surroundings, our strong market jobs, increased scale and enhanced capabilities position us well for sustainable, lucrative growth.’
Corcoran additionally refused to rule the possibility out of more consolidation. If the asset that is right up at the right price his company would be well positioned to get it, he said, nevertheless the moment he was focusing regarding the integration process.